Press Release
Fundamentals of housing market still strong
15th Apr 2008
Fundamentals of housing market still strong
Source: http://www.naea.co.uk
Following the release of the latest Housing Market Survey by the Royal Institution of Chartered Surveyors (RICS), Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA) called for steadiness amongst property market professionals and said that there are still strong economic factors underpinning the market that have not changed and that there is some good news.
"The positive news is that the RICS survey showed that just under a quarter of its respondents appear to have reported a rise in house prices, which shows how regionalised the picture is. We are already aware from our own members that house prices are being affected differently throughout the country so to find such regional discrepancies comes as no surprise.
"No one is denying that the housing market is in a tricky situation but it is important to keep it in perspective and we do need to exercise discretion in the figures, for instance the report states that the East Midlands is showing falling prices, yet the recently released Halifax house price index showed a 2.2% rise in the same region. This also needs to be set against the fact that these areas have seen huge price rises over the last ten years.
"The market is battling with the credit crunch, which has undoubtedly had an effect on confidence. However, the key factors that underpin the housing market still exist - low unemployment, historically low interest rates and a pent-up demand for houses. We can see from the figures that it is not all doom and gloom out there and we need to tread very, very carefully before making long-term judgements on the market at this current, unsettled, time."
Maxine Lester Expands
Jan 8 2007
Local Business starts New Year with a bang .
Maxine Lester Residential Lettings winners of the 2007 Hunts Post Business Development Award have recently acquired the business of Campbell’s Rentals Ltd.
“We are absolutely delighted” said Maxine Lester, Director and founder of the Company. “The opening of a 2nd office gives us the opportunity to strengthen our presence in Huntingdon. Rental demand continued to increase though the last quarter of 2007 and we have already seen a benefit to our Landlords. We are now attracting a higher proportion of prospective tenants in the Huntingdon area and have been able to fill our Landlords properties quicker. It gives us a great platform to start 2008. The personnel joining us from Campbell’s will obviously strengthen our existing property management team meaning we can not only improve service but also give a stronger presence in the Huntingdon market.”
How far should you go - decorating (Oct 2007)
Decorating a rental property can be a minefield – the wrong shade of paint could put off prospective tenants.
However there are steps which can be taken to make the process easier to navigate for the new Landlord.
‘’ In the main you must present the home to as wide an audience as possible” said Maxine Lester Director of Maxine Lester Residential Lettings.’’ The most important points to consider is with your budget, your target market and what is important to them. Tenants generally want a clean, tidy and well maintained home that is neutrally decorated. You don’t need to go overboard with a designer kitchen but you should think about putting in an extractor fan to prevent damp in the bathroom.’’
“ Between tenancies a fresh coat of paint in the hall and living room will keep your investment in tip top order . Every 7 – 10 years look to update kitchens and bathrooms as well as looking at lighting and heating‘’ said Sheila Cayton Property Manger. “We have a pretty extensive check list that we go through on each visit and therefore are able to advise our landlords what will be needed in the future to keep the investment at the top end of the rental market. Those Landlords who take a proactive approach to decorating give the right signal to their tenants and we have found that this always extends the length of tenancy”
If you would like more information or advice on any aspect of rental then please contact Maxine on 01480 494939.
ARLA welcomes new member (Sept 2007
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Maxine Lester Residential Lettings finalists in this years Hunts Post Business Awards has recently joined ARLA, the Association of Residential letting Agents.
ARLA is the leading professional and regulatory body in the UK exclusively for letting agents in the private rented sector. ARLA members are required to comply with a Code of Practice and to have staff in their branches with suitable industry qualifications.
Adrian Turner, Chief Executive of ALRA said “we are please to welcome Maxine Lester Residential Lettings into membership of ARLA. Professional letting agents such as these who are committed to promoting the highest standards in residential lettings help our association to strengthen the Private Rented Sector and to drive out the dishonest and cowboys agents who too frequently prey on the unsuspecting public”
Maxine Director of Maxine Lester Residential lettings said “we have always promoted the highest standards in everything we do for both our Landlords and Tenants and joining ARLA was the obvious next step in the company’s development.”
Are you green enough ? (August 2007)
While most UK householders consider green issues to be important, few landlords are currently willing to pay more for measures that would reduce carbon emissions. According to a recent report on the market for sustainable homes by Savills estate agents.
‘’This picture could be set to change over the few months’’ said Maxine Lester Director of Maxine Lester Residential Lettings winners of the 2006 Hunts Post New Business Award. ‘’With the introduction of Environmental Performance certificates which are due to come into force autumn 2008’’
‘’If we are lead to believe the rhetoric, this new EU directive will greatly affect awareness of energy use in buildings and could have an impact on rental values. It is logical to assume that tenants would most probably opt to pay more for a property, where it could be shown their utility bills for electric and gas could be reduced. ‘’
‘’ There are some great incentives in the form of Tax Allowances for landlords to make there properties more energy efficient. These include loft insulation; cavity and solid wall and hot water system insulation and draught proofing so it really is a win win situation.’’
Buying and Selling Buy to Lets (May 2007)
 With Buy to Let substantially improving the housing market stability and more people seeing the long term benefits of this type of investment, more Landlords are looking at the best way to hold the property from a tax point of view.
''The first thing we always advise new investors is to talk to their accountant'' said Maxine Lester Director of Maxine Lester Residential Lettings - winners of the 2006 Hunts Post New Business Award, as there is no 'one size fits all solution'.
Some investors do not realise that as well as becoming a landlord they are also running a business and like any other business it is important to set things up correctly from the start. Apart from personal circumstances the most critical issue is to anticipate the number of properties they aim to have in their portfolio.
One of the key questions we suggest that our clients explore with their accountant are how they should hold the property - in their own name or through a company as both have their merits. Strangely one of the drivers is to know when they intend to dispose of the property, as the taxable gain is dealt with differently for individuals and companies.
Your Accountant should be able to highlight the risks and benefits of each option, although the final decision will be yours and given you are looking forward several years, it is always going to be a gamble. However if you start out understanding the options then you have a better chance of arriving at a profitable solution.''
If you would like to find out more about Buy to Let then please call Maxine Lester on 01480 494939.
M Day - Are You Prepared? (Mar 2007)
ARLA recently reported that only 30% of Landlords were fully aware of how the new Tenant Deposit Protection Scheme will work and what will need to be done after April 6th to make sure that they do not fall foul of the law.
''The aim of the legislation is to ensure that a tenant who pays a deposit and who is entitled to get all or part of it back, at the end of the tenancy does. It will affect all Assured Shorthold Tenancy's (AST's) created after 6th April 2007 '' said Maxine Lester Director of Maxine Lester Residential Lettings - recent winners of the Hunts Post New Business Award.
''In a nutshell the deposit must be held in either a regulated insured scheme (which should be the case if your property is managed by a bonded lettings agent) or a custodial scheme (if the deposit is held by the landlord)''
''It will be down to the landlord/agent to advise the appropriate Scheme Administrator on the details of the deposit. So if the tenant disagrees with the final outcome of the deposit returned at the end of the tenancy. They can then lodge a complaint with the Administrator who will then act as an arbitrator to resolve the dispute'' said Maxine
If you have any concerns with this new legislation Maxine Lester Residential Lettings have set up a help line on 01480 494939 and will be happy to help you with any queries you may have.
Are You Covered? (Feb 2007)
As a Landlord, if you survived the raft of legislation that came into force in 2006 then you should find 2007 plain sailing with only 1 major change - Tenancy Deposit Protection - which this time is all about the way that Tenants deposits are held and becomes law in April 2007.
''It will effect all landlords and agents who operate Assured Shorthold Tenancy Agreements (ASTs), and who take and hold a deposit from their tenant. It will have major consequences on those that do not sort something out by April.' said Maxine Lester Director of Maxine Lester Residential Lettings - winners of the 2006 Hunts Post New Business Award.
''In effect deposits taken from April 2007 will need to be 'protected' in the event that the landlord does not return all or part of it to the tenant at the end of the tenancy agreement.'' Said Maxine
From this date, Private Landlords who do not use an agent to manage their property will, in essence, have three options open to them:
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stop taking a deposit from tenants, or
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lodge the whole deposit with the default Custodial Scheme set up by the government at the start of the tenancy, or
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join an Insurance-Based Deposit Scheme for the right to continue to hold the deposit themselves. They will have to pay a fee to the scheme in order to obtain this 'protection' for each deposit
"Fortunately our landlords do not have to worry about this, as a bonded agent we are part of an insured scheme so its business as usual" said Maxine.
If you would like to find out more about Tenancy Deposit Protection call Maxine Lester Residential lettings on 01480 494939 who will be more than happy to explain this new legislation in more detail.
We are finding that both landlords and tenants are being given little information by the authorities and have been taking a higher volume of calls than normal from people who are confused as to what this legislation will mean to them.
Buy to Let - Win Win all the Way (Jan 2007)
Recent research in to this growing market have shown that Buy to let is set to remain inextricably linked to the future of the housing market and a vital element in providing homes for a significant proportion of the population.
''It is not surprising'' said Maxine Lester Director of Maxine Lester Residential Lettings - winners of the 2006 Hunts Post New Business Award,'' Property values in the UK have risen by more than 150% since 1998 meaning that the average age of the first time buyer is now 34. Buy to Let is a flexible and cost effective way of providing decent accommodation where it is needed. Landlords therefore benefit from a combination of rental income and the uplift in capital values of their properties- it's a win win solution.''
''Our annual survey has shown that unfurnished two bedroomed houses with equal sized bedrooms are still the easiest to let - These homes offer the maximum number of possible tenant types - two sharers, a couple, couples with one child or a single person.'' said Maxine
Part of the service provided by MLRL is to give guidance to both new and established landlords as to the type of property that are more likely to rent out in the local area.
''You can make expensive mistakes if you forget that you are buying an investment and that's where we can help.'' Maxine said.
Award Winners give back to Community (Nov 2006)
The Hunts Post Business Award winners for best new business in 2006 Maxine Lester Residential Lettings have announced they have pledged 10% of their future profits to housing charities.
"We have had a brilliant year and have grown beyond our initial expectations" said Maxine, director of the company, "the Company's ethic is very much based around providing the best customer service possible and we are great believers in supporting our local community - successful business is not just about the bottom line".
"We have decided for this first year to make the donation to Papworth Trust. This was such an obvious choice for us they are a local charity supporting disabled people to have equality, choice and independence, and they support people to enjoy the choices about where they live that we all take for granted.
The rental market continues to be very buoyant and is still offering some good returns to landlords who are also seeing the benefit of capital growth in their asset. . Our complete property solution can help those looking to enter the market for the first time and stop them from making some expensive mistakes has been fundamental in our growth, its great that we are in a position to past that benefit on'' said Maxine.
Local Business goes from strength to strength. New Local Business nominated for award (Sep 2006)
The team at Maxine Lester Residential Lettings in St Ives, are delighted to have been told they have reached the finals of not just one, but two categories of the Hunts Post Business Awards which are to be announced at a Gala Dinner in November.
They have been nominated for both the New Business Award and Business Development Award. '' We are thrilled to have got this far'' said Maxine Director of MLRL "and consider this a huge compliment to us, as the company is less than a year old. It has been a really interesting exercise as the Hunts Post posed some very thought provoking questions which made us realise how much we have achieved in such short a time.''
Hearing about our nominations has made a great end to a very exciting first year for the Company which has seen them win a major contract and the team size double.
Maxine told us "We take Customer service very seriously and have worked hard to ensure that even with the recent major increase in size, we maintain the level of service that has helped us develop so quickly. This has been achieved by listening to our Landlords and tenants, and building a good working relationship with them".
Maxine and her team are looking forward to the next 12 months and hope it will be as exciting and energetic as the first.
Rental Market great news for Investment Landlords (Sep 2006)
The property rental market is in great shape with more people than ever either deciding to extend their portfolio or become landlords for the first time according to local property management company Maxine Lester Residential Lettings.
In Cambridgeshire 11% of the housing market is privately rented and demand for rental accommodation is expected to increase by 40% over the next 10 years.
''There are many reasons for this'' said Maxine Lester Director of MLRL. ''The average age of the first time buyer now stands at 32 so people are renting for a longer period of time. Increased job mobility means that people are relocating across the UK, and since we have a buoyant employment market in Cambridgeshire, demand for new employees to relocate from other parts of the country is high. More importantly the general attitude to renting a home is now far more positive than it was in the 80's.These are just a few of the driving factors that are providing a stable upward trend to the private rental market and make becoming a landlord more attractive.''
''With this in mind we have extended the service we provide to anyone thinking of getting involved in Buy to Let. Finding the right property for the right return can be an exhaustive process. So with our local knowledge we are best placed to match a property to your needs and we can show you the type of return you could potentially achieve which cuts down on the viewing process. We will also go and view properties you are interested in to give you a better idea of the work that would be needed to attract a good return as well as a more detailed view of the potential return.''
The usual mistake that new landlords make is to think that nothing can be done with the investment until the day of completion.
''This is just not the case'' said Maxine '' We work closely with reputable companies like Wellington Wise who understand the need for access before exchange and we have therefore been able to have tenants lined up ready to move in on the day of completion''.
Buy to Let still very positive (Jul 2006)
There have been quite a few conflicting reports about the state of the housing market recently but local letting agent Maxine Lester Residential Lettings is finding that the reports are having little or no effect on Buy to Let investors.
''We recently carried out a survey on a cross section of our landlords and found that nearly two thirds of them are looking to acquire further investment property in the next twelve months'' said Maxine Director of Maxine Lester Residential Lettings. We also found that they have little concern if house prices fall, with nine out of ten deciding not to sell if this happened.''
''A high proportion of our landlords have been active in the Buy to Let market since 2000 and they hold an average of five properties. Virtually half of everyone we spoke to say that they have invested in buy to let properties to create a nest egg with 43% looking for a rental yield as well as capital appreciation but only 6% have invested solely for the income.''
''We work very closely with our landlords finding out what their criteria are and match opportunities that come on to the market with their needs, we call it our Total Property Management Solution and it really is a one stop shop for landlords that know what they want but do not have the time to find the right investment.''
Is Your Deposit Safe? (Jun 2006)
Landlords should now be thinking about what they need to do when the Tenancy Deposit Scheme comes into force in October of this year. The scheme is being set up to safe guard tenant's money from being kept or spent by unscrupulous landlords and letting agents. Once the provisions come into effect, money paid as a deposit to an Assured landlord or agency on all new shorthold tenancies must be safeguarded by a TDS.
Maxine Lester Director of Maxine Lester Residential Lettings said '' This is something that we already do and it gives the tenants and landlords involved peace of mind. All the deposit's we hold are protected by a client money protection bond. When these regulations come in to force it will mean that everyone will have to meet the same high standards that we already work to '''
A TDS will help when it comes to resolving disagreements that arise when the tenants leave a property they have been letting. A body will be set up to act as a mediator for case when problems arise.
The third advantage of the scheme is that it will act as a guarantee that deposits will be paid back if the landlords or agency becomes insolvent.
More information about TDS is available on the office of the deputy prime ministers web site at www.odpm.gov.uk.
Rents on the increase - says Local Agent (May 2006)
Maxine Lester Residential Lettings have seen an increase on the rental values they achieve for landlords over the last six months.
"We carry out regular reviews of our landlords portfolios and have established that over the last six months 67% have been able to achieve a significant increase on the rental values they were receiving the same time last year" said Maxine Lester Director of Maxine Lester Residential Lettings. "The main reason for this being that these landlords have been willing to implement improvements to the quality of the homes they give to us to manage" said Maxine "the most important areas are obviously bathrooms and kitchens, but it is also the detail that counts. A newly painted hallway and clean unmarked carpets can make a lot of difference to the initial impression of the home when finding tenants."
Tenants are very discernable individuals and are willing to pay that little bit extra when they can see that effort has been put into their prospective home. It is also a strong indicator that the landlord cares for the property, and suggests they will care for the Tenants.
"Buying to let is a long term investment and the Landlords we talk to understand that consistent tweaks to the presentation of the property not only protects their asset but also attracts better tenants." said Maxine.
Confusion in the Rental Market (Apr 2006)
As new regulation comes into force this month, Maxine Lester Residential Lettings have been inundated with calls from anxious landlords following a national advertising campaign by the Government.
''There seems to be a great deal of confusion for landlords because they have taken the advertising to suggest that all properties need to be licensed and failure to do this will mean high penalties. Which is just not the case'' said Maxine, Director at Maxine Lester Residential Lettings.''
"We have been talking to our landlords over the last few months to update those that will be effected by the new regulations. We have been quite proactive in liaising closely with the local councils and the ODPM so I think it is fair to say that we have a good knowledge on the effects of the 2004 Housing Act.''
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