Wednesday 30 March 2011

Shelter calls on Shapps to tackle rogue landlords as complaints rise by 23%

New figures released by Shelter today show a worrying rise in complaints about rogue landlords at the very time the private rented sector sees its biggest growth on record.

Over the past 12 months the housing and homelessness charity has seen overall complaints about landlords increase by 23 per cent. Specific issues include complaints regarding shocking levels of dampness and disrepair which have risen by more than 40% and complaints of harassment by private landlords which have risen by nearly a quarter.

Meanwhile the number of households privately renting has hit 3.4 million, a massive 40 per cent rise over the past five years, due to a chronic shortage of social housing and millions being priced out of the housing market

These figures raise serious questions about how rogue landlords are still able to operate freely, preying on the most vulnerable and leaving them to live in properties that could be a serious danger to their health and wellbeing. While they represent only a minority of landlords, the charity is concerned by the sharp increase in complaints and the impact this is having on tenants’ lives.

Click here to read the full article Shelter calls on Shapps to tackle rogue landlords as complaints rise by 23%

NetRent Comment

We agree with Shelter that so-called Rogue Landlords are unacceptable but this campaign is completely unbalanced. The statements they make and the way they make them would be laughable if they weren't so serious.

Click here to have a look at their Facebook campaign Evict Rogue Landlords Video - just don't play the video or you will telling the world that you 'Like' the Rogue Landlords Campaign.

Tuesday 29 March 2011

The Best Buy-to-Let Areas Revealed

The buy-to-let market has been less than buoyant recently, yet it finally looks set to pick up with landlord numbers expected to rise this year.

So where are the best and worst areas to secure rental return on your investment?

Optimism is returning to the buy-to-let market, according to a new survey by The Mortgage Works which found that the majority of brokers believe the number of new landlords will increase in the coming year, and existing landlords will grow their portfolios.

While admitting there may still be some way to go before a full recovery is seen, the lender said the signs are that the buy-to-let market is in a buoyant mood.

Click here to read the full article The Best Buy-to-Let Areas Revealed

NetRent Comment

Landlords who are looking to buy can take advantage of the NetRent Mortgages offer - independent advice on Buy-to-Let mortgages with no broker fees.

Click here to visit NetRent Mortgages

Monday 28 March 2011

Tonic for buy-to-let market

The buy-to-let market received a boost this week after the government announced it would cut the tax cost of buying multiple residential properties, potentially unlocking £7.5bn of investment into the private rented sector.

Property experts said the change would encourage more professional landlords and larger institutional investors to build up their portfolios, increasing the supply of private rented houses to the market.

Click here to read the full article Tonic for buy-to-let market

Saturday 26 March 2011

Campaign to make squatting a crime gathers pace

An early day motion calling for squatting to be criminalised and a petition to be presented on April 4 at Downing Street are part of a new campaign.

The proposed new law will mean that home owners will no longer have to go through the civil courts in order to evict squatters from their properties.

Instead the police will be able to force entry and arrest anyone who has occupied a property without the consent of its owners. In Scotland, squatting is illegal and offenders can be jailed for up to 21 days.

At present, squatters may legally enter an empty property provided they do not cause damage when gaining access. Existing laws protect squatters by preventing a homeowner from forcing their way back into a property using force.

Click here to read the full story Campaign to make squatting a crime gathers pace

Friday 25 March 2011

Landlord fined record figure for safety risks

A Leeds landlord has been hit with a record fine and costs totalling almost £25,000 after ignoring numerous warnings to licence his properties.
Martin Horsfall was found guilty at Leeds Magistrates last Friday in his absence and fined £20,000 for failing to get a selective licence on four properties in Cross Green and East End Park in Leeds

Click here to read the full story Landlord fined record figure for safety risks

Saturday 19 March 2011

Lettings data indicate steady rise in cost of renting

Tenants signing new contracts suffered a small rise of 0.2% in rents during February 2011, pushing the average rent in England and Wales to £684 per month – 3.9% higher than a year ago, according to the UK's biggest lettings agent network. But there was also an increase in tenant arrears during the month, indicating that many renters are struggling with the rising cost of living.

The average yield on buy to let property increased to 5% in February as rents increased at a faster pace than rental property values, according to the LSL Property Services buy-to-let index. Rents increased fastest in Wales, where they rose 1.9%, and the north-west and the east Midlands, where they rose by a respective 1.1% and 0.8%.

Click here to read the full article Lettings data indicate steady rise in cost of renting

NetRent Comment

With the scarcity of mortgages and the relative lack of property to buy it is inevitable that the demand for rented property will increase in the short to medium term. Rents are bound to rise because there is a finite amount of rented property.

Landlords who are able to add to their portfolios are likely to see healthy returns during this time, especially as there are now more Buy-to-Let mortgage options.

Click here to view the Top 10 Buy-to-Let mortgages from NetRent Mortgages. NetRent Mortgages are independent Buy-to-Let specialists, we do not charge broker fees on Buy-to-Let mortgages.

Government plan to turn empty offices into homes

The scheme, set to be announced in the Budget, is aimed at boosting the supply of new homes in the UK after 2010 saw housebuilding fall to the lowest level in a peacetime year since 1923.

The Government believes that if all empty office space in the UK was converted into residential property it could create 250,000 new homes and save nearly £140m in planning system costs.

Click here to read the full story Government plan to turn empty offices into homes

Friday 18 March 2011

Property Ombudsman calls for law change to protect landlords and tenants from rogue letting agents

The Property Ombudsman, Christopher Hamer, is using his 2010 Annual Report to make a fresh call for more control over the actions of residential lettings agents.

The number of lettings offices voluntarily covered by The Property Ombudsman (TPO) scheme climbed to almost 8,000 by the end of 2010. However, Hamer is concerned that agents who do not sign up to and adhere by the standards in the TPO Code of Practice can continue to operate, potentially to customer detriment.

Hamer said: “The Code of Practice represents a comprehensive set of standards by which firms conduct their business. Knowing a firm is complying with those standards will give consumers confidence that they are dealing with an organisation which has a committed approach to customer service and that best practice is being treated as a priority by agents.”

Click here to read the rest of the article Property Ombudsman calls for law change to protect landlords and tenants from rogue letting agents

NetRent Comment

We support the TPO and recommend that all landlords and tenants carefully check that their letting agent is a member of The Property Ombudsman (TPO) scheme. Do not take the agent's word that they are a member of the TPO, you can check yourself by contacting the TPO here The Property Ombudsman

Law to protect good landlords

MSPs today passed a new law that will raise the standard of private rented housing in Scotland.
The Private Rented Housing (Scotland) Bill will protect the reputation of Scotland's good landlords and tackle the minority of bad landlords who are acting illegally.

Local authorities will have greater powers to tackle bad practise and penalise unlawful operators while improving tenants and landlords' awareness of their rights and responsibilities.

Bad landlords face a £50,000 fine and a ban on letting flats for up to five years. There will also be a crack down on unscrupulous agents charging extortionate, unlawful premiums.

Click here to read the full story Law to protect good landlords

Tuesday 15 March 2011

Buy-to-Let Mortgages Start To Make A Comeback

During 2008 the number of Buy-to-Let mortgages plummeted from over 3,000 to fewer than 200 as lenders ditched the private rented sector in droves.

Lenders who previously competed so furiously for landlord’s business stopped competing with each other and stopped lending. In many cases lenders actually paid landlords to take their mortgages elsewhere. Analysts confidently predicted that the whole UK Buy-to-Let sector faced meltdown leaving lenders with huge debts.

The fact was that the Buy-to-Let sector did not suffer anything like the level of bad debts predicted and now Buy-to-Let lending seems set for a comeback. Lenders are finally beginning to realise that landlords make excellent customers as demand for rented property begins to soar.

What started as a trickle is now gaining real momentum as lenders head back into the Buy-to-Let market. After a stream of positive headlines about the prospects for the private rented sector even lenders are beginning to realise that landlords could be one of the few beneficiaries of the recession. When they look at their debt ratios they also see that Buy-to-Let fared better than virtually ever other mortgage sector during the recession.

The reality of the residential mortgage market is that lenders are not lending in sufficient amounts, builders are not building in the quantities needed and as a result the housing market is stagnant. First time buyers who are the driving force of the property market cannot get onto the housing ladder. The knock-on effect has slowed house sales throughout the whole property market.

January’s mortgage lending figures confirm that there has been a serious reduction in general mortgage lending. Only 28,500 loans were granted in January according to the Council of Mortgage Lenders.

An increase in bank rates is likely to further stifle any potential housing market recovery that might happen this year, and it is almost certain that interest rates will rise during 2011.

All this means that lenders have very few market sectors that they can lend to with any confidence. But people still need somewhere to live and the private rented sector looks set to benefit from a significant increase in demand from people looking for a home. This increase in demand makes lenders more confident about lending to the private rented sector.

With more lenders offering an increasing number of Buy-to-Let loans now may be the right time for landlords to think about buying more property or re-mortgaging existing property. For the first time since 2008 85% loan to value mortgages are now available. Landlords who require a lower loan to value have even more choice.

Now is the time for landlords to start reviewing their existing loans and to start considering increasing their portfolios.

Whilst it is true that obtaining any loan is still difficult, it is no longer impossible. The landlords who act first are likely to be the biggest winners.

NetRent Mortgages are independent Buy-to-Let specialists with access to the whole market – plus many exclusive mortgages. We charge no broker fees on Buy-to-Let mortgages.

You can view the entire Buy-to-Let mortgage range on-line, simply click here NetRent Mortgages.

If you would prefer to speak to someone please telephone 029 2069 5466 or email info@netrentmortgages.co.uk

Sunday 13 March 2011

Study Reveals How Superfast Broadband Could Boost Rents

Landlords who provide fast broadband are likely to get higher rents a survey has indicated.

A study by website ISP Preview has found that fast broadband speed is becoming crucial to the saleability of a house. Nearly 74% said that broadband was 'Crucially Important' to their home life and just 1.7% admitted that it was 'Not Important'.

There is every reason to assume that fast broadband is just as important to people looking to rent. Nearly 50% of people in the survey were actually willing to pay more for a house with fast broadband. Well over one third said they would pay more for a hotel room with fast broadband.

Clearly access to fast broadband is crucial to a significant and growing number of people. Landlords who recognise this trend are likely to command the highest rents.

Click here to read the full article Study Reveals How Superfast Broadband Could Boost Rents

Friday 11 March 2011

The latest issue of Edinburgh Council's Inside Letting is now available

We are very pleased to let you know that the latest issue of Edinburgh Council's excellent Inside Letting is now available on-line.

In the latest issue Edinburgh publish details of the forthcoming Tenancy Deposit Scheme. They also bring you news of the Government's clampdown on party flats and their consultation on right to adapt legislation.

We strongly recommend this publication to landlords and agents, especially if you have property in Scotland.

Please click here Issue 25 of Inside Letting

Thursday 10 March 2011

Landlords call for housing benefit payment reform

The Residential Landlords Association (RLA) wants MPs to allow tenants to decide who their housing benefits are paid to.

The government’s Welfare Reform Bill is now in its debating stage and the RLA wants MPs to allow tenants to have their housing benefit paid directly to the landlord if they so choose.

It claims that research previously commissioned by Shelter has suggested that of those tenants who would like their benefits paid to their landlord, 95% are struggling to manage their own finances. Despite this, they are denied the ability to make a choice for themselves.

Click here to read the full article Landlords call for housing benefit payment reform

NetRent Comment

NetRent completely support the RLA in this matter. In landlord meeting all over the country Housing Benefit has consistently been a cause of concern and anger for landlords. Huge numbers of letting agents refuse to even deal with DSS clients because of the hassle involved. None of this does anything to help people find a decent place to live.

Local Authorities understand the problem but can do little or nothing to relieve it. In short the current system is a mess. It's almost as if it was designed to penalise everyone involved, tenants, landlords and councils alike. There is no justification for allowing this situation to remain a moment longer. We call on the Government to act now to end this farce.

Wednesday 9 March 2011

NALS to launch kitemark scheme

The National Approved Lettings Scheme plans to pick up the batten dropped by Sir Bryan Carsberg, when he published his Review of Residential Property in 2008, by launching a kitemark scheme for lettings agents.

The scheme which is yet to be named, aims to help lettings agents reassure tenants that their deposits and rents are protected should they go bust. It has been devised by a steering committee comprising Foxtons, Winkworth, Belvoir Lettings, Northwood, Spicerhaart, Touchstone, Bushells, Young London and Linley & Simpson.

Nick Cooper, managing director of Northwood and chair of the committee, says: “Those agents within existing CMP schemes and who have fully compliant client accounting standards want to root out the unscrupulous operators who tarnish the reputation of the sector. The group believes, as many other firms do, that the Industry needs to find a more effective way to communicate to consumers the benefits of using agents who have CMP and the protection that this will afford them.

Click here to read the full story NALS to launch kitemark scheme

NetRent Comment

A national scheme to protect tenant deposits lodged through letting agents is long overdue. This committee needs to act quickly to get this scheme up and running as quickly as possible. Many landlords have told us that they have lost faith in letting agents handling deposits and far too many landlords have lost considerable sums since the deposit protection schemes were introduced.

Tuesday 8 March 2011

Landlord pays £27,000 for breaches after tenants' lucky escape

A landlord has been ordered to pay £20,000 in fines after a fire caused his tenants to flee the property for their lives.

Hitesh Mashru pleaded guilty to four breaches of the Fire Safety Order last week (28 February) at Watford Magistrates Court.

He was also ordered to pay £7,394.58 in costs for the breaches, which took place at 39 High Street, Bushey.

Monday 7 March 2011

How the mortgage crisis is allowing landlords to push up rental rates

Cash-strapped adults who can't afford to get on the property ladder are being hit by rapidly rising rents, research has shown.

Strong tenant demand and a shortage of available properties are driving up prices.

And with fewer lenders giving out mortgages, the issue will only get worse as more and more find themselves needing to rent.

Forty per cent more surveyors reported increases in rents during the three months to the end of January than those who didn't, the highest level recorded by the Royal Institution of Chartered Surveyors since it first began the survey in 1998.

Click here to read the full article How the mortgage crisis is allowing landlords to push up rental rates

NetRent Comment

We have been making these points for some time now. The problems the housing market faces will simply lead to yet more house price inflation in the future. There is already a build up of latent demand from people who cannot buy or move. On top of that builders are not building nearly enough houses. All these factors lead to a bottleneck of demand that will eventually be released, pushing house values up. Meanwhile, there will be a short to medium term gain by landlords.

It is a crazy situation that we have seen several times before.

Friday 4 March 2011

The Top Ten Buy-to-Let Mortgages

Every fortnight NetRent Mortgages publish a list of the Top 10 Buy-to-Let mortgages. There are now a range of 75% loan to value products available and the first 80% loan to value products have been launched.

NetRent Mortgages are independent buy-to-let specialists. This means that through NetRent Mortgages you have access to every available buy-to-let mortgage and re-mortgage. What makes NetRent Mortgages different is that we do not charge broker fees on any buy-to-let mortgage or re-mortgage.

NetRent Mortgages can also offer you independent commercial mortgages.

For more information please click here NetRent Mortgages or telephone 029 2069 5466

Wednesday 2 March 2011

Consumer Watchdog wants Ratings Website for Landlords

Consumer watchdog Consumer Focus has called for a Ratings Website for Private Landlords, a website where tenants can post their views and comments about their landlord.

Their report called ‘Opening the door’ starts with the provocative statement ‘The private rented sector generates more complaints than almost any other’. They go on to say that ‘Almost nine in ten renters agree that a website to share experiences of landlords would help them to make better decisions before signing a tenancy agreement.’

To back up their argument Consumer Focus states that their ‘research shows that over a quarter of renters had cause to complain in the past two years, making the private rented sector the second most complained about market.’

Unsurprisingly the Shelter Chief Executive Campbell Robb praised Consumer Focus and said ‘The findings echo complaints we hear every day from private tenants’. Landlords may remember the Shelter campaign from last September called Evict Rogue Landlords which was so one-sided it failed to mention that there might be rogue tenants.

NetRent do not believe that a rating website for landlords will work. If such a website was launched landlords would almost certainly want a rival tenant rating website and all that would happen is that the two sides would become even more polarised.

In their report Consumer Focus also called for widespread introduction of landlord accreditation and called on landlord and tenant bodies including landlord associations and others to work together to offer a nationwide accreditation scheme.

NetRent fully support landlord accreditation but we do not believe that bodies like the NLA and the RLA are the right organisations to offer accreditation. Landlord associations have a vital role to play in the future of the private rented sector but they should exist to promote the aims and aspirations of landlords, not to act as industry regulators.

In our opinion the only possible regulators are local authorities. It is their role to ensure that the private rented sector is correctly run and that landlords are correctly policed. The problem is that local authorities are under huge financial pressure and many are seriously cutting back their landlord liaison activities. No local authority has yet found a method of self funding landlord liaison and so they will always be vulnerable to cutbacks or closure.

This has lead to some local authorities handing over the control and running of their accreditation schemes to landlord associations or other landlord bodies.

It cannot be right that some local authority accreditation schemes now require a landlord to join the landlord association that runs the scheme before they can become accredited. Local authorities should run landlord accreditation schemes and not act as recruitment agencies for landlord associations.

The ills of this industry are created by bad landlords and bad tenants and by the lack of effective regulation and policing. A website that allows landlords and tenants to bitch at each other is not the answer. The answer to landlord regulation lies in the effective enforcement of the 70+ pieces of legislation that already apply to landlords.

The answer to regulation of tenants is more complex but what is wrong with the concept of tenant accreditation? Some local authorities already offer a tenant accreditation scheme but the Consumer Focus report does not even mention this. It would be very interesting to hear their views on damage to property caused by some tenants. What about loss of income to landlords by tenants who do not pay their rent? Currently 11% of tenants are in arrears with their rent and yet neither Consumer Focus nor Shelter feels the need to mention this let alone explain the impact on landlords and the industry as a whole.

This industry deserves something far better and more considered than a landlord rating website and it certainly deserves more than another headline grabbing report that is just another one-sided attack on landlords.

To view the Consumer Focus report click here Consumer Watchdog wants Ratings Website for Landlords

If you want to comment on this article please click here The NetRent Forum