NARHI trade body for Energy Assessors tells Landlords to act now on EPCs

Landlords operating within the private rented sector are being encouraged to start marketing their properties with Energy Performance Certificates before the mandatory date of 1st October 2008.

The National Association of Registered Home Inspectors (NARHI) believes there is a number of benefits for those who act now, rather than waiting until the last possible moment. Firstly, they will be seen to be acting responsibly by making available better information to tenants on the energy efficiency of the rental and also current running costs. Secondly, general lifestyle advice within the recommendations will encourage more efficient use of energy by the incoming tenant.

Continue reading NARHI trade body for Energy Assessors tells Landlords to act now on EPCs…

Rental review should aim for balanced protection of landlords and tenants

The government has launched an independent review of the private rented sector in England, which it hopes will improve conditions for landlords and tenants.

There are now almost 2.6 million homes in England being rented from over half a million private landlords.

A report by Citizens Advice last year found one in five tenants was dissatisfied with the quality of repairs carried out by their landlord, and feared retaliatory action from them if they complained to the authorities.

On the other hand, it also found that landlords face problems with unscrupulous tenants not paying rent and displaying anti-social behaviour.

The review will look how the increasing number of buy to let accommodation and student tenants has impacted on the private rented sector, the quality of homes and who the users of the sector are. It will also examine the impact of demographic and social change on the future demand and supply in the sector.

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Home economics: where next for property prices?

Home economics: where next for property prices?
The housing market stands delicately poised: The market it flat, and mortgage approvals remain weak
David Smith

The housing market stands delicately poised. With the Halifax’s announcement last week that prices were flat in January, both the main lenders’ measures are telling a similar story (Nationwide was down a minuscule 0.1%).

David Smith, Sunday Times - 10th February 2008

Prices were weak last autumn, with November the weakest month of all, reflecting a combination of the credit crisis and the distortions caused by the introduction of home information packs. Since then, there has been a flattening out, although activity measures such as mortgage approvals remain weak - full article

New edition of bestselling book on the buy-to-let market

Successful Property Letting – How to Make Money in Buy-to-Let £9.99

David Lawrenson, Published by Elliot Right Way

A brand new edition of the bestselling book on the buy-to-let market

With property prices cooling, most people are reluctant to invest in residential property. Leading property expert David Lawrenson argues that NOW is precisely the moment to act and invest in buy-to-let because a slower housing market means there are more opportunities for a bargain to be found and a strongly increasing demand for rental accommodation is pushing rents up. In his completely revised and updated edition of Successful Property Letting – How to Make Money in Buy-to-let, Lawrenson outlines everything you need to know about property investment and letting.

AUTHOR’S COMMENTS ON THE RESIDENTIAL PROPERTY MARKET

Is it too late to get into the property market and is this a bad time to invest?

When house prices take a breather, there is a huge opportunity for the serious property investor because property can be bought at lower prices. Many professional investors have been waiting for a time when they know that vendors will be willing to listen to offers. Investor landlords also know that many would be property buyers are unnerved by media talk of an unstable housing market and will choose to rent instead of buying, thus pushing up demand for rented accommodation and hence rental incomes. In the longer term a rising population and lack of housing will push up both house prices and rents.

Continue reading New edition of bestselling book on the buy-to-let market…

No let-up for buy-to-let

Amateur landlords who bought new-build flats in city centres face a tough time, but opportunities remain for those who do their homework, says Paula Hawkins

The Daily Telegraph - 12 February, 2008

Anxiety over the state of the property market in Britain shows no signs of letting up. As the major auction houses gear up for their February sales, there are worrying signs. Savills says it has seen an increase in the number of repossessed properties - and it expects this trend to continue over the coming months.

“We have seen an uplift in repossessions,” says Chris Coleman-Smith of Savills. “I think we will see a steady stream of repossessions at auctions across the country this year.” Allsop, Britain’s largest property auctioneer, says 40 per cent of the lots in its February auction were repossessions, a significant number of which came from buy-to-let investors.

The Council of Mortgage Lenders reported on Friday that 27,000 houses were repossessed in 2007, the highest number since 1999. The 2007 figure was 10 per cent lower than the CML had forecast for the year; homeowners will be hoping that its forecast for this year, of 45,000, is also too pessimistic - full article

G7 leaders turn pessimistic on global economy

TOKYO (Reuters) - The crumbling U.S. housing market has wounded the world economy, and conditions may worsen as debt-laden banks clamp down on credit, finance leaders from the world’s top industrialised nations said on Saturday.

Gernot Heller and Louise Egan, Mirror.co.uk - 9th February 2007

While the U.S. economy was likely to escape a 2008 recession and economic fundamentals remained “solid”, the Group of Seven leaders said far more work was needed to restore markets to good working order and safeguard global growth.

“The current financial turmoil is serious and persisting,” U.S. Treasury Secretary Henry Paulson said as the G7 finance leaders laid out plans to treat the root causes of market distress.
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“As the financial markets recover from this period of stress, as of course they will, we should expect continued volatility as risk is repriced.”

Caution pervaded their reassurances that the United States and the rest of the world should skirt a downturn - full article

Landlords enjoy windfall from global storm

SCOTLAND’S buy-to-let market is booming in its biggest cities as a result of the credit crunch and global stock-market volatility, according to experts.

A record number of people have being searching for homes to rent, rather than trying to buy their first property – a sign the current economic uncertainties are affecting the house buying market.

Rosemary Gallagher, The Scotsman - 9th February 2008

This boost to the residential letting sector makes it a good time for existing landlords, although the unsettled economic conditions are not ideal for those considering entering the buy-to-let market.

The country’s biggest letting portal, Citylets, says it has experienced its busiest January to date, with more than 80,000 searches for property to rent in Edinburgh and Glasgow during the month. In Edinburgh, that is a rise of 27 per cent on January last year, while for Glasgow it represents a 20 per cent increase - full article

Homeowners’ relief as Bank of England cuts interest rate by 0.25%

BECKY BARROW - More by this author » Last updated at 12:40pm on 7th February 2008

The Bank of England cut the base rate from 5.5 per cent to 5.25 per cent

Becky Barrow, Daily Mail - 7th February 2008

Homeowners received a much-needed boost today after Bank of England policy makers cut interest rates for the second time in three months.

The Bank’s nine-strong Monetary Policy Committee (MPC) voted to trim rates by a quarter-point to 5.25% amid growing signs of a slowdown in the economy and a cooling housing market.

But hopes of a more dramatic cut were dashed, despite calls from retailers for a reduction to 5%.

Some of Britain’s major banks have already responded to the cut, by pledging to pass on the reduction in full.

The move came after home-owners were warned most monthly mortgage payments would not fall even if interest rates fell.

Lloyds TSB, HSBC and Barclays said they would reduce their standard variable rate by the full 0.25% - full article
See Also: http://www.landlordzone.co.uk/bank_rate.htm

CGT change may hit second homeowners

Under the new capital gains tax regime they could end up paying two or three times more tax when they sell their property.Many will have bought a second home to help boost their income in retirement as an alternative to building up their pension pot.

Liz Phillips, Daily Mail - 6 February 200

On the face of it, the new single CGT rate of 18% looks like good news. But two vital allowances which bring down the tax bill are being abolished. The first, called indexation, allowed you to take inflation into account up to 1998 and the second, known as taper relief, reduces the bill depending on how long you have owned the property - full article See Also: http://www.landlordzone.co.uk/tax/capital-gains-tax.htm