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Em Morley

Landlords looking for semi-detached homes

Published On: May 11, 2015 at 4:38 pm

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A new survey has shown that buy-to-let landlords have started to move away from buying a traditional terraced property.

Research from Paragon Mortgages has shown that a rising number of UK landlords are looking to purchase semi-detached homes. Additionally, a greater number are planning on continued steady growth within the sector.

Purchases

The data revealed that landlords looking to purchase a semi-detached property stood at 35% during the first quarter of 2015, up from 23% during the final quarter of last year. Paragon’s Private Rented Sector Trends survey also showed that the number of landlords looking to be a terraced property was also 35%, down from 67% in the final quarter of 2014.[1]

Of the remaining property types, 30% of landlords said that they were looking to purchase a flat, while 22% said that they were looking at more specific properties, such as HMO’s and multi-unit homes.[2]

Landlords looking for semi-detached homes

Landlords looking for semi-detached homes

Optimism

Pleasingly, the report also indicated that more landlords are optimistic about the future of their buy-to-let investments. John Heron, Paragon’s director of mortgages, said that, ‘the growing proportion of landlords looking to purchase buy to let property sometime soon points to continued, steady growth in the private rented sector.’ He continued by saying, ‘a closer look at interest levels for different property types suggests landlords are taking a broader perspective in order to cater for the wider range of households looking for a suitable home in the rental sector.’[3]

[1-3] http://www.propertywire.com/news/europe/uk-landlords-semi-detached-2015051110491.html?utm_source=twitterfeed&utm_medium=twitter

 

HMO Landlord in Coventry Prosecuted over Fire Safety

Published On: May 11, 2015 at 3:39 pm

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HMO Landlord in Coventry Prosecuted over Fire Safety

HMO Landlord in Coventry Prosecuted over Fire Safety

A landlord in Coventry has been given a £3,350 fine due to their House in Multiple Occupation (HMO) lacking the necessary fire safety measures.

Junie Liu pleaded guilty to six offences under the Management of Houses in Multiple Occupation (England) Regulations 2006.

Coventry City Council inspected the property after receiving a complaint about its conditions. The visit revealed four tenants living in the house, but none of the required precautions relating to fire safety.

Coventry City Council’s Head of Environmental Services, Craig Hickin, says: “HMOs, such as bedsits and shared houses, often have poorer physical and management standards than other privately rented properties.

“The people who live in them are often amongst the most vulnerable and disadvantaged members of society. This type of accommodation is the only housing option for many people; it is therefore vital that they are properly regulated.”1

1 http://www.landlordtoday.co.uk/breaking-news/2015/5/coventry-hmo-landlord-prosecuted-for-fire-safety-fail

 

 

 

 

 

 

Is a Tory win a victory for the housing market?

Published On: May 11, 2015 at 3:31 pm

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With the smoke clearing from the blood, sweat and non-Tory tears of the election, it is time to assess whether or not the Conservative’s victory will also be a win for the UK housing market.

Throughout the election campaign, the subject of housing and in particular the private rental sector, was a key area of debate. Many experts have pointed to this as a pivotal point that contributed to seal the downfall of the Labour party.

Milliband Mishaps

Critics have argued that the inclusion of housing policies in his election manifesto went a long way to causing Ed Milliband’s rather large defeat. It can be argued that his policies alienated landlords, letting agents and buyers alike.

One of the main gripes of Mr Milliband’s proposals was the much-maligned ‘Mansion Tax,’ which discouraged wealthy property owners and potential, many foreign investors in equal measure. Proving to be just as harmful were plans for rent capping and minimum term three-year tenancy agreements, not to mention the abolition of the ‘non-dom’ tax status, which aimed to prevent tax limitations on the earnings of wealthy people gained outside of the UK.

As such, David Cameron was able to gain the bulk of the support from people inside the property market without breaking much of a sweat. However, with the housing market showing increased property prices, spiralling rents and a chronic lack of supply, particularly for the younger generation, is a Tory government going to stand up and confront the problems head on?

Is a Tory win a victory for the housing market?

Is a Tory win a victory for the housing market?

Encouraged

The bones are still being picked out of the election campaign, but it seems certain that with all the chaos of the last few months in the past, investors, landlords and agents will be encouraged to press ahead with plans, which should give the market a shot in the arm. That said, despite a Tory majority result, all political parties never addressed the real problems facing the private rental sector. More regulation of letting agents and additional incentives for landlords to make the necessary improvements to their portfolios remain important factors to be confronted.

Pleasingly, there are already plans afoot to change Section 21 (A and B) of the Housing Act. Brian Murphy, head of lending at Mortgage Advice Bureau said, ‘the changes proposed to Section 21 of the Housing Act will make it more straightforward to evict a tenant, albeit placing some restrictions on how and when a Section 21 can be given. However, landlords must ensure that they don’t carry out their own eviction in a way that is actually illegal.’ [1]

Building blocks

One theme that all of the political parties agreed on was the fact that there is a substantial lack of affordable housing and that current measures are not enough. Homes need to be built, especially with the UK population expected to rise substantially once again during the next ten years.

The Conservatives have announced that their Right to Buy scheme will be extended to tenants in housing association properties, which could apply to 1.3 million families. A new Help to Buy ISA has also been promised, planned on assisting first-time buyers take their baby steps on the property ladder.

However, the fact remains that even if first-time buyers are given all the help in the world, they will still require a property in which to live. If a sufficient number of homes are not built to cope with demand, the UK faces an entire population being unable to afford their own property. It can be argued that how the Conservative government go about tackling this issue will go a long way in defining their term in office at Number 10.

[1] http://www.propertyreporter.co.uk/hero/is-a-tory-win-a-landlord-win.html?utm_source=Sign-Up.to&utm_medium=email&utm_campaign=21136-105386-Campaign+-+11%2F05%2F2015+Shaw#.VVCUME94dtU.twitter

 

Amount of Buy-to-Let Mortgages Down

Published On: May 11, 2015 at 2:29 pm

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The amount of buy-to-let mortgage deals available dropped by over a quarter in April, found the latest Buy-to-Let Product Index.

Mortgages for Business found that 609 buy-to-let mortgages were available last month, down from a high of 863 in March.

Amount of Buy-to-Let Mortgages Down

Amount of Buy-to-Let Mortgages Down

31 different lenders offered the deals, and there are a few reasons why the total available mortgages decreased by 254.

One possible reason is that there was a break in between lenders taking products off the market and launching new ones.

The study also indicates that competition in the market caused providers to remove some products so that operation could run smoothly during periods of high demand.

Of all the buy-to-let mortgages available, 46% were at 75% loan-to-value (LTV), up from 38% in March and 40% in February.

Higher LTV deals were offered, but these came with tougher conditions and cost more to the borrower.

9% of products had 80% LTV and 1% were at 85% LTV.

Fixed rate and tracker mortgages were similarly priced, however fixed rates were seemingly more competitive.

Mortgages for Business found that fixed rate two, three, or five-year deals offered better rates than trackers, especially at low LTV ratios.

Monthly figures indicate that fixed rates grew between March and April, from 3.53% to 4.02% for a two-year, 4.46% to 4.82% for a three-year, and 4.38% to 4.83% for a five-year.

Tracker buy-to-let mortgages also increased, with five-year rates up from 4.11% in March to 4.85% in April.

Two and three-year trackers also rose from 3.93% to 5.08%, and from 3.39% to 3.81% correspondingly. These numbers are averages and do not include fees.

 

 

Exciting New Developments in London’s Hotspots

Published On: May 11, 2015 at 12:45 pm

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London’s new build development projects are set to take off this summer as election fever wanes.

Homebuyers held off ahead of the general election, but now that the polling is over, it is believed that developers will launch their schemes soon. Building more houses was important for all political parties, and many organisations are supporting the work.

At present, 51,120 new properties are being built in London, beating the annual target of 42,000 and double the high of 2007.

Industry analyst MoliorLondon says that the capital has seen a “ballooning in development activity”1 since the start of 2015.

Research has found that sales of luxury homes, priced over £1.5m, have fallen by a huge 76%. Homes costing under £500,000 now make up two thirds of all sales, often to first time buyers.

Developers are now working harder to sell homes, with some dropping prices and offering incentives.

Barratt Homes has given end-of-financial-year deals at projects including Great West Quarter, Brentford and Queensland Terrace, Highbury. Prices start at £480,000.

Bellway is offering up to £12,000 Stamp Duty savings at commuter developments including Silk Meadows, Braintree.

Exciting New Developments in London's Hotspots

Exciting New Developments in London’s Hotspots

The next few weeks should see a host of schemes launching that were halted during the election campaigns. Take a look at some of the best:

St Clement’s is an inventive redevelopment in a derelict listed Victorian hospital in Mile End. With 252 homes, the project is a mix of refurbished apartments and new builds. The scheme is part of London’s Community Land Trust, which aims to link the cost of 23 properties to the average median wage in the area. One-bedroom flats will cost from around £150,000. The rest are on the open market, some are shared-ownership, and start at £325,000.

Leyton boasts renovated shops due to the Olympics. Lea Valley borders Hackney Marshes and Wanstead Flats, including the largest areas of open space in the capital.

The Exchange is situated next to Leyton Midland Road Overground station, with large, good value for money homes. Three-bedroom apartments start at £389,995 and houses are from £574,995.

With Crossrail arriving soon, Acton has been booming. The area is seeing an influx of young renters and buyers priced out of Shepherd’s Bush. Park Grove includes 50 flats overlooking Acton Park, with prices from £400,000.

In the middle of London’s legal quarter, Temple is not the most obvious residence. Aldwych Chambers on Essex Street has an arched entrance to the Inner Temple chambers and gardens. The new project has 20 flats with luxury interiors, and two penthouses have views of the River Thames. Prices start at £1m.

Clapham Old Street has seen huge growth recently, with galleries, organic food stores and boutiques opening. Run-down architecture is being renovated into fresh new homes on sites around the Polygon.

The Polygon was built in 1792 in the heart of the Old Town. Gyms, an arthouse cinema and Tube links will appeal to the young, while families can enjoy the pond and cafes. On Bedford Road, Listello Buildings is a new development including 58 apartments from £569,995.

Redeveloped Bayswater is no longer the wrong side of Hyde Park due to luxury projects. A run-down hotel in Leinster Square has been converted into homes with grand interiors. Prices start at £4.2m.

Blackfriars Road forms part of the new cycle superhighway between Elephant and Castle, and King’s Cross. Work on this boulevard-like section, which will be safe for cyclists, will include shops and cafes.

The Residence project will have 86 flats and shops at street level. Prices are from £765,000. The Chroma Buildings in Lancaster Street will also have 40 flats starting from £575,000.

Wimbledon has a picturesque village centre and beautiful common reaching Putney Vale. Houses and apartments bordering this green space boast the highest prices.

New developments here are rare and are usually small. Wimbledon Hill Park, however, has 110 homes in 19-acre grounds. The walled estate used to be a hospital, mixing traditional and modern architecture to form new builds and conversions, a concierge, gym and residents’ club. Prices range from £1,375,000 to £4,950,000.

The Grays is a development of 13 apartments from £895,000.

Appealing to the young priced out of Notting Hill, Queen’s Park contains small Victorian red-brick cottages originally build for artists and manual workers. They now cost seven-figure sums. The wider area’s Victorian and Edwardian homes are attracting high earners.

Queen’s Park Place is a new build project of 116 apartments in Salusbury Road, a family-friendly community with a farmers’ market, bistros and delis. Prices begin at £500,000.

1 http://www.homesandproperty.co.uk/property-news/new-homes/get-quick-latest-new-build-homes-londons-emerging-hotspots

 

UK property market tipped for post-election growth

Published On: May 11, 2015 at 11:52 am

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Categories: Landlord News

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Latest Landbay Rental Index Reveals Best and Worst Areas for Growth in England

After the Conservatives recorded a superb and unexpected majority triumph in last week’s election, experts are predicting a rise in UK house prices.

It is anticipated that investment in property in London will rise sharply with insecurities over the future of the market now dispelled. This is believed to see more overseas buyers taking the decision to purchase homes, without the risk of a mansion tax being introduced.

‘Bun fights’

Edward Heaton of Heaton and Partners property search agency predicts that house prices for prime country properties could see an increase of up to 10% in just a matter of weeks. Heaton said that, ‘there will be bun fights in the next few weeks for the best houses which come to the market as confidence in the top-end of the regional market returns.’ [1]

Mr Heaton continued by saying that, ‘for many operating in the prime property market, there is a palpable sense of relief at the election outcome as there were some genuine concerns about the possible impact of mansion tax tied in with the attack on non-doms proposed by Labour.’[2}

Stability

Michelle van Vuuren, managing director of residential development at Sotheby’s International Reality UK, believes that a Conservative victory will pave the way for much needed stability in the housing market. ‘The removal of the uncertainty that has clouded the last year of the coalition will allow developers to plan confidently for the medium term with a consistent economic policy.’ However, she did go on to state that the country needs the Tories to, ‘ come good on their annual pledge of 200,000 new homes and freeing up brownfield sites for development.’[3]

UK property market tipped for post-election growth

UK property market tipped for post-election growth

Van Vuuren believes that, ‘increasing the supply of homes is the only way to truly overcome the hurdles that the housing market places for the majority of buyers.’ Continuing, she said that, ‘a cessation of the clamour for a mansion tax will see a number of transactions that have stalled to come back on line as a certitude creeps back into the market.’[4]

Relief

Chief executive of Marsh and Parsons, Peter Rollings, believes that the outcome of the election means that buyers and sellers alike can plan more easily. Rollings said that, ‘the top end market will be breathing a huge sigh of relief that £2 million plus properties won’t be penalised by a mansion tax, a levy that would have stifled activity in the capital and across the South East.’[5]

Mr Rollings suggested that, ‘any such tax could also have had implications on lower rungs of the property ladder, so it is not just wealthier homeowners who should be counting their blessings. The post-election feel good factor could kick in immediately and 2015 may prove to be a reversed version of 2014 in starting slowly and finishing strongly.’[6]

 

[1-6] http://www.propertywire.com/news/europe/uk-property-market-election-2015050810486.html