Tag Archives: Landlord

Landlords take keen interest in HMOs

Landlords have a larger appetite for HMOs in a bid to boost their rental income by targeting young professionals and students, according to a report. Multi-Let UK says it has seen a 150% rise over the past year in investors looking to purchase HMOs and multi-lets. A sister company has also seen a 300% year-on-year rise in potential investors paying to join a waiting list that flags-up refurbished and available HMO properties. One reason for the growth is the incoming tax rises and changes to tax relief as well as the new stamp duty rules and the tightening of buy to let mortgage lending which will see landlords struggling to make profits. The managing director of Multi-Let, Daniel Hill, said: “Investors recognise the opportunity to boost their rent from a property that is home to multiple occupants and who pay rent separately. The attraction of HMOs   “The tax hikes for investors and landlords have made them look again at portfolios and how to boost rental income and profits. The attraction of HMOs is rent does not need to be raised if the profitability of lots of tenants is higher than a standard property.” However, he highlighted that HMOs are […]

Evictions in England and Wales rise by 5%

The number of tenants evicted from rented homes in England and Wales in the first quarter of 2016 has risen by 5%, according to new figures. However, the Ministry of Justice (MoJ) says that repossession rates for those who own their homes has now fallen to a record low. The figures reveal that there were 10,732 repossessions granted to landlords of rented homes between January and March, compared to 10,253 repossessions in the final quarter of last year. The MoJ also reveals that record numbers of tenants are being forcibly evicted by bailiffs with 42,728 being removed from rental properties in 2015. The lack of affordable homes to rent   The reasons for the rise include the lack of affordable homes to rent and cuts in welfare payments with more than half of the evictions being brought by private landlords. PropertyLetByUs, an online letting agent, has also revealed in a survey that one in four landlords with buy to let property have had to serve an eviction notice in the last year a tenant. In addition, 5% of landlords had to pursue their eviction through the courts. The firm’s managing director, Jane Morris, said: “Landlords increasingly face rent arrears because […]

Top renting group revealed to be families

The UK’s most common household type for renting in the private sector has been revealed to be families for the first time. The findings come from the National Landlords’ Association which shows that increasing numbers of landlords are now letting homes to families with children. They now make up 48% of the sector. Families are followed closely behind by young couples who account for 47% of the private rented sector. The research reveals a shift over the last four years when young singles made up 53% of the private rental market, followed by young couples and then families with children. Nearly 5 million households in the private rented sector   The NLA also reveals that there are nearly 5 million households in the private rented sector and, according to the English Housing Survey, the proportion in the sector that are families has risen to 37% last year, from 30% in 2005. The NLA’s chief executive, Richard Lambert, said the research revealed the contrast between the belief that renting is only a stopgap and something ‘to be tolerated’ until the renter bought their home and the modern trend of renting because people cannot afford to buy. He added: “There is, however, […]

Top cause of stress for landlords revealed

One of the main causes of stress and worry for the UK’s landlords has been revealed as the controversial ‘Right to Rent scheme’, says a new study. In a report from letting agents PropertyLetByUs, they say that the legislation causes stress for one in three buy to let landlords and for those who have properties in areas with high numbers of immigrants, the situation is acute. Indeed, landlords in London, the West Midlands, the South East, the North West and in the East of England are said to be those suffering the most with the new law. The next stressful problem for landlords is dealing with tax issues with HM Revenue and Customs, then it is raising finance for their portfolio and then having to deal with tenant complaints and problems with void periods. The number one issue for causing stress and worry for landlords   However, according to the study, the number one issue for causing stress and worry for landlords is having to deal with rent arrears and arranging for property repairs. The research also reveals that landlords believe they are paying more than they should do for tenant reference checks which they are now required by law […]

Pensioner buy to let landlords ponder selling-up

Despite offering a valuable retirement income, more than 40% of retiree landlords are considering off-loading their buy to let property, according to a survey. Responsible Equity Release also found that seven in 10 pensioner landlords said that without their rental income they would struggle to get by. More than 1,000 retired people who owned a rental property were surveyed and 92% of them said mortgage interest relief changes would have an impact on their profits. The situation is so worrying, says the firm, that pensioner landlords are now wondering whether it is worth hanging on to their buy to let property at all. Pensioners with a buy to let property   The firm’s managing director, Steve Wilkie, said: “For a lot of pensioners their buy to let property has helped because of low interest rates while savings have struggled and attract little interest, their property income is strong. “Many say they would really struggle to make ends meet without their buy to let income boost.” He said that it appeared the Chancellor George Osborne has forgotten that his new tax on buy to let properties will not affect wealthy landlords. Mr Wilkie added: “The changes will hit hard-working honest people […]

Landlords urged to check their tenancies are ‘compliant’

Landlords are being urged to check that their tenancy agreements are legally compliant after an investigation revealed that one in 10 landlords do not have any form of legal contract with their tenants whatsoever. The findings come from insurance firm Direct Line for Business who say that landlords may be unknowingly using tenancy agreements for tenants to sign that are not legally compliant. Of the landlords questioned, 58% said they were using modified agreements based on an old letting agent’s agreement, while 38% used tenancy agreements from other landlords. Landlords are using a tenancy agreement they found on the Internet   However, 20% of landlords are using a tenancy agreement they found on the Internet. Direct Line says that from its investigation it is apparent that when landlords start out they utilise the services of letting agents and then use their original tenancy agreement as a template when renewing a tenancy. The lack of having a legally reviewed tenancy agreement might help explain why 13% of landlords confess to having difficulties with disputes that arise from a tenant’s agreement, says the firm. The survey also reveals that 9% of landlords admit to not telling their tenant that they were legally […]

Serious rent arrears in decline

Landlords around the UK are seeing the number of tenants who are in serious rent arrears beginning to fall, according to a tenant arrears tracker. The data from estate agents Your Move and Reeds Rains reveals that in the fourth quarter of last year, around 1,500 tenants moved out of serious rent arrears compared to the third quarter. The tracker reveals that this is a 1.5% improvement over the quarter and is a reverse of the worst arrears trend seen in early 2015. When all private rented households are taken into account, just 1.6% are considered to be in serious rent arrears. In comparison, in the first quarter of 2008 there were 2.9% of tenants in serious rental arrears which was a record high. ‘Unlikely an individual tenant will fall into serious rent arrears’   Adrian Gill, a director of Your Move, said: “It’s extremely unlikely an individual tenant will fall into serious rental arrears and the proportion of those renting who get behind on rent payments has dropped considerably. “The numbers are going the right way too and there are fewer people at risk from the consequences of not paying their rent which is great news.” Alongside this, the […]

Most tenants say they are happy with their landlord

When asked if they are happy with their landlord, 80% of tenants told researchers that they were. In the survey undertaken by Paragon Mortgages, the tenants also revealed their fears that their landlord may end their tenancy for nearly half of them much sooner than their agreement runs for. Three quarters of tenants said they were renting a property because they could not afford to buy a house and 40% said they have no plans whatsoever to buy property and were resigned to living in private rental accommodation. The managing director of Paragon, John Heron, said: “The survey reveals that for many people, living in private rented accommodation is increasingly attractive for the long term. “This reflects the issue of affordability in housing however best practice and competition are pushing up standards for tenants.” He added that their survey has also revealed how important the UK’s private rented sector is to the housing market but it still needs to mature before catching up with its European counterparts. Tenants satisfied with affordability and standards   Mr Heron said: “There is room for growth in the sector with tenants satisfied with affordability and standards.” The survey revealed that the average length of […]

BTL landlords ‘don’t assess true costs’

The boom in the buy to let sector is seeing growing numbers of landlords not assessing properly the true cost of their outgoings, says one BTL specialist firm. According to Platinum Property Partners, this means the landlords have no idea about whether a property investment will be profitable or not. In addition, around half of buy to let landlords fail to calculate the cost of any potential repairs to the property as well. From a study by the firm, they have calculated that the gross average cost for a buy to let property the UK is £8,359 every year. This figure is calculated by considering letting agent fees, property repairs as well as mortgage interest. Landlords may be overestimating their potential returns   Platinum is claiming that landlords may be overestimating their potential returns on a property investment by 50%. They say that the best way of gauging an investment’s performance is to use either a return on equity or a return on investment calculation. By doing so, a landlord will factor in the potential gross profit, the capital gains and all associated costs that come with maintaining a buy to let property. The study has also revealed that many […]

Landlords increasingly looking to sell up

A new sentiment survey of landlords has revealed that a growing number of them are looking to sell their properties because of the upcoming buy to let tax relief changes. The sentiment survey from Your Move and Reeds Rains says that the tax change is a ‘major concern’ for landlords and 23% say that now is a good time to sell their rental properties. In addition, landlords also say that letting a property will be less profitable when the tax reforms take effect from April 2017. However, 31% of landlords believe that now is a good time to expand their buy to let portfolio though 44% say that buying rental properties is now more complicated. With the ‘Right to Rent’ checks coming in next year, nearly 20% of landlords said they would be daunted by the prospect and don’t feel experienced enough to let their properties without the support from a letting agent. Landlords say that the laws for rental properties have become more confusing   Another 24% of landlords say that the laws for rental properties have become more confusing and, alarmingly, 11% say they do not understand current regulations. A director of Reeds Rains and Your Move, Adrian […]