James' Blog about Property

Discussion, advice and philosophical points about all things property whether UK or International markets

Reported Buy to Let troubles in the UK market….

Posted by jamesdearsley on April 8, 2009

I remember distinctly when the Local Housing association introduced the new legislation dictating that Housing association tenants would be paid rent directly rather than it going straight to the landlords. I remember thinking that this would all go horribly wrong. This report in the Telegraph only supports this fact.

It used to be quite a safe bet for landlords to rent properties out to HA tenants because rent would be paid direct and so there wouldn’t be any problems chasing rent. Now however, according to this report 52% of Landlords will not be  or are less likelt to be renting out their properties to HA tenants. Surely this is a  negative for both the landlord and the for tenant who ultimately will have fewer properties to choose from in the future.

It is sad because previously the relationship seemed to be working quite well and gave both parties some degree of security. Maybe the Local Housing Association will have to review this policy now to revert it back again?

Advertisements

One Response to “Reported Buy to Let troubles in the UK market….”

  1. Further to this article there was a comment on my linked in discussion about this article by Kevin Wright from The Wright Financial Advice (http://tinyurl.com/chhrks) stating that it was no surprise this happened but there was now an alternative

    “Lease the property to the LA. They pay a guranteed rent to the landlord for the term of the lease (3 or 5 years) regardless of whether it is tenanted or not; or what status the tenant is”

    Something that I believe sounds entirely sensible.

    Thanks Kevin.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: