Here are some ideas I have put together to help you maximise your property investment.  Being a Landlord myself for the last 13 years, it now feels like quite a long road.  When I first started property investment seemed like an easy vehicle to make money, this was of course due to the property market going up and up.

The refurbishment and then the renting out of the property seemed easy compared to the market today. Students would accept  the regulation courdroy blue carpets and basic amenities, and the professional market thought a dishwasher was a luxury!  Now students also want a decent level of accommodation and  the professional tenants want something a bit special! Whether we find ourselves as an accidental Landlord or we chose this route of investment, we need to avoid those voids and maximise our returns. Some pointers which make very good sense in our current market:

• When increasing the rent, ensure the tenants are given a feasible reason for this increase. For example you may include some utilities in your rent, and with fuel prices up, this would be a legitimate reason..
• Don’t increase the rent so much that it is not affordable, and make sure it is comparable to the immediate local market and of a similar standard.
• Visit your property every quarter, minimum. if you employ the services of letting agency, ensure that this is done and you are informed of any issues. A tenant may notice a leak but not report it until the flat downstairs reports a massive brown wet stain on their ceiling! Noticing issues early limits the big repair bills.
• Attract your target market. Make your property fit the needs of tenant. This will ensure tenants remain at the property longer and won’t feel the necessity to move on. You will have higher occupancy levels.
• Minimising void periods. Advertise the property to let ASAP, don’t delay! Make sure the rent is right, too much and you won’t get any interest. If you are made an offer weigh it up sensibly. Have they offered £50 -£100 less, but want to move in back to back with the last tenant, then Think about taking it, how much other interest is there? It is a false economy to hang out for the higher rent and miss a months rent you will never get this money back.
• Note feedback from prospective tenants who have viewed and tenants who have moved out.  Why are they leaving? Is there something that they think would improve the accommodation? Listen to feed back it counts this is your audience.
• Make sure your tenants know what is expected of them. Draw a list of things which the landlord will not pay for I.E blocked pump on the washing machine (pockets not being emptied) blocked kitchen sink drain (from foodstuff).
• Before calling out the electrician etc. talk with the tenant on the phone, get as much info as possible. May be it is just a trip switch? Or something else the tenant can sort themselves. Teach tenants how to do re-light the pilot light for example. Or if you are handy perhaps you can do much of the basic maintenance yourself.
• Treat tenants well build a rapport. Just not too well that they ring you at 2am drunk when they have locked themselves out of the house!! Some want you as a surrogate mother!

Thanks to Tara Meeks of Railton Meeks for providing this article.

www.justdoproperty.co.uk

February brought with it some good news for the UK housing market as house prices saw a national uplift for the first time in nine months. With 14% increase in new buyers registering with estate agents and an 8.7% rise in the number of new homes listed for sale, February saw a growth in activity across the UK housing market.

However the South East and London experienced three quarters of these rises. London experienced the biggest increase at 0.3%, while the South East was not far behind with an average rise of 0.2%. Housing prices in London have come on leaps and bounds and are now 53% above their market low from March 2009. The only major global cities that have beaten London in terms of price growth since the financial crisis are Hong Kong, Jakarta and Beijing.

One reason why London property is doing so well is the continued interest from foreign investors with non UK buyers purchasing 60% of property sales above 5 million. A high proportion of this foreign interest in London property has come from Europe. With the unstable situation in the Eurozone, and London property being considered one of the three safe havens along with the Swiss franc and Gold, many wealthy Europeans from Greece, Spain, Italy and France have been investing in London property and convert their euros into bricks and mortar. A significant amount of these international buyers also have come from further afield from Russia, India and the US.

Foreign investor’s interest in London property comes as no surprise. London property remains a stable investment as the city remains a leading financial centre. The combination of low taxes for foreign buyers and the steady political, economic and legal system in the UK makes London property ever more attractive. Further to this, the world class quality of British education and convenient time zone gives London a significant advantage to other cities across the globe. It therefore comes as no surprise that over a third of all property purchases in London are acquired by foreign investors.

If you are interested in investing in London property, there are plenty of property investment companies out there that can advise you on the best ways to invest your money. For more information contact Galliard Homes.

The Land Registry House Price Index (HPI) is seen as the most accurate independent index by using data from completed sales.

In January 2013 it saw a small monthly and annual increase – both sets of figures up by 1.0%.

This puts the average house price in England and Wales at £162,441.

Property transactions however saw a slight fall over the year, with average sales per month in the period of August to November 2012 at 58,947, compared against 61,595 during the same period in 2011.

Regional figures

London continued to demonstrate higher increases that England and Wales as a whole, with a 2.5% monthly price change and a massive 7.1% annual change – considerably higher than other regions.

This places the average house price in the capital at £373,207.

The North West saw the largest fall in house prices over the month, down 1.9% to an average of £106,527.

The North West was also the region with the largest fall in prices over the whole year, down -4.2%.

Property Type

Flat/maisonettes had the largest difference in the year between January 2012 and 2013 with a 1.9% increase to an average price of £151,048.

Semi-detached had the smallest annual increase of 0.6% up to an average price of £153,931

London, UK – Demand for high quality commercial and residential property continues to grow across Africa on the back of the continent’s sustained strong economic growth and rising wealth, according to Knight Frank’s newly released Africa Report 2013.

Africa is in the midst of a period of dynamic economic expansion, having averaged GDP growth of more than 5% per annum over the last decade. This strong growth is expected to continue and is creating wealthier populations, particularly in the largest and most rapidly growing urban centres. Africa’s “mega-cities” such as Lagos, Nairobi, Accra, Lusaka and Dar es Salaam are increasingly becoming the drivers of its economic growth and, as a result, are attracting growing interest from occupiers, developers and investors.

In the retail sector, the increasing wealth and sophistication of African consumers is leading to rising demand for modern retail formats and western-style shopping centres. Countries such as Zambia, Ghana, Kenya and Nigeria have seen a wave of retail construction activity in recent years which has delivered the first generation of modern shopping malls to many major cities. The construction of further, and larger, shopping centres can be expected, as developers seek to meet the demand for high quality retail space from increased numbers of international retailers entering Sub-Saharan markets and major South African chains pursuing expansion plans elsewhere in the continent.

In the office sector, many key African cities have severe shortages of high quality space built to the specifications expected by international companies. This scarcity of supply has led to extremely high rents in some cities, particularly where there is strong demand for office space from international occupiers from the oil and gas sector. Indeed, prime office rents in Luanda and Lagos are amongst the highest in the world. In Luanda, recent construction completions have eased some of the pressure on the market and rents have become more affordable over the last twelve months but, even so, at U$150 per sq m per month, prime rents remain well above the levels seen in leading global office markets such as London, New York and Hong Kong.

Oil companies and the banking sector are established sources of demand for office space in Africa, but it is also noteworthy that African economies are diversifying and non-traditional sectors are emerging. The growth of mobile technology in Africa has been a particularly prominent phenomenon over the last decade. Africa’s technology boom is generating new sources of office market demand and the continent is now home to a number of growing technology clusters, such as “Silicon Savannah” in Nairobi and “Silicon Lagoon” in Lagos.

In the residential sector, the need for greater volumes of good quality housing is reflected in a number of ambitious new suburbs that are either under construction or planned by private property developers on the outskirts of existing large cities. Examples include the Eko Atlantic scheme on Victoria Island in Lagos, Tatu City in Nairobi and La Cité du Fleuve in Kinshasa. While all of these projects remain at very early stages, they may herald a wave of new large-scale urban developments across Africa. The demand from offshore buyers for high quality residential accommodation has continued to increase in countries including Morocco, Kenya and South Africa.

Matthew Colbourne, associate, commercial research, said “Africa’s impressive economic progress is generating a growing need for the construction of good quality property in major cities across the continent. The rising wealth of Africa’s middle class is leading to demand for increasingly sophisticated retail formats and better quality residential property. Meanwhile, as overseas companies seek to expand into Africa’s growing markets, and as African-based companies grow themselves, there is a need for investment in the construction of high quality office buildings, which are currently in short supply in many African cities.”

Peter Welborn, head of Africa, commented “Property investors and developers looking for emerging market opportunities are increasing external investment in Africa, particularly as the growth markets of the last decade such as Asia-Pacific and Central & Eastern Europe mature and the level of returns they offer begins to diminish. Many African countries remain challenging places in which to do business, but for those able to steer their way through African property markets, there is the promise of high returns and significant growth potential. Knight Frank continues to help investors navigate the rapids in over 40 of the continent’s most challenging environments.”

www.justdoproperty.co.uk

The January 2013 Housing Market Survey from RICS reports some positive signs in the UK market.

Key highlights:

• Price balance remains stable
• whilst transactions increased, new buyer
• enquires and new instructions dipped slightly
• price outlook continues to improve in 2013
• Regional price picture still fragmented – London and South East lead the way

The headline price balance retracted slightly to -4 from -1. This means that 4% more surveyors saw a falling rather than rising price over the last three months.

London continues to outperform the other regions with an above 50 monthly balance and 3 month average around 48. The Sout East is the only other region at odds with the other regions, albeit at the lower 11.

Wales however has just started to buck the trending just this month with a price balance of 11, although the three month average is still negative.

The bad weather depressed new buyer enquiries and new instructions in January, with both recording slight falls. However, newly agreed sales volumes continued to trend upwards in January, with the net balance recording its fourth consecutive positive reading. Additionally, sales per surveyor also increased by 3%, rising to 15.9.

www.justdoproperty.co.uk

Relocating to a foreign destination is something that appeals to many people in the UK, but the current economic climate means that some families have been forced to sell their homes overseas as they cut back on luxury spending.

Due to favourable rates abroad, this may not be such a bad idea. More individuals than ever before are selling their properties abroad and exchanging their funds for pounds using a sterling account through their bank.

However, before getting started with this important step, it is important that you consider your finances and get help with repatriating money to ensure you do not lose out in the long term. On top of this, knowing the basics about overseas property is a must for those who may not be clued up on the matter.

Why overseas?

Sellers are growing more tempted to put their property on the market overseas as declining currency at home makes the foreign market seem more appealing. In addition, foreign investors may find they can pick up a property for less than in their own country, using it as a rental or holiday home.

If your house is located in a popular tourist destination, it could be a good idea to opt for an overseas buyer when putting the property up for sale.

Go online

Taking advantage of the internet when selling a home abroad is also recommended. Use social media and other popular tools to spread the word about your property, as this could make it more accessible to foreign investors who are browsing for new projects.

It is also advisable for sellers to specifically target the market where you think a buyer is more likely to come from, such as landlords on the lookout for new holiday homes.

Learn the tax rules

If you are lucky enough to sell your property abroad in the current economic climate it is likely you will have gained on the change in exchange rate as well as capital gains, but it is important to be aware that in some overseas destinations – including Spain – there is a capital gains tax to pay.

For this reason, you should seek advice on tax issues before putting your property on the market overseas to ensure you will not lose important funding.

Legal and agency costs

Knowing that selling agents may charge a substantial fee for their duties is another important factor to consider. The sum can total around ten per cent or more of the transaction value, on top of local duties and legal fees.

Keep up-to-date with transfer charges

Overseas banks often make charges based on a portion of the sum transferred to another account, which can often end up being substantial amounts of money. This is why it is important that sellers ensure they will not incur charges when sending money back to the UK.

Fix the rate of exchange

Property owners can fix a rate of exchange that will stand throughout the selling process, which may mean they do not have to worry about rates moving against them and losing out as a result. Doing this is known as a forward contract, with a percentage of the total sum usually required as a down payment.

Shop around

To ensure you get the best deal when selling a property abroad, it is essential to shop around for the best brokers, as high street banks usually do not offer competitive rates of exchange. However, it’s wise to ensure the financiers are reliable, as they are not regulated by the Financial Services Authority.

www.justdoproperty.co.uk

The December House Price Index from Halifax reports a positive end to 2012 with increases over the month and quarter.

Key details:

• Prices were up by 1.3% in December against that reported in November 2012.
• In the final quarter (October to December) prices were actaully 0.6% higher than the previous quarter – the first increase in this measure since May 2012.
• Annually the average house price in the three months to December was down by -0.3%, against the same months in 2011.
• There was a pick up in activity. Home sales up slightly from 75,000 to 80,000.

Commenting, Martin Ellis, housing economist, said: "There was evidence of a firming in the housing market in the final few months of 2012. Prices in the three months from October to December were 0.6% higher than in the preceding three months. This was the first increase in this measure of the underlying trend for seven months.

Overall, last year saw an even mix of monthly rises and falls as prices lacked any real direction as both demand and supply pressures remained largely unchanged during 2012. On an annual basis, prices in the final quarter of 2012 were marginally lower than in the last three months of 2011.

We expect continuing broad stability in house prices nationally in 2013 with prices likely to end the year at levels close to where they begin."

Elsewhere Nationwide have reported little change in house prices. According to the December HPI the trend seen throughout the year continued in the final month of 2012.

• Prices declind by 0.1% in the Month.
• Annualy  price of a typical home declined by 1% – reversing the 1% increase recorded in 2011.
• The average house price is now £162,262.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: "UK house prices were little changed in December, declining by just 0.1% over the month, though this was sufficient to keep the annual rate of price growth in negative territory for the tenth month in succession. Over 2012 as a whole, the price of a typical UK home remained fairly stable, declining by 1%, reversing the 1% price gain recorded in 2011.

Given that the UK economy was in recession for much of 2012 a 1% decline in house prices may be seen as a relatively resilient performance. However, the fact that prices declined even though employment rose strongly, suggests that conditions remain fragile, especially since other signs of housing market activity, such as the number of mortgage approvals, remained subdued, well below their long run averages."

www.justdoproperty.co.uk

September 2012 marked the start of the first academic year where students could pay anything up to £9,000 per year on tuition fees. As we head towards the New Year, when students would typically start looking for their second year accommodation, Townends estate agents say there has been a noticeable impact on the student rental market and landlords will have to make changes if they want to avoid lengthy void periods.

Areas within which Townends operate, such as Guildford and Egham, not only command some of the highest student rent, but are home to the University of Surrey and the Royal Holloway, both of which are charging students the maximum £9000 fee.  Caroline Kavanagh, Managing Director of Townends Lettings & Management comments “We have noticed a real drop in the number of students looking to secure accommodation for next year, but with fees nearly three times as much as previous years, it’s hardly surprising that those that can, are having to sacrifice the independence of sharing a student let and remain living at home with parents.”

The real impact of this will not hit student landlords until September 2013, as most will have secured tenants for this academic year back in January, which will see their properties tenanted until next summer.  With demand lower than usual for next year, Caroline says landlords should be considering their options. “These are:

1. Set a timeframe by which you are prepared to market your property to students during the prime letting period in the New Year. If your property is still vacant consider other options for your property.
2. Consider renovating the property to bring it up to the standard of a professional let which would give it wider appeal to the likes of families, young couples or professional sharers. The existing condition of student properties rarely entices the average tenant.
3. Renovate the property to appeal to international students who are less affected by the increase in tuition fees and still prepared to pay premium rents as long as the property is of high specification and within close proximity to the university.
4. Consider selling the property and using the money to purchase an alternative buy-to-let investment with greater appeal such as a modern, purpose built two bedroom apartment.”

Some landlords are reluctant to change their properties to ‘Professional lets’ because they don’t typically command as much rent as when the property is let to a group of student sharers. According to Townends, landlords need to look at the bigger picture.  “A four bedroom property brought up to scratch with some renovation work and subsequently rented out for 6-12 months at a £1000pcm is far more profitable than a property which has previously let for £1400pcm, but now faces the possibility of remaining empty for an entire academic year” says Ms Kavanagh.

Unlike the rest of the private rented sector, student landlords have seasonal windows of opportunity to let their properties. Once students start the term, they are unlikely to move, so if landlords are concerned about securing tenants soon, they are advised to speak to an agent for advice on the best way to proceed.

www.justdoproperty.co.uk

The Council of Mortgage Lenders (CML) sees signs of the current weak market perhaps coming to an end.

The CML’s estimate is that total gross mortgage lending to £12.9 billion in October. This would reverse the sharp dip reported for September, and imply that lending was 4% higher than the same month a year earlier.

CML chief economist Bob Pannell observes: “House purchase and remortgage activity both appear to have picked up recently, and this should be supported by an improvement in the availability and pricing of mortgages.

The Funding for Lending Scheme is likely to have made an early positive impact, helping to counter some of the negative pressures associated with a protracted and weak economic recovery.”

Chart 1: House purchase and remortgage lending, £ million

Chart 2: Average quoted mortgage rates, new lending, %

www.justdoproperty.co.uk

The recent Halifax House Price Index for August shows little change in the house prices in the UK – a continuing pattern over the first eight months of this year.

Headline figures show that in August the monthly change was down by 0.4% - the second consecutive monthly decrease.

Further key facts are:

• Average house prices are £160,256.
• This represents a fall of 0.3% in the three months to August compared to the previous three months.
• The two falls in average prices in July and August virtually cancels the rises in May and June.
• Over the Year to August 2012, prices were 0.9% lower and only 0.2% higher than in December 2011.
• Nationally the average house price is very similar to 3 years ago.

Commenting, Martin Ellis, housing economist, said: “Nationally, house prices continue to tread water, as measured by the underlying trend. Prices in the three months to August were fractionally lower (-0.3%) compared with the previous three months. House prices fell by 0.4% in August with the declines in the past two months largely offsetting the gains in the preceding two months.

Overall, there has been little change in house prices so far this year with the UK average price in August at a very similar level to the end of 2011. A gradual upward trend in spending power, aided by lower inflation, should help to support housing demand in the coming months. Nonetheless, house prices are likely to remain flat over the remainder of 2012 and into next year.”

The industry-wide number of mortgages approved to finance house purchase – a leading indicator of completed house sales – picked up in July with a 7% increase following a 13% decline the month before. Overall, approvals in the three months to July were marginally lower (-2%) than in the same three months last year. (Source: Bank of England, seasonally-adjusted figures).

www.justdoproperty.co.uk

The open market is the most traditional way to sell a house, but it takes time and patience – things not everybody can afford. Buyers can take a long time to come along and even when you do find one, a broken chain can put you back to square one instantly. All kinds of factors can make it difficult to sell a house: the area you live in, the state of the property and simply the condition of the housing market at large.

There are many reasons that you may need to sell your house fast, in which case the open market might not move quickly enough for your circumstances. You may have had a job offer in a different part of the country that you just can’t turn down. You may be going through a divorce or break-up and need to downsize your property to a more affordable one – something that is particularly important if finances are tight. Another common reason is illness – if you suddenly find yourself in need of constant care or unable to use the stairs in your house, arranging a quick sale is often the only option.

Property buying companies offer an alternative solution to those who need to sell their homes quickly. These are professional firms who buy up unwanted homes as investments, and they will typically consider buying any kind of property – residential or commercial, and in any condition or state of repair. They employ a network of independent valuers who will visit your property to make an assessment, before making you an offer based on the market value of your home.

This offer will typically be below the actual market value – most property buying firms will pay up to 75 per cent. This is essentially the trade-off you make for securing a guaranteed buyer who will complete the transaction quickly (often in as little as a month after the valuation has taken place). Although you will usually receive less than you would have through an open market sale, it’s worth remembering that these property buying firms also handle all the legal paperwork and transaction costs associated with the deal – saving a considerable amount of hassle and expense.

Only you can decide whether the open market or a quick sale is the right path for you, but these firms fulfil a valuable role in allowing people to unlock the equity in their properties almost instantly – whatever they need the cash for.

www.justdoproperty.co.uk

The Council of Mortgage Lenders (CML) has seen a large fall in the gross mortgage lending data for June, down 5% to £11.9 billion.

Not only is this a 5% fall against the previous month, but coincides to be a 5% fall against the lending against a year ago – £12.5 and £12.6 billion respectively.

On a quarterly basis there was actually a 2% increase from the first three months of this year, up from £3.6 billion to £34.2 billion.

CML chief economist Bob Pannell comments:

“Mortgage lending has experienced something of a see-saw pattern over recent months, largely reflecting the short-term spike and subsequent trough in house purchase activity associated with the ending of the stamp duty concession for first-time buyers in late March. Weaker mortgage lending in June points to a more subdued tone for the housing market in line with that for the wider economy.

The recent launch of the funding for lending scheme (FLS) comes at a time when credibility in further quantitative easing had started to wane. FLS will help guard against a contraction in lending over the next 18 months and, if the external environment is sufficiently supportive, should underpin the housing market and support the government’s wider growth agenda.”

www.justdoproperty.co.uk

The Halifax release it’s House price Index (HPI) for June today reporting as most other indices that the UK house price growth is broadly stable. Over the first half of the year of course there have been some ups and downs, but averaged out there is very little change.

Key figures released are:

• House price average was 0.3% lower in the three months to June against the preceding three months (January-March).
• The average price increased by 1.0% in June against the figure in May, although there has been an even number of falls and rises in the past 12 months.
• Prices in the three months to June were 0.5% lower than in the same period a year earlier.
• The average house price for the UK in May was £162,417

Commenting, Martin Ellis, housing economist, said:

“House prices in the three months to June were 0.3% lower than in the previous three months. Prices increased by 1.0% in June alone as house prices continue to fluctuate on a monthly basis with an even number of falls and rises over the past year.

“There has been a marked improvement in the annual rate of change over the past 12 months. A year ago, in May 2011, house prices were falling at an annual rate of 4.2%. In contrast, there has been broad stability recently with the annual rate between 0% and – 0.5% in each of the past three months.

As with other indices providers the stamp duty holiday at the end of March is now clearly seen to have distorted house price movements and sales in recent months. The aim of the stamp duty holiday was to encourage first time buyers back into the market, but is widely seen as just encouraging a wave of mortgages for the first time buyer.

“Continuing low levels of mortgage payments relative to income and recent increases in employment may have helped support house prices so far this year. We expect little change in prices and sales over the remainder of the year provided that the UK’s economic outlook does not deteriorate significantly.”

www.justdoproperty.co.uk

The Rightmove HPI for May was released this weeks and clearly shows how we are in the middle of a static market.

In the past we have had smallish increased and decreases each month, which averaged out shows a static market. Yet in May Rightmove have seen a straight 0% change, for the first time since they started reporting new seller asking prices.

Further key points:

• Demand lessens through combination of end of first-time buyer stamp duty assistance, some upward mortgage rate movements and renewed Eurozone jitters
• Spring supply numbers stall too, with properties coming to market down 10% on April
• Will summer sporting and Jubilee distractions continue to dampen activity like rainy May?

None of this is helped by growing mix within the market where 2 in 5 sellers are looking to trade down – spurred on by the quity rich baby boomer generation – which is outweighing the 1 in 4 sellers who are looking to trade up.

This is backed up further by the fact the ‘downtrading’ is the main reason in 9 regions in the UK. London is bucking the trend with an every affluent market.

The ‘trader-up’ volumes are off course also impacted by the end of the stamp duty incentives for first time buyers. This may totally stop things or work its way out of the system as purchasers come back.

Miles Shipside, director of Rightmove comments:

“New sellers asking more in May had become the norm, so it comes as quite a shock to see prices flat at this time of year. Perhaps the first-time buyer stamp duty holiday, and the knock-on activity it helped to create, has concertinaed the market’s stronger than expected early spring momentum into the first four months of the year rather than the usual six. The high rainfall in May will have been a further factor in dampening prospective buyers’ enthusiasm to get out and view property, and even if the forecast picks up we have a summer of sport and celebration ahead that will provide further distractions.”

Nationwide survey shows 0% of landlords think that deposit schemes are designed in their favour

A startling zero per cent of landlords said they felt that deposit schemes are designed in their favour over tenants, according to a new survey released today by digital inventory platform, Imfuna. Just over half (54 per cent) said that they thought current schemes favoured tenants, while 35 per cent claimed that neither party benefitted from the schemes.

Letting agents also largely mirrored that sentiment; only 20 per cent said that the schemes, in their current format at least, favoured landlords and 52 per cent said the balance has been tipped in favour of tenants. And, a further 22 per cent felt that the schemes benefit ‘neither’ party.

The statistics have emerged after a nationwide survey of landlords, tenants and letting agents, and follow the announcement of the new Localism Bill which came into effect on April 6th. The new act means all landlords now face large fines of up to three times the deposit if it is not registered with a tenancy deposit scheme within 30 days. The ruling, passed by the Government’s Department for Communities and Local Government will also see landlords unable to seek possession of their property using a section 21 notice until the penalty is settled.

Imfuna creator, Jax Kneppers comments: “The survey presents a picture of landlord disenchantment with the deposit schemes. The fact that not a single landlord surveyed felt they were designed in their favour, shows that there is still some work to be done by all parties in order to democratise the inventory process and ensure that everyone involved feels they are supported in equal measure.”

Landlords beware, tenants be aware

Overall awareness of the deposit schemes was found to be high amongst landlords (99 per cent) and lettings agents (88 per cent). Tenant awareness levels were much lower however, only 43 per cent were aware of the schemes before their tenancy began.

This lack of knowledge translated into the take-up of the schemes; nearly half (49 per cent) of the tenants surveyed claimed they have not taken part in a deposit scheme.

Furthermore, 37 per cent of landlords, compared to 78 per cent of tenants, believe deposit schemes are an effective tool for minimising conflict between landlords and their tenants. Whereas just 19 per cent of landlords and 36 per cent of letting agents believe deposit schemes reduce the time taken over disputes, indicating the process still isn’t working.

Kneppers adds “The new April 6th ruling places an even greater emphasis on adhering to tenancy deposit schemes regulations. A comprehensive and robust inventory will help arm landlords with the necessary information and ensure they aren’t further penalised when it comes to the check-in / check-out process.”

Deposit schemes heavily relied on

The figures show that when disputes arise, people look to deposit schemes for help, 26 per cent of landlords, a further 26 per cent of letting agents, and the majority (57 per cent) of tenants believe deposit schemes provide a fair resolution when disagreements arise.

Despite deposit schemes being the preferred go-to for resolutions, some tenants still think they are getting a raw deal, 68 per cent felt dispute outcomes were in favour of the landlord / letting agent, compared to only 10 per cent of landlords, and 19 per cent of letting agents. Which shows some educational work needs to be done around how the schemes work amongst tenants.

Interestingly, nearly half of letting agents (48 per cent) and 30 per cent of landlords reported that they have settled individual disputes privately, without the aid of a deposit scheme.

Finally, and perhaps on the contrary to the views of many, 42% of landlords admit to having never had a deposit dispute with a tenant, with a quarter (24%) of letting agents reinforcing this.

Kneppers concludes: “There is also a case for making use of the technology and expertise available to make the difference in deposit disputes. This is a really exciting time for the property sector which is on the verge of a technological revolution, and we will all soon feel the benefits.”

Visit www.justdoproperty.co.uk for latest property news, views, events & eductation!

The RICS House Price Balance Survey for March shows a continual upwards trend towards a stabilisation in house prices, with the net price balance for March up from -13 to -10.

This means that 10% more surveyors saw a fall in house prices as opposed to an increase in house prices during March. Although overall in England ad Wales this means negative pressure still, the picture is better than last month and has been improving for a number of months. Indeed of those surveyors that reported a fall in prices, 79% saw so within the 0-2% bracket.

The RICS surveyor attributes this to a number of factors:

• the continued positive London Market
• temporary impacts from the stamp duty break expiring
• temporary impacts due to the unseasonably good weather
• fundamental impacts due to less perceived risk of economic downside.

Regionally London is still the only area which is reporting a positive net price balance with approximately 45% of surveyors reporting a rise rather than a fall. East Midland, South West and West Midlands are the worst performers with -25% to -30% net price balance.

Activity Figures

Both the newly agreed sales and new buyer enquires are also reporting an modest improvements. New Vendor instructions remained relative unchanged over the month of March.

Newly agreed sales in England and Wales was more widely positive than the net price balance, with half of the regions reporting a positive net balance and half a negative.

New buyer enquiries was more positive with only 3 regions reporting a negtaive net balance – the North being nearly 3 times more negative that the next worst region of East Anglia.

Visit www.justdoproperty.co.uk for latest property news, views, events & eductation!