Hello and a Warm Welcome to the March 2010 edition of the Leading letter.
Exciting news! It's all change at Lenwell in Dunstable!
I am delighted to announce the purchase of Dunstable Property Lets by Lenwell Property Services, expanding our successful property management and lettings business within Dunstable. Following a smooth handover, we are keen to build on and improve the service to all landlords and tenants. We have been looking to expand in Dunstable as part of our longer term business plan, and this acquisition is a natural progression for us. We have admired how Dunstable Property Lets have built up a reputation for quality service, and are delighted that we have reached this agreement.
Our Dunstable team will now consist of:
Matt Carey -Lettings Manager
Matt has worked for Lenwell since May 2005 during that time he has proved himself to be a key member of the Lenwell team. He is ARLA qualified and a Domestic Energy Assessor and says, ‘I would love to hear from existing customers and new customers. I think the service we provide at Lenwell is second to none and I am looking forward to the challenge of this opportunity.’
Kieron Ayres -Lettings Negotiator
Kieron will work alongside Matt, dealing with new lets and providing continuity of service for existing customers. He has worked for Lenwell since May 2006 and is fully ARLA Qualified.
Karen Jackson -Office Administrator
Karen will deal with all office administration and will provide a point of contact in respect of any management issues being dealt with by the Luton office.
Lesley Lockyer - Lettings Negotiator
We are very pleased that Lesley will be working alongside the existing Lenwell team at our West Street Dunstable office. She will be covering inventories, inspections and viewings.
In the newsletter this month, we will be looking at the increase in the private rental sector, Lucinda tells the case of the Mysterious Shrinking House, the Council of Mortgage Lenders (CML) have released their latest Report and Statistics on buy-to-lets and repossessions and the Editor investigates the Boiler Scrappage Scheme.
Happy Reading!
Rob Wellstead
Managing Director
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Rental figures soar as home owners decrease
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The number of people renting a home from a private landlord has increased by more than one million during the past few years, Government figures showed in February.
Around 3.1 million people in England rented a property privately during 2008/09, up from 2.1 million in 2001, according to the English Housing Survey*.
The increase, which is likely to have been driven by house price rises pushing home ownership out of many people’s reach, was accompanied by a fall in the number of people living in their own home.
The research showed that 14.6 million people were owner-occupiers during 2008/09, down from a peak of 14.8 million in 2005/06. But despite the fall, owner-occupation was still the most common form of housing tenure, accounting for 67.9pc of all households, although this was down from a high of 70.9pc in 2003.
Renting a home from a social landlord was the second most popular option, accounting for 17.8pc of households, while 14.2pc rented a home from a private landlord, up from only 10pc in 2001.
The majority of people in the private rental sector aspire to buying their own home, with 59pc saying they hoped to buy their own place eventually, compared with only around a quarter of those in social housing. Among those who hope to get on to the housing ladder, 24pc of private renters and 10pc of social renters thought they would buy a place within the coming two years. Couples with no dependent children were most likely to own their own home at 42pc, while single people were most likely to rent a property.
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: “The latest survey provides further evidence that the proportion of households choosing to be owner-occupiers is continuing to decline. Unless housing supply increases substantially over the next few years, the likelihood is that many of those aspiring to buy a home will continue to find such a move out of their reach.”
The research, which was put out by Communities and Local Government, also showed that a third of homes were classed as being non-decent in 2008, because they were in a state of disrepair or did not have modern facilities, although social housing was in a slightly better condition than private homes. Around 22pc of homes also had a “potentially serious hazard”, such as narrow or steep stairs.
Meanwhile, Housing Minister John Healey has also announced £500 million of funding to build around 8,000 new affordable homes in England. More than 3,000 of the properties will be available through the Government's Homebuy schemes, which help first-time buyers get on to the housing ladder, with the rest available to rent through housing associations.
* The English Housing Survey is based on the responses of 17,691 people questioned between April 2008 and March 2009.
* * Source Daily Telegraph Group.
The Lucinda Newell Column
To be seen pottering along the highways and byways of Luton in her Mini Clubman, her trusted Scottie Malcolm at her side, our super sleuthing property rental expert Ms Lucinda Newell is on the case on your behalf!
The Mysterious Case of the Shrinking House........
According to the Association of Residential Letting Agents' (ARLA) most recent survey, 55 per cent of members have seen an increase in tenants struggling to meet their rental payments. Despite being a decrease on the previous quarter, this figure remains worryingly high.
This brought to mind a situation a fellow landlord and friend of mine had encountered. The Mysterious Case of the Shrinking House........
Now, as good as tenant referencing can be, it can't weed out all the problem tenants - namely those with the proverbial 'Screw Lose'! If you add this lack of sanity to a desire to wheedle ones way out of paying what one owes, you have on your hands a potentially troublesome situation!
This case first came to light when my friend was contacted by his agent for the third month in a row concerning the short payment of rent. The agent had been in touch with the Tenant concerned and requested the underpayment be paid immediately. Strangely though the tenant replied “No ' I'm no longer getting what I paid for and I am sick and tired of having to share....” “Share what?” the Agent replied.
But the tenant refused to elaborate any further, instead insisting a meeting was held between the Landlord, Agent and herself.
Intrigued to know more (and also desirous of his full rent) my friend agreed to the meeting.
The day of the meeting arrived and having collected the agent from his office my friend drew up outside his property. He was met by his tenant (a lady of a certain age - and yes I am allowed to say that as I am one myself!) who took them into the property.
“What is this all about?” my friend asked. “Why won't you pay the full agreed rent?”
The tenant went on to explain that she would no longer be paying the full amount of rent as the house was smaller than when she moved in - it was, in fact, shrinking! Slightly taken aback by this my friend enquired how she knew this to be the case. She replied that the tiles in the bathroom were falling off the wall and this was because the house was shrinking and she therefore felt she should not have to pay the rent on a 3 bedroom detached property, which, at the rate it was going, would only be a two bedroom detached property by Christmas! The “smashed-out” tiles were found at the end of the garden!!
Having dismissed the story as a ridiculous attempt to get out of the rent my friend and his agent were on their way out of the property when the agent remembered the tenants comment about sharing. The agent asked the tenant to explain the comment. “Oh that” she said... “The house is haunted by one of his relatives'' she explained pointing to the landlord, ''and I don't see why I should have to pay for his family to stay! If you don’t believe me you can ask my son because he talks to the ghost all the time!”
With slightly bemused expressions my friend and his agent left the property filled with a resolve to get the full amount of rent owed - and also to not renew the tenancy next time!!!
Whilst it is crucial that agents and landlords engage in a careful selection process for tenants, you can‘t reference for everything and every now and then, a troubled soul will slip through the net! Having spoken to Rob Wellstead, MD of Lenwell, I know that he would have reminded the tenant in the strongest possible terms that ''sub-letting'' (even to a ghost) was forbidden under the tenancy agreement!!
Come on Malcolm - Walkies!
I love to hear from my readers so let me know your thoughts - email me at editor@lenwell.com
February 2010 Council of Mortgage Lenders (CML) Report and Statistics
The UK housing market is experiencing a trend of ‘reluctant tenants’, following a shift in supply and demand for properties, according to the Association of Residential Letting Agents (ARLA).
ARLA’s research, conducted across UK letting agents and landlords, reveals that the surplus of rental property is reducing, while demand for properties rises.
According to ARLA, this shift has generated a wave of reluctant tenants. During Q4 2009 an average 41% of members surveyed reported more tenants than properties – compared with just 24% last quarter. In addition, ARLA research among landlords revealed that 54% of those asked felt that consumers were being forced to rent rather than buy.
“New tenants include those homeowners who were forced to sell their home during the last year either due to financial instability or a job-move. And many people now in a position to buy are struggling to find the right property, as there is also a shortage of both properties for sale and realistic mortgages,” explained Ian Potter, operations manager at ARLA.
“This rise in tenants is a positive sign for the industry, as it indicates increased market movement,” continued Mr Potter. “It also shows that many more people will learn the benefits of living in rental accommodation.
“However, as demand exceeds supply we are faced with a new challenge – how to provide enough good-quality rental properties to meet this demand. These figures confirm our long-held view that a strong Private Rented Sector (PRS) will be fundamental in meeting the accommodation needs of future generations. But without significant government support, the sector will likely struggle.”
In August 2007 53% of ARLA members surveyed felt that there were more tenants than properties – but this figure then dropped, reaching a low of 10 per cent in February 2009. The number of available properties began increasing again last quarter.
ARLA research for the fourth quarter also shows that the period for which properties are unoccupied has fallen once again, with the average void period for the UK down from four weeks to 3.9 weeks, as tenants snap up available properties quickly.
Rob Wellstead , Managing Director and Founder of Lenwell Property Services commented, “2010 will be an interesting year for the Property Rental Sector. We have started with an almost complete reversal of what we saw this time last year. In January 2009, we ran our January sale offering discounts on the first month’s rent to attract tenants. We are very excited about 2010 and will continue to offer excellent service and to our Landlords and Tenants, ensuring that we remain at the very top of our game!”
Source: Association at Residential Letting Agents at www.arla.co.uk
..... and finally
Lenwell are encouraging landlords to help reduce their tenant's energy bills by using the Boiler Scrappage Scheme.
Lenwell Property Services are advising their landlords to take advantage of the government's new boiler scrappage scheme to help reduce their tenants' energy bills and CO2 emissions.
The recently launched scheme provides homeowners in England, including private landlords, the opportunity to claim £400 off the cost of a new energy efficient boiler when they replace an old G-rated boiler.
It is estimated that upgrading a boiler can save a household more than £200 a year.
Nicola Gibbons, Lettings Manager at Lenwell Northampton explains. “All of our landlords are being contacted to advise them of the details of the scheme and we can arrange quotes for landlords who are considering replacing old boilers. We will encourage those who qualify to take advantage of this scheme; not only could this mean less in maintenance costs and hassle for our landlords, it will save our tenants a significant amount in energy costs and help to reduce CO2 emissions, something we fully support.”
A boiler is likely to be G-rated if it is more than 15 years old and gas fired; a permanent pilot light is also a good indicator. If the boiler is oil-fired it is likely to be eligible if it is more than 25 years old. If the householder is under 60 the boiler must be in working order and the main source of heating for the property; over 60's will be eligible even if it is not.
Sincerely,
The Editor
editor@lenwell.com