Maybe you are a buy to let expert with a number of properties close to a university, maybe you are an accidental landlord, looking to make a living from your new investment. Whatever your situation, maintaining a steady income from your property needs to be top of your priorities.

There are a number of suitable landlord insurance policies available on the market, however obtaining the right one for you can become quite complex. Because of this it is essential that you do your own research and pick a policy that is best suited to you and your investment. The key things to include are:

• Building and/or Contents Insurance – Not only will this protect your investment in the event of total loss (fire, flood etc) but it will also protect your belongings in the property, ideal for furnished or part-furnished properties.

• Legal Expenses – This will cover you in the event that you have to take your tenant to court, should incidents such as tenant default, refusal to leave or debt recovery arise.

• Rental Protection – This guarantees that the rent will still be paid to you should the tenant default, refuse to pay or even when your property is empty between tenancies.

With a standard policy available from as little as £93 a year, which covers loss of rent and from around £134 a year, landlords can include legal expenses cover. Policy wording can also differ so always make sure you read the small print. In the event of a claim you will need to pay an excess payment, make sure you know how much this is and make sure you can afford the excess payment should you need to make a claim.

Landlord/Tenant relationship breakdowns are well documented in forums across the internet, you may have some horror stories of your own. So with the right landlord insurance policy at your side, you will never need to worry about any of those horror stories affecting you or your investment.

Mortgage lender Nationwide stated that the average value of a home declined by 0.5% to £169,347, taking the annual rate of inflation down to 6.6% (compared with 8.7% in June).

They also noted that the decline is partly due to the strength of house price gains during July of 2009. However, the three-month-on-three-month rate of change, which is a smoother indicator of the near-term price trend, fell to 1.3% in July (1.7% in June), well below the 4.0% peak reached in September 2009.

Demand from homebuyers remained subdued and Nationwide’s chief economist, Martin Gahbauer, attributes this to a combination of restrictive credit conditions and nervousness on the part of potential first-time buyers and home movers, who are uncertain about the future economic outlook.

At the same time, the imbalance between supply and demand has been easing since the abolition of Home Information Packs in May, putting further downward pressure on prices.

The economist concludes: “It will take several more months to establish whether house prices are now simply oscillating around a flat price trend or whether a period of downward trending prices may be in store.”

Elsewhere, Rory James MacLaren-Jackson of lettings training providers Property Agency Training noted how the slower sales market would continue to bolster demand in the rental property market.

“Uncertainty as to the direction of house prices as well as difficulty obtaining credit is sustaining unprecedented demand for rental property.”

He added: “We are certainly seeing a large number of property agents seeking to expand and develop their lettings operation in response to this more positive area of the market”.

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The expiration of a 15-year ban on estate agency boards in conservation areas of Kensington and Chelsea has dismayed a number of local residents.

Estate agents in the area have said they are legitimately responding to the lapsing of the 1995 restrictions and had to act once one agent had targeted the streets in question or risk losing business to competitors.

Kensington and Chelsea Borough Council wanted to renew the ban but there had been disagreement over how extensive it should be. Last year, it applied to extend the ban to 80% of its area, but the Secretary of State refused permission. Other London boroughs, including Hammersmith and Fulham, Camden and Westminster, have also sought Regulation 7 controls.

Meanwhile the reappearance of boards in Kensington and Chelsea from the likes of Hamptons, Savills, Marsh & Parsons and Foxtons has prompted heritage and conservation groups to call for a blanket ban across the whole of central London.

Ian Dungavell, director of the Victorian Society, said the boards were “an anachronism” in the internet era.

Ed Mead, of Douglas & Gordon, said: “My view is very strongly that boards should be banned – period. I think they are a blight and they are just used to advertise the agency. Why on earth… should an agent be able to blight a street when everything is done on the web these days? A ban would get rid of much of the stigma attached to the estate agency industry.”

Rory James MacLaren-Jackson, CEO of national estate agency training provider Property Agency Training and Director of Bloomsbury Residential, disagrees.

“There is still a major role for the estate agency board and it remains an effective way of marketing both an available property and the agency it represents. Clearly, there should be and are local restrictions on the size and positioning of boards, but overall they are still an important part of the marketing mix when helping a client sell or let their property.”

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A total of 49,815 mortgages were approved in May, a fall from the 6-month average and the November 2009 peak of 59,338.

The slow start to the year for the housing market had been explained by the end of the stamp duty holiday, severe winter weather and uncertainty caused by the general election and subsequent emergency budget.

However, with these factors now out the way, many observers are surprised at the sluggishness of the market.

Howard Archer, chief UK and European economist at IHS Global Insight, commented:  “The Bank of England reported that mortgage approvals were essentially only stable at a muted level in May, thereby reinforcing the impression that housing market activity is finding it hard to regain momentum after faltering at the start of 2010.

“The data … provides further support to our suspicion that house prices will struggle to make significant gains over the coming months.”

Whilst disappointing for estate agents selling property, those working in the letting agency industry will see it as another strong factor in that market’s stability where there are high levels of demand at present.

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Stamp Duty

Despite pressure to reform this area, there has been no change to the current system for Stamp Duty. In particular, the £250,000 ‘break’ for first-time buyers remains in place.

Capital Gains Tax

A rise in Capital Gains Tax (from 18% to 28% for higher-rate taxpayers) poses questions as to how it will affect the buy-to-let market and its attractiveness to property investors.

Much will depend on which groups the tax increase really impacts on, with fears that not just high-earners will end up paying the higher rate. The theory is that those on lower incomes will end up paying the higher 28% rate where the gain, added to their income, pushes them past the threshold.

However, the fact remains that at 28% CGT is still far lower than the rates of three years ago of up to 40%, before the previous government introduced the 18% flat rate. Whilst some landlords will see property investment as less attractive on account of these changes, overall the appeal for most outweighs equities and many would argue this is simply an alignment of the two investment vehicles in terms of taxation.

Whilst the extent of the CGT rise was welcomed (compared to fears of a 40-50% higher rate), what has been even more significant to agents is the speed at which it has been implemented. By announcing the increase immediately, the Government has avoided panic-selling by landlords and second home-owners. There had been concerns that this would have seen the market flooded with properties as investors rushed to sell before the higher rate tax came into effect.

Value Added Tax (VAT)

Increased from 17.5% to 20% as of the start of next year, this is at the head of a number of tax rises that may dent confidence generally when it comes to those looking to buy property. Some may feel that this combined with job insecurity may make it “the wrong time to buy”.

Of course, whilst a concern for estate agents, this trend would simply bolster the already strong rental property market nationwide, currently being enjoyed by letting agents.

In summary, despite tax rises, the budget has been generally positive for estate agents and letting agents with a view that they will not impact too dramatically on market confidence. With the announcements being both swift and clear, there is also a sense that the market now “knows where it is going” and this alone will aid investors in making their informed decisions.

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The proposals were designed to deal with rogue operators in the lettings industry, but to many observers would have been unnecessary ‘red tape’ at a high cost to both the taxpayer and ultimately tenants. The letting agency industry also has existing, well-established and effective voluntary codes of practice.

The New Housing Minister, Grant Shapps, summarised that: “With the vast majority of England’s three million private tenants happy with the service they receive, I am satisfied that the current system strikes the right balance between the rights and responsibilities of tenants and landlords.”

Letting agents who follow industry best practice guidelines will welcome less bureaucracy in a challenging economic environment, whilst continuing to provide a high level of service to both their landlord and tenant clients.

UK Estate Agents – 4 Everything Property : UK Property Directory

New research published this week has revealed an interesting trend that, for the first time in history, single people outnumber married couples as first time property buyers.

Mortgage provider Santander have identified that over the last 5 years 37% of first time buyers were single, compared to 29% who were married. This is a stark contrast to the 1970s when 85% of first time buyers were married.

Santander said it was “surprised” at the findings, adding though, “…this means some 716,400 people waited to find their spouse before taking the first step towards home ownership, showing traditional values die hard.”

Estate agents and letting agents will certainly be pleased that there is increasingly a more pragmatic approach to property buying and investment, less influenced by social factors and more on modern lifestyle aspirations.

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Recently, many estate agents and letting agents have reported increased enquiries from clients concerned about the impact of the proposed increase in CGT rates. Both second-home owners and investors are weighing up their options, particularly as to whether to attempt to sell prior to the emergency budget.

The Property Industry Perspective

“Whilst we have seen an increase in enquiries about the CGT situation and new instructions to sell partly influenced by an anticipated increase in CGT, there is no indication that the market will see the mass sell-off of investment properties and second homes that some are predicting,” says Rory James MacLaren-Jackson who runs Bloomsbury Residential in Salisbury and training company Property Agency Training.

“In reality, what is more likely is that the changes to Capital Gains Tax will result in lower yield rental properties being sold off. Property investors in the market for the long term will probably hold for as long as possible,” he continues.

“Some increased volume may come from public sector workers, who have second homes as an investment, losing out in the next two years and needing to sell, but the real cutbacks will only start to impact next year. Rather than a massive shift, this will simply inject some much-needed volume into the sales market.

Perhaps too many commentators look to the factors affecting the attractiveness of the property market for investors when the real issue is the relative unattractiveness of the alternatives. There is almost no return from cash (rising inflation and low interest rates creating a poor environment for savers) and equities are generally mistrusted in the current economic climate.”

So with property investors mostly accepting that they have a long-term investment coupled with low interest and mortgage rates, it is rental yield that has become the basis for calculating return rather than short-term capital growth. The proposed increase in CGT will undoubtedly affect the property market, but with these other factors considered, not as dramatically as many are predicting.

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What is the practical impact for estate agents and property sellers?

Firstly, only homes marketed for sale on or after 21st May 2010 will no longer require a Home Information Pack (HIP). The suspension is not retrospective and so properties on the market on or before 20th May, either in breach of the HIP regulations or with ‘1st day marketing HIPs’ (i.e without searches, title or an Energy Performance Certificate) must still be completed.

YET virtually in contradiction – a Seller or Estate Agent is no longer under a duty to provide a copy of the HIP to potential buyers BUT commentary is that if there is an advantage in keeping the property move going forward then clearly they would be wise to

Can Buyers still rely on a HIP after the suspension date? Yes. If the HIP was compliant with the regulations there is no reason why a buyer should not be able to trust it.

Energy Performance Certificates (EPCs) Remain Unaffected

Despite the suspension of HIPs, a Seller will need to have ordered, but not necessarily received an Energy Performance Certificate before legal marketing can start.

Once received it continues to be the rule that it must be provided to potential buyers at the earliest opportunity and before entering into a contract to sell the property. The Seller and Estate Agent must use all reasonable efforts to ensure that the EPC is available within 28 days of the property going on the market.

The duty to provide an EPC falls on either the seller, in the case of a building being sold, or the landlord / letting agent, in the case of a building being rented. In the case of new buildings the duty to provide an EPC falls on the builder.

Estate Agents will have to include energy information in written sales particulars, as was the case before the suspension of HIPs. They must do so as soon as the energy information becomes available. Enforcement of these requirements and financial penalties is the responsibility of Trading Standards Officers.

However, following the suspension of HIPs, all EPCs will now be valid for 10 years.

For more info please visit:

http://www.communities.gov.uk/housing/buyingselling/homeinformation/homeinfopackquestions/

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David Whittaker, MD of Mortgages for Business, accepted that while the market was “tricky” even just a year ago, there are now improved and more plentiful opportunities for investors to access finance for their property investments.

“Essentially, we are back where we were four-and-a-half or five years ago and the market was absolutely fine. It is just that we have to had to shed the products that were, with the benefit of hindsight, too racy.”

Mr. Whittaker’s comments will be good news for landlords who have continued to find it hard to access a mortgage deal – research from LSL Property Services indicated that 13% of landlords were unable to get hold of the finance they required last year.

Likewise, the letting agency industry will see many positives from news of easier access to buy-to-let mortgages, increasing the long-term prospects of the already strong rental property market.

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