New legislation brought in to tame unscrupulous sale and rent back landlords

With more people finding themselves homeless as a result of bad practice in the Sale and Rent Back market, the Citizens Advice Bureaux (CAB) has welcomed a recent FSA announcement regarding regulation.

The CAB social policy officer Peter Tutton said: “We have seen where the sale and rent back sector has caused considerable detriment in the past. While sale and rent back agreements might be the right thing for some people, Citizens Advice Bureaux have reported numerous cases where bad practice has resulted in people losing both substantial sums of money and where they were not permitted to remain in their home in the longer term, finding themselves homeless within a year.

“We have been calling for regulation of sale and rent back agreements since 2006 and are relieved that action is being taken quickly, especially considering the impact of current climate where more people are struggling with mortgage arrears, facing the threat of repossession and may be attracted by what appears to be a solution.

“This will provide much needed protection for consumers, stop cowboys and provide controls on who can provide these agreements and what they can do.”

His comments follow the government’s recent secondary legislation laid before Parliament to bring sale and rent back agreements within the scope of Financial Services Authority (FSA) regulation.

The Government also published a summary of responses to its consultation on the sale and rent back market, which closed on 1 May 2009. The FSA is to publish details of its regulatory regime, which will take effect on 1 July 2009 subject to Parliamentary approval.

The Government's consultation followed an Office of Fair Trading (OFT) market study published at the end of last year, which looked at the impacts of the growing sale and rent back market. The OFT report identified a number of risks to homeowners entering into these arrangements and made three recommendations to Government, including compulsory regulation, increasing consumer awareness and improving information about housing benefits.

The legislation announced recently includes a two-stage approach to regulation, in order to ensure consumers are protected as quickly as possible in the current market environment. The FSA will put in place its full regulatory regime in the second quarter of 2010, following consultation and the publication of its final rules.

The Chief Secretary to the Treasury, Yvette Cooper, said: “The Office of Fair Trading found last year that vulnerable homeowners were at risk from unscrupulous sale and rent back operators. It's not right that people can be pushed out of their homes through dodgy deals.”

Renting to students can reap dividends for buy to let investors

Renting out properties to students can help landlords beat the recession, says Landlord Assist, the nationwide tenant eviction and rent arrears collection firm.

It says that while much of the Buy to Let market is in the doldrums, student letting remains an appealing prospect as accommodation remains in hot demand.

The latest figures from the UK University & Colleges Admissions Service (UCAS) showed an 8 percent increase in higher education applications last year, as more people looked to delay entering the jobs market.

This is good news for landlords with properties in university towns, where the yield can be considerably higher than normal Buy to Let properties, sometimes as much as 10 percent.

Graham Kinnear, MD at Landlord Assist, said: “Very few students are able to afford mortgages, so there remains plenty of scope in the student market, particularly in so-called university towns. The market tends to be predictable and reliable as students tend to stay in a property for at least a year at a time.

“After students complete their studies they generally plan to return to their home town, therefore it is uncommon that they refuse to leave the property.”

But his colleague Stephen Parry warns that landlords should not be blinded by the hope of increased yields.

He said: “In the current economic climate landlords across the board are fighting to retain tenants, and also competing with ‘accidental’ landlords who have entered the market offering cheaper rents because they are unable to sell their property.

“As a result there are more properties out there for students to choose from and this will no doubt affect the monthly return that landlords can expect to earn.”

Landlord Assist also warns that renting to students is different from the average rental property. Prospective landlords looking to enter the student accommodation market must consider the legislative requirements prior to entering the market.

Houses may need to be licensed under the ‘houses in multiple occupation’ agreement, deposits must be protected under the tenancy deposit protection scheme; fire, gas, electrical and other safety requirements must be met; and landlords are also legally required to show tenants an energy performance certificate.

Landlords must also be prepared to deal with a higher level of wear and tear and have funds available to correct any damage ready for the next academic year.

MPs turning to rented accommodation is good news for landlords and taxpayers

With the controversy over MPs expenses rumbling on, a property expert is estimating that taxpayers will save more than a million pounds a year if ministers and Lords are forced to rent accommodation near the Palace of Westminster rather than buy second homes in the capital.

In response to public fury over second-homes, Tory Party Leader David Cameron has said his MPs will only be allowed to rent second-homes rather than buy. Nick Clegg, leader of the Liberal Democrats has said the only long-term solution with second-home expenses is to bar MPs from buying or selling properties at all.

The average rent for a studio flat in Westminster is £1,378 a month. But assuming an interest-only mortgage at 4.2 percent on a purchase price of £538,404 at 75 percent LTV (and mortgage fees of £1,000 amortised over two years) renting costs approximately £177 less than buying.
With 1,372 tenants to pay for, taxpayers will end up saving approximately £1,267,399 every year on housing allowances alone according to Smartlandlord.co.uk.

MD Keshav Thukaram, said: “This is obviously good news for taxpayers who will save as a result of this move. The saving should be even larger assuming parliamentarians have less scope to charge for renovations or flipping. And some MPs can rent in cheaper Lambeth, but we’re not counting on that.”

Although the flood of MPs and Lords looking to rent property in Westminster will be good news for taxpayers, it will be bad news for local tenants.

Smartlandlord.co.uk says rents in Westminster are set to rise significantly as MPs and Lords pile out of the second-home market and into rented accommodation.

There are only 29,000 privately rented homes in Westminster, and Smartlandlord.co.uk says the low level of housing stock will not be able to accommodate an influx of 1,372 MPs and Lords.

Thukaram added: “With 646 MPs and 726 Lords looking for rental properties, we’re going to see a dramatic increase on rents in the local area. It’s a question of supply and demand.

“If demand suddenly goes up and supply is stagnant, market forces will push up prices. I’d say a 5 percent increase on the average rental bill is about right. The increases in rents should be good news for local landlords.

Scottish landlords urged to smarten up to avoid having empty properties

Edinburgh landlords are being urged to consider property upgrades to stay ahead of the competition.

With more rental properties on the market than at any other time over the past five years, tenants have a wide choice of high quality accommodation with up-to-date fixtures and fittings.

In order to minimise void periods and ensure tenants renew contracts landlords have started upgrading kitchens and bathrooms and redecorating city centre properties.

Edinburgh property lettings and management specialists Cullen Property have seen their refurbishment service gain in popularity over the past six months.

Operations Director Steve Coyle said: “Landlords have to compete for tenants if they want to avoid flats lying empty.

“Property types that were hard to find such as two bedroom flats in sought after areas, are now available across the city and prospective tenants can take their pick, making it even more important that landlords offer accommodation to a high standard.

“Our refurbishment team has definitely been busier than ever before over the past six months advising existing landlords as well as new clients on changes needed and how they can make a property more attractive.

New landlords tend to underestimate the importance of a property’s quality, but offering a high standard of accommodation massively increases their chances of finding a reliable, long term tenant.”

While Edinburgh’s property market is showing some early signs of recovery, Cullen Property predicts that the number of flats available for rent will remain high for the foreseeable future as landlords wait for property values to rise again.

The company currently manages nearly 300 flats across the city and continues to achieve above 98 percent occupancy levels.

Residential Landlord - In brief

Bank of England committee says no change in base rate

A BBC business journalist who said on Breakfast Television that he would eat a computer mouse if The Bank of England’s Monetary Policy Committee changed the base rate this month has been spared the microchip meal following the announcement that the official Bank Rate paid on commercial bank reserves at 0.5 percent.

The Committee also voted to continue with its programme of asset purchases totalling £125 billion financed by the issuance of central bank reserves.The Committee expects that the announced programme will take another two months to complete. The scale of the programme will be kept under review.

A £75 billion programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The programme was increased to a total of £125 billion on 7 May 2009.

Council leads the way in housing homeless people in the private landlord sector

Camden Council has welcomed the London Mayor’s renewed promise to halve severe overcrowding and reduce under-occupation in council homes, by two thirds, by 2016.

The Strategy promises a London-wide social housing mobility scheme by 2011.

Camden has led the way in many of the strategy’s preferred solutions. It pioneered the London Landlord Accreditation Scheme and successfully housing vulnerable and homeless people in the private sector.

Camden has also backed the Mayor’s pledge to deliver 50,000 affordable homes by 2011 and deliver more family homes across the capital.

Camden is already working towards the Mayor’s agreed target of providing 1000 affordable homes in the borough over the next three years.

Landlord who changed his locks opened the door to a court appearance

A landlord who changed the locks on a property he rented out in an attempt to get rid of his tenants had to face a court to explain his actions recently.

Milton Keynes Magistrates were told that when local housing officers were called in to investigate following a complaint by the tenants they also discovered the HIMO (House in Multiple Occupation) was unlicensed.

Dr Anthony Ojo, of Clegg Square, Shenley Lodge, admitted failing to ensure that a HIMO was properly licensed, for which he was fined £1,000.

He received a further fine of £200 for changing the locks with the intention of making the occupier to give up occupation at his Oldbrook property. Ojo was also ordered him to pay the council’s costs, of £1,196.24.

New code of conduct for buy to let landlords explained in 'plain English'

A new code of conduct and complaints system for residential landlords has been launched by the British Property Federation (BPF).

The new scheme also offers a free downloadable tenancy agreement form which has been welcomed by Shelter, the housing charity.

The complaints system claims to offer independent redress to tenants on all aspects of their tenancy and the BPF says it is the first time that landlords have willingly signed up to any such measure.

The BPF Assured Shorthold Tenancy agreement has been endorsed by the Plain English Campaign as it explains the rights and responsibilities of landlord and tenant in every day language, rather than legal speak.

Both initiatives come as the Government considers a positive future for the private rented sector, as set out in its Rugg Review and in anticipation of a Housing Green Paper later this year. It also comes as the Homes and Communities Agency and Mayor of London consider how best to support an expansion of institutional investment in the sector.

Liz Peace, chief executive of the British Property Federation, said: “There is a hell of a lot of good work going on in the private rented sector, by various organisations and Government, to cast a new deal for tenants, which expunges the sector of those who bring its good name into disrepute and provides the climate in which good landlords can thrive.

“The Government is doing its part to support the sector as a positive housing option. However, we also felt we could be doing our bit to provide occupiers with greater reassurance that they will be treated fairly and hence the agreement and code we are launching today.”

The BPF says the initiatives are not only meant to help tenants, but landlords. The interactive web-based agreement, for example, can be accessed by any landlord free of charge.

Andrew Pratt, managing director of residential Grainger Plc, said: “As the UK’s largest private landlord we very much support efforts to deliver tenants the best possible service. We have been members of the Housing Ombudsman Service for a number of years and have found membership to be very beneficial.

“Having a code, access to redress and an agreement that is easy to understand will I hope provide occupiers with the peace-of-mind that BPF members deliver a very professional service.”

Sam Younger, Chief Executive of Shelter, said: “Private rented sector tenants must be able to challenge landlords and have a proper complaints procedure when problems arise. The BPF's commitment to good practice will help to raise standards in the sector and improve conditions for conscientious landlords and their tenants.”

Student tenants provide a counter-cyclical buy to let investment

Rental growth and high occupancy rates continue to attract investors to the student accommodation sector, though the limited availability of appropriate investment vehicles risks frustrating attempts by individual investors to benefit from the sector, according to a new report from Savills Research.

“High demand, low supply growth, rising rents and high occupancy rates make student accommodation an investment vehicle of choice during uncertain economic times, and suggest that the sector will remain relatively low risk for the foreseeable future,”, explained Jacqui Daly, director of Savills Research.

She added: “An underlying supply/demand imbalance points to a robust outlook for the sector, while the fundamental strengths of the business model mean that capital values have not fallen to the same degree as other commercial or residential real estate.”

Nationally, average rents for Purpose-Built Student Housing (PBSH) grew by 5 percent between 2007/8 and 2008/9, and 7 percent in London.

While private rented sector rents offer higher rental growth (+8 percent nationally and +10 percent in London), this is without the certainty of high occupancy rates. Demand for PBSH shows no signs of falling and this will underpin future growth. Undergraduate student applications are up 9 percent for 2008/9, with growth in student numbers outpacing the new supply of accommodation by a factor of 10 nationally and 15 in London.

However, despite the benefits, Savills Research believes that the current financial climate – in particular the withdrawal of developer debt-funding – will limit the scope for investors to grow their interests.

As a result, the past 12 months have seen consolidation of stock, with operator activity focused primarily on buying and selling existing stock from universities and private operators, as well as refurbishing old university stock, rather than organic growth through new developments. As a result, and in the face of rising student rolls, demand will continue to rise.

Marcus Roberts, head of student housing at Savills, said: “Our forecast of 10 years ago that student accommodation would be a counter-cyclical investment is proving to be accurate. The scope for individual investors to access this market is rather limited against a backdrop of constrained credit availability, particularly as lenders have tended very recently to tarnish student accommodation with the same brush as buy to let investments which have proven very much higher risk in the market downturn.

“As credit becomes more available, however, we would expect to see investors exploiting the sector’s potential. One such model would be the creation of clusters of student accommodation, which given rising demand and a frustrated supply channel, would offer a relatively secure investment model for the foreseeable future.

“At the institutional level the counter cyclical dynamics of the sector are boosting investor interest. After risk adjustment, this is a sector that is still showing rental growth, clearly setting it aside from other commercial investment vehicles.

“The model is based on many individual students regularly paying small amounts of rent, meaning that the risks of large scale default or voids are extremely negligible, with or without a university guarantee.”

Deposit dispute evidence against landlords goes online

Buy to Let owners now face the prospect of being accused over the internet by tenants who dispute repayments of their deposits.

Mydeposits.co.uk has launched an online dispute service means tenants can now make a complete claim online, something the company claims no other deposit scheme offers.
Previously, tenants had to call or email mydeposits.co.uk during office hours to start their dispute claim. The new system allows claims to be made instantly at any time of the day or night.

This, says the company, simplifies the dispute process for both tenants and landlords, and ensures the dispute process can begin as soon as possible.

This new service allows tenants to provide evidence for their claim by uploading photos and scanned documents such as inventories. The claim can be completed all in one go or, if more evidence is needed, it can be saved online and returned to later.

As soon as a tenant submits a claim online the landlord or letting agent will be informed. The service also offers landlords the chance to submit their own evidence and both parties can track the progress of the claim.

If a tenant wishes to send additional hard copies as evidence the online service also provides a printable address label with the claim number on it.

In addition to the online dispute service tenants can still raise a dispute via phone or email.

Eddie Hooker, chief executive at mydeposits.co.uk, said: “We are proud of the online dispute service; which is exclusive to mydeposits.co.uk. To raise a dispute all a tenant needs is access to the internet and a live email address and they can start the process whenever and wherever they like.

“Although only a tiny fraction of tenancies end in dispute, it is reassuring for tenants to know they now have an even more efficient way to have a dispute resolved.”

• A First Lets landlord forum is being held by Rushbridge Borough Council at the Civic Centre, Pavilion Road, West Bridgford on Wednesday 10 June from 2pm - 4pm.

First Lets is a partnership between the three Borough Councils of Broxtowe, Gedling, and Rushcliffe and has been developed to create stronger links with local landlords and letting agents and to help more people enter into private rented accommodation.

Landlords are being informed that if they have a property to let in the boroughs of Broxtowe, Gedling or Rushcliffe, they can register and submit it via the Borough Council website and it will be advertised free of charge.

For more information about the scheme, contact Michelle Howell, First Lets Project Leader on 0115 914 8511 or email mhowell@rushcliffe.gov.uk.

Two agents expelled by Ombudsman after failing to make payments

Two estate agents have been expelled by The Property Ombudsman service after failing to pay awards made against them.

One of the firms operated in the lettings market and can legally still deal with rental property despite the dismissal.

Both were informed of the decision a month ago and asked for their dismissals to be delayed while they paid the outstanding sums. But this has not been done so their expulsions are now confirmed.

The agents are Brooklands, of 94 High Street, Newton-Le-Willows, Merseyside, and DP Estates, of 12 Crouch Hill, London.

Property Ombudsman Christopher Hamer made awards totalling £3,724 against Brooklands following two complaints and £817 against DP Estates following a single complaint.

In the case of DP estates, the reasons for the original awards against them were:

1. Failure to provide a copy of the tenancy agreement prior to occupation by the tenant;
   Did not notify the landlord of key terms in the new tenancy agreement;
2. Showed a “destructive / unprofessional” attitude because another agent was instructed to sell the property;
3. Omitted to meet complaints with appropriate response and failed to respond to phone calls and emails throughout the period 2005-2007.

The reasons for the original awards against Brooklands were due to one case of unfair treatment and discourtesy and another involving the charging of two parties a fee when the terms and conditions of the agency agreement did not entitle them to this.

“Both these firms are involved in property sales with DP Estates also covering lettings,” said Bill McClintock, chief operating officer of The Property Ombudsman service.

“As a result of their dismissal from our scheme they are no longer registered with an approved redress scheme as the law now requires for agencies involved in residential property sales.
“We will be advising other estate agency bodies, and the Office of Fair Trading, about the decision taken by our disciplinary council to dismiss these two firms.

“The public should be aware that these agencies will need to be able to produce evidence of registration with an alternative redress scheme if they are to continue to sell residential property in the UK.

“Legally they could still be active in property lettings, but again there would be no Property Ombudsman redress, lessening consumer protection, which is available voluntarily from thousands of other UK lettings agencies.

“It is extremely rare for agents not to abide by the decisions of the Property Ombudsman, Christopher Hamer, and these expulsions show that the scheme has effective sanctions when needed.

“Ultimately, lack of registration with an approved redress scheme means no UK estate agency can take any part in residential property sales. Those who ignore the law possibly face a fine of up to £1,000 from trading standards officers, who are aware of our decision regarding these two firms.”

Landlord under investigation after dawn raids on flats and houses

Harrow Council has broken up a property racket which allowed a landlord to make up to £36,000 a month by cramming families into single rooms in unsafe flats and houses.

Raids led by the authority found families paying up to £1,000 for one room - in some cases little bigger than a box room.

One family-size home was subdivided to accommodate 17 people in six self-contained flats plus an outbuilding. What were described to the tenants as kitchen facilities turned out in a number of cases to be simply a microwave oven.

Two families had to be re-housed after the Fire Brigade were required to cut gas and electricity supplies because of safety concerns. It was feared a serious explosion could occur after a significant gas leak was discovered.

Eight simultaneous dawn raids were launched on Tuesday, 19th May by the council's Private Sector Housing Enforcement and Planning Enforcement teams following investigation into the landlord and his associates, who are not being named for legal reasons.

One property contained 17 people in six bed-sits and an outbuilding. In another, five people were found living in a ground floor room, while 10 others were spread out over the first floor, loft conversion and an outhouse.

Legal action on all eight properties is now being sought with regards to planning issues ranging from potential unauthorised extensions to the use of outbuildings for residential purposes.

“Three homes inspected by housing officers were found to be overcrowded and in breach of the Housing Act and fire safety. None had legally required fire escapes or smoke alarms and all were confirmed as unlicensed Houses in Multiple Occupation.

Cllr Marilyn Ashton, portfolio holder for planning, said: “We have a responsibility to ensure that in this country people's basic rights and needs are catered for. Instead we uncovered a squalid picture of overcrowding and exploitation of our most vulnerable citizens which could have come straight from Dickens' London.

“The people made homeless from these raids are now in proper and modern accommodation where they should have been in the first place. It is only a pity they first fell prey to those who put profit over human dignity.

upad goes nationwide and invites landlords to join Facebook revolution

The introduction of a ‘Facebook Rental Surgery’ is just one of the ways upad is embracing social networking as it rolls out its rental service nationwide.

upad launched in London in October 2008, offering landlords a way of advertising their properties for a one-off cost of £59.

The company claims this service is now available to the 1.5 million landlords in the UK which they say is equivalent to the entire populations of Birmingham and Glasgow combined.

Visitors to the www.upad.co.uk site can link to upad's Facebook group, the 'Rental Surgery', where a team of experts including a solicitor and IFA can answer questions online on issues ranging from capital gains tax to tenancy agreements.

Renters and landlords can also share their views and experiences via mini news alerts, discussion boards and RSS blog feeds.

A new Wikipedia (www.upad.co.uk/wiki) application provides free information relating to the property rental sector. As well as searching for material (by words and phrases) individuals and companies will be encouraged to build the upad community by contributing relevant articles and content.

James Davis, upad's CEO, explained: “upad makes life easier for landlords, and the take-up of the service following its launch in London demonstrated that people are crying out for what we can offer.

“As we go national, we continue to match people and properties. We also know that both landlords and tenants need information and advice. And that's where options like the Facebook Rental Surgery and the upad Wiki come in - everything people need, all in one place.“Despite the importance of social networks in many other walks of life, no online communities existed for landlords and tenants, so we set about changing that.”

To mark its national launch, upad is giving away £100,000 in free online advertising. Between 10th and 19th June 2009, upad will allow almost 1,700 ads to be posted at no cost, enabling landlords and estate agents to advertise as many vacant properties as they want free of charge.

Buy to let landlords warned to be on their guard as identity fraud soars

Misdirected post and utility bills wrongly addressed to landlords or previous tenants can provide fraudsters with ready material to steal identities and gain control of financial assets.

And with identity fraud soaring by 40 percent during the recession, landlords and tenants at high risk of becoming victims this type of crime.

To help overcome this problem, Smartlandlord.co.uk is offering Express Tenant Referencing for just £5.

The service includes checks such as anti-fraud and personal identity, six year credit history, bankruptcy and County Court Judgments as well as predictive risk scoring to give landlords a reliable indication of their tenant’s ability to pay the rent.

In addition, highly experienced tenant assessors trained to detect fraud are available to take references from employers and previous landlords.

Smartlandlord.co.uk MD, Keshav Thukaram, is urging Buy to Let landlords to be especially cautious when signing up new tenants in the current economic climate.He said: “Although the number of cases of fraud has increased dramatically, the losses have decreased.

This suggests an increase in the number of people who are carrying out fraud on an opportunistic basis.

“These are not necessarily organised or experienced criminals but everyday people who have run into financial difficulty and have seized an opportunity.

Unfortunately people are more likely to lie about their background and credit history during a recession. This means that buy to let landlords have to be extra careful before signing up new tenants.

“Once an Assured Shorthold Tenancy Agreement is in place, it can be a nightmare evicting a fraudulent tenant. The tenant has the right to stay in the property for up to six months – even if landlord and tenant have agreed a fixed term of less than six months.”

Smartlandlord.co.uk has the following tips to help landlords avoid falling victim to fraud:

1. Ensure any correspondence from your lender is sent to your address, not your rental property;
2. Ensure that if your name is put on utilities in void periods, that it is switched to the tenant as soon as the lease commences;
3. During void periods, post addressed to the landlord can accumulate. Make sure you remove all of it before new tenants move in;
4. Ensure that you get any new tenants referenced. Avoid tenants whose references show up financial difficulties or CCJs.

Buy to let repossession figures are ‘inflated’ says mortgage specialist

The Buy to Let industry has been reacting to the Ministry of Justice and Council of Mortgage Lenders (CML) recent mortgage possessions data showing Landlord Possession Actions during the first quarter of 2009.

The figures showed that 35,745 landlord possession claims were issued using the standard and accelerated possession procedures on a seasonally adjusted basis, which was 5 percent lower than in the first quarter of 2008 and 1percent lower than in the fourth quarter of 2008.

27,485 landlord possession orders were made through the standard and accelerated possession procedures on a seasonally adjusted basis, which was 5 percent lower than in the first quarter of 2008 and 3 percent lower than in the fourth quarter of 2008.

44 percent of landlord possession orders made through the standard and accelerated possession procedures were suspended compared to 42 percent in the first quarter of 2008 and in the fourth quarter of 2008.

David Whittaker, Managing Director of Mortgages for Business said: “Given the shortage of Buy to Let lending through CML members, many landlords, and especially those with HMO properties and larger portfolios, have been turning to the banks for ‘war chest’ facilities secured against numerous properties and this takes them off the CML figures for the time being. The impact of their activity will only show up as they trawl the estate agents repossession lists and snap up properties as cash purchasers.

“The repossession figures are inflated by the practice of expressing arrears as a function of the current monthly loan payment – and given the significant reductions in monthly payments in the past six months, this data needs careful inspection.

“On the plus side lenders who have appointed ‘Receivers of Rent’ can also make headway into arrears as properties are let and the interest payments reduce month on month.”

Keshav Thukaram, managing director of Smartlandlord.co.uk said: “It’s not a surprise to see the number of Buy to let repossessions increasing. In the current environment, rental arrears are a rising problem for landlords - and increasingly they’re getting landlords into arrears with lenders.

“Rental arrears not only disrupt landlords’ income streams, but the costs to evict tenants from the rented property are substantial.

“Buy to let is not regulated and, as a result, landlords risk having properties repossessed very quickly, without due consideration of TCF guidelines that govern owner occupied sector.

“In the long-term, we are going to see more of this because the most common reasons for tenants getting into arrears with rent is redundancy or some reduction in income.

“Landlords should protect their income with Rent Guarantee products which will protect them against non payment of rent and provide legal expense cover.

“Landlords who are not in trouble should not be complacent. Payments for buy-to-let mortgages have dropped considerably thanks to the cuts in interest rate. They should overpay on their existing mortgages now to improve their credit rating for the future.

“Having said that, 40 percent of landlords own their property outright, so rising Buy to Let arrears figures do not represent instability of the whole private rented sector and should not be overblown.”

Female domination of lettings market to be recognised by NLA awards

This year’s NLA Property Women Awards, organised by the National Landlords Association (NLA), is hotting up with nominations coming in from every part of the UK.

Alongside the top prize is the NLA Green Property Woman Award, for those landlords who have made their lettings business and properties as green as possible, and the NLA Young Property Woman Award, for those aged under 30 who already successfully manage a property portfolio.

There are also 12 regional categories offering landlords the chance to win thousands of pounds in Habitat vouchers and makeovers at Selfridges.

According to a survey of 500 property women, female landlords have a different approach to their lettings business when compared to their male counterparts.

The respondents felt that female landlords were more likely to be sympathetic to the changing needs of their tenants. During the recession, this is now more important.

They also felt that female landlords were likely to pay more attention to detail, spending more time and money on aesthetics and the ‘little touches’ which make a home more comfortable.

The respondents to the survey also felt that female landlords see their lettings as a ‘people business’, viewing their tenants as customers. Better communication and a more supportive approach to dealing with their tenants were both held up as differences when compared to male landlords.

Interestingly those who replied to the survey also indicated that women landlords would be less likely to delegate tasks to other people (trades people or tenants) than male landlords.

Melissa Porter, property addict and ambassador for this year’s Awards, said: “It comes as no great surprise to me that lady landlords feel they offer something of the ‘woman’s touch’ to their rentals business. It’s not a tired stereotype that women tend to be more understanding but that doesn’t mean we’re a walkover!

“The Property Women Awards are designed so that first-class female landlords can get some recognition. So, if you’re a tenant with a brilliant lady landlord or you think you fit the bill yourself, why not get nominating? In a year of little good news, the Awards are an opportunity to show that the property market is not all doom and gloom.”

David Salusbury, the NLA Chairman, said: “From the research it is difficult to know definitively whether men and women run their lettings businesses differently.

However, the respondents to the NLA survey certainly seem to feel that female landlords are more approachable, better organised and especially sympathetic.”

Lucy Morton, President of ARLA (Association of Residential Letting Agents), said: “I have been working in the lettings industry for 26 years and it has definitely been female dominated during that time. One of the reasons for that, I feel, is that attention to detail and aftercare for the client has always been at the forefront of the female mindset.”

For nomination details go to www.propertywomenawards.org.uk.