Landlord Accreditation Scheme launched

As Dorothy said there is no place like home and having a safe, comfortable home is a priority for everyone. With this in mind the Welsh Assembly Government and Cardiff Council, supported by the 21 other Local Authorities in Wales has developed the Landlord Accreditation Wales scheme.

November 20th, 2008

The Landlord Accreditation Wales scheme recognises good landlords throughout the country. The scheme is open to individual landlords, agents and companies, and certifies them as being informed and professional in their approach to managing private rented accommodation.

Given the current financial climate there has never been a better time to create the scheme, as there are more tenants looking for rental properties and also more people looking to rent out their homes.

On Wednesday 19th of November at the Pier Head Building in Cardiff Bay, Deputy Minister for Housing, Jocelyn Davies AM and Cardiff Council’s Executive Member for Communities, Housing and Social Justice, Cllr Judith Woodman presented a number of landlords from across Wales with their accreditation certificate’s and talked to other landlords and key stakeholders about the scheme. The event took place ahead of the All Wales launch in March 2009.

Executive Member for Communities, Housing and Social justice, Cllr Judith Woodman, said: “With the demand for rental properties increasing, there has never been a better time for landlords to gain accreditation, the schemes gives landlords the opportunity to stand out from the crowd and gives tenants the option to make an informed decision about who they let their home from. I would encourage landlords to find out more about the scheme and urge tenants to rent properties from recognised and accredited landlords”.

Deputy Minister for Housing Jocelyn Davies AM said, “All professions have a small minority that can give the rest a bad name. This Assembly Government backed project will help people find recognised landlords who have signed up to a code of conduct and who provide an honest, open service. Good landlords are those who ensure that their properties are in a good condition and well managed”

To find out more information about the scheme log onto the Land Accreditation Wales website: www.welshlandlords.org.uk

Adrian Hamilton: Recovery cannot begin until house prices bottom out

We don’t have the money to fund recovery without outside investors.

How can he get away with it? While David Cameron laboriously carries out a U-turn on taxes, the Prime Minister positively somersaults over every position he has ever held and yet seems to get only stronger in the opinion polls.

Adrian Hamilton, The Independent - Thursday, 20 November 2008

He has abandoned all his golden rules, embraced unfunded tax cuts as the panacea for our recessionary woes and declared the whole thing a global problem in which we are but guiltless victims.

Meanwhile, poor old Cameron has to do his manoeuvres in full public glare before an audience who never saw the point of his much-vaunted commitment to keeping Labour’s spending plans in the first place, and are just as unmoved by his reversal of it now.

The blunt answer to the question is political skill. True, world events have given Brown cover for his policy reversals. But his real adeptness has been the way he has been able to turn events to his own advantage, playing to his strength as a man full of measures to meet the occasion and his ability – too often underestimated – to paint his opponent into a corner.

In the early stages, it was pinioning the Tories (although not the Lib Dems, it should be said) into the position of being ignorant of the world scale of the crisis. Now it is to put Cameron into the role of a man who, in assaulting reckless spending, is showing himself opposed to helping the poor and the weak.

It is hard politics but it is good politics, in that it has at least thrown up a real argument about policy rather than shadow-boxing over image. Full Article

Kirsty the Phil’s Location, Location, Location Returns as UK House Prices Crash

Best Financial Markets Analysis ArticleKirstie and Phil self professed property experts make a return to the UK’s TV screens with a more muted version of their long standing delusionally bullish UK property candy floss show titled location, location, location that helped feed the get on the property ladder frenzy of the last few years.

Nadeem_Walayat, The Market Oracle - 20 Nov 2008

Finally, Kirstie has been forced to recognise the fact that house prices can actually fall which follows earlier near religiously opinionated programming that fed on and reinforced the fervour that gripped much of the country as annual house prices roared ahead every month by more than that which people earned in wages, that house prices are a one way bet.

The credit crash is clearly leaving the presenters in an air of frustration that the wood be buyers are in increasing numbers failing to act on their suggestions of buying found properties as people increasingly realise the risks of buying into a crashing UK housing market.

Kirstie is still not getting the message that no matter how much you want house prices to rise, you can’t talk up the market.

But still the impression is that the presenters desperately want the potential buyers to BUY the located properties upon which the programme still hinges, when most are not wanting to once they do the sums away from the glare of the TV cameras, that BUYING does NOT stack up as the analysis of November 2007 showed and concluded that house prices need to rise by more than 2% per annum to beat renting, anything else and buyers lose money.

Whilst Kirstie’s now infamous emotional and angry response against anyone that suggested that house prices could fall on ITV’s London Tonight ‘appears’ to have gone.

Still both Kirstie and Phil are attempting to talk people into lemming like house buying decisions that they will likely regret as the housing bear market progresses, as in fact the most recent program illustrates which showed that had prospective buyers acted on Kirstie’s and Phil’s ’suggestion to buy’, they would have lost £20k ! Let alone many of those that acted during the programming’s boom years that are now probably sitting in negative equity. Full Article

Tax-cut gamble will let Britain buy now – but we’ll certainly pay later

On Monday Alistair Darling delivers the most important Budget statement in a generation. Today we examine the health of the nation’s finances and the outlook for key social services

Gary Duncan, Economics Editor, The Times - 20 November 2008

Poor Alistair Darling. Less than three months ago the Chancellor was lambasted for saying that Britain was heading for its worst economic down-turn in 60 years. Now, as the Chancellor finalises next week’s PreBudget Report, he may have the satisfaction of being vindicated – but it is his fate to have to try to clear up the mess.

It is a grim prospect. With Britain now entering a recession that may be worse than that of the early Nineties, he faces the bleakest of outlooks. The Treasury’s books are already awash with red ink from the huge borrowing bills racked up during Gordon Brown’s ten-year stretch in No 11.

Yet with the threat of a deep and prolonged recession hanging over them, both Mr Brown and his Chancellor are intent on staving off a painful slump. So Mr Darling is expected to announce a substantial “fiscal stimulus” of tax cuts and higher spending to try to jump-start the economy. Full Article

Lenders can seize buy-to-let properties without court orders

Buy-to-let investors could face having their properties seized without a court order if they struggle with their mortgage payments, the Council of Mortgage Lenders has warned.

Myra Butterworth, Personal Finance Correspondent, The Telegraph - 19 Nov 08

A spokesman for the CML said lenders could “step into a landlord’s shoes”. Banks could either receive rent from the tenant for a fixed period of time or even repossess the property.

She said: “It would not be a bad thing as it would mean tenants would be protected if they are paying their rent but their landlord is not paying their mortgage.”

Estate agents have reported a flood of properties coming onto the rental market and rental prices falling for the first time since April 2003, according to the Royal Institution of Chartered Surveyors.

It comes as banks reveal they are increasing the number of staff to deal with calls from distressed home owners who are unable to pay their mortgages.

Speaking at a Treasury select committee hearing, executive chairman of Bradford & Bingley Richard Pym said its arrears department will swell from 200 employees in August this year to a peak of 400 next year. Northern Rock is also increasing arrears staff. Full Article

Tax warning for buy-to-let investors

THE more canny buy-to-let investors in the market at the moment are those acknowledging non-disclosure of rental income or capital gains arising from the previous sale of investment properties.

Tony McDonough, Liverpool Daily Post - 19 Nov 08

HM Revenue & Customs are contacting up to 1m buy-to-let landlords who it suspects may not be paying the correct amount of tax on their investments.

Under the new initiative, tax inspectors will review details obtained from various sources, including letting agents and the Land Registry Office, in order to uncover landlords who have not fully disclosed rental income or capital gains arising on the sale of investment properties. From April, tax inspectors will have new powers that will give them the right to inspect business records at the place of business.

These same powers will apply to landlords.

As most buy-to-let businesses are run from home, this will allow the inspector access to the landlord’s personal residence, although the inspection will be restricted to the parts of the home used in the business. HM Revenue would normally give at least seven days notice prior to the visit, but, in exceptional cases, no notice would be given.

Thus, we would strongly recommend that all landlords maintain separate business and private records and bank accounts to avoid inspectors gaining access to personal records which they have no right to see.

Despite the recent downturn, there are now more than a million buy-to-let mortgages in the UK, compared with only 120,000 back in 2000. Full Article

THE EVICTORS

As the recession looms, small landlords face an increasing battle to get rid of bad tenants who can’t (or simply won’t) pay their rent.

Duncan Farmer, The Mail on Sunday - October 26, 2008

The rising cost of buy-to let mortgages, negative equity and competition from house builders dumping thousands of unsold properties on the rental market are putting the squeeze on the 1.1million amateur landlords who have clambered aboard the buy-to-let bandwagon in the past eight years.

They also face another, even more costly, threat from bad tenants who can’t or won’t pay the rent and as recession bites the problem is set to get even bigger. In the past three months the number of investors seeking help from Landlord Action, a company that specialises in evicting bad tenants, has jumped 25 per cent. ‘As unemployment rises, so will the rate of rent arrears.

It happened in the last recession and it will again,’ says Paul Shamplina, whose company serves 15 eviction notices a day. Because the legal process is so strict and county courts are so busy with rent and mortgage arrears and bankruptcies, it can take up to six months to get rid of a bad tenant.

And even when they do leave, there is little guarantee that a landlord will be able to recoup the arrears. ‘Under the 1988 Housing Act you can’t issue a section eight notice to terminate a tenancy agreement until the rent is at least eight weeks overdue,’ says Shamplina. ‘Although about half will either pay up or move out when a notice is served, the rest opt to go to court, which can take another eight weeks.

Even if a judge orders them out, which is usual in the case of arrears, it can then take six weeks to get a bailiff to forcibly evict them.’ The problem is exacerbated by housing charities and local councils, which advise delinquent tenants to stay put, telling them that if they move out of their own accord they will not be eligible for social housing.

Continue reading THE EVICTORS…

Experience in letting paramount, warn Leaders

Unless particularly knowledgeable about property services, the majority of people are unaware of the intricacies of residential property lettings, and of the importance of using an experienced, qualified and independent letting specialist when renting or letting a property.

According to Leaders – one of the UK’s largest independently owned letting agents - this is a concern, particularly in the difficult sales market where more people are renting and letting property and many new lettings services are springing up as a result.

Says Paul Weller, Leaders’ managing director: “When you use the letting service of an agent, you entrust them to do more than simply find you a home to rent or a tenant for your property.

“You rely on them to take care of a number of critical issues, including ensuring the tenants’ safety in the property; legal compliance; care and maintenance of the property; protection of landlords’ and tenants’ rights; smooth-running of the tenancy; and reliable provision of accurate, up-to-date and impartial advice on the many aspects of renting or letting.

“With all this in mind, we are urging the public to choose an agent that is a qualified and experienced specialist who knows everything there is to know about lettings, rather than someone new to lettings with minimal experience and no qualifications.”

Leaders are concerned about the quality of service being offered to unwitting landlords and tenants by the increasing number of inexperienced agents providing lettings services.

Says Paul: “Now, more than ever, it is important for landlords and tenants to choose their letting agent carefully; this is not the time to be cutting corners or taking risks. The effects of the credit crunch mean that even tenants who would normally be considered extremely creditworthy, for example, employees of investment banks, may get into difficulty or lose their jobs. It is in times like this that experience is paramount, to safeguard your investment and ensure that any potential problems are kept to a minimum.”

Continue reading Experience in letting paramount, warn Leaders…

NALS Drives forward Private Rented Sector agenda

Following the recent findings in the Rugg Report, The National Approved Letting Scheme (NALS) has welcomed discussions with Iain Wright MP – The Housing Minister responsible for the private rented sector in order to drive forward the better lettings agenda in line with Government policy and public need.

In an Industry Forum meeting held on the 11th November with a representative cross-section of NALS accredited firms (multi-site and SME single-site offices), discussions with the Minister centered on encouraging growth within the private rented sector, whilst at the same time securing the right level of protection for tenants and landlords.

The Rugg Report issued last month emphasized the need for added protection for both parties and called for independent regulation of lettings and management agents.

The NALS Forum reinforced that whilst there is unanimous support for mandatory licensing of lettings agents through an organization independent of the industry that in order to be effective, it is essential that the licensing criteria be strictly ‘policed’ with strong penalties applied to firms who do not comply.

Chair of the Forum, Caroline Pickering maintains:

“The licensing body needs to retain independence to provide a solution that commands respect and can deliver the necessary strength of purpose. A clear message that has come out of both the Rugg Report and our meeting with the Housing Minister is that NALS is the obvious candidate for this role. We have in place standards that are rigorous but achievable by all conscientious letting agents.

Continue reading NALS Drives forward Private Rented Sector agenda…

CML - Critics round on government for rate intervention

Even in such an unpredictable market as this, the chain of events around the interest rate cut by the Bank of England’s monetary policy committee earlier this month was unprecedented. On 3 November, the Treasury published arrangements for managing its shareholding in banks through a new “arms-length” company. Three days later, the Bank announced its historic 1.5% cut in rates.

Virtually no-one had predicted a cut in rates of that size, although there had been widespread anticipation of a cut by the Bank of at least 0.5%. In a note to journalists the day before the decision, we anticipated the obvious follow-up question: “Will lenders pass on any Bank rate cut to mortgages?”

As we said in our advance media note, the wording of the question in itself implies that lenders automatically benefit from any cut in Bank rate. They don’t, of course. As a number of commentators – but not the headline writers – acknowledged in their coverage following the rate announcement, the cost of funds to lenders depends not on Bank rate, but on a range of other factors, including what they have to pay savers to attract deposits, how much it costs them to borrow in money markets, and the costs of holding capital and sufficient liquidity.
The Bank rate and libor

Far more important than the Bank rate in determining lenders’ funding costs is the three-month London inter-bank offered rate (libor). Before the onset of the credit crunch, libor had typically fluctuated in a narrow range of between 0.15% and 0.2% above Bank rate. But since the autumn of last year, it has been consistently much higher than Bank rate. It has also been much more volatile – and this volatility, in itself, has a cost that lenders have to factor into mortgage pricing decisions.

Continue reading CML - Critics round on government for rate intervention…