The Co-Operative Bank has released figures showing that one fifth of its recent buy-to-let business has come from “accidental landlords” – home owners forced into letting out their property because they have been unable to sell it and need no move. The phenomenon is generating something of a mini-boom in buy-to-let as more and more first time landlords enter the market. For the moment, this seems sustainable - research from ARLA shows that demand from tenants is still outstripping supply, meaning that in most parts of the country finding a tenant is unlikely to be a problem. However, home owners have been warned about the danger of taking on additional debt in an uncertain economic climate. A drop in rents or a rise in interest rates could leave many accidental landlords in a vulnerable position. In some cases, home owners would be advised to sell up, rather than let, even if that means selling at a discounted price.
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Immigration Checks on Tenants: a Landlord’s view
As widely publicised, the government is proposing to force private landlords to check the immigration status of prospective tenants before agreeing to let to them. The new measures were announced in the Queen’s Speech last week as part of a package of legislation aimed at making Britain a less attractive destination for illegal immigrants. … READ MORE
Foxtons in Brixton hires Security Guards as Protesters target Letting Agent Offices
Letting agents were the subject of protests across London last weekend, causing some to shut their offices for the day, whilst Foxtons in Brixton hired private security guards as a precaution. Dozens of angry demonstrators gathered outside the Foxtons office, claiming that they were being priced out of the area by gentrification, encouraged by letting … READ MORE
Home ownership falls for the first time in 100 Years
Home ownership has fallen to levels last seen in the mid-1980s, according to new figures from the latest Census, conducted in 2011. The peak was reached in 2001, when 69% of homes were owner-occupied. That figure has now dropped to 64%. The Census reveals that the number of owner-occupied homes remained steady over the decade … READ MORE
Letting Agents Ordered to Disclose Fees
Letting agents have been ordered to disclose their fees upfront when they market rental properties. In a landmark ruling earlier this month, the Advertising Standards Authority ruled that agents would be in breach of advertising rules if they did not clearly display on any property advert what compulsory fees they charge in letting a property. … READ MORE
At a time when cynicism of landlords and authority is everywhere, a story reported in the Guardian this week shows how common sense and decency still sometimes prevail. Knowsley Housing Trust is to re-classify nearly 600 family homes as smaller properties from 1 April. Knowsley says that demand for the 2 and 3 bedroom flats … READ MORE
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