Property Insurance News

Minister Believes Private Sector Will Benefit from More Regulation

May 1st, 2012

Landlords and tenants alike will welcome the news that the Government is considering drawing up an official charter of requirements that will govern the private rented housing sector for the years to come.

Grant Shapps, the communities minister, has long championed the private housing sector and believes the expected growth of private accommodation will benefit from a more robust regulatory scheme. It will certainly suit professional landlords who are well accustomed to the paperwork and regulations that are inherent with providing a competent service to tenants. However, the so called accidental landlords who are renting their properties out because they can’t sell them or afford to live in them may find it more difficult to comply. As well as demanding appropriate property insurance the new charter may require more exacting standards, and it may certainly compromise the home owner who lets part of his home out to a lodger.

In Parliament earlier this week MP for Torbay, Adrian Saunders, asked Mr Shapps: “One way of reducing the regulatory burden on landlords but also improving the safety and security for tenants, would be to provide a central, standardised document, containing all landlord and tenant responsibilities from fire safety to anti-social behaviour. The planning system has benefited from a process of simplification. Can you do likewise with the private rented housing sector?”

Mr Shapps answered in the affirmative saying he believed such a scheme would benefit both sides of a private rental agreement and that he would look into the possibilities of making such a scheme reality. He said: “It sounds like it might be something comparative to a template lease and is something worth further consideration.”

Tags: government, Landlord Responsibility, Private Rented Sector, tenancy agreement, Tenant Responsibility
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Housing Scheme Should Help More People onto the Property Ladder

April 30th, 2012

Military veterans and their bereaved families are set to benefit from a new scheme that will help first-time buyers onto the property ladder. The Scottish Government is investing £13 million into a shared equity programme that will allow the buyer to spread the cost.

The scheme is part of the Scottish Government’s Low-Cost Initiative for First Time Buyers (LIFT), and will be open to those who rent a property that is protected by landlord insurance from either a housing association or the local council. The scheme will allow the successful applicants to use shared equity to buy a property from a housing association, private developer or on the open market. The buyer will take a majority share in a property while the Scottish Government will pay the rest. If and when the property is sold, the Government will receive the value at the time of sale of the percentage equity stake they originally funded.

Housing Minister, Keith Brown, said: “With mortgages harder to access, we are committed to doing all we can to help people on low to moderate incomes across Scotland get on the property ladder where this is affordable for them. These schemes also help our brave armed forces and veterans secure a roof over their heads. It is important that people who have served this country with distinction should have access to this type of assistance.”

House building throughout Scotland has been through tough times during recent years and this investment offers great value for money for both taxpayers and buyers. It will also help the economy by kick-starting more new housing developments and keeping jobs in the construction industry. As well as delivering at least 30,000 new affordable homes over the course of this current parliament, the scheme will help buyers overcome the need for high deposits which are an unrealistic goal for everyone who will benefit from this investment.

Tags: Housing Scheme, landlord insurance, LIFT, Low-Cost Initiative for First Time Buyers, scotland, Scottish Parliament
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NLA Fear Housing Benefit Tenants May Be Left With Nowhere To Go

April 27th, 2012

Research from the NLA (National Landlords Association) claims that 54% of private landlords can no longer afford to rent a home to tenants who are in receipt of housing benefit. Due to the cuts to allowances, 70% claim they will not have any housing benefit tenants living in their properties that are covered with buy to let property insurance by 2015.

The research also showed that half of the landlords questioned believe Local Housing Allowance (LHA) cuts are making it unaffordable for them to rent to people on benefits, with tenants aged under 35 expected be hit the hardest by the changes. The LHA cuts have seen maximum rent benefit payments reduced to the 30th percentile of local average market rents rather than the previous 50th percentile. The age a tenant on benefits qualifies for more than a single room in a shared house has also been increased by ten years to 35 and this is forcing many into shared accommodation.

One member of the NLA said: “The reforms have completely ignored the question of supply, which is being damaged by other housing policies like Article 4 Directions. Where exactly is the shared housing meant to come from, to house these benefit claimants aged under 35? They are being forced into competition with relatively well-paid young graduates and students, and there is no sign of landlords increasing the number of HMOs to meet the increased demand unless they get help from the government.”

The National Landlords Association has also reported that, despite the fact that any private landlord who drops their rent, voluntarily qualifying for direct payments of LHA, only 25% of their members have been approached by the local council about this.

Tags: Buy to let property insurance, housing benefit, LHA, NLA, tenants
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Insurance hitch holds up tenant cashback scheme

April 26th, 2012

A housing association piloting a Government led tenant cashback scheme has had to rethink its strategy after problems surrounding landlord insurance became an issue.

Hastoe Housing Association owns and manages upwards of 4,000 properties in the South of England and was chosen to be just one of four associations chosen to pilot a government scheme whereby tenants were allowed to do some of the more mundane low risk repair and maintenance jobs in their own homes, and were rewarded by getting cash back from the housing association. It was envisaged that jobs undertaken by tenants such as gardening and outside painting jobs in communal areas would save the associations money, some of which they could pass onto the tenants who completed the work.

However, Sue Chalkley, chief executive of Hastoe, found things were not quite so straightforward, she explained: “Our property insurance company made it clear we could not allow tenants to do any work which would ask them to climb more than three steps or that involved any power tools. We still have to come to an agreed position with our insurance company as they have concerns that if we’re going to give anybody money to do their own repairs, we’d have to have an employer-employee relationship with them. I just think in principle, we are positive about the scheme but we are hitting some very real practical difficulties around insurance.”

Hastoe have now abandoned the idea of paying tenants cash for doing repairs but are looking for ways to carry the initiative forward. For the time being they are sending tenants who wish to do simple jobs a set of tools to complete the task and it seems that many tenants are quite happy to do this as it means they don’t have to wait long periods waiting for contractors to turn up. Ms Chalkley was keen to praise tenants who volunteered to do work saying: “I think it’s about respecting tenants as people who are capable of looking after their homes.”

Tags: Hastoe Housing Association, Housing Association, insurance, landlord insurance, property insurance
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Chelmsford to Benefit from Three New Housing Developments

April 25th, 2012

Three new housing developments will be built in Chelmsford by the CHP Housing Association. Based in Chelmsford, the housing association will build forty-five homes across Wheatfield Way, Kings Road and Wykeham Road.

The housing association recently became one of the first landlords in the region to sign a Short Form Agreement with the HCA (Homes and Communities Agency). The agreement allows CHP to set rents at up to 80% of the local market rates by utilising the coalition’s new affordable rent programme. Work on the new housing will cost around £5 million and will start in late July, with a completion date expected to be between July 2013 and March 2014. All of the new housing will be added to the housing associations landlord insurance portfolio that covers 8,500 properties across Essex and the houses will go to those who need a new home the most.

Carl Hockey, CHP development and regeneration manager, has been quoted saying: “We’re delighted that not only have we become one of the first housing associations in the East of England to sign a Short Form Agreement with the HCA, but we’ll also be able to provide people throughout Essex with a high number of affordable homes offering a variety of tenures to suit residents’ needs. Hopefully these new houses will be the start of many more built in the next ten years.”

The three developments will see three-bedroom, two-bedroom and one-bedroom houses along with one-bedroom and two-bedroom flats that are wheelchair accessible. There will also be two two-bedroom bungalows that are all wheelchair accessible built at each of the three sites. CHP are a locally managed and governed non-profit housing association providing high quality affordable family homes and flats to rent. As one of 2,000 housing associations in the United Kingdom, they work closely with residents, local authorities and public sector bodies to constantly improve the services they provide.

Tags: Chelmsford, CHP Housing Association, Housing Associations, Housing development, landlord insurance
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Landlord Organisation Forecasts Housing Crisis for Benefit Claimants

April 24th, 2012

A report from a major landlord association shows that tenants on benefits are struggling to find decent accommodation as Government cuts in Housing Allowance take effect.

The report issued by the National Landlords Association (NLA) shows that thousands of landlords are becoming ever more reluctant to let their properties to benefit claimants and are turning to tenants who are not on benefits to ensure they keep their business healthy. The survey of members showed that over 50% of the respondents said they no longer consider tenants on benefits because the cut in Local Housing Allowance meant that few could afford to pay the rent required by landlords and they were not prepared to be pressured by local authorities to bring their rents down. The outlook for benefit claiming under 35s is even worse. With the Government now only paying benefits based on the cost of renting a room in a house very few private landlords will now even think of letting a home to an unemployed young person. Although landlords can purchase cover for non payment of rent via their property insurance many now see benefit claimants as just too risky.

Chairman of the NLA, David Salusbury, said “It’s concerning that so many landlords appear to be planning to withdraw from the LHA market within just three years, as they can no longer afford to let their properties to tenants at the reduced benefit rate. In view of the pressures on housing, the private-rented sector will inevitably play an increasingly important role in providing housing to LHA tenants, particularly those aged under 35, who aren’t able to access other housing. It is vital that local authorities work with landlords to provide the support services needed to help this demographic, as many are forced to move into shared accommodation.”

Tags: housing benefit, Local Housing Allowance, National Landlord Association, Rent Prices, tenants
Posted in NLA, Property Insurance, Rental Market, tenants | No Comments »

Landlord and contractor team up to deliver a better service

April 23rd, 2012

A joint venture between the Acis Group housing association and the maintenance company Willmott Dixon has been created to deliver a better service to 5,500 properties in South Yorkshire, Nottinghamshire and Lincolnshire.

The new Limited Liability Partnership (LLP) called Galatia will be responsible for planned works, gas inspections, repairs and voids maintenance. Willmott Dixon will be investing significantly in systems and technology to make sure that an efficient, high quality service is delivered for every one of Acis’ residents. The new company has a five year contract that can be extendable for another five years and is worth £25 million. By investing in staff training and systems, both Willmott Dixon Partnerships and Acis aim to enhance the satisfaction level among residents. The new contract will start next month with the focus on Acis properties that are protected with property insurance in the Sheffield and Gainsborough areas.

Acis Chief Executive, Valerie Waby, said: “We are excited about joining Willmott Dixon Partnerships as a partner in a joint venture model that will see us combine both skill sets to deliver quality and reliability for our residents. It will bring the focus and drive necessary to support our team in delivering a major programme of home improvement we’ll undertake alongside our on-going property care services. We will be investing time and resource into management processes and training to equip our team of engineers with the best possible means of delivering our high standards of service.”

Alongside this will be a community programme that includes an award winning ‘Opening Doors’ initiative that will provide much needed opportunities for local people to take part in work experience and training in areas such as plastering, plumbing, electrical, carpentry and engineering as well as office experience including administration, computer training and surveying properties.

Tags: Acis Group, Housing Associations, landlords, property insurance, Willmott Dixon
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Landlords Could Lose Under 25 Market if New Housing Policy is Introduced

April 20th, 2012

Property investors with an interest in landlord insurance believe new Government proposals aimed at the jobless, could have a serious impact on the livelihood of many buy-to-let investors.

Provisions in the new Welfare Bill mean unemployed people under the age of 25 will have their housing benefit cut. Whereas before young unemployed people renting in the private sector received Local Housing Allowance (LHA) in accordance with their rent, they now only receive LHA to the equivalent cost of someone renting a room in a shared house. It has already caused problems for many tenants in the private sector and landlords have in some cases had no option but to evict people who cannot pay their rent.

However, things could actually get worse. A Government think tank is now considering a policy which would see single under 25s denied housing benefit completely, making them stay in the family home until they could fund their own housing.

Graham Kinnear, Managing Director at Landlord Assist, a company that provide a variety of services to the buy-to-let sector, believes that it would not only be tenants that would suffer if the new scheme is introduced. He said: “If the Government was to progress with this proposal it would force thousands of tenants into rent arrears, hit landlords financially if they don’t receive rent payments, and have a damaging impact on the buy-to-let industry as a whole. Furthermore, it will also deepen the housing shortage for the young as landlords and letting agents will be even less likely to accept anyone out of work who is under 25 as they will be unable to pay any rent at all.”

It is thought that any changes would take several years to be implemented but would certainly fit in with the present government’s policy of “making work pay”.

Tags: financial risk, government, housing benefit, Private Rented Sector, tenants
Posted in Property Market, landlord insurance, tenants | No Comments »

Deposit Protection Schemes Fostering Understanding between Landlord and Tenant

April 19th, 2012

A Government initiative to protect tenants from losing tenancy deposits unfairly has changed relations between landlords and tenants dramatically, according to a leading sector expert, and it is all for the better.

Steve Harriot, head of the Tenancy Deposit Scheme (TDS), one of just two insured tenancy deposit protection schemes in England, believes Government legislation to introduce mandatory tenancy deposit protection has brought greater trust between landlords and their tenants. According to figures only 1% of tenancy deposit agreements now end in dispute since the introduction of the scheme 5 years ago and today when Mr Harriot addresses delegates at the Property Business Show he will say: “For many years the industry was beset with deposit disputes. However, no longer is it automatically believed that private sector landlords will regard the deposits they hold as part of the rent, nor that tenants will withhold the last rent payments for fear of not getting their deposits back. And, both landlords and agents have become much better at managing disputes at the end of a tenancy.”

Certainly landlords in the past have often claimed on property insurance policies when disgruntled tenants have caused damage in the last few days of their tenure due to disputes over rent and deposits. A better understanding between tenant and landlord will put an end to the “Us and Them” culture which has dogged the sector for many years and the latest figures show that over 2 million tenants now have their deposits secured in authorised schemes. It is expected that more companies apart from TDS and My Deposits will be allowed to bid when contracts are up for renewal and that the Alternative Dispute Resolution scheme will be extended to take in more cases.

Tags: government, landlords, Letting agents, Rental Market, Tenant Deposit Protection
Posted in Law, Property Insurance, tenants | No Comments »

Biggest Housing Development for Decades Planned for North Yorkshire

April 18th, 2012

Plans have been revealed for 290 much needed new homes in Kirkbymoorside. The developer plans to build 240 houses which would include a number of affordable homes and another 50 apartments for elderly people with care needs.

The proposed scheme from Gladman Developments of Cheshire will be studied by local councillors, planners and residents who will discuss the effect it would have on the town. The developer will be posting out questionnaire leaflets throughout the town publicising the exhibition about the scheme taking place at Kirkbymoorside Primary School. The developers will also be giving a private presentation to the entire council.

A spokesman for the developers said: “The questionnaire is an opportunity for the public to tell us what is important to them and, if built, what they would want to see in the development. We want to get feedback from residents about the demand for first homes, affordable homes and community facilities. Kirkbymoorside has been assessed by Ryedale District Council as one of the towns where further residential development should be suitably accommodated. We are consulting with a number of organisations and groups including community organisations, Ryedale District Council, schools, doctors, the Highways Authority and affordable housing providers.”

The council currently has a need for 256 new affordable homes per year and Gladman confirmed the development would provide up to 80 such homes which the council could use to reduce the council house waiting list. In addition it is anticipated that private landlords will be asking for property insurance quotes on a number of the buildings which will also mean those looking for accommodation will get the chance to take up a tenancy in the private sector. The development will contain ample open space and recreational facilities and the proposed site will be easily accessible to existing amenities and the public transport network. Mayor Chris Dowey is delighted with the proposals which mean local people will be able to stay in the town rather than having to move away to find a home. Even though it is still early days, it is obvious that the scheme is going to have a huge impact on the town.

Tags: Affordable homes, landlords, North Yorkshire, Property development, social housing
Posted in Care Homes, Council Houses, Property Insurance | No Comments »