A survey by The Deposit Protection Service (The DPS) found 62 per cent of landlords had broken the law by failing to register with any of the schemes.

Since April 6 2007, every deposit-taking landlord and letting agent in England was legally required to use one of two tenancy deposit protection methods: a custodial or insurance based scheme, for any new or updated tenancies.

After interviewing hundreds of landlords from across England and Wales, the DPS found 62 per cent of landlords had not registered their deposits, 18 per cent were registered with the DPS, 14 per cent with other schemes and six per cent were not aware they had to register.

Kevin Firth, client services director for the DPS, said: “These figures are staggering. What is particularly shocking is that when asked, landlords were willing to openly admit that they were flouting the law, either by design or through ignorance.

“Fifteen months after legislation was introduced, there is no excuse for failing to properly protect your tenants’ deposits. Landlords need to understand that failing to register a deposit is quite simply an unlawful act. There are no two ways about it, and ignorance is no defence.”

The DPS works by holding a tenant’s deposit, free of charge, for the term of the tenancy agreement. At the end of the rental period, the deposit, and a portion of the interest it has accumulated, is paid back to whoever is entitled to it. The remaining interest is used to fund the service.

Under the legislation, landlords who fail to register a deposit face being fined up to three times the value of the deposit and losing their eviction rights.

The DPS sends confirmation of a protected deposit direct to a tenant. If tenants are unsure if their deposit is protected they should ask their landlord for evidence.

New research conducted for the Association of Residential Lettings Agents (ARLA) found that the combined worth of all privately rented property in the UK is £500billion. This figure is higher than the total value of all the commercial offices, shops, factories, warehouses, hotels and leisure facilities in the country.

Despite some recent falls in the value of residential property, it seems those who have entered the rental market for investment purposes have reaped the rewards.

The report also predicted a bright future for buy to let, with rents set to rise by between ten and 15 per cent in 2008 and 2009.

According to the report, this trend was part of a stabilising effect the buy to let industry was having on the housing market. Over recent years, there were accusations that buy to let investors were snapping up homes that would otherwise go to first homebuyers. But the report suggests that the availability of more rental accommodation means young buyers won’t face a repeat of the negative equity situation of the early 1990s.

Ian Potter, ARLA head of operations, said: "It was a result of the appalling effects on young owner occupiers last time that ARLA took the initiative and launched buy to let to re-build and re-finance the private rented sector and to mitigate the dreadful social consequences of housing boom and bust. It has proved to be remarkably successful."

Figures from the report suggest that not only is buy to let proving valuable, it is providing an important service to those wanting a place of their own but are not keen to buy.

Results of the survey by money website Fool.co.uk showed that half of homeowners would consider a sale and rent back scheme if they faced possible repossession of their property.

And around 50 per cent of those surveyed would consider one of the schemes if they could no longer afford their mortgage.

According to the survey, many people have a low level of understanding about the schemes - 26 per cent of consumers thought they could remain in their home for as long as they wanted to, while 15 per cent thought they would be paid the full market price for their property.

One in 10 people also said they would still consider one of the schemes even if they did not get the best price for their home and might have to move within a year.

Sale and rent back schemes involve companies that buy homes from people who face having them repossessed and then rent these homes back to them.

But the rapidly growing sector has come under fire recently, with claims that some companies pay less than 60 per cent of the market value for properties, while others levy steep rent increases and some even evicted people after just 12 months.

In May this year, the Office of Fair Trading announced was investigating the sector following concerns that consumers were not properly protected.

Fool.co.uk said it was calling for all sale and rent back schemes to be regulated.

Donna Werbner, property expert at Fool.co.uk said: "The allure of such schemes to people facing repossession is understandable.

"However, I would urge anyone considering doing this to do their research. Much of the information out there is misleading and by the time you find out the truth, it could well be too late to change your mind.

A study of 4,000 British workers undertaken by Travelodge found that estate agents got less than six hours sleep a night – two hours less than the recommended daily sleep quota.

Leigh McCarron, Travelodge’s Director of sleep said: “It is no surprise that the professions in the industries worst hit by the credit crunch come top of the charts. We all know that money worries and job security are key drivers of stress which in turn, leads to significant sleep loss.”

It would seem the stress of the current market slump and money worries on the whole were contributing to sleep deprivation right across the UK workforce, according to the survey.

After estate agents, lorry and taxi drivers were also missing out on a good nights’ sleep, with bankers coming in third at just six hours and 23 minutes of sleep per night.

Of those surveyed, 78 per cent said they would love to get more sleep if they had the time and 52 per cent of workers have taken time off work or spent their weekends catching up on sleep.

“Don’t let the credit crunch keep you awake, it’s a vicious circle. Although you may fret about your job and have financial worries; you cannot afford to sacrifice your sleep quota. Losing valuable hours of sleep will certainly impact upon your well being and productivity,” Mr McCarron said.

Ten Greater Manchester authorities and 13 housing associations have joined up to launch the choice based lettings scheme pilot called Pinpoint, making it easier for people to move from one local authority area to another.

Councillor Akhtar Zaman, Bolton Council’s executive member for regeneration, said Pinpoint was flexible, improved access to housing and offered people across Greater Manchester a greater choice in deciding where they wanted to live.

"You can search specifically for the type of property you’re interested in and find out more information about the local area you’re thinking of relocating to and the services available. If you want to move from one area to another, it’s a simple way to do it,” said Councillor Zaman.

It is the largest choice-based lettings scheme outside London and would allow people registered with their local housing scheme to move to any other housing scheme within the region, if it was advertised through Pinpoint.

There is no need to register separately with each landlord, as customers just need to be registered with one of the Pinpoint partners to gain access to the properties.

The service is web based and all available properties are advertised online at www.pinpoint.org.uk.
Individuals can express interest in properties through the site but criteria, such as household makeup, for each property must be met.

In order to place bids on a property, people must acquire a reference number from the Pinpoint landlord they are registered with, which will enable them to log onto the site.

The scheme has been funded by Department of Communities and Local Government, the ten Greater Manchester authorities and the housing associations involved in the scheme.

Knight and Frank’s Bricks & Mortarboard Student Accommodation Review ranked Edinburgh above other parts of the UK including the whole of London, Newcastle, Birmingham and Manchester.

Drew Oswald, managing partner at Knight Frank Scotland, said: “As one of the UK’s biggest university cities, it’s no surprise that Edinburgh scored top marks in the review. Edinburgh has fared well due to a continuing demand for student accommodation in the city. The opportunity to create high-density developments and lower unit costs mean that the provision of student accommodation is an attractive investment opportunity.

“Combined with a good product and a lower risk profile, the student accommodation sector is attracting more and more informed investors and developers to Scottish cities such as Edinburgh.”

The student accommodation sector presents an attractive alternative opportunity for investors, especially with student accommodation predicted to outperform most other property sub-sectors over the next three years, with predicted annual total returns of 12 per cent.

These encouraging figures came as a result of a predicted rise in total student numbers and rental levels in privately operated halls – where student population could go up 2.9 per cent per annum and rents by 4.5 per cent per annum.

Average weekly rents for student accommodation increased to £82 in 2006/07, up from £67 in 2003/04, and represented an average annual increase of 5.2 per cent.

The Knight Frank Student Accommodation Investment Index was launched in locations with more than 20,000 full time students, and of the 24 UK locations which held high potential growth showed that in addition to the London markets, Edinburgh offered one of the strongest opportunities for prospective investors.

Statistics from the survey showed that 54 per cent of landlords thought demand would rise as void periods fell to their lowest level since 2005.

Significant growth in the need for rented properties comes as house prices begin to fall, resulting in less buyers willing to make a purchase and mortgages becoming scarce due to the credit crunch.

John Heron, managing director for Paragon Mortgages, said: "We have consistently said buy to let had strong counter-cyclical qualities and we are now seeing concrete evidence of this.

"Potential home buyers are postponing purchasing decisions because they either feel uneasy about the current market or they simply can't get a mortgage, so they are renting."

Demand for rental properties was also strong among students, immigrants and people that choose to rent as a lifestyle choice.

"This is putting an increased strain on the private rented sector's stock," Mr Heron said.

"It is likely we will see void periods continue to fall over the coming months and yields continuing to rise as demand for rented accommodation grows."

The average void period per year is currently at its lowest level since the first quarter of 2005 at 2.7 weeks, and has been falling since the second quarter of last year.

Meanwhile, Paragon's monthly Buy to Let Index showed that yields in May reached their highest level since February 2006.

"The private rented sector is playing an important role in filling the UK's housing gap in the current market. With fewer properties being constructed as developers cut back, demand for rented property is likely to be strong for the foreseeable future," Mr Heron said.

But Mortgages for Business, specialists in buy to let mortgages, said that new procedures would only reflect and reinforce measures that many lenders had already put in place.

At present, only a small group of buy to let lenders will lend on new-build properties, and these companies already have stringent measures in place to ensure the buy to let mortgages on offer reflected the true property valuation.

Jonathan Moore, head of marketing at Mortgages for Business said: "There is currently an oversupply of new-build apartments, particularly in city centres, leading to concerns over property valuation and achievable rents. This has meant already cautious lenders are increasingly refusing to lend to this property type."

The CML measures were designed to restore lender and investor confidence in an area of the buy to let market which has suffered in terms of property valuation and availability of finance, and which has also seen a significant downturn in investors' interest.

"It seems unlikely that buy to let lenders will offer new-build mortgages in short term until there is an upward trend in sector activity," Mr Moore said.

"Investors should be wary of discounts and guaranteed rents because a property should be attractive without the need for additional incentives.

"Successful portfolio landlords who are still active in the market tend to buy existing properties in areas they know well and have extensively researched. Properties in up and coming areas or where there is an underlying reason for capital and rental uplift provide the basis of a solid investment strategy. It is essential not judge the buy to let sector by performance of new build property."

New research by auction experts Essential Information Group and auctioneers Allsop , showed prices of new-builds in city centres had plummeted, with many sold for a fraction of their value.

The study looked at new-build flats sold at auction between January 2005 and February 2008.

It found that the value of the average new-build flat had plunged by 26 per cent.

Only 20 of the 535 flats sold at auction, which were typically ‘distressed sales’ such as repossessions, were sold for a profit.

Among those being hardest hit were investors who had not saved any money into a pension, but planned to use the flat as their retirement nest egg.

A three-bedroom flat in a Belle Vue Road development in Leeds was bought for £237,999 in March 2006 but recently sold for just £71,000 - a drop of 70.17 per cent.

In another case, a one-bedroom flat in Melbourne Street, Newcastle upon Tyne, was bought for £142,800 in May 2006 and sold at auction this month for £78,000 – just over half the original price.

David Sandeman, managing director of Essential Information Group, said there were hundreds of similar disasters happening across the country.

“We are at a stage where there are now flats which are completely unsaleable. In many cases, the flats have been repossessed after the owners failed to meet rising mortgage costs.

“People believed all the hype and the marketing that they would be able to rent out their flat for £1,200 a month to a professional couple. But they could only actually get £800 a month renting it out to students who have trashed it.’

Mr Sandeman said the situation was likely to have worsened since February.

According Route Group, the wealth advisors, buy to let investors should consider their tax position even if they have no sold the property in question.

Simon Pimblett, head of research and development at Route Group, said, “Given current market uncertainties surrounding residential property, and the increased costs of mortgage finance, some smaller landlords are looking to call it a day on their buy to let investments and sell up.

“While this might mean that they are facing fewer liabilities in the short term, if they have not declared the rental income on these properties, they could still be facing a significant legacy tax bill in addition to any capital gains tax (CGT) charges," he added.

Research released by the Money Centre found that the buy to let investment market was experiencing an severe slump and 48 per cent of landlords were concerned over the future of the sector.

"HMRC has started to focus strongly on the issue of undeclared rental income and now has the technology to track down those who have 'overlooked their obligations'," continued Mr Pimblett.

"HMRC can now cross-reference information from the Land Registry, stamp duty records and property agents’ records with taxpayers’ self assessment to identify culprits.

"Should they believe a landlord has not submitted the correct returns, they have the right to request detailed income and expenses statements for the last six years."

"Therefore, we recommend that all landlords, get their records in order – prior to an unwanted letter or phone call from their local tax office, who will not only claim back what is owed but could also impose interest and penalties," he concluded.

A report called “The Future of Renting” was handed to housing minister Caroline Flint at the recent British Property Federation (BPF) annual conference.

The report came in response to the government review of the rental industry, and called for a major overhaul to the housing market to ease the burden of a property shortage.

Ian Fletcher, residential director at the BPF, said, “We’re in a ridiculous position where we have increasing demand yet house builders are stepping out of the market because they have nobody to sell to”.

He suggested that if the UK had a corporate rental sector similar to the one in Europe, it would mean continued investment into the sector and thousands of new homes.

“It would also ensure that the major house builders had someone to sell their stock to and that the public had the benefits of a branded rental sector,” he added.

The credit crunch has put a stop to expansion of the buy to let market and developers want a housing sector that mirrors the commercial property market. This would result in long-term lets and thousands of new family homes built by institutions, like pension funds.

Liz Peace, chief executive of BPF, said, “Caroline Flint has shown acute awareness of the situation and is clearly keen to work with the industry. The government has a great opportunity here, because councils already have the powers to do what is needed.

“The expansion of buy to let is dead for the time being and the only place we will find the kind of cash we need to build new homes is with the large, long term investors. Rental is up to 40 percent cheaper than ownership, but if ministers don’t take action, we could see rents rise by a third and cost the same as mortgages.

Under the new legislation, landlords without an EPC cannot market their property to prospective tenants.

Leaders, the letting specialist, has urged all landlords to understand what is required so they are not delayed in the marketing or letting of their property - which could result in a costly void period.

Carole Charge, technical and compliance director at Leaders, said, ““From October 1, private landlords offering a property for rent will be required to show prospective tenants an EPC which will detail its energy efficiency rating.

“The EPC must be given when any written information about the property is provided or when a viewing is conducted. In addition, it must always be handed to the actual tenant at the commencement of the tenancy.”

The EPC rates the energy efficiency of a property from A–G. The certificate also offers recommendations on how to make a property more energy efficient.

“It is not compulsory to follow the recommendations but tax savings and grants are available to landlords for improving energy efficiency, for example: installing a self-condensing boiler; fitting energy saving light bulbs; improving roof, cavity wall and floor insulation; fitting thermostats to control radiators and hot water cylinders; and installing double glazing,” Ms Charge said.

“We believe that as tenants become more aware of EPCs, and begin to make comparisons between properties based on their energy efficiency ratings, those that are more energy efficient will be easier to let.”

Scotland remained the best performing area of the market, and experts predicted it would stay that way for some time.

Simon Rettie, managing director of property firm Rettie and Co, said the majority of Scottish people who considered making moves within the market would "do the safe thing - which is nothing".

While this could lead less people to risk making a property purchase, it could also result in plenty of first-time buyers looking to rent rather than buy for the time being.

One negative point from the survey was that the average house rental was down seven per cent in the last quarter and flats down nine per cent. ARLA suggested this was due to the influx of new two-bedroom apartments onto the market.

However, Ian Potter, ARLA head of operations reassured that even this was not such bad news.
"In many places this has had a positive effect as it has allowed the rental market to provide stability in housing at a time of volatility in the sales market. It also demolishes the myth of soaring rent levels."

So this marked improvement in rental affordability could have been caused, in part, by a small correction after the major surge in rental levels. Also leading to speculation that this was not a downturn in the market was the fact that demand is still rising.

The survey also found that during the first quarter of 2008, 39 per cent of agents said demand for rental accommodation had outstripped supply, where London and the south-east showed the most significant deficit of supply in the country.

ARLA said this was clearly the result of the credit crunch, as increasing numbers of people found it harder to get on the housing ladder due to rising mortgage rates and increased deposits.