Monday, 26 March 2012
Cost of Buying Is Cheaper than Renting in 84% of Towns in UK
London Letting Agents Blog: Cost of Buying Is Cheaper than Renting in 84% of T...: The cost of buying a home (as opposed to renting) is cheaper in 84% of towns and cities in the UK, according to Zoopla. Swansea, Oldham an...
Thursday, 1 March 2012
Ancestry Website Compares UK Households
Barnes Flats & Houses For Sale & Rent: Ancestry Website Compares UK Households: Ancestry.co.uk has been comparing statistics for the make up of UK Households for the Victorian era and the present day. The report noted that the number of UK households that have taken in a lodger to help meet monthly outgoings now stands at nearly a million compared to 933,000 in the 1850s.
Monday, 20 February 2012
ARLA Warns Landlords of Need for Comprehensive Inventory
As tenants are staying in rented properties for longer, landlords are being warned that they must ensure that everything is in place when the agreement starts of risk hefty costs in the future.Recent figures from the Association of Residential Lettings Agents (ARLA) shows that tenants are staying put for an average length of 19.3 months, an increase of 17 per cent on the previous recorded length of 16.5 months.
With this in mind ARLA is calling on both landlords and tenants to draw up a comprehensive inventory at the start of each letting agreement so that they both know what is what in the property. Landlords and tenants alike should remember that disputes over deposit returns can be one of the biggest headaches facing both parties, but these can be easily avoided if a professional inventory is prepared.
ARLA recommended that both landlords and tenants should speak to a professional lettings agent about the best way of putting an inventory together.
There may be a charge when drawing the inventory up and this, as it is for the benefit of both parties, should be paid for equally by the tenant and the landlord.Other advice given by ARLA is to take pictures of the property’s condition to provide evidence in the event of any dispute and to check utility readings to ensure that there are no issues over the size of bills.
And it seems there are set to be more landlords coming into the market this year as the Council of Mortgage Lenders (CML) recently confirmed that number of mortgage approvals for buy to let products is on the rise after increasing by 84,000 in 2011.
Landlord and Tenant News
With this in mind ARLA is calling on both landlords and tenants to draw up a comprehensive inventory at the start of each letting agreement so that they both know what is what in the property. Landlords and tenants alike should remember that disputes over deposit returns can be one of the biggest headaches facing both parties, but these can be easily avoided if a professional inventory is prepared.
ARLA recommended that both landlords and tenants should speak to a professional lettings agent about the best way of putting an inventory together.
There may be a charge when drawing the inventory up and this, as it is for the benefit of both parties, should be paid for equally by the tenant and the landlord.Other advice given by ARLA is to take pictures of the property’s condition to provide evidence in the event of any dispute and to check utility readings to ensure that there are no issues over the size of bills.
And it seems there are set to be more landlords coming into the market this year as the Council of Mortgage Lenders (CML) recently confirmed that number of mortgage approvals for buy to let products is on the rise after increasing by 84,000 in 2011.
Landlord and Tenant News
Sunday, 29 January 2012
Monthly Rents for Up Front Business Premises
Commercial landlords who let their premises to retailers should allow their tenants to move to a month-by-month payment system.
This is according to the British Retail Consortium (BRC), who believe that scrapping the tried and tested quarterly payments system would help businesses manage their finances better, particularly in the months following on from Christmas.
Sarah Cordey, spokeswoman for the BRC, explained: “A large number of landlords still operate on a quarterly basis when it comes to collecting rent up-front for business premises.
“The quarterly rent payment date fell just after Christmas, so again, where companies had not had a Christmas that made up for 2011, they would also in some cases have been faced for a bill for three months in advance, which obviously poses cash flow challenges to any business.”
She added that in her opinion a quarterly rental agreement is an “anachronism” in this day and age due to the speed in which direct bank payments can be made and called for landlords to be more flexible with retailers who are feeling the pinch.
Despite the current economic climate, figures from the Office for National Statistics show that retail sales rose by 2.6 per cent year-on-year in December.
However, several high street chains, such as Peacocks and La Senza, have recently been forced into administration.
London Commercial Property News
This is according to the British Retail Consortium (BRC), who believe that scrapping the tried and tested quarterly payments system would help businesses manage their finances better, particularly in the months following on from Christmas.
Sarah Cordey, spokeswoman for the BRC, explained: “A large number of landlords still operate on a quarterly basis when it comes to collecting rent up-front for business premises.
“The quarterly rent payment date fell just after Christmas, so again, where companies had not had a Christmas that made up for 2011, they would also in some cases have been faced for a bill for three months in advance, which obviously poses cash flow challenges to any business.”
She added that in her opinion a quarterly rental agreement is an “anachronism” in this day and age due to the speed in which direct bank payments can be made and called for landlords to be more flexible with retailers who are feeling the pinch.
Despite the current economic climate, figures from the Office for National Statistics show that retail sales rose by 2.6 per cent year-on-year in December.
However, several high street chains, such as Peacocks and La Senza, have recently been forced into administration.
London Commercial Property News
Thursday, 12 January 2012
Mortgage Rate and Home Loan News
Halifax has announced plans to help first-time buyers get a foot on the property ladder with a new fee-free mortgage.
The home loan, which lasts for two years and has a fixed interest rate of 5.99 per cent over this period is available to those with a deposit of between ten and 15 per cent of their new home's value.
With mortgage fees typically adding up to around £995 the loan is certain to seem attractive to first-time buyers looking to save a bit of cash.
For the bank's current account customers there will be an additional £150 cash-back bonus on completion of the mortgage.
"Buying a house has always been an expensive process and for first-time buyers every bit of help counts," commented Halifax's mortgage director Stephen Noakes.
Last month, Leeds Building Society also offered a helping hand to first-time buyers in the form of a mortgage with a five-year fixed rate at 4.94 per cent with 95 per cent loan-to-value.
Mortgage Rate and Home Loan News
The home loan, which lasts for two years and has a fixed interest rate of 5.99 per cent over this period is available to those with a deposit of between ten and 15 per cent of their new home's value.
With mortgage fees typically adding up to around £995 the loan is certain to seem attractive to first-time buyers looking to save a bit of cash.
For the bank's current account customers there will be an additional £150 cash-back bonus on completion of the mortgage.
"Buying a house has always been an expensive process and for first-time buyers every bit of help counts," commented Halifax's mortgage director Stephen Noakes.
Last month, Leeds Building Society also offered a helping hand to first-time buyers in the form of a mortgage with a five-year fixed rate at 4.94 per cent with 95 per cent loan-to-value.
Mortgage Rate and Home Loan News
Friday, 23 December 2011
Annual Dip In Monthly Rents; Opportunities for Potential Tenants
December is a great month for people to find a rental property, claims one specialist.Property analyst Samantha Baden of Find a Property claims that monthly rents have dipped in the past month and that provides a wealth of opportunity for people looking to rent a new home.
Since the winter of 2008, rental prices have experienced a minor lull in the last two months of the year before rising again in the new year."This temporary dip in asking prices won't last long, and it's a great opportunity for potential tenants to agree a rate that's favourable in comparison to the rest of the year," she stated.
Overall UK rental prices fell by 1.5 per cent during November. The East Midlands, however, felt the highest fall, with prices dripping by 4.8 per cent.
Despite this the private rental market will remain strong well into 2012 according to the Residential LandlordsAssociation because there is currently not enough properties available to meet demand.
London Rental Property News
Friday, 9 December 2011
Report on 'Investing in the Private Rented Sector: Landlord Returns, Taxation and the Future of the Private Rented Sector'
The RLA report that the report on the private rented sector warns that current returns for landlords are very low once costs and inflation are taken into account, despite headline reports of rising rents. This is restricting the amount of new accommodation available to meet increasing demand.
Prepared by Michael Ball, Professor of Urban and Property Economics at the University of Reading, the Report highlights that rents remain significantly below their early 2008 levels, when adjusted for inflation. The Report used a new economic model fed with financial data from over 200 landlords.
Following a survey of landlords' costs and returns, the Report found that present rent levels do not cover landlords' expenses when all factors are taking into account, including refurbishment and borrowing costs, agents' and legal fees, voids and arrears, energy and safety certificates, repairs, depreciation and regulatory compliance.
Additionally the tax burden on the private rented sector is much more than on other types of tenure, averaging £1,000 a dwelling. Sharp real falls in the value of their properties over the past four years have pushed total annual returns for many landlords into negative territory.
Currently, almost 90% of English landlords are private individuals and couples and many residential investors would have been better-off if they had invested their money elsewhere.
The Report warns that the consequences for tenants will be "grim" as they face increasing rents and a chronic shortage of properties. Economic recovery will also be significantly held back by a lack of affordable rental housing. It calls for Government reforms to the taxation and regulatory treatment of the sector to alleviate pressures on rents.
Commenting ahead of the formal launch of his Report today (November 22nd) at the House of Commons at a meeting of the All Party Parliamentary Group for the Private Rented Sector, Professor Ball said:
"There is much hype about the private rented sector at present, but the reality is that landlord returns are generally poor and with a weak economy are likely to stay that way. Investment in the past was driven by rising house prices, now there is a need to rethink taxation and regulation so that rental returns come to the fore at rent levels that are affordable for tenants."
Responding to the report, Alan Ward, Chairman of the Residential Landlords Association commented:
"Professor Ball's report demonstrates clearly that the private rented sector is taken for granted - the returns are only superficially rewarding because few landlords account for the cost of regulation and taxation. Only the lack of an alternative secure investment, and the curse of capital gains tax, prevents many landlords from dis-investing just when more people need private renting because of lack of access to the owner occupied and social rented sectors."
Prepared by Michael Ball, Professor of Urban and Property Economics at the University of Reading, the Report highlights that rents remain significantly below their early 2008 levels, when adjusted for inflation. The Report used a new economic model fed with financial data from over 200 landlords.
Following a survey of landlords' costs and returns, the Report found that present rent levels do not cover landlords' expenses when all factors are taking into account, including refurbishment and borrowing costs, agents' and legal fees, voids and arrears, energy and safety certificates, repairs, depreciation and regulatory compliance.
Additionally the tax burden on the private rented sector is much more than on other types of tenure, averaging £1,000 a dwelling. Sharp real falls in the value of their properties over the past four years have pushed total annual returns for many landlords into negative territory.
Currently, almost 90% of English landlords are private individuals and couples and many residential investors would have been better-off if they had invested their money elsewhere.
The Report warns that the consequences for tenants will be "grim" as they face increasing rents and a chronic shortage of properties. Economic recovery will also be significantly held back by a lack of affordable rental housing. It calls for Government reforms to the taxation and regulatory treatment of the sector to alleviate pressures on rents.
Commenting ahead of the formal launch of his Report today (November 22nd) at the House of Commons at a meeting of the All Party Parliamentary Group for the Private Rented Sector, Professor Ball said:
"There is much hype about the private rented sector at present, but the reality is that landlord returns are generally poor and with a weak economy are likely to stay that way. Investment in the past was driven by rising house prices, now there is a need to rethink taxation and regulation so that rental returns come to the fore at rent levels that are affordable for tenants."
Responding to the report, Alan Ward, Chairman of the Residential Landlords Association commented:
"Professor Ball's report demonstrates clearly that the private rented sector is taken for granted - the returns are only superficially rewarding because few landlords account for the cost of regulation and taxation. Only the lack of an alternative secure investment, and the curse of capital gains tax, prevents many landlords from dis-investing just when more people need private renting because of lack of access to the owner occupied and social rented sectors."
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