The National Landlords Association has claimed that landlords are questioning the benefits of Energy Performance Certificates claiming that the information is being ignored by prospective tenants.
All tenancies in England and Wales created or renewed on or after 1 October 2008 are required to have an EPC which measures the efficiency and energy performance of a dwelling based on a number of criteria.
It is claimed that many tenants are unaware of the legislation and further feel it does not influence which property they ultimately select to live in.
Recent press releases have indicated that should the Conservatives return to power then the Home Information Pack may be shelved however legislation already in place means that the obligation for Energy Performance Certificates will continue.
Friday, 31 July 2009
Monday, 27 July 2009
Landlords suffer slump in property values
Research from Sainsbury's finance has detailed that private landlords have seen the collective value of their properties fall by a staggering £118.4 billion between the first quarter of 2008 and the same period this year.
This staggering statistic represents £324 Million per day.
Many landlords are re-entering the market as a result of these price falls and increased yields from Buy To Let however many landlords have been so badly burned in the recession that they are unlikely ever to return to the Buy to Let Market.
This staggering statistic represents £324 Million per day.
Many landlords are re-entering the market as a result of these price falls and increased yields from Buy To Let however many landlords have been so badly burned in the recession that they are unlikely ever to return to the Buy to Let Market.
Thursday, 16 July 2009
Squatters move in to £30M House!
Squatters have allegedly moved into a super mansion in a road dubbed millionaires row. The squatted house is in the Bishops Avenue area of London and local estate agents think it could be worth up to £30Million.
Bought an investment property??
Landlords acquiring property with tenants already in situ should be aware of their obligations prior to trying to evict the tenants. Courts require proof of title and the tenant under the Landlord and Tenant Act is entitled to be notified of an address for proceedings.
Landlord assist provide free no obligation advice so call them to ensure the correct process. This is far more preferable than realising the mistake once you get into court!
Landlord Assist can be contacted at 08707 662288 or via email at info@landlordassist.co.uk
Landlord assist provide free no obligation advice so call them to ensure the correct process. This is far more preferable than realising the mistake once you get into court!
Landlord Assist can be contacted at 08707 662288 or via email at info@landlordassist.co.uk
Fire Safety in Residential property
Two landlords of bedsit accommodation in North London have been sentenced to six months imprisonment and ordered to pay £5000 costs each for breaching fire safety legislation. The prosecution followed a fire on 31 March 2007 at a house in Hampton Road N8.
The landlords were prosecuted after pleading guilty to several breaches of the Regulatory Reform Fire Safety Order 2005.
The breaches included inadequate fire detection systems, lack of fire doors, no emergency lighting, lack of fire fighting equipment and no fire risk assessment having taken place.
The landlords were served with an enforcement notice but no remedial action was taken
The landlords were prosecuted after pleading guilty to several breaches of the Regulatory Reform Fire Safety Order 2005.
The breaches included inadequate fire detection systems, lack of fire doors, no emergency lighting, lack of fire fighting equipment and no fire risk assessment having taken place.
The landlords were served with an enforcement notice but no remedial action was taken
yields are improving for landlords
Landlord Assist the nationwide tenant eviction and rent recovery firm are seeing an increase in the number of their clients adding to their portfolio. Graham Kinnear, MD at Landlord Assist is convinced that investors are returning to the market attracted by the double digit yields that are becoming available again. Kinnear continues "We have a Client who has just secured a block of four 1 bedroom flats for investment which provides an initial gross yield of 16% - these figures would have been impossible to obtain pre recession. Many of our Clients are doing deals on properties and portfolios which give a 10% yield. This is set against an average rental yield in the second quarter of 2009 of 6.4%"
Another facet appears to be the emergence of the so called "Silver Spenders" those approaching or in retirement who are receiving a derisory return on their bank balances and pension who decide to improve their retirement income via Buy To Let. An enormous number of properties being sold at auction are attracting these cash rich purchasers keen for a bargain. One such individual being Mrs Horlock who has recently acquired two apartments in Battersea at £145,000 each which rent at £1750 per month each giving a yield of 14%. Landlord Assist evicted the tenants that she inherited upon purchase and the new tenants have paid their rent on time since moving in around March this year. Mrs Horlock states "Landlord Assist were wonderful in evicting the non paying tenants which may have been why I got the flats so cheap in the first place. The new tenants were referenced by Landlord Assist and are wonderful and the additional revenue has really boosted my retirement income"
Kinnear continues "No one has ever suggested to me that property is not a good investment vehicle. In many areas of the Country we are seeing rallying tenant demand and yet still subdued capital values and accordingly now is the time to buy" Stephen Parry, Commercial Director at Landlord Assist agrees "It is implausible that yields can reach 20% and therefore we feel that Capital Values will improve over the next 18 months with yields settling at approx 8 percent and perhaps around 6.5%in London"
Obviously key to maintaining the yield of your investment is the collection of rent. Landlord Assist suggest that where rent is not forthcoming or other tenant obligations are not adhered to the landlord should take swift action as these situations rarely correct themselves.
Landlord Assist act for hundreds of letting agents, corporate and private landlords throughout the UK and work on the basis of fiercely competitive fixed fees. They offer free telephone advice on 08707 662288 or via email at info@landlordassist.co.uk
Another facet appears to be the emergence of the so called "Silver Spenders" those approaching or in retirement who are receiving a derisory return on their bank balances and pension who decide to improve their retirement income via Buy To Let. An enormous number of properties being sold at auction are attracting these cash rich purchasers keen for a bargain. One such individual being Mrs Horlock who has recently acquired two apartments in Battersea at £145,000 each which rent at £1750 per month each giving a yield of 14%. Landlord Assist evicted the tenants that she inherited upon purchase and the new tenants have paid their rent on time since moving in around March this year. Mrs Horlock states "Landlord Assist were wonderful in evicting the non paying tenants which may have been why I got the flats so cheap in the first place. The new tenants were referenced by Landlord Assist and are wonderful and the additional revenue has really boosted my retirement income"
Kinnear continues "No one has ever suggested to me that property is not a good investment vehicle. In many areas of the Country we are seeing rallying tenant demand and yet still subdued capital values and accordingly now is the time to buy" Stephen Parry, Commercial Director at Landlord Assist agrees "It is implausible that yields can reach 20% and therefore we feel that Capital Values will improve over the next 18 months with yields settling at approx 8 percent and perhaps around 6.5%in London"
Obviously key to maintaining the yield of your investment is the collection of rent. Landlord Assist suggest that where rent is not forthcoming or other tenant obligations are not adhered to the landlord should take swift action as these situations rarely correct themselves.
Landlord Assist act for hundreds of letting agents, corporate and private landlords throughout the UK and work on the basis of fiercely competitive fixed fees. They offer free telephone advice on 08707 662288 or via email at info@landlordassist.co.uk
squattors posing as house buyers
Richard Jerome was jailed this week for his role in a scam whereby he and his wife posed as wealthy house buyers and once they had selected a property would ask the vendors if they would rent them the house until the sale went through.
In March 2006 they offered £250,000 on a house in Milton Keynes. It took 12 months for them to be evicted via the County Courts. Their next target was a £550,000 house also near Milton Keynes again they rented the property while the sale was going through and ended up being evicted 6 months later.
The Judge took the view that Mrs Jerome played a secondary role. No confiscation order was made as the couple have no assets.
Detective Sargeant John Baston of Thames Valley Police said the sellers had to haul them through the county courts, a process that took months in each instance and caused great distress.
In March 2006 they offered £250,000 on a house in Milton Keynes. It took 12 months for them to be evicted via the County Courts. Their next target was a £550,000 house also near Milton Keynes again they rented the property while the sale was going through and ended up being evicted 6 months later.
The Judge took the view that Mrs Jerome played a secondary role. No confiscation order was made as the couple have no assets.
Detective Sargeant John Baston of Thames Valley Police said the sellers had to haul them through the county courts, a process that took months in each instance and caused great distress.
Tuesday, 14 July 2009
Manic Monday!!
According to the Deposit Protection Service, the only custodial scheme approved by the Government, 288 deposits were lodged last Monday which equated to £1.5M in a single day!
In total since its launch in 2007, 640,000 deposits have been protected worth in almost half a billion pounds.
In total since its launch in 2007, 640,000 deposits have been protected worth in almost half a billion pounds.
Monday, 13 July 2009
Letting Agents terms and Conditions
The recent court case of the Office of Fair Trading v Foxtons Limited addresses the issue of an agents terms and conditions and in particular the subject of renewal commissions.
This blog is not meant to be anti-agent as in our experience the letting agents we deal with are a very professional and nice bunch however for those who charge a renewal commission without resigning the tenant there is an argument that this really is money for old rope!
Landlord Assist work with literally hundreds of letting agents providing referencing and eviction services throughout the UK and in our experience an increasing number are shelving renewal commissions. For those who still operate this practice heed should perhaps be taken of ARLAs guidance which states that renewal commissions can be charges however the commission clause should be at the head of the terms and conditions in bold text.
What appears apparant is that the Foxtons case will be in the fore of a County Court Judge's mind in any proceedings relating to renewal commission.
Landlord Assist's view is that provided the terms are made clear to the landlord and that the charges made for the work involved are reasonable then a landlord should be quite satisfied with the agents service offering.
This blog is not meant to be anti-agent as in our experience the letting agents we deal with are a very professional and nice bunch however for those who charge a renewal commission without resigning the tenant there is an argument that this really is money for old rope!
Landlord Assist work with literally hundreds of letting agents providing referencing and eviction services throughout the UK and in our experience an increasing number are shelving renewal commissions. For those who still operate this practice heed should perhaps be taken of ARLAs guidance which states that renewal commissions can be charges however the commission clause should be at the head of the terms and conditions in bold text.
What appears apparant is that the Foxtons case will be in the fore of a County Court Judge's mind in any proceedings relating to renewal commission.
Landlord Assist's view is that provided the terms are made clear to the landlord and that the charges made for the work involved are reasonable then a landlord should be quite satisfied with the agents service offering.
Officials to target Landlords
Property Landlords are set to fall under greater scrutiny if suggested changes in taxation come into force.
Th eInland Revenue is wanting additional powers which would compel letting agents to reveal details of all previous clients whether they were let only or management clients.
Peter Bolton King states "while this push by the revenue has the potential to catch a lot more landlords out it will also create more work for agents in terms of their record keeping"
If the Revenue obtain these powers they could be in force by the beginning of the next tax year. The revenue are also searching for blacklist powers. Landlords could find themselves on the blacklist if they have understated their tax by £25,000 or more.
Buy to let landlords are being urged to come forward if they have undisclosed income. The revenue detail that this will mitigate penalties which may apply to those who have unpaid tax in the past.
Th eInland Revenue is wanting additional powers which would compel letting agents to reveal details of all previous clients whether they were let only or management clients.
Peter Bolton King states "while this push by the revenue has the potential to catch a lot more landlords out it will also create more work for agents in terms of their record keeping"
If the Revenue obtain these powers they could be in force by the beginning of the next tax year. The revenue are also searching for blacklist powers. Landlords could find themselves on the blacklist if they have understated their tax by £25,000 or more.
Buy to let landlords are being urged to come forward if they have undisclosed income. The revenue detail that this will mitigate penalties which may apply to those who have unpaid tax in the past.
Tuesday, 7 July 2009
rental woes revealed
The Association of Residential Letting Agents has revealed that two thirds of its members have reported a rise in the number of tenants having difficulties paying their rents over the past six months.
Landlord Assist are in agreement with the research and confirm that their business levels are significantly up on last year.
Landlord Assist are keen to work with more letting agents throughout the United Kingdom and accordingly await their call!
Landlord Assist are in agreement with the research and confirm that their business levels are significantly up on last year.
Landlord Assist are keen to work with more letting agents throughout the United Kingdom and accordingly await their call!
Saturday, 4 July 2009
The receivers Viewpoint
Denise Ford, Chair of the Association of Property and Fixed Charge Receivers says "I have heard of courts granting possession orders and evicting tenants mid way through their tenancy. That is not legal, provided the tenants are paying their rent and abiding by the terms of the tenancy. They should go to the court hearing and object"
Of course there is the tricky situation of cases where the borrower has not informed the lender that the property is rented out. In these cases the tenancy agreement is often not binding on the lender and the tenant can find themselves without much to fall back on.
Of course there is the tricky situation of cases where the borrower has not informed the lender that the property is rented out. In these cases the tenancy agreement is often not binding on the lender and the tenant can find themselves without much to fall back on.
Renting to Under 18s
A case has recently been through the Court of Appeal .
A local authority made the mistake of entering into a standard tenancy agreement with a minor and when the minor fell behind with the rent and refused to vacate the property the local authority took the matter to Court.
The Court of Appeals ruled that because an ordinary agreement had been entered into, the landlord was acting in the capacity of trustee for the child and it was therefore a breach of that trust to seek to evict them. In a further twist the court ruled that notice to quit served on the tenant was ineffective because as trustee for the child the landlord should have served the notice on themselves.
The changes in care arrangements for minors mean that many local authorities are encouraging minors to enter into private tenant agreements.
A local authority made the mistake of entering into a standard tenancy agreement with a minor and when the minor fell behind with the rent and refused to vacate the property the local authority took the matter to Court.
The Court of Appeals ruled that because an ordinary agreement had been entered into, the landlord was acting in the capacity of trustee for the child and it was therefore a breach of that trust to seek to evict them. In a further twist the court ruled that notice to quit served on the tenant was ineffective because as trustee for the child the landlord should have served the notice on themselves.
The changes in care arrangements for minors mean that many local authorities are encouraging minors to enter into private tenant agreements.
Tolerated trespassers
For about 10 years the courts have had to ensure the tolerated trespasser concept following the decision of Burrows v Brent London Borough Council.
This concept has been removed largely as a result of Schedule 11 to the Housing and Regeneration Act 2008. From that date there can be no tolerated trespasser and many existing tolerated trespasser were automatically granted replacement tenancies.
One recent case is the Appeal ruling on Austin v Southwark London Borough Council where it is determined that where a tolerated trespasser has died prior to 20 May a family member cannot succeed to the former tenancy.
This concept has been removed largely as a result of Schedule 11 to the Housing and Regeneration Act 2008. From that date there can be no tolerated trespasser and many existing tolerated trespasser were automatically granted replacement tenancies.
One recent case is the Appeal ruling on Austin v Southwark London Borough Council where it is determined that where a tolerated trespasser has died prior to 20 May a family member cannot succeed to the former tenancy.
Friday, 3 July 2009
Help for tenants in arrears
A programe has been launched in Norfolk to assist those who are struggling to stay on top of their rent.
The Housing Arrears Pre Action Scheme means that people building up arrears of rent are identified by Norwich City Council and invited to meet with an advisor from the Norfolk Community Law Service to find a solution to avoid eviction where possible.
The scheme apparantly involves liaising with the landlord to reach an agreement together with assistance in claiming any benefits that they may be entitled to.
Landlord Assist have not been approached with regards to this scheme however would be happy to be engaged by Norwich Council to offer advice and assistance to Landlords whose tenants are being aided by this scheme.
If anyone from Norwich Council is reading this we would be pleased to hear from you!!
The Housing Arrears Pre Action Scheme means that people building up arrears of rent are identified by Norwich City Council and invited to meet with an advisor from the Norfolk Community Law Service to find a solution to avoid eviction where possible.
The scheme apparantly involves liaising with the landlord to reach an agreement together with assistance in claiming any benefits that they may be entitled to.
Landlord Assist have not been approached with regards to this scheme however would be happy to be engaged by Norwich Council to offer advice and assistance to Landlords whose tenants are being aided by this scheme.
If anyone from Norwich Council is reading this we would be pleased to hear from you!!
Widow loses deposit case
An 81 year old landlord suffering from dementia was sued in court relating to a tenant deposit.
The court in favour of the tenants even though the deposit had been protected. The claim related to the fact that the prescribed information had not been supplied to the tenants.
Section 214 of the 2004 Housing Act allows tenants to raise claims against their agent or landlord however in this case the landlord was sued for three times the value of the deposit plus costs and interest.
The landlord now needs to pay the judgement award within 30 days.
Landlord Assist offer free, no obligation advice on all landlord and tenant matters including tenancy deposit legislation. They can be contacted at 08707 662288 or info@landlordassist.co.uk
The court in favour of the tenants even though the deposit had been protected. The claim related to the fact that the prescribed information had not been supplied to the tenants.
Section 214 of the 2004 Housing Act allows tenants to raise claims against their agent or landlord however in this case the landlord was sued for three times the value of the deposit plus costs and interest.
The landlord now needs to pay the judgement award within 30 days.
Landlord Assist offer free, no obligation advice on all landlord and tenant matters including tenancy deposit legislation. They can be contacted at 08707 662288 or info@landlordassist.co.uk
Wednesday, 1 July 2009
Landlords Beware!
There is a new scam on the internet relating to rented property.
Landlord Assist are aware of reports asking prospective tenants to demonstrate they can afford to pay a deposit by transferring money to a friend or relative using a money transfer agent.
We understand that they are then asked to send a scanned copy of the transaction receipt as proof which is then used for the criminal to collect the money before the friend or relative does.
Landlord Assist urges Landlords and tenants to be vigilant and enquire of a prospective landlord how the deposit will be administered.
Landlord Assist are aware of reports asking prospective tenants to demonstrate they can afford to pay a deposit by transferring money to a friend or relative using a money transfer agent.
We understand that they are then asked to send a scanned copy of the transaction receipt as proof which is then used for the criminal to collect the money before the friend or relative does.
Landlord Assist urges Landlords and tenants to be vigilant and enquire of a prospective landlord how the deposit will be administered.
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