The buy-to-let property market is still thriving, according to the Council of Mortgage Lenders (CML). The number of buy-to-let loans rose by 23% last year, taking their number to 1,038,000 and accounting for 10.3% of all outstanding mortgages. This lending picked up in the second half of the year at a time when general mortgage lending was starting to fall.

The CML said demand from landlords had been resilient, despite problems at some lenders like Northern Rock. Tenant demand for private rented property remains strong, and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high-quality homes to rent, said Michael Coogan, the CML's director general. Many buy-to-let loans have interest rates linked to interbank rates, so may have seen hefty increases in payments when Libor rose to abnormally high levels in the second half of 2007. These are now likely to be returning to lower levels in line with the reduction in Libor rates since December last year he added.

Arrears

Despite the widespread perception that lending to landlords is a high-risk business, the figures show that these customers have lower levels of arrears and repossessions than home buyers generally. The number of buy-to-let loans that were more than three months in arrears went up from 0.58% to 0.73% during 2007. But that was still a lower level of arrears than the 1.1% seen among all mortgage borrowers. And the repossession rate was just 0.1%, compared with the 0.23% rate seen for the whole market.

None of this is surprising, this is the most prime sort of lending, said Malcolm Harrison of the Association of Residential Letting Agents (ARLA). He argued that there were good reasons for the market to keep on growing. In the past two years we have seen more single households being formed, more requirement for flexibility among contract workers, and immigration pays a part too, he said

Credit Squeeze

In the wake of the banking crisis that brought the Northern Rock to its knees, several smaller specialist mortgage lenders have been in trouble and have dropped out of the market. However, most buy-to-let lenders are part of larger banking groups, such as the Bradford & Bingley, HBOS, Lloyds TSB, Nationwide and Barclays.

Tim Hague, of the buy-to-let mortgage lender Birmingham Midshires, predicted the market would continue to be buoyant this coming year. With demand continuing to outstrip supply, buy-to-let will continue to be in demand due to socio-economic factors such as rising immigration, he said.  Text from BBC News Web Site 26 February 08

Faulkner Property, which is a fully bonded member of Association of Residential Letting Agents (ARLA) - has been letting and looking after residential property in Buckingham and Milton Keynes for over 15 years. The company has a reputation for providing a high quality, personal service and independent expert advice on all aspects of letting and renting, and are happy to offer a free, no obligation rental valuation of your property, or independent advice on buying a property to let.

After many months of a sellers’ market, anyone trying to sell a property now will be aware that the sales market has slowed considerably, with buyers reluctant to pay full asking prices and many waiting to see what will happen to house prices and interest rates. Unless sellers are willing to drop their asking prices, they could be stuck for some time trying to get a sale.

But, according to one of the MK’s largest independently owned letting specialists, Faulkner property, there is another option – one that could not only enable you to move home when you are ready, but will also provide an income and allow you to delay your sale until a more favourable sales market. That option is letting.

Demand for rental property is stronger than ever, with more young people and families choosing to rent, says Faulkner Property managing director, Paul Singleton. Rental demand has increased for a number of reasons: it is more affordable and flexible; there are more people moving around for work; and more EU workers. We are seeing exceptionally strong demand for all types of properties from studio flats to large family houses – with available properties renting very quickly and many tenants wanting to extend their tenancies indefinitely.

With winter underway and sales slowing, Faulkner Property see letting as the ideal option for homeowners struggling to sell. The property can be let for six months until the spring - or longer if it suits - until the sales market improves, and in the meantime provide a useful income.

This applies equally to landlords trying to sell an investment property. An empty property is a waste of potential income and it is always preferable to have it occupied during the winter months. Faulkner Property have recently seen a number of landlords decide to re-let their property after several months sitting empty on the sales market; in each case the property was let within a few days.

Says Singleton: The option of letting your property until you are able to sell works well, even for people who need mortgages. A number of mortgage lenders offer Let To Buy mortgages, an alternative to the well-known Buy To Let option, which allows you to borrow money to buy a new home to move into, while your existing residence is let out to tenants

 We would of course advise homeowners to speak to an independent financial adviser to find out if this is a suitable option for them, but if it is, it could mean a way to avoid a delayed move while waiting for a buyer, plus all the disappointment and frustration that entails, and to supplement your income at the same time!

Faulkner Property, which is a fully bonded member of Association of Residential Letting Agents (ARLA) - has been letting and looking after residential property in Buckingham and Milton Keynes for over 15 years. The company has a reputation for providing a high quality, personal service and independent expert advice on all aspects of letting and renting, and are happy to offer a free, no obligation rental valuation of your property, or independent advice on buying a property to let

The results of the first major survey into the take-up and attitudes to mandatory Tenancy Deposit Protection since its implementation have been announced by the Tenancy Deposit Scheme.  The first indications show that more than a third of all tenants are aware of the introduction of tenancy deposit protection schemes and their response to the implementation is positive.  Letting agents, major opinion-formers among both landlords and tenants, are also positive about mandatory protection.

Letting agents and landlords were questioned in the survey, carried out for the Tenancy Deposit Scheme during May.  It showed that landlords now have a high level of awareness of mandatory deposit protection, although substantial numbers said about the schemes in general that they either felt negative about them (37.6%), or indifferent (33.7%).  Despite this, 60% of all landlords questioned said they were joined to one of the three authorised schemes.  A further quarter do not take deposits at all and, as a result, fall outside legal requirements to be joined to a scheme.

Commented Lawrence Greenberg, Chief Executive of the Tenancy Deposit Scheme, ?It is surprising and gratifying that such a high proportion of tenants are aware and positive about the benefits of tenancy deposit protection so quickly after implementation.  Yet, with only a third being aware, these figures show that we still have a long way to go to get the message across to those who will benefit the most.?  Turning to the education of landlords, Mr Greenberg said, ?There are still large numbers who we must presume are breaking the law because they still have to grasp the fact that tenancy deposit protection is mandatory.?

The survey showed that letting agents have a very clear preference for the continuity offered by the Tenancy Deposit Scheme.  For three years it ran on a voluntary basis with the support of the three professional bodies for the rental sector, ARLA, the NAEA and RICS, before deposit protection became mandatory on 6 April this year.  To date, 5,380 letting offices have declared for the Tenancy Deposit Scheme, which already covers ?37 million in tenants? deposits.  It is believed that this is the scheme that continues to make a major impact on deposit protection in the agency sector of the rental market.

The Independent Taken from an article by Chris Partridge 16^th May 2007

Property investors are being urged to upgrade the energy performance of their properties as they refurbish them, without waiting for the arrival of Energy Performance Certificates (EPCs) for rental homes next year. Every property seller will need an EPC as part of the Home Information Pack after 1 June, but EPCs do not come in for rental properties until 1 October 2008.

Most landlords believe that EPCs will make little difference ? they say that tenants are interested only in nice places in good locations for reasonable rents, and energy bills are of minor concern.

An EPC surveyor looks at all the ways a house or flat can waste heat, such as inadequate loft insulation, lack of cavity wall insulation, draughts and obsolete boilers. After the assessment, they will award a rating from A (as good as it gets) to G (terrible). The document also includes information and advice on how to improve matters, such as lagging the water tank or installing double-glazing.

An EPC will cost about ?100 and will be valid for 10 years. Improvements made while the certificate is in force will not need a new survey. if you install a condensing boiler, for instance, it will explain on the certificate what level that will bring you up to, so all you have to do is produce the receipt and you have an audit trail."

The main weakness of the EPC scheme in the private rented sector is that landlords have to pay for the improvements, but tenants get the benefits of lower bills. There are grants and tax breaks available, but they are small in relation to the costs involved

The private rented sector accounts for only about 10 per cent of the housing stock, but it does perform particularly poorly in this respect, the reason being that landlords have nothing to gain by improving energy performance.

There is a feeling that tenants will be more prepared to make a decision on thermal efficiency if they see an EPC each time they see a flat. Eventually they would know that a flat with a low rating will cost a fortune to heat," he says.

Simple things that can often be done while tenants are in a property include replacing as many incandescent light bulbs as possible with low-energy ones, and draught-proofing doors and windows.

Five ways to make a difference

Improving your rating can be easy. Install a condensing boiler: Upgrade loft insulation: Make windows draught-proof; install double glazing: Install thermostats and timers: Use energy-efficient lights

Faulkner are already looking at ways of ensuring Landlords are ready for the legislation well in advance. Like TDP (tenant Deposit protection) not all agents will be able to cope with the increased red tape this will create and risk landlord incurring serious fines for non compliance.

From 6^th April 2007 all tenancy deposits taken by landlords (or agents for landlords) in connection with an Assured Shorthold Tenancy (AST) must be protected by law under one of two types of statutory Tenancy Deposit Protection (TDP) Scheme ? a single custodial scheme or one of two insurance based schemes.

Faulkner is a member of one of the two custodial schemes, called THE DISPUTE SERVICE

It guarantees protection of the deposit; and a fair, independent and expert assessment and settlement of any disputes over its return at the end of a tenancy. This is sometimes needed when landlords and tenants are totally unable to agree the amount due for damage, dilapidation or loss at the end of a tenancy.

Faulkner are eligible for the scheme because they are members of an approved professional body, like ARLA, (The Association of Residential Letting Agents) and NALS (National Approved Letting Scheme) and comply with all the regulations as laid down under the scheme. We are fully bonded, carry professional indemnity insurance, operate separate, ring-fenced client accounts and have qualified staff.

Faulkner has welcomed the TDS as a way protecting both Landlords and tenants.

In summary, if part (or all) of a deposit is in dispute between parties and after proper attempts to resolve that dispute have failed then either party can notify the dispute to The Dispute Service. Both parties will then be required to submit evidence for the dispute resolution provider to adjudicate on the dispute and decide what is fair. Once adjudication has been made the administrator will allocate and pay out the money in line with findings within ten days.

For more details

The Dispute Service Limited, PO Box 541, Amersham, HP6 9ZR

Call 0845 226 7837

Or go to The Dispute Service web site at

www.thedisputeservice.co.uk