Tag Archives: real estate
Only a minority of UK landlords experience disputes with damage top of the list
Over the last 12 months under 10% of UK landlords have experienced a tenant dispute but when it does happen it usually concerns damage, new research has found. Of the minority who had problems some 66% opted to settle the dispute in court, while 34% managed to resolve issues without the help of the legal system, according to the study by inventory service provider My Property Inventories. Damage to property was the number one dispute, accounting for 58% of problems, followed by redecoration at 51% and cleaning and rent arrears at 42%. ‘It is so important that agents and landlords ensure they have all the right documentation and evidence to improve their chances of resolving or winning a dispute,’ said Danny Zane, director of My Property Inventories. ‘Unfortunately, landlords are losing disputes because they can’t provide the right evidence to show that a tenant has damaged the property. For example, some landlords are failing to put a letting contract in place, or they have very unfair clauses in the contact. Other landlords don’t conduct an adequate check-in and check-out, or don’t keep copies of correspondence with the tenant which could be evidence in a dispute,’ he explained. ‘Normal wear and tear is a fact of life with rental properties, but if landlords and agents wish to avoid the hassle of arguments over who is responsible for damage, they need to prepare a thorough inventory of the condition of the property, that details the condition of everything in it,’ he added. He pointed out that usually tenants are aware that they have caused actual damage to a property and will try to hide it. ‘Hence it is vital that landlords and agents ensure that there is a thorough examination of the property and its contents to identify any damage at the check-out,’ said Zane. ‘If landlords have a thorough and detailed inventory, it will enable both parties to be treated fairly and reasonably. By opening a dialogue with tenants and using an independent inventory clerk, disputes can be resolved quicker and without the hassle that is often experienced at the end of a tenancy period,’ he added. The firm says that the more detailed the inventory the better. There should be dated photographs of the garden, the interior of the shed or garage, inside of the oven and keys handed over to tenants as these are the main areas of problems that occur and are often down to misinterpretation at the end of a tenancy. ‘Remember, you don’t need photos of every single corner of the property. Stick to the important things. Don’t try to produce a completely photographic or filmed inventory without a complete written accompanying inventory,’ the firm says. Landlords should also make sure their property is fit for letting. On check-in day the place should be completely clean and any garden areas… Continue reading
Intermediaries remain the most popular choice for buy to let investors
UK landlords sourcing buy to let finance from intermediaries has increased as they regard it as the best way to secure a good deal, new research suggests. There has been a 6% increase in landlords who prefer get property finance from intermediaries and large scale landlords more likely to make exclusive use of intermediaries, according to the latest report from specialist buy to let firm Paragon Mortgages. The Private Rented Sector Trends survey, which has been tracking landlord confidence and views on the buy to let market for 20 years, also shows that 60% of landlords agree intermediaries are valuable in finding the best buy to let deals. More than a third, 36%, of landlords in the fourth quarter of the year preferred to source buy to let finance exclusively via intermediaries, a 6% increase over the past three months, up from 30% of landlords in the third quarter. In comparison, 23% of landlords in the last quarter of 2014 preferred to source buy to let finance directly from lenders, and 23% sourced through a mix of intermediaries and lenders, which reduced from 28% in the third quarter. Large scale landlords, those with five or more properties, were more likely to prefer to source all their buy to let finance via intermediaries at 40% compared with 23% of small scale landlords. Small scale landlords on the other hand were almost twice as likely to source buy to let finance directly through a lender at 35% compared with 19% of large scale landlords. Some 60% of landlords agreed that intermediaries provide a valuable service in finding the best buy to let deals, in comparison with only 6% who disagreed. Additionally, 42% of landlords surveyed said that sourcing directly though a lender is only suitable for the simpler buy to let propositions. ‘Although the market has seen strong growth this year, many landlords remain cautious, particularly in view of interest rate expectations, the weaker conditions that we have seen in the housing market and the disruption we are likely to see around the general election in 2015,’ said John Heron, managing director of Paragon Mortgages. ‘When combined with the positive benefits that professional mortgage advice can bring, it is no surprise to see landlords turning more to the intermediary sector in less certain times,’ he pointed out. ‘Landlords, especially those newer to the market, recognise the benefits of using a trusted, experienced and knowledgeable broker to help source their finance. Brokers have always been key to the buy to let mortgage market and will continue to be, going by this research, for as far ahead as we can see,’ he added. Continue reading
New starter home initiative announced by UK government
A new scheme offering 100,000 first time buyers in the UK new homes with a 20% discount has been announced by the Prime Minister as part of a major push to help people onto the housing ladder. Aspiring home owners will be asked to register their interest in buying via the Starter Home initiative from the start of next year, an initiative that has been brought forward by at least six months earlier than planned. There will be a change to the planning system to free under used or unviable brownfield land from planning costs and levies in return for a below market value sale price on the homes built on the site. Developers and councils are being asked to respond to the proposals to ensure the changes will unlock a range of sites across the country. Many of the country’s leading house builders and councils are already looking at sites that could be used for new homes. The 100,000 homes will be available to first time buyers under the age of 40 as part of the initiative and work on the first raft will start next year following a consultation period that is due to end on 09 February 2015. At the heart of the Starter Homes initiative is a change to the planning system. This will allow house builders to develop under-used or unviable brownfield land and free them from planning costs and levies. In return, they will be able to offer homes at a minimum 20% discount exclusively to first time buyers under the age of 40. Currently, builders can face an average bill of £15,000 per home in Section 106 affordable housing contributions and tariffs, often adding tens of thousands to the cost of a site. Under the proposals, developers offering Starter Homes would be exempt from those Section 106 charges and Community Infrastructure Levy charges. The homes could then not be re-sold at market value for a fixed period, making sure that the savings are passed onto homebuyers. Already leading house builders, including three of the nation’s largest and councils from up and down the country have pledged their support for the initiative, which will bring much needed homes onto sites that have previously been deemed unviable and are lying unused. More than 30 house builders have said that that they support the plans and would consider bringing forward land to develop the new, discounted houses, from next year. A new design panel, including world famous architects such as Sir Terry Farrell and Sir Quinlan Terry will be established to ensure that new homes are not only lower cost but also high quality and well designed, giving hardworking house buyers attractive homes that meet the demands of modern life. ‘Hard working young people want to plan for the future and enjoy the security of being able to own their own home. I want to help them do just that. Under this scheme, first-time buyers will… Continue reading
