As new figures from the financial outsourcing experts at HML indicate that terraced houses are set to account for four out of ten repossessions across the UK during 2011, Belvoir Sheffield, the leading letting agents in Sheffield is warning landlords that any style of home could be repossessed without the correct tools to do the job.
The new report follows an analysis of 320,000 live mortgage accounts, from which, HML has forecast UK repossessions geographically and by property type, with London topping the charts.
With tenants having to contend with the rising cost of living, employment uncertainty and Government cuts, many landlords are suffering void periods, which inevitably lead to missed mortgage payments and finally repossession.
Rick Flay from Belvoir Sheffield, which specialises in providing flats to rent in Sheffield said: “These figures are extremely interesting because here at Belvoir Sheffield, we have seen a decrease in the number of properties being seized and the numbers of landlords suffering void periods.
Earlier this week, HML’s chief commercial and finance officer, Neil Warman said: “Our forecast shows terraces and flats across the UK are generally more at risk of repossession than detached and semi-detached homes.
“This trend isn’t new; terraces and flats tend to be the property of choice for first-time buyers and lenders understand granting mortgages to people who haven’t had one before is riskier than lending to someone with an established track record.”
Rick, whose lettings agency helps those looking for property to rent in Sheffield, continued: “It is important to consider independent research when looking for a buy-to-let property but I am a firm believer in the fact that any property can be repossessed if you fail to protect yourself, expand your knowledge and seek professional advice. I would hate to think that this new report is convincing those landlords who do not own terraced houses to think that they are in some way ‘safe’ from repossession and non-paying tenants.
“Steps can be taken to protect yourself from defaulting tenants. At Belvoir Sheffield we have been able to keep our rental arrears extremely low compared to the national average and the reason for this is that that we conduct excellent tenant checks. Prior to a tenant moving in, Belvoir Sheffield run credit checks, get references from current employers and from past landlords, for all parties who intend to move into the property.”
“In addition to the steps taken to reference all tenants who wish to rent property in Sheffield, we also recommend that all of our landlords then purchase Rent Protection Insurance as a back up. This covers the landlord against non-paying tenants if they were to lose their jobs unexpectedly or if they were to fall ill, causing them to default.”
Belvoir Lettings Agency in Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs, Investment Property Insurances and Mortgages
