UK Real Estate RSS News Feeds

UK Property Portal News: Downsizing is not a decision which should be taken lightly

Tue, 03 Apr 2012 11:43:28 +0100

Choosing to downsize after the children have flown the nest or because the property is getting to difficult to manage in older age isn't something which should be taken lightly.

Amanda Fyfe, director of SeniorMoves.co.uk, believes that older people should not be rushed into a decision on whether to move or not, but she does admit to being concerned about the large number of people who leave it too late.

She feels that doing it correctly involves talking extensively with family members and seeking out reputable estate agents who will be able to advise on the right kind of property for their needs.

"If they choose to move to be nearer to family or if they are starting to worry about their health, the biggest thing I would say to anyone is to make that decision early enough to be able to build a life for yourself where you're moving to," Ms Fyfe added.

The Association of Residential Letting Agents (ARLA) said recently that the people looking to downsize should consider the option of renting out their home rather than selling it because good rental yields at present could also provide them with an income.

UK Property Portal News

Landlord and Tenant News: Five things every tenant should know

Thu, 29 Mar 2012 08:50:30 +0100

The Association of Residential Lettings Agents (ARLA) have this week issued a list of handy tips which people looking to rent a home for the first time should take into consideration.

At present there are more people looking to rent than there is stock and demand is continuing to grow. Indeed, 55 per cent of ARLA members have reported a surplus of potential tenants on their books.

This means that in many parts of the country there is severe competition amongst would-be tenants for any property which becomes available.

But ARLA's operations manager Ian Potter has warned that people should not rush into tenancy agreements without first being aware of a few key points.

He said: "First time tenants - young or old - should remember to keep the process as focused and simple as possible. Keeping to some simple guidelines can help tenants navigate the process from property hunting to signing a tenancy agreement."

ARLA's tips are as follows:

1.     Research your desired postcode: Find out all you can about average rental prices in your desired area to avoid any surprises. A letting agent will be able to give you a better idea of what is available within your budget range.

2.     Look at approved letting agencies: The rental industry is not subject to any government legislation, meaning that anyone can set up as a letting agent or landlord. For peace of mind, you should seek advice from a letting agent which is part of a professional organisation like ARLA.

3.     Deposit security: It is a legal requirement that the landlord or lettings agent protects the deposit through a tenancy deposit scheme, such as the TDS, which guards against possible misappropriation of monies. Ensure that this is done.

4.     Make an inventory: A well prepared, detailed inventory helps in reaching fair decisions with your landlord at the end of your tenancy. Make sure that you check the inventory given to you thoroughly.

5.     Understand the tenancy agreement: Many shared tenancies contain a joint liability clause and this means you are responsible for the actions of your co-tenants for the duration of the tenancy. This includes covering their share of the rent if they were to unexpectedly move out or not pay.

Mark Durban, senior lettings negotiator at Paramount Properties, advised: “ARLA’s tips are very useful of course and indeed all tenants should adhere to the points.

"However, tenants can now go one stage further and read reviews of the estate agents they are dealing with on the All Agents website. By doing this, tenants will quickly realise which letting agents provide the best overall experience when the need to find a property arises. Moreover, excellent customer service, such a topical buzzword in these challenging times, will also provide a focus for tenants.

"At Paramount we have attained an outstanding and consistent level of customer service across all areas of the letting process and this extends long into the tenancy when management queries arise.

"We are proud of what we have achieved - it has taken many years to get to this point - but now we are here we want to stay at the top!”

Landlord and Tenant News: Long distance landlords on the rise

Fri, 09 Mar 2012 12:06:13 +0000

A new study shows that there is growing culture of long distance landlords in the UK at present.

According to the Association of Residential Lettings Agents (ARLA) there are almost twice as many rented properties in central London than there are landlords which themselves reside in the capital.

Long distance landlords are also prevalent in Scotland, where there are 1.74 rented properties for every one landlord living in the country.

In contrast, the South East and South West has the least long distance landlords, with ratios of one in 1.13 and one in 1.18 respectively.

ARLA Operations Manager, Ian Potter said: "It is a common phenomenon for landlords to let properties in different parts of the country and it is likely that trend will grow, for example as owners increasingly opt to let out a property rather than sell when the time comes to move on."

He added that anyone who owns property away from their home town or city needs to bear in the mind the challenges which can come in managing a long distance relationship with a tenant.

Landlord and Tenant News: ARLA call on chancellor to boost rental market

Tue, 06 Mar 2012 13:36:21 +0000

The Association of Residential Lettings Agents (ARLA) has said that the upcoming Budget is an "open goal" for chancellor George Osborne to encourage more investment into the Private Rental Sector (PRS).

In a Budget submission, ARLA has called up on Mr Osborne to support growth in the sector by helping to remove some of the barriers which prevent more people becoming professional landlords.

Ian Potter, operations manager for the body, said that landlords should now be seen as "entrepreneurial businesses" and helping to support them extending their portfolios will also provide a significant boost to the UK economy.

He added: "Demand for private rented housing continues to grow, with 3.4 million tenants living in the private rented sector - an increase of over one million tenants since 2005. The tax system can be used by the government to incentivise investment in housing stock in the PRS, and therefore improve the conditions in which those 3.4 million tenants live."

Proposals put forwards by ARLA include treating rental property as businesses for Capital Gains Tax purposes, re-introducing roll over relief for landlords looking to invest, and re-assessing the current stamp duty structure.

ARLA News: Demand for rental property presents opportunities to potential landlords

Fri, 02 Mar 2012 11:26:24 +0000

Demand from potential tenants for suitable properties is far outstripping demand, according to a new study by the Association of Residential Lettings Agents (ARLA).

Some 55 per cent of lettings agents questioned said that they had more people coming through their doors looking for rental homes than they have properties on the books.

Ian Potter, operations manager of ARLA, said that this demand represents a serious opportunity for people looking to invest in the buy to let market and a growing number of first time landlords is expected to be seen this year.

However, letting out a property can be a complicated and daunting thing, so he warned that a move into the market isn’t something which should be done on a whim.

"Making sure that your investment pays off takes hard work and commitment, but can be rewarding in the long term,” he said.

“If you're a first time landlord, it's crucial that you look for a licensed local agent to promote your property, and potentially also manage it."

Landlord and tenant news: 2012 will be boom time for landlords

Thu, 02 Feb 2012 10:47:49 +0000

This year will be boom time for landlords, according to specialist buy-to-let lender Paragon.

A new survey conducted by the firm found that demand for properties is flourishing, with 56 per cent of landlords saying they are expecting a rise in interest from potential tenants.

Just six per cent said they could see a decline in demand.

Nigel Terrington, chief executive of Paragon Group, said that the numbers were far from surprising considering the way in which demand shot up last year.

But demand is not the only reason he says landlords should feel confident about the market. A rise in available mortgages allowed more landlords to invest in their portfolios.

“I believe that the foundations that we laid as a sector in 2011 will allow lenders and landlords to continue to do business, in particular if we see a greater level of product innovation,” he said.

“We should look to 2012 with optimism as it is sure to bring further opportunities."

And it isn’t just landlords that have reason to feel optimistic, Building Societies Association (BSA) said recently that consumers should see more reasons to be confident about purchasing a home in 2012.

Landlord and tenant news: Accidental landlords on rise still

Mon, 09 Jan 2012 16:50:02 +0000

New figures from the Association of Residential Lettings Agents (ARLA) show that the number of accidental landlords is rising in many parts of the country.

Due to rising home values and the current economical climate, many people are finding that selling a home is difficult and are instead turning to letting their property as a way of moving on.

During the third quarter of 2011, some 47 per cent of ARLA members reported an increase in the number of ‘unplanned’ lettings

The north-west and north-east were where most respondents stated an increase (67 per cent and 62 per cent respectively). In contrast, Central London had the lowest figure at 17 per cent.

"Letting a property is an excellent way of generating consistent income from your property, if the correct approach is adopted by prospective landlords," said ARLA president Tim Hyatt.

He advised that anyone looking to let a property for the first time should seek the services of a professional lettings agent.

The figures back up the Residential Landlords Associations’ claim that 2012 will be “the year of the accidental landlord”.

Health and safety issues for landlords: Take precautions over winter, says ARLA

Tue, 03 Jan 2012 14:18:03 +0000

Landlords have been urged to make managing their properties a key health and safety priority over the winter months.

The Association of Residential Letting Agents (ARLA) said burst pipes and damage to property can cause misery to both tenants and landlords, making preparation essential.

It has been unseasonably warm in recent months but the past few days have seen adverse weather sweep across the UK with storms and heavy rain causing property damage.

Temperatures could also drop, raising the risk of pipes bursting and wreaking havoc.

According to ARLA, simple steps such as lagging exposed pipes could prevent the escape of water and the damage and misery that can cause.

Before high winds and stormy weather hits, ARLA recommends:

Checking the condition of roofs, in particular garage shed and flat roofs for signs of wear and tear

Keeping gutters, gullies and drains clear so they can carry water away quickly and efficiently

Ensuring drainpipes do not get blocked with trapped rainwater as this may cause them to crack or shatter in freezing conditions

Consider cutting back low-hanging tree branches, which could cause damage in high winds

Landlord and tenant news: Could 2012 be the year of the accidental landlord?

Tue, 03 Jan 2012 09:28:54 +0000

The new year could bring the kind of market that many accidental landlords have been waiting for.

With home values estimated to rise further in 2012, Alan Ward, chairman at the Residential Landlords Association (RLA), believes that the time to sell up as originally planned will have finally come.

An accidental landlord is someone who has opted to rent out their existing home when looking to move because trying to sell it would hold back their journey up the property ladder (officially termed let-to-buy in the mortgage industry).

"There is a sector of the market that is likely to come to sell as property values begin to increase - these are the accidental landlords who have been forced to rent because they can't sell for whatever reason," he said.

"Some people say there are 100,000 properties in that sector and, if that comes back on the market, then that is quite a big change."

The Association of Residential Lettings Agents recently advised anyone considering a move into the rental market to consider the benefits of using a professional letting agent.

London Rental Property News: December is a good month for renters

Tue, 20 Dec 2011 17:16:00 +0000

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.

Residential Landlords News: Look at legalities before letting out home

Mon, 03 Oct 2011 13:42:24 +0100

People who become accidental landlords in London need to look carefully at the legal aspects of letting out their home to renters.

This is the opinion of Ian Potter, operations manager at the Association of Residential Letting Agents (Arla), who noted that both parties need to have everything covered in a legal tenancy agreement.

"The terms and conditions of a letting agent to let out your property can be 20 odd pages long. A tenancy agreement is probably going to be in excess of 15 pages long, so people are going in to legally binding contracts both with an agent or with a tenant," he explained.

"That's the key thing that people need to realise: that they are actually entering a legally binding contract."

Letters should also consider taking out landlord insurance, as a regular home insurance policy might not pay out on claims made if the insurer was unaware that tenants were living in the same property.

Residential Landlords News

Landlord and Tenant News: Landlords 'will have to improve energy efficiency of properties'

Thu, 29 Sep 2011 14:10:26 +0100

Landlords might have to embark on a programme of investment in order to bring their lettings portfolio up to scratch in terms of energy efficiency.

According to research from the Association of Residential Letting Agents (ARLA), more than one in three (35 per cent) of landlords in the UK do not know the energy performance of their rental properties.

Less than a fifth (17 per cent) could hazard a guess that their residences would be classified as the F & G band of the Energy Performance Certificate, despite government plans to make it unlawful to rent out energy efficient homes from 2018.

The organisation's figures showed this proportion of homes in the lowest energy efficiency ranking has not changed since the previous quarter

Ian Potter, ARLA's operations manager, pointed out: "The clock is ticking for the private rented sector (PRS) to improve its environmental performance but the investment just isn't there to ensure that this change takes place in the government's timeframe.

"ARLA has campaigned for the government to incentivise - through tax relief - the improvement of rental properties. Otherwise it is going to be exceedingly difficult for the majority of landlords to find the funds to improve stock."

The government's Green Deal is set to come into effect next autumn, so landlords will be able to access funds through the initiative to improve their property to rent in London.

However, ARLA warns that tenants may react badly to discovering that they have to make an extra payment on top of their energy bills.

"The issues of fuel poverty among too many of the UK's households has been raised again as we approach winter," Mr Potter noted.

"We urge the government to ensure that the Green Deal is an effective solution to the crisis we will face unless the energy efficiency standards in the PRS and the UK housing stock in general can be improved."

Landlord and Tenant News

London Rental Property News: Tenants 'have the right to switch energy supplier'

Wed, 21 Sep 2011 15:12:17 +0100

Tenants living in property to rent in Maida Vale, London, may not realise that they have the right to switch energy providers if they want to save money on their utility bills.

According to Thisismoney.co.uk, many rental tenants are put off from changing their gas and electricity supplier for a number of reasons, including being deterred by the terms in their contract.

However, the Office of Fair Trading has stated that tenants who pay their own energy bills have the right to choose a supplier, although it is expected that they will inform their landlord of their decision and move the account back to the original provider at the end of their tenancy.

Ian Potter, director of operations at the Association of Residential Letting Agents, told the website: "The rule is in place to protect landlords from tenants who change supplier and then don't deal with the final bill after leaving the property.

"It's a grey area but in theory it will protect both parties and renters shouldn't be deterred from asking their landlord if they can switch."

London Rental Property News

London Property to Rent: Undersupply of rental homes in London 'will continue in the short-term'

Fri, 15 Jul 2011 16:50:22 +0100

Owners of property to rent in London could be in for a treat because of the lack of rental homes currently in the market.

According to Chris Horne, editor of Property Hawk, the rising number of people choosing to rent means there is an undersupply of properties.

"The problem - in terms of the amount of money invested into the area to fill the gap as more tenants are seeking rental properties - is obviously [the lack of] finance," he pointed out.

"The high cost of borrowing money relative to interest rates still means that it is expensive for landlords to buy more property."

However, when the restrictions on buy to let funding are lifted, landlords will slowly "plug the gap" and bring more rental properties to the market.

Mr Horne's comments came in light of research from the Association of Residential Letting Agents showing that eight in ten (82 per cent) of its members had reported seeing more prospective tenants than available properties in London in the second quarter of this year.

London Property to Rent

London Property to Rent: Lack of good quality rental homes 'affecting market'

Wed, 13 Jul 2011 12:09:48 +0100

Investors in property to rent in London should make sure their rental homes are of good quality, as a lack of decent houses is threatening the rental market.

This is the finding of research from the Association of Residential Letting Agents (ARLA), which also found the imbalance of supply and demand is ongoing.

Operations manager Ian Potter commented: "As many parties are reporting, there is a clear shortage of homes to buy in the UK.

"Faced with this, many people are turning to rental homes as a more flexible option than buying; yet as our research highlights that the dearth of properties is just as real in the private rented sector (PRS), and is showing no signs of improvement," he pointed out.

Mr Potter called on the government to come up with ways of incentivising investment in the PRS to ensure more properties are available to rent.

The ARLA research also found properties in west London are seeing rental rates increasing by in excess of 12 per cent due to demand.

Senior lettings negotiator Mark Durban of Paramount noted: "Paramount, like most other agents, is experiencing increased tenant demand but is suffering from a shortage of affordable one and two-bedroom rental properties.

"Rents are up by at least eight to 11 per cent in the NW6 area - therefore any government incentive to stimulate the PRS can only be seen as a positive," he added.

London Property to Rent

Residential Landlords News: Tips for landlords moving overseas

Mon, 27 Jun 2011 16:59:21 +0100

Homeowners who are moving abroad to become off shore landlords with property in London have been given advice about how to let out their house by the Association of Residential Letting Agents (Arla).

The organisation suggested prospective overseas landlords leave themselves plenty of time to let their home before they take the plunge and move away, as the process of finding a tenant could take at least six months.

Would-be expats should also leave their home furnished to a high standard, as this could ensure a steady stream of tenants, while leaving behind some of the larger pieces of furniture can save movers money on their shipping costs.

Additionally, bringing in the services of a London property management firm could help landlords achieve peace of mind when they are in another country.

Ian Potter, operations manager at Arla, commented: "Using a professional letting agent and following our advice should make sure anyone about to embark on a new life overseas can be safe in the knowledge that their UK property is in good hands."

Residential Landlords News

London Property to Rent: To Let signs 'are still useful in internet age'

Tue, 29 Mar 2011 14:04:59 +0100

People looking for property to rent in London or other parts of the UK still find To Let boards useful.

According to Ian Potter, operations manager at the Association of Residential Letting Agents, the signs erected outside homes that have been put on the market serve a useful purpose.

"Boards are still an effective means of raising brand awareness for an agent," he noted.

"An agent with boards in an area, then being able to demonstrate success is likely to be able to gain new instructions."

And while many prospective tenants and buyers use the internet to find their perfect property, they will still want to see the area and the available residence, so To Let and For Sale boards work as a "signpost", Mr Potter added.

His remarks come after the Lincolnshire Echo reported that police in Lincoln have asked estate agents not to put up signs next to their properties after burglars targeted premises and stole copper boilers and pipes.

London Property to Rent

London Property to Rent: Rental demand 'will outstrip supply into 2012'

Fri, 04 Mar 2011 15:33:43 +0000

The next couple of years will see strong demand for property to rent in London and other places, which will continue to outstrip supply.

This is the opinion of Chris Horne, editor at Property Hawk, who said: "Ultimately, first time buyers are still struggling to get finance and also because of the economy. There is quite a lot of uncertainty in terms of people's jobs so people tend to rent when they are not absolutely certain about the future, rather than committing to buying."

He explained: "With mortgage finance still quite difficult to get, I would imagine there is still strong rental demand," adding there is no surprise that the Association of Residential Letting Agents (Arla) is forecasting an increase.

Arla's research concluded that four in ten of its offices believe more private landlords will enter the market in the next 12 months, which will help tackle the short supply of rental properties.

London Property to Rent

Residential Landlords News: ARLA offers top tips for energy efficiency

Wed, 09 Feb 2011 12:38:13 +0000

Property owners with landlord licences have been offered a list of tips to improve the energy efficiency of their rental homes.

The Association of Residential Letting Agents (ARLA) recommends fitting cavity wall and floor insulation, which can play a significant role in conserving heat and thus cutting down on excessive energy bills and carbon emissions.

Lagging around water pipes and boilers can also cut down on wasted heat and will prevent pipes freezing in the winter, which could save time and money in pursuing a claim through landlord insurance if the heating system breaks down.

ARLA advises landlords to invest in draught-proofing doors and windows to stop heat escaping the property, while installing a thermostat on the boiler can ensure the heating is automatically switched off once it reaches a certain temperature.

Ian Potter, operations manager at the organisation, commented: "Landlords can already take advantage of a tax allowance of up to £1,500 for these energy efficiency improvements through the Landlord's Energy Saving Allowance.

"It makes sense therefore for landlords to carry out these improvements straight away, as considerable cost savings can be made," he added.

Residential Landlords News

Residential Landlords News: Landlords 'could lower rent in areas with decreased demand'

Mon, 17 Jan 2011 11:57:10 +0000

Those with landlord licences living in areas with low levels of demand could consider reducing their rental rate, LettingZone has suggested.

This is the advice from Mark Garner, founder of the organisation, who responded to research from the Association of Residential Letting Agents (ARLA).

ARLA's study found there is an increasing number of tenants who are finding it difficult to meet rent agreements, although this was not seen so much for property to rent in London.

Mr Garner offered landlords some advice to ensure they are not struggling to pay the mortgage after a tenant defaults on the rent.

"Always do a full credit check before you take a tenant and I suggest you take out a rent guarantee insurance product before they move in which will cover you if your tenant stops paying their rent," he said.

Meanwhile, research from Upad has found that 63 per cent of residential landlords are more confident this month than they were in December 2010.

Residential Landlords News