Students: The Market to Target for Landlords or not?
Not enough to go round
Budget Support for Privated Rented Sector Welcomed
One of the country’s leading landlord organisations is today welcoming Government measures to support growth in the private rented sector which it says will help encourage greater investment to meet increased demand.
The Residential Landlords Association (RLA) particularly welcomes changes to stamp duty which will in future allow buyers to opt to pay the rate determined by the average value of multiple dwellings purchased at the same time rather than on individual properties. This will encourage more transactions, boosting supply, standards and construction jobs as it is usually the case that renovations take place when properties are acquired.
30.3.11
The RLA also keenly anticipates the detail of changes to be made to Real Estate Investment Trusts (REITS) designed to make them easier to establish and more accessible to investors and so attract investment in larger private sector holdings.
Commenting on the Chancellor’s announcements, Alan Ward, Chairman of the Residential Landlords Association, said:
“We welcome the Government’s efforts to support growth in the private rented sector which the RLA have long been calling for. However, further work is needed to address the inequitable tax treatment of the sector which is preventing the market operating effectively to boost supply at a time of increasing demand and consequential rising rents.”
The RLA represents over 15,000 private sector residential landlords in England and Wales. At a time when supply should be increasing to meet growing demand and take advantage of higher rents, available stock levels in the sector fell by 14.5% in the third quarter of 2010 compared with the second quarter. This led to rent increases over the same period of 1.4%. (Findaproperty.com Rental Index – September 2010).
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Renting More & More
Renting is becoming increasingly popular, according to research by the Association of Residential Letting Agents.
In ARLA’s survey of Q4 2010, 71% of landlords asked said they felt renting was more popular now than a year ago. In Q4 2009, the figure was just 35%.
And, when asked about attitudes to renting and whether consumers would rather buy than rent, the majority of respondents (67.2%) felt that people were being forced to rent – a slight drop on the previous quarter (71.6%), but still up on Q4 2009 (54.2%).
Ian Potter, operations manager of ARLA, said: “Our research suggests that, while more and more people seem to be renting post-recession, for many this is through need rather than choice – a trend that will likely continue as long as the demand for homes outstrips supply.
“Further, with the average age to buy a first home now reported to be 35, it’s also possible that renting will become the norm for more people than ever before.
“What is important for both ‘reluctant tenants’ and those who rent by choice, is to conduct thorough research before making a move. While there are many benefits to renting or letting a property, as there is no Government-led regulation, things can and do go wrong.
“If you’re letting or renting a property through an agent, check that the agent is a member of an organisation such as ARLA, which ensures landlord and tenant money is protected by a client money protection scheme.* ARLA agents are also required to be members of an ombudsman scheme which can offer redress if things to go wrong.
28/02/11
Click to read more...Renting Is The Future - Property Ownership At A Low
BPF call to emulate US and Europe as rentals surge and ownership falls. Home ownership has fallen to its lowest level in 20 years – and the number of rented homes is on the rise, prompting a call from the British Property Federation “a more professional rental market”.
According to the English Housing Survey, commissioned by the Department for Communities and Local Government just 67.9 per cent of English households own their home, the lowest percentage since 1991,
There was a decrease in the number of owner-occupied households from a peak of 14.8 million in 2005 and 2006 to 14.6 million in 2008-09.
In contrast, the number of households renting privately has surged by one million since 2001, from 2.1 million to 3.1 million in 2008-09.
Private rented sector housing has accounted for nearly all household growth over the past decade, with 1.1 million additional households in the sector compared to 2000. The sector is up from 13.9% of households in 2008 to 14.2% in 2009.
There are almost as many families with children in the private rented sector as there are in the social rented sector, with the latter dominated by retired people and lone parents.
Only 11 per cent of private renters are dissatisfied with their accommodation, compared with 16 per cent of social renters and there are twice as many people in full time work in the private rented sector as in social renting.
The British Property Federation now wants to see a more professional rental market emerge like that enjoyed by Europeans and Americans, where large rental blocks exist. The industry body says this will improve quality and choice.
Liz Peace, chief executive of the BPF, said: “We’re seeing massive demand for private rented housing in the wake of crippled mortgage markets and soaring levels of people who cannot afford to buy.
“The Government must do something to deal with this demand or we will end up with the crisis getting far worse.
“We should look at the housing models adopted in the USA and Europe where renting is socially acceptable and standards are higher because their governments have embraced professional corporate landlords.”
21/12/10
Click to read more...Rents still on the Up!
The latest RICS Residential Lettings Survey published this month has shown that a falling supply of new property to the rental market coupled with increased demand led to a rise in rents in the last three months and it does not show signs of stopping.
39 per cent more surveyors reported seeing an increase in rents over the three month period. The net balance reading is now at its highest level since Q2 2007 as increasing numbers turn to the rented sector. Many are seeking to rent rather than buy due to difficulty in securing mortgage finance and the high deposits required by lenders. As a result, surveyors report the rental market remains buoyant, with properties being let very quickly and landlords experiencing very few voids. Demand for rented property continues to be very strong, with houses being slightly more popular than flats.
New landlord instructions ─ a good indication of supply to the market ─ slipped further, marking five consecutive quarters of falling instructions. Respondents report that difficulty in securing buy-to-let mortgages is holding back many would-be landlords, and a fresh supply of property entering the market. Meanwhile, renewed falls in the sales market saw fewer existing landlords choosing to sell their property at the end of a tenancy agreement.
Looking ahead, the outlook for rents over the next three months remains very firm. 34 per cent more surveyors expect rents to rise than fall, with the expectation that rents for houses will increase at a slightly faster rate than for flats.
Locally in Bournemouth, although we have not seen the dramatic rent increases that London has experienced, the demand for quality rental property is high. We have seen very few tenants vacating property in the last three month with most choosing to renew their tenancy and at an increased rent.
The future still looks bright for rentals and with the sales market still suffering, there are some fantastic rates of return available for the investor landlord. If you are thinking about buying-to-let or are looking for an agent to help with renting your property – give us a call on 01202 55 33 35.
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No crystal ball, I'm afraid
Looks like we’re going through another period of uncertainty, which is never good for markets.
Cuts on the way, and we will know a lot more about these and their projected impact over the next 4 years over the next few weeks.
The banks are not out of the woods yet and the West’s usual economic powerhouse, the United States, is still in the doldrums, leading some to predict a double dip. This is also leading to speculation that the UK may yet need more economic stimulus and perhaps gentler phased-in cuts.
The uncertainty is affecting the housing market with one of its biggest recorded falls for many years in September. With the house-price to household-income ratio still 50% above its long-term average, and prices currently only around 6% off the 2007 peak bubble price, there could be yet further to fall?
But, it’s not all doom and gloom for investor landlords: as prices fall yields strengthen. With interest rates likely to remain low for some time and rental demand underpinned by many positive factors, rental incomes remain relatively safe. Individual cases may vary though if tenant redundancies are involved, and these could be substantial following the cuts.
In times like this, with manageable interest rates and good tenant demand, landlords need worry about one thing only – rental income. So long as you manage properties efficiently, maintaining positive cash flow, adding to your portfolio cautiously when the right buying opportunities arise, you’re on the right track.
For more information about the best way to Buy-To-Let call the office today for some free advice.
28/10/10
Click to read more...LETTINGS STILL ON THE UP!
The lettings market remains buoyant in the South West with increased tenant demand and strong rents reported in the latest RICS Residential Lettings Survey.
44 per cent more chartered surveyors reported a rise in demand for property rather than a fall within the South West, compared to 26 per cent nationally. Tenant demand increased across most UK regions, but was strongest in London and the East of England. Continued difficulty in securing mortgage finance, worries over a double dip in housing and large deposits required by lenders are leading to higher numbers continuing to seek to rent rather than buy.
As a result, rents increased for the second consecutive quarter across the UK, with 27 per cent more surveyors reporting a rise in rents than a fall. Here in the South West 26 per cent more reported a rise, which was down slightly on the previous quarter (28 per cent) but shows continuing strong rents in the region. Just a year ago the picture was very different, as over supply pushed rents down and 29 per cent more surveyors nationally reported falling not rising rents.
Although interest rates are at a record low – making property a potentially attractive option for investors – difficulty in securing buy-to-let mortgages is contributing to the lack of supply. New supply of rentable property remains slow across much of the UK. However here in the South West activity increased with the net balance of surveyors reporting a rise rather than a fall in instructions up to 25 per cent from 11 per cent the previous quarter.
Existing landlords do not appear to be in any rush to dispose of their property; a net balance of just one per cent in the South West said they intended to sell their properties at the end of a tenancy agreement.Looking ahead, the outlook for rents remains positive. 38 per cent more surveyors expect rents to increase in the South West over the next quarter rather than fall, compared to 33 percent across the UK. Rents for houses are expected to marginally outperform flats, with the net balances for this forward looking indicator moving to +55 and +45 respectively in the region.
Will Gentle, manager of Burns Lettings commented:
The last three months have seen a significant improvement in the value of rents across the board with the number of new properties to let becoming available within Bournemouth at a low. We are seeing the sales market still suffer while the demand for quality rental property increases due to the ever increasing numbers of prospective tenants.
Existing landlords keen to expand their portfolio may still be struggling to access the necessary finance despite improved market conditions.
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LANDLORDS! Tenants Waiting
LANDLORDS! Tenants Waiting
Due to our recent marketing campaign we have registered a large amount of prospective tenants looking to move in the next few weeks.
Because of this we are in desperate need of new flats and houses to rent in the Bournemouth area.
If you have a property that you are looking to rent out or are unhappy with your current agent - give us a call.
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LANDLORDS - WORLD CUP SWEEPSTAKE!
Announcing the Burns Lettings World Cup Sweepstake!
The first 32 landlords that instruct Burns Lettings in the month of June will automatically get entered into our world cup draw and have the chance to win their let for free!
When you instruct Burns Lettings to let your property a qualifying team will get drawn out of the hat on your behalf. If this team goes on to win the World Cup, Burns Lettings will let your property for free*.
Or
If your team makes it into the last 8 then you will receive a 25% discount on fees**.
Have you got an empty property? Are you unhappy with your current agent?
Call us today!
*6 months of management only
**discount on standard management fee
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Burns Lettings Introduces Photographic Inspections
Burns Lettings Introduces Photographic Inspections
In an effort to provide more information to their landlords, Burns Lettings have just introduced comprehensive photographic reports on their managed properties. Many agents locally offer property inspections during a tenancy however Burns Lettings believe that they may be the only agent in the area to offer this extra service to their landlord for free.
William Gentle, Branch Manager at Burns commented ‘As part of our standard managed service we have always inspected our properties once every three months and sent our landlords reports on how their tenants are keeping the property as well as any maintenance issues that have been noted during the visit. Now we are going one step further by actually providing our clients with photographic evidence of the condition of the property. Recently we had a leak into a property and the landlord lived abroad. With photographic reports he was able to see the extent of the damage and what works needed to be completed. Once the works have been done he will get another inspection report which will include photographs of the repairs.’
For more information about a different standard of letting and property management services call Burns Lettings on 01202 55 33 35.
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LANDLORDS!
More Properties Wanted!
We have recently expanded our lettings department and had an extremely busy start to the year, due to this we are looking for more quality rental property to let and manage.
For a professional, no-nonsense and flexible letting service please call us now on 01202 55 33 35 for your no obligation market appraisal.
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BURNS COMPASS POINTED AT SUCCESS
BURNS COMPASS POINTED AT SUCCESS
Burns Lettings have been recently featured in the Dorset Compass Magazine as a local agent of authority advising landlord on the current lettings and buy to let market.
Lettings: tenants
The lettings market is proving to be resistant to the downturn with demand from tenants for quality properties still strong as many prefer to rent in the current market rather than commit to buying. Tenants are becoming more discerning however, demanding more for their money today than in previous years.
‘From a lettings point of view, the increase in demand we are starting to see should bring with it stable rents,’ explains Will Gentle, manager of the lettings department at Burns Lettings, Bournemouth. ‘Although we saw rents fall slightly last year, we’re already seeing prime locations picking up and benefitting from better rents.’
Buy to let: landlords
For investors, however, the Buy-To-Let market has still not recovered as lenders are still nervous about lending to investors without them putting down much larger deposits.
With house repossessions at their highest for 14 years (46,000 homes were repossessed in 2009, according to the Council of Mortgage Lenders), there’s a shortage of funds for landlords, even for sound ones keen to grow their property portfolios.
This means that the first time buyer market of smaller, affordable studio and one-bedroom properties is short on purchasers. So Will suggests that for those well positioned to place those deposits this is a good time to buy. ‘There are opportunities out there for investment with good rates of return,’ he comments.
He is also urging landlords to be more open-minded about the financial position of some tenants. ‘Unemployment remains a challenge and some tenants may well not have a spotless credit history. This doesn’t mean that they’re necessarily higher risk, but it’s worth putting extra safeguarding measures into place for some extra peace of mind. We’ve just introduced Rent Guarantee as an option for all our landlords which would remove much of the risk.’
Overall Will is confident that the outlook for 2010 is a good one.
'We will continue to see a positive rental market but only for those properties that are of a good standard. Poorly presented properties with shabby furniture or decoration will struggle to find tenants.’
Lettings market: agents
Will continues, ‘We may however see more agents, ones who started to dabble in the lettings market when the sales market first turned, giving up and returning to sales or folding – so I would urge landlords to choose a reputable, established agent.
‘As long as lenders make it difficult for first time buyers to get their first foot on the ladder, we will almost certainly continue to see more sharers, especially those who are renting for the first time, in order to spread the costs.’
The right property will attract the right tenant and property, if landlords and prospective landlords take advice, continues to be a strong investment in the current market.
08/03/2010
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LANDLORDS! Tenants Waiting
Landlords! We have tenants waiting!
Due to our recent marketing campaign we have registered a large amount of prospective tenants looking to move in the next few weeks.
Because of this we are in desperate need of new flats and houses to rent in the Bournemouth area.
If you have a property that you are looking to rent out or are unhappy with your current agent - give us a call.
Updated 25/02/10
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Word On The Street
The lettings market is proving to be resistant to the downturn with demand from tenants for quality properties still strong as many prefer to rent in the current market rather than commit to buying. Tenants are becoming more discerning however, demanding more for their money today than in previous years.
‘From a lettings point of view, the increase in demand we are starting to see should bring with it stable rents,’ explains Will Gentle, manager of the lettings department at Burns Lettings, Bournemouth. ‘Although we saw rents fall slightly last year, we’re already seeing prime locations picking up and benefitting from better rents.’
19th Feb 2010
Click to read more...There May Be Trouble Ahead.....
It seems that almost every analyst, lender and agent warns that while top homes in London and the country may hold their value, most others will experience 2010 price falls of up to 10 per cent.
There will be relatively few sales, too. Top-end purchasers are likely to sit tight until after the May election and some deals, mainly in central London, may collapse if they were relying on City bonuses that are now being taxed or scrapped. "The attack on high-value bonuses has the potential to hit that sector of the housing market hard, at least in the short term," says Ray Boulger of mortgage broker John Charcol.
07/01/2010
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London sucess will filter down
With the most intensive part of the recession and credit crunch now seemingly overcome at a national level, the London property market is showing a signs of economic recovery, as the last quarter of 2009 saw increased confidence in sales. Houses for sale have been coming onto the market at a much greater pace, with vendors realising that sales are becoming both more profitable and turning over more efficiently
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LANDLORDS PUSH FOR CHANGE
Recent changes introduced in April 2008 mean that Local Housing Allowance is now paid directly to the tenant. Before that date tenants and landlords could agree that benefit was paid direct to the landlord – very important since it avoided the tenant getting into arrears.
The National Landlords Association wants to see the recent changes reversed as soon as possible as an increasing number of tenants are claiming Local Housing Allowance but are not passing it on to their landlords and arrears have been rising.
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New Website Sucess!
Burns are pleased to announce the successful launch of their new website, which has been under development
for the last few months. ‘During the development we had to take into account the fact that 80% of applicants start their search
online’ commented Will Gentle, Manager of the lettings office, ‘The rest of the site was built around this core objective, allowing tenants to find the right
property for them easily and show that property off in its best possible light.’
The site allows multiple photographs for each property allowing tenants to see much more detail before they come to view. This coupled with the sites links
to mapping software and direct contact with the office either by phone or email will give Burns the edge over many other agent’s websites. ‘We felt the
site had to not only look good, but be easy to use and tenant friendly.’ ‘We are confident that this new site will encourage more
tenants to register with us and increase our database of already prequalified applicants’.
The site also gives landlords further information on the letting department and the block management side of the business.
Click to read more...Picking up for buy to-let investors
Since the property sales downturn at the end of 2008 the lettings market has seen continuous growth as people are choosing to rent rather than buy. The uncertainty in the sales market has only benefited the rental segment seeing tenant demand for quality properties to take on long term lets increase. In fact arecent ARLA survey reported that the average tenancy lasts over 18 months and across their members tenant enquires rise by almost 25% in the first quarterof 2009. This desire to remain inproperties coupled with a dip inbuy-to-let sales at the end of 2008 has left rental property inhigh demand. Latest figures from the Council of Mortgage Lenders showed 21,600 new buy-to-let loans were advanced in the three months to the end of June, encouraging signs that the buy-tolet market is beginning to find its feet. "This is confirmation that things are starting to pick up for buy to-let investors," said Ian Potter, Operations Manager of the Association of Residential Letting Agents.
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