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Urban Residential Property Management
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Liverpool Landlords - licensing scheme set for approval for 2015

Liverpool City Council is set to introduce a licensing scheme for the city’s 50,000 private rented properties – in a bid to drive up the quality of housing in the sector. The notion was approved last week by the Cabinet and should come into force next year.

It follows a three month consultation over the proposal, and would mean that all landlords who privately rent properties in the city would require a licence for each of their rented properties.

The city council will need to determine that the proposed licence holder is a ‘fit and proper’ person to manage their properties, including having regard, amongst other things, to any convictions for dishonesty, violence or drugs or contraventions of housing or landlord/tenant laws.

Landlords will have to meet a variety of conditions around fire, electric and gas safety; rectify disrepair issues; tackle pest infestations; keep the exterior in a good state of repair and deal with complaints about anti-social behaviour caused by tenants.

Responsible landlords and agents who provide quality accommodation for tenants have absolutely nothing to fear from this scheme, and the council are exploring ways of reducing the licence fee wherever possible for good, compliant landlords

During the consultation, more than 2,000 responses were received from landlords, tenants, residents and stakeholders.

Residents who responded were generally in favour of the proposals – with 89 percent who were contacted in a telephone survey giving it the thumbs up, while 59 percent of residents who completed an online questionnaire were supportive.

Two thirds of the other organisations consulted also indicated their support.

People who were broadly supportive said it would make it easier to identify absentee landlords and give tenants better consumer protection.

However, there was opposition from letting agents, landlords and landlords’ forums for the scheme, with more than 80 percent against it.

No final decision has been made about the cost to landlords, although a figure of less than £2 per week per property has been suggested. This would be tax deductible consideration will be given to reduced fees if landlords are members of an accreditation scheme or have multiple properties.

The fees will only be used for legitimate costs incurred by the council such as compliance checks to make sure landlords are meeting the conditions of the licen

Rental yield - a quick guide

Landlords - Do you want to know how well your property is performing? This is known as "yield" and indicates the return on investment. Please click on the link below and have a read and do the simple maths to find out. Alternatively call us on 0151 283 1118 and we will be happy to help. 

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Thinking of Selling? Contact Urban Residential on 0151 531 9977 and ‘let’s get moving together’

Mortgage market review

The rules - known as the Mortgage Market Review (MMR) mostly came in to effect in April 2014 and are designed to protect consumers from the kind of reckless mortgage lending that would leave them unable to make repayments.
They were drawn up during the financial crisis and originally planned to come into force last summer but changes were made following consultation with lenders.
There is a new affordability check that may see applicants interviewed by a lender and asked about their income and outgoings.

'Stress test'

Previously, many mortgage offers were based on a multiple of the buyer or homeowner's income. Now, more consideration will be given to the household budget and how much spare money is available to them.

That is likely to mean more detailed checks, with questions asked about anything from subscriptions to childcare costs.
Applicants will be expected to explain if they are predicting any significant change in their income or spending.

Lenders will also have to "stress test" an applicant's ability to repay if interest rates increased over a five-year period. This is expected to lead to some applications being rejected.

However, the Building Societies Association (BSA) said this did not mean that those on lower incomes or those only able to offer a small deposit would be frozen out of the property market.
 

Top Mortgage tips


Check your credit score:
  • You can do this easily online with credit reference agencies like Experian and Equifax.
  • Ensure all your information is correct - if it isn't, write to the agency and request that they change it. If you have a poor score, start making changes to improve it. Once your credit file is ready, bring it with you for the mortgage adviser to go through as it will make you seem better prepared.
Keep up-to-date with payments:
  • If you have existing credit such as credit cards and loans, you must ensure that you keep up with the minimum repayments. If you are struggling to pay, speak to your provider as this may show favourably on your credit score. Try not to get too close to your credit limit or use overdrafts, as lenders may view this as 'excessive' debt.
  • Up to a third of applicants are rejected because of missed payments and defaulting on credit. Applicants may also be rejected for taking payday loans and for betting patterns being evident on bank statements.
Try to save instead of spend:
  • Applicants should strike a sensible balance on their disposable income and show a savings habit if they want to increase their chances of getting a mortgage.
  • Be consistent and double check
  • One slip-up on the application form could scupper your chances. This could be from a simple mistake, but it could also be from inconsistent information, which can flag-up possible cases of fraud and could stop an application.
  • Submitting numerous applications in a short space of time could have a negative effect, as lenders will worry why you have been rejected before.
If in doubt, speak to an expert.

You can seek professional advice from our panel of qualified mortgage advisers.

Investors Club

HAREBELL STREET - £50,000

This terraced family home would be an ideal first time buy or great investment opportunity with the potential to achieve £425.00 PCM rent. The accommodation comprises of a tiled entrance hall, spacious through lounge/dining area and a fitted kitchen with access into the rear yard. To the first floor are two double bedrooms each having laminate flooring
 
Newsham Park – £45,000
We are pleased to offer this One Bedroom Flat situated in Newsham Park Drive which is close to amenities and travel links directly into the City Centre. 

The flat comprises of a spacious lounge, fitted kitchen, shower room, separate WC and one bedroom. Recently updated with new carpets, neutral decor and double glazed windows and warmed throughout via gas central heating.

This is a great investment opportunity and achieves £325.00 rent PCM.
Dorset Road - £50,000

This property is perfect if you are looking for an investment opportunity and currently achieves a rental income of £425.00 PCM. 

The terraced home offers a hall, lounge through dining room, fitted kitchen, family bathroom and two excellent sized bedrooms.

Situated close to local amenities and transport links this property is in a popular location and viewings are highly recommended.
Halsbury Road - £90,000

We are pleased to offer for sale this terraced family home which is being marketed for investment only. The property currently has long term tenants and achieves £500.00 PCM.

The accommodation to the ground floor comprises of an entrance hall, spacious through lounge/dining room which leads into the well presented kitchen.

To the first floor are three good size bedrooms and family bathroom with three piece white suite.

The property is warmed throughout with gas central heating and is fully double glazed.
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