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Landlords Fear no-go Zones for Shared Housing
Local authorities could have the power, later this year, to declare their own ?no-go? zones for privately rented shared houses. This would replace the current need to obtain planning permission if a landlord wanted to rent out an existing family home to a group of tenants such as students, nurses or young professionals. But the government?s policy of reducing the burden of national legislation on the sector could create a local mass of new red tape ? says the Residential Landlords Association. That?s why the RLA is lobbying the new housing minister Grant Shapps on his planned revision of the new planning regulations that came into force three months ago. The association has already attacked the current position – where a landlord with planning permission to rent out a shared house, and then lets it to a family, may not be allowed to switch back to a shared house at a later date. That was part of the former government?s plans to restrict the numbers of small ?houses in multiple occupation?. Grant Shapps, however, plans to relax that legislation but instead, from 1st October, he proposes to allow local authorities to apply the rule in areas they consider to have an HMO ?problem?. And that, says the Residential Landlords Association, could create ?no-go HMO zones?. ?The minister has declared his intention to reduce the legislative burden for private sector landlords and he may achieve that at national level,? says RLA lawyer Richard Jones. ?But locally this gives local authorities too much additional power. ?It would still threaten the future of traditional student housing areas, and the local economies that have grown up around them. But it would also throw up a series of anomalies in local housing markets too. What happens, for instance, if a couple are renting a house and decide to take in lodgers? Is that still a domestic let ? or does it become an HMO? ?More and more local authorities are approaching private landlords to house the homeless and those in need. Locally landlords need the flexibility to let to a family one year and to a group another year, without the need to have to get planning permission to change backwards and forwards. At the moment there is huge uncertainty as to when planning permission is needed anyway. ?We are looking for two major changes in the minister?s proposal as they will affect areas designated by the local authority for these new controls. Firstly, we want to change the definition of an HMO so that it only applies if there are at least five residents rather than only three which is the case at the moment. ?Secondly, we want to see a ?preserved right? introduced so that, even if a local authority does exercise its new powers, a property can be occupied either as a family home or a shared house without any need to obtain separate planning permission. ?This protects the value of existing shared houses. We already have a lot of evidence that in the same street a house which can only be used as a family home could be worth a third less than a house that can be rented out as a shared house. ?We simply want to preserve the right to switch between groups of tenants sharing a house or the domestic use by a family ? according to the housing demand at the time.? The Residential Landlords Association is the leading national organisation whose members own over 100,000 properties in the UK?s private rented sector. The range of members? services – on www.rla.org.uk – includes advice, insurance, financial services, credit referencing and training. addthis_url = 'http%3A%2F%2Fwww.landlordzone.co.uk%2Fblog%2Fnews%2Flandlords-fear-no-go-zones-for-shared-housing'; addthis_title = 'Landlords+Fear+no-go+Zones+for+Shared+Housing'; addthis_pub = 'LandlordZONE';

Rents surge as supply diminishes
Constraints in supply bolstered both rents and yields in June, according to the latest Buy-to-Let Index from LSL Property Services plc. MortgageIntroducer.com – 16 July, 2010 The average rent in the UK rose by 1% in June. Rents have risen for five successive months, and are 3.2% higher than a year ago – the equivalent of £23 more per month than a year ago. The average rent is now £673 per month, the highest level since November 2008. Commenting, David Brown, commercial director of LSL Property Services plc, commented: “Rents have continued their upwards trajectory, and are just a few pounds away from their peak levels in 2008. ?The seasonal pick-up was exaggerated by the squeeze in the supply of rental accommodation. Although landlords weren’t clobbered as badly as feared, it is possible that some left the market in the run-up to the budget, and concerns over the new capital gains tax rate dampened the number of new investors entering the market in June. ?But the restricted availability of buy-to-let mortgage finance has been the underlying factor holding back investment in the sector and the number of new rental properties hitting the market.” London continued to lead the surge in June, with rents in London rising by 1.9% to £942. Landlords in the north also had reason for cheer as rents rose in both the north west and north east – by 1.4% and 1.3% respectively. However the west midlands bucked the national trend, recording a drop of 1.7%. As rents continued to increase, and house prices dropped off in June, yields on buy-to-let properties snicked up to 4.9%. The house price for the average rental property fell by 0.25% compared to May, with the rate of annual increase slowing to 8% in the past 12 months. The total return from investing in buy-to-let over the last twelve months fell slightly to 12.3% in June as house prices fell slightly. The average landlord would have made £18,983 in the past year – a combination of £7,164 in rent and £11,819 in capital gains. With the recent house price decreases, a landlord investing today can expect to make an annual return of 3.4% over the next twelve months. This is equivalent to £5,670 on a typical UK property. addthis_url = 'http%3A%2F%2Fwww.landlordzone.co.uk%2Fblog%2Fnews%2Frents-surge-as-supply-diminishes'; addthis_title = 'Rents+surge+as+supply+diminishes'; addthis_pub = 'LandlordZONE';

Landlords needed for ITV ?Tonight? Programme
Landlords needed for ITV?s “Tonight” Programme We are looking for landlords who are prepared to tell their horror stories involving bad tenants on ITV?s Tonight Programme. These can be cases that are happening at the moment, or that have been resolved. They would particularly interested in your story if… 1. You are, or were, in threat of mortgage repossession because tenants refused to pay you rent. 2. Tenants have caused serious damage to properties or left them extremely dirty. 3. Your property was used for outrageous purposes (for example, drug factory or a brothel) If you are interested in being involved in the programme, please reply to this email, and we will pass your details on to the producers. Landlord Action www.LandlordAction.co.uk addthis_url = 'http%3A%2F%2Fwww.landlordzone.co.uk%2Fblog%2Fnews%2Flandlords-needed-for-itv-tonight-programme'; addthis_title = 'Landlords+needed+for+ITV+%26%238220%3BTonight%26%238221%3B+Programme'; addthis_pub = 'LandlordZONE';

Home owners wanting to move advised to consider letting
There are few things more frustrating or stressful then needing to move but being unable to do so because you cannot sell your home. Unfortunately this is a situation too many currently find themselves in as the sales market continues to be slow, with a disappointingly low level of enquiries from potential purchasers throughout the normally busy spring and early summer months. A significant improvement does not now seem likely as sales tend to fall during the summer holiday season and into the autumn months. But, according to letting specialist Leaders, if you want or need to move you need not despair, there is another option. One that could not only enable you to move home as soon as you are ready, but will also provide an income and allow you to delay your sale until a more favourable sales market. That option is letting. Says Leaders? Managing Director, Paul Weller: ?Letting your home could be the solution to your problems if you want to move soon. Demand for rental property is stronger than ever and good quality properties are being snapped up by tenants as soon as they become available. ?Whilst the sales market is suffering, the rental market is buoyant because more people are choosing to rent for a number of reasons: people are still uncertain about the economy and are either unable or unwilling to commit to buying a property; renting is a more affordable and flexible option, it does not require a huge deposit and it allows people to move on easily for work opportunities. ?We are seeing exceptionally strong demand for all types of properties in the areas we cover,? continues Mr Weller, ?from studio flats to large family homes ? with many tenants choosing to extend their tenancies indefinitely. If you put your property on the market with us you will be able to get moving quickly. You can let for six months – or longer if it suits – until the sales market improves, and in the meantime get a useful income from the rent.? Leaders are advising home owners that if this option appeals to them they need to act sooner rather than later. Rental demand is particularly high at present whilst property stocks are lower, therefore premium rentals are being achieved. As autumn approaches, the tendency is for more properties to come onto the rental market, therefore the choice for tenants will be greater. Says Mr Weller: ?It is important to set things in motion as early as possible even if the property is not going to be available for a couple to three months time. There is a growing tendency for tenants to want to secure a home much further in advance than they used to ? a reflection of the fact that there are fewer properties available now and tenants do not want to be disappointed in their search. ?Becoming a landlord can be a daunting prospect, particularly if it was not something you initially planned. But, as the UK?s largest independently owned letting specialists with more than 27 years experience, we can give you all the advice and support you need to make letting work for you. We only let to fully-vetted tenants, we are up to date with and abide by all legislation that applies to letting and we always ensure that your rights and interest as a landlord are fully protected. Your property could be perfect for letting, so why put your plans on hold if you don?t have to?? Leaders are fully bonded members of the Association of Residential Letting Agents (ARLA) and have a reputation for providing a high quality, friendly, personal service. They have 45 branches across the South and can provide completely impartial and expert advice on all aspects of letting and renting. addthis_url = 'http%3A%2F%2Fwww.landlordzone.co.uk%2Fblog%2Fnews%2Fhome-owners-wanting-to-move-advised-to-consider-letting'; addthis_title = 'Home+owners+wanting+to+move+advised+to+consider+letting'; addthis_pub = 'LandlordZONE';

Movers spend lowest ever average proportion of income on mortgages
Borrowers moving home in May saw their mortgage interest payments accounting for the lowest proportion of their income in 35 years, according to new data from the Council of Mortgage Lenders. And house purchase lending rose from a year ago for the 11th consecutive month. But with the challenging economic backdrop, government spending cuts and forthcoming tax increases the positive trend is likely to tail off in the second half of this year. Monthly comparisons with a year earlier will probably be near zero or modestly negative over the coming months. This is because we had an improving market in the second half of 2009 as the stamp duty holiday came to an end.House purchase lending rose modestly in May. The 42,000 loans (worth £6 billion) were up 2% in volume and 3% in value on April and 15% in volume and 28% in value from a year earlier.   Remortgaging activity recovered a little as well in May. The 26,000 loans (worth £3.2 billion) were up 6% by volume and 10% by value on May but down 14% by volume and by value on a year earlier.    Table 1: Loans for house purchase and remortgage   Number of house purchase loans Value of house purchase loans £m  Number of remortgage loans  Value of remortgage loans, £m  May 2010 42,000 6,000 26,000 3,200 Change from April 2010 +2% +3% +6% +10% Change from May 2009 +15% +28% -14% -14% There were 14,800 loans (worth £1.8 billion) advanced to first-time buyers in May, up from 14,500 (worth £1.7 billion) in April and 13,700 (worth 1.5 billion) in April 2009. Their characteristics have changed little in recent months. In May they borrowed an average of 3.14 times their income and 75% of the value of their property but interest payments accounted for only 13.2% of their income, the lowest amount since the 13% of March 2004.    Table 2: First-time buyers, lending and affordability   Number of loans    Value of loans £m    Average loan to value    Average income multiple    Proportion of income spent on  interest payments    May 2010 14,800 1,800 75% 3.14 13.2% Change from April 2010 +2% +6% 75% 3.16 13.5% Change from May 2009 +8% +20% 75% 3.04 14.9% The numbers of home movers increased as well in May. The 27,100 loans (worth £4.2 billion) were up from 26,500 (worth £4.1 billion) in April and 22,800 (worth £3.2 billion) in May 2009.    The characteristics of these borrowers have also barely changed recently but they continue to benefit the most from low interest rates with interest payments accounting for only 9.5% of their income in May, the lowest percentage in 35 years of available data.    Table 3: Home movers, lending and affordability   Number of loans    Value of loans £m    Average loan to value    Average income multiple    Proportion of income spent on  interest payments    May 2010    27,100    4,200    67%    2.85    9.5%    Change from April 2010    +2%    +2%    67%    2.84    9.6%    Change from May 2009    +19%    +31%    69%    2.74    11.4%    CML director general Michael Coogan commented: ?House purchase lending continues its recovery but positive comparisons with equivalent months a year ago look unlikely to continue. Activity picked up in the second half of 2009 due to the stamp duty holiday but with the government’s austerity drive picking up momentum we are unlikely to see a repeat of those buoyant numbers this year. Our forecast for gross lending in 2010 may now be looking a little optimistic.”    The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender. Please see the mortgage statistics timeline on our website for further information. addthis_url = 'http%3A%2F%2Fwww.landlordzone.co.uk%2Fblog%2Fnews%2Fmovers-spend-lowest-ever-average-proportion-of-income-on-their-mortgages'; addthis_title = 'Movers+spend+lowest+ever+average+proportion+of+income+on+mortgages'; addthis_pub = 'LandlordZONE';

Base Rate Remains On Hold
Base Rate Remains On Hold Following Emergency Budget , Simon Gammon, Head Of Knight Frank Finance 08 Jul 10 The decision by the Bank of England?s Monetary Committee to keep the base rate on hold at 0.5% for the sixteenth month running came as no surprise following last month?s emergency budget. “Even though one of the new members of the Bank of England?s Monetary Policy Committee voted to increase rates at its June meeting, this view seems unlikely to prevail for some time,? says Simon Gammon, head of Knight Frank Finance, which specialises in mortgages over £1m. ?George Osborne?s budget got a largely positive response from the City and the consensus is that it could push any rate increase further into the future. Five-year swap rates have dropped to around 2.5% suggesting the market is not pricing in an imminent future increase? adds Gammon. Even if rates seem unlikely to change for the next six months it is worth keeping in close contact with your mortgage adviser, he suggests. “There have been some very competitive five-year fixes on the market recently, some below 4%, but these are getting withdrawn very quickly as demand exceeds supply.” ?If you are thinking about taking a new mortgage or renewing your existing arrangements at the current time it could pay to talk to an expert so you are ready to move quickly to secure the best rate.” addthis_url = 'http%3A%2F%2Fwww.landlordzone.co.uk%2Fblog%2Fnews%2Fbase-rate-remains-on-hold'; addthis_title = 'Base+Rate+Remains+On+Hold'; addthis_pub = 'LandlordZONE';