Yesterday the Residential Landlords’ Association ran a blog which contained some of the most insightful comments I have read in a long time.

The RLA has basically written an open blog to the Government urging them, for the good of the country, to give private landlords a break.  Their reasoning is sound.

Given the financial crisis, people are going to be turning to the private rented sector in their droves. Therefore, not only is the PRS going to be providing vital accommodation but it will also be in a position to stimulate increased economic activity. The PRS is, in fact, going to play a major part in hauling the UK out of the mire.

The point the RLA is making is that the Government should be doing more in the way of initiatives to help this critical sector.  Given the situation with loans and other recent law changes, it would often appear that the exact opposite is happening. The RLA are making some recommendations regarding taxation and other breaks that seem like common sense.

Their thoughts are very comprehensive on a number of issues so what I plan to do over the next couple of blogs is summarise them and add my two pence worth.  I think it is important that we all understand what the RLA is suggesting and get behind their campaign to have the government listen to what the PRS has to say.

Yesterday the Residential Landlords’ Association ran a blog which contained some of the most insightful comments I have read in a long time.

The RLA has basically written an open blog to the Government urging them, for the good of the country, to give private landlords a break.  Their reasoning is very sound as, given the financial crisis, people are going to be turning to the private rented sector in their droves. Therefore, not only is the PRS going to be providing vital accommodation but it will also be in a position to stimulate increased economic activity. The PRS is, in fact, going to play a major part in hauling the UK out of the mire.

The point the RLA is making is that the Government should be doing more in the way of initiatives to help this critical sector.  Given the situation with loans and other recent law changes it would often appear that the exact opposite is happening.

The RLA are making some recommendations regarding taxation and other breaks that seem like common sense. Their thoughts are very comprehensive on a number of issues so what I plan to do over the next couple of blogs is summarise them and add my two pence worth.  I think it is important that we all understand what the RLA is suggesting and get behind their campaign to have the Government listen to what the PRS has to say.

A very interesting report released this week by a public opinion research firm, Unbiased.co.uk, indicates that an increasing number of British home owners are considering selling their own properties and moving into rented accommodation.

It seems that the trauma of the real estate crash we have just experienced has a lot of people reconsidering their housing options. Nearly two million home owners indicated that they would contemplate selling their house and renting in the near future; of these a third said it was something they would not even have thought about two years ago.

The reason given by most people who say they would consider this route is that it would be worth it for the peace of mind. It would appear that people got a thorough scare during the recent property crash and many have decided that it is just not worth the worry.

Another factor mentioned is also linked to the recession. People are saying that with the job market the way it is, renting would give them the mobility to go where the work is if they needed to.

People are clearly still quite shaken by recent events and who can blame them. It will be interesting to see whether many carry through with what would be a fairly radical move and give up their property to move into rented accommodation. Somehow I just cannot see it happening.

With a lot of people agreeing that the worst of the recession and the credit crunch is now behind us, it is very heartening to see the London property market showing distinct signs of an economic recovery.

The growing confidence in the London market is an indicator that vendors realise that sales are now more profitable and, nearly as importantly, properties are turning over much more efficiently.

Leading London estate agents are delighted with the fact that the number of buyers registering with them has risen by 70% from this time last year. To make things look even rosier there has also been an 80% increase in agreed sales over the same period.

On the buy to let front, the London market has contracted with available stock decreasing by 13% as accidental landlords decide to sell and get out of rental all together. This combined with the fact that the demand for rental properties has actually increased by around 20%, has eased the plight of a lot of landlords who had been faced with vacant property problems.

A knock on effect of all this is that landlords are able to demand a fair price for their rental properties again after having suffered a fairly substantial drop in the preceding year or so. All in all London property is again looking like a good investment.

Many people give at least some of the credit for the UK property revival to the Government’s decision to lower the stamp duty threshold from £175 000 to £125 000 but this stamp duty holiday is about to come to an end and it could spell disaster.

Surveys carried out by leading mortgage lenders seem to indicate that the end of this arrangement could well see tens of thousands of sales fall through.

Many experts are criticising the Government on this one as they believe that they have missed a golden opportunity to reform this tax. The stamp duty tax is seen as distorting the property market because of the huge increase from 1% to 4% on properties in the £125 000 to £500 000 bracket. Experts also believe that the tax should only be applied to the excess rather than to the whole purchase price.

This planned reversion to the old level of stamp duty is causing deep concern in the property industry. James Thomas, head of residential investment at property consultants Jones Lang LaSalle, has expressed a worry that this move could cause drops in property prices across the board.

‘There are already signs of the recent resurgence in house price growth slowing and our latest Residential Market Forecast anticipates a fall in average UK house prices of around 7% in 2010,’ he explained.

As usual, however, this kind of news could prove to be a double edged sword. Buy to let buyers may well benefit from the knock on effect of a rise in tenant demand.

The number of landlords choosing to remortgage their investment properties has fallen to its lowest level in two years according to a survey by Paragon Mortgages.

The survey Paragon carried out revealed that only 39 percent of landlords chose to take out a remortgage in the third quarter of this year. Combined with this is the fact that the borrowing of money for portfolio extension purposes is at its highest level since 2001. Figures indicate this is now 48 percent.

John Heron, managing director of Paragon Mortgages, said:

“Landlords are not remortgaging for two reasons – they cannot because of the low number of mortgages available, and there is little incentive to do so because the reversion rates when coming off an introductory deal are so attractive due to the low Bank of England base rate and Libor.”

“We have not experienced the massive sell off of buy-to-let property during the recession that some were predicting, but buying activity has been subdued. As house prices have stabilised, landlords now obviously believe that it is a good time to start expanding before house price inflation starts up again.”

This is good news but a note of caution is clearly being sounded of the lack of availability of buy to let loan products available in the market at the moment. This really does continue to be of grave concern.

We all understand that there were some rogue landlords that made things tricky for tenants regarding their deposits. We even kind of understand why the government intervened with its approved tenant deposit scheme but it is interesting to see that even they do not get it right all of the time.

Last month, one of the governments approved agencies collapsed and went into liquidation owing a whopping 382,000 pounds, largely made up of tenants’ deposits.

Stephen Greenwood had apparently been in business 36 years prior to this fall from grace. The company gave the recession and the failure of a large Spanish investment as reasons for their liquidisation.

Of course, we all have a lot of sympathy for this as many of us have experienced the hardships that have come with this recession. We wish the Rugby estate agency firm that has taken over his properties,  Craig Walford, the best of luck.

He seems to be doing the best he can by the existing tenants, having worked 23 hours day in the initial stages to get things up and running and has now opened the doors to the former Greenwood’s office to accommodate the extra business.