Investment Landlords

According to the latest ARLA report, Investment landlords in the Private Rented Sector continue to remain calm in the face of the current economic situation. Over three quarters of landlords who were questioned for the Review, published Monday 29 September, will not sell their investments because of falling house prices. Instead, they expect to keep their property portfolios for an average of over 16 years. A further quarter intend to hold their investments for more than 20 years.

The Third Quarter Review shows that the average rate of return over five years on residential rental property bought outright averages 10.92%. For a geared investment with a Loan to Value ratio of 75%, the average return is 21.07%. Portfolio landlords carry an across-the-board Loan to Value ratio of only 57.3%. When making new acquisitions, they expect their Loans to Value to be about 70%.

Four out of ten of those surveyed expect to buy property over the next twelve months.

Ian Potter, ARLA's Head of Operations, quoted:

"These figures show that investors are still intending to make use of the availability of Buy to Let mortgages and that the profile of the typical Buy to Let investor has not changed since ARLA first launched Buy to Let following the last serious downturn. The average investor is cautious, mature and aims to support the Private Rented Sector for the long term by looking for the right property in the right market." According to the latest surveys that form the basis for the Review and Index, migrants from the new European Union countries continue to make an impact on the rental market.

Said Ian Potter, "Before the credit crunch, ARLA was forecasting sustained growth in the rental market, driven by a variety of domestic demographic factors. It is very clear that without the support of the Buy to Let investor, the sector would be seeing some very serious shortfalls in the supply of housing to rent in some areas given the downturn in the housing market." However, letting agents report they are seeing an increase in rental property coming onto the market because it cannot be sold.

Overall, this has been mainly houses rather than flats, except in London where the reverse is true.The Third Quarter Review and Index is based on the responses from 453 letting offices and 494 investment landlords during August and September.

It is the largest independent quarterly survey of its kind for the Private Rented Sector .

The Review and Index is available on www.arla.co.ukARLA, the Association of Residential Letting Agents, is the letting and residential management division of the National Federation of Property Professionals.

Letting Agents and Landlords visit us today and get the best out of your business: www.letsafe.net

Time to pull the rug?

Following on from the previous blogs regarding tenant eviction and evicting tenants it is worth noting that Mike Summerhayes director of Legal services at LetSafe is well equiped to pursue those lines of enquiry on your behalf and take quick effective action to evict tenants if required.

With LetSafe you can take up their fixed fee eviction service to evict tenants. If tenants aren't paying their rent or you need to evict tenants for other reasons then you can contact us via our website http://www.letsafe.net/ where you will be able to read just what we can do to evict bad tenants on your behalf.

Our service is fast, professional and competitively priced.

Visit us today: http://www.letsfae.net/ for all your landlord and letting agent needs.

King of The Housing Market

The number of buy to let landlords investing in the UK property market looks set to rocket in the future, a new report by Mintel suggests.

According to Mintel's research, one million homeowners say they are planning to invest in the buy to let market within the next three years.

If this does happen then reports suggest that the current number of landlords in the UK rental market will double by 2010, with further expansion predicted by 2011. With the latest EU reports detailing the volume of the UK population growing massively (see previous blog) we can clearly see that the supply will be needed, especially if the current squeeze on mortgage application acceptances is anything to go by.

Paul Davies, MIntel senior financial analyst commented:

"It is clear that these days, buy to let is no longer the exclusive domain of professional portfolio landlords. Increasingly property owners are seeing the benefits of investing in bricks and mortar and often regard the second homes market as a good alternative means of saving for retirement. As long as these trends continue, future growth in this market should be guaranteed."

It is easy to look at the current economic climate and see why the buy to let market is booming right now. Various factors and news we are bombarded with on a daily basis through the media keep reiterating that financial institutions (some of the largest in the world) are facing challenging times themselves. With recent massive mergers and bail outs on a global canvas the economic down turn shows no sign of abating. This means simply that the money made available to prospective home buyers does not look like it will be available on anywhere near the same scale again. Now super banks will take centre stage when we eventually see the economic climate turn once again as it seems to do every 20 years or so.

The buy to let market will continue to flourish for many reasons, tenants inability to obtain a mortgage, their lack of confidence in bricks and mortar as an investment, the supply of increased rental housing as landlords who have kept money back continue to grow their portfolios, the explosion predicted in the UK population and many many more micro economic factors that blend with the overall chaos to bring us to a point where we see the landlord becoming king of the housing market.

Whatever the future holds for landlords and letting agents LetSafe will be making sure they watch and deliver on the needs of this rapidly changing market.

http://www.letsafe.net/ visit us today

Evicing Tenants - what do you do when the worst happens?

Evict Tenants or evicting tenants. Not a thought anyone relishes as it means that you are traditionaly looking at an expensive route of getting your property back so you can start getting that precious rent back in to your buy to let business. When landlords evict tenants there are legally required actions you have to take.

Most of the ways to evict tenants when the worst happens can be found by using this link which details the law regarding evicting tenants.

evict tenants

Tenant Eviction

Tenant Eviction services are tricky waters to navigate if you are a novice and while there are ways to "do it yourself" the best way and most effective way to evict tenants is well recognised as appointing an eviction services provider such as LetSafe who offer a fixed fee eviction service.

Most landlords who have taken out a good rent guarantee product will usually find themselves with Legal Cover included, however for those that do not have this or did not take this up at the time then LetSafe's fixed fee evition services which you can use to evict tenants is a must.

Population explosion take heed and prepare

The UK population is set to become the largest in the European Union, according to a report.
It is expected to increase from its current figure of 61 million to almost 77 million in 2060 - a rise of 25%.

This would make it the largest population in the EU, ahead of the projections for France (72 million) and Germany (71 million). The EU's statistical office Eurostat also predicts the EU population will be 506m in 2060, up from 495m in 2008.

Shadow home secretary Dominic Grieve said the figures showed it was "essential we develop a coherent strategy to deal with population growth".

This can only mean a bigger demand for housing as the population in the UK grows. As a high percentage of this growth is based on migratory persons it is a sure fire bet that the buy to let industry in the UK will continue to thrive as time moves on.

Landlords and Letting agents will need to ensure they are up to speed with the most recent legislation surrounding their rental property and the dynamics generally of the buy to let market and it's intricasies.

Most Landlords and Letting agents will continue to use companies like LetSafe to maintain their position as leaders in the buy to let market in the face of the changing climate. This gives landlords and letting agents every opportunity to convert the population increase into a profitable increase.

The future for lettings and rental property seems to be secure in face of the recent figures and while the housing market falls prey to the fortunes of various financial institutions ability to provide the market with mortgages the buy to let market stands firm.

Landlords and Letting Agents make sure you are future proof join the buy to let provider of choice, visit www.letsafe.net today.

Landlords see auctions as a bargain

ARE property auctions a viable alternative to Landlords in the current economic climate?

According to a new survey, just over a third of people in the industry would recommend that vendors consider auctioning their properties. Regionally, responses were varied with between 57 and 71 per cent of the respondents (predominantly) in the south of England saying they would recommend auctioning properties as an alternative to the traditional selling route. In the South West, North West and North of England less than 25 per cent of said they would recommend an auction to people looking to sell their home. People were also asked if over the past six months they had noticed an increase in properties going to auction. Nationally, just under 40 per cent said that they had seen an increase with Wales reporting the greatest rise, followed by East Anglia and Greater London.

The North and North West regions reported that auctions were up by around a third compared to figures six months ago. Of those who had seen a rise in the number of properties in their area that went to auction, 46 per cent said it had been an increase of less than 10 per cent.

As far as Landlords are concerned buying at auction can not only avoid last minute hitches but also offers some bargain properties to add to their buy to let portfolio. When the auction ends and the hammer falls, the contract is legal and binding and the person purchasing has to pay a 10 per cent deposit with the balance of the payment usually due within 28 days.

This avoids the uncertain waters of buying and selling property in the traditional way and also greatly reduces the chances of the seller pulling out.

As the continued squeeze of the credit crunch and the current economic climate bite, more Landlords are seeing the auction route as a way to get themselves reduced price properties in a faster manner than the traditional estate agent route. The lower a Landlord can get a property for the better their chances of maintaing a margin between monthly cost and rental yield as the financial climate worsens and margins reduce due to simple supply and demand economics.

We expect the auction route to grow over the next few months as the rental market continues to flourish in face of ever decreasing supply of mortage arrangements.

Visit www.letsafe.net today for all your buy to let needs.

Lettings consistently rise

Reproduced from the times online


As house prices fall and the mortgage drought prevents people from buying, frustrated homeowners are choosing to let their properties rather than sell them at a discount, and are renting other homes elsewhere.

Figures this week from the Royal Institution of Chartered Surveyors (RICS) indicate that the number of people letting their properties has increased at its fastest rate since the survey began in 1998. “Established investors have been reaping the benefits of the housing downturn for some time,” explains James Scott-Lee, a spokesman for RICS.

“They will continue to do so in the short term. However, ever-increasing supply could have an impact on rental growth as tenant options increase.” The effect of the new supply of homes on rent is particularly strong in London. Knight Frank reports that tenant demand is up 25 per cent in a year, but the supply of homes has increased by 35 per cent. Liam Bailey, its head of research, predicts that rents in London, which had been rising by as much as 7.6per cent in prime postcodes in the year to June, will drop 10per cent this year.

Savills reports that rents have already fallen in some postcodes, and are down 10 per cent already in Docklands, an area of high supply. Cluttons reports that rents are down 5 per cent in South Kensington, Chelsea and Knightsbridge.

Related Links
http://www.letsafe.net/
Why sitting tenants can be a great investment
The rise of the accidental landlord

The prediction of falling rents comes just as buy-to-let investors face difficulty in securing competitive mortgage deals and are grappling with more complex and costly tenancy laws. The Government already requires landlords to protect tenants' deposits, and from October energy performance certificates on rental properties will be compulsory. The Law Commission delivered final recommendations to Parliament this month on proposed buy-to-let reform, which would require property inspections and membership of a self-regulation scheme. Should they be adopted, the new rules may be made compulsory as early as next year.

Figures from moneysupermarket.com show that the number of buy-to-let mortgages available has fallen in the past year from 4,384 to 307. Those left require larger deposits and charge increased interest rates. This means that landlords are under pressure to increase rents to counter the shortfall. Lynsey Sweales, a director of the mortgage broker The Money Centre, says: “New mortgage deals are being done, but these are by the savvy landlords who have put money away to use as a cushion for these hard times.”

When The Money Centre analysed the buy-to-let market, 82 per cent of the investors surveyed said that they would keep their existing properties. And the more experienced landlords see buying opportunities even in these conditions: 16 per cent are in the process of purchasing further buy-to-let property; for investors who already own more than 20 properties, the figure is 40 per cent.
'Know your area'

Stephanie Traynor, pictured, entered the buy-to-let market six years ago. “I used to run my own business and didn't have a pension,” she admits. “The business collapsed and I had little money to show for it.” She then went to work in sales and earned some handsome commissions, which she decided to invest in property. “I bought four properties and sold one on very quickly at a good profit.”

All three of Traynor's properties are studios or one-bedroom flats, which she finds an easy letting option, in the area around Eastbourne and Brighton. She admits that she has been lucky as there has never been a time when they were empty. One was bought with a sitting tenant, a disabled man, who is still in the property. Traynor is not looking to expand her portfolio, however. “I'm happy with the three I have got,” she says.
She advises new landlords to have realistic expectations and to keep to an area that they know well. “Try and get as much information on the area and type of property you are looking to invest in,” she suggests.
“There is also the extra burden of a lot of new legislation for landlords, which you need to keep a handle on.”
'Treat it like a business'

Michael McVeigh has played the buy-to-let market very well. He bought his first property four years ago with the aid of his mother, Kathleen, who saw it as a chance to supplement her pension. They clubbed together and bought another four properties, each time with a 15per cent deposit. Property prices were then escalating and McVeigh wisely chose to take out equity in the property at various intervals by remortgaging and putting the money in the bank to help to cover any rental voids.

“I only invested in an area I know very well - Rotherham in South Yorkshire - and chose to buy houses close to a very good comprehensive school, which has attracted families as tenants, who tend to stay longer,” he says.
He now owns 21 buy-to-let properties and is in the process of buying three more. “Newer landlords are finding it difficult to finance buying property, so competition is reduced,” he says.

His advice to new landlords is to treat buy-to-let like a business. “It isn't like other investments, it is very hands-on. There will be ups as well as downs, but you really have to be in it for the long term. Property investment is no longer a get-rich-quick scheme.”

for all your buy to let, landlord and letting agent needs visit LetSafe today.

Top Tips for Landlords from LetSafe

Set aside money for the unexpected - such as a void period in rent or a boiler breaking down or get rent guarantee and emergency services cover for landlords to cover these eventualities.

Keep an open mind about what and where to buy. Talk to as many experienced landlords as you can and learn from their mistakes and successes.

Think carefully before buying a property with any maintenance issues. You might save buying, but any savings may be lost while you're renovating or improving the property.

Don't indulge your own taste in when designing the style of the interior or exterior of the property as this will restrict its appeal. try to keep it neutral. Remember tenants won't normaly redecorate.

Beware of companies offering cheap conveyancing. If a few pounds saved on conveyancing means a slow service, you may lose the property. Fast and efficient is what you want.

Don't skimp by finishing your buy-to-let property with second-hand furnishings, fixtures and fittings. If they don't meet health and safety regulations, you could find yourself in trouble and you may be buying twice.

Be aware of the specialist insurance you need. LetSafe can cover you for almost any eventuality as a landlord. Standard domestic insurance policies do not cover many of the eventualities that landlords face.

Think carefully before leaving the management of your property to relatives or friends. Buy-to-let properties often need experienced management.

Cherish the relationship you have with your tenants. They are after all your source of income. Give them plenty of notice before you visit and make sure maintenance problems are addressed quickly. If you have emergency landlord cover from LetSafe you will be able to call an emergency line 24 hours a day 365 days of the year. Remember tenants are the essential part of your business plan and the relationship should be treated with the importance it deserves.

We trust that these easy, quick tips will help anyone out there looking into becoming a landlord and becoming part of the UK Buy to Let industry.

For all your landlord needs visit LetSafe today:

www.letsafe.net

Danger for landlords

Recent research from the UK Insurance industry showed that current levels of tenants slipping into rental arrears are on the rise. 13 per cent of tenants have gone into arrears in the past three months. In addition to this, over 50 per cent of tenants are concerned about their ability to pay their rent going forward.



This news adds further misery to the UK mortgage market as buy to let owners were left financially strapped by a growing number of tenants who failed to pay rent.



Its findings showed that 95 per cent of tenants in privately rented accommodation had no kind of income protection in place to assist them if their financial situation changed due to unemployment, critical illness etc. This was of concern after recent statistics showed jobless levels in the UK were on the rise and redundancies were increasingly hitting the headlines.



Landlords and Letting Agents would be well advised to ensure that they have rent guarantee in place for their buy to let property portfolio. Letting agents should also advise their landlords to ensure they use a quality referencing service and also advise their landlords to get rent guarantee.



Stay ahead of the buy to let game, visit LetSafe today. www.letsafe.net

The signs are becoming clearer in the UK Housing market and letting market as a growing number of estate agents continue to adapt to the lack of mortgage availability and the impact this has had on the current financial capabilities of a growing number of people unable to buy a home. A recent article appearing on the estate agent news website, made the point clearly as results of recent RICS surveys came in.

THE rental market is booming as housing sales diminish, according to the latest lettings survey from the Royal Institution of Chartered Surveyors.

New instructions to let in July increased at the fastest pace in the survey’s history as many would-be-sellers found that becoming a landlord is a better option than selling in the current climate.

Forty three per cent more chartered surveyors — members of the RICS — reported a rise than a fall in landlord instructions compared to 30 per cent in the previous quarter.

Equally, both new instructions to let houses and flats increased at the fastest pace in the survey’s history with 47 per cent and 39 per cent more surveyors respectively reporting a rise than a fall. According to the RICS, surveyors report that frustrated vendors have been placing their property in the market to let as they have been unable to agree sales due to a lack of demand in the housing market. Thirty seven per cent more members reported a rise than a fall in tenant lettings, up from 30 per cent in the last quarter. Significantly, demand for family homes remains stronger than for flats, according to the report.

With many would-be buyers forced to rent as the route to mortgage finance has been blocked, 43 per cent more chartered surveyors reported a rise than a fall in demand for houses compared to 34 per cent who reported a rise in demand for flats. Rents have continued to rise while house prices fall, driving gross yields upwards, say the RICS. Rising profits have kept landlords committed to the market. The proportion of landlords opting to sell at the expiry of the tenant lease fell to 2.1 per cent, the lowest level on record from 4.2 per cent.

Rental expectations fell slightly with some surveyors expecting over-supply to push rents downwards in the next quarter.

James Scott-Lee, chairman of Chancellors Estate Agents, speaking on behalf of the RICS, said:

“The lettings market is booming with many vendors opting to rent their property while sales in the housing market continue to dry up. Many are willing to ‘hold’ and await the return of capital appreciation. Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns. Established investors have been reaping the benefits of the housing down turn for sometime and will continue to do so in the short term."

This article has been reproduced in part from estate agency news.co.uk

Estate agents looking to transform their current fortunes and are looking to implement a letting department should contact LetSafe.

The word on LetSafe is.....Great

Trawling the net as we do from time to time to check our rankings on the world wide web, and to see how the world at large is perceiving us LetSafe notice from time to time some real gems of information that make all our efforts to ensure our landlords and letting agents are king seem worth while.


Here are a few snippets of information and views on LetSafe gained from Yahoo, Google, & MSN



"I Must say that I am VERY pleased with the personal service you provide that reflects the same values as M*** Lettings and Management." L.B., MARLA, Proprietor.

"During my career in lettings I have used a number of referencing companies and Letsafe are the first that I have felt have gone out of their way to provide such a thorough and personal service.

The Letsafe team have been extremely helpful in what is now a very busy market and I am sure that it is with their help that we have been able to flourish despite the pressure of an ever increasing number of Lets. I would be happy to recommend Letsafe to any Estate Agent or Landlord". E.K. Senior Lettings Consultant



"Having been in the Lettings business for almost 10 years now we used several other referencing companies before we found LetSafe. We have used LetSafe for the last 3 years and keep our business with them because they are always friendly and helpful, easy to contact, know their products well and react immediately when we call them for advice or follow ups. I whole heartedly recommend LetSafe to anyone who is dissatisfied with their current company or just starting up in business. I wish I’d found LetSafe when we started, they make the whole process as easy as possible for us and they are such a pleasure to deal with." A.P. Lettings Director.



In addition to the massive weight of professional letting agents advocating LetSafe as the best bet for a good balance between service and cost we have noticed this which we are very proud to be mentioned in:

http://my1ststepsasalandlady.blogspot.com/

If you want more reasons why you should bring your business over to LetSafe, then visit us today and find out for yourself why we our clients consider us to be the best providers of services and products to the UK buy to let market, it's landlords and it's letting and managing agents.



www.letsafe.net

EPC's are you prepared to gamble?

There has been some confusion floating around the Internet lately regarding what the stand point is on Energy Performance Certificates.

It' is fair to say that the main area of confusion seems to lie squarely in the estate agent market.

However as a growing majority of estate agents have branches that include letting departments it is becoming obvious that information that is not verified or "rubber stamped" by the government is going out to the wider field and causing a dangerous environment of confusion and in some cases delivering dis-information.

LetSafe received a recent newsletter via one of our clients from an online estate agent news source, which reads as follows:

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"EPCs October 1 deadline: heat comes off agents

Wednesday 10th September 2008Estate agents have exactly three weeks to prepare Energy Performance Certificates for homes on the market that pre-dated Home Information Packs. But the heat is off. Yesterday (Tuesday), in what looked suspiciously like a U-turn, new Regulations were rushed before Parliament. updating EPC requirements, in a clear bid to avoid the debacle that would have ensued if the Government had insisted EPCS on hundreds of thousands of properties in the next three weeks.The new Regulations effectively phase in EPCs for commercial buildings over three months and also water down the requirements for domestic EPCs.The Regulations themselves are not likely to be available until the end of this week but we believe the following guidance to be correct.

From Wednesday, October 1, the EPC regime will affect all homes for sale, all rental homes where there is a new rental agreement and all commercial buildings of any size.

By October 1, all public buildings will also need to have a Display Energy Certificate.As far as homes are concerned, all domestic properties on the market, including those without HIPs, should have EPCs. But note, the word is effectively ‘should’, rather than ‘must’.

Sellers, or their agents, will NOT need to provide EPCs on non-HIP properties October 1 and nor will they have to withdraw those properties from the market if EPCs are not in place. Instead, EPCs should be produced “as soon as possible”. The lack of an EPC on October 1 would not affect or prevent sellers from continuing to market such properties.Agents will NOT have to reprint particulars for non-HIP properties showing the EPC graphs. This is not necessary, although CLG recommends that EPCs do accompany particulars “on a voluntary basis”.Strictly speaking, for non-HIP properties, it is the seller and not the agent who is responsible for producing the EPC. In practice, it is believed that in virtually all cases, it will be the agent who has to take the lead.

Under the legislation, sellers who do not provide EPCs on non-HIP residential properties on or after October 1 could be fined £200. This now looks to have been superseded.However, no updated guidance has been given by CLG in response to specific questions as to whether sellers will be fined if they have not produced EPCs by a certain time, such as the end of the year for example. One important change in yesterday’s Regulations is that EPCs for homes for sale can now last three years instead of one year.Another important change relates to non-domestic buildings, where the requirement to have an EPC has now been delayed and phased in.Any non-domestic building on the market before October 1 and remaining on the market will now not need an EPC until January 1 at the latest. If it is sold or rented out in the meantime, an EPC must be commissioned and then handed over “as soon as is practicable”. CLG says: “This measure is intended to make it easier for owners and landlords to comply with the legislation, avoid market fluctuations and is in response to expectations from the industry.”In reality, there are nowhere near enough commercial inspectors available to have completed the hundreds of thousands of EPCs necessary on commercial properties.

Any further updates on this story will be posted up on the Estat***ntT**ay website as soon as we receive them."

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Now we looked into this as from the LetSafe point of view as a national provider of EPC's to landlords this seemed noteworthy. LetSafe checked with our RICS qualified group of surveyors and they all expressed their astonishment that unverified news of this nature is being sent out. The information is misleading and in fact could prove financially damaging to many letting agents and landlords as they may feel that they can sit back and wait while all they may be doing is sitting back and letting potential fines build up for themselves and their landlord clients.

When we visited the site in question we noticed that the article had seen recent post activity, again cut and pasted below for your ease:

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“Posted By Megan Baker on Wednesday 10th September 2008 We all need to be very careful what we believe at the moment with this. Your details are completely at odds with the Communities Government update released today which states... October marks the completion of the introduction of EPCs. The full timetable is below: Homes: • Since 1st August 2007 all homes going on the market with 4+ bedrooms have required an EPC when sold • Since 10th September 2007 all homes going on the market with 3+ bedrooms have required an EPC when sold • Since 14th December 2007 all homes going on the market with one or more bedrooms have required an EPC when sold • Since 6th April 2008 all new-built homes have required an EPC • From 1st October all remaining homes for sale (including those which had been on the market from before the above dates) will require an EPC and all homes for rent will require an EPC when newly rented. Note the word WILL not SHOULD! Who are we supposed to believe?”

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The EPC regulations are a directive given to the UK Government from the EU and our research shows that the EPC legislation is not subject to the UK Governments whims. Therefore it is with high confidence that we say Energy Performance certificates WILL be required in the buy to let market at least.

It is also important to note the following extracts from the newsletter and online article:

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“The Regulations themselves are not likely to be available until the end of this week but we believe the following guidance to be correct.”

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The important phrase here as stated is “we believe”, not fact merely conjecture and guess work.

All landlords and letting agents would be well advised to visit the government site as an accredited voice of information on this legislation which again contains no such guesswork and clearly states what is required.

Bear in mind the directgov newsroom was updated today and DID NOT include any such estimates of any "new" situations with regard to the EPC legislation.

Where government levies or fines are involved most wise and competent businesses would advise distancing themselves from rhetoric of this sort. Stay where the source is and make sure that your information is verified and comes from the horses mouth.

For all your EPC needs visit LetSafe today

Links as follows:

http://campaigns.direct.gov.uk/epc/

http://www.direct.gov.uk/en/Nl1/Newsroom/index.htm

Stamp Duty Reduction may help UK Landlords

Recent developments in the UK Housing market (see previous Blogs) may have a positive effect on buy to let investors.

Landlords looking to further increase their portfolios may find that the latest incentives from the UK Government may help them.

UK Landlords stand to benefit from the new stamp duty amnesty introduced by the current UK Labour Government. Buy to let investors could benefit unexpectedly from the stamp duty amnesty which is planned to effect sales of properties worth up to £175,000.

From September 3 2008, the one per cent stamp duty for any residential property under the value would be waived for a year, allowing buyers to save up to £1,750 per property. This latest measure from Labour meant approximately half of all property transactions would be free of the tax. The measure was aimed at first-time buyers, however most experts fear that first time buyers would continue to struggle with higher mortgage rates and the general reduction in availability of mortgages.

Buy to let property investors, in contrast, often boast larger slush funds, financial resources and cash deposits to draw upon. So for UK Landlords looking to extend their portfolio the prospect of buying property under the threshold becomes attractive and tax efficient.

The Labour Governments amnesty was designed to make the market more open and “fairer for all,” but as a direct result of this, some home owners looking to sell, who were stuck with properties on the housing market at £200,000 began to move their prices by £15,000 to take advantage.

Problems seem to have beset this initiative from the outset. For example we may see buy to let property investors holding back on any bids they intended to make on new property until housing prices fall further still. After all bear in mind that the government has given until September 2009 to buy qualifying property tax-free.

One thing is for sure the buy to let market for UK Landlords and UK Letting agents is expanding and this could see more rental properties coming on to the books of letting agents and managing agents alike.

Just bought a new buy to let property? Visit LetSafe for the best in Letting Agent Landlord Services and Products

Landlords stand firm

Buy to Let landlords are standing steadfast and are maintaining their portfolios of rental property. This, despite the fall in house prices and the current doom and gloom predicted for the economy generally by financial experts is a sure sign that the buy to let market remains vibrant.

No surprise really, when you consider the difficulty in obtaining a mortgage for most prospective home buyers as well as expectations by the general house buying public that house prices will continue to fall. Renting a property rather than buying in these unsteady economic waters remains an attractive proposition to landlords and tenants alike.

Only a tiny minority of landlords (appx 1.3%), expect to sell their buy to let property due to the current economic conditions. We can expect some to alter their buy to let portfolios, while ARLA information suggests an expected four out of ten landlords to increase their buy to let portfolios during the next year.

Latest figures indicate a lower Loan to Value ratio than generally reported. Perhaps more importantly the research shows an increase in the length of time landlords expect to retain their properties. ARLA points out that it is only the individual Buy to Let landlords who are investing in housing at the moment.

The noise coming out of the buy to let market has remained robustly positive as landlords report that they expect to retain their property investments for the best part of twenty years.

A quote from ARLA's Head of Operations, Ian Potter, "Buy to Let landlords are confirmed as prudent investors for the long term. These investors understand the realities of the investment market they have chosen. This understanding would appear to be far greater than the understanding shown by investors in many other markets and is proving to be a bonus for the nation's housing problems. There is no one else investing in residential housing at the moment."

The data, from which the quarterly ARLA surveys of letting agents and landlords is generated was drawn in May 2008. 444 lettings offices and 289 investment landlords were surveyed and this is the largest quarterly survey of the rental market.

All surveys are available by visiting http://www.arla.co.uk

LetSafe (UK) Ltd providing landlords and letting agents with products, services and news on their industry.

Market Forces at play in the housing market

Richard Donnell is director of research for Hometrack, and Richard reported in the Sunday Times on 10th August 2008, that the cost for first time buyers when considering buying their first property has increased by a whopping 21%. Take note that this would be before saving a deposit for their home.

Richard Donnell commented “Would-be first time buyers are being pushed into the rental market, despite rents rising by an average 9% over the past year.”

Perhaps even more interesting for Landlords and Letting Agents are Hometracks findings that it is on average £280 per month cheaper to rent a property from a landlord or letting agent than to buy a property from an estate agent or private seller via mortgage arrangements.

“Only when these dynamics change, through lower mortgage rates or changes in availability of credit, will sales transactions levels likely to improve.” said Richard.

Estate Agents must now consider if they can continue to survive comfortably in the current financial environment without having a well organised and well supported lettings department as part of their overall revenue stream. As you can read from previous Blog entries and as reported in the UK national media over the last few days the financial situatiuon in the UK is being flagged as going from credit crunch to full blown recession.

Letting agents, need to keep an eye on interest rates and the availability of credit to consumers. It seems unlikely that even with measures by the UK Government (see previous blog entry) to inject some impetus into the housing market that their measures will have any effective impact on the housing market overall.

Until the current situation in the UK Buy to Let market changes and the overall financial climate changes, renting a property from a landlord or letting agent is a market likely to flourish or continue at the current levels.

“The fact is, low housing turnover is here to stay for the foreseeable future” reports Richard.

Estate Agents looking to create a Lettings department or convert to Lettings should contact LetSafe (UK) Ltd today to ensure they have the best products and support available for their business.