Tag Archives: Budget

Universal Credit will be paid direct to landlords but …. Landlord News, Latest Articles, Property News

Universal Credit will be paid direct to landlords but ....The Residential Landlords Associated revealed yesterday the housing benefit element of Universal Credit may well be paid directly to landlords after all. However, a lot of questions remain unanswered.

According to the RLA “automatic direct payments to landlords will now be allowed in the pathfinder areas. The policy change was tucked away on the last page of an obscure circular published by the Department of Works and Pensions (DWP) yesterday.” Continue reading Universal Credit will be paid direct to landlords but ….


Why do landlords buy furniture packs? Landlord News, Latest Articles, Property Investment Strategies, Property News

Landlords Furniture PacksI’m often asked whether I think it’s a good idea to let properties on a furnished or unfurnished basis. A friend of mine recently said that he was surprised I had not written an article about this and, in particular, about furniture packs.

Unless you buy properties to let as holiday homes, short term lets, student lets or own modern city centre apartments targeting overseas business visitors or short term contractors the thought of letting a property furnished, let alone buying furniture packs, may well be an alien concept to you. Continue reading Why do landlords buy furniture packs?


The 2013 buy to let goldrush Buy to Let News, Buy to Let Property Hotspots, Commercial Finance, Landlord News, Latest Articles, Property For Sale, Property Market News, Property News, Property Sales & Sourcing, Property Sourcing, UK Property Forum for Buy to Let Landlords

The 2013 buy to let goldrushI have had a ‘gut feeling’ that the property market would turn in 2013 for at least four years, however, until now I have not been able to provide any real justification as to why I believe the 2013 buy to let gold rush will occur.

A recent comment on our forum got me thinking about this again. It said something along the lines of …

“do you think property values will rise when the governments incentives to help fund deposits for first time buyers kicks in next year? I’m seriously thinking about bringing my plans forward and buying now in advance of the next property gold rush” Continue reading The 2013 buy to let goldrush


The 2013 Budget and how it affects Landlords and property Investors Landlord News, Latest Articles, Property News

Budget 2013The 2013 Budget is hoped to boost the housing market and construction industry. Yesterday Chancellor George Osborne announced new plans to help people buy their first homes homes with the Help To Buy Scheme and an extension of the previous NewBuy Guarantee scheme to include older houses as well as new-builds.

For three years from the start of 2014 the government will support £130bn of first time buyer mortgages by guaranteeing 15% of the loan leaving borrowers at risk of losing only their 5% deposit and lenders liable for only 80% of the purchase price.

Lenders taking part should therefore be happier to accept smaller deposits as security for loans, but it is still a relatively small proportion of the total mortgage market worth £1.2 trillion, according to the Council of Mortgage Lenders (CML).

The theory is that giving more people the ability to purchase a home will increase demand for property resulting in an increase in price and promoting an increase in supply (more construction) to fill the demand. It is very simple Supply and Demand economics that will work, but it is the amount that it works by that is the question.

Of all the sectors that contribute to the UK’s GDP it is the construction industry that has been most badly affected helping to drag us back into a double dip recession and a stagnating economy, so it makes sense for the government to try and stimulate demand for construction.

The Housing Market is also a very important barometer for confidence in the economy and when people feel confident they spend money and invest in business which includes Landlords.

Any kind of confidence boost in the housing market has got to be a good thing for Landlords and property investors in the long run. If the value of property strengthens then lenders will feel more confident to lend on better rates and Loan to Values. Landlords may eventually be able to remortgage again after the death of the remortgage market for the last four years. We will no longer be stuck locked into existing lenders and at the mercy of their desire to either get rid of Buy to Let mortgages or fleece Landlords for greater profit margins as the Bank of Ireland are trying to do.

A competitive Buy to Let market is essential for the long term planning of Landlords taking control back from the banks and into the hands of investors once again.

However we cannot get too excited as it all depends on the degree by which government support works that is all important, and with the revision of GDP growth forecasts halved it would indicate that there is a long road to recovery to travel yet.


A winning plan for property for The Budget 2013? Landlord News, Latest Articles, Property News

A winning plan for property for The Budget 2013Naomi Heaton, CEO of London Central Portfolio Limited has shared her four point plan which she’s asked Chancellor George Obsourne to consider for the forthcoming Budget. 

With days to go until the 2013 Budget, time is running out for Osborne to make a real difference in his Budget mandate. Naomi says her plan could help the Conservatives get back in favour, whilst providing some much needed Viagra to both the UK economy and the housing market. Listen closely George; it is time for the Government to do something positive! Continue reading A winning plan for property for The Budget 2013?


Universal Credit trial increases arrears by a factor of seven! Landlord News, Latest Articles, Property News

Universal-CreditA Universal Credit trial of a first group of tenants in Torfaen South Wales has resulted in an increase in arrears from £20,000 to £140,000 in just seven months from July to January.

Chief executive Duncan Forbes of Bron Afon Community Housing  who have 950 tenants receiving direct payment of their housing benefit said the rise in arrears was ” significant”.

“That was a group of people who had a good track record of payment and pretty low level of arrears, thrust into a position where they are now in significant arrears.”

“At the same time we’ve increased our staff levels by about double what we would normally put into income recovery. We’ve been very successful up to now in getting the number of evictions right down, but we can see that inevitably steadily rising. The difficulty for us is that if there’s no long-term solution to paying that rent we can’t sustain business as a landlord.”

However contrary to the evidence and all popular opinion in the PRS  the Welfare reform minister Lord Freud is still supporting Universal Credit and said: “We’ve always been clear that Universal Credit will be simple and easy for claimants to access and we will ensure that vulnerable people get the support they need to make a claim and budget their finances. Millions of people will be better off on the new benefit.”

Torfaen is one of six areas The Department of Work and Pensions is running demonstration projects and it will be interesting to see if the results give any cause for the government to U-turn or delay the introduction of Universal Credit in the autumn.


Are Rent Guarantees Worth Buying? Guest Articles, Insurance, Landlord News, Landlords Insurance, Latest Articles, Letting, Lettings & Management, Property News

Rent GuaranteeIncreasing rents, a difficult economy and job losses mean a growing number of tenants are struggling to pay their rent. When rental income is relied upon to cover a buy-to-let mortgage, arrears can be a very real risk and it doesn’t look like the economy is going to improve significantly any time soon.

As rents typically increase towards the summer months, we could see tenant’s budgets being squeezed, leading to some unwanted arrears. The question is, if you’re a buy to let landlord, how can you protect yourself against every landlord’s worst nightmare: a tenant who can’t, or won’t, pay the rent? Continue reading Are Rent Guarantees Worth Buying?


LCP analysis of official Land Registry data just released Landlord News, Latest Articles, Property Investment News, Property News

 LCP London Central Portfolio  
  • Prices in England and Wales rise marginally by 2.27% across the year, bringing the average price to £238,293
  • Prices in Prime London Central (PLC) rose 14.1% to finish 2012 at £1,359,739
  • The number of sales of London’s super prime properties (£10m+) increased 10 fold
  • The number of sales in England and Wales between £2m and £5m increased a staggering 71%
  • The most expensive sale in PLC in Q4 was a house in Farm Street, Mayfair at £28,134,500
  • High value sales in Q4 were also registered in London Central’s most prestigious developments -One Hyde Park, 199 Knightsbridge and The Lancasters

Naomi Heaton, CEO of London Central Portfolio comments:- Continue reading LCP analysis of official Land Registry data just released


Stamp Duty set to triple for 10% of UK home buyers Landlord News, Latest Articles, Property News

Stamp Duty set to triple for 10% of UK home buyersAround 80,000 people in England and Wales, 10% of the market, could find themselves paying three times more Stamp Duty this year as the average property price looks set to breach the £250,000 mark.

For these buyers, Stamp Duty Land Tax (SDLT) will jump up from 1% to 3%, a massive increase from £2,500 to £7,500. The Government will need to urgently re-evaluate the 1% Stamp Duty ceiling which has remained unchanged for over 15 years whilst the average price of a house has increased three fold from £79,242 to £249,958. Continue reading Stamp Duty set to triple for 10% of UK home buyers


Is rent hiking a good business model? Don't Shoot The Messenger, Landlord News, Latest Articles, Property News, UK Property Forum for Buy to Let Landlords

Is rent hiking a good business modelIt’s been a while since I wrote anything in my ‘Don’t shoot the messenger’ series. Mainly because I kept getting shot ha-ha.

But I have a tough skin.

This article is an open letter to all you P118 landlords but probably more the London crew, because it is about rent increases and London is a different animal to the rest of the UK. I see properties for rent in different parts of Britain where the rents seem reasonable.

London is off the scale though. Continue reading Is rent hiking a good business model?


Property Forum and News website where UK landlords and letting agents share best practice