Tenants and prospective tenants will not be welcoming this news especially since this has been true of the last period.

For the second quarter in a row there has been a reduction in homes available for rent in the UK as those who were struggling prior to the recent economic upturn, and forced to rent out their properties, are now placing them back on the market for sale.

RICS confirmed: “while there is every chance that this recent development could reverse in the short to medium term if the UK property market continues to slow and the number or property buyers continues to fall, this is by no means certain to happen. However, in the short term it looks as though a lack of housing for rent across the UK will see rental values pushed up and place more pressure upon the budgets of many families.”

For many years prior to the economic downturn the buy to let market had been a very lucrative area of the UK economy but now many property investors seem to be feeling the opposite, as they appear to have overextended their finances and hence paid the price with their portfolios. It seems unfair that the cost of living in the UK appears to be picking up quicker than household income, placing increasing financial pressure on UK renters across the country – when will it stop and when will the government finally help reverse the problems?

This document sets out the Government’s strategies and plans for how to help both tenants and home owners to not only make houses more energy efficient but also how each household can produce their own energy.
 
In the Climate Change Act 2008 the Government committed itself to reduce carbon emissions by 80% by 2050. “Warm Homes, Greener Homes” published now is one step to achieving this goal. In this particular strategy the Government aims to cut emissions by 29% by 2020.
 
Quoting directly from the new strategy paper on the Government’s aim as follows:
 
* every home, where it is practical, will have loft and cavity wall insulation – an ambition we intend to deliver on by 2015;
* every home in Britain will have a smart meter and display to help them better manage their use of energy;
* up to 7 million households will have had an eco-upgrade which would include advanced measures such as solid wall insulation or heat pumps alongside smart meters and more basic measures;
* people living in rented accommodation will enjoy higher levels of energy efficiency as landlords – private and social – take action to improve the fabric of properties;
* there will be wider take up of district heating in urban areas, such as in blocks of flats, in new build and social housing, and in commercial and public sector buildings; and
* there will be a core of up to 65,000 people employed in the new industry of energy efficiency, and potentially several times more down supply chains. Jobs will include installing and manufacturing energy saving measures or providing home energy advice.
 
The Government seeks to achieve the above by using the following four strategies:
 
* New community partnerships and an enhanced role for local authorities, including a requirement on energy companies to consult with local authorities to deliver local area-based programmes; and support for district heating;
* Universal standards for the rented sector, including a new Warm Homes standard and proposals for regulation of the rented sector;
* Invest to save, including replacing the existing CERT mechanism with a new energy company obligation, and legislation to enable pay as you save financing that would provide people with eco-upgrades without upfront costs; and
* Support for consumers, including plans for a universal advice service and new standards for installation.
 
‘Pay as you save’ means that you will get a long term loan to make your property energy efficient. The loan will be paid back gradually through the savings on your utility bills. If the property is sold, the new owners will take over the savings and the loan.
 
In the document this is referred to as ‘green finance’ and it is expected that banks, energy companies and other financial institution will be able to offer sufficient funding for all levels of energy saving measures from insulation at a cost of a couple of hundred pounds to a complete eco upgrade at a cost of £10,000. By suggesting such an approach, it will often not be necessary for a homeowner to pay up front, as they may not have the money.
 
The Government acknowledges that ‘imposing’ these new energy measures on landlords mean that it will be costly to the landlord whilst the tenant reaps the benefits from reduced energy bills.
If this type of scheme is to be introduced for landlords the Government acknowledges that it will have to develop a variant of it that is beneficial for the landlord as well as the tenant.
 
They propose consulting on prohibiting the letting of properties unless the property has sufficient loft and cavity wall insulation. Such legislation would take force at the earliest in 2015.
 
There are concerns that people will not have sufficient knowledge and understanding in choosing the correct type of energy saving measures and also doubts about the standard amongst those selling and installing these measures. The Government will address this by improving consumer access to information and also offering tailored advice. A certification system will be introduced to make sure that certain standards are met for those involved in this industry and also measures to improve the technical understanding of energy saving measures.

Source: The Letting Network

The scheme, launched in January 2010, gives 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.
 
So far a significant number of Leaders’ landlords have expressed an interest in the scheme and are applying to the Energy Savings Trust to see if they will be able to benefit.
 
The government estimates that upgrading a boiler can save a household more than £200 a year. It has also projected that replacing 125,000 G-rated boilers will save about 140,000 tonnes of CO2 emissions a year.
 
Says Leaders’ managing director Paul Weller: “When the scheme was announced we emailed our landlords to advise them of the details and have offered to obtain quotes for them on replacing their old boilers. We are delighted with the response we have received and are doing all we can to 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. We have negotiated with some our gas contractors to offer additional discounts to our landlords wishing to replace their boiler under this scheme.
 
“At Leaders it is our priority to always stay up to date and informed on any issues or legislation that affect our landlords and tenants and to make them fully aware of their entitlements and obligations. However, not all letting agents are as aware as they ought to be about issues that affect their clients. If your letting agent has not made you aware of this scheme, we would urge you to question whether they are proactive enough in keeping you informed and looking after your interests.”
 
Leaders’ experienced property managers are on hand to help landlords in whatever way they can to ensure they benefit from this scheme if they are eligible and wish to do so.

Source: Leaders

Cullen Property’s MD Malcolm Warrack, who has 40 years’ experience in the property world, discussed the positive impact increasing rents and bolstered confidence in the property market will have on the city’s investment potential, as well as sharing his top tips for effective property investment and management.
 
He says: “Edinburgh is a safe haven for investment in bricks and mortar and Cullen Property manages this process from start to finish. This year will be a good time for potential investors to take that next step, and for existing investors to consolidate their portfolios.”
 
Attendees, who included landlords and representatives from AIB, Link Housing and HMO Scotland, had the chance to meet the Cullen Property team and get free and informal advice on their property investment queries.
 
Lorna Clayton, a city landlord who has rented properties through Cullen for over 10 years, says: “We have real confidence in the advice we have had from Cullen and it was great to hear about the positive outlook for the property market in 2010.”

New brand for Cullen Property
 
Cullen Property’s brand evolution includes a new website, tailored to existing and potential landlords, investors, and tenants, and colourful logo which now appears on all marketing materials, signage and company vehicles. To see the new look visit: www.cullenproperty.com

Cullen Property - Edinburgh properties on Lettingweb.com

 
This particular case was about a private tenancy with the rent payable monthly in advance on the 16th of each month. The tenant did not pay rent 16th August and followed on by not paying rent the 16th September. On the 17th September the landlord contacted the council and requested direct payments of LHA.
 
The council refused to start direct payment on the grounds that the rent was not eight weeks in arrears until the 17th of October and referred to The Housing Benefit LHA Guidance Manual which states that rent can not be in arrear in respect of a period that has not been served.
 
The Tribunal allowed the landlord’s appeal which means that eight weeks of rent arrears can be as short as four weeks and two days.
 
In December last year, Department for Work and Pensions (DWP), distributed circular HB/CTB A26/2009 to all the local authorities in UK. This circular is an amendment to some parts of the LHA Guidance Manual that was issued in 2008.
 
One of the clarifications in the circular is regarding “the eight week rule” in relation to rent arrears and at what time a landlord can request for direct payments of LHA:
 
"In a recent appeal tribunal (Doncaster v Coventry City Council, First Tier Tribunal 032/09/00932, 5 October 2009) the Chairman expressed the view that ‘Rent is in arrears once the contractual date for payment has passed irrespective of whether rent is due in advance or in arrear."
 
"In view of this, we have consulted with lawyers at Communities and Local Government to establish at what point they consider a tenant to be in arrears of eight weeks. As they are also of the view that rent is in arrears once the date for payment has passed without any payment being made, we have revised the LHA guidance so that it is consistent with this position."
 
It is also worth noting that if this had been a weekly tenancy, seven weeks and two days would constitute eight weeks of arrears. The guidance also states that LHA can be paid directly to a landlord for a minimum of eight weeks whilst a local authority gathers evidence to make a decision about direct payments to the landlord. The bottom line is still that sufficient evidence is needed before a local authority will start paying LHA directly to a landlord.

Source: The Letting Network

The site is aimed at providing Tenants and Landlords with a unique online resource and boasts an online Home Furnishings store.

The store which is developed in affiliation with Amazon.co.uk stocks everything from basic cutlery to designer linens. Managing Director Mark Bargeton comments; "It was important for us to re-design the entire McLean Forth.com online service. We looked at the daily requirements from tenants and landlords and tried to provide as many online solutions as possible. We're also pretty chuffed to be, as far as we are aware,the 1st UK Letting Agency to be offering an online home furnishing store".

He continues; “Having an online store that allows Landlords to furnish properties and tenants to purchase items quickly, securely and at competitive prices is a great addition”.

McLean Forth have mentioned that early feedback has been very positive. And the uptake from tenants using the online store has happened more quickly than they had initially forecast; “The store provides a one-stop-shop for anything required in the home. The product range is extremely large and the affiliation with Amazon gives McLean Forth a powerful and robust 24/7 shopping tool,” comments OneOar.com, the Web Team who manage the site.

The McLean Forth website will cater for both their Edinburgh and Fife offices. While the online Furnishings store is open to anyone.

For more information about McLean Forth visit the website McLean Forth.com

McLean Forth properties in Edinburgh

McLean Forth properties in Fife

 
Says Leaders’ managing director, Paul Weller: “Despite the disruption of the snow during the first two weeks of January, most of our branches experienced an incredibly busy month, with high demand for all types of properties, from studio and 1 or 2 bedroom flats to big and small family homes. We are finding that good quality properties are being snapped up quickly with many people waiting for more to come onto the market. This is an excellent time for anyone considering buying a property to let, or renting out their home, to enter the lettings market.”
 
Although the UK is officially coming out of recession, many people are still either unwilling or unable to take on a mortgage and are choosing to rent rather than buy. The availability of finance for first-time buyers has not improved significantly since last year and is still stifling the sales market, leading to increased demand in the rental sector.
 
Whilst recent research by the Association of Residential Letting Agents (ARLA) shows that 54% of landlords believe that tenants are being forced into renting as they either cannot afford to buy; cannot find a competitive mortgage; or are unable to find a suitable property to buy (these tenants have been coined "reluctant tenants"), Leaders believe that a significant number are choosing to rent because they prefer it.
 
Says Mr Weller: “Renting offers a more flexible and carefree lifestyle than buying. There are no worries about maintenance and repair costs, fluctuating interest rates affecting mortgage payments, or committing to a property or area long-term. Many people want or need to be able to move easily for work and enjoy the freedom that renting offers.”
 
This attitude towards renting, which is becoming more similar to that of mainland Europe where renting is the norm, means that renting out a property – provided it is done with professional, expert advice - is an attractive long-term investment.

Says Mr Weller: “Boom or bust, the letting market has the capacity to thrive: when the economy is doing well, people want the flexibility to move for work opportunities; when it is doing badly they prefer not to commit to a mortgage and the additional expenses of home ownership. Throw in the issues we have been experiencing lately - a credit crunch and a slow sales market - and it is clear why the lettings market is doing so well.
 
“Overall, we are very positive about 2010 as we expect the high demand for rented accommodation to continue in the face of both the slow sales market and the wider economic uncertainty.”

Source: Leaders

Suitable candidates may be surveyors, or may simply have experience of dealing with property, people, leasing and sales generally.

Chalmers & Co is looking for a wise owl able to pass a five-point eye test:

1. Read the property market – lettings and sales; residential and commercial.
2. Spot potential of a property and make the sale - finding a tenant or purchaser.
3. Distinguish and act on what is important to clients.
4. Identify and resolve problems with properties and tenants, often with the help of surveying and architectural colleagues.
5. Observe how to draw out the best in a team and work on this continually.

Candidates must have some relevant experience in lettings, management and selling property, as well as in managing a team.

Francis Ogilvy, owner of the firm, says:

“This post arises through the retirement of our current Lettings Manager after 25 years service – but we won’t let her go until a replacement to lead on lettings and estate agency work has been found!

“This is an opportunity to develop our estate agency side of the business, and the focus for this position will be on residential property; however, with the combined surveying and architectural disciplines across the firm, we are capable of dealing with most property types for lettings and management as well as sales.

“The range includes all types of rural property from flats to farms, bothies to barns, sheltered housing to shelter belts, high street stores to high-ground moors and from cottages to castles. And, we remain open to new challenges!”

Chalmers & Co has for nearly 40 years provided land and estate agency, property management and architectural services throughout East Lothian, Midlothian and the Borders as well as further afield. Linked initially with the surveyors John Sale, a buy-out in 1995 meant a name change yet retention of the personnel and property management ethos.

Francis Ogilvy adds:

“Our clients range from families with a long tradition of property ownership or management, to those who have become involved with property more recently for investment reasons. Our aim is to balance clients’ need for income from properties with capital growth and to do this through an integrated approach to property investment and management.”

Application procedure

Please apply in writing or via e-mail by 23rd February 2010 enclosing a covering letter or email, your CV and a completed job application form to Mrs Audrey Stevenson, a.stevenson@chalmers-surveyors.com or 48 High Street, Haddington, East Lothian EH41 3EF. More information is available on the Chalmers & Co’s website at http://www.chalmers-surveyors.com/newspage.php?id=33

Chalmers & Co properties on Lettingweb.com

With huge investment in the city many jobs and opportunities have been created increasing the popularity of the city as an excellent place to live and work. Aberdeen is also a major centre for students with the University of Aberdeen and The Robert Gordon University campuses contributing to the abundance of student letting in Aberdeen.

With the increased demand for rented accommodation in Aberdeen, www.Lettingweb.com has established itself as the largest market place for properties to rent in Aberdeen catering for all tastes and budgets. In quarter 4 of 2009, Lettingweb delivered on average over 14 enquiries per property per month to it’s Aberdeen letting agent members and has established itself as the no.1 site for flats to rent in Aberdeen on Google. Lettingweb has proved to be the market leader in Aberdeen, providing it’s member agents with tenant and landlord enquiries.

Portal comparison showing continued Lettingweb.com dominance, 4th February 2010.

An increasingly popular place to live; Lettingweb is the place to find flats to rent in Aberdeen.

 
John Hornsey, chairman of The Dispute Service’, says that there was a growing concern that a small number of letting agents seemed to make “disproportionate use of our alternative dispute resolution scheme.”  TDS then developed a new charging system that apparently was going to be fairer for all by taking into account the amount of tenancy agreements and the disputes lodged.
 
The recent increases in the subscription fees has caused confusion and outrage by many of the subscribers with some being informed that their subscription fees have been put up by a large amount. The minimum annual subscription fee for letting agents has been increased from £580 to £750. Only a third of the memberships have been charged the minimum fee. The subscription fee will be paid in two installments so that the second installment paid later in the year will take into account all changes in registered tenancies and the number of disputes submitted.
 
TDS’ website quotes the following:
“The minimum subscription is £750 for the year. Members’ subscriptions are calculated individually and take into account:
* the number of their tenancies which were registered as “live” on 13th December 2009
* the volume of deposit disputes in which they had been involved during the current financial year
* the professional body of which they are a member.”
 
The consequence though is that many letting agents are seeing a huge increase in their annual subscription fees.
 
Some examples:
One letting agent in Leeds has 4,000 tenancy agreements and it had 47 disputes last year. Old subscription fee: £15,000. Based on the new fee model calculated individually the agent has been asked to pay a staggering £72,000! Their reaction is of shock and dismay and they are most likely to pull out from that scheme altogether.
 
Another letting agent manages 1,100 properties whereby only half of the tenancies needed deposit protection and it had only nine disputes last year. Old subscription fee: £1,050. Based on the new fee model calculated individually the agent has been asked to pay £12,000.
 
There is also a growing concern that agents being members of RICS, ARLA and/or NAEA are being severely favored compared to agents with for example a NALS membership. A reliable source gave the following example:

One office is an ARLA member and the other office is a NALS member. Both offices have had only three disputes each but the ARLA office has three times as many protected tenancies compared to the NALS member. Both have been quoted the renewal fees to be £3.500.
 
The Chair of NALS is asking TDS to explain the charging structure in more detail and to publish a clear formula for the calculation of fees as the majority impression now is that the calculations are discriminatory towards NALS members and “random at best”.  NALS offers assistance to any of their members who wish to transfer to another deposit protection scheme.
 
This is the only scheme that encouraged members to register tenancies that the law did not require them to register (company lets, for example). Some agents thought it a good idea to offer let only landlord deposit protection by including the deposit in the TDS scheme account. Now that the number of tenancies registered is central to the charging these practices may seem somewhat less attractive.
 
The response from private rented sector has been massive and TDS, ARLA and NALS have been inundated with phone calls and emails from angry members. Only the future will tell if TDS remains stoical with their new charging structure. Watch this space...

Source: The Letting Network

East Lothian Council Landlord Registration office branded all costs and fees charged to tenants and prospective tenants by Letting Agents, barring the actual rental charge and tenancy deposit, as illegal. Charges including ‘key money’, ‘holding deposits’, ‘administration fees’, ‘tenancy reference fees’ and ‘sign-up fees’ were all sighted.

The letter went on to state that the income of the letting agent should only be obtained from the person they are acting for – i.e. the Landlord, and not the tenant. Landlords wishing to recover these costs may do this through rental income from the property, only; it went on to state, and not from any prospective tenants.

Letting Agents were asked to ensure that any such “illegal” fees to tenants and prospective tenants be stopped with all documentation both printed and electronic amended by 5th January 2010. Agents failing to comply would be deemed “no longer fit and proper by East Lothian Council” with the knock on effect of all Landlords under their management similarly being found no longer fit and proper.

Unfair and Unnecessary

This legislation brings with it an administration nightmare; one that is unfair and unnecessary with the vast majority of Letting Agents complying with all rules and fair trade.

Thankfully, representation for the industry through the Scottish Association of Landlords (SAL) and the Association of Residential Letting Agents (ARLA) to the Scottish Government and East Lothian Council have managed to since get the letter withdrawn. Both SAL and ARLA are looking to lobby for legislative change.

Letting Agents in East Lothian with flats to rent in East Lothian are off the hook for now but how long before the finger will be pointed again with Letting Agent businesses and their Landlords made to suffer?

Lettingweb.com has become the first letting only UK property website to introduce an iPhone application with a Global Positioning System (GPS) to identify the user's current location in relation to available properties to rent in that area.

Users of the Letting Web iPhone App can also view a photo slideshow and the property's particulars on their
iPhone, call the agent with an enquiry, forward details to friends or e-mail immediately from their phone so there's nothing for them to remember later. For the agent, the chances of receiving an enquiry are greatly improved as it all happens instantly.

Richard Matthews, Marketing Manager at Lettingweb.com, said:

"As a technology business we are focused on providing the most innovative and practical solutions for our letting agent customers. As many home hunters use iPhones, we decided to invest in the technology to make searching for a property easier and faster. This should also translate to higher enquiries for our member firms.

"We tested the application with a group of home hunters and almost 400 users downloaded it during testing. Since then the app has received some very favourable reviews on Apple's iTunes website. This technology is now available to view all of the 5,500 Scottish properties to rent each month on www.lettingweb.com".

Lettingweb's statistics for 2008 and 2009 based on over 5,000 properties every month, show the supply of rented accommodation in the first half of both years outstripped demand making it a tenants market. The reverse happened in the second half of both years with demand being greater than the supply of rented properties. However, industry experts believe rental prices are going to increase in 2010 due to a drop off in supply suggesting a landlord market for the beginning of the year which would go against the trend of the past two years. 

Mr Matthews added:

"If demand outstrips supply and the market gets competitive for the best properties, home hunters with our iPhone application will be able to access details of rented properties on location quicker which gives them an edge over others using more traditional methods."

Lettingweb.com works with the majority of letting agents in Scotland to provide highly sought after flats to rent in Edinburgh and flats to rent in Glasgow, but it also has properties to rent in other UK cities including Leeds, Liverpool, Manchester, Newcastle and has recently added Wales and Northern Ireland to its portfolio.

Mr Rob Trotter, Senior Property Manager, at DJ Alexander, the largest property agent in Central Scotland, believes it's a smart move by lettingweb.com to invest in the iPhone technology. He concluded:

"Accessing websites and property details via handhelds is the way forward. People expect to see property details in a user friendly format and this is what this application delivers. This technology is not a passing phase and those businesses that embrace it and deliver what customers want will be more competitive in the marketplace."

If a tenant loses their job the ramifications on the landlord or letting agent can be significant. Unemployment in the UK rose from 281,000 to 2.38 Million last year with the jobless rate at its highest for 10 years. It is also suggested that many people are no longer saving with 21% of the UK population having no savings at all and 38% of the UK working population not being able to survive past one month on savings alone. This is a risky time for the letting agent as it becomes harder to find an ideal tenant in a ‘nice safe job’. A method to reduce the financial risks as a landlord or letting agent is to conduct a tenant search with a full reference search as a rule.

Tenant searches can be conducted quickly online and provides information on a tenant’s financial history, their previous landlord and their current employer. Employment references can verify that a tenant is in work, their salary, how long they have been employed and the length of their contract. Previous landlord references will gather information from the previous landlord confirming the rent of the previous tenancy, the state of the property when vacated, if the tenant paid their rent on time and if they are a recommended.

A Tenant search online collects financial information geared at helping landlords make an informed decision on their tenant. Much of the process will verify the tenant’s identity to prevent identity fraud. By matching a tenant’s previous registered address with their electoral register information and bank accounts a tenants identity can be confirmed. Tenant credit searches will also take into account any outstanding debts to creditors, any bankruptcies and any insolvency in the past. When all this financial information is collated a tenant will be assessed with a credit score and it is from this information a clear and knowledgeable decision can be made about your rental.

With the suggested 38% of the UK working population being unable to survive past one month on only savings it is vital to check your tenant has stable employment and not too much debt. Full online systems which search tenants allow you to do everything you can to check the tenant moving into your rental property is a safe option. Online tenant searches do not have to cost the earth but could save you considerable heart-ache and stress and protect you from the non-paying tenant.

To view our Christmas card to all our member agents and users CLICK HERE

Best wishes,

The Lettingweb.com Team

Orchard & Shipman LetFirst is an assisted private rented scheme designed to encourage and assist people who are having difficulty finding good quality, affordable accommodation.
The scheme aims to prevent individuals and families from becoming homeless in providing access to private rented properties for up to 300 households over the next year.
 
The city has a shortfall of affordable housing and cannot meet the needs of all those facing homelessness using its own rented properties.  The private rented sector amounts to 17% of Edinburgh flats and households and can provide a major source of accommodation for those who require it. (Council housing represents 11% of Edinburgh households).
 
Orchard & Shipman LetFirst, the first scheme of its kind, is focused on those who are homeless, at risk of homelessness or in unsuitable housing and will offer people an affordable way into quality private rented properties.  It works by offering tenants access into properties without the traditional need for a deposit and advance monthly rent payment, thereby helping people into homes that without the scheme they would be unable to access.

Orchard & Shipman seeks landlords with suitable properties to participate in the scheme.
 
There are many attractions for landlords including properties professionally managed by experienced agents; a 6 month rental guarantee - unique to the private rented market - offering landlords greater flexibility in a fluctuating, uncertain economic market;  no up front administration costs and no inventory or tenancy agreement fees. The demand for accommodation in Edinburgh is high, therefore a high volume of prospective tenants will ensure a prompt let.  
 
Letfirst offers rents at a normal market rate but tenants do not have to pay a deposit or three months' rent in advance, which the company says removes some of the common barriers that prevent some people finding accommodation in the private rental market.

John Taylor, chief executive of Orchard & Shipman, said: "Letfirst is testimony to the innovative approach the City of Edinburgh Council has taken to bring about meaningful changes to the provision of homes throughout the city."

Any interested landlords should contact Orchard & Shipman’s Edinburgh office on 0131 553 0088 or visit the website at www.orchard-shipman.com