More companies in “financial distress”
Insolvency specialist Begbies Traynor is reporting a 24% increase in the number of companies facing “critical” levels of financial distress in the fourth quarter of 2011 compared to the same period in 2010.
Many key sectors of the economy faced significant rises in critical financial distress, including:
Automotive – 14% increase
Construction 13% distress
General retailing 13%increase
Professional services 61%increase
Travel and tourism 56% i9ncrease
Of particular interest to landlord insurance clients will be the result for “Property Services” where a 30% increase in critical financial distress was found.
Even the South East of England is not immune to the general malaise. The Red Flag Alert shows that there was a 33% year on year increase in critical distress in this area of the country. In London the figure was 19%.
Few will be surprised to see that the retail sector fared so badly. Small/medium sized retailers were hit particularly hard. Landlords of small shops are often between a rock and a hard place. If the tenant defaults and moves out the landlord normally has to pick up the business rates. This means that for many landlords it is better to charge no rent as long as the tenant will pay the rates.
Begbies Traynor is a rescue, recovery and restructuring specialist. They publish their Red Flag Alert each quarter to provide a benchmark of “company distress”.
World Snowboard Championships Set To Begin in Norway
For those who don’t already know, the World Snowboarding Championships are soon to kick off in Oslo, Norway, where the cream of the world’s snowboarding community will be heading in February 2012.
But as well as a host of snowboarders who have established themselves in the world of snowboarding, there will be a few wildcards among the contenders, which were selected in early January.
Of all the riders heading to the Norwegian capital, 5 come from the US, while Great Britain, Russia and Norway each send 4 riders to the competition.
The event is not to be confused with the FIS Snowboarding World Championships: this event has been set up only by snowboarders. The Oslo Winter Park (Tryvann) has been substantially upgraded in order to host the event. The world famous Holmenkollen Arena will also host some heats.
If you’re thinking of heading to Oslo for the championships, it’s handy to know that children under 12 get a 50% discount and under 6s get in free. Tickets cost between NOK 100 and 250, exclusive of booking fee. And if you’re considering doing a bit of snowboarding yourself in the Oslo area, don’t forget to take out ski travel insurance before you go!
Surveyors say house sales activity firm
The Royal Institution of Chartered Surveyors has published its 2011 UK Housing Survey. The main findings are that activity remained relatively firm during December and an increasing amount of new stock came on to the market.
The average number of completed sales per surveyor in the three months to December was 15.2. This is slightly down on the figure for November but is still close to its highest level since the autumn of 2010. Surveyors say that some sellers are asking unrealistic prices, which may be hindering sales.
New instructions edged up for the third consecutive month. However, the RICS survey supports other commentators who say that prices continued to fall across much of the UK. This may not be very be good news for those unoccupied property insurance clients who are thinking about out putting their property on the market this year- unless of course they own a house in London where the surveyors believe prices rose in December.
Most people seem to think that the market will be pretty flat in 2012 because of worries about the Eurozone and the UK economy. If you are thinking about selling an empty house this year you might like to take a look at the RICS survey- go to www.rics.org
Swapping Your Home for the Holidays
The challenging economic conditions in the UK at present mean that many Brits are looking for cunning ways to save money. As is so often the case, luxuries are the first to go – and pricey holidays would fall into this bracket.
One way to save some money is to swap your home – temporarily that is. Many families are starting to discover the possibilities offered by swapping their home with other families, in lieu of an expensive getaway. While it is true that those who live in more glamorous locations will be able to do this more easily, even if you don’t live in the most exciting city, you may be near special facilities such as indoor ski centres, 3D cinemas, unusual museums, beaches or national parks.
While the notion of swapping your home on a temporary basis for a holiday is more popular in the United States than the UK, interest is picking up here too.
Those who own a holiday home could also benefit from this idea – especially since they are likely to be located in a very desirable location. Be sure, however, to check with your holiday home insurance provider before you go ahead with any swap.
Making Your Home Look Occupied
While the reassurance offered by an unoccupied property insurance policy is something that the majority of landlords take advantage of if they have a vacant property, there are nevertheless many tactics that can make a building appear inhabited or used – thus reducing the risk of having to make a claim.
Investing in some basic furniture and placing it in positions that can be seen from the ground floor windows is an effective way of giving the impression that someone is still living in the property. In addition to this, putting a lamp on a timer helps make the property look inhabited – although if the property remains vacant for many months you should bear in mind the differences in sunset times, and adjust the timer accordingly.
An overgrown garden is a big clue that a property is vacant, so paying to have it mown – or doing it yourself – regularly is a good idea. Making sure post does not build up is also important, as burglars, vandals or even squatters look for such signs.
There are many other imaginative ways of making a property look occupied – such as asking a neighbour to park their car on the driveway, adjusting curtains and re-arranging garden furniture. Depending on the specifics of your property, you may well come up with your own way of making your property appear used and deterring unwanted guests.
House prices in 2011
Mortgage lender Halifax has published its House Price Index for 2011. The main points are that in the final quarter of 2011 prices were 0.1% below the figure for the previous quarter. Between November and December prices dropped by 0.9%
For the year as a whole house prices dropped by 1.3% which means that the average house was worth £160,063 at the end of 2011.
Halifax believe that if the UK can avoid recession house prices should be reasonably stable in 2012. However they point out that there is uncertainty regarding the prospects for the UK economy. Their housing economist Martin Ellis added “The extent to which households chose to reduce their debts will also affect growth. As a result, the outlook for house prices is also uncertain”.
If you are one of our landlord insurance clients you will probably have mixed feelings about these figures. If you bought a buy to let for cash several years ago you are probably sitting on a tidy profit. Equally, if you have borrowings your interest rate is probably quite low. The people who will be suffering are those who for various reasons are forced to sell now, in a very difficult market.
The National Association of Estate Agents has a view on the Halifax index. The Association believes that there is no such thing as a national housing market in the UK. Instead, they say it is a “landscape of micro-markets”. Their Chief executive Peter Bolton King says: “even towns and cities have micro-markets across different neighbourhoods”. This shows how careful you have to be if you are thinking of buying a let property – doing your research is absolutely crucial.
Taking Due Care When Leaving Your Holiday Home Empty
While taking out a holiday home insurance policy is something of a must for those who own a second home, some property owners are unaware that a certain degree of due care is required for the policy to be honoured. While the precise terms and conditions of each policy can differ, most – or all – will contain some wording that stipulates the owner must do certain things in order to reduce the likelihood of any damage taking place.
With harsh winter weather in the offing, bearing this in mind is especially important. Below are three areas that can lead to an insurance provider claiming negligence on the part of the owner:
Owners that leave their property unheated and/or their water supply on when temperatures are -15C or lower.
Owners who decide to turn off their heating and leave the water supply on when they vacate their property because they do not have much heating oil left.
Owners who do not take the time to inspect their properties before and during particularly cold temperatures; straight forward precautions can prevent burst pipes and thus prevent damage from occurring to a property.
While this list is certainly not exhaustive, it is a reminder of how important it is to read the terms and conditions of your insurance policy – particularly before you are about to leave your property empty during the winter.
If you need a quote for second home insurance contact click4quote.Com Insurance
Environmentally Friendly Drain Cleaning Methods
Environmentally Friendly Drain Cleaning Methods
No matter if you have a buy to let insurance policy or one of the many other policy types available, there are still some dirty jobs that as a landlord even your insurance policy can’t help you with. A blocked drain is one of those jobs.
For many landlords, there is usually only one solution for a blocked drain – industrial chemicals. But as more and more landlords are finding, you don’t need to use potentially dangerous chemicals for simple blockages. There are in fact a number of far less toxic ways of clearing a blockage.
Baking Soda Drain Cleaner
If the drain hasn’t reached the stage where water has backed up the pipe, try pouring a cup of baking soda (bicarbonate of soda), swiftly followed by 3 cups of boiling water. The heat of the water will change the chemical composition of the baking soda, with the ultimate effect of making it more alkaline. If the drain doesn’t clear straight away, repeat the process a few more times.
Vinegar and Baking Soda: The Bubbling Method
When vinegar and baking soda are combined, gas is created; lots of bubbling and fizzing. This reaction can help to unclog blockages. As with the baking soda technique, add the baking soda, the three cups of boiling water – and then the vinegar.
Enzyme Drain Un-blocker and Rubbish Disposal
Natural living enzyme drain cleaners break down organic matter. It’s a good idea to use such an enzyme cleaner roughly once a month – as well as cleaning the drain it will also reduce unwanted smells. Colonies of enzymes will remain in your drainage system, breaking down matter as and when it passes through the pipes.
The above are widely known/used and click4quote.com do not accept any liability whatsoever for their use.