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Posts Tagged ‘Landlords Insurance’

Is Now the Time for Landlords to Expand?

Wednesday, 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 should not be fooled by warm weather

Thursday, 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 »

New homes still in short supply

Tuesday, November 8th, 2011

The fragility of the housing market outside of London is still very much a concern for those in the industry and more importantly for those looking to find decent accommodation in which to live. The recent figures released by The National House Building Council (NHBC) illustrates amply the problems prospective home buyers are facing and how vital it is for property investors with an interest in landlords insurance to expand their portfolios.

Not enough new builds

While sales of established properties at least appear to be holding steady, a chronic under supply in new properties is continuing to harm the housing market. In Wales, where housing needs are getting desperate, there have been a number of new homes built and covered by homeowners insurance in the last three months, but many more are needed to meet what seems to be an ever increasing demand. According to the National House Building Council there were 1200 homes built in the last three months but this is only a small percentage of the number actually needed.

It is not just a problem for Wales as throughout the United Kingdom the number of new homes that have been registered with NHBC has dropped compared with the same time period year

Who will buy the homes?

Only last week the Government announced that it was looking to see almost a quarter of a million new homes built every year for the next 4 years. This it said would ease the burden on local authorities, councils and the private buyer. Where the homes will be built and by whom is still far from clear. Housing associations have been informed as to whether their bids for Government funding for building new homes have been successful but builders are still uncertain as to how the Green Deal and other regulations will impact on their building plans. And of course the other uncertainty is who will buy the homes aimed at the private sector. Many more landlords will fancy the opportunities to grow their business if the conditions are right and they may need to, if banks don’t help private homebuyers.

Market dependant on Landlords

The NHBC feel the coalition needs to remain strong on its current policy as well as being prepared for further assertive action if it becomes clear that house building is getting to a perilously low level. In recent months the UK property market has been drowning in the negative publicity of low interest rates and the low supply of realistically priced homes. The property market still has stiff challenges ahead for the rest of this year and probably the whole of 2012. The outlook remains uncertain but, with the UK economic recovery expected to remain sluggish landlords may have a big role to play in housing the residents of the UK.

Tags: Government, homeowners insurance, Housing, landlords, Landlords Insurance, new homes
Posted in Housing Market, Landlord Insurance | No Comments »

Empty homes set to lose council tax discounts

Thursday, November 3rd, 2011

Landlords and property investors with an interest in empty property insurance and holiday home insurance will be alarmed at words emanating from Whitehall suggesting they may well incur some unforeseen extra costs within their property portfolios.

Landlords hit by two pronged attack

In a raft of what has been described as “discretionary measures”, Communities Minister Eric Pickles has proposed to give local authorities and councils the power to source their council tax collection more “creatively”. The measures have been introduced in response to the housing shortage that is evident in most areas of the UK at the moment and the two measures that will affect property investors most are the plans to scrap the council tax discount on empty homes and to put extra taxes on the owners of properties that have been vacant for over two years.

Housing shortage is the crux of the matter

With homeless charities claiming there are over half a million perfectly good homes lying empty, councils and the Government have been under pressure to ease the situation. The current plan to build hundreds of thousands of new homes in the next ten years will certainly help the problem in the long term, but won’t help the current dire situation faced by thousands of homeless families.

More stick than carrot

The Government believe scrapping council tax discounts will encourage landlords to keep their properties in use, and the rumours of a surcharge of up to 50% of council tax levies on properties that have been empty for over two years can be viewed as a threat rather than incentivisation.

Landlords worried that home improvements could fall foul of new rules

Of course no-one wants to see homes empty, but landlords who want to develop and improve their properties fear they may be penalised by the new system. It is certainly feasible that the purchase of a property and the subsequent change of use; for example from a large detached Victorian house to a purpose built set of apartments for disabled people could easily take two years. Would the owners of the property then fall foul of the new council tax measures? Certainly David Salusbury of the National Landlords Association is worried about such a scenario but Mr Pickles said councils would have the chance to judge each case on its merits. He stressed the measures would be introduced to help families find homes and to take the burden of debt off those who could least afford it.

Tags: empty property, Empty Property Insurance, holiday home insurance, landlords, Landlords Insurance
Posted in Landlord Insurance | No Comments »

Record fines await illegal landlords

Tuesday, October 25th, 2011

Residential landlords in London and Glasgow, two of the UK’s largest cities, have been warned that local authorities are no longer prepared to put up with non compliance over registration schemes and that rogue landlords will be hunted down and brought before the courts.

Good relationships work best

Of course the great majority of landlords across the UK are highly respected businesspersons who look after their properties as one would expect. A costly investment needs protection, not only in the guise of landlord insurance but also in maintenance, and décor, something achieved best by having an excellent relationship with their tenant. Many local authorities encourage even better relationships between landlord and tenant by requiring property owners to register with them so they can ascertain they are fit and proper persons to rent out property. The schemes work well for landlords and tenants in many of Britain’s towns and cities.

Majority of landlords support council scheme

In Glasgow 80% of the cities private landlords have signed up to a scheme which requires them to register with the local council and provide tenants with a certain level of accommodation. The scheme has been in operation for over 6 years and although landlords who have signed up to the scheme have no problem with the scheme itself they have been concerned over the councils lack of action with the 6,000 landlords who have not signed up to a scheme that was supposed to be compulsory. At long last the council appear to have listened to landlord organisations and have stepped up their efforts to track down the illegal traders.

Fine increased ten fold

The council, with the support of the Scottish Landlords Association, have now upped the maximum fine for not registering with the scheme to £50,000, ten times higher than it was before. They are collating evidence of properties not already registered to the scheme and preparing to take the landlords to court.

Website will collect information on rogue landlords

Further south in London, Ken Livingstone a candidate for the upcoming Mayoral elections has pledged that private landlords who don’t offer acceptable levels of accommodation to their tenants will be looking for empty property insurance if he is elected. He has pledged to eradicate bad practice from the rented sector altogether saying Londoners deserve a better deal. Mr Livingstone has set up a website encouraging tenants to report the many “housing horror stories” he says he hears about constantly. He promises to closely monitor the 1 in 4 homes in London that are rented out via the private sector and says that too many people are paying exorbitant prices for accommodation that in many cases is not at an acceptable level.

Tags: Empty Property Insurance, Fines, Housing, landlords, Landlords Insurance
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Welfare Reform Bill unites the opposition

Tuesday, September 13th, 2011

It does appear that the Welfare Reform Bill is managing to bring opposite and diverse factions together for the first time. Unfortunately the architects of the bill have little to crow about because the separate entities are uniting to oppose the bill.

Creation of new organisation

The birth of the Tenant Choice Alliance (TCA) has come about because of the bill and involves such groups as the Residential Landlords Association, the Council of Mortgage Lenders, the National Housing Federation and the Tenants and Residents Association of England. The alliance is targeting the housing allowance aspect of the new universal benefit scheme that will be introduced via the Welfare Reform legislation.

Private Landlords threaten action

When the Bill becomes law, all of the universal benefit will be paid directly to the tenant, with the government defending its position by saying that benefit claimants should be responsible for their own financial arrangements and it is important that they manage their own affairs. Private landlords in particular are concerned about the situation and rather than pay out more in landlord insurance to protect themselves from rent arrears have threatened to stop letting their properties to people on benefits. It would be a disastrous situation but landlords are not alone in asking for a change.

Housing associations agree

Many housing federations agree with landlords that tenants should be given a choice, saying that many unemployed tenants would much prefer to see their rent paid directly to their landlord. This gives then the security of knowing their rent has always been paid and eliminates their fear of becoming homeless. Most tenants are fearful of getting into arrears and welcome the payment by-passing their very difficult to manage budgets.

Tenants ask for choice

A spokesman for the Tenants Association in the alliance also confirmed that choice in the matter would be most desirable. And it does seem the most sensible way forward. Many people in the UK today worry about not being able to afford homeowners insurance to protect their property, but to actually worry about not having a roof over your head because you are behind with your rent is a different proposition entirely, and the truth is lots of people are hopeless when it comes to managing money. The present Government have demonstrated time and again over the last 12 months that they are willing to change direction if they think they have got something wrong. The TCA will be hoping the Welfare Reform Bill will get the same kind of understanding.

Tags: landlords, Landlords Insurance, tenants, Welfare Reform Bill
Posted in Landlord Insurance | No Comments »

Know your tenant

Thursday, August 25th, 2011

The current high demand for good accommodation has meant that landlords can go out and buy the cheapest landlord insurance on new buildings with confidence. With tenants in good supply it is good time to expand and many private landlords are doing just that.
Of course it is important to know exactly what sort of tenant the new property will appeal to, it will help target any advertising and at the same time possibly cut down on advertising costs. If you plan to rent out your property to “mid-range” tenants (neither luxury nor budget) then here are some ideas.

Consider different flooring options

Wood flooring is very popular and would suit younger professional couples as the hard, slippery surface may not be the best option for children and elderly people. You may also have some noise problems, but a large rug or two strategically placed could be a solution. You would like a nice, quality carpet for bedrooms and stairs, and quality vinyl or laminate tiles for bathrooms and kitchens.

Wallpaper will add character

You might like to invest in wallpaper for living rooms and bedrooms, it will add character and value to the property. Use special, fortified paints for kitchens and bathrooms to prevent mould and grease build-up. Try different colours for each room to make it look individual but remember to stick to neutral white gloss for woodwork such as door architraves and skirting board. It is without doubt the safest option and clean white gloss paint will appeal to prospective tenants when they look around the property.

Traditional and contemporary

Traditional oak or pine furniture may not look “in” or particularly individual, but it is something that will never go out of fashion and has wide appeal so it would be a good investment. If you prefer a modern look choose minimalist designs which have also stood the test of time and may appeal to the young couple. It is always a good idea to choose your furniture depending on the lifestyle and needs of the residents. Remember a furnished rental property means you will have to arrange home property insurance for the contents.

Curtains and blinds

Cotton sheers will give a nice clean look and cooling protection in summer. Busy professionals might like black out curtains and blinds that will secure them a good nights sleep. Choose curtains and blinds that are made from natural materials if you can, which are better quality.

Original and unusual lighting will attract

Using lots of lamps in different heights is an interesting way to create romantic lighting at night; this technique is often used in mid-range hotels. Like furniture you can choose different kinds of lighting depending on the functionality of the room but lighting that is slightly unusual will certainly be noticed by interested parties.

Tags: cheapest landlord insurance, Interior decor, landlords, Landlords Insurance, tenants
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Accreditation scheme working well for NLA members

Thursday, July 28th, 2011

In what is proving to be a bonanza year for private investors with an interest in landlord insurance quotes, one national organisation that represents the interests of such a group is turning its attention on the small minority of landlords who give the rest of them a bad name.

Separating the wheat from the chaff

With the advent of “generation rent” will come more and more stories of rogue landlords. It is inevitable, with thousands, possibly millions more people renting properties throughout the private renting sector the incidences of landlords treating their tenants badly will numerically increase. The National Landlords Association (NLA) have introduced a national accreditation scheme that they hope will enable its members avoid being tarred with the same brush as rogue landlords and at the same time give would be tenants a clear indication that they would be renting a property from a reputable person.

Onus on landlords to prove their worth

The NLA accreditation scheme is now over one year old and is aimed at providing local authorities with the confidence that they can place tenants into the private sector safe in the knowledge that the landlord and property are compliant with all rules and regulations. The scheme requires landlords to divulge their past history including affirmation that they have no criminal activity background in regard to fraud etc. It requires them to declare they will always work in a professional manner and resolve complaints and disputes in a timely fashion. They also have to promise to adhere by any decision made by an independent adjudicator if a dispute has to be referred.

Scheme 100% in Wales

The scheme has certainly been a hit with local authorities and 28 have already agreed to work with landlords who have the accreditation. In Wales every local authority has signed up to the plan. It really is a boost for private landlords. Although the present demand for rented accommodation means few landlords are taking out empty property insurance at the moment the prospects of working with local authorities can give landlords the confidence to go out there and expand their portfolios safe in the knowledge that while they base their business on standards of excellence they will have a good source of custom.

Tags: landlords, Landlords Insurance, NLA, Property insurance, tenants
Posted in Landlord Insurance | No Comments »

New Zealand landlords in “All Blacks” mood over new tax talk

Thursday, July 7th, 2011

While landlords in the UK are basking in the sunlight of a golden period of rental growth, their counterparts in New Zealand are worried they will lose their businesses as a new tax is proposed by the Labour Government.

Landlords feel they are being targeted

New Zealand in common with many countries around the world is suffering from an economic downturn and house prices are the lowest they have been for many years. In the past this would be the ideal time for property investors with a little spare cash to increase their portfolio and purchase landlord insurance on new dwellings. Unfortunately the incumbent Labour Government is planning to implement a 15% capital gains tax which will automatically be levied on the sale of a property. The announcement has been greeted with dismay among the landlord fraternity and their organisations are accusing the Government of targeting them with the politics of envy.

Tenants will pick up the tab

The New Zealand Property Investors Federation (NZPIF) are outraged by the plan and say not only will it stop investors buying property, therefore plunging the market further into a downward spiral, it will also lead to tenants paying higher rents as landlords look to protect their investment. The NZPIF say there is no point to landlords buying rented property insurance on a home that will not give them any capital gain.

Plan could become policy soon

Phil Goff the leader of the Labour party has refused to talk about the proposed tax move. He says it is not yet official Government Policy but the leaked document suggests the tax would pull in $4.5 billion and that most of the party are in favour of the idea. This is not the view of opposition politicians. The tax has been ridiculed by all and sundry, the NZPIF assertion that it is the politics of envy has been echoed by independent members of Parliament and economists reckon the tax would be lucky to raise $700 million in 15 years as it would just stagnate the housing market with homeowners reluctant to sell if they had to hand over their profits to the Government. Landlords should know in the next week or two if the policy is to be implemented, with some saying one way tickets to Australia may be on the cards for many.

Tags: landlords, Landlords Insurance, New Zealand Landlords
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Charities and landlords criticise benefit change

Tuesday, May 10th, 2011

The prospective dilemma facing investors holding residential property insurance and their young tenants in the coming 12 months just will not go away, and now an organisation created to look after the interests of landlords is letting their voice be heard.

Shared accommodation rate now applies to under 35’s

The National Landlords Association (NLA) has backed up concerns voiced by housing charities such as Crisis and Shelter who say the impending change in the shared accommodation rate of benefit could lead to thousands of young people being made homeless. The changes will come into force next January and specify that any single person claiming housing benefit under the age of 35 will only be paid the average rent charged for a room in a shared property. The drop in benefit rates could mean many landlords will find themselves letting out property to tenants who can no longer afford to pay the rent.

Survey reveals the problem

Although the changes don’t come about till January the change is already having an effect. Crisis and Shelter’s prediction that private landlords will refuse to take on single tenants under the age of 35 has been corroborated by a survey carried out by the NLA. The survey asked landlords who already let properties to tenants on housing benefit what their future plans would be in regard to whom they let their properties out to. Almost a third said they had already stopped offering new tenancies to people claiming Housing Allowance. Less than 1% said they intended to take on more and it’s fairly plain to see why.

Landlords can afford to look elsewhere

The risk for landlords who are always keen to avoid property insurance claims is just too much and the survey indicated they would advertise elsewhere to find new tenants. In the current situation they should not encounter too many problems. Tenant demand all over the UK is proving to be extremely strong in the current financial climate. The NLA also backed the housing charities on their assertion that there are definitely not enough shared properties in the country to house the number of people the change in benefit will affect. The Welfare Reform bill still seems to have some way to go before it satisfies its many critics, from both sides of the fence.

Tags: benefits, housing allowance, housing charities, Landlords Insurance, national landlords association
Posted in Housing Market, Landlord Insurance, Landlord Insurance Quote, Landlord Property Quotes, Landlords Insurance | No Comments »