Let Alliance’s specialist Landlord and Tenant B&C Insurance products are now widely available to Directly Authorised and Appointed Representatives intermediaries. After a successful year providing products exclusively to Personal Touch Financial Services, they have been added to the panel of AR networks In-Partnership, Whitechurch, Sense, Julian Harris and Network Direct, with various other networks being in final agreement stages.

With the positive Buy to Let sector comes a need for a product which is ‘fit for purpose’ and designed to meet the needs and demands of landlords and tenants. Andy Halstead, Let Alliance Group CEO said, “Our products provide specialist protection for landlords and tenants at the right price and we reward intermediaries with straightforward annual indemnity commission for the life of the policy”.

Paul Pearce, Sales & Marketing Director at Let Alliance said, “The Buy to Let sector is one area financial advisers are reporting continued growth. Let Alliance provides products which will help to grow intermediary insurance sales, whether that be for a landlord with one rental property or the landlord who holds larger property portfolios, we can help.”

Andy said, “We’ve done our research and we’re using our experience in supporting the UK letting agency market place. We know what landlords require and we provide it. Unlike many of our competitors we do not write homeowner insurance, we specialise in landlord and tenant insurance only”

Why not call the Let Alliance Intermediary Team on 08458 873 830 or visit www.letalliance.co.uk/for-financial-intermediaries to register for an agency or to find out more about the products.

Dalton reunites with Let Alliance CEO Andy Halstead, Sales Director Paul Pearce and Head of Intermediary Sales Lisa Wright, who all spent time at Paymentshield.

Andy Halstead said, “I am delighted to welcome Rita to our fast growing business at Let Alliance. A talent with Rita’s experience and existing relationships rarely becomes available.”

Rita commented that joining Let Alliance was an easy decision, “Let Alliance are committed to the UK mortgage broker market and I have good relationships with lots of brokers. I enjoy helping mortgage brokers to grow their businesses and Let Alliance has great, specialist landlord insurance products to support that.

Rita’s appointment underpins Let Alliance’s commitment to continue growing their Financial Intermediary business, following their recent addition to the panels for Sense Network, IN Partnership, Whitechurch Network and Julian Harris Networks, as well as their existing relationship with Personal Touch Network and Directly Authorised firms across the UK.

The new service allows Let Alliance to place Landlord Buildings & Contents Insurance when circumstances determine the insured classification as ‘Non-Standard’. Examples of this could be blocks of flats, short and long term unoccupied rental properties or landlords based overseas.

Paul Pearce, Sales & Marketing Director at Let Alliance comments; “We are always looking to improve what is already a high quality specialist Landlord proposition. By providing this additional service to financial advisers we can assist them to help find the best cover available for all rental property situations”.

He continues “Our standard Landlord B&C product is really making waves with its level of cover and competitive premiums. Our new service will further enhance advisers product offering when it comes to the specific demands and needs of a buy to let landlord”.

You can contact Let Alliance on 08458 873 830 or register for an agency by visiting www.letalliance.co.uk/for-financial-intermediaries

Whole of market network ‘Sense’ has extended its comprehensive range of product providers to now include specialist Landlord and Tenant Building & Contents Insurance; Let Alliance.

Paul Pearce, Sales & Marketing Director at Let Alliance comments; “I’m delighted Sense Network has chosen to provide their IFA firm’s access to Let Alliance. Both businesses are growing in stature with our values and principles going hand in hand by providing value for money, quality of service and comprehensive products”.

He continues “When it comes to insuring small or large property portfolios Sense IFA’s can now supply their Landlord clients with specialist products to fit their specific demands and needs”.

Stephen Young the networks Commercial Director said “Sense members are committed to providing independent advice to clients and we are pleased that members will now have access to the Let Alliance specialist landlord product alongside the full range of other general insurance products in the market”.

According to the latest Private Rental Sector Survey from specialist Landlord and Tenant Buildings & Contents provider Let Alliance, 69.6% of landlords said they chose Let Alliance due to the quality of cover provided and where also happy with the premium for the level of cover received.

Just 17.4% of landlords stated they chose Let Alliance based on premium alone.

Landlords are looking for quality cover when it comes to protecting their property investment interests. An overwhelming 87% agreed that both Malicious Damage and Accidental Damage Cover are essential for Landlord Buildings & Contents policies.

Paul Pearce, Sales & Marketing Director at Let Alliance, said: “It just goes to show landlords want their rental properties protected with the best level of cover possible. For the sake of a couple of extra pounds per month, landlords are happy knowing a potential Malicious Damage claim won’t wipe out their annual rental profits and better still they can also choose a true Nil Excess within the policy.”

Paul continues “The great thing about our policy is the Accidental Damage to buildings is included as standard and therefore the cost of adding Malicious Damage is minimal yet so important. Malicious & Accidental Damage is also available on Contents insurance and is a must for any landlord wanting complete protection”.

Additionally, the survey also confirmed that 30% of landlords said they are looking to increase their rental property portfolio in 2013.

It’s quite clear landlords want to protect their rental properties with quality and they do this because they don’t want to lose profit gained from the rental income.

Richard Lambert, CEO of the NLA, said:

“Every landlord should thoroughly reference a tenant prior to offering a tenancy; this is standard best practice which safeguards the landlord’s business. Tenant checks should include not only an identity check, as suggested, but also whether the tenant has any County Court Judgments, possible aliases and include references from their employer and a previous landlord. Such checks should highlight any immigration irregularities.

“However, local authorities must undertake robust, intelligence-led, targeted enforcement, otherwise illegal immigrants who are refused housing by reputable landlords will face homelessness or be pushed straight back into arms of the criminals who deliberately exploit vulnerable people”.

The full response can be found here.

source: arla.co.uk

Paul Pearce, Let Alliance Sales & Marketing Director comments ‘Illegal activities like cannabis farms causing damage are covered provided the landlord has chosen our Malicious Damage by Tenant option. The news highlights some devastating costs when it comes to cannabis farms, so why take the risk? For a small increase in premium landlords should seriously consider Malicious Damage cover. Not every product provider supplies such cover… I am very pleased to say Let Alliance does’.

Pearce continues ‘I read another article within ‘Landlord Buy & Buy-to-Let’ magazine (Nov 2012) which saw the Association of Independent Inventory Clerks (AIIC) stating drug factories are on the increase across the UK and not just inner-city. They stated that Kent police had found an increase of more than 50% in home-grown cannabis farms between 2008 and 2011’.

Cannabis farm fire costs ‘naive’ landlord thousands

* Source: www.mortgagesolutions.co.uk Date: 29th April 2013

A landlord faces up to £60,000 of repairs after a tenant’s secret cannabis farm went up in flames.

Web developer Obi Ljeoma thought he had rented his Cardiff property to four tenants and was unaware it was instead being used to house cannabis plants, Wales Online reported. While the cause of last week’s blaze is still being investigated, firemen found amateur electrical wiring alongside a large number of cannabis plants.

Ljeoma did not have insurance on the property and has estimated it will cost thousands of pounds to fix the gutted house.

He said by giving the tenants his only keys to the property it had difficult to keep regular checks on the occupants: “The rent kept coming in regularly, so I thought everything was fine. I now realise it was pretty naive of me.”

“I’d like to warn other landlords to keep a close eye on their properties, because you never know what could happen.”

When he signed the latest lease the tenant had told him four people would be living in the property. There had been no signs of trouble for eighteen months.

Four-fifths of mortgage brokers expect to see growth in the buy-to-let market this year, according to research compiled by Blemain Finance.

Its poll of brokers and introducers found that 83% of those questioned expected to see growth in the buy-to-let market in the next 12 months.

By comparison, just 44% expected more business from the first-time buyer sector in the next year.

When asked about what sectors had provided an increased level of business in the last six months nearly half of respondents (45%) said that buy-to-let had performed best, followed by secured loans (39%).

Gary Bailey, sales & marketing director at Blemain Finance, said: “There’s no doubt that any recovery in the housing market will be a gradual one.

“We’ve already seen a number of leading indices recording a much anticipated return to house price growth, although still only small increases at this stage.

“The findings from our own survey show that more and more borrowers feel able to invest in buy-to-let as well as utilising equity in existing property. This is perhaps an even better indication of confidence returning to the market.”

The scheme, which also produces rent guarantees, has been launched by Let Alliance. The tenant pays £50 and the agent gets a £24 referral fee.

Boss Andy Halstead emphasised that the scheme is not a dodge to get round the ban on fees, but a solution that works within the new system.

However, asked if there was concern that the likes of Shelter might legally challenge the scheme, Halstead – who has taken his own extensive legal advice – did not rule this out.

He said, in answer to our question: “Quite possibly. But we are ready for them.”

Halstead’s legal advice says that the ban on fees was originally legislation drafted 15 years ago, before tenant referencing even existed as a concept, and was designed to stop landlords getting round rent control measures that now no longer exist.

However, the ban on fees was tightened up in the legislation and came into force last November 30, leaving agents wondering how to foot bills for services such as tenant referencing and inventories.

Some tenants producing their own references might, for example, go to Experian for a credit check, or indeed use the Let Alliance scheme: there is concern that tenants could, in law, ask for their money back, and could even launch legal action to reclaim their fee.

Notwithstanding this threat, Let Alliance has gone ahead with its launch. Crucially, agents are being advised that they cannot insist on prospective tenants using the new Let Alliance scheme. Instead, they are being advised that they can only give tenants the choice.

The new scheme aims to deliver to landlords comprehensive tenant referencing, a way for tenants to be accepted for homes without having to undergo the hassle themselves of sorting out their own referencing, and generate an income stream for agents. Agents also get rent guarantees for tenants who meet Let Alliance’s referencing criteria.

If prospective tenants do opt do use the scheme, the referencing reports will be delivered simultaneously to the agent and tenant, with the tenant being charged directly.

If they choose not to, then a new Let Alliance guide shows them what they will need to do to complete the process independently.

However, Halstead says that the referencing process is in practice onerous and Let Alliance’s experience throughout a four-month trial shows that most tenants would prefer to pay a fixed fee and buy an efficient service.

He said: “Self-referencing is very complex, difficult and time consuming. It is a nightmare for tenants that Let Alliance takes away.”

Halstead, founder and CEO at the business, said: “I am very close to the letting agent marketplace in Scotland and have many friends and associates whose businesses have had a tough time dealing with the legislation that stops agents charging tenants for services that they need.

“At Let Alliance we have made it our business to help in every way that we can. Our new proposition gives tenants valuable choice and support and an outstanding service whilst reducing the administration burden on agents’ businesses and allowing them to earn a valuable revenue stream from us. Everybody wins.”

The Scottish experience in the aftermath of the fees ban is being watched closely elsewhere in the UK. While a ban seems unlikely, the Office of Fair Trading wants to see fees set out in a clear tariff up-front, and the Advertising Standards Authority has ruled that fees must be clearly shown alongside the asking rent in all adverts for rental properties.

Source: www.mortgagesolutions.co.uk

Chris Norris, head of policy at the National Landlords Association, gives an insight into landlords’ concerns over Universal Credit.

Universal Credit, which will be piloted from April 2013 and subsequently rolled out from October, is the government’s solution to the UK’s unsustainable benefits bill.

The new system will combine almost all benefit entitlements into one monthly payment and will cap the benefit amount paid to each household at £26,000 per year.

This differs from the status quo, where housing costs alone have, until recently, been able to exceed this, irrespective of any other entitlements.

Despite the inevitable impact on some landlords, particularly in London and the South East of England where rents are much higher than the national average, this capping effort is broadly accepted by landlords who are fed up of being incorrectly labelled as a parasitic drain on public coffers courtesy of a few very high profile (and high value) housing benefit claims.

The issue which has many landlords very concerned is the lack of provisions, or mechanisms in place for when things go wrong with a claim.

Currently the Housing Benefit Regulations, of which there are a considerable number, stipulate very clearly that if a tenant fails to pay their rent for eight weeks – having received state support to do so – the landlord may request direct payment.

Furthermore, local authorities are able to negotiate with landlords and tenants, arranging direct payment in return for the continuation of a tenancy or a more favourable rent. It is essentially a win-win situation. The landlord is able to reduce his or her risk of non-payment, in return the tenant is able to agree a slightly lower rent and the local authority has avoided unnecessary homelessness.

We have presented this case to the Department for Work and Pensions (DWP), but have yet to see any practical acknowledgement of the dangers of increased arrears.

This is a major concern for the NLA, because beyond the risk that landlords will lose confidence in their tenants’ ability to pay under Universal Credit, there is the very real possibility that lenders will lose confidence in their mortgagors.

The problem which Universal Credit will create is twofold:

1) It will become harder to identify a household in receipt of housing support. Universal Credit will be paid like a salary, a one monthly payment encompassing many different entitlements. In many cases, it will also support those working and receiving a regular salary, which begs the question: “What circumstances represent a breach in lending covenant?”

2) Without an automatic mechanism to ensure that rent arrears cannot exceed two months, the risk of default leading to non-payment of a mortgage will become too high for lenders to continue to turn a blind eye.

It seems that many landlords are already acting on their concerns and choosing to move out of the Local Housing Allowance (LHA) market. In fact, the NLA has found that landlords letting to LHA tenants have fallen 6% since Q3 and just 29% of landlords now let to LHA claimants. And the introduction of Universal Credit is still eight months away.

The net result will be landlords choosing in greater numbers to avoid benefit recipients of any kind wherever possible and lenders further tightening their lending criteria to prevent exposure to what is sure to become a subprime market.

If the government wants to see the private-rented sector continue to take the strain of housing welfare recipients there are a number of issues which must be addressed to ensure that investment is viable and we do not see the development of an exploitative sub-prime market.

The NLA hopes that the government will respond to our requests to guarantee regular rental payments to landlords if a tenant defaults after two months and to ensure Universal Credit is linked in market rents before its rollout. The NLA also asks that mortgage providers look to lend to landlords of all tenants, irrespective of where they derive their income.