Written By Em

Em

Em Morley

The World’s Worst Estate Agent Photos

Published On: February 10, 2015 at 3:17 pm

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Categories: Property News

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Estate agent photographs can be more shocking, and funnier, than house hunters anticipate.

This is what Andy Donaldson, from Aberdeen, found when he was searching for a new flat in London in 2013. After discovering a host of awful, yet hilarious pictures, Andy set up a blog to show his friends what’s out there.

These genuine online advertisements include a toilet in the utility cupboard, and family pets in the image.

The Tumblr site, however, went viral after receiving 100,000 hits per day.

Andy says: “To begin with, I spent a few hours a week searching for funny or bad images for the blog, but since it went viral, I am now sent pictures from all over the world. I get up to around 100 new images each week, and I have more than 2,000 great images saved for publication.

“The photos I am sent come from websites all over the world, from the UK, US, Canada, across Europe, Russia, Australia, New Zealand, South Korea, Japan, and even Kazakhstan.”

He explains the blog’s purpose: “The intention of the blog is not to ridicule individual agents or agencies; it is a difficult job, and everyone makes mistakes sometimes.

“But if an agent wants to complain about their photograph being used on my website, they would have to admit that it was their photograph, and I think the estate agents prefer to remain anonymous.”1

Andy has turned his collection into a book, called Terrible Estate Agent Photos, which sold out in the UK over Christmas. The US version is set for release in April, and Andy is currently compiling a 2016 calendar, which will be available in the UK, USA, Canada, Australia, and New Zealand.

Some of the best, or worst, images have been selected for your viewing pleasure. Take note!

 

 

 

 

 

 

 

 

1 http://www.dailymail.co.uk/news/article-2947277/Terrible-estate-agent-pictures-homes-dodgy-decor-random-animals-bizarre-furnishings.html

 

Amount of Buy-to-Let Investors Increase by 8%

Published On: February 10, 2015 at 12:02 pm

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Categories: Landlord News

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The total amount of buy-to-let investors in the UK has increased by 8% in the past year, to 1.63m, revealed letting agent Ludlow Thompson.1

Amount of Buy-to-Let Investors Increase by 8%

Amount of Buy-to-Let Investors Increase by 8%

The net income, rental income minus all costs, of these landlords grew to £13.1 billion in 2012-13, 8% more than the £12.1 billion seen in 2011-12.1

The record low interest rates on bank deposits, and Government bonds, have helped the sector attract new investors, as they find it difficult to achieve comparable returns from other investments or savings products.

Ludlow Thompson believe that 5-6% yields are still achievable on investment properties in some areas of London.1

Capital growth on residential property was over 7% in 2014, and 16% in London, although the FTSE 100 rose by just 0.7% in a year.1

Chairman at Ludlow Thompson, Stephen Ludlow, says: “The high yields on offer from buy-to-let investments make this asset class one of the few options for investors who want to avoid the volatility of the stock market. A fall in inflation has also calmed fears of a sharp rise in interest rates.”

He also says that recent regulatory changes in the mortgage market are making first time buyers struggle to obtain mortgages, meaning that they have to stay in rental property for longer.

He concludes: “Also, pension changes announced last year should allow potential investors to use these funds for a property purchase, offering far greater yields than pension funds.”1

1 http://www.landlordtoday.co.uk/news_features/Number-of-buy-to-let-investors-up-8-in-a-year

The General Election and the Housing Market

Published On: February 9, 2015 at 3:00 pm

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Categories: Property News

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Demand still exceeds supply in the property market, indicating that house building will be at the forefront of this year’s general election.

For the major parties, housing will have a huge impact on the result. They have already outlined some key points ahead of 7th May.

The Conservatives have vowed to deliver 100,000 new homes to first time buyers if they win the election. These would come at a 20% discount; preference would be given to UK residents under 40-years-old, over buy-to-let landlords or investors.

Labour says that they will double the amount of first time buyers in the next ten years. They also aim to build 200,000 new homes every year, including a high number of social and local authority housing.

The Liberal Democrats have gone even further, planning to build 300,000 new homes per year. Some of these would be set aside for social housing, and some would form part of new garden cities, built along the proposed rail line between Oxford and Cambridge.

Although the amount of first time buyers has begun to rise again, there is no doubt that the last few years have seen the housing ladder move out of reach for young people.

The Office for National Statistics (OFT) have revealed that average house prices in London stand at £428,000 and £308,000 in the South East, but much lower in other areas of the country: £169,000 in Wales, £154,000 in the North East, and £136,000 in Northern Ireland.1

The General Election and the Housing Market

The General Election and the Housing Market

The gap is also widening. In 1983, the percentage difference between highest and lowest value areas was 56%, however now it has grown to 68.3%.1

It is no surprise that many people in the UK are choosing to rent rather than buy, and the figure is rising. Research by lobby group Generation Rent shows that, on Election Day, MPs in 100 seats will represent more renters than owner-occupiers.1

With this being the case, Labour aims to increase tenant security by launching fixed three-year tenancies, and also prevent landlords increasing rent more than once a year, and to ensure these raises stay within statutory guidelines.

The Conservatives believe that this will limit supply of accommodation, by causing landlords to become wary of renting out properties.

They think that it will be better to improve the economy generally, thus creating more jobs and making tax cuts possible.

The Liberal Democrats support the policy of increasing supply, by not only building more homes for sale, but properties that local authorities and other organisations can rent out.

Regardless of the outcome of the election, the major parties all agree that more houses need to be built. Estate agents share this view, as they report that demand is far surpassing supply.

Investors and buy-to-let landlords will be pleased, as their rental income will cover mortgage repayments, and the value of the property should increase, more so in London and the South East.

Vendors in the south will also be happy, as asking prices continue to rise. However, there is a threat of mansion tax that would be imposed on homes over £2m. This is part of the manifesto for Labour and the Liberal Democrats. Agents have claimed that homeowners in this price range are either trying to sell quickly now, or are holding off until after the election.

Equally, buyers of properties on the lower end of the scale will see a decrease in the amount of Stamp Duty they must pay.

The new system, brought in in December, means that the first £125,000 of the sale price is now exempt from Stamp Duty. Before, a 1% rate applied. For example, if a home cost £185,000, the vendor would pay £1,850 in Stamp Duty. Now, the rate has been increased to 2%, but this rate only comes into force after the £125,000 mark.

Stamp Duty on a £185,000 home is now charged at a 2% rate of £60,000; just £1,200 against the previous £1,850. Over £250,000, 5% Stamp Duty applies, above £925,000 it is 10%, and over £1.5m the Duty is 12%.

In Scotland, the new rates will see a 92% increase in Stamp Duty for a £900,000 property.

For everyone: tenants, owner-occupiers, landlords, investors, developers… housing will be on our minds come Election Day.

1 http://blog.onthemarket.com/content/general-election-2015-will-mean-property-market-2/

 

 

Market Gains Momentum with More Mortgage Approvals

Published On: February 9, 2015 at 12:43 pm

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Categories: Finance News

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The Bank of England (BoE) has announced there were 60,275 approvals for property purchases in December, as low-priced mortgage deals are encouraging buyers.1

The housing market in the UK has since gained some momentum after a flood of lower-priced mortgage deals encouraged buyers to take out new home loans.

Market Gains Momentum with More Mortgage Approvals

Market Gains Momentum with More Mortgage Approvals

The BoE revealed that the figure rose after six months of declines, when approvals reached a 17-month low of 58,956 in November.1

Constant threats of higher interest rates during 2014 diminished, and the rise followed. The effects of the Bank’s credit rationing measures are also starting to wear off.

Banks and building societies are also in a better condition than a year ago, and this increased competition on the high street is now causing a higher number of mortgage deals at lower rates.

Chief UK Economist at Berenberg Bank, Rob Wood, says: “Cheap and falling mortgage rates, now rising real wages, rapidly declining unemployment, and elevated consumer confidence all bode well for the housing market this year.

“London specific factors, where a mansion tax would hit the most and past tax and credit supply measures are also biting, could keep the capital more subdued, but we look for UK prices to gain 5% over 2015.”1

The latest Royal Institute of Chartered Surveyors (RICS) survey revealed that predictions for house price inflation increased, and the Nationwide found that prices were 0.3% higher in January than the previous month.1

Chief Economist at IHS Global Insight, Howard Archer, noted that the December approvals figures are still 20% lower than the post-crash high of 75,557 in January 2014. Although he believes the market will have a resilient 2015.

He comments: “The market was clearly initially influenced by the introduction of the new Mortgage Market Review [MMR] regulations that came into effect in late April. These regulations put greater onus on mortgage lenders to assess the ability of potential borrowers to meet their initial and future mortgage payments.”1

1 http://www.theguardian.com/business/2015/jan/30/housing-market-rise-mortgage-approvals?CMP=share_btn_tw

Landlords Blamed for Housing Problems

Published On: February 9, 2015 at 11:41 am

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Categories: Landlord News

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Landlords have been held responsible for many different issues building in the UK.

The Conservative Party blamed landlords for illegal immigration, and has made right to rent checks a legal requirement before any tenancy agreements are signed.

Landlords Blamed for Housing Problems

Landlords Blamed for Housing Problems

Labour targeted landlords in the stand against climate change, by enforcing obligatory Energy Performance Certificates (EPCs). The current Government is also prohibiting the rental of low performance energy homes from 2018.

Landlords are also being held responsible for the troubles in the housing market, as London mayoral candidate Diane Abbott has suggested monthly rents be capped at half the annual Council Tax band. Think tank Civitas has also supported rent controls.

People may like the idea of landlords being greedy and profiteering, however, more than three-quarters of landlords in the UK rent out only one or two properties. In London, many also rent out rooms in their own house for more income.

Although rents in the capital have risen by 15% since 2011, house prices and mortgage costs have also increased by much more. The desperate shortage of housing is the cause of these issues.

Politicians do not seem able to come up with an innovative solution; with neither side planning more social housing or new builds to increase supply. Instead, they have created punishing regulations for just one group of people.

Landlords may have been accused of causing a lack of new builds, and a high housing benefit bill, however it seems that the private rental sector actually provides support against other shortcomings. Those who cannot afford a mortgage can afford to rent, or those who cannot get social housing live in private accommodation.

Landlords and tenants are also praised on making the best of a bad situation. People who rent out rooms in their homes will generally organise interviews to find a tenant who will be suited to their living arrangements.

The rise in private renting in London, to 670,000 households1, could also be down to the increase in groups such as students and temporary visitors, who prefer renting.

A rental cap could have detrimental and unpredictable effects. Landlords are calling for these measures to be opposed in the run-up to the general election.

1 http://www.cityam.com/208945/landlords-should-not-be-scapegoats-uninventive-politicians

 

 

Crossrail Homes Provide Profits

Published On: February 9, 2015 at 9:43 am

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Categories: Property News

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House prices are predicted to mount as the London commuter belt grows, cutting long commuting times.

In the past, the distance from the centre of London determined the price of a commuter belt property. However, this is changing. House values will now also be affected by how many minutes it takes to travel into London by train, not just how many miles away it is.

This is all down to Crossrail, the super-fast train system. From 2018, this will be able to get you from Slough in Berkshire to Tottenham Court Road in 32 minutes. It is currently 52 minutes, including a change at Paddington.

In the other direction, the train will take you from Canary Wharf to Heathrow Airport in 40 minutes, instead of the current 71.

Crossrail is the biggest construction project in Europe. It will connect Maidenhead in the west with Shenfield, and Abbey Wood in the east, via some of the busiest stations in central London; Bond Street, Tottenham Court Road, Farringdon, and Liverpool Street.

The project involves 37 stations, and will bring an extra 1.5m people within a 45-minute commute of central London. Experts believe that it will also increase house prices across the whole line.

Overnight, the journey from Ealing to Farringdon will take just 17 minutes, instead of 38.

Crossrail Homes Provide Profits

Crossrail Homes Provide Profits

For residents of Abbey Wood, they can get to Whitechapel in 15 minutes, rather than 49.

Estate agents Savills have conducted research that shows that Crossrail is also raising house prices by 23% above the borough average in Ealing, and Acton.1

And bigger growth is expected. The largest increases are predicted in Manor Park, Ilford, Seven Kings, Goodmayes, and Chadwell Heath.

James Hyman, Head of Residential Agency at Cluttons estate agents, says: “Such is the nature of the London property market that any area which might directly benefit from improved transport links will rocket in price.

“Crossrail will bestow previously suburban areas with the equivalent of a central London address, in the sense that more of the city will become immediately accessible.”

Property consultants CBRE have revealed that the value of homes close to Crossrail stations has already risen by 20% over the local average. Another 13%, £60,000, per property is predicted by the time the first Crossrail train runs in 2018. This figure could increase to 20%, £100,000, in central London.1

Director of Aspire estate agents, Matthew Dabell, explains: “Crossrail will increase London’s public transport capacity by 10%. It will contribute to significantly reduced travel times for many, and will have a big impact on sustaining the economy of both London and the South East.”1

Past studies show that the expected highest rises in property value will be: Taplow, Buckinghamshire, Maidenhead, Berkshire, and Burnham. Journey times to London in these parts will be cut by up to 30 minutes.

Property consultants GVA found that between 2008 and 2013, 41% of planning applications within one kilometre of the Crossrail stations named the new railway line as the reason for the development.1

It is also expected, and hoped, that the improved links will provide 57,000 new homes.1

But it won’t only be properties in the Crossrail area that will benefit.

House prices in areas of western England, beyond Maidenhead, will also rise.

David Milligan, of Private Property Search, says: “The most significant changes will result from the electrifying of the train line west of Reading. This means new rolling stock and increased train speeds.

“The Swindon, Chippenham, Bath, and Bristol route will see commuter train speeds increase, and journey times reduce. Places such as Chippenham, Wiltshire, and Kemble, Gloucestershire, will become the new Newbury in terms of train times to London. This will undoubtedly have an impact on property prices.”

However, not everyone has realised this yet, as so much work is taking place in underground tunnels.

Hyman concludes: “We are getting ever closer to the completion date, and only a few investors have seized the opportunity. If you follow the Crossrail map, and invest accordingly, you won’t go far wrong.”1

1 http://blog.onthemarket.com/content/homebuyers-and-landlords-high-speed-profits-crossrail-map/