New Rental Arrears Recovery Laws

The Government is to introduce a new rental recovery system under changes to the rules governing how bailiffs enforce against debtors.
Regulations will be prepared by the Summer 2013.  The changes will tighten up how bailiffs can act including requiring them to undergo mandatory training and certification.

Many landlords would disagree that the laws on debt collection need tightening arguing that tracing and then collecting unpaid rent is hard enough as it is without curtailing the powers of bailiffs in any way.

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Most Popular BTL Mortgages

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.99% Discount	2 Years	2.5%	£130.00	No	7% APR
80%	4.99% Fixed	Feb 28 2015	£1800	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.1% APR
75%	4.85% Tracker	5 Years	1.75%	£150.00	No	5.5% APR
75%	2.99% Tracker	2 Years	2.5%	£150.00	Free valuation	5.3% APR
75%	4.69% Fixed	May 31 2015	£995	£0.00	No	5% APR
70%	3.79% Fixed	Jan 31 2015	£1749	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.9% APR
65%	3.99% Fixed	Jan 31 2015	0%	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.8% APR
65%	3.79% Fixed	Mar 31 2016	£995	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.6% APR
60%	2.99% Tracker	May 31 2015	£2495	£0.00	No	4.8% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

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Violent Tenants - What Are My Choices?

We recently had an interesting post concerning one landlord who had come into contact with a violent and abusive tenant.  Is there anything that the landlord can do to get them out?  As with most courses of action a landlord should start by reading the primary legislation concerning letting a property with an Assured Shorthold Tenancy.  This is namely the Housing Act 1988 as amended.  This bit of legislation has very kindly been brought up to date by our resident expert Jeffrey Shaw of Nether Edge Law.

Violent & Abusive Tenants
When it comes to abusive tenants as Jeffrey points out the legislation states:

At ground 14 in Schedule 2 to the Housing Act 1988- a (discretionary) s.8 ground for possession against T:

The tenant or a person residing in or visiting the dwelling-house:
(a) has been guilty of conduct causing or likely to cause a nuisance or annoyance to a person residing, visiting or otherwise engaging in a lawful activity in the locality, or
(b) has been convicted of:
(i) using the dwelling-house or allowing it to be used for immoral or illegal purposes, or
(ii) an indictable offence committed in, or in the locality of, the dwelling-house.

The downside of using this part of the housing act is that because it is a s.8 ground for possession the courts have discretion at to whether to grant possession.

Is there anything a landlord can do?  I'd be interested in getting other landlord's views.


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Green Deal Launches TODAY

Landlord looking to make energy efficient improvements to their buy-to-let properties will from today(28.01.13) in theory be able to access the cheap loans to make things like new boilers, insulation and solar panels happen.  There are currently 45 improvements that qualify for the new Green Deal scheme.  We have talked before about some of the threats and opportunities for landlords presented by the Green Deal.  From today we should be able to see these in the raw.

The scheme works with a visit by a Green Deal Assessor who makes a list of recommended improvements to your buy-to-let property (you don't have to accept any or all of them).  The Green Deal Assessor then quotes for the cost of the energy improvement works.  Once you have chosen a Green Deal Provider they will provide the landlord with a Green Deal Plan and the Provider will arrange for a Green Deal installer to do the work.  The costs of the Green Deal energy improvements rather than being paid for up front come in the form of a fixed interest loan where the costs are added to the electricity bill for the home.

Should Landlords Embrace the Green Deal?
All the above sounds great.  For a landlord you get your property improved at no upfront cost and the benefits come to the tenant in the form of a warmer more energy efficient buy-to-let property. In theory the improvements will be cost neutral to the tenant as the extra costs of the loan are offset by cheaper bills.  However, how true will this be?  What happens if the tenant lets for 6 months during the summer.  They will be paying the costs of the loan but given they probably won't be using the heating anyway there will be little or no savings in heating costs.  Will tenants elect for a property without a Green Deal surcharge.  What happens if the property is empty during a void period?  Then the loan cost falls to landlords.  There are many implications for a landlord and tenant presented by the Green Deal and we will be looking at them and landlords experiences over the coming months.

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Laboured Motion on Private Rental Sector

The Private Rented Sector was under debate in Parliament yesterday, with the shadow housing minister, Jack Dromey, accusing the government of failing to fix a "crisis" in the private rented sector.

Droney, sorry Dromey, made a lengthy speech, describing Britain as a country divided between those who own and those who rent their homes, pointing to the "lack of stability, security and affordability for families and other renters" that current tenancies provide.

Labour called a motion to promote longer-term tenancies, create a national register of landlords, and to empower local authorities to deal with rogue landlords.

Housing minister Mark Prisk brought some common sense to Labour's chest pumping rhetoric. Agreeing that more action needs to taken to punish the "small minority" of rogue landlords, but they are not looking to add further "unnecessary costs" to the rental sector.

(I can't believe that Labour is so dumb not to see that any licence costs will be instantly passed on to tenants rents - )

Think tank call for end of 'high rised blocks'

The conservative think-tank Policy Exchange, is calling for the demolition of the high rised blocks knocked up in Britains Cities and the rebuilding of terraced streets in their place. (probably similar to the perfectly good ones that were knocked to build them in the first place).

They report 'high rise' living brings with it increased crime, anti social behaviour and poorer health and educational standards. (I blame the thinner air).

They calculate that if properly planned ( big if ? ) such a scheme could create hundreds of thousands of new homes in London, in addition to those being replaced.  

Calculating that if the 360,000 high rise flats built between 1950 and 1980 in London alone were knocked down they could make way for  600,000 houses and flats.
Providing a surplus development of 260,000 new homes, available to sell to finance the project.

You can download the report here 

Read more in the Telegraph

Read more in the BBC

Read more in the Guardian

Could a referendum save the BTL mortgage

The latest proposal from David Cameron of giving the British people a referendum and a choice on whether we stay in Europe is a welcome development.  Anybody who believes in democracy surely can't object to have an opportunity to give their view.  Lets face it - over the last few years over 50% of the rules governing the way you live you would have had NO opportunity to post your dissent as the laws will have been passed by a load of unelected 'Eurocrats.'

Europes threat to the Buy-to-let mortgage.

We have written previously about the threat from Europe wide legislation on the UK's buy-to-let mortgage.  In fact over 3000 landlords have already signed our petition to save the buy-to-let mortgage. This is a prime example of a one size fits all mentality that is unavoidable in a European superstate.  Good ideas, innovation, variety are all sacrificed at the alter of European uniformity.  The European Union are blindly pursuing a policy of trying to outlaw the UK's buy-to-let mortgage because their mortgage industry is outdated and exists along the lines that if you don't have a massive income already, you shouldn't be allowed to invest your money in property to build a better future for yourself or your family.  I know I write in emotive tones. But in essence without the existence of the buy-to-let mortgage, which allows a landlord to borrow against the strength of the rental income generated by a proposed buy-to-let investment.  I like many other UK landlords on a modest income wouldn't have been able to build up a property portfolio.

European Referendum

Let hope that the proposed European Referendum will come in time to save the UK's buy-to -let mortgage.  Otherwise it will be yet another good idea sacrificed at the alter of European conformity and regulation.

Buy-to-let mortgages - search the market

Most popular BTL mortgages

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.99% Discount	2 Years	2.5%	£130.00	No	7% APR
80%	4.99% Fixed	Feb 28 2015	£1800	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.1% APR
75%	4.39% Fixed	Mar 31 2016	£995	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.7% APR
75%	3.74% Discount	2 Years	£1999	£250.00	No	5.4% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
65%	3.99% Fixed	Mar 31 2016	£995	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.6% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

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Three new exclusive BTL mortgages

Property Hawk Mortgages are now offering three exclusive buy-to-let mortgages with Hinckley & Rugby Building Society. These include a 3.49% 2 year fixed rate and a 2.99% discount up to 75% LTV, and a 2.85% 2 year discount up to 60% LTV. All rates have a flat completion fee and no ERCs.

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

BMV - will people ever learn!

Ever heard of the phrase 'one born every minute'.

I'm afraid that some usncrupulous companies and dare I say it, websites that should really know better continue to bombard landlords with marketing guff promising Below Market Value properties.  I've written in length about the dubious world of Below Market Value  or BMV properties.  Why oh why if they are so cheap and are such brilliant investments would anybody try and sell them on?! 

New landlords be warned.  Us 'long in the tooth' landlords know better to avoid like the plague any packaged BMV opportunities.  It always, always pays to do it yourself.



Landlord Insurance - trusted brokers - professional rates

What makes prices go up?

What makes house prices go up?

Now I'm old enough to remember the last property bust in the early nineties.  Values got ahead of themselves and there was a correction.  However, I also recall that for 2 or 3 years after the initial fall out prices failed to recover despite all the technical indicators pointing to them being cheap.  Technical factors on price and affordability include:

1. Average house price to earnings ratio (specifically first time buyers earnings)
2. Mortgage availability
3. Proportion of income spent on mortgage payments

Even when all these suggest that prices have corrected there is one overriding factor required to propel prices up and that is.....CONFIDENCE.  This is confidence of buyers to spend, confidence of lenders to lend, confidence of surveyors to sign of valuations of residential property.  Until confidence returns which will be a long hard road technical factors remain a interesting irrelevance.

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Savills give there outlook for PRS

Rents across the UK will continue to rise well ahead of inflation over the next five years, as growing numbers of young singles and families remain unable to raise the deposits necessary to access home ownership says global real estate service provider Savills in their forecasts, released today. But, they say, a North South divide will open, reflecting the ability of tenants to afford rent rises. Higher economic and wage growth in the South East, coupled with strongest demand and most limited supply will mean greater increases in London and its commuter belt.

Average rents are expected to rise by 2.5 per cent in 2013 and 18.2 per cent over the next five years, the firm forecasts. The amount of rent paid by the under 35s is forecast to rise by 53 per cent from £24 billion to £37 billion over the period, making this a growing and attractive destination for investment. “This is particularly for those investors seeking long-term income streams, linked to wage growth and underwritten by fundamental human need, says Yolande Barnes, director, Savills world research. “If utilities, water companies and food production appeal to this type of investor, so too should residential property.”

London rents to rise fastest

The growing need for shelter from ‘rentysomethings’, particularly in and around Greater London means that over the mid term, mainstream rents in the capital will outperform both the UK average and even prime central London. Greater London average rents are forecast to rise by 3.0 per cent next year, slightly ahead of the UK average, but will significantly outperform over the next five years, rising by 26.4 per cent.

5 year rental forecasts

Rental Growth	2013	2014	2015	2016	2017	5 years to End 2017
UK Mainstream	2.5%	2.5%	3.0%	4.5%	4.5%	18.2%
Greater London	3.0%	4.0%	4.5%	6.0%	6.5%	26.4%
Prime Central London	3.0%	5.5%	4.5%	4.5%	4.5%	24.0%

Source: Savills Research

Prime central London rents are driven by City sentiment and corporate demand, with strong ties to the health of the FTSE and are more volatile than the city’s mainstream rental market. Growth is expected to be 3.0 per cent in 2013 and 24 per cent by the end of 2017. Prime central London investors will, however, benefit from higher capital value growth over the forecast period.

Rents are taking up a growing percentage of tenant’s income, but this stretched affordability is still within normal bands at a national level, says Savills. Although, in the North, the lack of income growth is limiting the potential for rental growth, the fundamentals of occupier demand and affordability remain sound (though more uncomfortable for tenants) at a national level.

“Different borrowing and demand conditions will reinforce the very varied rental market conditions across the UK and determine the potential for rental growth at a local level,” says Barnes. “Deposit affordability will continue to be the main brake on home ownership levels, fuelling demand for rented accommodation, while income growth will ultimately determine the ability of rents to continue to rise.”

“For investors, the UK’s private rented sector looks an attractive option. Rental growth is a function of constrained deposit affordability and underlying demand for shelter, while recent population trends suggest that demand will continue to increase in coming years. This is especially true for London where the relative strength of the economy and strong international in-migration continue to put upwards pressure on rental values. 

“Indeed, current levels of occupier demand make the private rented sector the only truly fully-functioning market in the UK residential sector. Yields and income in London remain strong by world city standards and make the capital an attractive buy in a global context. This is particularly the case when compared to ‘new world’ cities, such as Shanghai, where the motives of capital investors have driven values way above the underlying growth in rents.

“If rental levels are a good indicator of underlying occupier fundamentals, then low yields can be an indication that capital values are overheating. Given the disparity between the two, there is little chance that this is the case in the UK.

New 3 year fixed rate BTL mortgages

Landlords can now access an exclusive 3 year fixed rate buy-to-let mortgages with Skipton Intermediaries via Property Hawk Mortgages; 

The fixed rates on offer are a 3.79% fixed rate up to 65% LTV and a 4.19% fixed rate up to 75% LTV. 

Both products have a low flat fee of £995 and a free valuation and free legals for remortgages. 

Got to Property Hawk Mortgages to find out more 

Protect your Property Investment and Keep your Tenants Happy

News media constantly reports on stories of damp housing and the inevitable conflicts between tenants and landlords over the quality of the rental houses, so how can you ensure you stay out of the headlines?

By law, as well as making sure the property is fit for habitation, landlords are generally responsible for carrying out all repairs to the structure and exterior of the property. Therefore not responding to issues of damp in your property will not only lead to a deterioration of your housing stock, but may lead to complaints from tenants, many of which won’t understand the relationship between their lifestyle and the damp in the property. This can lead to arguments between tenants and landlords, a great deal of stress and can also potentially lead to you, as the landlord, being prosecuted.

Condensation is one of the three forms of damp and is caused by a combination of two main factors. The first is the amount of moisture we produce, and the second is the surface temperature where the condensation occurs. We produce huge amounts of moisture everyday, through bathing, washing, showering, cooking, drying washing and even breathing. During the winter months this moisture-filled air stays trapped indoors as tenants open windows less frequently to keep the cold drafts out. The resulting build up of moisture in the homes leads to damp and mould growth. First you see condensation on windows and cold surfaces, and then mould growth occurs where there is a cooler surface temperature, such as on north facing sides of houses and on poorly insulated walls or ceilings.

Mould will form where there is high moisture content, usually as a result of damp, and the result is both an unsightly and unhealthy house. However, there are many less well-known consequences of condensation and high humidity, including higher heating bills, health issues and also a deterioration of the building. All of these can result in a property that is unsuitable to live in or even unfit for habitation, resulting in conflicts between tenants and landlords, as well as depletion in the value of your property.

So, how can you protect your property investment and avoid condensation? The only way to avoid condensation and prevent mould appearing on cold spots and north facing exterior walls is to remove it from the air or increase the surface temperatures. As a landlord this is achievable by;

• Improving the quality of cavity wall insulation in the house so that the walls have a higher surface temperature, reducing condensation and mould growth. 
• Providing mechanical ventilation throughout the house, especially in bathrooms and kitchens. 
• Educating the tenant about the sources of moisture and the consequences of it to help them visualise a solution 
• Providing the tenant with a dehumidifier and educating them on its use. 

A dehumidifier is used not only for removing moisture in the air, but also can dry clothes, help houses feel warmer, minimise health issues and reduce heating bills. The reduction in heating bills may not immediately seem like a benefit to landlords however, with the rising cost of gas and electricity it’s likely to become a deciding factor on whether a tenant can afford to live in a property. By providing a solution that creates a healthier atmosphere within the home, minimising any health implications to the tenant, this is likely to remove a great deal of stress from any tenant/landlord conflict regarding issues of damp and health.

If you have not provided your tenant with a tumble dryer then a dehumidifier is a great alternative as it dries washing and will keep the entire home dry at the same time.

By investing in a £149.99 Meaco dehumidifier you can significantly improve the quality of your property, leading to happier tenants and a better reputation as a landlord. The cost of a Meaco dehumidifier is extremely small in comparison to the thousands of pounds worth of damage that damp can cause, plus the potential for lost rental earnings. A dehumidifier is not only a tool to remove water from the air, but will also build a positive business relationship between any tenant and landlord and avoid the stress and headaches that arise as a result of any conflict regarding damp properties.

For more information about the range of Meaco products visit the website www.meaco.com or call the team on 01483 234900, who can give expert advice on dealing with damp and humidity related problems.

Tenancy Agreement - non-smoking clause

Should we have a non-smoking clause in our tenancy agreement?

Let us know what your think in our landlord forum.

Free property management software, Free tenancy agreements

Landlords - Red Tape Challenge

Do you think that landlords are over regulated?

We all have our views.  It looks like the Labour Party have every intention of increasing not reducing the regulatory burden on landlords.  Well 'Quelle Surprise'!

Now landlords can let the current government know on how they think regulation on landlords can be reduced.  Make the most of it because if the other lot get in there will be very little opportunity for regulation reduction.

Landlord insurance - professional rates

Most popular BTL mortgages

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.99% Discount	2 Years	2.5%	£130.00	No	7% APR
80%	5.49% Fixed	Feb 28 2015	2.5% (min £595)	£0.00	No	5.6% APR
80%	4.99% Fixed	Feb 28 2015	£1800	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.1% APR
75%	4.85% Tracker	5 Years	1.75%	£150.00	No	5.5% APR
75%	2.99% Tracker	2 Years	2.25%	£150.00	Free valuation	5.3% APR
75%	4.69% Fixed	Feb 28 2015	£995	£0.00	£500 cashback on completion	5% APR
65%	3.99% Fixed	Jan 31 2015	0%	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.8% APR
65%	3.99% Fixed	Mar 31 2016	£995	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.6% APR
60%	2.99% Tracker	May 31 2015	£2495	£0.00	No	4.8% APR

Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

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Surveyors predict spring surge for property market

The housing market could be over the worst, with RICS surveyors  feeling more optimistic about the property market after recent government lending boosts. Many surveyors predicting/praying for a spring upsurge.

Read full articles here -

in the Telegraph
in the Daily Mail
in BBC Scotland
in Belfast Telegraph

Landlord Insurance - professional rates

Miliband promises national register of landlords

Mumbling - Ed Miliband promised a crackdown on rogue landlords cashing in on the housing shortage during his first major speech of 2013.

Made at the Fabian Society the Labour Leader mumbled on, saying  - 'We would introduce a national register of landlords and greater powers for local authorities to root out and strike off the rogues. We would end the confusing, inconsistent and opaque fees and charges regime, making fees easily understandable, upfront and comparable. And we will seek to remove the barriers that stand in the way of longer-term tenancies.'

He addressed the issues of housing shortages, saying that 3.6 million households are now in privately rented accommodation.

Mumbling on with 'We cannot have two nations divided between those who own their own homes and those who rent,' ( I'm not quite sure why - surely this is how it's always been - you can't expect everyone to own - can you?'

More mumbling - 'Most people who rent have responsible landlords and rental agencies. ( good - that's right, but like all industries and organisations theres are a few bad apples) But there are too many rogue landlords and agencies either providing accommodation which is unfit or ripping off their tenants ( hold on - calm down )

'And too many families face the doubt of a two-month notice period before being evicted.' - (sounds as if he could be pushing for changes in tenancy law - he's lost my vote )

'Imagine being a parent with kids settled in a local school and your family settled in your home for two, three, four years facing that sort of uncertainty.'

'We would introduce a national register of landlords and greater powers for local authorities to root out and strike off the rogues.' ( why not just ban individuals who break current legislation - giving every landlord a membership badge isn't going to change a thing ) 

'We would end the confusing, inconsistent and opaque fees and charges regime, making fees easily understandable, upfront and comparable. And we will seek to remove the barriers that stand in the way of longer-term tenancies.'

He also mumbled on about -  (and I do paraphrase here, but so much that comes out of his mouth is pointless waffle) - that the last Labour Government did a pretty bad job, but him and Balls would make a far better fist of it - honest.

He did fall short of re-branding the party New - New - Labour.

May I suggest something more catchy like 'Two Eds'


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London families spending 59% of income on rent

Some London families are paying as much as 59% of their income on rent according to a recent study by charity Shelter.

The charity calculated that private rents take up more than 50% of a family's monthly earnings in 23 out of the capital's 33 boroughs.

Pinch of -

More figures that demand the passing of the salt

Read full story at BBC

What PM3 does and does not cover about rent and expenses

Here are two lists about what PM3, our free landlord's fotware. First, the functions it provides. Second, some things it doesn't do.

What PM3 does do

1. Rent requests are created by the system as they become due. See our blog post Rent Figures in PM3 blog post.
2. You can tick off multiple rent requests as having been paid in full.
3. Or you can edit the requests, setting the amount due, amount paid and how the money was received.
4. You can also add second and subsequent payments if the money comes through in several amounts.
5. Outstanding Rent Payments (ORP) show the rent requests that have not been paid in full. You can set a cutoff date so they no longer appear after say six months.
6. Payments can exceed the amount requested, for instance if several rent requests are settled at once. Note that this will leave the requests flagged as ORPs.
7. Expenses are entered, either against a single address or for your portfolio as a whole. Each one can be allocated to a tax category.

What PM3 does not do

1. Opening balances for a tenant or tenancy.
2. Automatic netting off of payments across different rent requests.
3. Payments covering multiple tenancies.
4. Payments for items other than rent.
5. Double-entry accounting.
6. Multiple currency accounting.
7. Splitting income and expenditure between multiple individuals for tax purposes.
8. Allocation of expenses across tax years and across tax categories.
9. Accounting for the reimbursement of expenses from tenants.

Why PM3 stops where it does

We want PM3 to be easy to use. Adding advanced features like those listed above is likely to make the system harder. If you need those more complicated treatments, you may be better off either with paid-for landlord software or with managing the accounting detail on a spreadsheet outside PM3.

Fire alarms - a requirement?

Fire or smoke alarms are a difficult subject for many landlords.

We know that it make sense from a safety point of view but how many of us have actually not got one in our own home because every time you more than crisp your toast they get set off?  Much to the annoyance to you and your neighbours.

Since 1992 it has been a legal requirement to have mains powered smoke alarms fitted to all new buildings.  As yet there is no requirement to have them retro fitted.  If you have a HMO property there are stricter controls and requirements relating to fire safety and in particular smoke or fire alarms.

If you do own a HMO the Housing Act 2004, the Regulatory Reform (Fire Safety) Order 2005 (FSO) introduced duties in relation to fire safety in common areas of Houses in Multiple Occupation (HMOs).


I've got a property which was refurbished with a mains wire fire alarm.  The result?  Every tenant seemed to take great pleasure in disconnecting it.  Is this my responsibility?  Let's face it how many owner occupiers would do the same.  Whilst landlords have a duty of care for their tenants.  I am not aware that this extends to a any statute that stipulates that fire alarms need to be fitted and then maintained in working order.  In reality it seems to be a matter of conscious for many landlords.  I'd be interested in what other landlords think.


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Do you fancy a bit of BTL in 2013?

The Telegraph have pronounced that BTL property is booming. So happy new year to all us landlords out there, and let's all hope 2013 is another, relatively prosperous year, like 2012 was.

For in reality, even though the press might want everyone to think that us 'greedy landlords' are making an absolute packet, in truth, most of us are not. 

We did make a packet - I must admit. Back in the day, many of us made an absolute fortune, but for most of the non-south-eastern landlords, that all largely stopped - back around 2005. Now, most landlords are muddling away making okay returns. Admittedly far better than those you can achieve in most other investments - or savings!

But anyway, let's not burst the press hype bubble - rents continue to grow, and demand for rental property will probably stay on an upward spiral.

The Telegraph even have three celebrities in on the act,  telling you how to do it. There's Phil from Location, Location, Location, and the bouncy Sarah Beeny, and they've even dug up (from under some naff timber decking), Ground-forces 'Tommy the builder',  to give us DIY tips. ( Tip 1, don't put in naff timber decking, it'll go green and sloppy and rot in a few years ).

Where would we be without celebrities telling us what to do - heh?

Anyway if you want to be a BTL landlord, read what all the full hypes all about in this article in the Telegraph.

You never know, you could make an absolute fortune!

Call to landlords to give Universal Credits a chance

A Guardian blogger puts forward the case to landlords to give Universal Credits a chance.

Personally, - I'm not too sure.

Most popular BTL mortgages

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.99% Discount	2 Years	2.5%	£130.00	No	7% APR
80%	4.99% Fixed	Feb 28 2015	£1800	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.1% APR
75%	4.39% Fixed	Mar 31 2016	£995	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.7% APR
75%	3.74% Discount	2 Years	£1999	£250.00	No	5.4% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
65%	3.99% Fixed	Mar 31 2016	£995	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.6% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR

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Tel: 029 2069 5446 

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Compulsory landlord licence arrives

Fortunately the compulsory landlord licence for all landlords only applies to landlords in the London Borough of Newham.  However, it could be a sign of things to come particularly amongst Labour controlled councils.  I've given my view before about the Labour Parties thinly veiled dislike of landlords and everything that they perceive them to stand for.  Other Labour controlled councils could follow Newhams lead and vote for wholesale mandatory licensing in their areas.

Newham Landlord Licence

Newhams private rented property licensing scheme was approved last June and came into force on 1st of January.  It covers an estimated 35,000 private tenancies (one in three of all the borough's households).  Landlords who fail to register could be fined up to £20,000.

The Council spokesman Newham Mayor, Robin Wales said that its' scheme is intended

‘to tackle squalor, overcrowding and illegal dwellings in the east London borough’. And it says three quarters of private tenants have been found to support the scheme.

‘This scheme shows that Newham is leading the country when it comes to tackling bad landlords who flout the law. We will never accept private sector tenants being directly exploited by landlords who force them to live in dangerous and unacceptable conditions’

‘Good landlords have nothing to fear from this scheme. For the bad ones, this a clear message they must clean up their act – or pay the price,’ Wales added


The cost to landlords

The discounted cost to landlords is £150 for 5 years providing they register before the 31st January deadline.  The non discounted rate for the landlord licence is £500.

The question

The question about the scheme is how will having a landlord licence equate to the holder being a good landlord and indeed ensure they are letting out quality accommodation?  This is a question that Newham or non of the other supporters of a basic tick box landlord licence can really answer.  Which begs the other question.  What is the point then?

Landlord insurance  - trusted brokers

It pays to be cynical about property

A recent article in the Mail made me snigger - call me cynical, but I've have absolutely zero respect for these daft industry award ceremonies that have sprung up throughout every industry. From sandwich manufacture, to plumbers and florists. To me it's always appeared to be a bribery game, whether financial or emotional or both. Who wins is not about whose best but whose wants to win most. 

A finalist in our landlord version of these; a candidate for 'Landlord of The Year' in 2009 ( sorry the title even makes me snigger ) is now facing jail after he was caught running a brothel. Ironically, ex landlord Parminder Janagle was described as a new breed of ‘socially-aware’ landlords who had supposedly turned around a struggling portfolio of 12 buy-to-let properties, which have since been sold following the collapse of his property empire. Not what you'd call 'Landlord of the Year' material in most people eyes.

Now, I don't feel that I want to character bash Parminder anymore, he is reported as saying he took ‘full responsibility’. In many ways I feel sorry for him. He has lost everything - bankrupt, separated from his wife and facing a prison sentence. Happy new year! I hope he sorts himself out, and good luck. 

You see, Parminder was yet another victim of this property investment industry of ours. After falling into the trap of believing the hype. Apparently, he bought the 12 properties in Hull, Halifax, Sheffield and Grimsby in 2006 after going to a seminar run by the now defunct Investors Club, which boasted that it negotiated 20 per cent discounts from developers by buying in bulk.

Despite all his award winning efforts to reduce the £3,500 monthly rental shortfalls on the flats which  were valued at less than the cost of the loans secured on them - he lost them all, and desperation lead him to go on and do what he did. 

I guess what I'm actually trying to say is, when it comes to most things in life, whether it's award ceremonies or property investing - it pays to be cynical.

Be cynical of industry awards, sharp suits, smooth talkers, someone else's figures, Estate Agents, Letting Agents, in fact any agents, tenants, certificates, plumbers, builders, inventory clerks, solicitors, surveyors, banks, brokers, financial advisors .....

Read full story in Daily Mail

Agent Forecasts Property Price Increases Shock

To be taken with a good pinch

London focused Estate Agent Savills have predicted a surge in London property prices over the next five years. Well,  I'm sure their statistical department have minced the figures, jumped them over hurdles and then whipped them with a birch twig until they complied.

For what they're worth, here's the top 20 areas, and Savills forecast for their five year growth... they might be right.

1. Westminster - 25.6%
2. Kensington and Chelsea - 25.6%
3. Hammersmith and Fulham - 23.7%
4. Camden - 23.5%
5. Islington - 23%
6. Hackney - 21.9%
7. Wandsworth - 21.9%
8. Southwark - 21.5%
9. Lambeth - 21.4%
10. Richmond - 21.1%
11. Haringey - 21.1%
12. Brent - 20.8%
13. Barnet - 20.7%
14. Merton - 20.6%
15. Harrow - 20.2%
16. Ealing - 20.2%
17. Lewisham - 20%
18. Kingston upon Thames - 19.8%
19. Greenwich - 19.4%
20. Hounslow - 19.4%