Cheap BTL needs Housing Association?

by Readers Question

8:27 AM, 13th February 2018
About 2 years ago

Cheap BTL needs Housing Association?

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Cheap BTL needs Housing Association?

My son has only £25000 to invest in property which means looking in the North East where good returns can be made if the rent is paid!

​To be safe we think we have to rent to a Housing Association and I’m wondering if landlord readers have done this successfully.

I’ve rung a few Housing Associations who don’t seem to rent from private landlords I have even contacted Tyne & Wear council with no joy.​

If anyone has any recommendations or knowledge to be shared I would be very grateful.

I do already let property, but in Surrey so I have no experience of this area.

Many thanks

Jaques



Comments

Mark Alexander

13:20 PM, 13th February 2018
About 2 years ago

Reply to the comment left by Mandy Thomson at 13/02/2018 - 12:55
I agree with you Mandy.

Neil Patterson

13:26 PM, 13th February 2018
About 2 years ago

Apologies for some comments becoming personal in nature and now edited.

Luke P

13:36 PM, 13th February 2018
About 2 years ago

Reply to the comment left by Leo Davin at 13/02/2018 - 11:21
Here in North East Lincolnshire Council (NELC) area, Housing Benefit (HB) is paid direct to the landlord (LL) as you long as you have a clause in your tenancy agreement (TA) stating so. This means that whilst HB tenants can often be higher risk, having direct payment mitigates that risk somewhat. Universal Credit (UC) is now fully operational in the region, which migrates all existing HB tenants over to UC as/when their circumstances trigger a change to their claim. This is important because LLs have less control over the direct payment of UC (it is not necessarily, if ever, paid direct to the LL). However, three-child HB claimant(s) have no planned date to be migrated across to UC, meaning if you selected tenants with 3 kids, you could ensure direct payment. Are you looking to purchase cash/outright?

craig hill

14:20 PM, 13th February 2018
About 2 years ago

Reply to the comment left by John Oxley at 13/02/2018 - 11:24
Hi I'm also looking for a buy to let anywhere in the north .I have around £30000 to £40000 to invest.which area would you advise to invest ? Thanks.

Robert Mellors

15:16 PM, 13th February 2018
About 2 years ago

Hi Jaques
There are several letting agents that offer “guaranteed rent” schemes, and some are better than others, and some are little more than cons. If you can lease to a proper Housing Association, I.e. a “not for profit “ organisation, then this can be a good option, but as with any offer you receive, make sure you are fully understanding what is or isn’t being offered and what would happen in a worst case scenario. You also need to feel comfortable with the person or organisation that you will be leasing to.
My organisation is a “not for profit” Housing Association, that has been leasing properties from private landlords since 2004. I always lease for 5 or 6 years, so that I can invest time and money into the properties. There are a few Housing Associations that lease properties from landlords, and there are of course private landlords and letting agents who lease properties, but if the lease period is less, then are you sure they will be investing into your property?
Generally, make sure you are happy with the organisation you are dealing with and what is being offered. The same applies whatever part of the country you decide to buy in.

Mandy Thomson

15:43 PM, 13th February 2018
About 2 years ago

Reply to the comment left by Robert Mellors at 13/02/2018 - 15:16Hi Robert
I know your business is based in the Nottingham area, but do you know of any housing association or similar that would lease a property in NW London? We already tried Caridon and Northwood without success.
Thanks,
Mandy

JDO

15:59 PM, 13th February 2018
About 2 years ago

Reply to the comment left by craig hill at 13/02/2018 - 14:20
Hello Craig, please send me a private message on email. jdoproperties@hotmail.com

Kathy Evans

16:03 PM, 13th February 2018
About 2 years ago

Tyne & Wear isn't that sort of council - if it even exists any more. I have seen landlord ads from Gateshead MBC and Durham City and County Councils in the past. Gateshead has licensing, as does Durham in some areas. Sunderland might be a good bet.

Robert Mellors

19:46 PM, 13th February 2018
About 2 years ago

Reply to the comment left by Mandy Thomson at 13/02/2018 - 15:43
Hi Mandy

I am based in North Nottinghamshire but I mainly lease properties in Sheffield.

I’m sorry I don’t know anyone that leases properties in London but I thought that Northwood were nationwide, though when I looked in detail at their “guaranteed rent “ offering it did not look like a good deal for landlords (unless everything ran perfectly). Did Northwood say why they were not interested in the property?

I know that some of the London councils are offering big incentives for landlords to let to Housing Benefit tenants, so that may be some consolation? - email me if you would like further details. Robert.mellors@hotmail.co.uk

Mandy Thomson

20:26 PM, 13th February 2018
About 2 years ago

Reply to the comment left by Robert Mellors at 13/02/2018 - 19:46
Thanks, Robert, particularly for your analysis of Northwood's rent guarantee scheme. I emailed the local Northwood branch but they didn't respond.

The only interest the lady has had has been from the council, but I naturally have my reservations and advised her to only lease to them as a last resort.

She spoke to Caridon Properties (who are based in Croydon, on the other side of London) but the rent they were offering her was too low.

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