First let me dispel the myth that buying a house with twice the number of bedrooms means the property is going to cost twice as much. That isn’t always the case, and once the deposit, bills and maintenance costs are factored in (and shared out!) it can actually make real financial sense to go down the route of joint ownership.

It could also, in theory, present an opportunity to generate some additional income. It isn’t necessary for both homeowners to live at the same property, allowing for a second bedroom to be rented out. This might work well for homeowners looking to invest in further property outside of London, where house prices might be significantly lower than the capital.

Joint ownership isn’t without its obvious challenges, which is why it’s important to iron out any potential issues before you even think about searching for your purchase – You will lead different lifestyles, have different tastes and habits, and more importantly have different levels of money to spend on a property. Ensuring you can both afford to buy and maintain a house is paramount.

It might seem too formal and over the top to consult with lawyers, but estate agents will always recommend this when a co-ownership contract is involved. You have to think about the worst possible scenario so that should it all fall through or the circumstances of the other person involved changes, that you can rely on the contract to establish where you each stand. A verbal “trust” arrangement just won’t cut sadly in what is one of the biggest business transactions you’ll ever make in life.

Researching the right mortgage for your new purchase is a must. There are deals available out there specifically for this kind of arrangement so it’s worth shopping around for the best one. It is even possible to get a mortgage nowadays by applying under a joint wage, allowing you to attain a loan of higher value.

Ensuring all documents are kept in the names of each of the co-buyers and that these are accessible to all parties is a must. Similarly, it’s good idea to open up a house account to handle day-to-day maintenance costs and other monthly utility bills. This should avoid the finances becoming the sole responsibility of one owner. These simple steps should help to keep things transparent, open and honest.

In his second Budget address since the Coalition government formed last year, George Osborne announced a number of measures to kick-start the property market that has, for some time now, suffered from a loss in consumer confidence. But from a sales perspective, the breaks offered seemed to concentrate solely on first time buyers. The NAEA has long been a supporter of this very important part of the market, but it is generally accepted that the ‘squeezed middle’ have endured some of the toughest financial pressures following the recession, with Ed Miliband even admitting last week that the current problems had their roots in the previous New Labour government. The plan to focus spending on new build properties for first time buyers rather than incentivisation policies which could positively impact the housing market more widely was, in our view, ill-conceived. It represents little more than a gesture from the government, decreasing any chances for much-needed upward momentum in a market that is still in the tentative stages of recovery.

The decision to review Stamp Duty, an issue our Estate Agents Association has vigorously campaigned for during recent years, is a step in the right direction but the Treasury has as yet failed to take a closer look at the structure of the tax, even when a growing consensus within the housing market is calling for a shift from a slab to slide system.

However, the change to the rules for Stamp Duty on bulk purchases is welcome news for ARLA letting agents. Traditionally, this tax has been an obstruction to much-needed institutional investment into the private rented sector, where other countries have seen significant financial injections. The private rented sector plays a critical role in the housing market and this change should help to encourage institutional investors into the market. Similarly, the proposed changes to REITs could help boost investment in property.

From an NAEA perspective, we applaud the decision to overhaul planning laws, and believe the change of property use could free up unused commercial property, injecting much-needed supply into the market, at a fraction of the cost of a new build property.

Nevertheless, none of these measures outlined will have the impact desired without the Coalition first overcoming the substantial capital barriers that are currently restricting property ownership. No-one wants to see the housing market stagnate this year and our latest market report for February shows there’s great potential for growth, with slight increases across demand and supply. So while assisting first time buyers is very important, more needs to be done to support the wider market.

A key component of the Government’s strategy to fulfil the challenge is the Energy Bill, which contains measures to increase the use of renewable technologies and improve the energy efficiency of all types of housing tenures, under the Green Deal.

The Government’s aim is for every UK property that has an Energy Performance Certificate (EPC) rating of F or G to be improved beyond that grading, which may be a significant challenge for older properties.

The Green Deal will encourage private sector landlords to take advantage of up-front financing to make their properties more energy efficient.  For those landlords who don’t comply, the Government may introduce regulations to force landlords to improve their properties in 2015 should a tenant request work to be carried out.

ARLA believes that landlords should take a proactive approach towards energy efficiency, as it will not only save money and help the environment, but it may also prevent landlords from having to pay a large sum at once in order to comply with the regulations.  Landlords can already take advantage of a tax allowance of up to £1,500 for a variety of energy efficiency improvements through the Landlord’s Energy Saving Allowance (LESA).

There are many funding choices out there making the installation of simple green measures a much more affordable option for landlords under certain circumstances.

Tenants in rental homes are also likely to become more aware of the importance of energy efficiency as bills continue to rise.  It is in landlords’ best interest to attract people seeking properties to rent by improving the energy efficiency of their stock.

Ian Potter,

Operations Manager, The Association of Residential Letting Agents (ARLA)

The fallout from the economic downturn of the previous three years coupled with the Coalition Government’s current fiscal constraints has hit the property market hard. It is precisely because of this economic and regulatory upheaval that we chose to launch this scheme, which will see the number of qualified agents increase significantly within the UK.

In addition to this, the growth in the online market for property transactions presents a significant future challenge to the traditional agent in terms of customer retention. We recognise the importance of speaking face-to-face with an agent with good local experience of the area. In order to ensure that this can continue, we believe that a licensing scheme is needed to set the customers’ mind at rest in a process that requires a lot of trust.

In the past, the actions of a few unethical and unqualified estate agents have unfortunately affected the image and reputation of the honest majority. We see accreditation as the best means for dealing with this whilst at the same time recognising the hard work that our agent members go through in taking NAEA qualifications and ongoing development training. A large number of estate agents in the UK have no qualifications and limited experience, but there are no barriers to restrict them trading – we want to show to the house buying and selling public that there is a difference.

It is important to understand that this scheme has been a long-time in the planning, and that for years, the NAEA has lobbied consecutive governments to introduce further regulation to the market. Having exhausted this option, we decided that an industry-led regulatory policy would be the best way forward, and the Coalition government have supported us in our efforts.

The reaction to the launch by some industry pundits, though, has been disappointing with some implying that the scheme has been created to serve only as a way for the organisation to make a profit. This is simply not true. The administrative costs involved in setting up and maintaining the licensing system are inevitable and unavoidable.

I think it is important that we focus on the principals upon which the NAEA was founded back in 1962. Raymond Andrews set up the body when there was no representation for the industry with a commitment to ‘upholding good practice and high professional standards in UK estate agency.’ This is what we remain committed to doing today.

This unwillingness to relax lending restrictions looks likely to remain in place during 2011, particularly in light of the MMR. As the effects of the coalition government’s deficit reduction plans begin to be felt across many different sectors, and not least the property sector, more and more people hoping to get a foot on the housing ladder will have to offer higher deposits upfront to secure a mortgage as the banks look to cut down on their exposure to risk.

We are in the tentative stages of recovery at present, and the property market is still fragile. But as the situation improves, a key issue house hunters will face is the emergence of ‘postcode power’.  As demand for properties for sale in some areas helps to boost the housing market on a local-level, the inverse reaction will occur in less desirable parts of the UK thereby increasing the disparity between the two. Ideally, UK estate agents would like to see the housing market growing equally across the country to ensure its stability and enable consumers across the country to own their own homes.

The NAEA doesn’t anticipate a widespread drop in house prices in 2011. We are unlikely to get the sudden plunges that occurred during 2008 and 2009 but expect a mixed picture with enquiries fluctuating month-on-month as a backlog of pent-up demand for property emerges.

Of course, the key to the success of the housing market next year lies in the decisions made by the major institutions and influential figures within Government. The FSA, the Housing Minister Grant Shapps and, most importantly, the banks, all have a part to play in ensuring that transactional activity doesn’t seize up, and that confidence is restored.

In particular, we hope to see the removal of stringent bank restrictions on mortgage lending and a positive decision by the Monetary Policy Committee on interest rate levels during this year. The NAEA recognises the need for a reduction in the UK’s deficit, but this shouldn’t come at the expense of the UK property market, to which the aspirations and finances of so many families are inextricably linked.

This shortage of rental homes is likely once again to be an issue 2011 because of the broader issues of diminishing housing supply. There does seem to be a rise in so-called ‘reluctant landlords’ – homeowners who have to let homes they cannot sell – meaning new rentals have become available but nowhere near enough to cater for the demand out there.

Next year is also likely to see increased numbers of local authorities introducing selective licensing, enabling them to monitor and regulate local landlords. Yet this is an ineffective and inconsistent method of regulation, which fails to deter rogue activity. Far better would be a national licensing programme –similar to ARLA’s own licensing scheme – which would provide a consistent way of protecting both landlords and tenants rights and monies. Our scheme also means consumers are protected if a letting agent folds – which is far more likely in a post-recession climate. In the absence of a national regulation scheme, we’d urge landlords and tenants alike to only use an ARLA agent.

During 2011, and as long as the dearth in homes to rent lasts, it is also likely that tenants will have to make bigger compromises over the kind of rental homes they opt for. Our research shows that in many parts of the country, there has been an increase in family homes coming onto the market because they can’t be sold. At the same time, the industry is reporting a lack of family homes being built or sold, in the South East especially, meaning the ‘best fit’ home may not always be available.

Unless mortgage lending is relaxed to enable more first time buyers onto the ladder and to increase movement around the housing market, 2011 is set to every bit as challenging as 2010, with many people struggling to find a property to rent.

Despite the Land Registry painting a somewhat rosier picture after it announced an average house price rise of 0.3% on Wednesday, the overriding sentiment is that the demand for property (especially amongst first time buyers) is not being met by mortgage availability.

The NAEA has long fought for tighter regulation within the industry to protect buyers and sellers involved in the house buying process. But by implementing the severe regulations proposed by the FSA on mortgages, this will impose more pressure on the beleaguered property market.

The Coalition has been quick to impress upon us all that the era of ‘living beyond ones means’ is no more. And, therefore, there has been a push for deficit reduction and responsible lending on the part of the banks.

However, mortgage availability is critical in trying to avoid the property market from seizing up entirely. Furthermore, the FSA’s proposals come at a time when there have been calls from the general public for the banks to start lending, particularly now that they are making profits again.

Some might argue that the drop in the average number of registered house hunters we reported in August (falling 292 in July to 250 in August) represents a reduction in demand. This reduction in activity is typical market behaviour for this time of the year, although we have also noted that the difficulty in securing a mortgage is forcing many into rented accommodation.

There remains strong, underlying confidence in property and it is time that the government, and the FSA recognised this. While we recognise that responsible lending is an important part of the government’s strategy to avoid another financial crisis, we risk the chance of the market stalling again with the current strictures in place – let alone with further regulation.

Irresponsible lending does need to be addressed (and on the whole has been so) but the plans currently under consideration are, in my opinion, a step too far.

The PRS has absorbed a large number of property owners who have chosen to rent property between purchases, done so to free up equity or simply those who can no longer afford to keep their own home. But it’s not just the economic situation that has seen the sector’s role increase over the past few years.

Buy-to-let investment has become much more popular, higher education opportunities have led to a surge in student numbers and UK immigration levels have risen – all of which are contributing factors.

In June, I highlighted the importance of the PRS in supporting the housing industry – it now represents over 13% of current housing stock levels in the country according to recent government statistics.

A newer study, carried out by CB Richard Ellis reports even further growth within the sector, estimating its worth to the UK economy to be approximately £500bn. For an industry that is outperforming the country’s entire commercial property sector, one might assume that a real effort was being made to support this now thriving market. However, the demand from consumers has not been met by support from the Government.

Despite the PRS accounting for over 20 per cent of new build stock, this is still not enough to cater for this ever-growing sector. Our own quarterly survey in July revealed that almost three quarters (70%) of ARLA member offices said that there are more tenants available than rental properties – up from 59 per cent in the last quarter. The coalition government’s continued Capital Gains Tax (CGT) policy, which levies a tax on those purchasing a second home, works only to burden current small-scale landlords and discourage others from investing.

Clearly, the £500bn quoted demonstrates that the sector is capable of achieving great things. Maybe now it is time for institutional investors to stand up and see for themselves the opportunities that the residential lettings market can offer.

I happen to agree with the CB Richard Ellis report, which argues that given lower capital values and stable rent payments, the PRS represents a good return on investment. And a significant cash injection would help to drive new residential housing supply too.

As Government efforts have been minimal and so far largely inhibitive (they have refused to introduce compulsory regulation to the sector, for example), large-scale investment from institutional landlords is required, working alongside smaller, experienced landlords in the marketplace. These small investors and tenants already benefit from ARLA’s consumer redress and client money protection schemes, and only through this partnership can we create a more healthy industry sector.

Renting property offers flexibility to tenants at a time when mortgage availability is still very low. As demand for rental property will continue to expand, and with market conditions still favourable to landlords, there has never been a better time to invest in the PRS.

ARLA agents will happily disciss market demand and potential rental figures using their extensive market knowledge. The Propertylive.co.uk and ARLA website both have a link to ARLA mortgages which offer a choice of the currently available market products to suit investors’ needs.

While the National Association of Estate Agents echoes these calls, the Government must get tougher in order to get more money into the mortgage market. Indeed, despite a doubled profit for the last six months of £7.2 billion, HSBC increased its mortgage lending by just 3% and has already made clear that it would be unwilling to follow government-set lending targets.

In order to secure a mortgage, buyers still require a seriously hefty deposit, which explains why the steady increase in the numbers of house hunters registered at NAEA branches has not translated into increased mortgage lending and house sales. Mortgage providers are continuing to ration the size of their loans to home buyers and those remortgaging.

Additionally, only 8% of deals are currently available to borrowers with 10% deposits, and these come at the price of significant interest rates and strict lending criteria, resulting in the decreasing loan approval rates we are seeing now.

Certainly the lack of mortgage finance is a huge factor in the recent housing market reversal. However, a recent Bank of England report suggests the situation is not going to improve in the short-term.

The increase in the Stamp Duty threshold earlier this year went some way to helping first-time buyers, but many in the current mortgage climate are still put off by the deposit that first-time buyers need to find. In light of this, we will continue to urge the Government to consider a US style First-Time Home Buyer tax credit incentive to further stimulate the housing market.

We also welcomed Grant Shapps’ announcement to retain and refocus the mortgage rescue scheme, which is a vital safety net for homeowners struggling to meet mortgage repayments, despite the drive for austerity. Nevertheless, the strict eligibility requirements of the scheme at present, means only a small number of households have received assistance. We await with interest the full impact of these changes.

The new Government must consider the issues affecting the whole spectrum of people within the housing market when looking at ways to foster a recovery in the property market. A recovery seriously threatened by the ongoing lack of mortgage availability.

Throughout the recession, the PRS helped to support a stagnated housing market where many homeowners were forced to rent a property either as a stop gap between purchases, or following a job relocation change or job loss. Now, according to government statistics, the PRS represents more than 13 per cent of UK housing stock – some three million people – making it a sector that can not be ignored.

The planned rise of 10 percentage points to 28 per cent in Capital Gains Tax (CGT) for higher-rate tax payers may not be as severe a blow as anticipated, but is still inhibitive to the industry’s growth. It represents a substantial increase in the costs involved with the purchase and sale of second properties let to tenants, and will almost certainly lead to a drop in investment. Some landlords will simply not be able to afford to survive in the buy-to-let market, while other potential landlords will be put off from entering into it.

PRS investment has also been hindered by the Government’s recent decision not to press ahead with compulsory regulation of letting agents. Regulation would have been both reputation enhancing and standard-boosting, with greater controls to reassure existing and potential tenants and landlords alike, ultimately boosting investment.

It is therefore a great shame that the progress ARLA made under the previous administration has since been ignored. Anyone can become a letting agent, or landlord – regardless of experience or qualifications, leaving consumers exposed to financial risk.

We believe a dual approach is required if the current problems of the housing sector are to be addressed. If difficulty in obtaining mortgages continues, the role of the PRS will become more and more integral to the recovery plan. It therefore makes sense for the Government to support the property rentals industry in the same way it has promised the aspiring homeowner.

Introducing more stringent regulation into the buy-to-let sector would represent a big step in the right direction, enabling significant investment into the industry. Equally, categorising landlords as businesses would exempt them from CGT, further encouraging investment and professionalising the industry. Without these kinds of measures, the sector is likely to suffer – as will its consumers.