Landlords Insurance « PropertyQuoteDirect – Landlords & Buy to Let Insurance Blog

Archive for the ‘Landlords Insurance’ Category

Housing cuts will hurt a lot of people says national paper

Tuesday, November 9th, 2010

As the welfare reform proposals approach implementation, a national newspaper has joined in the argument. Listening to the supporters of the Coalition Government, and in particular Lord Freud, hardly anyone will be affected by the cutbacks in housing benefit. Only those who live in mansions at taxpayers’ expense should be worried and the Governments assertion that £21,000 is more than enough Housing Benefit for anyone does seem fair.

However an investigation by the Sunday Mirror purports to shows that they are way off with this prediction. The results of their investigation conclude that hundreds of thousands of the most disadvantaged people in Great Britain will have their lives wrecked.

Some will have their incomes slashed while some others will only lose a few pounds per week, that may not sound too bad the report says, but they are a few pounds that they can not live without. Families who are already on the breadline will face losing their homes because of savage changes being driven through by the coalition partners, according to the paper.

The Sunday papers exclusive which it claims is calculated on detailed research gives details of a mother who has a disabled daughter and who will be left with just £40 a week for food and other essentials after her housing benefit is cut by over 50%. Another example shows a family of four who will lose almost £100 per week, leaving them below the poverty line.

The findings are much different to those of the Prime Minister David Cameron who claims that it will not be necessary for anyone to lose their home. Campaigners strongly disagree saying it will effect over 900,000 households many of whom will have to leave the area they have lived in all their life.

Landlords with landlord insurance are tired of being portrayed as the bad boys in this argument and have already said they have no intention of reducing rents to help a tenant whose shelter is being compromised by Government cuts. What is for sure is that the welfare system shake up will see residential landlords with a big part to play in providing homes for millions of people in the UK.

Posted in Landlords Insurance | No Comments »

House price rise in October surprises the market

Thursday, November 4th, 2010

As landlords continue to look for signals in the letting sector to guide them in their business decisions over the next few years, once more the picture in the industry becomes confused.

Just as the pundits are predicting a double dip for the property market, one of the UK’s leading lenders reports a growth in selling prices for the month of October. The Halifax bank reports that prices in October show a marked increase of 1.8% on the September figures. Somewhat of a surprise as most experts in the industry were expecting a lower sale figure which would reaffirm their thoughts that the market was back in a slump.

Year on year figures were not so good. Although there was an increase of 1.2% compared to last October, this was the smallest monthly year on year increase for some time. In fact December 2009 was the last time a year on year month provided a lower increase.

With mortgage providers across the nation reporting lower levels of take up month on month, the figures have really bamboozled the experts. Although the September drop in house prices was massive (around 3.7%) and most people in the business did not expect the same drop again, the figures are definitely better than most envisaged and are at least encouraging.

For landlords looking to extend their portfolio while house prices were low and rental yields showing every sign of going up for the foreseeable future, the figures will definitely throw a spanner in the works. Should they be on the lookout for cheap landlord insurance to protect any new properties they buy now, or should they ignore the September increase and gamble on the price of property falling even further as the austerity measures bite.

The availability of buy-to-let mortgages, although still not great has improved somewhat over the last few months, aided by new lenders coming into the market. There is no doubt also that tenants are in multiple supply at this moment in time, so what should a landlord do? If the market is to believed, then landlords in and around the capital can look to extend their portfolios with little worry, if they have the funds in place. Landlords elsewhere may be wiser to adopt a wait and see policy.

Posted in Landlords Insurance | No Comments »

New Green Deal threatens landlord’s purse strings

Tuesday, November 2nd, 2010

It seems that the ongoing initiative by government agencies to make our home environment ever ‘greener’ could impact on the pockets of some residential landlords.

As Chris Huhne, the minister for energy and climate change, lays down the concept of his ‘New Green Deal’ some landlords will be fearful of what lies in store for them.

The New Green Deal aims to increase the nation’s perception of energy consumption and to increase the insulation in all the UK’s 26 million homes. With the aid of big business the government is planning to induce homeowners across the country to take out ‘pay as you save loans’ to facilitate the conversion of properties into super insulated dwellings.

It is envisaged the loans could be up to as much as £10,000 and will allow householders to purchase energy saving products such as loft insulation, wall insulation, double glazing and different types of renewable energy. The government hopes that companies such as giant supermarket chains as well as national DIY stores will fund the project as the homeowner pays back the loan from money saved on fuel efficiency.

The one blot on the landscape for the scheme is properties owned by residential landlords. The architects of the plan envisage a poor take up by landlords because as they don’t actually pay the energy bills for the property then they will not be concerned about the fuel savings.

On the other hand a landlord with half a dozen properties will be faced with logistical problems sorting out loans for the properties and having the work carried out. It is a problem.

It is widely thought that the new scheme will include legislation to force landlords to install energy saving insulation at the behest of tenants or the local authority if they deem the property badly insulated.

Not surprisingly landlords who already have to comply with lots of compulsory legislation will be worried about anything more that is compulsory. Most landlords will be hoping the scheme will be more advisory where there is an option to purchase such as the case with landlord insurance. All landlords accept insurance cover is vital but know it is not a legal requirement.

Whatever the case, landlords will know their fate soon as the initiative should be in place inside the next five years.

Tags: landlord advice, Landlord Insurance
Posted in Advice, Best Practice Guides for Landlords, Landlords Insurance | No Comments »

Housing industry at the crossroads

Wednesday, October 27th, 2010

The cut in housing benefit, the housing shortage, the difficulty in getting a mortgage and the declaration by the government to enable social landlords to achieve up to 80% of the market value rents are just a few of the highlights of the average landlords year.

Never can the industries that are linked to the housing sector have been overwhelmed with so many seismic changes that are happening at the moment. Never can so many experts from one industry have such varying views.

The cuts to Local Housing Allowance have seen charities and local authority politicians suggest that London will witness a massive exodus as tens of thousands of tenants in the inner boroughs of London are forced to up sticks as they can no longer afford the rent on their home.

The very same cuts have seen experts from charities as well as Local Authority politicians say the cuts will force rogue landlords to stop charging extortionate rents and bring back a touch of sanity to the London rental market.

Landlords and tenants who have not really been asked their opinions wonder and wait. It is true that many Landlords around the capital have vowed not to lower their rents at all. That is possibly a knee jerk reaction that is quite natural when they feel they are being attacked. Tenants know that if they are on Housing Benefit then their next 12 months may be bumpy, but those in low income employment also know that the dirty jobs still have to be done by someone.

It is rumoured that councils are already block booking bed and breakfast accommodation in boroughs of London for next year when the cuts come into effect. The whole industry is in flux!

Many commentators think that the situation could be overcome in double quick time if only the banks would loosen their purse strings. Although industry experts say the days of 100% mortgages have gone forever, both residential landlords who are looking to extend their portfolios and young professional couples and families who are desperate to either get on the ladder or move up it, are just waiting for the chance to buy properties that don’t demand unreal deposits.

Behind these are builders keen to build and insurers eager to sell landlord insurance or home insurance to the new homeowners. Of course there are even more allied trades waiting for the chance to get back to new builds and renovation projects. It is fair to say the industry waits on the banks.

Tags: housing industry, Landlord Insurance
Posted in Best Practice Guides for Landlords, Insurance Guides, Landlords Insurance | No Comments »

Alarms need to be maintained to work correctly

Thursday, October 21st, 2010

Homeowners do not have to rely simply upon observation skills to identify dangers within the home. Thanks to technology, anyone can instead depend on different types of alarms as a way of alerting them to dangers in and around the home. From fire alarms to a burglar alarm, there are different ways that a family can be safe.

It is highly recommended that all households install a few smoke alarms around the home to make sure that they are adequately alerted to any fire emergency. The bigger the home, the more fire alarms should be installed. There should be a smoke alarm outside each bedroom as well as alarms on all house levels. For maximum safety, have the alarms connected so that if one alarm goes off, they will all go off. Because smoke rises, it is always best to install the smoke alarms on the ceiling or as high on the wall as possible. If the property is privately rented then the landlord will have all smoke alarms checked yearly as part of his commitment to provide safe housing for tenants.

To make sure that the alarm works properly, always follow the manufacturer’s instructions, as these guidelines can vary ever so slightly from one alarm to another. Having a smoke alarm without a battery is pointless and will do nothing to keep occupants safe. To ensure that a smoke alarm remains working perfectly, always check your batteries monthly. It takes no effort to test a smoke alarm. Maybe decide on a date to check the alarms and mark it on the calendar as a reminder of this important monthly task. Regardless of whether smoke alarm batteries are working or not, always change them once a year. To make sure this is not forgotten, always change the batteries at the same time of year, maybe do this on the same day that the clocks go back or forward. Make battery replacement part of a yearly routine.

As for a home security company system, it will not be any good if it is not activated. To make sure that the security alarm protects the property while away from it; always activate it every time you leave the house. If it is something that is often forgotten, write a note and tape it in the car as a reminder to go back and activate it. It is a good idea to reset all the alarm codes and re-key all locks each year. By following these safety procedures, it will ensure that any lost keys will be useless and that anyone who may have the codes for the security system will have no access to the home. Both security and smoke alarms may well mean that landlord insurance can be purchased more cheaply.

Tags: Advice for Landlords, home security, Landlord Insurance
Posted in Advice, Landlords Insurance | No Comments »

Easy ways to achieve a smaller footprint

Thursday, October 14th, 2010

Each person can do many things to slow down the effects of global warming. This collective impact of many people all working together will make a difference. There are simple ways to save energy. For example cutting down on waste and buying energy efficient products can help preserve the planet from further warming.

Recycle as much as possible. At the moment there is too much consumer waste ending up in landfills that could be reused. Most of us are now recycling plastic, glass, paper and cans, but not everyone knows that they can recycle other products. For example, electronic items, carpets and furniture can all be recycled.

More and more property owners in the private sector are renting their fully furnished houses complete with as many items as possible that will help to reduce a carbon footprint. They have landlord insurance for protection but they also care about the planet. Cutting down on a carbon footprint should not be seen as a threat to lifestyle. Basically it is about trying to cut down energy usage and as energy is not going to get any cheaper it will be a case of saving money directly whilst helping to save the world. Of the 12 tonnes that it is estimated to be the average person’s footprint; about 6 tonnes comes from around the house or choices in how travel is made. Improving the footprint does not necessarily mean giving anything up.

Use bags for life; they have become popular over the last few years. The number of plastic bags a person will use during the year will really add up. Buy energy efficient appliances; buying these will make a huge difference to a carbon footprint. Become a lover of local food by only eating food grown within 100 miles of the home. This will not be possible for everyone and it will not work everywhere all year-round. By only eating foods that are grown locally, it helps the local economy and cuts back on the amount of fuel that is needed to bring the food to the supermarket. If it is possible, plant and grow fruit and vegetables as this is one of the most cost-effective ways to eat, and nothing is more local than home grown, just remember to use organic or natural fertilizers and pesticides.

Living in the 21^st century has brought many comforts. Where our forefathers would have walked many miles to reach their destination, we can easily jump into many types of carbon-emitting vehicles and get across the country in no time at all. Where candles were once used as lighting we now use many climate-destroying lighting options. Yes, these ‘modern comforts’ have made life a lot easier for everyone, but there is now a need to change over to eco-friendly solutions.

Tags: DIY, environment, Landlord Insurance
Posted in Advice, Best Practice Guides for Landlords, DIY, Landlords Insurance | No Comments »

Woodworms can cause a hole lot of trouble

Thursday, October 7th, 2010

There are a few words that a property owner with landlord insurance will not want to hear. One of them is woodworm. When a problem has been diagnosed as woodworm, it is normal to think of a lot of worms eating the wood. In fact they are not a worm at all they are insects that bore into wood, causing damage to furniture and flooring.

It is very unlikely to see a wood boring insect in the home, because the adults will lay their eggs on wood and the larvae will then bore into the wood and stay for years before boring out of the wood again. Signs that they are there are small holes in the wood and very occasionally the dust as they emerge from the wood. These holes are in fact exit holes meaning that the beetle has emerged from and left the wood after spending time tunnelling through it as a grub. The most common woodworm is the furniture beetle. This beetle attacks softwood leaving 1-2mm exit holes. It prefers damp, rather than dry wood and the grub will head for plywood and then stay there for longer than any other type of wood. Any damp floorboards, loft timbers and old furniture are all good targets for the beetle. Woodworms work slowly, so it is a good idea to not rush out as soon as it is suspected they are in the home. Get the home properly surveyed by three or four firms who will go through with the best treatments with you and give a quote. They will not only check the infestation, they will be able to tell how much damage has already been done.

When the holes are first noticed the first thing to do is establish if the woodworm holes are a result of a past infestation that has been successfully treated, or if it is a new problem that will need treating. If it is an active infestation there will be will some fresh wood dust and holes. There are a number of DIY treatments that can be used on furniture infested by the furniture beetle. If it is going to be a DIY job, fluid will need injecting into a few holes with a special injector and, as an extra precaution, there is also an insecticidal polish to use. Remember to keep your tenant fully informed on the matter as they are the ones living in the property.

Trying a DIY method to cure the problem will not always work because a lot of the most effective insecticides can only be obtained by certified professionals. Some are very toxic and potentially damaging to the environment. It may be very tempting to go for a blanket treatment, but this is not the greenest choice. A safe and highly effective treatment is borax, this is available as a crystalline powder, which is dissolved as a 15% solution in water and then is applied to the timber that is affected. There are no health hazards with this treatment, and borax will inhibit fungal growth and kill the woodworm.

Tags: Advice for Landlords, Best Practice Guides for Landlords, DIY, Landlord Insurance, Woodworm
Posted in Advice, DIY, Landlords Insurance | No Comments »

A phone extension can make life easier

Tuesday, October 5th, 2010

As long as there is a working master phone socket in the home, which has been installed by a service provider, it is possible to connect extra phone points in different rooms around the house to the master socket. With the help of a kit which is available to buy in DIY stores, phone retailers or any electrical store this is a job most landlords can accomplish on their own. If the master socket is a very old one, it may need replacing with an updated version that will accept the new plugs. As a safety measure the master socket should be less than 50m (which is more than enough for the average home) away from the first extension socket. Also, the furthest extension socket should be no more than 100m away from the master socket. Other safety measures to consider are; never fit an extension in a bathroom and phone wiring should be kept at least 2in/5cms away from any other electrical wiring. Landlords will be aware that landlord insurance is always a good thing to have when jobs like this are undertaken.

To install the first extension socket, cut the phone wire long enough to go from the master socket to the first extension socket, remember to leave about leaving 3in excess as it is better to have too much instead of not enough. Plan the route for the wire to go from the master socket to the extension socket. There will be a converter on one end of the cable and this should be placed by the master socket, ready for it to be connected later.

The next job is to fix the cable wire along the skirting board, securing it with little tacks at regular intervals. Take the extension socket and unscrew the face-plate. Push out the little tab that is covering the entry hole for the cable. Position the extension box against the wall and with a pencil mark where the screw holes will be going, then drill the holes and place plugs into them. The box will be screwed to the wall after it has been wired because doing it this way is much easier.

The wire in the cable must now be exposed, it will need stripping 1 1/4in from the end with a sharp knife, then separate the colour coded conductors. These conductors will be connected to the phone extension box by pushing the conductors into brass blade terminals. The conductors will need to be connected as follows. Terminal 1- Green conductor with white rings. Terminal 2- Blue with white rings. Terminal 3- Orange with white rings. Next going from bottom upwards, the white connector with orange rings will go into terminal 4, white with blue rings will go into Terminal 5 and finally the white with green rings goes into Terminal 6. Sometimes there will only be four conductors, if this is the case then leave terminals 1 and 6 empty.

Now fix the extension box to the wall and fix the face-plate onto it, plug the converter into the master socket. And the extension is ready to use.

Tags: Advice for Landlords, DIY, Landlord Insurance
Posted in Advice, Best Practice Guides for Landlords, DIY, Landlords Insurance | No Comments »

What does the future hold for landlords?

Thursday, September 30th, 2010

A question that must be on the lips of many residential landlords as well as the employees of huge housing associations.

Buy to let mortgages are available but the constant cry from landlords looking to increase their portfolio is that the deposits required are just too high. With home loans dropping to their lowest in years during August 2010, it would seem that private landlords will have a big part to play in getting the UK through the austerity years. There does not, however, seem to be any well thought out plan by those in power to alleviate the housing shortage. After all someone has to buy property.

At the moment landlords are having a good time of it; rental income is slowly creeping up as the laws of supply and demand take hold, but for how long? It would appear that for the near future at least, landlords who can afford to extend their portfolios and buy landlord insurance for the properties, will have tenants queuing up to sign agreements as they can’t get on the housing ladder. There is, however, one very big blot on the landscape.

The government cuts in Local Housing Allowance will come into play next month. Many landlords especially those in the South East who provide housing to benefit claimants will soon have to make a decision. Do they allow the tenant to get into arrears when their allowances are cut, or do they cut the rents to suit the benefit allowance? Already many have said they will evict tenants who fall in arrears, but in all seriousness no landlord wants to do this, it creates bad feelings, bad press and, at the end of day leaves the landlord with a void period.

Housing associations who often get access to public funds will also have tenants who suddenly find that they have a black hole between their rent and their income. The pressure on these landlords will be immense as social housing also attracts workers on low wages, the sort of workers who may well find their jobs disappear when the government cuts take hold. Already employees of one contractor to social housing schemes have found themselves out of work as the firm collapsed. Will the pressures of government cuts cause the housing associations to lower their rents, and will this then put pressure on their finances in other areas?

The UK landlord awaits the future months with interest.

Tags: Advice for Landlords, Landlord Insurance, Property market, rental market
Posted in Advice, Landlords Insurance | No Comments »

Spruce up your kitchen

Wednesday, September 29th, 2010

With autumn on its way, it is a great time for landlords to give any property’s they have enduring void periods a fresh new look. Tenants probably spend more time in the kitchen than you think and if money is tight you can still give the kitchen cabinets a makeover without it costing the earth. Very little skill is required for this job; all you will need is a screwdriver, some sandpaper, paint and some creativity. You do not even have to replace the door furniture, and it could easily secure you a new tenant.

Painting your kitchen cabinets is the least expensive way of giving old cabinets a fresher new look. Empty everything out of the cabinets and store away safely. The cabinets will most likely have a build up of grease, grime and dust particles so they will all need a clean with a warm water and soap solution, depending on how often you clean your cabinets, you may want to do this twice to ensure it is thoroughly clean. Use the screwdriver to remove the doors and the door furniture, when you do be sure to make a note of which one goes where.

Use sandpaper on each cabinet door, medium grit sandpaper is best to use for this job as it will get rid of any varnish on the wood. Then re-sand all of the cabinets with fine grain sandpaper, this will leave a surface that is ready to be painted, also a smooth surface will allow the new paint to stick to the cabinet surface much better. Clean up all the dust created by the sandpaper immediately, if it gets blown onto the paint you will just be making more work for yourself.

Now you are ready to start painting, and with the money saved by taking the job on personally you can afford to buy paint that will give your kitchen that fresh look. Make sure you have used sheets or newspaper to protect objects close by from being splashed with paint, it would be a shame to have to claim on your landlord insurance policy for a needless accident. Each of the kitchen cabinets will need two coats of paint on each side of the door, as will the cabinet frame. Allow this to dry for at least a full day to get the best results.

It is always better to use a top-quality paint brush to apply your paint as less bristles will come off and leave their tell tale marks on your work, and always apply in multiple thin coats. After 24 hours when the paint is dry, sand very lightly with fine grit sandpaper. If you apply two thin coats of paint it should look great, just using one coat could see the paint peel off quickly.

Like any other job if you are patient and take your time to do it correctly, the results will be so much better. While the second coat is drying you can soak the door furniture in a soapy mixture to bring them out sparkling clean. Along with the freshly painted cabinets your kitchen will have a great fresh new look. It is so much cheaper than buying brand new cabinets. All that remains now is to screw the doors and the handles back on and a money saving DIY job is finished.

Tags: Advice for Landlords, DIY, Help, landlords, Landlords Insurance
Posted in Advice, DIY, Landlords Insurance | No Comments »