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Landlords Urged to Buy Correct Level of Insurance Cover

Thursday, May 3rd, 2012

Accidental landlords and first time entrants into the property rental market are being warned about the dangers of not having the correct type of property insurance.

The warning comes after the continued financial downturn sees many people reluctantly become landlords when they can no longer afford to live in their own home and can’t manage to sell it. David Lawrenson works for a leading online letting agent and says many people coming into the rental sector look to keep their overheads to a minimum and don’t think long enough about the insurance they require. He said: “A general property insurance policy simply does not cut the mustard. It doesn’t cover all of the risks that would apply when you’re letting out a property. It is important to make sure that landlords have the correct level of cover. In most cases buy-to-let insurance is not much more expensive anyway.”

Of course the fact of the matter is that in many cases having the wrong type of insurance or not buying enough cover of the correct type of insurance is a complete waste of money. The homeowner will find that the insurance policy will be invalid and will be unable to claim at all. Proposed changes to the rules and regulations governing the private housing sector have been discussed in the last few days by Communities Minister Grant Shapps which would impose even more regulation on landlords. However, landlord organisations see this as a good thing as it may make the sector take a more professional outlook. Regulations concerning fire and other health and safety issues may be tightened and in return the obligations on tenants to respect a landlord’s property ensconced in law. In the meantime landlords across the UK must ensure they not only have the correct type of insurance to protect themselves and their business but also their tenant.

Tags: accidental landlords, Insurance Cover, letting
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Property Investors Advised Not to Take Solar Panel Installation Lightly

Thursday, March 29th, 2012

Landlords looking to benefit from the installation of solar panels on their properties are being advised to ensure they get approval from their mortgage providers and property insurance providers before they go ahead.

Even though the feed-in-tariff for renewable energy has been halved by the Government in the last few months, many landlords still see the leasing out of their roof spaces to companies generating power from photovoltaic panels as a profitable sideline. However, The Council of Mortgage Lenders (CML) which represents many buy-to-let mortgage providers is urging private property owners to ensure they comply with insurance and financial guidelines now, to avoid problems later on when it comes to selling or refinancing their properties.

The CML recommend that landlords ensure the company place no onerous conditions on the property which could affect its value or saleability and that installation is according to planning consent and is completed to an accredited standard. They also say landlords should check the maintenance contracts arranged by the installers and that property owners should get written consent from their insurance providers before they go ahead.

A spokesman for the CML said: “Individual lenders may have their own specific, additional requirements. We advise borrowers to include their lenders in discussions with the panel providers from an early stage. That should enable any security or valuation issues to be addressed before signing a lease agreement. Any changes to a borrowers circumstances over that period, or the need for maintenance and repairs, should not create a burden for the borrower or the lender. The guidance is not intended to deter landlords from installing panels, but seeks to ensure that the lenders security is not affected by the arrangement.”

Tags: Council of Mortgage Lenders, landlords, private property, renewable energy, Solar panels
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Landlords should ensure their investment is sound

Thursday, December 29th, 2011

In the rush to make cash out of the booming rental market some landlords are risking their businesses by making rash decisions, according to a leading group of surveyors.

The Royal Institute of Chartered Surveyors is warning landlords that when it comes to buying new properties they should surround themselves with protection. Not only should they make sure they have adequate landlords insurance on the property but they should take steps to ensure the home is a sound investment before they conclude the deal.

The warning comes after RICS have noticed more and more landlords are buying properties that need work doing to them in a bid to add more stock to their portfolios. They say that prospective investors should remember that estate agents act for the seller and will not always be forthcoming in pointing out faults with property. Instead they suggest landlords should either purchase some sort of condition report on the house. A Home Buyer Survey and Valuation comes in at around £400 or a more comprehensive Building Survey which starts at around £700.

David Dalby, a director at RICS, said “Landlords could be without a tenant for several months while repairs are being carried out and it could be even longer if subsidence is discovered, we are warning private landlords to know what they are buying and are advising agents to recommend surveys to all their clients. The cost of a survey is a small price to pay for peace of mind and will prevent landlords from being hit with unforeseen costs. Surveys can even be used to negotiate the sale price if any significant faults are discovered. Landlords who show surveys to insurers are also likely to benefit from lower property insurance premiums.”

RICS surveyors are closely regulated and are required to have professional indemnity insurance which helps to protect landlords if the surveyor fails to detect a fault which later becomes apparent.

Tags: landlord insurance, property insurance, RICS
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Number of empty homes in Boston is increasing each quarter

Wednesday, December 28th, 2011

Latest statistics show that the borough of Boston has 411 long-term empty properties, with 295 of them being empty for at least twelve months. The high number is yet another reason for the deepening housing crisis in Boston, which has seen many people unable to either afford a home or move up the boroughs housing waiting list.

Most mortgage lenders are still looking for a deposit of at least 20%, meaning the average first time buyer in Boston will face seven years of scrimping and saving before they have enough for a deposit on even the cheapest properties in the area. Experts say that more new homes are needed to help the problem, but as there are so many empty homes in the borough, others feel that these should all be brought back into use before new land is built upon. Almost 250 of the empty properties are owned by private landlords and the others are owned by a registered social landlord, including housing associations Boston Mayflower and Longhurst.

Nathan Black, spokesman for Mayflower, which owns 31 homes which are currently not in use, explained there is often good reason why homes are empty saying: “We have thirteen prefabricated bungalows in Boston, which are vacant due to on-going refurbishment work being carried out on them, one property in Sutterton, which is empty due to it being for sale subject to contract and 17 sheltered accommodation properties, which are vacant due to on-going refurbishment work being carried out on them.”

Boston Council says they are working hard with other bodies to bring the homes back into use, with the help of a coalition grant. Returning empty homes into use by offering the owners help in bringing them up to standard is a policy being adapted by many councils across the UK. Private landlords are being traced and offered monetary reward to get the properties up to scratch, covered with landlord insurance and habitable for those needing shelter. However, many councils are qualifying the offer by placing time limits on the improvements and some landlords are still proving difficult to persuade.

Tags: Boston, empty homes, landlord insurance, property insurance
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Poor to be hit hardest by size criteria scheme

Friday, December 16th, 2011

Poor families living in social housing that is protected by landlord insurance look set to be penalised for staying in a property that the Government deems too large for their needs. The Coalition had previously claimed that the families would lose an average of £620 but now that is set to rise to £1400 a year.

The new “size criteria” scheme has come under attack by the NHF (National Housing Federation) who are worried for the huge number of families who are going to struggle with the cuts. Based on cuts of up to 25% of a family’s housing benefit that the Coalition plan to introduce in 2013, a household who are classed to be under occupying a three-bedroom home in the UK will face losing up to £22 a week. The household would then be forced to choose between finding the money from elsewhere in their benefit budget or moving out of their home. The problem will be even worse in London where a family under occupying a three-bedroom property would have their housing benefit docked by £1385 a year, which will be the biggest penalty of any region throughout Britain. Separated parents will also be penalised for keeping a bedroom for when their children visit.

David Orr, chief executive of the Federation, said “We have been deeply concerned about this bedroom tax for some time but these new figures show the damage will be far worse than previously thought. Thousands of hard-up families face penalties of up to £1400 a year simply because the Government have deemed their homes are suddenly too big for their needs. This will have disastrous implications for huge numbers of people already struggling to make ends meet in the tough economic climate, including foster carers, grandparents, disabled people and smaller families.”

The NHF is calling on the Coalition to make the rules more flexible and allow one additional bedroom above that permitted by the criteria, saying the present rules could damage the fabric of home life for many disadvantaged families.

Tags: landlord insurance, national housing federation, NHF, property insurance, Size criteria scheme
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Property damage expected as Thundersnow is forecast for Scotland

Wednesday, December 14th, 2011

Property investors in Scotland have been turning to their landlord insurance policies in their droves this week as freak weather conditions have brought back memories of last year’s awful winter. Claims for wind damage and flooding are normal in Scotland at this time of year but insurers say the last few days has seen a significant increase in emergency calls as the weather takes a turn for the worse.

Landlords in Argyll and Bute, Ayrshire and Central Scotland have seen their properties damaged by localised flooding, while snow and high winds have caused problems for landlords in the Highland and Western Isles. Unfortunately the weather conditions are not forecast to improve over the next few days, and in fact the stormy conditions will put many holiday homes and second homes on flood alert in all of the coastal regions.

Forecasters from the Met Office are predicting the whole of Scotland may suffer from a rare weather phenomenon this week called “Thundersnow”. The freak conditions required for thundersnow do not manifest themselves very often but high winds, thunder and lightning, and heavy snow, all at the same time is exactly what meteorologists are expecting to hit Scotland later this week.

Although injuries to the public have only been on a small scale so far the Thundersnow could cause real problems and Transport Minister Keith Brown said pedestrians and motorists should only go out if their journey is unavoidable and urged community minded people to keep an eye on vulnerable neighbours. He went on to say: “I would urge the public to stay vigilant and tuned to local radio reports and the Traffic Scotland website.”

Tags: Bad weather, landlord insurance, property damage, property insurance, Thundersnow
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New service offers savings for landlords

Tuesday, December 13th, 2011

At a time when property investors are experiencing higher rental achievements than ever before, a new service set to be launched in January offers to save them even more cash when it comes to advertising their properties.

Movestart.co.uk is an online letting service which promises to be of interest to any property investor with a need for property insurance. The website is offering to advertise rental property for just £49 which includes a tenant referencing service in the price. The backers of the website believe the one-off price will see thousands of residential landlords advertise their properties with Movestart who say the properties will then go on to sites such as Zoopla and Rightmove.

Landlords will also be offered competitively priced services for all types of certification and Movestart are sure their service will be a hit. Peter Lamb, speaking on behalf of the owners, said “We took a look at the market and tried to develop a truly trail-blazing service. By combining tenant finding with tenant referencing, we can be certain that we are proposing the most suitable tenants for our clients’ properties at a fraction of the costs that are normally incurred.”

The pricing of the service will certainly compare favourably with those charged by local newspapers who expect a fee every seven days and it is roughly half the price that online agents already charge just for advertising a property. The question the website may have to address is just how big a market they have, because the current demand in the letting sector means many landlords do not need to advertise at all.

One person who is sure is Graham Kinnear from Landlord Assist. His company will be providing the tenant referencing and he said: “We are delighted to have been appointed by Movestart as the sole referencing provider for their online venture. Property marketing websites are predominantly aimed at homebuyers, so we are thrilled to see such a comprehensive portal launched for landlords looking to target new tenants.”

Tags: landlord insurance, landlords, Money saving, property insurance
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Work starts on renovation project

Monday, December 12th, 2011

A regeneration scheme that is costing over £200million has at last got under way. Bulldozers started demolishing empty properties as residents gathered to watch the start of work that will see six-hundred homes demolished to make way for new housing.

Residents expressed their joy at seeing the first steps of the huge project begin and all of them firmly believe the new development will make their area a much more pleasant place to live. New homes will be built in place of the demolished houses, with the first expected to be finished early in 2013. The Craylands Estate is located in the South East of Basildon and was built in the 60s as a medium density estate with a mix of four storey flats, terraced blocks, shops and community facilities. Now over four decades old, the estate has over time developed a reputation for poor quality housing and inadequate social amenities.

Maggie Forder has lived on the estate for 28 years and she said: “I’m absolutely overjoyed and can’t believe it’s finally happened. This is the first big change we’ve seen on this estate and it’s going to change it for the better. Nobody wants to have empty homes where they live. There has been a lot of trouble on the estate over the years, so it’s nice to see a new beginning. There is community spirit in parts already, but I hope this improves the community spirit over the whole estate and gives people a better place to live.”

Developer Swan Housing are working with Basildon Council and the Homes and Communities Agency on the project. All three are delighted to see the demolition begin and they see it as evidence that real progress has been made. Now the project managers will turn their attention to renovation, house building and of course landlord insurance as residents are rest assured the process is now more than just a pipe dream.

Tags: landlord insurance, Renovation
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Colchester to benefit from massive investment

Wednesday, December 7th, 2011

Developers Mersea Homes and Countryside Properties have unveiled their detailed plans for a huge housing development in Colchester. Together they intend to build 1,800 homes, a new shopping precinct, a new community centre and much needed new secondary and primary schools.

The development will cover one-hundred hectares of land and the developers have insisted that much of the countryside will survive, with a further thirty-four hectares remaining untouched. Colchester Council had planned to use the land themselves in 2008 to build 2,200 homes but the decision prompted a storm of protest from local residents, who formed the campaign group Love Myland.

Stuart Cook, Mersea Homes’ managing director, said “We believe 1,800 properties, which will be mainly family homes, is the way forward. We feel times have changed and we’re the type of developer which doesn’t want to deliver high density, unattractive schemes. We want a more traditional, lower density scheme with green space and proper infrastructure. We think we can deliver a scheme that’s low density, with lots of green space and the right infrastructure that we’re going to be proud of and people want to buy.”

Protest group Love Myland have collected a petition of 1,500 signatures from locals who are horrified at the huge scale of the development. They fear a loss of wildlife and an increase in traffic in what is already a very congested area of Colchester. The developers will apply for outline planning permission early next year and hope to get the go-ahead for 2013. It is anticipated the site will house two bedroomed, three bedroomed and four bedroomed homes, many covered by landlord insurance.

The intention of both the developers and the council is to have the first homes occupied by 2014.

Tags: Colchester, landlord insurance, property insurance
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Landlords encouraged to close down empty properties carefully as the winter weather rolls in

Tuesday, December 6th, 2011

As the winter weather at last begins to show its face, landlords across the UK are being warned to ensure empty properties are protected from the harsh weather.

Although 2011 has been a bumper year for landlords, many property investors will find themselves with empty properties in the winter period. Holiday lets in particular will be empty at this time of year and the seaside tends to attract some of the most inclement weather. Already Scotland and the North of England have experienced snowfall this week and snow and ice usually bring with them burst pipes and flooding.

Many insurance companies have sent reminders to their clients in the last few weeks giving them advice on how to “mothball” their homes. Jolene Shaw, a technical referral advisor from a well known insurance company, said “Taking action to protect vacant properties from damage caused by burst pipes and ice is essential for avoiding expensive repair bills in the New Year. We also recommend checking your landlord insurance policy to make sure you are covered for all eventualities.”

Landlords should consider turning off the main water valve in any void period but especially in winter, this will automatically reduce the chance of flooding from within the property. Water in the pipes should be drained off and the electricity supply to any water heaters and pumps should also be neutralised. In some cases landlords will struggle to get to their properties if they are in holiday resorts and well away from their own domicile. In this case insurance providers recommend the landlord employs a professional tradesman to shut down the property in the correct manner.

Tags: Empty properties, landlord insurance, Winter Weather
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