RLA News Service

Confidence rises among landlords

RLA News — Wed, 10 Mar 2010 20:02:57 +0000

Residential landlords are becoming more confident in the prospects of the buy-to-let sector, according to statistics compiled by rental website Upad earlier this month. During the first days of the month, 61 percent of residential landlords felt that the sector was moving in the right direction, compared to 57 percent who had a positive view of the market one month ago. As such, a rise in confidence among landlords appears to be a trend spanning at least the last four months. One of the main factors behind this confidence is the increasing signs of life visible in the buy-to-let finance sector.

Yet landlords do still have concerns about more recent developments that may hinder the market’s growth. According to the Upad survey, the two main issues that arose most often among respondents were concerns about government red tape and increasing regulation, as well as a possible decline in the number of university students seeking private sector rental accommodation. A number of universities in Britain have taken to increasing the availability of dormitory and traditional residence accommodation on campus, and this may reduce demand for rental properties in traditional college towns.

Upad chief executive James Davis noted that the buy-to-let market has gone from “strength to strength” and that his organization has tracked four straight months of rising confidence among landlords. But Davis added that potential changes in lending practices on the part of major banks and the greater availability of loans will have a major impact on the future of the market.

Planning Use Classes Order is Bad for Landlords and the Private Rented Sector - Urgent Action is Required

admin — Wed, 10 Mar 2010 11:10:41 +0000

After April 6th 2010 if you want to rent a house to three unrelated people such as nurses sharing, a family with a lodger, students, young professionals, immigrant workers and even the elderly, you will need planning permission.

Popularly called Studentification - these new powers will affect any rented property not rented by a family or related group.

You will have to pay and wait for planning permission before you can legally rent to them and all because Secretary of State John Denham will not listen to the combined voices of landlords and tenants, students, letting agents and local retailer organisations (RLA, BPF, NUS) who are against the measures.

You can make a difference by emailing your MP NOW.

To act now and make your voice heard, click here

Buy-to-let finance shows signs of improvement

RLA News — Tue, 09 Mar 2010 20:45:34 +0000

After having experienced 18 months during which time buy-to-let loans all but dried up in Britain, residential landlords have reason to hope that lenders may finally start reducing both the required deposits, as well as the interest rates charged to more manageable levels. One of Britain’s major fee-free brokers, London & Country, was among the first to introduce a more attractive three-year fixed rate of 6.49 percent, as well as loans amounting to up 80 percent of a given residential property’s value. This represents a notable improvement, considering that until this week buy-to-let investors and landlords were required to secure a deposit of at least 30 percent.

The Nottingham Building Society has reportedly followed suit and has introduced a modest interest rate cut. As such, landlords with new buy-to-let loan arrangements can now pay 5.59 percent interest, as opposed to 5.89 percent on three year fixed mortgages. Additionally, Nottingham now offers loans for up to 70 percent of a residential property’s value.

David Plaister, representing LetAssured, noted that the combined effect of lowered interest rates coupled with reduced minimum deposit requirements mean that landlords have more “realistic products” to choose from when they seek to secure a new buy-to-let loan. Additionally, the fact that property prices remain low and that mortgages finally appear to be making a comeback suggest that the real estate market is once again a “serious investment vehicle.” At the same time, Plaister noted that even if buy-to-let loan conditions may have improved, landlords should still exercise caution when considering property purchases, and when choosing firms to manage them.

Mixed opinions on regulation of buy-to-let lending

RLA News — Mon, 08 Mar 2010 20:15:20 +0000

The dramatic decline in the number of buy-to-let products over the past 18 months and the much higher deposits required to obtain a loan in the first place have opened a debate among landlords and investors as to whether the Financial Services Authority (FSA) should regulate buy-to-let lenders. According to a survey published LSL Property Services, newer landlords and investors tend to support regulation, while those landlords with more than seven years of experience are worried that an interventionist approach on the part of the government may simply exacerbate an already difficult situation.

Fully 60 percent of all landlords questioned would like the FSA to step in and offer more regulation of buy-to-let lenders—similarly to how they already regulate regular residential mortgages. But LSL’s survey also suggests that the proportion of landlords seeking more regulation is smaller among those with more experience in the business. For example, 55 percent of residential landlords with more than seven years of buy-to-let experience opposed regulation of the finance sector, mainly because they felt that this would further limit the number of loan products available to investors.

David Brown, representing LSL, noted that some professional landlords feared excessive regulation would encourage a range of brokers and lenders to leave the business. But the government is looking into the regulation of buy-to-let lending and these plans may already be in place later this year. Brown, however, noted that the FSA should remember that milder, less restrictive regulations would have a much more salutary affect than taking a “sledge hammer” approach.

LANDLORDS MASS LOBBY TO SAVE THE PRIVATE RENTED SECTOR

rlaPR — Mon, 08 Mar 2010 15:06:41 +0000

Private sector landlords are urging support from MPs in a last stand to save the future of renting to students and young professionals.

Nurses, teachers and a generation of young workers could be hit by a government plan to prohibit areas of shared housing for groups of unrelated tenants.

The legislation comes into force on 6 April when new powers will allow planning legislation to be used to control the renting of shared properties to people who are not families or related tenants.

“Landlords throughout the UK need to make their voices heard – urgently,” says Alan Ward, chairman of the Residential Landlords Association - whose members own over 100,000 private rented properties throughout the UK.

It will be the biggest mass landlord lobby of local MPs ever organised – with some 40,000 landlords receiving an email to contact their MPs, as well as the government, and make their protest heard.

“The government’s change to planning Use Classes Orders,” says Alan Ward, ”is bad not only for landlords but for the whole private rented sector not to mention the local economies that have traditionally grown around existing areas of shared housing.

“After 6 April planning permission will be needed if a landlord wants to rent what has been a family house or flat to three or more unrelated people such as nurses, students, young professionals, immigrant workers, a family with a lodger and even the elderly. It could wreck the private rented sector.

“And all because the Secretary of State, John Denham, will not listen to the combined voices of landlords, tenants, students, letting agents, local retailer organisations and bodies like the RLA, British Property Federation and National Union of Students - who are all against this.

“Everyone against this sorry attempt to use planning laws for social engineering purposes – to dictate who is allowed to live where – should make their voice heard by asking their local MP to oppose this very damaging and impractical proposal.

“The whole issue – often referred to as ‘studentification’ was stated in the government’s own commissioned ‘Rugg Report’, 17 months ago, to be a minor issued not requiring legislation. But, for some reason, the government has over-ruled this independent report and thinks it knows better.”