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Em Morley

The Nottingham refreshes BTL mortgages

Published On: May 12, 2015 at 12:38 pm

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The Nottingham Building Society has become the latest firm to launch fresh buy-to-let mortgage options for its customers.

Refreshed deals

Hot on the heels of rates announced yesterday by Leeds Building Society, The Nottingham has today introduced six new buy-to-let mortgage deals.

The deals, which all come with a free home valuation, include a fixed rate five-year 4.09% product, up to 75% LTV. This comes with a £299 booking and £700 arrangement fee. Additionally, a two-year fixed 3.09% mortgage, again with a £299 booking fee and just a £200 booking fee is also available.[1]

The Nottingham refreshes BTL mortgages

The Nottingham refreshes BTL mortgages

 

Deputy Treasurer at Nottingham Building Society, Chris Gardner, stated by, ‘the run-up to the General Election saw the UK markets weighed down by uncertainty as opinion polls put the two main parties neck and neck. With the uncertainty now lifted we are taking the opportunity to refresh our buy-to-let products. The range of fixed rate buy-to-let mortgages now includes a new, lower loan-to-value range, whilst the rate and fee on the existing five-year fixed at 75% LTV have been reduced.’[2]

Gardner believes that, ‘these will help borrowers who require budgeting certainty, as whilst the Government have pledged to fix the term of each parliament to five years, the Bank of England cannot offer the same commitment for bank rate. Whilst bank rate has remained unchanged at 0.5% for six years, the markets are currently pricing the first rise early next year.’[3]

[1-3] http://www.propertyreporter.co.uk/finance/btl-mortgages-revamped-at-the-nottingham.html

 

New remortgage products for HTB tenants

Published On: May 12, 2015 at 11:33 am

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Homeowners who utilised the Government’s Help to Buy scheme have been buoyed with an announcement from Leeds Building Society.

The Society has launched two remortgage products specifically aimed at buyers who used the scheme to purchase their property. After being the first lender to allow remortgage applications from Help to Buy homeowners, the firm has now extended its range.

New rates

The additional products are a two-year fixed rate Help to Buy product at 2.44% and a five-year fixed-rate deal of 3.14%. These new products are available up to 75% LTV and arrive with fees assisted legal services for standard remortgages.[1]

Alongside these new deals, Leeds Building Society still over their existing Help to Buy mortgages, which are available for remortgage and also home purchase. The deals are:

A two-year Help to Buy mortgage at 1.99%

A two-year fixed rate Help to Buy mortgage at 2.34%

A five-year fixed rate Help to Buy mortgage at 2.99%

New remortgage products for HTB tenants

New remortgage products for HTB tenants

These mortgages are also available up to 75% LTV. Furthermore, all of the society’s Help to Buy mortgages and remortgages are equipped with a low £199 fee.[2]

Better deal

Mark Richardson, General Manager for Business Development at the society said that, ‘the first homeowners who bought under the Help to Buy equity scheme are now coming to the end of their mortgage deals and have their first opportunity to switch to a better deal.’[3]

Mr Richardson went on to state that, ‘mortgage rates are at historic lows at present and the average two year fixed rate mortgage available now is lower than when the Government launched the scheme in March 2013 so borrowers can save themselves some money by switching to a more competitive deal.’ Additionally, he commented that by, ‘minimising the upfront costs of our Help to Buy remortgages assists the type of customer the scheme was introduced for and, unlike some lenders, Leeds Building Society does not differentiate between first time buyers and home movers and our main Help to Buy range is available to both.’[4]

 

[1-4] http://www.propertyreporter.co.uk/finance/leeds-bs-launches-two-new-remortgage-products.html

 

Build to Rent will See Post-Election Growth

Published On: May 12, 2015 at 11:02 am

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Categories: Landlord News

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Build to Rent will See Post-Election Growth

Build to Rent will See Post-Election Growth

The Build to Rent (BTR) sector will experience a growth of new investment due to the Conservatives’ victory in last week’s general election, Savills estate agent believes.

A researcher at Savills, Jacqui Daly, says: “The pent up demand and the weight of capital targeting the sector is likely to lead to more deals closing in the second half of the year.”

She claims the market was tinged with uncertainty during the election campaigns.

She explains: “Our recent survey of leading investment houses identified collective ambition to invest over £30 billion in the UK private rented sector, over 50% from UK investment houses.

“Investment managers represented the largest source of investment capital with an ambition to invest c.£10 billion in the residential market. This investment, backed by institutional clients, needs certainty of income.

“Regulatory and political uncertainty introduces a degree of nervousness and reduces the attractiveness of residential compared to other assets.”1

The Conservatives’ BTR policies during the last Parliament included a £1 billion BTR fund aimed at creating 10,000 homes to rent.

1 http://www.lettingagenttoday.co.uk/breaking-news/2015/5/build-to-rent-set-for-post-election-surge

 

 

 

 

Letting agent warns on upcoming Green Deal

Published On: May 12, 2015 at 10:06 am

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A leading UK letting agency has warned landlords over the upcoming Green Deal.

GFW Lettings has suggested that the legislation, which comes into force in April 2018, will be challenging for a number of private sector landlords.

The Green Deal

The Green Deal will see landlords legally responsible for bringing the energy efficiency of properties in their portfolio to an Energy Performance Certificate of at least an E rating or higher. This will be mandatory before any new tenancy agreements can be put into place. For existing leases, landlords will have until April 2020 to work on all necessary properties.

Undoubtedly, the change in legislation is good news for tenants, as bills will be reduced and homes will be warmer. It is thought that up to one million tenants are paying over the odds for energy bills as a result of poorly insulated homes. However, GFW are concerned about the impact of the scheme on private landlords.

GFW’s operations and lettings manager Fran Mulhall said that thousands of landlords could be hit in the pocket. Mulhall commented that landlords, ‘might be able to get some financial support under the Green Deal or Energy Company Obligation via their tenants’ energy supplier to ensure properties meet the required standards but given that nearly half a million UK homes fail to meet the required E rating they could be hit with thousands of pounds worth of bills.[1]

She went on to warn that, ‘as 10 per cent of privately rented properties currently fail to meet the new efficiency rules, this could leave many landlords with a big headache.’[2]

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Improvements

Mulhall has also expressed her concern that some landlords will not be aware of changes in legislation which comes into affect as early as next year. She warns that, ‘from April 2016, private residential landlords will not be able to unreasonably refuse consent to a tenants’ request for energy efficiency improvements and must respond to any requests from a tenant in under a month. This means that if a tenant feels that their home could be a lot better insulated, landlords, by law, must make appropriate improvements.’[3]

GFW has advised landlords to make themselves familiar with the Green Deal Home Improvement Fund as in a year’s time, they may be served with improvement requests from tenants.

Exemptions

Some relief can be given to landlords if they look for an exemption from the Private Rented Sector Exemptions Register. Exemptions could be granted if landlords can prove that they have carried out improvements that are cost effective, or where third party approvals have been rejected.

GFW stresses that an appropriate agent is vitally important for landlords. Mulhall notes that, ‘a knowledgeable agent does so much more than manage the advertising, leasing and maintenance of a property. They must appropriately advise and support landlords across the entire lettings process-providing timely, relevant information to property owners and guiding them through any key decisions and changes to the industry.’[4]

 

[1-4] http://www.lettingagenttoday.co.uk/breaking-news/2015/5/letting-agency-warns-landlords-over-green-deal

 

 

Will Right to Rent Checks Roll Out?

Published On: May 12, 2015 at 9:00 am

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Categories: Landlord News

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Will Right to Rent Checks Roll Out?

Will Right to Rent Checks Roll Out?

Now that we know the Conservatives have formed a majority government, those in the private rental sector are questioning whether right to rent checks will roll out across the country.

Pilot immigration checks were introduced in the West Midlands and oblige landlords and letting agents to conduct document checks on potential tenants to determine if they have the right to rent in the UK.

If an agent manages a property on behalf of a landlord, the agent is liable under the Immigration Act 2014.

The previous coalition government launched the regulations into the region last December, proposing a roll out across the country in 2015. It is thought that this could happen as soon as this summer.

The rules of the pilot in the West Midlands included landlords or agents checking the immigration status of hopeful tenants for all new tenancy agreements. Usually, this would just mean checking a tenant’s passport. They must then keep records of these checks for 12 months after the tenancy ends.

Agents and landlords can use an online form to request a check, receiving results within two working days.

The rules also apply to those taking in lodgers and tenants who sub-let their rental property. Failure to comply with the regulations can lead to a £3,000 fine.

The UK Association of Letting Agents (UKALA) compiled a checklist for those in the West Midlands, which would apply to landlords and agents around the country if the rules roll out.

The points are as follows:

  1. Check if your property is affected by using the Home Office online tool, found here: https://eforms.homeoffice.gov.uk/outreach/lcs-application.ofml.
  2. Read the Home Office Code of Practice, found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/376788/Code_of_Practice_on_illegal_immigrants_and_private_rented_accommodation__web_.pdf.
  3. Review your letting agent terms, conditions and contracts to ensure the landlord’s, tenant’s and agent’s responsibilities are clear.
  4. Review your working procedures so that you have enough time to conduct the checks and that records are kept and actions taken if necessary.
  5. Review the wording of tenancy agreements.
  6. Confirm responsibilities in writing between landlord and letting agent.
  7. Call the Home Office advice line on 0300 069 9799 for advice and information.

 

Prime Central London Rents Rise 7.4% in Past Year

Published On: May 11, 2015 at 4:52 pm

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The cost of renting in prime central London has increased by 7.4% in the past year, despite the last six months seeing steadier prices and demand dropping.

Prime Central London Rents Rise 7.4% in Past Year

Prime Central London Rents Rise 7.4% in Past Year

This is what former-ARLA (Association of Residential Letting Agents) president Lucy Morton found. She is now the director of JLL’s agency W A Ellis.

Morton says: “The average rent for properties to let in the first quarter of the year was unchanged on the values achieved in the final quarter of last year.

“However, despite the lack of new enquiries, there was still an 8.3% increase in properties let in the first quarter compared to the same quarter last year, and there’s been a significant increase in the number of properties let in the super prime market.”

She notes that properties let in the most expensive price bracket, £2,000+ per week, have risen by a third year-on-year. All but the lowest band, under £500 per week, recorded an increase in the amount of homes let.

She believes that there was a rise in renters due to aspiring purchasers awaiting the result of the general election.

However, she says: “Levels of tenant demand as a whole are falling on all but the highest quality and best presented properties, a trend we have been noting over the last few months.”1

She also comments that tenants are aiming for the best deals, as they are aware of the imbalance between supply and demand.

1 http://www.landlordtoday.co.uk/breaking-news/2015/5/pcl-rents-up-7-4-in-past-year