Are you ready to change how you deal with your tenants' deposits?
As of today, Scottish landlords are obliged to place their tenants' deposits in one of three approved tenancy deposit schemes.
These schemes, which have been the norm in England and Wales since 2006, are said to offer tenants the security of knowing their deposit is kept safe for the duration of their stay in a property. Should disputes arise when a tenant moves out, they provide an independent person to decide what repairs need to be done following 'ill treatment' of a property and what constitutes fair wear and tear.
In Scotland, landlords have so far been obliged to keep their tenants' deposits safe, but it was up to them how they dealt with deposits in practice.
The Scottish Government has approved three tenancy deposit schemes and as of today, all landlords need to have transferred their deposits into a scheme of their choice.
It's come as a surprise to us how little information has been made available about the impending changes, especially as consequences for landlords could be drastic and they could be fined up to three times the value of the deposit for missing today's deadline.
A recent ruling has shown that the courts are prepared to be strict on the issue, imposing the maximum penalty on a residential landlord for 'minor' omissions.
We're not about to start scare-mongering. However, this is a huge change for landlords, so if you do need additional information, please contact us directly.
Wednesday, 14 November 2012
Tuesday, 6 November 2012
It's back - the 90% LTV mortgage
Today, the Co-op has announced it's preparing to make 90% LTV mortgages available to first time buyers. Part of the Co-operative's commitment to lend £360million to first time buyers this year, it's also another definite step forward for the mortgage market.
Is it a step in the right direction, though? A lot of that will depend on how first time buyers are assessed and how conservatively the properties they are interested in are valued. Add to that the length of the mortgage deal, the security of the buyer's job etc and it only becomes harder to make an assessment.
If today's news from Castle Trust are anything to go by, first time buyers are still being rigorously assessed and 60% have been turned down for a mortgage. Good news for landlords to a degree as people continue to stay in the rental market.
Also in mortgage news, HSBC has increased its share of the mortgage market by nearly three percent over the first nine months of this year. Altogether, whether it's in residential or buy-to-let mortgages - and we've said this in this blog before, raised activity across the property industry can only be good for all of us.
Is it a step in the right direction, though? A lot of that will depend on how first time buyers are assessed and how conservatively the properties they are interested in are valued. Add to that the length of the mortgage deal, the security of the buyer's job etc and it only becomes harder to make an assessment.
If today's news from Castle Trust are anything to go by, first time buyers are still being rigorously assessed and 60% have been turned down for a mortgage. Good news for landlords to a degree as people continue to stay in the rental market.
Also in mortgage news, HSBC has increased its share of the mortgage market by nearly three percent over the first nine months of this year. Altogether, whether it's in residential or buy-to-let mortgages - and we've said this in this blog before, raised activity across the property industry can only be good for all of us.
Thursday, 1 November 2012
Renting out your flat - who would you trust?
Whether you've bought a rental property as an investment from day one or are now finding yourself a more or less reluctant landlord, who do you trust with your property?
We're predicting that there will be a bit of a change in the lettings & management 'scene' following new legislation that outlaws any premiums charged to (prospective) tenants - except deposit and rent.
What that means for lettings agencies is that they need to look at covering their costs elsewhere - or cutting their service to you. Whilst higher charges to you as the landlord might not sound like a great option, don't forget the alternative may be that your property is less well looked after.
Scare mongers, I hear you say! Far from it, but now is the time to ask your lettings agent how they are adjusting to the situation. To find out about our solution, visit us at the National Landlord Day at Edinburgh's Our Dynamic Earth on Tuesday, 6 November or drop us a line.
We're predicting that there will be a bit of a change in the lettings & management 'scene' following new legislation that outlaws any premiums charged to (prospective) tenants - except deposit and rent.
What that means for lettings agencies is that they need to look at covering their costs elsewhere - or cutting their service to you. Whilst higher charges to you as the landlord might not sound like a great option, don't forget the alternative may be that your property is less well looked after.
Scare mongers, I hear you say! Far from it, but now is the time to ask your lettings agent how they are adjusting to the situation. To find out about our solution, visit us at the National Landlord Day at Edinburgh's Our Dynamic Earth on Tuesday, 6 November or drop us a line.
National Landlord Day - We're here to help
It's less than a week until the doors open to the Scottish Association of Landlords' National Landlord Day next Tuesday, 6 November.
There's hardly ever been a better time for the UK's largest national landlord conference: whilst the private rental market continues to grow, a few new developments and regulations mean landlords have got to make sure they have the right information available to them.
Over the next few days, we'll be highlighting some of those developments in the market. If you'd like more information, please just come and see one of our team at the National Landlord Day on Tuesday.
The biggest change facing Scottish landlords are the new Tenancy Deposit Schemes (TDS). Introduced over the summer to safeguard tenants' deposits, many landlords have not had to act on TDS until this month, when placing deposits with your chosen TDS operator becomes mandatory for all deposits received from 7 March 2011 to 2 October 2012.
If your tenant has moved in since then, the deposit must be placed within 30 working days of the lease commencing. But where to place it? Three schemes have been approved by the Scottish Government, each offering different benefits.
If all this sounds somewhat confusing, please contact us or see us on Tuesday and we'll be happy to advise you on your specific situation.
There's hardly ever been a better time for the UK's largest national landlord conference: whilst the private rental market continues to grow, a few new developments and regulations mean landlords have got to make sure they have the right information available to them.
Over the next few days, we'll be highlighting some of those developments in the market. If you'd like more information, please just come and see one of our team at the National Landlord Day on Tuesday.
The biggest change facing Scottish landlords are the new Tenancy Deposit Schemes (TDS). Introduced over the summer to safeguard tenants' deposits, many landlords have not had to act on TDS until this month, when placing deposits with your chosen TDS operator becomes mandatory for all deposits received from 7 March 2011 to 2 October 2012.
If your tenant has moved in since then, the deposit must be placed within 30 working days of the lease commencing. But where to place it? Three schemes have been approved by the Scottish Government, each offering different benefits.
If all this sounds somewhat confusing, please contact us or see us on Tuesday and we'll be happy to advise you on your specific situation.
Tuesday, 23 October 2012
Green shoots all around on the property market
Hot on the heels of our recent stories about movement in the mortgage market and more finance available to landlords, it looks like these green shoots were far more than one-off good news stories for property investors and other buyers.
First of all, the number of house sales and purchases seems to be increasing steadily. Over the last couple of days alone, the British Bankers' Association, Lloyds TSB and The Land Registry have published statistics for England and Wales. Whilst the individual numbers vary, all report an increase in mortgage approvals and the number of transactions.
According to the Council for Mortgage Lenders (CML), remortgaging figures are on their way up as well. The CML published its estimate for September which shows a near 10% increase on August. Having said that, remortgaging is still noticeably lower than it was this time last year. However, CML do expect the upwards trend to continue.
And in more upbeat news, Halifax has joined the ranks of banks and building societies who have recently dropped their mortgage interest rates for first time buyers and remortgaging, offering up to 90% LTV for first timers.
We've said it before in this blog - whilst the good news in the mortgage market have only spread slightly into the buy-to-let side of the market, they are showing a trend towards more choice in mortgage finance, which can only be good news.
First of all, the number of house sales and purchases seems to be increasing steadily. Over the last couple of days alone, the British Bankers' Association, Lloyds TSB and The Land Registry have published statistics for England and Wales. Whilst the individual numbers vary, all report an increase in mortgage approvals and the number of transactions.
According to the Council for Mortgage Lenders (CML), remortgaging figures are on their way up as well. The CML published its estimate for September which shows a near 10% increase on August. Having said that, remortgaging is still noticeably lower than it was this time last year. However, CML do expect the upwards trend to continue.
And in more upbeat news, Halifax has joined the ranks of banks and building societies who have recently dropped their mortgage interest rates for first time buyers and remortgaging, offering up to 90% LTV for first timers.
We've said it before in this blog - whilst the good news in the mortgage market have only spread slightly into the buy-to-let side of the market, they are showing a trend towards more choice in mortgage finance, which can only be good news.
Tuesday, 16 October 2012
More loans for landlords
One of the UK's newest banks, Shawbrook, has not only broken even after just one year in business, but they have also teamed up with The Loan Engine to offer short term secured loans.
Buy-to-let investors are among their key target markets and among the products specifically developed for this audience are: loans for investors looking to buy, refurbish or release equity from the after-works value of a property as well as short-term loans for acquisitions such as at auction. Light refurbishment work can also be financed through one of the bank's loans.
After a number of stories on mortgage funding becoming more easily available to home buyers, this may be the beginning of further good news for the BTL market. Watch this space!
Buy-to-let investors are among their key target markets and among the products specifically developed for this audience are: loans for investors looking to buy, refurbish or release equity from the after-works value of a property as well as short-term loans for acquisitions such as at auction. Light refurbishment work can also be financed through one of the bank's loans.
After a number of stories on mortgage funding becoming more easily available to home buyers, this may be the beginning of further good news for the BTL market. Watch this space!
Thursday, 11 October 2012
Mortgage market on the move - Good news for property investors?
If the mortgage market is anything to go by we should expect movement across all of the property market soon. By movement, we mean an increase in the number of transactions per month, year etc.
What makes us think that? Quite simply, an astonishing amount of new mortgage deals have been introduced into the market recently and yesterday's announcement by HSBC is just one recent example. Without a doubt it appears that the 90% mortgage is back - HSBC is following Nationwide in offering one - at least for those buying to live in a property.
At the same time, mortgage interest rates seem to be falling, not only for HSBC clients but also for ING Direct customers.
In further mortgage news, intermediary lender Precise has launched a range of prime mortgages and Tesco Bank are extending their range of mortgage products, to name just a couple.
Meantime in the buy-to-let market, rental yields have increased almost across the board in the third quarter of this year, mostly due to high tenant demand and still falling property prices in some locations.
The high demand is certainly something we are seeing in Edinburgh this year. With students just back at university and the holiday season over, virtually none of our clients' properties are empty. On the contrary, we've been able to source properties to buy for investor clients which are now successfully let and we envisage this trend to continue.
What makes us think that? Quite simply, an astonishing amount of new mortgage deals have been introduced into the market recently and yesterday's announcement by HSBC is just one recent example. Without a doubt it appears that the 90% mortgage is back - HSBC is following Nationwide in offering one - at least for those buying to live in a property.
At the same time, mortgage interest rates seem to be falling, not only for HSBC clients but also for ING Direct customers.
In further mortgage news, intermediary lender Precise has launched a range of prime mortgages and Tesco Bank are extending their range of mortgage products, to name just a couple.
Meantime in the buy-to-let market, rental yields have increased almost across the board in the third quarter of this year, mostly due to high tenant demand and still falling property prices in some locations.
The high demand is certainly something we are seeing in Edinburgh this year. With students just back at university and the holiday season over, virtually none of our clients' properties are empty. On the contrary, we've been able to source properties to buy for investor clients which are now successfully let and we envisage this trend to continue.
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