Buy-to-let is still a safe bet
As 2010 draws to a close, we are urging those with money to invest in the New Year to consider buy-to-let as a viable medium to long term investment.
Landlords with buy-to-let properties can expect an increasingly good return on their money as the rental market is predicted to remain strong.
There is currently a real undersupply of rental property, and this is unlikely to change in 2011 with massive demand remaining which will push rents up further.
With interest rates so low and an increasing lender appetite, a buy-to-let property can be an excellent investment. For example, a property which costs in the region of £185,000 can generate a yield of as much as eight to ten per cent a year. This is a great return and far better than any bank or building society can offer.
Those looking to invest in buy-to-let property should also be prepared to look further afield. We would advise investors to consider looking outside their immediate locality when considering buy-to-let properties, as there are areas in the country with some great returns to be had which can offer excellent yields.
We have a large network of both sales and letting branches and are happy to offer guidance.
Investors should always take advice from a reputable lettings agent accredited by a professional body such as NALS (National Approved Lettings Scheme) or ARLA (Association or Residential Lettings Agents).
A good agent will ensure that the property is looked after and well managed, and so the area of the country in which it is located should make little difference.
The yield is calculated by taking a property’s monthly rental income to give the annual rent and dividing this into the purchase price of the property. Of course, it is important to take into consideration such things as mortgage set-up fees, stamp duty and other costs associated with the purchase of a property. Even so, with the rental market so strong a buy-to-let property is a good investment.
In many areas rental properties are being snapped up in less than 24 hours such is the demand, and this will continue to remain the case the foreseeable future.
Labels: ARLA; NALS; buy-to-let, Felicity J Lord, haart, Haybrook, landlords, letting agent, rentals, Spicer McColl, Spicerhaart
Rental bonanza is unprecedented says local lettings agency
With demand outstripping supply, rents are currently at an all-time high – and they are likely to stay that way for some time to come.
What we are experiencing is unprecedented. In the last few months, we have seen a soaring demand for rental properties - from one bedroom flats to family homes - and rents are continuing to rise rapidly.
We believe demand for rental properties will continue to surge due to a number of national factors.
The average age of a first time buyer is now 37 and with restrictions on mortgage lending this is unlikely to change.
Student debt is also on the rise which will make buying a property out of the question for many people and we also believe that the public sector cuts will have a huge impact.
Across the board, people are more and more reluctant to commit to buying and want to remain in rented accommodation long-term.
Whilst the boom is good news for landlords who can expect greater returns on their investment, it is not such good news for tenants who are having to fight harder to secure properties.
In this market, the best piece of advice for anyone considering either renting or letting out a property is to research every aspect. Both landlords and tenants should obtain advice from reputable licensed letting agents who can guide them every step of the way.
Labels: Darlows, Felicity J Lord, first time buyers, haart, Haybrook, letting agencies, letting agent, lettings agencies, Spicer McColl, Spicerhaart
Rent if you can’t sell
Homeowners struggling to sell their properties in tough market conditions and anxious to move should not feel despondent.
Many property sellers are now deciding that rather than waiting to find a buyer and secure a realistic price for their property, a temporary option is to rent it out.
Before now, it would not have occurred to many sellers that they can actually rent out their property, but many are seeing it as a viable alternative to selling.
The rental market is currently booming and landlords can expect increasingly higher yields with demand outstripping supply. Coupled with this, renting provides flexibility and a source of income, whilst allowing time for the housing market to improve.
Before deciding to rent out your home, it is important to obtain advice from a reputable lettings agent who knows the local area and market well.
Before letting out your home you will have to ensure it is up to market standards, inform your mortgage and insurance companies, and make it compliant with safety regulations and other legal requirements. This is not difficult and, providing you obtain the correct advice from us and our financial services colleagues, everything should be fairly straightforward.
Property is one of the biggest investments anyone ever makes, so it makes sense to ensure that when you do come to sell you do so at the right time and can secure the best price possible.
Labels: buy-to-let, Darlows, Felicity J Lord, haart, letting agent, lettings, property market, Spicer McColl, Spicerhaart, tenants
Buy-to-let – still a good investment
Now is the best time in years in which to purchase a buy-to-let property.
With increasing numbers of people choosing to rent rather than buy and the level of demand pushing rents higher, a buy-to-let property is a fantastic long-term investment.
With the shortage of rental properties and increased demand, a buy-to-let property is a great investment.
Many potential landlords were put off buying properties to rent because of fears around a predicted huge increase in capital gains tax.
These have been unfounded and although capital gains tax has increased from 18 to 28 per cent it has not been enough to put people off and with rental yields higher than ever, many new landlords are already reaping the benefits of a buoyant rental market.
Buy-to-let property has proven lucrative for thousands of investors over the years and now is a good time to invest.
Labels: buy-to-let, landlords, letting agencies, letting agent
Rental income on the rise
Rising demand for rental properties and an increase in rental income is good news for landlords - heralding the return of a more confident lettings market.
Recent figures have revealed that rents increased by 1.2 per cent in February following two months of decline. It is predicted that they will continue to rise throughout the year due to a shortage of rental properties.
A year ago, the market was flooded with rental properties but the situation is now reversing. A shortage of rental properties is already pushing some rental incomes higher and if this tightening in supply continues, landlords may enjoy a further recovery in rents over the course of the year.
However, it is vital both landlords and tenants receive good advice. We are committed to ensuring our landlords get the very best return on their investment and also that tenants are treated fairly.
As the rental market recovers, it is very important that landlords remain realistic about the sort of rental income they can achieve. This is why we offer extensive advice and guidance on how not only to attract the best tenants, but also what sort of rental income is appropriate in today’s market.
Demand for rental properties is very high, particularly as more people are deciding to rent. Competition for high quality rental properties is strong which is good news for landlords and hopefully signals the return a more buoyant market which will benefit everyone.
Labels: ARLA, buy-to-let, landlords, letting agencies, letting agent, lettings, lettings agencies, rentals, tenants
A successful spring for landlords is predicted
With spring just around the corner, landlords should do everything they can to ensure their properties are in the best possible order and reap the benefits of a predicted rise in rental income.
The rental market has seen greater demand but there are fewer quality properties available. This of course means that tenants no longer have as powerful bargaining power as they once did. However despite this, landlords should do everything they can to ensure their properties are presented in the best possible order to maximise their worth and achieve a quick let.
There are a number of steps landlords can take to make their properties not only more attractive to potential tenants but also to ensure they achieve the highest rental income. The property needs to be spotlessly clean, in good order with all the appliances tested and working and of course the legally required safety checks carried out.
Interiors should be painted in neutral colours to give a light and airy feel to the property, worn carpets and flooring should be professionally cleaned or replaced, windows kept spotless and gardens and external spaces immaculately presented. Adding up-to-date lighting and fixtures can also make a huge difference to the appearance of a property.
Spring is a particularly busy time in the lettings sector and the outlook for 2010 is very promising. However it is always important to remember that whereas a buyer might be happy to purchase a tired property which they can then add value to, a tenant wants a home which is fresh and ready to move into immediately. Our advice to landlords is not to expect anyone to live in a property that they themselves would not live in. Keeping a rental property in good order is good news for everyone as it means that it attracts better tenants, yields a higher rental income, and also maintains its value.
Labels: ARLA, buy-to-let, haart, landlords, letting agencies, letting agent, lettings, lettings agencies, properties, rent property, rental properties, rentals, tenants
Landlords urged not to lose out
Many rental properties are not adequately safeguarded against possible weather damage such as burst or frozen pipes or ill-fitting or broken roof tiles which can lead to major problems.
It can be extremely stressful when problems arise. Many landlords work full-time and have other obligations so making sure their rental property is well maintained, especially during adverse weather conditions, although a very high priority can be difficult. This is why it is so important to choose a lettings agent carefully and to consider how the property will be managed.
For example, something as straightforward as a tile which has blown off the roof, can lead to major problems. Replacing the tile will cost very little but if snow or rain seeps through damaging ceilings and walls it can be very expensive. We advise landlords to always consider a full-management service as in the long-run it can save a lot of money not to mention time and inconvenience.
We offer a full property management service with highly trained staff who visit properties regularly and are also very knowledgeable about developments in the law affecting landlords which gives great peace of mind.
We also advise that landlords should appoint an agent who is registered with the Association of Residential Letting Agents (ARLA) whose members are governed by a strict code of practice.
ARLA Membership is achieved only by agents who demonstrate that they have a thorough knowledge of their profession and conduct their business according to current best management practice. All members are required to have professional indemnity insurance cover and are covered by a bonding scheme which provides financial protection for client monies which have been misappropriated. Appointing an ARLA-approved letting agent means the landlord will receive the professional help he or she needs to realise a rental income without the constant worry that something could go wrong.
All landlords want to safeguard their properties which are extremely important financial assets. Choosing an ARLA member and also undertaking a full management service are simple steps which alleviate unnecessary stress.
Labels: buy-to-let, landlords, letting agencies, letting agent, lettings
Landlords benefit from increased rental yields
With the demand for rental property increasing, landlords are cashing in on rent increases and making a profit of, on average, 5.6%.
Nationally, the average rent currently stands at £591 a month and the average cost to buy a rental property is £115,000, with a landlord return of 5.6%. However, in London and the South East where property prices are higher, the rental return is also likely to be increased.
It’s great to see a healthy lettings market and we’re committed to ensuring our landlords get the very best returns on their investment. Our knowledge of the local area and our list of potential tenants means that we can make sure owners get the maximum from their property.
Our figures portray a really positive picture for landlords across the UK. As house prices continue to rise we expect to see some new landlords come to the market; and who can blame them?
Labels: buy-to-let, landlords, letting agencies, letting agent
Top postcode property shortages
A shortage of properties for let in popular areas is leading to rapid rent increases.
Latest figures show that nationally rent has increased for the first time this year since the beginning of the slide in 2007. The average UK rent now stands at £604 per month.
Demand for quality rental properties in sought-after areas is extremely high at the moment. We’re seeing a lot of new tenants moving into rented accommodation while they wait for more stability in the housing market.
This is particularly true in popular areas. These are often areas with things like sought-after schools or good transport links. Here we’re seeing landlords being able to demand high rental returns.
This is encouraging news for the lettings market. Across the UK, some areas saw rent increases of up to 6% in the second quarter of this year compared to the first. Add to that the fact that property prices are stabilising and this means improved yields for landlords and excellent investment opportunities.
This demand for quality rental properties is an opportunity not to be missed by landlords.
Labels: haart, landlords, letting agencies, letting agent, tenants
haart launches residential lettings expansion programme
The haart estate agency group has responded to consumer demand for rental properties by expanding 22 sales branches across the UK to include residential lettings.
With the number of lettings increasing, haart has identified areas of the country where there is a strong demand for rental properties and has trained staff to provide a lettings service in addition to sales.
Haart sales branches that now offer lettings include Streatham, Earlsfield, Petersfield, Hayes, Wembley, Woodbridge, East Ham, Norwich, Norwich Golden Triangle, Westcliff on Sea, Torquay, Hornchurch, Harold Wood, Lincoln, Peterborough, Gidea Park, Grayshott, Lowestoft, Maidstone, Romford, Shirehampton and Wadhurst.
Tenants and landlords expect a good level of service, so thorough training has been a key part of the expansion programme. With lettings continuing to be popular, our focus remains on the excellent customer care for which we have become renowned.
Labels: letting agencies, letting agent, lettings
Make your rental a Spring success
At this time of the year the most important thing that any landlord can do is to ‘spring-clean’ their property, ensuring it stays in good shape and attracts the highest rental income possible.
At the moment there are a large number of rental properties on the market so it is vital that your one stands out from the crowd. We strongly recommend that landlords give their properties a thorough clean not just internally but externally too, to gain the best return on their investment.
As a result, we’re advising landlords to carry out any necessary renovation or remedial work over the May bank holiday to ensure they don’t miss out on rental yields during the key summer months.
First impressions count so it is important that landlords ensure that their properties not only look good but are also in good repair.
Now is a good time to check things like roofing, guttering and brickwork, which can all be severely affected during the winter months. This will pay dividends as it will not only make the property attractive to potential tenants but will help to avoid expensive repairs in the future. It is also wise to pay attention to outside spaces such as gardens and patios as these become particularly important to tenants during the summer months.
We are always on hand to advise landlords on how they can maximise their investment and are firm believers that the way to ensure tenants respect and look after your property is for you to look after your tenants.
In the current competitive climate the most valuable thing landlords can do is ensure rental properties are presented in immaculate condition to boost their appeal and attract a high rental income.
Internally, landlords should consider giving their properties a lick of fresh, neutral coloured paint and ensure that things such as light fittings, curtain rails and carpets are in good order.
Labels: letting agent, lettings
Healthy returns forecast on buy-to-let properties
With interest rates at rock bottom, one of the best ways of making profit on a nest egg is to look to the buy-to-let property market.
Competitive mortgage rates, increased demand for cheaper properties at the lower end of the market and falling house prices have become attractive propositions for potential new landlords.
Buying property to let is an excellent investment. You can now get yields in excess of 6%, and in some cases up to 8% and 9%, which is more than you would get from investing in a savings scheme. For example, a property worth £100,000 would provide a yield of 6.6% if you charged rent at £550 per month over a 12-month period. It is certainly a great way of capitalising on the current downturn - if you have funds to invest.
Investing in a buy-to-let property can potentially provide landlords with much higher returns than traditional forms of investment. However, to get the best yields, investors will need to use an experienced agent like ours, which is fully insured so the landlord’s interests will always be protected. We also know the local rental market, which ensures investors who are looking to buy a property, will purchase one that is in demand.
haart is a member of the Association of Residential Lettings Agents (ARLA), offering peace and mind to tenants and landlords alike.
Labels: haart, letting agent, lettings, lettings agencies
Tenants staying longer
We have noticed at haart lettings that Increasing numbers of tenants are choosing to rent their properties for longer periods because of the credit crunch.
We have seen average rental periods increase from nine months to around 14 months, with tenants staying for longer and opting for security and stability.
The number of people terminating their leases has greatly reduced as people are staying where they are, no doubt concerned about their employment prospects and the squeeze on credit.
Many would-be first-time buyers are opting to rent, even though property prices have come down significantly, preferring to see what happens to the market during the coming months.
As an experienced lettings agent, we are able to give plenty of help and advice to people choosing to rent, particularly if it is their first time. It is important they choose an agent like ours which is a member of the Association of Residential Lettings Agents, ARLA, to give them the peace of mind they require.
At the same time, we need to ensure that landlords’ rights are also protected, and while they are benefiting from having tenants stay for longer periods, we are also advising landlords they should include a break clause in case their tenants’ personal circumstances do change.
Labels: letting agent, lettings, lettings agencies, rent property
Landlords advised to choose regulated letting agent for peace of mind
As the credit crunch continues to bite, increasing numbers of estate agents are diversifying into lettings, without the necessary experience or training. In addition, more investors are putting their money into property over traditional stocks and shares, creating a higher demand for such services.
Getting it right the first time is always the best policy. Engaging the services of an ARLA-approved letting agent means the landlord will receive the professional help he or she needs to realise an income from their asset without the constant worry that something could go wrong.
Choosing a non-ARLA letting agent or going it alone may leave the landlord with a reduced financial return or hefty legal costs.
Potential pitfalls also include health and safety laws covering fire safety, gas and wiring, and Energy Performance Certificates. Breaches of the legislation can mean a big fine, or even losing the property to local authority control. Recent changes to tenancy deposit legislation require the deposit to be held in a protected account; if it isn’t, the landlord may have to pay three times the deposit to the tenant.
Landlords are invited to contact Spicerhaart if they have any queries, or would like to find out more about renting their property out. For more information, log on to www.spicerhaart.co.uk
Labels: haart, letting agent, lettings, lettings agencies
