New research from the Association of Residential letting Agents (ARLA) suggests that so-called 'reluctant landlords' might become a thing of the past.
The term was coined for those who decided letting their property because it could not be sold. ARLA members have reported a decrease of 5% in properties being let because they couldn't be sold over the last three months, bringing the total figure of 'reluctant landlords' to 21% of the residential property market.
The numbers are even more impressive when we compare them to last year's when ARLA members recorded that up to 42% of landlords had entered the market as a last resort.
ARLA's Managing Director, Ian Potter, puts some of these developments down to the increased activity in the residential sales market which will have caused a number of people to leave the lettings market and sell their property as originally planned.
The developments mean that competition for great value rentals may increase over the next few months. However, in our experience many reluctant landlords have not only been reluctant to enter the lettings market, but in many cases their properties have not necessarily been the most desirable for potential tenants.
This is not about properties not being looked after, it's simply the difference between a property bought with its potential as a rental in mind and a property bought as a family home. In Edinburgh, residential lettings have traditionally been strong. Especially sought after are larger, traditional tenements in areas popular with students. Whilst there is some competition over the more popular ones and viewings are usually very well attended, students do find somewhere suitable to live - although they may have to compromise on location at times.
Tuesday 24 September 2013
Tuesday 17 September 2013
Are your properties safe?
It's Gas Safety Week this week, an opportunity to remind landlords as well as home owners to look after their gas appliances.
It's all too easy to assume that cookers and boilers will work year-in, year-out and many of them actually do function faultlessly. But think about it like this: you wouldn't skip your car's MOT - it's equally important to have gas appliances checked annually to ensure they are working correctly.
According to research conducted by Gas Safety Week's organisers, 43% of Britons don't have their appliances checked regularly and 10% own appliances that have never been checked. Quite a disconcerting statistic.
For our landlord clients, we arrange annual checks with registered gas engineers as part of our comprehensive landlord services. If we source an investment property for you, manage its renovation and let it out, we also make sure that all relevant checks are completed before your first tenants move in. After that, annual checks are scheduled to ensure both your investment and the tenants are safe.
Whilst we are lucky to work with a trusted supplier who are registered 'Gas Safe' engineers, if you need to look for your own engineer, make sure to select a reputable company that will carry out checks carefully and thoroughly. More information can be found here.
It's all too easy to assume that cookers and boilers will work year-in, year-out and many of them actually do function faultlessly. But think about it like this: you wouldn't skip your car's MOT - it's equally important to have gas appliances checked annually to ensure they are working correctly.
According to research conducted by Gas Safety Week's organisers, 43% of Britons don't have their appliances checked regularly and 10% own appliances that have never been checked. Quite a disconcerting statistic.
For our landlord clients, we arrange annual checks with registered gas engineers as part of our comprehensive landlord services. If we source an investment property for you, manage its renovation and let it out, we also make sure that all relevant checks are completed before your first tenants move in. After that, annual checks are scheduled to ensure both your investment and the tenants are safe.
Whilst we are lucky to work with a trusted supplier who are registered 'Gas Safe' engineers, if you need to look for your own engineer, make sure to select a reputable company that will carry out checks carefully and thoroughly. More information can be found here.
Thursday 5 September 2013
First landlord charged under new tenancy deposit rules
Earlier this week, an Edinburgh landlord was the first one to be ordered to pay his tenants three times their deposit under tenancy deposit regulation brought in last year. The Scotsman's property supplement comments on the ruling today.
The new government regulations, designed to weed out so-called rogue landlords and ensure the fair return of deposits at the end of a tenancy, entitles a tenant to receive three times the amount of the deposit should they discover that the landlord did not place the money in one of the government-approved schemes.
Was this particular landlord a 'rogue'? We don't know. One thing this ruling has made clear is that all landlords need to be aware of the rules and regulations they have to adhere to. Whilst tenancy deposit schemes were introduced gradually, there was relatively little coverage in the mainstream media and the government did not run a large-scale information campaign. For those reasons, it's entirely possible that landlords - especially those who self-manage and are 'only' renting out a flat because they can't sell it - didn't know about the regulations.
Whilst not intentionally 'rogue', they may inadvertently find themselves on the wrong side of the law. This recent ruling spells good news for tenants as it makes it absolutely clear that the courts will find for them if landlords break the rules. For landlords, it shows that breaching existing regulation will not be taken lightly, which is definitely a step in the right direction: with very effective rules in place, it's up to the authorities to enforce them. The result will be increased fairness for tenants and those landlords who are happy to stick to the rules.
The new government regulations, designed to weed out so-called rogue landlords and ensure the fair return of deposits at the end of a tenancy, entitles a tenant to receive three times the amount of the deposit should they discover that the landlord did not place the money in one of the government-approved schemes.
Was this particular landlord a 'rogue'? We don't know. One thing this ruling has made clear is that all landlords need to be aware of the rules and regulations they have to adhere to. Whilst tenancy deposit schemes were introduced gradually, there was relatively little coverage in the mainstream media and the government did not run a large-scale information campaign. For those reasons, it's entirely possible that landlords - especially those who self-manage and are 'only' renting out a flat because they can't sell it - didn't know about the regulations.
Whilst not intentionally 'rogue', they may inadvertently find themselves on the wrong side of the law. This recent ruling spells good news for tenants as it makes it absolutely clear that the courts will find for them if landlords break the rules. For landlords, it shows that breaching existing regulation will not be taken lightly, which is definitely a step in the right direction: with very effective rules in place, it's up to the authorities to enforce them. The result will be increased fairness for tenants and those landlords who are happy to stick to the rules.
Wednesday 4 September 2013
Student property investors buoyed by Moody's rating
Moody's Investor Service recently awarded a long-term A2 rating to bonds issued by Holyrood Student Accommodation Plc, showing the agency's confidence in student accommodation in Edinburgh.
Whilst the details of the rating are explained here, there are a number of obvious developments that have made the city a favourite with both students and investors for years, some of which have been mentioned in this blog before.
Take the reputation of Edinburgh's universities, for example. They are among the UK's leading academic institutions with a number renowned worldwide and notoriously hard to secure a place at. Accordingly, there is competition to study in the city and, whilst the universities themselves continue to grow, so has the student population over the years.
Many of Edinburgh's students are looking for good quality accommodation in convenient locations. Once out of halls, many want to share flats with friends and spacious, traditional tenement flats have long been a favourite. They continue to be snapped up year after year, yielding a net rental return of over 7%, on average.
At the same time, buy-to-let (BTL) mortgage finance has made a return this year with more products available at competitive rates. Metro Bank's latest offering is only one example.
For more detailed information, read our case studies or get in touch.
Whilst the details of the rating are explained here, there are a number of obvious developments that have made the city a favourite with both students and investors for years, some of which have been mentioned in this blog before.
Take the reputation of Edinburgh's universities, for example. They are among the UK's leading academic institutions with a number renowned worldwide and notoriously hard to secure a place at. Accordingly, there is competition to study in the city and, whilst the universities themselves continue to grow, so has the student population over the years.
Many of Edinburgh's students are looking for good quality accommodation in convenient locations. Once out of halls, many want to share flats with friends and spacious, traditional tenement flats have long been a favourite. They continue to be snapped up year after year, yielding a net rental return of over 7%, on average.
At the same time, buy-to-let (BTL) mortgage finance has made a return this year with more products available at competitive rates. Metro Bank's latest offering is only one example.
For more detailed information, read our case studies or get in touch.
Subscribe to:
Posts (Atom)