David Salusbury, Chairman of the national landlords association, offers advice about the buy-to-let market
readers’
Q&As
David Salusbury
“Landlords need to do a lot of research about the local area, including amenities, schools, transport and recreation.”
How can I be sure a property will let?
No landlord can guarantee their property will let. But there are two absolutely critical factors which will certainly make it more likely. Location is probably the single most important thing to remember when purchasing rental property. Landlords need to do a lot of research about a local area including amenities, schools, transport and recreation. The other choice landlords must make is what type of tenant they are looking for: eg, students, young families, retired people. It is the well-researched combination of type of tenant with location that means the rental property will be attractive to the target tenant. I would also consider pretending to be a tenant and looking around similar properties: it’s important to keep an eye on the competition.
If my tenant injures themself, am I responsible?
If the tenant is injured owing to a pre-existing problem notified to the landlord which the landlord has not remedied, then the landlord may well be held responsible. Landlords have a legal duty of care to make their rental property safe. They must also comply with the Housing Act 2004 and the Housing Health and Safety Rating System. It is also essential that landlords have the correct insurance policies and have explored under what circumstances they will and will not pay out.
What is sale and rent back
and how does it work?
Sale and rent back (SRB), also known as leaseback, mortgage rescue and repossession prevention, is a niche but growing market. While the details of the products and services on offer vary substantially by provider, for the most part, SRB transactions are very similar to any other property sale. The rent back business model is fairly self-explanatory and involves an owner-occupier selling their property but remaining in residence as a private tenant: ie, selling and renting back.
What rights do I have to
access my property?
In an emergency situation, the landlord can enter the property immediately and without notice. But outside of emergencies, the landlord must give the tenant written notice at least 24 hours in advance. If the tenant refuses access, the landlord must apply to the courts for an injunction to enter the property. This can usually be obtained within 24 hours.
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Ying Tan
Managing Director,
The Buy To Let Business
The Buy To Let Business
Brokers’ briefs
Landlords are reporting record levels of tenant demand as potential home buyers delay purchases and wait to see how the current economic turmoil unfolds.
Tenant demand continues to outstrip supply throughout the country, according to research from the Association of Residential Letting Agents (ARLA). The findings show that 39% of ARLA members are reporting that there are more tenants than properties available. This dispels the myth that buy-to-let is in decline. The property market has slowed and buyers are stepping back because they are unsure of property prices or simply cannot secure a competitive mortgage. If they can’t buy, they must rent.
The strength of the rental market is retaining buy-to-let investors who were planning to sell their property. The Royal Institution of Chartered Surveyors (RICS) said that the number of landlords looking to sell was at its lowest level since January 2007 and yields are increasing at their fastest pace since 1999.
With rental expectations high, landlords continue to enjoy this increasingly lucrative market. Fears that a change in capital gains tax would bring a new wave of sellers have not, to date, been realised.
As is the case with all brokers, we have been looking at the economics that drive the buy-to-let sector and seeking to deliver new savings to landlords — for instance, we have recently launched a lettings division.
For further information about the NLA, email info@landlords.org.uk
or visit www.landlords.org.uk
Alternatively, call:
020 7840 8900
or visit www.landlords.org.uk
Alternatively, call:
020 7840 8900
