Record levels reached for rents

Over the past year getting a mortgage has remained difficult for the many non-homeowners who are desperate to get onto the property ladder. This has led to an increasing number of people that may normally have opted for a mortgage to buy their own place having no other option but to rent. The demand for rental homes has rocketed as a result of this, which has pushed up rental costs.

It has now been revealed that rents are at their highest level since they last reached record highs back in November of last year. The average rent being paid has now soared to £692 per month, reflecting an increase of 0.8 percent compared to the previous month and a rise of 4.4 percent compared to the same period last year.

The landlords of private rented properties are, on average, raking in around £30 per tenant more each month as a result of these increases. Whilst the rent increases are good news for landlords, as they have a huge demand for their properties, it is not so good for tenants who are already struggling financially and do not have to option in many cases of being able to invest in their own property because of the financial restrictions in the mortgage market.

There are concerns amongst landlords about increased levels of arrears and missed or late payments recently. One official said: “The final bank holiday of the month delayed many rental payments, but on top of this, thousands of tenants took advantage of the opportunity and booked holidays, which has impacted on the timely payment of rent. Nevertheless, despite the short-term factors, landlords need to remain especially vigilant over the medium-term. We are yet to see the true picture emerge from public sector spending cuts, and changing employment situations will hamper many tenants’ ability to meet their monthly rent cheque on time.”

Tags: landlord, Renting, mortgage, payment, opportunity, result

Compensation for Standard Life clients

In a recent report it has been revealed that Standard Life will indeed by compensating a number of its policyholders following controversy over its Pension Sterling Fund, which recently hit the headlines after policyholder suffered losses and industry groups claimed that the literature that Standard Life had sent out was misleading. Read more

Tags: policyholder suffered losses, pension sterling fund, Business Finance, standard life, funds, Pension, opportunity

Recession could lead to rise in burglaries

A rise in burglaries over the Christmas and New Year period is something that concerns most of us. Many burglars decide to step up the pace over the festive season because this is the time when people tend to have more expensive items in their homes, such as gifts purchased for others or gifts received from others. It is also a time when many people are out of their homes visiting relatives and friends or socialising, giving thieves more opportunity to carry out burglaries. Read more

Tags: insurance coverage, growth, phone call, recent reports, opportunity, budget, burglary

BRC advises on store cards

The British Retail Consortium (BRC) advised British consumers yesterday that they must decide for themselves as to whether store cards were worth getting.

The credit cards, increasingly popular with UK shoppers, are offered by many large retail chains, such as IKEA, River Island, Mothercare and Debenhams.

Typically, they offer an interest-free period of around 55 days, and discount around 10 per cent from the first purchase.

Set against this is the mounting evidence that store cards consistently charge more interest than is usual. Recent research from consumer website Moneyfacts found that store cards charged 24.3 per cent interest, compared to the overall average APR of 16.7 per cent.

Press officer at the BRC said that the cards “offer a range of benefits to customers, including special promotions for cardholders, discounts and the opportunity to accumulate transaction-based loyalty points”.

He added that “as long as the rate of interest on store card debt is made clear to customers at the outset and there is full transparency of all terms and conditions, consumers are, and should be, able to make the appropriate choice for themselves”.

Tags: Recent research, Payment systems, rate of interest, cent interest, Consortium, large retail chains, outset

100% plus LTV mortgages set to grow in popularity

The 100 per cent mortgage market is set to grow, according to industry experts.

Brokers were polled by Alliance & Leicester, which reveals today, with 78 per cent predicting that increasing amounts will be taken out in future.

Almost three quarters said that they had already advised clients on the product, which is at present only offered by five lenders.

Mortgages of 100 per cent or more LTV (loan to value), the purchase of which means that no lump sum or deposit need initially be paid, might prove especially popular with first-time buyers.

Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, said: “We are pleased to see that most brokers predict this market will grow within the next two years as these products offer a great opportunity for borrowers who need some additional funding.

“The mortgage market is continually changing and there is an ever-growing need to find more flexible products to allow people to get on the housing ladder or to manage their existing borrowings in a better and more efficient way.”

The rise in popularity could be seen as a consumer response to runaway increases in house prices. The latest government figures, released earlier this week, show that the average house in London was almost 15 per cent more expensive than this time last year.

The data also revealed that the overall year-on-year inflation rate for house prices stood at 10.9 per cent.

Tags: housing ladder, london, LTV, funding, Mortgage loan, opportunity, week

100 days until mandatory Hips

People considering taking out a mortgage on a home are eagerly awaiting the introduction of a law which makes the provision of Home Information Packs (Hips) mandatory.

It is now just 100 days until the law comes into effect and, although the road to this point has not been smooth, it is hoped that the buying and selling process will be revolutionised.

The Association of Home Information Pack Providers (AHIPP) believes that around £1 million will be saved every day as a result of Hips.

This is due to the extra information meaning that the number of transactions which fail to go through each year should fall.

“Hips are being introduced to help improve the house buying and selling process for all involved – bringing more information about a property to the front of the process, allowing buyers to make more informed decisions,” said Mike Ockenden, director general of AHIPP.

“In the locations where packs are being rolled out already we have received a positive response from industry, with many agents taking the opportunity to ensure they are prepared for when packs become mandatory.”

Hips are due to become mandatory from June 1st 2007, with anyone who intends to sell a property on or after that date required to get a pack before advertising the property.

Tags: positive response, General, opportunity, Home Information Pack, Property Information Questionnaire, property