Flats and terraced houses were some of the few properties which have still been selling marginally above asking price. This could be worrying for some landlords as these types of property are usually the most sought after in the rental market. Detached properties on the other hand are selling on average, 20% below their asking price which is beneficial for landlords as the landscape of the rental market changes. More families and mature people are looking to rent homes similar to what they desire to purchase as buying remains extremely difficult.

This situation gives landlords a golden opportunity to increase their portfolio with Scottish properties; however the laws and regulations may slightly differ in this country so it is important to research them thoroughly before committing to a purchase. Equally as important is the research into finding a good property insurance quote.

Houses in the City

Glasgow, Aberdeen, Dundee and the capital city of Edinburgh are the most well known Scottish cities. There are a number of industries for residents to work in and the transport links are excellent so people are unlikely to feel too cut off from the rest of the UK. Scotland is also home to extremely popular universities, with native students having the benefit of not paying tuition fees unlike those undertaking higher education in England and Northern Ireland. Despite this fact, non-Scottish student’s tuition fees are still lower than in the rest of the UK. So in theory, there should be a solid demand for rental properties from students as there is a great appeal to study in the country.

Rural Property Locations

For tenants in need of a quieter way of life, there is an abundance of countryside villages and towns which landlords could also target as a holiday let location. They include the Highlands, Ayrshire, Inverness and Loch Ness amongst many others. The region of Fife is one area to particularly take note of. This location provides people with great outdoor activities and scenic views. It is also home to Scotland’s oldest University which is on par with Oxford and Cambridge University. The University of St. Andrews attracts great numbers of ambitious students, most famously the Duke and Duchess of Cambridge, William and Kate. About half of the student population live in university accommodation, but there is still a great opportunity to provide alternative student housing.

This provides landlords with a golden opportunity to promote short-term lets as an attractive alternative to hotels. For any landlords interested in renting out their property for multiple short term tenancies, it is important that they protect themselves with good landlord insurance as a variety of people will use their property as a temporary home over a number of months.

UK Holiday Property Hotspots

As you are all aware the UK’s biggest attraction this summer is the 2012 Olympic Games. For many months now there has been news about property prices in London increasing, landlords demanding higher rental yields and some even unexpectedly evicting their current tenants in order to capitalise on the influx of visitors. Now while it may be appealing to jump on this bandwagon, remember that London remains one of the most expensive areas to purchase a property and a lot of the Olympic demand has already been met. Besides, the UK has other appealing holiday locations.

Seaside Escapes

The coastal regions of the country are extremely attractive retreats for families and couples who want the benefits of the beach without boarding a plane. Most of these places are located in the southern part of the country, which is typically more expensive. They include Brighton, Weston-Super-Mare, Cornwall and Plymouth. Further up North places like the Isle of Man, Blackpool and Southport are equally appealing.

Countryside Escapes

Wales is one the UK’s most popular countryside retreats and the property prices here are fairly reasonable. There are also plenty of other picturesque villages, intimate cottages and large family manors for people to rent throughout the country, depending on their needs. Some of the most popular countryside destinations are Kent, Devon, the Lake District, Oxfordshire, Cambridgeshire and rural parts of Scotland.

Festivals and Events

Speaking of Scotland, the annual Edinburgh festival which runs throughout August attracts a wide variety of performers and audiences; making Scotland a great weekend break alternative to London this summer. Countless other world renowned and local festivals/events are taking place across the UK, which can be researched online, and have the potential to provide landlords with a solid demand for temporary rental properties.

1. Chatsworth Estate

Home to the Gallagher and Maguire families, the seemingly derelict appearance of this council estate is enough to deter house hunters even if the neighbours haven’t made an appearance yet. Chatsworth seems to have seen it all when it comes to criminal and questionable activity. Property insurance would be a must have! Theft, gun crime, drugs, alcohol abuse, unplanned teenage pregnancies, brothels and conflicted men of the cloth have all passed through this estate. Now no neighbourhood would be complete without a pub, although you’d probably steer clear of The Jockey. Even looking at it makes you feel the need to bring out the antibacterial hand wipes!

[Image Credit - Channel4.com]

2. Springfield

Possibly the most famous neighbourhood in the world, Springfield is known and loved by millions. But you certainly wouldn’t want to live there! Would you? The Springfield we are focusing on, in particular for this week’s Friday Five, is the Springfield depicted in The Simpsons Movie. Yes, that’s right, the one that gets enclosed in a glass dome while the innocent (ish) citizens are left to contemplate what looks to be inevitable death, until Homer heroically and comically saves the day.

The dome incident is, of course, entirely Homer’s fault as he was responsible for the catastrophic pollution caused that led to the isolation of the town after he threw a Silo of pig faeces (coupled with his own) into Lake Springfield. Big mistake! Would you ever contemplate living in the same town as Homer Simpson?

3. Albert Square

At first glance the Square looks like a pleasant location to make roots but the neighbours here cause countless problems and drama. Criminal gangs operate in the area, mysterious fires have occurred more than once and the resident death rate is alarmingly high. Don’t expect your marriage to be plain sailing either if you move here. However, probably the most unappealing feature of Albert Square is never enjoying a quiet drink in the Queen Vic pub which has played host to countless crimes and altercations.

4. Coronation Street

Considering the countless years of competition between Coronation Street and Eastenders, both areas have experienced similar tragedies, crimes and freak accidents. Again it appears quite the cosy neighbourhood with classic British terrace houses and local amenities, but the neighbours here have also brought their fair share of drama. In short this street has endured a catastrophic tram crash, serial killer Richard Hillman, locals being subjected to varied violent attacks and infidelity amongst neighbours, to name a few. In addition, the Rovers Return pub doesn’t provide much solace from local drama.

5. Wisteria Lane

Yes, it is very surprising that this picturesque American cul-de-sac would make it onto the worst neighbourhood list, but if the shady secrets, crimes and disasters that hit this lane were to be uncovered, buyers would definitely think twice. Wisteria Lane has witnessed a plane crash, a tornado and even a riot. The death rate here is also quite high, with characters on this lane meeting a variety of shocking ends, both self-inflicted and criminally planned. Despite the idyllic and spacious detached properties, it is hard to look past the tumultuous lives of the desperate housewives on Wisteria Lane.

[Image Credit - Wikimedia – Author: Leonie Wise, Uploaded by User: Epson291]

With the Olympic Games quickly approaching, London is firmly set to remain as the most expensive place in the UK. At present many landlords looking to attract short-term tenants during this time are charging premium rent rates due to the high demand for Olympic property. Similarly, property prices have started to rise, particularly near the Olympic stadium as the new developments add value to their surrounding areas.

Capital Expenses

Some assume that when the games come to an end prices may start to drop, however recent reports claim that London property values will increase by a total of 22% over the next 3 years. This is bad news for people looking to make London their permanent home, as it will make purchasing a property more difficult than it currently is. Even renting will prove a difficult feat as rent prices near the Olympic zone have already risen by 9% this past year.

Many landlords have been forced to raise their rent prices due to the increased mortgages they are taking out in order to fund their portfolio expansions. In fact, many are being praised for keeping the property market active while the economy struggles to stabilise. With higher mortgage rates, many landlords will be seeking cheap landlord insurance to reduce their overall costs.

So, Does a Cheap Place in London Exist?

Technically yes, it is possible to find a cheap place in London. It really depends on what a person defines as cheap and expensive, which varies. There are areas in the city which have property and rent prices lower than the capital’s average; however they will still be considerably more than most parts of the UK. The following areas in London will appeal to tenants who do not earn the highest of salaries such as young professionals and students, even possibly some families.

East and South East London are particular hotspots for property seekers on a budget. Using Zoopla.co.uk for price references, the following areas were identified as places that provided an abundance of cheaper than normal house share properties with 3+ bedrooms.

Camberwell – prices currently range from £1200pcm to £1700pcm. It’s located in zone 2 with connections from Denmark Hill station on National Rail lines. London Overground is also expected to serve this station from October 2012.

Elephant & Castle – prices currently range from £1400pcm to £1900pcm. It’s located in zone 1 and 2 with connections on the Bakerloo Line, Northern Line and National Rail.

Walthamstow – prices currently range from £1000pcm to £1600pcm. It’s located in zone 3 with connections on the Victoria line and National Rail.

New Cross – prices currently range from £1200pcm to £1600pcm. It’s located in zone 2 with connections on the Overground and National Rail.

Poplar – prices currently range from £1400pcm to £1700pcm. It’s located in zone 2 with connections on the DLR.

1. Hogwarts Castle

It has ‘castle’ in the name but it’s been a home to hundreds of witches and wizards, dark lords, basilisks, trolls etc. Multiple buildings across the UK were used to film interior and exterior scenes, as well as in Leavesden Film Studios, to piece together the iconic boarding school. Principal filming was done at Alnwick Castle and Gloucester Cathedral while other notable places include Durham Cathedral and Oxford University’s Divinity School. Despite the entire property being fictional, it’s one of the most recognisable buildings in film. J.K Rowling describes it as “a huge, rambling, quite scary-looking castle, with a jumble of towers and battlements.”

2. Rich Manor

Riding high on the success of Home Alone, Macaulay Culkin went on to greener pastures, more specifically Biltmore Estate and its 8000 acres of land in Asheville, North Carolina. He played the world’s wealthiest kid, Richie Rich, who is forced to take-over the family company when his parents go missing. In the film, this mansion has a large laboratory for Mr Rich’s quirky inventions, a personal McDonalds and more famously ‘Mount. Richmore’. Unlike Highclere, however, Biltmore is open for visits and guests to stay over. It was completed in 1895 by George Washington Vanderbilt II and has 250 rooms. This extravagant mansion hosts multiple activities and in the words of Vanderbilt, is a “little mountain escape”.

3. Wayne Manor (2005)

Home to the orphaned caped crusader, Bruce Wayne, the Christopher Nolan Batman Films used Grade I listed Mentmore Towers in Buckinghamshire as Wayne Manor. However the Manor was burnt down by one of Batman’s nemeses and the rebuilt version will be Wollaton Hall in Nottingham. Mentmore was initially built in 1855 for Baron Mayer de Rothschild but was eventually passed into other hands over the years. By the mid 20th century the property had accumulated a lot of fine furniture and an auction was organised in the 1970s that rose to over £6,000,000. Currently there is an air of mystery over the future of the property as its last known owner became bankrupt while maintaining this stately country house.

4. Downton Abbey

Another castle makes the mansion list but this building is very much real. The fictional Downton Abbey is the country house, Highclere Castle, home to the Earl and Countess of Carnarvon. It is a Grade I listed building and construction began in 1839, almost 175 years ago. The property however, is kept in a good condition and has over 50 rooms, most of which are furnished with luxury pieces of period furniture. Admirers can visit the castle and its grounds in Hampshire (2 miles south of Berkshire) from £9.50 upwards. An unexpected feature of the castle is its educational Egyptian exhibition with antiques from over 4000 years ago.

5. Pemberley (1994)

In the BBC adaptation of Pride & Prejudice, Colin Firth shot to fame as Mr Darcy. Darcy earned at least £10,000 a year (jackpot in the late 1800s) and lived in the estate, Pemberley. The Grade I listed Lyme Park was Darcy’s mansion, which is located in Cheshire. The most distinctive feature of this property is reflection lake, so named as it perfectly reflects the image of this vast estate. It is currently owned by the National Trust but has only been in the hands of two families since it was built in the 17th century, although it was restored in 1816. With Edwardian furnishings and a nearby medieval deer park, this mansion can be visited from £9.90.

This Friday we’re launching a new interactive blog feature, and we would love all of you to get involved. Every week we’re going to run a Friday Five. This is where we will list our five favourite properties within a set topic.

At PQD, not only do we love property insurance, but we can’t get enough of the properties themselves either! We keep our ear to the ground 24/7 to bring you the latest from the property-sphere, and every Friday we feel it’s time to relax a little in order to daydream about those perfect properties.

This week it’s our favourite mansions seen in a movie or television show.

How You Can Get Involved

By following us on Twitter (@LandlordLoop) you’ll get updates on the category of the week. Then all of you wonderful people can tweet some ideas on what we should include in the list. Using this information we’ll rank a top five and post it on our blog every Friday.

Maybe you’ll agree with our list or perhaps you have a different top 5? Either way we want your feedback via Twitter or via the comment section on the blog. If you think we’ve missed out an amazing property, then please let us know. Furthermore you can tell us what your Friday Five would be!

The Friday Five is all about embracing the fun, wacky and simply incredible properties, and we want you to have your say. So prepare for enjoyable and engaging topics which will even give Rebecca Black something else to look forward to on a Friday!

Common Problems

Landlord insurance policies are necessary in order to protect yourself from any unforeseen problems related to your tenants and their experiences in the house. However some issues can be expected, so it is important to be aware of them and know how they can be dealt with.

The bathroom is probably the hardest room in the house to maintain as it is constantly exposed to moisture and frequent mess. In order to cut corners on costs, carpet is sometimes fitted but this is not ideal for a room which gets exposed to water and other liquids. It can get damp and stained which can make the room smell and appear dirtier than it probably is. However, some prefer it as it’s a nice alternative to cold tiled floors and reduces the risk of slips and falls.

Tiled floors on the other hand cost more but they look a lot nicer, provided they are regularly cleaned. A cheaper happy medium would be fitting vinyl flooring where you can have the image of tiling. It is also much easier to clean and doesn’t get as cold. Purchasing bath mats will also reduce the risk of falling
Having wooden furniture and bath panels is not suitable as it can rot from leaking water. Plastic and ceramics are best as they are more water-resistant. Limescale build up is also common around taps and sinks, particularly in areas with hard water. Good news is they are quite easy to clean with any decent remover from a local store.

The biggest issue for maintaining bathrooms is the risk of mould. While some moulds are seemingly harmless, they are unsightly and the dangerous types are extremely hazardous to your health. It’s best just to prevent it at all costs.

Mould Prevention

Mould thrives in dark, damp and warm conditions. Some steps you can take (unless the mould is excessive and a professional is needed) include keeping the room well ventilated. When tenants take a shower, urge them to keep an extractor fan on or open a window so the steam can escape. After they’re done it is good practice to dry the walls to speed up the drying process.

Also regularly cleaning the shower curtain can reduce mould build up as well as cleaning the bath mats and towels. When they are wet they should be hung over a heat source to dry and never left in a pile on the floor or in the hamper.
Mould resistant paint and mould/mildew treatments can also aid prevention. They can be found in many stores which contain kitchen and bathroom supplies.

This year the age limit for people entitled to a housing allowance that was the same rate as a person renting a single room in a shared house, got pushed up from under 25 to under 35. This will result in more people needing to live in cheaper and/or smaller residences. However there are some exceptions such as single parents, people living with dependents or couples in self contained accommodation.

House Share

So for many individuals who are finding they can no longer live in their current residence by themselves, a potential option is living in a shared house. House shares can be beneficial for both landlords and tenants. Tenants have a reduced cost of living while landlords can make the most out of properties with an abundance of bedrooms, with the potential to receive high rental yields. Make a note however that larger houses tend to be a bigger investment so a good property insurance policy is important.

House shares are conventionally popular with students and young professionals, however with these recent benefit changes a wider market of tenants will be looking for this alternative living situation. The main negative for landlords who own a house share is the unexpected departure of a tenant. If a rolling contract is provided, a tenant may be unsure if they are willing to renew their tenancy agreement until a few days before. If it is difficult to find a new tenant, months of potential rent payment can be lost. However this will not be the case if a notice period is required; but you cannot always trust tenants to adhere to the rules.

Picking the Right Tenant

If you already have tenants staying in your property, expect that they will want some input into who lives with them, which is understandable. For a landlord the main questions they want answered are, if the prospective tenant has the ability to pay rent and bills on time and if they can be trusted to keep the house and their room in good condition. Current tenants expect the same as well as the ability to get on well with everyone in the house. Clashing personalities in one house is a disaster waiting to happen.

The interview process is an ideal way of finding a suitable tenant but you don’t want to open your home to everyone interested. Therefore it is important to have a good filtering system in place. Write a description of the property, the people currently living there and the ideal tenant you have in mind. This allows people to judge for themselves if they are comfortable potentially living there. Pictures of the property in the advert are a great addition too. Having specific requirements makes the hard work of finding a good house share tenant so much easier.

This information can give prospective buyers a rough idea of how property prices vary in each region. Landlords in particular need to be aware of property values as the success of their investment is determined by market values. Once a purchase has been made, it is important they protect their investment with property insurance.

South West

Most expensive: £3,500,000 detached house in Poole,
postcode BH13 7RL – [17/01/2012]
Cheapest: £32,000 flat/maisonette in Somerset,
postcode TA21 8LT – [03/02/2012]

South East

Most expensive: £13,000,000 detached house in Surrey,
postcode KT13 0QA – [23/01/2012]
Cheapest: £8,500 flat/maisonette in West Sussex,
postcode BN12 4EQ – [13/01/2012]

London

Most expensive: £10,200,000 flat/maisonette in Greater London,
postcode SW1X 0JU [31/02/2012]
Cheapest: £52,000 flat/maisonette in Greater London,
postcode UB8 2LJ [18/01/2012]

East Anglia

Most expensive: £3,650,000 detached house in Hertfordshire,
postcode CM23 2JN [27/01/2012]
Cheapest: £19,000 flat/maisonette in Suffolk,
postcode IP2 8GW [27/01/2012]

East Midlands

Most expensive: £1,525,000 detached house in Northamptonshire,
postcode LE15 8PA – [13/02/2012]
Cheapest: £10,000 flat/maisonette in Lincolnshire,
postcode LN2 4FQ – [15/02/2012]

West Midlands

Most expensive: £999,000 detached house in Worcestershire,
postcode DY9 9SS – [13/01/2012]
Cheapest: £16,000 flat/maisonette in Staffordshire,
postcode WS11 1DY – [23/02/2012]

North West

Most expensive: £1,824,960 detached house in Cheshire East,
postcode WA16 8NS – [07/02/2012]
Cheapest: £19,000 terraced house in Greater Manchester,
postcode M11 4GN – [31/01/2012]

Yorkshire and the Humber

Most expensive: £2,500,000 detached house in North Yorkshire,
postcode HG3 3EU – [10/01/2012]
Cheapest: £10,000 terraced house in the City of Kingston upon Hull,
postcode HU9 2TX – [10/02/2012]

North East

Most expensive: £1,875,000 detached house in Middlesbrough,
postcode TS7 0JB – [27/01/2012]
Cheapest: £10,000 terraced house in County Durham,
postcode DL13 5DX – [16/02/2012]

In summary it is evident that the North/South divide remains, with London’s cheapest property being 5 times more expensive than the cheapest in the North East and Yorkshire respectively. Another interesting observation is that cheaper properties in the north tend to be terraced houses which can potentially offer buyers more (in square feet) than the higher priced cheap flats/maisonettes in the south.

Benefits

Taking this kind of action is extremely beneficial in regions which have high population and high levels of employment. Also, as the economy is still unstable, the rental market has received increased interest for a number of months which has consequently led to a rise in landlord insurance quotes being generated. Two homes in one building in theory, should lead to higher rental yields however, the steps to make this a reality are not straightforward and it is not a viable option for everyone.

Rules and Regulations

Before any plans to install new fixtures can be made, planning permission needs to be granted and multiple building regulations need to be adhered to. Some of the important aspects to consider early on in the process are the building structure, fire safety, sound proofing and utilities (gas, electricity and water).
When the council are assessing whether to grant permission, they take into account a number of factors such as the number of flats already in the vicinity, the neighbours and parking.

Who You Gonna Call?

A lot of varied contacts will be required in order to get an ambitious project like this off the ground. Letting agents and mortgage advisors are a great source of knowledge on what type of property you should be looking to convert, as well as an estimate on the rental yields you can expect to earn.
Professional building surveyors and architects can advise you on structural changes that need to be made, followed by a contractor/builder who is needed for completing the process of converting the house into flats.

Costs

There is no general estimate on how much a conversion will cost as each property and its requirements differ. Some of the costs you need to budget for include labour, not just the builders who install new fixtures but surveyors/architects who come out to assess what needs to be done. The materials, fixtures and fittings for each flat, VAT, estate agent/solicitors fees (including a mortgage) and application/regulation costs.
It should not be too surprising if these costs and others not mentioned total around £40,000 but as mentioned before, each property varies.

All the information given here is simply a rough guideline of things to consider when researching conversions. It is best to seek advice from a number of reliable sources, in order to get a full picture of what is required specifically for you.