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HMO Property For Sale: Hostels, Guest Houses, Nursing & Care Homes For Sale

Paramount Investments: List HMO properties, hostels, care homes, houses in multiple occupation, nursing homes, guest houses and buildings split into bed sits for sale in London, Glasgow, Birmingham, Manchester, Sheffield, Leeds, Liverpool, Bristol, Cardiff, Leicester, Hull, Newcastle, Bradford

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Landlords offering property to rent in London and elsewhere in the UK are positive about the buy to let market's outlook, according to a recent survey.

Lender CHL Mortgages' Landlord Survey shows that 71 per cent of landlords questioned are positive about the market's prospects with just five per cent feeling negative.

In terms of their portfolios, the majority were happy with its current size with 17 per cent making a purchase in the last 12 months and just five per cent selling.

Almost a third (31 per cent) said they intend to acquire more properties in the coming year.

"This latest [survey] shows the vast majority of landlords remaining optimistic about the buy to let market's prospects for the second half of 2012 and beyond, and still regarding the private rental sector as a safe place for their investment," said Bob Young, managing director at CHL Mortgages.

He added that the number of landlords boosting their portfolio is likely to be supplemented by accidental landlords and those making their first steps on the buy to let ladder.

Recent data from the Council of Mortgage lenders highlighted that buy to let lending rose by 32 per cent year-on-year in the first quarter of the year.

Residential Landlords News

Landlords with property to rent in London and elsewhere across the UK are being warned to make sure that they carry out thorough pre-tenancy screening.

While the majority of tenants are honest people, there are some who can cause issues when it comes to paying their way, paying only partial rent or making late payments, which can cause huge issues for landlords.

Pre-tenancy screening can help prevent such issues by assessing whether a possible tenant has a good credit rating.

"In my view, the most important aspect of renting out a property to tenants is doing pre-tenancy screening, which includes credit checks and referencing," Tom Entwistle, editor of Landlordzone.co.uk, said.

"Even then you can still have problems, so where landlords rely on the rental income to pay a mortgage they should consider rent guarantee and legal protection cover."

The expert added that not all landlords currently opt for pre-tenancy screening, however, it is becoming increasingly popular among more experienced property owners.

Landlord and Tenant News
 

Taking out contents insurance is something that landlords are advised to think about if they have any furnishings in their properties.

According to David Lawrenson, private rented sector expert at LettingFocus.com, most landlords have minimal furnishings which means it may not be worth them paying for extra insurance on top of their buildings premium. However, for others who provide more items of furniture it may be a sound investment.

"A lot of landlords do have a very small level of furnishings in their property so that they can get their ten per cent wear and tear allowance," he added.

Mr Lawrenson continued to say that it is also worth checking if contents insurance is covered within building insurance cover as some insurers offer a small element as standard.

The expert recently spoke about the importance of having the proper landlord insurance in place, saying that too many people who have started letting their property out think that standard insurance is sufficient.

Residential Landlords News

People are increasingly looking to rent a property rather than buy, Assetz has said.

Stuart Law, chief executive at the property firm, said the percentage of home ownership rather than rental is going to keep on reducing.

"I think we are down to 66 per cent of the UK now that are house owners and the rest are renting, but that continues to drop," he said.

Demand on the private rented sector will continue to increase, which will continue to increase rents, Mr Law added.

Recent research by Savills and Rightmove that claims "rental Britain is here to stay" found the total value of properties in the private rented sector is £840 billion, up 42 per cent over the past five years.

But Mr Law added while homeownership will drop, it will not drastically reduce.

"People are working harder to save up a deposit than they were previously," he said.

Some changes to legislation surrounding letting agents and rental deposits kick in early next month.  

The amendments, to the tenancy deposit protection arrangements, which come into force on April 6th, give landlords more time to protect a deposit and serve the prescribed notice on the tenant.

Chris Norris, policy manager at the National Landlords Association (NLA),  said landlords complying with the previous regulations need take no action.

Under the changes, the time limit for protecting a deposit and providing the required information to the tenant will extend to 30 days from 14 days from the date of receipt.

Landlords who fail to comply could be forced to pay a penalty between one and three times the amount of the deposit.

It is thought that the two-week window was too short a period for many landlords and agents to deal with properly.

"Landlords that were complying with the previous regulations don't need to do anything different," Mr Norris said.

He said, though, that some landlords had used loopholes to protect very late.

"Those loopholes have been closed, so if landlords fail to comply, they need to be very aware that they can be taken to court, they can be fined quite considerably and they will receive those penalties," he stated.

London is still a great area for landlords to buy to let, the National Landlords Association has said.

The body's policy manager Chris Norris said the capital was a hotbed market for landlords looking to add to their estates.

West London is "incredibly strong", he explained.

"The south-east generally is always very strong. Generally speaking, the south-west is very strong area for rental growth. "

Last month, average rent in England and Wales fell by 0.6 per cent to £707, according to the latest LSL buy-to-let Index.

However, Mr Norris said it was not unusual for the first three months of the year to be slow.

"Earlier in the year, January, February, March tends to be quite slow times for the rental market," he said.

Mr Norris added that it would be too soon to say that rents in London have plateaued.

"They still appear to have very strong demand and to be increasing still," he said.

Residential rental returns continued to grow last month according to the latest buy to let index from LSL Property Services Ltd.

The average rent in England and Wales rose by 0.1 per cent to an average of £712 per month, taking the total annual rent inflation from 4 per cent in December to 4.3 per cent.

Putting that into simpler terms, it means that on average a rental property is providing its landlord with around £30 per month more than it was a year ago.

The largest annual increases have unsurprisingly come in London. Buy to let properties in the nation’s capital city now yield a 6.3 per cent better yield than they did at the beginning of 2011.
David Brown, commercial director of LSL Property Services, said: “The rental market burst back into life unseasonably early in January, with tenants on the move trying to take advantage of what is usually a quieter period for the rental market.”

And the supplier of rental stock is set to increase this year as recent indications suggest that a large number of landlords are currently looking at expanding their portfolios.

Landlords should use professional property management companies to ensure that prospective tenants are correctly vetted, says the Association of Residential Lettings Agents (ARLA).

At a time when rents are rising but the economy remains unstable the likelihood of tenants falling into arrears is higher than ever and this means that tenant referencing is of the utmost importance.

ARLA believes that landlords who fail to carry out background checks prior to agreeing a let are leaving themselves open to a range of problems over the term of the tenancy.

Ian Potter, operations manager for ARLA, said: "While it is impossible to know whether someone will be solvent in the future, it is important to carry out relevant checks on a potential landlord or tenant, to look for signs of financial instability.

"We would always recommend that consumers rent or let a property via a licensed lettings agent, who will be able to carry out checks on their behalf."

ARLA said last month that a shortage of properties is leading to a boom for landlords, but clearly many are shooting themselves in the foot by not carrying out the necessary checks.

People in retirement could supplement their income by renting out their home rather than downsizing says the Association of Residential Letting Agents (ARLA).

The body believes that with rental returns seemingly on a continual increase, now is a good time for retirees to take advantage of the market.

In the past many elderly people have either been forced to downsize when a property becomes too much for them to run or have had to sell up to fund the cost of care, but option would provide them with finances as well as ownership of the family home.

"While market conditions remain so inclined, it could be prudent to let out the family home, and use the monthly rental income to invest in renting a smaller retirement home,” said ARLA president Tim Hyatt.

"ARLA members report that achievable rent levels are increasing, while demand for good quality rental properties remains high.”

Research conducted by specialist mortgage provider Paragon in October found properties let to students provide a landlord the highest possible yield, with an average of 7.62 per cent.

Properties let on a shared basis by professionals was the second best performer at 7.56 per cent.

Growing demand is leading landlords to boost their portfolios and invest in more property, it has been claimed.

A study by advice service Helpland found that almost three quarters of landlords are feeling upbeat about the state of the buy to let market with over a third thinking about making further investments to cope with rising tenant demand.

However, 40 per cent said that a lack of funding could prove an issue when it comes to expanding their portfolios.

In terms of rental income, 88 per cent claimed the income they receive from tenants covers their mortgage payments and expenses.

"There is tremendous potential in the rental market, and landlords should not worry unduly," commented Lee Daniels, managing director of Helpland.

Earlier this month, research by mortgage provider Paragon also suggested that expansion is on people's minds, with fewer than one in ten landlords claiming that they will be looking to reduce the size of their buy-to-let portfolios in the next 12 months.

Buy to Let Investment News
 

Independent financial research company Defaqto has identified the key insurance issues which landlords need to take into consideration before completing their next buy to let purchase.

The organisation assessed 87 different buy to let policies and found that the cover available varies considerably from provider to provider.

This, it says, highlights the importance of understanding and focusing on policy features prior to putting any cover in place.

It found that while 99 per cent of policies cover liabilities while the property is unoccupied, the length of time on offer varies from just one day up to 120 days.

Loss of rent caused by property damage, such as flood, fire etc, is covered as standard by 86 per cent of insurance providers, while the remaining 14 per cent only offer it as an added extra.

Malicious damage caused by tenants is indemnified as standard by 47 per cent, 17 per cent offer it as an extra cost, while an incredible 36 per cent do not cover that kind of liability at all.

Contents cover for landlords looking to let a furnished property is only provided by 11 per cent of providers as standard, with the remainder levying an extra fee.

The number of institutions offering to protect rent payments in the event of a tenant defaulting on their commitment, was also relatively low with zero offering the protection as standard and only 39 per cent providing cover as an add on.

And cover for legal costs incurred in removing squatters from a home is only available from 57 per cent of insurance companies (20 per cent as standard and 37 per cent as an optional extra).

Mike Powell, Defaqto's insight analyst for general insurance, said: "Landlords need to understand the level of cover actually offered by a policy - as although the risk may be covered, the level of cover provided varies widely between policies.

"As ever, people need to focus first and foremost on the features and cover offered by policies when comparing options and not be driven by price. After all, this would be taking a major risk with their assets."

Defaqto operates a star ratings system for insurance policies, running from one to five stars depending on the level of cover on offer. This system has been compared to the style of ratings offered by Michelin for restaurants.

Landlord and Tenant News 

Some clouds really do have a silver lining for landlords. Recent restrictions to mortgage lending mean that more and more would-be homebuyers are turning to the private lettings market.

Paul Smee, the Council of Mortgage Lenders' new director-general, told delegates at the organisation's recent London conference that the housing market has altered radically since the start of the recession, making it much more difficult for people to get onto the first rung of the property ladder.

He added: "That implies a period during which first-time buyers and those hoping to move up the housing ladder save the necessary extra equity, low transactions and a fall in the share of owner-occupiers."

In turn, this means that renting from a professional landlord is likely to increase ten-fold in the next few years.

It was also noted that current market conditions could see a rise in the number of 'accidental landlords' as residential owners who are unable to sell their property turn to letting out their home instead.

And the good news for landlords is that tenants are staying put for longer. Recent research by ARLA found that people stay in a rented home for a record high of 19 months on average.

Mark Durban, senior lettings negotiator at Paramount, commented: “Tenant demand continues to reach ever higher peaks and there simply isn't enough of a supply of rental property coming onto the market to match this demand.”

Landlord and Tenant News

Landlords looking to improve the rating of Energy Performance Certificates for their portfolio may find it difficult to insulate older homes.

Richard Jones, policy director at the Residential Landlords Association, said it is harder to treat properties built before 1980.

"The main problem with them is that they have no cavity walls to insulate and with a lot of them you haven't got the traditional loft space to insulate with the loft insulation. With the properties that lack cavity walls, they may need internal or external insulation," he explained.

If work needs to be carried out on the outside of the house, planning permission may need to be sought for certain procedures, while internal energy efficiency improvement work often causes "disruption" because landlords may need to move around light switches and radiators.

Meanwhile, recent research from the Association of Residential Letting Agents revealed that a third (35 per cent) of landlords are unaware of the energy performance of their properties.

Landlord and Tenant News
 

Landlords of property to rent in London and other parts of the UK should be aware that tenants are becoming more discerning about what they are looking for in a home.

James Davis, chief executive of Upad.co.uk, pointed out: "Tenants are being more fussy and particular about where they want to live; they [may] want a property which has Wi-Fi or a garden or off-street parking.

"Landlords need to respond to this," he insisted.

Features of a rental home such as a power shower, cleaner or sought-after views should be brought to prospective tenants' attention.

"You should be including those when you are looking for a tenant, as tenants are getting more specific about their requirements," Mr Davis advised.

His comments come after Upad revealed the first quarter of 2011 saw an increase in the number of people looking for rental properties, with queries in March almost double the number recorded in January.

London Property to Rent
 

People who become accidental landlords in London need to look carefully at the legal aspects of letting out their home to renters.

This is the opinion of Ian Potter, operations manager at the Association of Residential Letting Agents (Arla), who noted that both parties need to have everything covered in a legal tenancy agreement.

"The terms and conditions of a letting agent to let out your property can be 20 odd pages long. A tenancy agreement is probably going to be in excess of 15 pages long, so people are going in to legally binding contracts both with an agent or with a tenant," he explained.

"That's the key thing that people need to realise: that they are actually entering a legally binding contract."

Letters should also consider taking out landlord insurance, as a regular home insurance policy might not pay out on claims made if the insurer was unaware that tenants were living in the same property.

Residential Landlords News

Would-be landlords investing in student accommodation in London should be aware that foreign university-goers present ideal opportunities to the housing market.

Jonathan Moore, director of Easyroommate.co.uk, explained: "Universities that are still able to attract foreign students will undoubtedly provide excellent investment options for investors, so it's well worth monitoring courses in towns and cities that offer these."

He pointed out that overseas tenants for London properties in the student accommodation sector often have bigger budgets and are therefore better placed to take up higher quality or more luxurious homes.

"Their presence creates opportunities for investors in the upper end of the student rental market, alongside providers of private halls," Mr Moore added.

Meanwhile, research from Halifax revealed that property to buy in the London borough of Westminster currently costs an average of £570,964 compared with homes in the Greater London region which are priced at £327,232 on average.

London Property to Rent

Now could be a good time to invest in flats and houses for sale in Hampstead, London, as prospective landlords may be able to make a lot of money renting them out.

Research from buy to let lending specialist Paragon shows more than a third (34 per cent) of landlords have hiked their rent in the third quarter, compared with 29 per cent in the previous three-month period.

Two-fifths (39 per cent) of those with property to rent in London and other parts of the UK said their rental income has risen by an average of one per cent.

Nigel Terrington, chief executive of Paragon, explained: "With tenant demand only looking to increase further in the coming months, landlords are likely to continue to experience increases in their rental income, especially given that 49 per cent of landlords said they expect demand to further increase in the next 12 months."

London Property to Rent
 

Landlords might have to embark on a programme of investment in order to bring their lettings portfolio up to scratch in terms of energy efficiency.

According to research from the Association of Residential Letting Agents (ARLA), more than one in three (35 per cent) of landlords in the UK do not know the energy performance of their rental properties.

Less than a fifth (17 per cent) could hazard a guess that their residences would be classified as the F & G band of the Energy Performance Certificate, despite government plans to make it unlawful to rent out energy efficient homes from 2018.

The organisation's figures showed this proportion of homes in the lowest energy efficiency ranking has not changed since the previous quarter

Ian Potter, ARLA's operations manager, pointed out: "The clock is ticking for the private rented sector (PRS) to improve its environmental performance but the investment just isn't there to ensure that this change takes place in the government's timeframe.

"ARLA has campaigned for the government to incentivise - through tax relief - the improvement of rental properties. Otherwise it is going to be exceedingly difficult for the majority of landlords to find the funds to improve stock."

The government's Green Deal is set to come into effect next autumn, so landlords will be able to access funds through the initiative to improve their property to rent in London.

However, ARLA warns that tenants may react badly to discovering that they have to make an extra payment on top of their energy bills.

"The issues of fuel poverty among too many of the UK's households has been raised again as we approach winter," Mr Potter noted.

"We urge the government to ensure that the Green Deal is an effective solution to the crisis we will face unless the energy efficiency standards in the PRS and the UK housing stock in general can be improved."

Landlord and Tenant News
 

Landlords who have property to rent in Maida Vale, London, will find their lives are a lot easier if they treat their tenants like paying customers.

The advice comes from David Lawrenson, private rented sector expert at LettingFocus.com, who noted: "It is about a close attention to detail, being able to respond quickly and getting things done as quickly as they can - that is what tenants really want.

"You are running a business and you need to respond quickly and effectively [to any problems]," he pointed out.

By failing to engage with tenants as customers, landlords run the risk of having empty homes sitting there and having to spend time and money finding new people to pay the rent.

"Because of the costs of setting up a new tenancy, you ideally want your tenants to stay a long time, so looking after them well is critical," Mr Lawrenson added.

His comments came after mydeposits revealed that it has seen a 15 per cent yearly rise in deposit protections in August.

London Rental Property News
 

Homeowners who are thinking about putting up property to rent in Maida Vale, London, during next year's Olympics have been urged to check that they will not be breaking the law.

According to the BBC, the National Association of Estate Agents has called for a review of legislation regarding short-term lettings, as homeowners could be in breach of the law if they allow rent-paying tenants to stay for less than a set period of time.

However, different London councils have separate rules on short-term lets, with Haringey in the north of the city telling the broadcaster that it will not be cracking down on property owners renting out their homes during the Games.

Westminster council, in contrast, does not usually allow residents to charge people rent if they are staying in the home for 90 days or less as it wants to improve the market for longer-term tenants and property buyers.

Rosemarie MacQueen, head of city planning development and design at Westminster, told the BBC: "In Westminster, we have a population of 250,000 and that has to grow with targets from the mayor and ourselves.

"If we have short term lets, we'll never increase our long-term residential population."

She explained that many people who live in blocks of flats with short-term lets have a problem with the temporary residents, as they feel their quality of life is compromised.

"There's a fear of crime, they don't know the faces of the people who are coming in and a lot of short-term residents don't treat the place like home.

"They leave litter in the corridors, come and go and have parties," Ms MacQueen added.

So those with property to rent in Hampstead, London, would do well to check with their local authority about the legality of installing short-term tenants for the duration of the Olympic events, as otherwise they could end up with a £20,000 fine and a criminal record.

London Rental Property News