National Empty Home Loans Fund (NEHLF

Decent and affordable housing stock may be unleashed onto the market thanks to the spectacular success of the National Empty Home Loans Fund (NEHLF).  Just a month into its existence and it's already received enquiries for funding worth over Ј1m - more than six months' worth of expected activity.

The fund is a joint initiative between the charitable and private sectors, and central and local government.  It provides access to secured loans of up to Ј15,000 at a fixed 5% interest rate for owners of empty properties who want to renovate their property to 'Decent Homes' standard.  Loans are available to anyone aged 18 and over who owns a property that has been empty for six months or more.

The NEHLF is one of the outcomes of last year's Great British Property Scandal, spearheaded by broadcaster and architect George Clarke.  It aims to bring back into use some of the 710,000 homes in England which are currently empty.

Work has already started on the first property to benefit from the fund; it will be let as affordable housing. The house in Blyth, Northumberland, had been empty for two years before the owner received a loan of Ј12,000 in September.

Once all those dilapidated houses are refurbed and ready to rent, one of the most important tasks for a landlord is to check the references of potential tenants.  A survey by tenancy referencing firm Legal 4 Landlords claims that more tenants are successfully passing such checks this year compared with last (74% versus 68%).  Another encouraging sign is that the number of applications that need to be backed by a guarantor has also gone down over the same period (from 25% to 20%).  

The firm attributes the improved pass rate to the sheer growth in demand for rented properties, enabling landlords and agents to be more selective from the outset.  Spokesman Sim Sekhon says: 'This development is great news for landlords and agents who can cherry-pick the best tenants'. 

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