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Rental
Increases could see a reversal of Fortune says HomeLet Managing Director
Released 2nd
March 2010 The
boss of the UK's leading specialist insurance provider to the lettings industry
has welcomed the latest FindaProperty
Rental Index revealing a rise in asking rents by 1.2% to £814 pcm.(February
to £814pcm from £804pcm in January), but he warned it may not be good news across
the board. John
Boyle, Managing Director of HomeLet
said: "This is promising news for landlords who have endured a difficult 12 months
due to an oversupply in stock driving rents down. "Thanks
to accidental landlords returning to the sales market the number of available
properties is reducing and pushing up rents. Potential buyers are also still struggling
to meet the current mortgage requirements, especially the requirement for a minimum
20% deposit, so demand for rental property is strong." However
he also warned that unless restrictions on buy-to-let lending are relaxed we could
see a reverse of the situation last year and the UK could experience a surge in
the number of reluctant tenants coupled with a severe shortage in housing. The
February FindaProperty Rental Index recorded the highest increases in rental asking
prices in the north of the UK. However, HomeLet's own rental index of actual rental
prices achieved shows increases in the south and decreases in most northern areas.
According
to HomeLet
the areas north of London where rents rose in February were in metropolitan areas
such as Birmingham and Newcastle. Everywhere else including Scotland stayed the
same or dipped. "HomeLet's
rental index shows property in the south represents a particularly good opportunity
for cash-rich investors," said John. "Also with house prices creeping up first-time
buyers, particularly in the south, will continue to struggle to get a foot on
the ladder. "This
could result in longer tenancies in non-student areas much like those seen on
the continent. This is a positive for landlords and tenants as it gives both parties
increased stability." As
the number of people in the UK renting homes increases letting agents could face
even more competition in 2010 as new letting agents open up looking to cash in
on the expanding market. "In
order to remain profitable letting agents need to get ahead of the competition
by providing high standards of customer service, joining professional bodies such
as ARLA and the NALS and expanding their offering to clients," said John. As
the recent ARLA
Members Survey has shown tenants are still struggling to pay their rent, meaning
landlords continue to be at risk of rental arrears which could force them to default
on their mortgage repayments and ultimately result in the property being repossessed. By
offering clients Rent Guarantee protection in addition to other specialist tenant
and landlord's insurance products and services letting agents can add value to
their services and differentiate their business from their competitors.
Notes about
this news release: -
HomeLet is the UK's largest tenant referencing, Rent Guarantee and specialist
insurance provider for the lettings industry and has around 3,000 approved letting
agents nationwide.
-
HomeLet pays out an average of £3m in Rent Guarantee claims every year and is
a main sponsor of the Estate Agent and Letting Agent of the Year Awards 2010 and
ARLA
2010 Conference and Exhibition.
HomeLet
is a trading name of Barbon Insurance Group Limited which is authorised and regulated
by the Financial Services Authority. Registered in England number 3135797. Registered
office address: 4-9 Highview, High Street, Bordon, Hampshire GU35 0AX.
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See
also
HomeLet
(Group) Press Information: HomeLet
Insurance launch new forum for letting agents - June 2010 HomeLet
and Martin & Co offer new cover for Landlords - June 2010
There
are a record breaking number of renewals for Martin & Co - June 2010
Do
landlords really need specialist insurance? - June 2010 Rent
Guarantee claim a landlord's experience - June 2010 HomeLet
Insurance update - June 2010 The
Letting Agent of the Year Awards - June 2010 Grant
Shapps appointed as new Housing Minister - May 2010 Nationwide
Building Society announces New Mortgage Deals and John Boyle of HomeLet insurance
says New Buy-To-let deal is good news for Landlords - May 2010 Pinkerton
Murray Strikes Gold - May 2010 Students
to get Extra Protection from Crime via HomeLet Insurance - May 2010
Rising
Rents Pose Potential Risk for Landlords in the UK - April 2010 HomeLet
insurance run for charirty - March 2010 HomeLet
Launches £500 Prize Draw for Landlords - March 2010 Rental
Increases could see a reversal of Fortune says HomeLet Managing Director - March
2010 HomeLet
offers More Benefits for Premier Customers - March 2010 Agents
Positive about the Future of Lettings - February 2010 Cold
Snap Could Prove Costly for Landlords says HomeLet Insurance - January 2010 HomeLet
Launch New Range of Landlord's Insurance - December 2009 HomeLet
Insurance offers service guarantee to Letsense Agents - December 2009
HomeLet
to launch innovative new insurance policy product - December 2009 Demand
for HomeLet insurance doubles - October 2009 HomeLet
releases a new Tenant's contents insurance product available via jml insurance
- HomeLet rental insurance have cut the cost of tenants insurance from the 19th
June 09 with a new policy that is available via jml insurance - June 2009 Barbon
Insurance has acquired Zennor Ltd - April 2009 Tenants
should Insure against recession related crime - February 2009 New
Managing Director for Letsure- Barbon Insurance Group has announced the appointment
of Ian Fraser as Managing Director - January 2009
New
Chief Executive for Barbon Insurance - September 2008 Barbon
Insurance Reveals Latest Financial Results - September 2008 EIS
Completes Rebranding Exercise to Become Barbon Insurance Limited -August 2008 jml
Insurance are very pleased that HomeLet and Letsure are now under the Barbon Insurance
Group umbrella - August 2008 Martin
& Co announces three year deal with HomeLet - July 2008 HomeLet
staff gain promotions - June 2008 New
Customer relations manager for EIS Insurance Solutions - June 2008 EIS
sale completed - New and stable long term ownership - April 2008
EIS
separates from Erinaceous Group - New and stable ownership - April 2008 Erinaceous
placed in administration - April 2008 jml
Insurance will now be introducing Homelet Landlord & Tenant insurance instead
of Letsure - March 2008 Erinaceous
puts insurance division up for sale - January - February 2008 Brian
Turney has left Lumley Letsure - June 2007 Erinaceous
Group Plc Opens Property Management Office in Dublin, Ireland - May 2007 HomeLet
IPEX -Landlords set for buy-to-let revolution as new scheme launched - March 2007 HomeLet
Rental insurance launch Portfolio Insurance from 10th July 2006 in the UK Letsure
has a new Glasgow offices December 2005 HomeLet
launches new low cost option landlord’s protection - July 2003
Also:
HomeLet Landlord & Tenant Insurance Sponsors Negotiator Award The 2008 awards
from The Negotiator Magazine took place at the London Hilton on the 11th November
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