‘Never seen before’ student stampede to secure accommodation

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Hordes of students are making a last-minute dash to secure accommodation as the prospect of a more normal academic year becomes a reality.

UK rental guarantor service Housing Hand has reported an unprecedented surge in business, according to head of sales and business development, James Maguire (pictured), who says they’ve not seen a rush like it.

“The summer months are always our busiest period for student bookings, as young people arrange their homes for the coming academic year,” says Maguire.

“But this summer we’ve seen a record number of students leaving things to the very last moment before booking their accommodation.

Brexit and Covid have created the perfect storm in terms of delaying decisions around committing to the expense of accommodation for the year ahead.”

Housing Hand is the largest provider of rental guarantor services in the UK and also provides a free House Finder Service, which connects young people with student-friendly landlords and letting agents across the country.

It reports that the last two weeks in particular have seen last-minute arrivals from many countries, including India, the United States, Malaysia and many of the Middle East countries, which is filling the gap left by the continuing uncertainty Brexit caused for students from EU countries.

Terry Mason, Housing Hand’s group operations director, adds: “Last year, many UK students decided to take a year out, as the pandemic added uncertainty. This year, they have enrolled in university courses.

“It may follow that the European students are taking a year out as the Brexit/fee issue is compounded by the pandemic. If this is the case, then we will be looking at another bumper year next year.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Never seen before’ student stampede to secure accommodation | LandlordZONE.

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HMO rooms rated as Band A?

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After having gained planning permission we recently carried out a renovation of a large house into a 7 bedroom HMO with all the rooms benefitting from their own en-suite, but still having to share kitchen and lounge facilities, and all services of electric

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LATEST: Rent arrears recede amid improving economic confidence

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Just 6% of tenants are worried about the pandemic affecting their ability to pay rent, according to a new survey.

The Goodlord and Vouch State of the Lettings Industry report polled 1,750 tenants as well as 550 letting agents, who are also feeling confident about renters’ ability to keep up with payments; the number recording an increase in arrears during the past year has halved from 64% to 32%, with 14% of agents reporting a fall in arrears. 

Despite legislation, lockdowns and changing consumer behaviours keeping the market in a near-constant state of flux, both agent and tenant optimism is high.

But the report also reveals that a lack of stock is a major concern for agents, with almost half of those surveyed saying at least 5% of their landlords have left the sector during the last 12 months, while 64% predict the landlord exodus will only get worse. 

The annual study, which takes the temperature of the lettings market, is published in full next week and will also reveal industry opinion on upcoming regulatory changes, the impact technology is having on workforce numbers, and the proportion of agents who have unlocked new revenue streams. 

Tom Mundy (pictured), COO at Goodlord, says the insights indicate that most renters are feeling financially secure while agents aren’t encountering the escalating levels of arrears seen a year ago.

He adds: “This is borne out by the latest statistics from our monthly rental indices, with rents heading up and voids dropping during 2021. Key challenges do remain, with lack of stock clearly a huge area of concern for most agents.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Rent arrears recede amid improving economic confidence | LandlordZONE.

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Mortgage update: Lenders slash rates in mortgage wars

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Nationwide has unleashed the building society’s lowest ever mortgage fixed and tracker rates in a bid to grab market share from rival lenders.

Our mortgage partner, Hamilton Fraser Total Landlord Mortgages, reports on the latest mortgage rates and what this might mean for landlords.

Interest rates have dropped by 0.4 per cent – with the lowest dipping to 0.87 per cent for a two-year fixed-rate new mortgage or remortgage at 60 per cent loan-to-value with a £1,499 fee.

“Introducing sub-one per cent loans is a sign the mortgage market is becoming increasingly competitive and that more sub-one per cent deals will follow shortly from other lenders.” said Daniel Lee, Principal at Total Landlord Mortgages.

A typical borrower with a repayment mortgage of £200,000 over a 25-year term will pay £748 a month if the fee is added to the loan.

Other lenders with rates under one per cent include Barclays, NatWest and Royal Bank of Scotland.

Can landlords rent their property to family or friends?

Barely a week passes without a worried mum or dad speaking to us at Total Landlord Mortgages about renting a home to a child struggling to climb onto the property ladder.

Mortgage lenders have a strict rule about landlords renting buy to let property to family or friends. And often the terms of the loan bar letting to relatives.

But a lender has now stepped forward with the ideal solution – a family let mortgage at up to 75 per cent loan-to-value as a two or three-year fix. The deal has a 125 per cent stress test at 5.5 per cent and a tenancy agreement to complete.

“I know how much heartache this causes for families,” said Daniel Lee, Total Landlord Mortgages Principal, “I am thrilled that at Total Landlord Mortgages we can offer some help for families during these difficult times.”

Are you interested in finding out more about the new family let mortgage? Call Total Landlord Mortgages today on 0333 224 8918 to discuss your mortgage requirements or request a call back here.

Is it time for a buy to let mortgage review?

With mortgage interest rates at an all time low and new products continuously hitting the market, now is as good a time as any to review your buy to let borrowing.

Here at Total Landlord Mortgages, we have two great buy to let deals for landlords:

Deal 1

• For remortgaging a rental property
• 1.1 per cent two-year fixed rate
• Free legals
• Free valuation

Deal 2

• For remortgaging a rental property
• 1.59 per cent five-year fixed rate
• Free legals
• Free valuation

And what’s more, as a LandlordZONE reader or Hamilton Fraser customer you can get an exclusive discounted broker fee of just £250, this is a saving of 50 per cent! Call us today on 0333 224 8918 to discuss your requirements.

“With inflation rising and uncertainty on the horizon, I would urge landlords to seriously consider five-year fixed rates, especially if they have no intention of selling the property. With five-year rates as low as 1.59 per cent, it is almost too good an opportunity to miss.” said Daniel Lee, Principal at Total Landlord Mortgages.

Does your flat need an EWS1 fire safety check?

Relief is at hand for thousands of landlords trapped from selling or remortgaging apartments due to concerns about fire safety in blocks of flats following the Grenfell tragedy in June 2017.

The Government has scrapped the checks for blocks under 18 metres high following a review by a panel of independent experts. The experts confirmed cladding on the blocks did not present a high fire risk.

The decision opens the way for landlords to sell or refinance their apartments while freeing them from the cost of expensive remedial works.

But this isn’t all good news for landlords as in some cases, mortgage lenders are ignoring the guidelines and still asking for the EWS1 checks to be completed. EWS1 is the form that lets landlords know how safe the cladding is around blocks of flats.

One of Britain’s biggest lenders, Halifax, requires an EWS1 for any block with fire safety concerns raised by a surveyor.

“If we have received an EWS1 form for a building and the form states the cladding needs remediating before it is safe, we would not be able to lend on this property, and there is no appeals process. Only if a further EWS1 form was received to confirm remediation has been completed would we be able to proceed,” says a spokesperson from Halifax.

Other lenders, like HSBC and the Coventry Building Society, still require an EWS1 until the Government has withdrawn advice recommending fire safety checks on all blocks of flats.

The EWS1 check is part of an apartment’s valuation. The form covers a block of flats in England and Wales, but each apartment in a block needs a check in Scotland.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Mortgage update: Lenders slash rates in mortgage wars | LandlordZONE.

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LATEST: Universal Credit rent payments to come ‘with strings’ for landlords under Labour

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Labour’s shadow housing minister Lucy Powell (pictured) has warned private landlords that her party would put them under greater scrutiny to ensure their properties are up to scratch should her party win power at the next election.

Speaking at the Chartered Institute of Housing conference in Manchester, Powell said landlords who housed housing benefit claimants should not simply be given rental income “with no strings attached”, adding that the Labour Party was considering action to address this.

“On housing benefits, we spend a huge amount every year, most of which goes to the private rented sector, and we ask nothing in return from that money,” she said.

“We are going to be looking at tenants in the private rental sector. There is a lot more we can do about landlord licensing and landlord registration schemes.”

Powell, who took over as shadow housing secretary from Thangam Debbonaire earlier this year, is in favour of secure tenancies for life and creating more powers over HMOs and told the Commons in her first speech in the post that the government’s housing policies had failed.

“Now, more people are living in expensive poor-quality rented housing, subsidised by a soaring housing benefit bill,” said Powell.

Landlords’ reaction

A spokesperson for the National Residential Landlords Association says all private rented housing should be safe for tenants and meet all legally required standards, irrespective of whether a tenant is in receipt of benefits.

He tells LandlordZONE: “The fact remains that councils are struggling to make use of the wide range of powers they already have to tackle the minority of landlords who provide sub-standard housing and tarnish the reputation of the majority of responsible landlords.

“The key is enforcement. Simply coming up with new ways of developing lists of landlords does nothing to find those criminal landlords who will never come forward to make themselves known.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Universal Credit rent payments to come ‘with strings’ for landlords under Labour | LandlordZONE.

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The Needle In The Haystack

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Finding the solution to your Landlord Tax problem by reading the HMRC manuals can be linked finding a needle in a haystack and then threading that needle.

You might seek advice from your Accountants, but most are General Practitioners in Tax.

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