The increasing cost of rent arrears.

Tenant eviction has always been the last port of call for landlords, not least because the process is extremely time consuming and costly.  However the situation is set to get worse as a steep rise in the number of current tenant evictions is causing a backlog at the courts, meaning it can take over two months just to get a hearing date.

Owing to the recession and increasing levels of redundancy and unemployment, many tenants are unable to pay their rent, leaving some landlords unable to pay their mortgage.  This leaves them with no choice but to commence eviction proceedings or face repossession.

Landlords financial problems don’t get a whole lot of media sympathy but the truth is that if the landlord goes bankrupt then all his properties may be repossessed which affects the good tenants as well as the bad.  Around 35,000 landlords were behind with mortgage payments in the first quarter of this year and at the moment tenants of repossessed landlords can be given as little as two weeks to get out.

Unfortunately with unemployment expected  predicted to hit three million next year, rental arrears are expected to go up too which means that the situation is unlikely to improve.

(Piggy says “From the tenants point of view there is a small ray of light at the end of this particular tunnel as the Government has recently announced that they will be changing the law so that tenants in danger of losing their homes when their landlords are repossessed will be given two months’ notice to quit.)

David Beckham can’t sell houses!

Can celebrity connections help sell a home in today’s troubled property market? Apparently not if you are  David Beckham .

In November last year a three bedroom Victorian terrace on Norman Road in Leytonstone, east London that used to be his childhood home was put on the market by a very optimistic local agent, who hoped to trade on the Beckham connection, for £850,000.  At least three times its likely value at the time.

At first the property’s owners, Samira and Sulman Ali, had no idea of its once famous inhabitant until local man Colin Evans, who was looking into the past lives of some of the area’s more famous residents, knocked on their door.

But their hopes of cashing in on the Beckham brand may have cost the Alis dear. For nearly six months the house remained unsold and was eventually put up for auction by Savills on May 11.  Unfortunately the lot failed to sell and as of today is vacant and still being advertised on the Savills site for just £220,000; £30,000 less than neighbouring houses were being sold for last year.

The Apprentice – why Mona deserved to get fired.

I have to confess that I don’t usually watch the TV series “The Apprentice”.  I find Alan Sugar patronising and the apprentices almost universally, irritatingly immature. (Which maybe gives Sir Sugar a good excuse for his manner )

However, last night I watched with interest as the two teams were given the task of rebranding the seaside town of Margate.  I grew up there and have recently begun to invest in the area so I am familiar with the town.  What suprised me most was how little research either team did into the tremendous changes that have been happening in Margate and neither bothered to find out what the future plans are.

Both teams very quickly decided on a marketing strategy that they thought would work based entirely on their preconceptions and then looked for evidence to support this.  Even local girl Mona failed to step in with any real insights.  The result of this was that neither team came up with a truly creative or interesting campaign and even the winning team were criticised by Margate councillors for “missing a trick”.

Mona’s team lost because she didn’t use her local knowledge and contacts effectively to help the team build a relevant and effective campaign.  And that’s why she deserved to get fired!

Piggy says “What this  really shows is just how important it is to thoroughly research an area before deciding on a strategy that will work.  Making contacts and asking relevant questions are key.  This is as true for a property investor or new business start up as it is for a marketing/branding campaign.”

Fancy being Lord of the Manor?

Like most property investors I get regular newsletters from Rightmove and generally I have to admit they just go straight into my SPAM box. However this particular article tickled my fancy and I just had to draw it to your attention.

The village of Linkenholt is for sale – yes the whole village! All the land, 21 houses, a manor house, 2 blacksmiths and a shop. Sadly the 12th century church of St Peters is not included in the price which is a cool £25 million.

Now I haven’t run the figures to see whether this represents a good investment or not but it is certainly an unusual opportunity

http://www.uploadlibrary.com/rightmovenews/SeeMoreUK_newsletter/SeeMore_apr09/landing_page/village_for_sale.html?utm_source=uknewsletter&utm_medium=email&utm_campaign=Apr09

House Prices increase for the first time in 18 months

It looks like the early spring sunshine has begun to disperse some of the doom and gloom surrounding the UK property market    Average house prices increased in March for the first time since October 2007 bringing the cost up to £150, 946, an increase of 0.9%.

Commenting on the figures Fionnuala Earley, Nationwide’s Chief Economist, said:  “Spring brought a surprise bounce to house prices in March. ……  However it will take time for these (measures taken by the Bank of England) to work through into the housing market before we can expect a sustained recovery in house prices.”
Piggy says “Mortgage approvals have also increased which is probably a fact of more significance to the average home buyer or property investor.(February saw the number of monthly approvals increase to 37,900, its highest level since May 2008.)  However most authorities agree that it is still too soon to say that the market has stabilised and lending criteria continue to be extremely strict.”

Reduce your Carbon Footprint with the Energy Saving Trust

The Energy Saving Trust are a non-profit organisation that provides free impartial advice tailored to suit you. Their advice can help you save money and fight climate change by reducing carbon dioxide emissions from your home.

Use their Carbon Cutter to calculate your carbon footprint and start making a difference

If you are looking to reduce your CO2 emissions there plenty of special offers and government grants available to help you make energy saving improvements to your home.

Piggy says  “Don’t forget that every home sold or rented out now has to have an Energy Efficiency Certificate and savvy buyers are looking for a good rating. An investment now could pay dividends in the long run.”

Financial Times reports that Buy-to-Let Market is picking up.

The Financial Times reported yesterday that for the first time in 2 years more landlords are buying than selling.  This is based upon information reported to ARLA by estate agents and is despite reports of an over supply of rental properties in some areas.

Could this be the start of an upswing in property prices?

Click here to read the whole story.

Energy prices dropping – now is the time to review!

The last of the six major energy supplies, npower, has just announced an 8% decrease to electricity prices, reducing average household bills by £36.  The changes will come into effect from 31st March 2009.

Piggy says “All the big six energy suppliers have now dropped prices, so this is an ideal time to review your utility provision and make sure that you are maximising your savings”

Energy prices drop – but what if you are on a fixed price plan?

Consumers who have been eagerly awaiting a drop in their energy prices will be pleased by the recent announcement that Scottish and Southern Energy will drop prices by an average of 4% for gas and 9% for electricity, effective from 30th March.   (Piggy says  “it’s a shame theycouldn’t manage it BEFORE the recent cold snap!”  )

But how does this affect you if you have subscribed to a fixed price plan?

Should you stick with it?

Are you still getting a good deal?

Changes in Planning Law saves Home Owners ££££’s

Changes to planning regulations from October 1st will be welcome news to home owners and property investors alike. Relaxation of the rules means it’s going to be far easier to make changes to your property, saving on both planning fees and red tape.

This is great news for anyone who needs to increase their living space but is finding it hard to move up the property ladder in the current housing slump. It also provides another option for landlords struggling to make rental figures stack up over increasingly high mortgage payments.

Piggybank’s quick guide to the changes…….