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Green Party Leader Blames Landlords For UK Housing Crisis

Green Party Leader Blames Landlords For UK Housing Crisis

Green Party Leader Under Attack For Demonising
Private Rented Sector Landlords

The leader of the Green Party, Natalie Bennett has attracted a great deal of criticism after she attacked buy-to-let landlords operating in the private rented sector (PRS) blaming them for helping to cause the UK’s housing crisis.

Ms Bennett cited extremely high rental returns for landlords with property in the UK private rental sector in the recent television debate between the opposition leaders.

She referred to a report published by the Wriglesworth Consultancy and lenders Landbay stating that there had been a 1,400% return for buy-to-let landlords since 1996.

But the report’s authors suggested that the calculations and methodology involved were far more complex than the Green Party leader had portrayed.

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Political Parties Focus On Housing To Win Election

Political Parties Focus On Housing To Win Election

Political Housing Policies Could Have A
Major Impact On Landlords

The May 2015 General Election could have a major impact on the UK’s private rental sector (PRS), with each political party promising something different for the reform of the UK housing market and the private rental sector.

Each political party has their own propaganda to attempt to influence voter sentiment ahead of the May 2015 General Election, but do they really have landlord and tenant interests at heart?

All political campaigning promises something different for home owners and landlords with some political parties focussing on real issues that could make a difference whilst others continue to apportion blame and responsibility on to local authorities and private rented sector landlords.

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Funding For Lending Scheme Targeted

Funding For Lending Scheme Targeted

Some of the Con-Dem Government flagship schemes to get the UK housing market moving again such as Funding for Lending (FLS), NewBuy and FirstBuy have been targeted by a succession of property professionals at a buy-to-let event in Westminster, last week.

John Heron, managing director of specialist mortgage lender Paragon said: “Politicians are tinkering around at the edges and seeking headlines. They are being schizophrenic. On the one hand, they are doing everything they can to drive lenders away from high-risk lending, On the other hand, they are coming up with initiatives encouraging 95% mortgages on new-builds to first-time buyers.”

At the inaugural “Great Buy to Let Debate”, organised by the Wriglesworth consultancy, both he and other speakers called for a root and branch review of all government policies.

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Mainstream Buy to let mortgage lenders are changing their products and lending policies as they prepare for the new rules to be implemented that will tighten up on the necessary criteria borrowers must meet, causing a stir in the market.

The Co-Op Bank announced this week that it was scrapping residential “Interest Only” mortgage products but the lender has confirmed that landlords can still obtain interest-only mortgage loans for the purchase of buy to let rental properties.

Platform will continue to offer interest only mortgages for the purposes of purchase and refinance for landlords, but has pulled all similar products for residential homeowners offered through the Co-Op, Platform and Britannia.

LloydsTSB also withdrew “Interest Only” residential home loans but similar “Interest Only” Buy-To-Let mortgage products for landlords will remain in place for the foreseeable future.

LloydsTSB have said that they intend to reduce loan exposure by cutting all UK mortgage lending by 3% stating that borrowing costs on the wholesale money markets were too high.
Instead, LloydsTSB want to raise more cash from their own savers to underwrite all forms of lending and want to raise deposits by 3% .

Banks, building societies and mainstream mortgage lenders tend to view the UK buy to let market as a business with rent from tenants used to underwrite interest payments and long-term capital appreciation, as the property increases in value, is accepted as a suitable repayment method.

Landlords can utilise Rent Guarantee insurance from specialist landlord service providers to ensure that their rental income remains uninterrupted and they can cover their Buy To Let mortgage payments.

Property investors and landlords don’t need to panic and should shop around for the best deal on the market. However, meeting the increased criteria could prove too much for some investors and they may be forced to seek alternative vehicles for finance or use alternative investment strategies such as Lease Options to control property.

Specialist provider of Buy-to-Let cover, Total Landlord Insurance, has launched Total Rent Guarantee Insurance.

In these troubling financial times it is impossible for landlords to predict whether their tenant’s circumstances will change in the future and whether they will always be able to pay the rent, even though they have a successful reference. With the number of rental arrears on the increase across the nation, it is important that landlords don’t let their investment suffer.

Steve Barnes, Broking Manager, said: “Drawn out legal wrangles, legal expenses and missed rental payments can be a nightmare and play havoc with the landlord’s investment and financial planning. In the current financial climate our customers wanted a policy that would be cost effective and provide legal assistance and rent guarantee in the event of a tenant falling into rental arrears.  That is why we have launched Total Rent Guarantee Insurance.”

 The policies are available both online and by phone, although there are significant discounts if purchased online.  Online, landlords can purchase legal expenses for just £45 saving £31.85 and combined legal expenses & rent guarantee insurance for just £94.50 saving £31.80 over the call centre price.

 For more information on Total Rent Guarantee Insurance, go to www.totallandlordinsurance.co.uk.

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Insurance is a must!

Specialist Insurance provides landlords and tenants with peace of mind

UK landlords should already be aware of the necessity, legality and financial importance of having the right insurance protecting their property asset and should always seek to get their rental properties suitably covered with a comprehensive landlord or Buy-To-Let insurance policy.

However, whilst landlords stay insured keeping their property assets protected, very few tenants bother to investing in contents insurance or specialist tenant insurance.

Even though the tenants don’t own the property and are therefore not responsible for the actual bricks and mortar, the property does still contain all of their personal belongings, including important documents and irreplaceable mementoes and so insurance should be an important consideration.

In the event of a claim having to be made, in the case of a fire, for example, tenants may have mistakenly thought they would automatically be covered by the landlord and tried to claim for loss of their important and expensive items from the Landlords Insurance policy, the landlord would receive compensation for the damage to the property, whilst the tenants would find, in most cases, that their claims were unsuccessful and they would be left with nothing.

Tenant Insurance is a necessity is because it is highly unlikely that any tenant belongings will be covered by the landlords insurance. The landlord should have insurance cover to protect the fabric of the building itself, (including certain contents such as the kitchen cupboards, bathroom fixtures etc) and even cover for loss of rent but not the contents of the tenants.
Tenant insurance will also help to protect the tenant’s deposit as good policies cover tenants against accidental damage.

Read the full article on Legal 4 Landlords Blog

The wild winter storm that rocked most of the UK last week caused widespread damage but the Association of British Insurers (ABI), reassured all policyholders, including those with landlord insurance policies, that claims would be dealt with swiftly.
The torrential rain and gale force winds caused extensive disruption across the UK’s transport network, damaged properties and vehicles and toppled trees.

Now insurers are preparing themselves for the claims to come flooding in and could be left with a hefty bill to pay.
However, the association confirmed that any storm damage would most likely be covered by home, business and buy-to-let property insurance and that damaged vehicles would be covered by comprehensive motor insurance.

The ABI advised those making a claim, including landlords with buy-to-let insurance policies, to do so as soon as possible, indicating that insurance firms would react quickly to help policymakers affected by the storm.

Nick Starling, ABI’s director of general insurance said: “Insurers number-one priority is to ensure that anyone who suffers damage get their claim dealt with as quickly as possible.”

Landlords and property owners without adequate insurance in place face rising costs and a race against the elements, to repair the damage caused by the storm before the weather deteriorates further and the UK experiences the sub-zero temperatures, freezing conditions and associated chaos that a typical British Winter brings.

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