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Em

Em Morley

New investment portal launches

Published On: May 29, 2015 at 2:17 pm

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Categories: Landlord News

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With the buy-to-let sector now thought to be valued at £1 trillion and showing little sign of slowing down, now seems to be a great time to take advantage of the buoyancy of the market.

As estate agents, landlords and developers look to capitalize on the perceived market gains, the release of dedicated investment property portal Buy2Let.com today seems to be perfectly timed.

Unique

The new portal, thought to be the first of its kind, will be populated with thousands of different property investment listings, each generated from some of the most well-known agents in the industry. These include full-service agents Leaders, Northwood Uk network and East London providers Stirling Ackroyd.

In addition, the portals exclusive partner Bamboo Auctions will be able to offer instant, chain-free purchase opportunities, alongside offering live auctions of investment property.

As a result of spiralling buy-to-let volumes and in light of the new pension reforms, now seems to be the optimum time for agents to entice buy-to-let investors. These could be either first-time or seasoned investors, or those looking to cash in their pension funds.

New investment portal launches

New investment portal launches

Perfect partner

Founder of Buy2Let.com, Martin Wilkinson, said that the portal is, ‘designed to be the perfect marketing partner for agents to reach investors directly and encouragingly, it seems our panel of forward-thinking early adopters already recognise us as such.’ He continued by saying that, ‘we appreciate that some agents and developers simply don’t have the time to dedicate to the investment market and we know that the current property portals simply do not cut it when it comes to marketing to investors-they are designed to sell solely to the owner-occupier market.’[1]

Wilkinson went on to say that, ‘alternatively, Buy2Let.com provides the crucial pieces of information that investors need to make a purchasing decision – uniquely, the portal allows them to search for and identify opportunities by annual rental yield, as well as categorising each listing as vacant, instant rental – or tenanted, and HMOs. No other portal offers this level of insight or comparison, because they are not intended for the buy-to-let property investment market.’[1]

Concluding, he pledged that, ‘we are confident that our portal will prove to be a vital resource, both to agents and investors, especially at a time when the market is thriving. We will continue to work with estate agents, developers, and corporate landlords, to source and list genuine buy-to-let investment properties, providing selling agents with an unrivalled direct marketing outlet, and investors with a dedicated resource of property investments and analysis of the market.’[1]

 

[1] http://estateagentnetworking.co.uk/2015/05/28/buy2let-com-launch-opens-investment-doors/#.VWgiqmNytWw.twitter

 

 

Half of Hopeful Buyers Disappointed After MMR

Published On: May 29, 2015 at 1:19 pm

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Around half (45%) of those planning to buy a home since the Mortgage Market Review (MMR) last year have been unable to do so.

Research has revealed that prospective buyers are confused about the Government’s new affordability rules, which has caused disappointment.

A quarter of survey respondents said that the MMR has affected their ability to buy a property, and a further third (37%) claimed that the changes have made them feel less in control of being granted a mortgage.

The study was conducted by Experian as part of its latest report, The Mortgage Muddle – One Year After the MMR.

Half of Hopeful Buyers Disappointed After MMR

Half of Hopeful Buyers Disappointed After MMR

The research also found that among those who could not buy since the MMR, many are still unaware of the basic financial preparations they must make to apply for a mortgage. Almost half (46%) have never checked their credit report, meaning that they do not know how a lender would assess their ability to repay the loan.

Head of Consumer Affairs at Experian, James Jones, says: “Preparation is the key to successfully navigating the mortgage market post-MMR. Understanding the affordability rules and how a lender makes their decision is the key to success.

“But it can take time to build a positive credit history and a solid track record of positive money management, so it’s important you start preparing as soon as you make the decision to buy.”1 

In another study by Experian from April 2014, only 44% of respondents knew that the MMR would make lenders more careful about making sure borrowers could afford their repayments.

A year later, it seems that this confusion is still affecting hopeful buyers. Of 1,500 respondents who either bought or planned to buy in the past year:

  • 62% did not know that lenders might require higher deposits. 23% thought they could have smaller deposits than before.
  • 37% were unaware that lenders would be more careful about whether borrowers could afford the loan.
  • 15% thought that lenders had relaxed their lending criteria due to the MMR.

Of those unable to buy in the last year:

  • 13% don’t know how much money they have left over at the end of the month.
  • 18% don’t know how much they can afford in monthly repayments.
  • 14% did not have a large enough deposit for the property they wanted to buy.
  • 12% could not secure the size mortgage that they needed.
  • 11% of those who were unsuccessful didn’t know why or didn’t ask the lender, putting them at a disadvantage when they look to be accepted in the future.

ExplaintheMarket’s Guy Shone, notes: “We’re now one year on from the MMR and it seems many people remain stuck in a bit of a muddle. More needs to be done in 2016 to encourage personal financial planning and properly support aspiring home buyers, so that all buyers fully understand the rules of the game and stand the best chance of securing a property they can afford.”1

1 http://www.propertyreporter.co.uk/property/half-of-prospective-property-buyers-disappointed-in-year-since-mmr.html

 

Half of Students Think Rent is Good Value for Money

Published On: May 29, 2015 at 12:23 pm

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Around half of students (49%) think that their weekly rent is good value for money, a survey by Glide Utilities has found.

The tenant study also discovered that the average rent for students is £95 per week, unchanged since 2014.

Glide Utilities conducted a report, What Students Seek, which revealed that three quarters of students are satisfied with their shared accommodation, however, this has slowly decreased year-on-year.

Half of Students Think Rent is Good Value for Money

Half of Students Think Rent is Good Value for Money

Additionally, 66% of respondents said they have had problems with the way their property is managed.

One of the biggest issues for students was a lack of communication, with 29% of students complaining of this. A fifth have also experienced intrusive or unannounced visits and inspections, with 39% reporting a lack of response to maintenance problems. Poor property upkeep was a concern for 28%.

Glide Utilities’ research also surveyed student landlords and letting agents, revealing that 15% are worried that they will not let all their student properties by the start of the next academic year.

The report also found that students are seeking more comfort from their private rental accommodation. Over half would like a double bed in their room and a third want an en-suite.

However, practicality is still incredibly important to students. A huge 83% put fast internet access as a priority and good storage is important to 72%.

Furthermore, the report found that some students are focusing on their studies rather than socialising. Over half said it is very important to live close to university and 31% find good transport links necessary.

CEO of Glide Utilities, James Villarreal, says: “The secret to gaining student appeal in 2015 is definitely more is more. While the majority of students are satisfied with their accommodation, we can’t ignore the fact that this figure is gradually falling. This isn’t because conditions are slipping, necessarily, but that student expectations are rising.

“We’ve see this in our own business and have made changes to keep attracting more customers. Our findings highlight exactly what students seek when it comes to private rented accommodation, and will help landlords and agents make the right practical changes without breaking the bank.”1

1 http://www.lettingagenttoday.co.uk/breaking-news/2015/5/half-of-students-say-rent-represents-good-value-for-money

Zoopla Reports 10% Rise in Revenue

Published On: May 29, 2015 at 11:42 am

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Zoopla Reports 10% Rise in Revenue

Zoopla Reports 10% Rise in Revenue

Property portal Zoopla has reported a 10% increase in revenue, despite losing around a quarter of its advertisers after website OnTheMarket launched and impaired Zoopla’s one other portal policy.

Zoopla is still the second biggest property portal in Britain after Rightmove. The company made 13% more from each advertiser in the six months to the end of March, taking its revenue to £42m.

Pre-tax profits increased by 12.4% to reach £18.4m.

The amount of estate agents advertising on Zoopla dropped from 16,261 to 12,449 in the year to the end of March. It lost another 106 in April.

Just last month, Zoopla announced that it had bought price comparison site uSwitch, in an attempt to create a wider business moving into other home services.

Chief Executive of Zoopla, Alex Chesterman, says that Zoopla had “a strong first half, despite the reduction in members.”

He adds: “Since the end of the period, UK agency churn has slowed significantly. We expect agency churn to return to normal historic levels over the coming months.

“We are confident that the number of agents returning to us [from OnTheMarket] will accelerate in the coming months.”1

1 http://estateagentnetworking.co.uk/2015/05/20/revenue-rises-at-zoopla/

Tenants want their own Government minister

Published On: May 29, 2015 at 11:31 am

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A new survey has found that tenants would be in favour of appointing a Government Minister, who would be responsible solely for tenancy issues.

Majority

The latest First Time Buyer Opinion Barometer from Your Move and Reed Rains asked tenants whether they thought that there should be a Minister with specific responsibility for tenants. A majority of 60.2% were in favour of such a move, with just 14.9 stating that they thought it was a poor idea.[1]

Additional results showed that more people were resigned to renting for a longer period of time. Tenants were asked when they felt they would be able to get onto the property ladder, with just 11.2% replying that they felt this would be within the next 12 months. 13.1% of people asked went as far to say that they felt they would never be able to own their own home, up from 11% in April last year. [1]

Raising money for a deposit was found to be the main detractor from tenants getting their own home, with 70.8% replaying that this was the main reason for them continuing to rent [1]

‘Disproportionately disadvantaged’

Adrian Gill, director of Your Move and Reed Rains, commented that, ‘tenants feel that their particular circumstance deserves special representation at the heart of government.’ He feels that the, ‘younger generation have been disproportionately disadvantaged by the recession, with many stuck in lower paid roles, unable to progress their careers at the same pace as the previous generation.’[1]

Continuing, Gill said, ‘at the same time, savings rates have been stuck in the doldrums, meaning any money they have been able to put aside hasn’t been working hard for them. Saving for a deposit has become much more arduous. Rising prices have also pushed up the amount many need to save in the first place, adding insult to injury. This means many tenants trapped in rented homes during the recovery are still playing catch-up.’[1]

‘What will be interesting to monitor is whether such an initiative would cause a drastic change in the way we view renting in the UK. If the flexibility of renting, which most people see as a bonus, can be combined with the stability and reassurance that a Minister for Tenants could provide, it could create a golden formula that makes renting a better long-term, as well as short-term, option for many individuals and families.’[1]

Pipe-dream

Owning their own home remains the goal for the majority of tenants. However, economic strife is making this just a pipe-dream for many in the present climate. Unsurprisingly, when asked if they would want their own home if financial restrictions were not a factor, 93.4% of tenants responded positively.

When asked when they saw themselves moving into their own home, the responses from tenants were more widespread. Just 11.2% were confident of owning their own home before the end of the year, with 48% saying the expected the process to take at least five years. 27.5% said that they were unsure over any timeframes.[1]

Tenants want their own Government minister

Tenants want their own Government minister

The survey also found that more homeowners are looking further afield to ensure a first footing on the property ladder. 39.5% said that they would move over 10 miles from their workplace in order to become home-owners.[1]

Gill commented that, ‘Vast numbers of tenants possess the will to own their first home, but not yet the means.’

‘For many, homeownership is more of an aspiration than a concrete objective. Yet it may not be as difficult a dream to realise as many believe. Yes, rising house prices – and this month is no different in that sense – mean that the requisite mortgage becomes bigger, pushing up the amount of deposit a first-time buyer needs to put down. Yet there are a number of government schemes in place to ameliorate that problem, both Help-to-Buy schemes to start with. The uptake of these has been relatively low, suggesting that if tenants got more clued-up about the help available, that aspiration would be more likely to become an attainment.’ [1]

First-time encouragement

Encouragingly, statistics reveal that there were 25,600 first-time buyer completions during April 2015. This was 11.3% higher than in March and 33.3% up on the final quarter of last year. Furthermore, the average property price of first-time buyer properties was up 10.6% on twelve months ago.[1]

Gill concluded by saying, ‘April has seen the market continuing to fire on all cylinders, with all indicators showing strong growth. Predictions about a slow-down, or even sudden halt, to completed transactions due to lack of housing appropriate for first-time buyers have proven premature for now. However, the inexorable rise of first-time buyer house prices does suggest that the demand for such properties is still outstripping supply and the Government’s reticence to fully overhaul the planning system will not alleviate that crush.”

 

 

[1] http://www.propertyreporter.co.uk/property/tenants-demand-their-own-government-minister.html

 

Value of Buy-to-Let Could Reach £1 Trillion

Published On: May 29, 2015 at 10:59 am

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Value of Buy-to-Let Could Reach £1 Trillion

Value of Buy-to-Let Could Reach £1 Trillion

It has been predicted that the overall value of the buy-to-let market could hit £1 trillion in the near future.

The Council of Mortgage Lenders (CML) revealed that the total worth of the sector reached £990 billion in 2014 and is expected to continue increasing.

This value has grown 70% since the financial crisis of 2007.

The overall worth of residential property was £4.8 trillion last year, with £1.8 trillion belonging to homeowners and £990 billion to buy-to-let investors.

Landlord loans were also the fastest growing sector of the mortgage market, however, the scale of buy-to-let borrowing relative to investors’ asset worth was fairly minimal.

The amount of landlords with buy-to-let loans is very low, with just 19% of the whole property market accounting for these mortgages. Of the £990 billion total, almost two thirds (£643 billion) is mortgage-free.