According to figures revealed in a recent survey taken by Rightmove Plc, Brits are confident that UK house prices will extend their gain over the next twelve months.

They say that 53 % of respondents predicted a rise in average house prices. This figure is most interesting when contrasted with figures for the same question a year ago. Only 10% indicated any confidence that there would be a rise in house prices.

There seems to be no doubt that we are on the rebound here in the UK property market, especially if consumer confidence is any measure (and as we know, with the economy, it is often the best measure).

Miles Shipside, director of Rightmove, said in a recent statement:

“Given the looming election and the talk of pending austerity packages ahead, this consumer survey highlights a surprisingly positive property price outlook. Consumers have the impression that we are over the worst of the recent price falls and that there is likely to be upward pressure on prices.”

Let’s hope we are all correct to be so optimistic, though the figures do seem to indicate that the worst of the recession is behind us with unemployment falling at the fastest rate last month since April 2007.

This kind of thing, combined with the low interest rates, is giving people cause to look forward to the future.

I think all of us in the property game should be very interested in the goings on with Skipton Building Society this week, even if we do not have a mortgage with them. Just what the heck are they playing at?

It seems that the brains trust at Skipton has dreamed up a new clause for their SVR (Standard Variable Rate) loan. One that pretty much lets them do what they like under ‘exceptional circumstances’. The result is that they have decided to invoke this clause (not sure on what grounds) and bump up their rates on existing loans.

I am sure they have got very good lawyers who have been through this with a fine tooth comb but I am still somewhat incredulous. You have to wonder exactly how clear this tricky clause was made to the customer before they signed on the dotted line and what examples were given to illustrate ‘exceptional circumstances’.

It seems to me they could be treading a very fine legal line. If, however, it is ruled to be all above board, and surely someone must test it, then that is a deep concern. If they set a precedent with this, we could all face rate hikes.

It is certainly something that needs looking at very closely.

The boom in demand from student housing has landlords desperately trying to keep up. After a year or so of too many void properties it seems that landlords now cannot fill the demand, and in the student sector this is even more obvious.

In the current academic year, 2.4 million students enrolled in universities; that represents a 34% increase over 10 years.

This unprecedented figure has resulted in fewer voids and has seen an increase in rent. The estimated figure is a return on investment of 7%-10%

There are clearly benefits, then, of renting to a student market. Compared to other buy to let properties, the returns are much higher. It is said that the demand in these areas is only set to rise over the coming years which is another enticing element.

The added bonus is that the way student housing works, the property is tenanted for most of the year and landlords knows seven months in advance if the property is pre-let for the following year.

This kind of thing guarantees income and allows planning for the future which is often lacking in the regular buy to let market. It has to be said that student rentals have a lot going for them and are certainly something to consider, especially if you are interested in property in the big student cities of Manchester, London and Sheffield.

We had the era of reluctant landlords and now it seems that the market is to be flooded with reluctant tenants. Further to yesterdays blog, the ARLA (Association of Residential Letting Agents) has released research which clearly shows the rise in people who are demanding rental accommodation, and a lot of them would rather be in their own homes.

This includes first time buyers, as I outlined yesterday, but also people who were forced to sell up at the height of the recession.

The ARLA is indicating that the situation is such that there is now a good chance demand for rental properties will soon outstrip supply. In fact, they ascertain that this has already started. During Quater Four, 2009, an average of 41% of members surveyed reported more tenants than properties – compared with just 24% last quarter.

A spokesperson for the ARLA had this comment on why this situation is occurring:

“New tenants include those homeowners who were forced to sell their home during the last year either due to financial instability or a job-move. And many people now in a position to buy are struggling to find the right property, as there is also a shortage of both properties for sale and realistic mortgages”

It is great for landlords to be in the driving seat after a very tough year but it is also a situation that the Government must keep an eye on. To not have enough housing for your population is a very serious problem, indeed.

It is shaping up as a great year for landlords as new tenants flood the market says James Davis, chief executive of online letting agent upad.co.uk. He goes on to add:

“The availability of finance for first-time buyers is still stifling the sales market, meaning would be first-time buyers are being reluctant [to purchase] or forced to rent.”

We all have a lot of sympathy for those people who are struggling to get onto the property ladder. It must be very frustrating especially with the actual price of property being so affordable at the moment. I can foresee a situation where banks finally decide to lend first homeowners money, right at the time of a property price hike, effectively making them much worse in real terms.

The point is, however, that with the attitude the banks have at the moment, a lot of people are unable to purchase their own homes and, of course, they have to live somewhere. This is set to prove a boon for landlords.

There is a bright side as Mr Davies pointed out. Renting is more flexible and at least you know what to budget each month as repairs to things like boilers are issues for the landlord.

From the landlord’s point of view it is great to not have the worry of so many empty properties.

According to the RLA the tables may be turning when it comes to Buy To Let loans. In fact, the RLA is making the bold claim that landlords may have the upper hand. Wouldn’t that be sweet?

In an article on their website this week the group claims that there has been a noticeable sea change in the attitudes of the financial lenders. They are showing a much greater willingness to entertain the idea of lending to landlords to extend their portfolios.

The RLA go so far as to say that one or two of their institutions are actively seeking out experienced landlords and targeting them with loan products. Apparently, their favourite among landlords is the type that has two or three properties and is looking to expand.

All that said, it is important to point out that the institutions’ focus seems to be very much on landlords that have quite a lot of experience and a proven track record. I guess they can be forgiven for having that attitude after the role that amateur landlords played in the last crisis.

If you fit their criteria though this is potentially very good news for you; with property at a fairly low price still this is your opportunity to grab a bargain. With loan products back on the table it is promising to be a very good year for some lucky landlords and one that they may benefit from for years.

This is the last blog that I am going to write in relation to this topic, for now anyway, but I just wanted to round off my series on the type of support that the Government needs to be giving the BTL sector. I really think it is time we all made our voices heard on this issue.

I touched on the idea of landlords being treated as traders in the last blog and I want to go into a little more detail here. The Government actually commissioned a review into this topic, the Rugg review. When they returned with their findings, one of the strongest recommendations was that private landlords be treated like businesses. Julie Rugg, head of the review, outlined to the government how important it was that landlords were taxed in the same way as other businesses. Until now they have ignored her.

The private rented sector is becoming acknowledged as the key provider of homes in the UK and this is not something that is going to go away with the recession. It started before the recession and will continue long after it. The way taxation is applied will play a vital part in how healthy this sector remains and at the moment that could mean the difference between the population having homes or not.

It is no longer just a matter of looking after private landlords, the Government needs to look after us so we can help to make other people’s lives better. These taxation changes must be made for the good of the nation’s economy.

In a continuation of our series supporting the RLA’s pleas to the Government, this blog is going to cover a couple of taxation topics. The first is a call for tax relief for carrying out works to comply with HMO conditions; next, a look at capital gains tax on active residential property investment businesses.

There have been a lot of regulation changes in recent years that have affected landlords and many of them have resulted in the landlord having to spend large amounts of money.  An example of this is the changes to fire regulations which resulted in the necessity to update systems. In one house this was a significant expenditure but if you had a sizable portfolio the cost was nearly backbreaking. No one is questioning the need for top notch fire safety and we all approve of the law change. Given that it is a law, however, these kinds of things should result in tax relief for landlords. It is only fair.

The next suggestion the RLA has for the Government is one that I am completely behind. It is an urgent plea for those in charge to change the status of residential property investors who are actively involved in managing their businesses to that of trader. This would allow them to claim capital gains rollover relief for residential properties and, even better, taper relief. Landlords have been calling for this change for what seems like an age now and it appears to be falling on deaf ears.

As the true worth of the BTL sector to the British economy is slowly becoming apparent it would behoove the Government of this country to start taking some notice.

In a speech given to the Fabian Society last week John Healy, housing minister, made it clear that the population of the UK is increasingly looking towards renting. In a statement that many with an invested interest in the BTL sector would call blindingly obvious Mr Healy confirmed that people are increasingly turning away from buying their own homes and beginning to rely on rented accommodation to house them.

Seven years ago seventy one percent of all homes in the UK were owner occupied. This figure had dropped by three percent last year and all signs indicate it is likely to decrease further. It seems that the British dream of owning your own home is starting to tarnish slightly.

Interestingly though, Healy does not seem to believe that this attitude was kick started by the recent recession. He says that this move toward the rental sector showed up in figures as far back as 2005.

I do agree with the minister when he states that this trend is not necessarily a bad thing. It is all about perception really. Continental Europe has always been happy to rent privately and use their money in other ways. Owning your own home is not the necessity that we in Britain have so long regarded it as, but rather a lifestyle choice. It may take a long time for the older among us to accept this statement but it seems that some of the younger generations are already there and quite content to rent their home.