Monday, 7 June 2010

HomeLet Insurance update

HomeLet the insurance provider of Tenant and Landlord insurance products has just sent out it's latest newsletter.

Below is an extract:

May 2010 saw the formation of the new coalition government, and many are making predictions on what this could mean for the lettings industry. After some delay Grant Shapps was appointed as Housing Minister, but so far there’s been no mention of any future plans for the lettings industry. Heidi Abbott, HomeLet Sales and Operations Director commented ‘It’s understandable that the new government are focusing on addressing the key economic issues and tackling the county’s current deficit. However, it’s key that the new government clearly outlines their long term plans for both the private rented sector and the lettings industry.’

There have been mixed messages about the recovery of the buy-to-let market. On a positive note 80% buy-to-let mortgages are back and apparently there’s been an increase in the number of landlords looking to expand their portfolios. However, there are also fears that property owners and landlords could look to sell their assets in the short term to beat the anticipated rises in Capital Gains Tax, which could be included in Chancellor George Osbourne’s emergency budget next month.

Research by Belvoir has confirmed that there has been an increase in the number of larger homes and country residences available to let, which is good news for landlords who have invested in larger properties.

Tenants are now looking to rent as a more long-term option because they know that larger homes are cheaper to rent than buy. But with more large houses available to rent and longer tenancy terms, competition to find the right tenants is fierce – and the case for effective tenant referencing is stronger than ever.

The housing market overall has seen a slight boost in line with spring’s seasonal trend – the NAEA (National Association of Estate Agents) reported the biggest jump in sellers since August last year, while there was also an increase in the number of potential buyers. This bodes well for the summer, with growth expected to continue for the sales market.

Finally – although HIPS have been suspended landlords still need EPCs (Energy Performance Certificates)

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