Our new website is designed to provide visitors with information about our company and services in an easy-to-navigate format.

Tenants are able to access property availability 24 hours a day and communicate immediately with us to request information and viewings.

This newsletter has been included to keep property owners and tenants updated about relevant changes and new developments in the market. John Ford believes 'that the use of the Internet by businesses is still in its infancy in the UK, our increased presence will ensure that we continue as one of the leading management companies in Portsmouth, Hampshire and West Sussex areas'. If you have any comments or require assistance, please let us know.

Insurance Costs Rise for 2002

Building insurance premiums have risen rapidly since the autumn of 2001. In recent times, the UK insurance industry has experienced a very high level of claims; this has had a cumulative effect, with high storm damage and flood claims during 2001 leading to significant rate rises which then resulted in large premium increases. Coupled with the continuing shockwaves of the September 11th terrorist attack, the insurance market is hardening which may lead to further global insurers amalgamations taking place. The biggest example in the UK was Norwich Union and the CGU (previously General Accident and Norwich Union). We have had quoted increases in premiums, anything from 15% to over 300%! Do not however, accept increases without question.

If you have a good claim record we may be able to help you reduce your costs. Please contact us for details. Are you covered!

• Full buildings insurance, engineering
• Public and employers liability
• Residential rental guarantee policies
• Landlord and tenants contents cover
• Tenants rent protection schemes

New Legislation Affecting Flat Owners and Freeholders April 2002

The new Common Hold and Leasehold Bill received Royal Assent on 1st May 2002. Some provisions will take effect immediately whilst some elements will be subject to consultation over the next year or so. The act includes a number of groundbreaking provisions which will greatly strengthen the rights of flat leaseholders to determine how they wish to operate the management and influence service charge expenditure. For example, flat owners will now be able to collectively take over the management of their block on a no fault basis, which will have implications for flat owners and freeholders alike. Overall we expect this to have a positive effect, some flat owners will wish to change agent or manage themselves, others may come to the conclusion the current management arrangements are satisfactory but could be improved e.g. through improved communication and liaison between the agent and themselves. Further information on the legislation can be obtained from www.lease-advice.org.

The management of blocks of flats must be considered as a long-term arrangement; a partnership between owners and the agent to manage at economic cost without compromising standards. The choice of agent is a key appointment to make this a reality. It is important to know the managing agent has the proper resources and expertise to carry this through on a long-term basis. Ford Property Services has invested heavily in the infrastructure; this includes appropriate use of technology, sufficient staff resources, good organisation and procedures. Regular inspections and repair follow up programs are particularly effective so that management is seen to be getting things done in a timely manner. If you want to know why people tell us we do it better, please contact us (023) 9261 0240 or visit our conveniently situated office. On street parking is available.

Has the 'Buy to Let' Bubble Burst?

The simple answer is 'no'. But this does not mean everything is well! Caution should be exercised when purchasing property in current strongly rising market. To avoid expensive mistakes careful consideration should be given to buying at the right price, and making the right choice of property, to ensure steady rental demand and good prospects for growth in rent and capital values. The market for rental accommodation is still showing signs of growth despite the strong presence of first time buyers purchasing. Projections predict that there will be an increasing number of new households created over the next 20 years; some of this will inevitably be for rented accommodation.

Is 'Buy to Let' still a good investment opportunity? Can gains still be repeated? For example clients of ours investing in 2 bedroom terraced houses in 1999 have seen capital gains of £30,000 per property over the last 3 years. The answer to these questions can only be a forecast based on evidence available.

Over the last 30 years the underlying capital values of residential property has consistently grown, as have rents. This is despite temporary downturns in property values and stagnant periods. Property prices in the residential market tend to increase if the affordability test is favourable (a multiple of average incomes) and overall confidence in the economy is present. The present position is that gross rental yields (or % returns) to owners have fallen from around 9%-10% over the last 2/3 years to 6%-7% or less today. Higher yields can be available but this is usually at the expense of potential capital growth. If the market continues to expand at the present rate with property prices still rising, yields could fall to levels where it is uneconomic to buy to rent e.g. Rents will not service loans. Overall rents over recent periods have not been increasing as fast as property prices, which may prompt some selling of property for profit taking on the capital gains. This may help reduce the supply side in the short term allowing improved rental growth. However an important consideration for all 'property investors' is that property should be looked at as a longer-term investment usually over a minimum 7 - 10 year period. This usually ensures any short or medium term 'hic-cups' in the market is taken account of.

Our conclusion is there could be some form of correction in the market in the short term. This should not dissuade potential investors buying providing this is for the longer term. Take advice as to the type of property to purchase and develop a realistic expectation of the net returns you require. The potential of higher interest rates and profit taking could increase supply of property available 'softening' prices over the next few months. The latest research report from the RICS covering the period to April 2002 indicates letting demand from tenants is holding up well (which we would confirm) albeit at a slower pace. However, London has seen a dramatic decline in tenants and lettings, this is put down to a reliance on corporate lets which accounts for around 30% of the market. The demand for accommodation offering a good standard of facilities and maintenance at the right rental is always strong. It is a question of making the right choices!

Ford Property Services act for numerous small and large owners and are experienced in helping owners grow their portfolios. If your property returns are not as high as you expected we would be pleased to review this for you. Single properties to entire portfolios reviewed. We may advise you to buy or sell certain properties to improve matters. A verbal or a formal report and action plan can be provided. Costs will be credited to you upon receipt of management instructions to look after your portfolio.

Please let us know if we can help.

Improved Standards of Service to Meet Growing Expectations Hit or Miss?

As one of the leading providers of Residential Management Services in Portsmouth and South Hampshire a constant improvement plan is necessary to provide clients with class leading services at competitive cost.

Managing Director, John Ford, advised "that the foundations for future business success and service improvements have to be laid well in advance". For this reason each year we allocate a development budget to improve the business and service in all its aspects.

For 2001 the following investments were made:

• Refurbishment of the letting floor with the introduction of high quality displays - Please visit, no appointment necessary.
• New cabling infrastructure installed throughout the building to allow for future development information technology, net working, Internet and telephony integration. "Communication and integration of IT applications will be very important over the next 10 years".
• Recruitment of two additional staff members to supplement existing team. Welcome to Laura Baggott (Lettings) and Gill Pullen (Property Management).

For 2002 the following is proposed:

• New telephone system  with call management facilities to aid measurement of service delivery and make it easier for you to speak directly to your contact. Installed July 2002.
• New web site see this newsletter for information. Launched July 2002.
• SMS Text messaging service is now available to provide up to the minute information about new homes to let. Launched July 2002.
• 2 way SMS Text messaging is currently being evaluated. Please let us know if you think the ablility to 'Text' us would be a useful service to introduce.
• Introduction of electronic brochures (Autumn 2002).
• Further staff appointments in line with planned expansion (Autumn 2002)
• Improved staff training provision. including membership of IRPM ( Institute of Residential Property Management )

New management instructions always welcome

We are able to look after large or smaller blocks of flats, estates or small portfolios of rented property as well as individual flats/houses.

The notice for new instructions can be short where immediate action and attention is required. For the larger instruction it is preferable that some notice can be given to allow proper planning and allocation of resources. We can begin working with you before handover, which will aid a smooth transfer. You provide the instructions we will do the rest.

Ford Property Services are members of the following organisations:

1. Association of Residential Managing Agents
2. South East Chamber of Commerce
3. Portsmouth and District Estate Agents
4. Royal Institution of Chartered Surveyors ( J C Ford)
5. Property Services Training Organisation