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Optimism for Landlords in 2012

December 14th, 2011

While I was browsing the property sphere I came across a very interesting article discussing landlord optimism in the New Year. It seems that studies have been carried out within the private rented sector in order to indicate that landlords are excited about the prospects for next year.

Landlord Survey

The research was carried out by the Royal Institute of Chartered Surveyors (RICS) and Paragon Mortgages and it certainly looks like landlords are expecting to bolster their property portfolios in the coming year. Even this year landlords have been improving their portfolio with the average number of properties per landlord rising to 13 properties in the three months to October 2011.

The survey has revealed that 22% of landlords anticipate adding properties to their portfolio in 2012 whilst just 8% of landlords said they would consider reducing their numbers. Furthermore, the research showed that 77% of landlords were feeling more positive about actually being a landlord, whilst 57% of those landlords thought that next year will be a great time for them.

Increased Supply Needed

John Heron is the Managing Director of Paragon Mortgages, and he has been explaining the following: “This is an interesting time for the private rented sector as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain.”

He added: “Looking at the year ahead, I am pleased to see that landlords are expecting to add to their portfolios as there is no sign that tenant demand is going to slow in 2012 and to ensure the private rented sector can withstand further demand, there needs to be increasing investment in private rented sector stock.”

Tenant demand is very strong indeed at the moment and so, as demand is so strong, the amount of supply needs to improve and grow. This could then result in higher numbers of landlords as more and more people try their hand at property investment. This will undoubtedly lead to an increasing amount of landlord insurance quotes being applied for, and to be honest, landlord insurance, when managing multiple properties, will be an absolute necessity!

It’s great that landlords are feeling positive for the New Year, hopefully many other industries within the UK will share this optimism as we move into 2012, and hopefully, just maybe, we can begin to move out of the economic recession. Here’s to 2012!

Tags: Landlord Insurance, Landlord Insurance Quote, Paragon Mortgages, Property Portfolio, RICS
Posted in Landlord Insurance | 1 Comment »

New Beginnings

December 12th, 2011

An estate agency, specifically Connells in Leamington, has urged those homeowners looking to sell their property at the turn of the New Year to ensure their property is ready for, what is, a traditional New Year rush.

Prime Time

Connells have stated that January is a prime time for people to move home, and buyers are likely to begin looking around the property market for a new home at the beginning of the New Year. New year, new start and all that…

For those selling up, in order to take full advantage of interest from buyers, it will be vital to get your property on the market as soon as possible in January, and of course to make sure your property is presentable, and very sellable!

Growing Confidence

The branch Manager of Connells, Carly Baskott, has been commenting: “At Connells, we’ve seen growing momentum and interest from buyers in the second half of the year. The January market is traditionally busy and, based on the increasing activity we have had over the last six months, we expect this New Year to be the same if not better.”

It seems apparent that over the past six months buyers have come back to the housing market with greater confidence. This has been helped by better mortgage packages being offered.

Ms Baskott continued saying: “Christmas and New Year is a time for resolutions and new beginnings, and buying a home is often on people’s wish list. Sellers who want to take advantage of this annual flurry of activity should get in touch now.”

Landlord Portfolios

Furthermore, landlords may look to bolster their portfolios at the start of the year, and so, if they are buying new properties, it would be wise for them to ensure they are insured with a landlord insurance quote before they begin looking for new tenants.

With the Christmas and New Year period already in full swing, property experts will be keeping a very keen eye on the number of transactions going through during the next couple of months.

Tags: Landlord Insurance Quote, Property market, Property Owners, Property Sales, Selling Up
Posted in Landlord Insurance Quote | 1 Comment »

London Property Prices Rise

December 9th, 2011

A report has revealed that foreign investors seeking a safe haven for their money have helped boost property prices in London. The average value of a Greater London home has increased by 3.1% in November when compared with the same month last year.

Static Prices

Prices across England and Wales, on average, remained relatively static in November, and LSL Property Services Commercial Director, David Brown, has been commenting: “The resilience of property prices indicates that mortgage lenders and property buyers have not so far been spooked by the gloomy news emerging from the Eurozone.”

He added: “Although prices have declined by 0.7 per cent since November 2010, the rate of annual price decreases slowed everywhere except the North West and the East Midlands, with London buoyed by foreign investors seeking a safe haven in the capital’s bricks and mortar, showing an acceleration in price rises to 3.1% last month.”

Rise and Fall

The report also revealed that the three London boroughs with the largest growth are also among the top five in terms of price. The City of Westminster saw prices rise the most by 12.6%, whilst Kensington and Chelsea saw an 8.5% increase and Richmond upon Thames saw a 6.2% increase. It seems that there will be wealthy owners looking for property insurance quotes this winter!

The report also found that the five boroughs with the lowest price growth were in outer London. For example, Barnet experienced the largest decrease over the last 12 months as prices fell by 7.1%.

The number of properties sold in London between August and October this year has increased by 4.5% compared to the same period last year. This is good for the property market, however, this could actually be bad news for those hoping to get on the property ladder due to the fact that prices are now on the up again. This could potentially scupper plans of those who were saving for a deposit and a mortgage.

With the housing market a pretty tough environment currently, it seems that renting is still the most attractive option for many young professionals. How long will this continue though?

Tags: London Property, Property insurance, Property market, Property Owners
Posted in Property Insurance | 2 Comments »

UK Property Prices Decline

December 7th, 2011

A house pricing report released by Halifax recently has shown that house prices, on average, fell by 0.9% in November and the average house price now stands at around £161,700. This is positive news for prospective homeowners, and for landlords looking to expand their property portfolios!

Housing Market

The housing market has been looking increasingly difficult to get on to in recent months as the economic crisis deepens as many of us Brits struggle to raise enough funds to afford a decent mortgage, or any mortgage whatsoever.

Housing Economist, Martin Ellis, has been commenting: “House prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households’ finances. We expect the market to remain broadly unchanged in the coming months.”

It is also now expected that the Bank of England, which is meeting tomorrow, will leave the base rate unchanged at 0.5% due to their own continually decreasing confidence in the UK housing market. Meanwhile, Nationwide published a report that suggests that the prices of UK property will decline during 2012.

If house prices do further decline, it could actually lead to more and more people being able to afford new properties, which could in turn spark the housing market back into life. This could, in the long run, only be a good thing. I would personally love to be able to get on to the property market, but like thousands of other people in the UK, renting is the only affordable option at the moment.

Fancy becoming a landlord?

The idea of becoming a property developer and a landlord is definitely an appealing one however. Of course, it cannot all be easy money though. An incredible amount of risk, hard work, and dedication has to go into each and every property in order to turn it into a success. Becoming a landlord is also a rather long term investment – it would be wrong to expect to see short term gains.

Landlords have to be very careful also about the tenants they take on; there have been cases of abusive and anti-social tenants destroying properties. It would be wise for landlords to request a landlord insurance quote in the event of any unfortunate damages befalling a property, particularly if anti-social tenants are occupying the property!

Furthermore, landlords are often expected to be able to respond to any maintenance issues as quickly as possible. This can be stressful as nobody wants their spare time eaten into by a cracked pipe at a property 20 miles away, for example. However, that’s kind of the point of a landlord; it is a full time undertaking, and not something anyone can do half-heartedly.

Tags: housing market, Landlord Insurance, Landlord Insurance Quote, Property market
Posted in Housing Market, Landlord Insurance Quote, Property Market | 1 Comment »

Growing Supply

December 5th, 2011

It has recently been revealed that landlords are remortgaging as a means by which to fund further property investments as they try to keep up with high rental demand, and ultimately, cash in from a booming rental market.

Demand and Supply

This comes as good news to those seeking rented accommodation due to the fact that so far, demand has been extremely strong and competition for accommodation has been fierce across the UK due to low supply of rental properties.

The Director General of the Council of Mortgage Lenders (CML), Paul Smee, has been quoted saying: “With tenant demand remaining strong in the rental sector, some existing buy-to-let landlords have been expanding their portfolios and the growth that returned to the sector in the preceding quarter has continued. The recovery of buy-to-let from its low point in 2009 has helped improve supply and choice in the rental market. Despite recent improvements, however, buy-to-let lending volumes are still only around one-third of their former peaks.”

You’ll have had to live under a rock in recent months to miss the news that there a very few buyers in the housing market at the moment which has led to an increasing number of people turning to rental properties.

Charles Haresnape, Managing Director of Aldermore Residential Mortgages, has commented: “The continued buoyancy of the buy-to-let sector is excellent news for landlords, lenders and intermediaries. It confirms that investor appetite for residential property remains strong, which has been fuelled by growing tenant demand. It does, however, underline the plight of many first-time buyers, who are being held-back because of their inability to raise sufficiently large deposits.”

New Investors

Whilst already existing landlords are expanding their portfolios, there are new investors being attracted to the rental market as they see a sure way to grab a good return on their investment. Landlords can come under a lot of flak from tenants, most of which is unnecessary, however, it will be vital for new landlords to ensure they are professional at all times and have all the correct particulars, including landlord insurance cover of course.

Living in rented accommodation, from a tenant’s point of view, can be very frustrating at times, however, if one cannot afford to buy yet, then there is really no other alternative. In the current economic climate, such a point of view could be music to a landlord’s ear.

Tags: Growing Supply, Landlord Insurance, Rental Demand, rental market, rental sector
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Letting to Young People

December 3rd, 2011

The number of first time buyers who are struggling to get a mortgage and save a deposit to get onto the property ladder is increasing, so it’s no surprise that a large proportion of the rental property market is under the age of 35.

It would be helpful to think about how you could market your property to this age group and what types of people might be renting your property.

Young Professionals

A lot of under 35s are young professionals, maybe graduates or school leavers looking to move away from home. Many young professionals will look for a property that’s convenient to transport, as they’ll have to commute to their work. Because they are usually always on the go, many would really appreciate facilities in the property like washing machines, dryers and dishwashers. It’s always important to screen your tenants and conduct proper credit checks, though it’s unlikely that you will encounter difficulty with any tenant.

Students

Having a property near to a good college or university will be sure to bring you income. Most students are laid back when it comes to any problems to their property, however, students are known for occasionally causing breakages to property, so to minimise the impact of these accidents, you should take out landlords insurance.

Letting to the under 35s might be where the bulk of your rental income will come from, so you should be well kitted out to provide a property that is functional for young people.

If you are considering letting to younger people, marketing online can be a good tool for attracting them and it’s worth taking time to research the marketing potential of sites online.

Tags: Landlord Insurance, landlords, Students, tenants, young professionals
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Is Now the Time for Landlords to Expand?

November 30th, 2011

According to recent researched commissioned by Paragon Mortgages, a fifth of all landlords in England are looking to expand on their property portfolios in the next 12 months, but is it the right time for them to be investing in more property?

With the reported risk of another fall into recession, the value of property could start to fall dramatically once again and so a newly bought property could lose a lot of its value. The other worry for landlords during recession is tenants not being able to pay their rent, and if they can’t, a mortgage on a new property may be an annoying cost!

However, 57% of the landlords surveyed by Paragon believe that the immediate future looks bright for the private rental sector, and there are a lot of good reasons for this:

Struggling First Time Buyers

With first time buyers finding it incredibly difficult to secure mortgages, given the high level of deposits they need, the rental market is booming. This means that landlords are finding it easier to fill their properties with tenants, and given the rise in competition for rental accommodation, can even charge slightly more for the properties.

Low Interest Rates

Although first time buyers are finding it difficult to secure mortgages, if you have capital behind you and the funds available for a deposit you will find some excellent bargains on the property market. The economic turmoil and lack of new buyers has seen property prices fall over the last year and so if you can afford the deposit on a new house, you may find a bargain on the property market and end up with a very low mortgage.

Government Schemes

We are all aware of recent cuts in Government funding, but there are still many new housing schemes coming into affect that can secure additional income for landlords. New green housing and social housing schemes can bring in additional income for landlords, making the property a more profitable investment.

With the current economic problems, there is a risk that tenants may default on rent payment, but with a comprehensive Landlord Insurance policy this risk is covered and you can enjoy the perks of a booming rental market, low house prices and Government funded schemes.

Tags: Landlords Insurance, Paragon, Property market, Renting Market
Posted in Property Market | No Comments »

Landlords and residents set to sign groundbreaking agreement

November 24th, 2011

Social landlords in a village in the North East of England are setting out on a social experiment that could spread across the UK if it proves successful.

Groundbreaking document

Accent Foundation, the main housing provider in former colliery village Horden, near Newcastle, are launching a Good Landlord, Good Neighbour scheme that will require tenants to sign an agreement that will hopefully improve the austere conditions in the village. The agreement is still at the draft stage and local residents have been invited to input their own ideas as to what should be in the document.

All parties will sign

Once agreed, the document will be posted to all the population of the village, whether they are tenants or property investors with an interest in landlord insurance. Michael Fishwick, an employee of Accent, is behind the plan and he is adamant it can work and be the blueprint for other schemes across the country.

Residents asked to play their part

He envisages residents working with landlords and letting agents to drastically reduce anti-social behaviour, a problem that has blighted the village for some time. He wants tenants to know the whereabouts of their children at all times, to put bins out correctly on collection days and to be responsible for their pets and any mess they may make in the streets. He wants them to report anti-social behaviour whenever they see it and to maintain good relations with their neighbours when at all possible.

Landlords promise to maintain high standards

In return he promises that landlords will play their part in the scheme by taking part in monthly visits where they will listen to any complaints tenants may have. He promises landlords will take swift action against anti-social tenants and will undertake to get any maintenance work done in quick fashion. Property insurance will be kept up to date which will ensure money is available when repairs are urgent. He envisages landlords and letting agents supporting local groups within the area and three monthly meetings of all landlords to discuss any problems that arise from the agreement.

Beating anti-social element is the key

Mr Fishwick has already managed to get local residents’ organisations involved and is keen for the scheme to start before the New Year. He believes once anti-social elements are controlled the rest will fall into place. It is a brave idea and one that the silent majority will support. It remains to be seen however, if the villagers can pull it off.

Tags: Good landlord, Good neighbour, Landlord Insurance, Property insurance
Posted in Advice, Best Practice Guides for Landlords, Landlord Insurance, Property Insurance | No Comments »

Changing face of UK landlords

November 22nd, 2011

The current propensity for properties going to buyers with an interest in landlord insurance seems set to continue as lenders continue to recognise buy-to-let investors as the safest bet in terms of mortgage risk.

New breed enters the market

As young couples continue to struggle to raise a deposit that will enable them to purchase a property, residential landlords are finding more and better deals available to them all the time, including property insurance. The current financial flux of low interest rates, lack of lending from the banks and a seemingly insatiable demand for tenanted accommodation is attracting a new kind of landlord.

Buy-to-let is an interesting option

The luckier members of society who find themselves in jobs that are not threatened by the current austerity measures imposed by the Government find themselves in a position where they are accruing money but have few options to invest the cash in a market that will give them a good return on their investment. Twelve months ago investing in the property market would have been almost impossible, the financial situation and lack of buy-to-let mortgages would have seen to that, but now, all of a sudden the property market is awash with buy-to-let deals that get better day by day. Twelve months ago investors would have been facing a 50% deposit; today 25% deposits with the right financial background are becoming common place.

Education fees replacing pension plans

The identity of the modern landlord is changing quickly too. Today the landlord with just 1 or 2 properties in his/her portfolio is likely to be a middle aged professional couple confident of their own future but not that of their children. The tenants paying rent into the bank accounts of this type of landlord will not be building up a retirement pension for their landlords but more likely contributing to school and university fees for the landlord’s offspring.

Sector changing quickly

The dynamics of the housing sector in the UK are changing faster than ever before. Those with a finger on the pulse of the market and the wherewithal to back their judgement could find the fragility of the present financial situation gives them a rock solid investment for the future of their own family.

Tags: Buy-to-Let Insurance, Landlord Insurance, UK Landlords
Posted in Advice, Insurance Guides, Landlord Insurance, Property Insurance | 2 Comments »

Landlords should not be fooled by warm weather

November 17th, 2011

What a difference a year makes! It was around this time last year that the UK found itself enveloped by atrocious weather conditions. Beginning with floods in the South West, these were quickly followed by Arctic conditions in Scotland which eventually moved progressively south and left the whole British Isles shivering for months. Landlords across the length and breadth of the country found themselves claiming on their landlords insurance policies for all manner of things related to the bad weather.

Balmy weather

Compare that to the balmy conditions we are experiencing at the moment. Here in the South West the temperature gauge has yet to drop below double figures so warnings about preparing properties for winter are hard to take seriously, but they should be.

Green deal could hold back investment

The temptation for some landlords may be to hold back on investment on insulation as the Government’s much vaunted Green Deal supposedly starts next year. Although details are still sketchy landlords may well be forced to bring properties in their portfolio up to a certain standard; however, they may be eligible for cheap loans to complete the work. Obviously investors with a solid business brain have to consider this but they should not leave their homes at the mercy of the weather if repairs are needed now. Their business property insurance provider will require them to keep their property in a state of good repair and their tenants deserve to be given the best living conditions the landlord can achieve.

Good relationship with tenants a must

With this in mind landlords should aim to insulate their loft to a minimum of 10 inches and to also consider cavity wall insulation. They should use draught excluders where appropriate if they are holding back on investing in a new heating system and now is the time to ensure that all exterior maintenance is completed. Mid winter is not the time to have missing roof slates or leaky guttering. Tenants should be asked if they have noticed anything that should be repaired or soon will do and it’s massively important to make sure tenants know how to work heating systems. It is foolhardy to install a new system unless the house incumbent is completely at ease on how it works. It always pays for landlords to take time to get to know their tenants; a good relationship is beneficial in lots of ways to both parties.

Tags: Advice for Landlords, landlord advice, Landlords Insurance, tenants, Weather
Posted in Best Practice Guides for Landlords, Landlord Insurance, Property Insurance | 1 Comment »