LETTINGSnews
FINANCE
New lender launches for property investors
Slow funding decisions from traditional lenders are either delaying or stopping property
investors getting better deals on purchases, says a new niche lender
www.propertyinvestorloans.co.uk. The newly-launched service promises to speed up funding for experienced property investors by providing finance within 24 hours. The size of loan available ranges from £30k up to £3m and is secured on residential and commercial property. Chris Baguley, MD of
propertyinvestorloans.co.uk, said, “Experienced property investors know that having cash available to offer a vendor quickly can help get a better deal. We’ve developed this loan facility to enable property investors and developers to be more entrepreneurial in their approach to vendors and to help them be in a position where they are able to guarantee funds in
DEPOSIT PROTECTION Deposit Disputes – issues and solutions
Disputing tenants and landlords in the private rental sector still have more to learn
about the adjudication system that resolves their deposit disputes without going to court. This lack of understanding can lead to undue perceptions of bias and unfairness in the system – which a new guide to the process is designed to help eradicate. Internal surveys by the
Tenancy Deposit Scheme show that a high proportion of those who have used Alternative Dispute Resolution have found the process easy. “Where problems can exist is with the outcomes. This is because adjudications are not like a hearing in court where parties to a dispute can follow the process,” explained Steve Harriott, Chief Executive, TDS. Feedback from tenants and
60% of tenants and 84% of agents are happy
landlords shows that 60 per cent of tenants believe the outcome to be fair and 84 per cent of all letting agents are satisfied with decisions. This
high percentage may reflect a better understanding among professionals of the principles and methods of the adjudication process. Now, a new guide “The
Progress of a Dispute” covers the way to take a dispute to adjudication, the information required and the time it is likely to take to resolution. Steve Harriott commented,
“The levels of satisfaction we are achieving with adjudication are heartening and we shall keep up with our various education programmes. The success we have been having points the way to using Alternative Dispute Resolution in other areas of the housing sector. Issues such as rent arrears and disrepair could benefit from this approach.” The Progress of a Dispute
can be found on the TDS website:
www.tds.gb.com
CODE OF PRACTICE
TPO consults on CMP insurance
The Property Ombudsman Scheme (TPO) is canvassing member firms over the provision
of Client Money Protection (CMP) insurance.
“Whilst membership of TPO
time for completion. “We know that slow funding
from traditional lenders hampers transactions for purchasers and in many cases means that property investors either pay over the odds or the vendor prefers another buyer with cash available. Property
investors who have told us that this is what is required in order for them to generate better returns and boost deal flow.” The product has been
developed in partnership with Bridging Finance Limited, an experienced national lender.
requires all residential sales and letting agents to abide by the TPO Codes of Practice, have Professional Indemnity Insurance, and agents holding clients’ money to deposit this money in a separate clients account, it does not currently require residential letting agents to hold CMP,” explains Bill McClintock, chairman of the TPO operating company who is circulating a consultation document to members. “Given that the Code of
Practice is generally accepted as the primary standards document in the industry, the omission of such an important aspect needs to be addressed. “This is something the board and the Ombudsman, Christopher Hamer, have been considering for some time and recent incidences of both landlords and tenants suffering financial loss means action on CMP is now imperative. Private residential lettings reportedly make up 17 per cent of the UK housing stock.”
The consultation paper sets
out various options and points out that members of ARLA, NALS, and RICS are required to have CMP. Some letting and management companies acting as subcontractors also provide CMP on all landlord and tenant funds. McClintock is asking TPO members which of these options, or an alternative fallback position that all TPO member firms without CMP must disclose it in writing and actively flag its absence at the point of instruction or sale of services, they would prefer to see enforced through the TPO Lettings Code of Practice.
PROPERTYdrum AUGUST 2012 49
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