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and tenant's expectations.
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members of the Association of Residential Lettings Agents (ARLA)
and The Property Ombudsman (TPO) we adhere to a strict code of
conduct and guidelines, following a set frame work within which
member agents must operate.
No matter if
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you will appreciate our exceptional knowledge of the rental market
and our impressive customer care skills.
Orchard Property
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are based in Uxbridge West London and letting properties predominantly
throughout Middlesex, Berkshire and Buckinghamshire.
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29%
of landlords recorded growing levels of tenant demand during
he second quarter of the year, compared to 10% who said
it was falling, according to Paragon Mortgages’ PRS Trends
Report.
This
compares to the first quarter of the year, when 24% of landlords
reported growing tenant demand and 8% reported falling levels
of demand. Tenant demand was stable for the 54% of landlords
during the second quarter, whilst 7% said they were unsure
which direction demand was heading.
Landlords
expect tenant demand to strengthen considerably: 35% of
landlords expect demand to be higher in 12 months’ time,
with 8% forecasting a decline.
Nigel
Terrington, Paragon Group chief executive, said: “Tenant
demand has been rising consistently for two years and shows
no signs of slowing down. Would-be home buyers continue
to be unwilling or unable to step onto the property ladder,
whilst longer-term social changes, such as greater numbers
of single person households and economic migrants, are also
creating more demand for rented property.
“Strong
tenant demand is great news for landlords, but will lead
to rental inflation for tenants unless the private rented
sector is able to expand to meet this demand. Pressure is
building on the finite number of properties in the sector
because the lack of buy-to-let mortgage availability has
prevented landlords from growing their property portfolios.”
There
was a significant increase in the proportion of landlords
planning to purchase, with 21% intending to purchase during
the third quarter of the year, up from 12% who said they
wanted to purchase in the second quarter.
Four
out of 10 landlords said that they attempted to secure buy-to-let
finance for purchase or remortgage purposes during the second
quarter, with 52% of those saying that it was more difficult
than previous attempts to secure finance, with just 13%
stating it was easier.
Landlords
said that a wider availability of mortgage finance, tax
incentives and sustained levels of tenant demand would encourage
further investment in the PRS. Just over four out of 10
landlords (43%) said they would like a better tax environment
to help expand their property business, with 45% calling
for the expansion of available mortgage finance.
Terrington
said: “It is clear that confidence is high amongst the landlord
community, which is reflected in the greater appetite for
investment. There is obviously a dislocation between landlords’
intention to purchase and their actual ability to do so
given the continued scarcity of buy-to-let mortgage finance.
However, PRS Trends confirms that landlords still value
residential property as an investment vehicle.”
64%
of the UK’s landlords feel more confident about the buy-to-let
market as we enter into the New Year, according to the latest
findings from Upad’s monthly Rental Confidence Index.
The
figure represents a 6% increase from the same survey that
was conducted in December 2009. Comments made by 2010 survey
respondents feeling more confident included: “More
repossessions, uncertainty with interest rates, difficulty
in getting mortgages all add up to an improved buy-to-let
market.”
“More
confident of buy-to-let in the New Year, more students looking
for rooms.” For the 36% who are feeling less confident,
statements included:
“Buy-to-let
mortgages are very difficult to get. Those available require
very high arrangement fees – around three percent, and or
low mortgage to value, or a high deposit.”
“Payments
of Housing Benefit going direct to the tenant is making
life very difficult?This is increasing voids and homelessness.”
James
Davis, founder and CEO of Upad, commented:
“The
results from this survey bode well for the private rental
sector, which, I believe, will see real growth during 2010.
This is a positive start after what has been a very difficult
period. “Many professional landlords are taking a medium-
to long-term view by taking advantage of purchasing deals
in the current economic climate. In doing so they run their
portfolio like a business, which will help to minimise unnecessary
void periods.”
65%
of consumers currently looking for new lettings accommodation
Landlords
and letting agents are experiencing high levels of activity
in the run up to Christmas according to a poll conducted
by lettingsearch.co.uk.
Sustained
high demand from current and potential tenants as Christmas
approaches is keeping landlords and letting agents busy,
greatly reducing the number of un-let properties and void
periods over the festive season, in contrast to the situation
in 2008.
While
December and January have traditionally been quiet, with
fewer people moving into new lettings accommodation, December
2009 is busy with tenants looking to move before the New
Year, when rents are widely expected to increase further.
Potential buyers continue to be cautious about committing
to a purchase as house prices look set to dip further, creating
additional demand for rental homes.
Phil
Calderbank, Director at lettingsearch.co.uk, comments: “All
signs are pointing to high levels of market activity right
up until Christmas itself, which is great source of seasonal
cheer for lettings professionals, allowing them to cut down
on void periods and in many cases achieve the best rents
possible for their properties.
“Current
tenants are looking to get a good deal on the rent while
they can, as supply continues to shrink and rents look likely
to continue on their upward path in the New Year. Buyers
are also playing a waiting game, choosing the lettings market
instead of sales, until mortgage lending improves.
“Such
strong levels of demand at this stage in the year suggest
that the lettings market is set for a year of sustained
recovery and consolidation in 2010.”
Almost
£5 million of deposits are still waiting to be claimed
by tenants, according to the Deposit Protection Service.The
DPS protects more than 480,000 of UK deposits. However,
more than 8,000 of them are waiting for the response of
the lead tenant before they can be repaid.
Kevin
Firth, director of the DPS, said: “We are committed to repaying
deposits as quickly as possible, but unfortunately, some
tenants are not keeping their contact details up to date
– resulting in this large number of unpaid deposits. Once
the tenancy has been registered with us, only the tenant
can update their details, for security reasons.
“I must
urge tenants to give us accurate and up to date information
to ensure that their deposit money can be returned as quickly
as possible at the end of the tenancy.”
The
DPS has undertaken a review of its processes in order to
make it easier to avoid deposits being held in limbo due
to tenants not responding.
Firth
added: “The review highlighted that if we had either a mobile
number or valid email address for the lead tenant from the
outset, the number of deposits held in limbo would be dramatically
reduced, providing a better service for both landlords and
tenants. This is part of our continuous efforts to speed
up the repayment process and reduce the number of outstanding
deposits.”
In order
to make a deposit repayment The DPS needs agreement from
both the landlord or letting agent and the lead tenant,
along with details of the correct payment method.
The
DPS will be introducing changes to the on-line service.
From 26 November, landlords will be required to provide
either a UK mobile phone number or a valid email address
for the lead tenant. One of these will be required as a
minimum (both would be ideal). However, if tenants do not
have any of this information then they should apply for
a paper deposit submission form.
Early
next year the DPS will also be introducing SMS text messaging
to alert tenants when a deposit repayment has been initiated
by their landlord or letting agent.
A boom
for buy-to-let - lettings?,
17 November 2009
The
recession could be over for the buy-to-let market, as mortgage
lending to the sector picks up once again and landlords
look to take advantage of more affordable property prices
and high tenant demand, says Lettingsearch.co.uk the online
lettings portal.
Buy-to-let
investors are beginning to fight their way back into the
property market as prospects for the sector improve following
a sustained period of restricted financing and, until recently,
weak rental yields. With banks finally increasing their
buy-to-let lending in quarter three, a period of sustained
investment in the industry is set to follow.
Many
professional landlords still have liquid cash available
to invest and are now likely to look to expand their portfolios
over the next few months, buying property at the more affordable
levels before prices climb too far. Investments in other
asset classes continue to under-perform, and as a result,
city bonuses will also be channelled into investment property,
bolstering the buy-to-let sector further.
Investment
in the sector will be underpinned by strong and rising tenant
demand for lettings accommodation, as homeowners and first
time buyers turn away from the sales market and will fuel
heightened activity in the property market as a whole.
Phil
Calderbank, Director at letting search.co.uk, comments:
"Mortgage lenders are once again recognising the important
role lettings has to play in the property market and as
investors with liquid cash make a move to take advantage
the affordable property, strong tenant base and improving
returns, I think we can safely say that the recession is
now over for buy-to-let."
"The
current rate of house building cannot meet the demand from
potential buyers, and while lending to homeowners remains
scarce and the uncertainty over unemployment looms on the
horizon, we will see people choosing lettings from every
rung of the ladder."
Decline
in number of accidental landlords,
10 November 09
The
trend for reluctant landlords appears to be coming to an
end as members of the Association of Residential Letting
Agents (ARLA) report a drop in rental properties coming
onto the market because they cannot be sold.
Here
are the key points of the report:
- ARLA
found that 80 per cent of its members' offices have seen
property being rented out rather than sold.
- This has dropped from a high of 95 per cent of offices
in November 2008 when consumer confidence and house prices
dipped.
- The markets for London and the South East are showing
particular signs for optimism with 72.5 and 78 per cent
of offices citing a decrease in reluctant landlords - both
down from highs of 92 per cent last year.
The
number of family houses being rented out has decreased from
72.5 per cent in November of last year to only 66 per cent,
but rentals for flats and studios have increased in the
same time frame.
Ian
Potter, Operations Manager of ARLA, said: "Many sellers
were left with little option other than to rent their properties
out earlier in the year but this trend seems to be slowly
diminishing.
"There
are, however, still a huge number of these reluctant landlords
in the market who need to understand the obligations of
a landlord to their tenants and the importance of choosing
a regulated and qualified letting agent."
Buy-to-let
market grows for first time in two years,
12 November 09
Gross
lending in the buy-to-let mortgage market grew in Q3 for
the first time in two years, according to data published
by the Council of Mortgage Lenders (CML).
At £2.1bn,
lending was 10% higher than in the previous three months.
Q3 2009 also saw a similar first increase in two years in
the number of buy-to-let loans advanced, from 21,600 to
23,700. However, the CML stated that the recovery in buy-to-let
lending was from a low base, with current lending volumes
sharply lower than their peak in 2007.
The
number of outstanding buy-to-let loans grew to 1,205,000,
representing 11% of all mortgages by the end of the quarter
compared to 1,180,000 three months earlier. The value of
outstanding buy-to-let mortgages increased by 2.5% to £144.2bn.
Within the buy-to-let market, both lending for house purchase
and remortgaging grew in the last three months.
As with
the mainstream mortgage market, however, house purchase
lending was stronger. Remortgaging capacity was constrained
by the unavailability during the quarter of any buy-to-let
mortgages at over 80% LTV. Landlords with existing mortgages
at a higher LTV are therefore effectively obliged to stay
on their existing lenders' reversion rates.
Low
borrowing costs also contributed to a continued improvement
in cases of buy-to-let arrears and an improvement in the
number of landlords facing enforcement action. For the third
quarter in a row, there was a decline in the number of buy-to-let
mortgages with arrears of more than 1.5% of the balance.
In the last three months, the number has fallen from 22,900
to 20,500, representing 1.7% of outstanding buy-to-let mortgages.
The
number of properties taken into possession rose in Q3, from
1,400 to 1,600, equivalent to 0.14% of all buy-to-let mortgages.
Over the same period, however, there was a sharp decline
- from 2,500 to 1,700 - in the number of arrears cases in
which a receiver of rent was appointed.
Michael
Coogan, director general of the CML, said that although
the recovery is modest, the figures show that buy-to-let
is here to stay. He commented: "Buy-to-let lenders
are among those facing some of the biggest challenges in
raising mortgage funding, so the improved figures are all
the more welcome. Future demand for housing in all tenures
supported by lenders will remain strong, despite mortgage
funding constraints and low construction rates."
Landlords
rewarded as rental market strengthens,
28 October 2009
Buy-to-let
landlords have been rewarded with rising rents and a dramatic
reduction in stock levels, according to the FindaProperty
October Rental Index.
FindaProperty
said rents climbed by 0.1% this month to £830. This
was the sixth consecutive month of stable or rising rents
as competition has increased among tenants who are seeking
homes. Stock levels have also reduced as the number of rental
properties on the market have plunged by 10% between September
and October, bringing supply back to the same level last
year.
Michael
O'Flynn, director at FindaProperty, said: "Buy-to-let
landlords have had a tough time over the last eighteen months,
but those who have managed to hang on in the rental market,
despite a dramatic oversupply of properties, falling rents
and rising unemployment among tenants, are now breathing
a sigh of relief." He added: "Rents are on a clear
road to recovery with six consecutive months of stable or
rising prices. Landlords could be set to enjoy a further
recovery in rents over the coming months."
Demand
in rental market returns since recession began,
6
October 2009
The
residential rental market is beginning to stabilise with
property oversupply decreasing across the UK and the number
of new tenancies increasing, according to the Association
of Residential Letting Agents (ARLA).
Results
from the latest ARLA survey of its members show that the
historical decline in numbers of tenants, which led to a
surplus of properties to rent, is coming to an end. 83%
of ARLA members signed up 10 or more tenancies during the
last quarter, compared to 79% last quarter. Each member
signed up an average of 36 new tenancies, compared with
32.6 last quarter.
Almost
a third of members (33%) surveyed felt that supply and demand
of properties is in balance; this compares with just 19%
last quarter. Ian Potter, Operations Manager of ARLA, said:
"This shift in the balance of supply and demand is
extremely significant for the private rented sector. It
gives further evidence to suggest that the property market
as a whole is getting back on its feet.
"This
shift also indicates that confidence is rising among prospective
tenants; it seems that people who delayed setting up home
12 months ago, now feel secure enough to proceed. Equally,
those who historically have shared a rental property seem
happy to set out independently." In
addition, the number of members who believe that there are
more residential properties available for rent than there
are tenants to fill them dropped significantly in the three
month period, from 70% to 43%. The number who say that there
are more tenants than properties has risen from 10% to 24%.
The
situation is particularly significant in the rest of the
South East, where three times as many members said that
there are more tenants than properties (27% compared with
9% last quarter). "This recovery of sorts is still
in its infancy and needs as much support as the Government
can muster. As we have stated repeatedly, a healthy private
rental sector is the only way in which the Government can
hope to house future generations. Accordingly, the Government
must do all it can to nurture the recovery of the PRS including
the implementation of meaningful consumer protection measures,"
Mr Potter added.
Historically,
tenancy rose across all regions of the UK until the recession
hit, when properties became harder to let and supply outweighed
demand. This trend was felt hardest from late 2008 and into
early 2009. This latest ARLA research also showed that the
average void period of a rental home has dropped for the
first time in more than a year, indicating that properties
are being rented more quickly.
In the
winter of 2008 the average length of time for a property
to remain empty was 3.8 weeks across the UK, yet by May
2009 this had risen to 4.3 weeks as homes became harder
to rent. Now, the figure has dropped to an average 4 weeks
(and 3.8 in the South East), giving further indication that
the rental property market is picking up.
RICS
launch property sales & lettings standards board,30 September 09
The
Royal Institution of Chartered Surveyors (RICS) has combined
with a number of trade associations, redress schemes and
consumer champions to improve standards in residential property.
A new
body, The Property Standards Board, which is to be launched
today in Central London, has been created by RICS, the NAEA
(National Association of Estate Agents) and ARLA (Association
of Residential Lettings Agents) to set standards across
residential property. It will develop codes of practice
for estate agents, lettings agents and property managers
and become a focal point for better consumer information
on buying, selling and renting property.
The
initiative is the bodies' response to Sir Bryan Carsberg's
2008 report into residential property. RICS believes that
common and consistent standards for residential agents are
long over due and supports attempts to seek government endorsement
of the Board, giving it power to set standards for all property
agents.
It is
clear that the HIP has failed to improve the consumer's
experience of buying and selling homes. We believe that
the introduction of basic standards for all agents will
provide consumers with better service and better information
on what to expect from agents they come across in property
transactions.
Gillian
Charlesworth, RICS director of external affairs: "Home
purchase and renting are far too important in people's lives
to be left to a sector with no commonly applied and enforced
standards and where anyone can set up shop. We want the
industry to do this for itself but look to government and
consumer bodies to help us to make it happen."
Professional
landlords face mortgage maze,
22
September 2009
Professional
landlords are reporting that despite an increase in the
availability of credit in the wider mortgage market, it
is becoming even harder to source buy-to-let mortgage finance,
says Paragon
According
to Paragon's Trends research, a panel-based survey of UK
landlords, over half of professional landlords (54%) have
attempted to obtain a buy-to-let mortgage in the three months
to the end of August for either remortgage or new purchase
purposes.
Of those
landlords, nearly nine out of 10 stated that it was more
difficult to secure a buy-to-let mortgage than in the previous
three months. Nearly one in ten (8.4%) said that they had
noticed no change in buy-to-let mortgage availability over
the period, with 2.8% stating that they had found it slightly
easier to secure a mortgage.
Buy-to-let
product availability has continued to fall in recent months,
in contrast to the residential market where availability
has improved. There were 196 live buy-to-let products available
at the end of August (a 94.4% reduction on August 2007),
compared to 218 in May. This compares to 1,329 prime residential
mortgage products available in August (an 86.1% reduction
on August 2007 numbers), against 1,266 in May.
John
Heron, Paragon Mortgages' managing director, says: 'Product
availability in the general mortgage market has improved
slightly in recent months, but has worsened for the buy-to-let
market. Mainstream lenders are reducing their focus on this
sector and specialist lenders are still unable to access
the wholesale funding markets to enable them to offer new
products.
'We
know that there is demand from investors to purchase new
property, particularly with returns from savings products
being so low, but they are being frustrated by a lack of
mortgage supply. Buy-to-let lending has slumped and there
is a real danger that the private rented sector could start
to contract, particularly if the 'accidental landlord' begins
to sell property. This would be disastrous for those sectors
of the population that rely on the private rented sector
for their housing needs.'
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