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Thursday, August 01, 2013

End of rabbit hutch developments

Ministers are set to announce A fresh government consultation is set to bring an end to many of Labour's needless measures forced upon house builders. As well as a new measure  recognising that rooms can't be too small.

Communities secretary Eric Pickles has blamed Labour’s density targets for condemning families to be “trapped in rabbit hutch homes”.

RICS figures show the average UK home has shrunk 40 per cent in 80 years.
The consultation proposes cutting the measures from 100 to 10.

Don Foster, Communities minister, said: “I’m proposing to cut needless red tape to let housebuilders get on with the real job of building the high quality new homes that people need, especially families and first time buyers.


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Most popular BTL mortgages

Max LTVInitial RateTermCompletion feeBooking feeIncentivesOverall Cost for ComparisonLender
85%4.99% Fixed2 Years2.5%£130.00No6.8% APRKent Reliance Semi Exclusive
85%5.99% Discount2 Years2.5%£130.00No7% APRKent Reliance Multi Let & Ltd Co. Semi Exclusive
80%4.14% FixedOct 31 2015 2.5% (min £595)£0.00No The Mortgage Works
80%4.99% FixedAug 31 2015 £1800£199.00Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.6.1% APRLeeds Exclusive
75%2.88% Tracker2 Years2.5%£150.00Free valuation for purchases and remortgages & free legals on remortgages5.3% APRMortgage Trust ltd Edition Exclusive
75%4.19% FixedDec 31 2015 £995£0.00£500 cashback on completion BM Solutions
70%4.09% FixedNov 1 2015 £995£0.00£750 cashback Virgin Money
70%4.25% Discount2 Years0%£199.00Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.6% APRLeeds Exclusive
65%4.74% Variable0 Years£749£250.00Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.3.6% APRGodiva
65%4.2% Tracker2 Years3%£150.00No5.4% APRParagon
60%3.59% DiscountAug 31 2015 0%£99.00Free valuation for purchases and remortgages and free legals on remortgages only. £99 cashback4.9% APRPrincipality BTL
60%2.45% Discount2 Years£1950£250.00One free Valuation on properties valued up to £1,000,0005% APRHinckley & Rugby Exclusive
 


Tel: 01494 894639

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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Landlords letting to benefit tenants falls

The proportion of landlords with benefit tenants who receive Local Housing Allowance fell last month to 27% compared to 34% back in March when the poll was last conducted.

The fall follows recent benefit changes which has reduced access of some tenants to the benefit system and also reduced the size of payments for others.

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Wednesday, July 31, 2013

Paragon set to return to landlord lending

Paragon are set to return to consumer lending after the BTL lender finished lending direct to landlords following the credit crunch.

Paragon's Chief Executive Nigel Terrington said: “The group is continuing to prepare for a return to new consumer finance lending, which is likely to be undertaken within a banking subsidiary. Further information on the progress of this business line will be provided in due course.

Read more in FT Advisor





Tel: 01494 894639

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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NLA report landlords concerns over UC

Offensive stereotyping disclaimer
A recent poll by the NLA recorded 38 per cent of landlords are worried about the impact of Universal Credit, with  51percent indicating they would not to let to benefit claimants.
The NLA are concerned that monthly benefit payments under UNiversal Credit will lead to more tenants struggling to pay rents because of poor financial budgeting.
It reported that landlords with single properties or small portfolios were most concerned with six in ten ruling out ever letting to tenants receiving benefit.

The NLA chairman, Carolyn Uphill said: “Our research highlights how worried landlords are about the impact of Universal Credit and that they are choosing to withdraw from the local housing allowance market.
“This concern is understandable, particularly with the uncertainty that the changes to the benefit system bring. Quite simply, they are worried the rent won’t be paid and that they will not have the system of direct payment to fall back on. However, the Government relies on the private-rented sector to support the provision of housing for those in receipt of benefits so it needs to act quickly to restore landlords’ confidence, showing it grasps the practicalities of renting."
She added: “Renting is a business and landlords must balance their needs with an understanding of the pressures experienced by their tenants. It is essential that they work with tenants in receipt of housing support to ensure they are aware of the forthcoming changes and are seeking advice on budgeting for monthly payments.”
Landlords with tenants on LHA has fallen to 27pc last month, down from 34pc in March. 

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Meet the Landlords Programme


Landlords; not always the bad guys
Photo courtesy of The Rocketeer @creativecommons

BBC Meet The Landlords programme – a snapshot of landlord life at its worst

If you watched the BBC’s recent Meet The Landlords fly-on-the-wall documentary, you’ll either have been thinking yourself lucky that you’ve had a relatively easy run, or nodding your head in recognition at all the nightmare scenarios played out on screen.

The programme followed the stories of beleaguered landlords, homeowners refused access to their own homes by tenants, and down-on-their-luck tenants close to homelessness as landlords turn them away for being on housing benefit. Interestingly enough, it showed landlords as both good cop and bad cop, which is unusual given the predominantly bad press we get.


Nicki’s story

The story of single mother Nicki and her young son Josh was particularly hard to stomach. Being diagnosed with cancer in her early thirties meant Nicki couldn’t work and relied on benefits. While battling chemotherapy she was asked to leave one property in London to make way for the landlord’s preferred private tenant. After finding another property, she was promptly asked to leave so the landlord could convert the building into bedsits.
In five years of renting, Nicki hadn’t been in one property for  longer than eight months. With nowhere to go, she was advised by the council they could do nothing for her until the bailiffs showed up, leaving her terrified she would end up on the streets.

Tenants from hell

The show also highlighted ‘ASBO tenant’ Paul, being carefully ‘handled’ by the very patient lettings staff at The CastleDene Group. Paul had various addiction issues and had moved from house to house because of anti social behaviour, including his habit of phoning 999 for a lift!

One of the most extreme abuses of a landlord’s trust was at a house in the Midlands, which had been turned into a brothel and drug den. The coffee table was covered in weed, every door had been punched through and every window smashed. The defeated landlord offered the tenant a £10 note to leave voluntarily. Shockingly, she took it dejectedly and walked off down the street minutes later with her belongings in plastic bags. A sad snapshot of a very damaged way of life.

A homeowner’s nightmare

After renting out her family home, Caroline was in the dreaded situation of not being able to regain access to her house. After accruing £16k in unpaid rent, creating huge damage to the house by overrunning the bath and cracking the windows, the tenants were finally forced to leave after an 18 month ordeal. The relief and emotion was so moving when Caroline and her kids got to go home.

Young professional homeowner Anna was in the same boat. Her tenants owed her £7k and turned her into an emotional wreck after refusing to exit the property at the end of the tenancy. After finally getting them out, tearful Anna couldn’t face living there again. She sold the house and vowed her landlording days were over.

Unexpectedly inspiring

In the midst of all these shocking tales of landlord life, was a story of great inspiration. Jim Haliburton , otherwise known as HMO Daddy  told how after he growing up in an orphanage he went on to make his fortune by building a portfolio of HMOs.

With 75 HMOs and 500 tenants under his care, Jim is still hands on, and the programme saw him taking a tenant to court to gain occupancy, and taking it completely in his stride. Clearly, this is not his first rodeo, as they say. How wonderful to see someone who’s had a less than 
privileged start become such a  great success through BTL.

Read other reviews of Meet The Landlords here 

If you saw the programme, what did you think? 
Did you feel it was a fair reflection of landlording life? 
I’d love to read your comments.

Alison Doering is a north east landlord who caught the BTL bug three years ago and has never looked back. Going from zero to six properties in three years and juggling a high pressure job in marketing means every day is a school day; there’s always something new to lock away in that mental filing cabinet marked “Never do that again!” 


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