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Em

Em Morley

Do Female Investors Prefer Lower Risk Investments?

Published On: August 21, 2018 at 8:02 am

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Experienced property investors usually compound wealth over time, identifying that over-ambition can often lead to excessive risk, in addition to a decrease in returns.

However, there are some that are urgent to multiply their investments, and most of these people are often men, according to the sales and letting agency, ludlowthompson.

It was reported that females are far likelier to concentrate on long-term investing frames investments, such as property, recognising that this makes wealth compounding much more likely. This slightly explains why ownership of buy-to-let property is much more of a 50-50 split between women and men, compared with other forms of investment.

According to the London-based firm, women make up 46%, or 1.1 of the total 2.4m UK buy-to-let property investors that can be identified from an analysis of Government data.

Women generate £13.8 billion of the total £32.3 billion in rental income generated by the UK’s buy-to-let property investors.

In alternative types of savings, such as pensions, the gap in ownership between genders is considerably higher.

Women receive £46.5 billion of income from pensions, whilst men are receiving £79.3 billion of income from pensions.

Ludlowthompson claimed that one reason why women might have been really active investors in buy-to-let is that residential property is a relatively stable asset and not prone to the more dramatic swings in values of shares.

Research carried out into the different investment strategies favoured by men and women tend to suggest that women have less of an appetite for speculative investments than men.

Chairman of ludlowthompson, Stephen Ludlow, commented: “Whilst a lot of men get entranced by get-rich-quick investments like CFDs and cryptocurrencies – women are said to much more grounded and prefer lower risk investments like real estate.

“When we started our business 25 years ago we noticed that it was an investment that seemed to be favoured by women over men.

“That’s been great news for those early pioneers as residential property investment has easily beaten other outperformed other asset classes like shares, bonds and cash.

“Women who have built up substantial buy-to-let portfolios deserve a bit of recognition as they have done this in the face of constant criticism that buy-to-let property is risky. The reality is that assets like shares have proved to be far riskier.”

Hot or Not: Top 10 Postcodes for Home Sellers and Buyers in England and Wales

Published On: August 20, 2018 at 10:00 am

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According to the new house selling weather forecast, PropCast, Dorset’s postcode district BH17 has been named the highest performing location for selling houses this month. As its recent ‘England and Wales Top 10 Property Housing Report’ reveals, a market heat temperature reading of 74 degrees, indicating that homeowners are in a sellers’ market.

Subsequent to BH17, the next hottest postcode districts are B25 (72°), B67 (70°) and B42 (69°) in Birmingham, followed by BS3 Bristol and Somerset (69°), M32 Greater Manchester (69°), BS5 Bristol (69°) and RM20 Romford (68°). Ninth and tenth place is taken by two other Birmingham postcodes, B44 (68°) and B34 (68°).

Meanwhile, London dominates PropCast’s Top Ten coldest postcodes, where homes are in a buyer’s market. The coolest in London is the northwest, seven degrees, followed by WC2 (8°), SW8 (9°) and W2 (9°) in London, L2 Liverpool (9°), SA64 Wales (10°), with the Capital appearing again at SW10 (10°), W1 (10°), SW5 (10°) and SW7 (10°).

By establishing where’s ‘hot’ (sellers’ market) and where ‘not’ (buyers’ market), PropCast can help homeowners determine how plausible or not it will be to sell their homes. At a period where conflicting information about the housing market leads to confusion to homeowners, the figures allow people to confidentially identify true local market conditions, make more informed decisions regarding the best ways to sell their homes, and ultimately, achieve better results in less time.

Top 10 Hot postcode districts (Sellers’ markets)

BH17 74°
B25 72°
B67 70°
B42 69°
BS3 69°
M32 69°
BS5 69°
RM20 68°
B44 68°
B34 68°

Top 10 Cold postcode districts (Buyers’ markets)

NW8 7°
WC2 8°
SW8 9°
W2 9°
L2 9°
SA64 10°
SW10 10°
W1 10°
SW5 10°
SW7 10°

PropCast’s Creator and Professional Property Seller, Gavin Brazg , commented: “PropCast gives everyone 20:20 vision to see what’s really happening in their local property market. Sellers in a cold buyers’ market should not be downhearted because it’s still absolutely possible to sell well. Buyers are out there; they’re just more price and condition sensitive.

The key to success is to identify the homes that are your direct competitors, and then position your home so it represents the best value for money. Meanwhile those in a sellers’ market certainly have it easier as the balance of power is skewed in their favour. This is because there are more buyers than homes for sale. Properties sell quicker and often after a bidding war – as long as the initial asking price is set realistically.

If you are trying to buy in this type of market, get ready to compete against other buyers. Be prepared to spring into action the moment a property you like hits the market, be pre-approved for a mortgage before you make an offer and make your opening offer a strong offer.”

House Price Growth to Slow in Scotland: Transactions Take a Tumble

Published On: August 20, 2018 at 9:29 am

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As values are declining on a monthly basis, so is the growth of annual house prices in Scotland.

The latest House Price Index provided by Your Move, reveals that average prices north of the border have plummeted by 0.7% on a monthly basis during June, the second month of falls.

Annual growth slowed for the third consecutive month, down from 6.7%in March to 5.7%in April and now, 4.4% in June.

This meant that average prices were set at £182, 163 for June, while the annual growth rate is back down to the equal level seen in December last year.

The agent also disclosed that transactions in the first quarter of 2018 in Scotland were down 11% annually.

The blame for this slug was received by Edinburgh, where the Scottish capital has the highest average prices, however, has experienced the fall in prices over the past 2 months, down 1% in June.

Scottish price growth remains ahead of England and Wales, where average values are up just 1.7% annually.

Managing Director of Your Move in Scotland, Christine Campbell, said: “The market in Scotland has noticeably slowed as we’ve gone into the summer yet it still shows some strong annual growth, and it’s encouraging to see almost all areas showing positive performance.”

According to the headline statistics in the recent UK House Price Index Scotland: April 2018, the average price of a property in Scotland was recorded to be £148,952. Annually, the price change of a property in Scotland was 5.6% and monthly, 2.5%.

Simon Rubinsohn, RIC’s Chief Economist, commented: “The scale of the challenge the UK government faces as it announces its new approach to housing is clearly demonstrated in the results from our latest survey.

“Not only are the headline price and rent series pointing to further increases over the course of this year, but more significantly, the medium term view of RIC’s professionals working up and down the country is that both house prices and rents will, over the medium term, continue to grow at a faster pace than wages putting even greater pressure on affordability.

“Whether the measures announced can ease this trend remains to be seen.”

Mayor Launches New London Development Panel to Accelerate Homebuilding

Published On: August 20, 2018 at 9:02 am

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Sadiq Khan, Mayor of London, recently announced his new London Development Panel (LDP), made up of developers, housing associations and contractors, who public bodies can operate with to accelerate housing delivery on sites that they own.

Through the LDP, Transport for London (TfL) intends to bring forward three car park sites in the London Borough of Harrow (Canons Park, Rayners Lane and Tanmore), and will deliver 100% affordable housing within these developments.

City Hall has also purchased a large sector of St Ann’s Hospital in Haringey from the NHS. Plans for the site are being developed with the local council and local community, and this site is expected to be put through the LDP for residential development with at least 50% genuinely affordable housing.

Additionally, the Enfield Council intends to bring forward Meridian One through the new LDP. This site is next to the forthcoming Meridian Water station and will provide up to 725 homes along with 25,000 sq ft of commercial space and leisure facilities.

Furthermore, City Hall is working closely with the council to deliver 35% affordable housing across the entire Meridian Water development.

The Mayor’s draft London Plan identifies capacity for 65,000 new homes a year and Sadiq Khan is using all of his powers to increase the proportion of genuinely affordable home being built in London.

James Murray, Deputy Mayor for Housing & Residential Development, said: “Public land has a vital role to play in tackling the housing crisis, and the new London Development Panel offers public land owners a quicker and more efficient way to bring their sites forward. We want to see it playing an important role in building the homes Londoners so desperately need.”

The Greater London Authority (GLA) as contracted with 29 organisations that make up the panel:

• A2 Dominion
• Be Living
• Bellway
• Berkeley Group
• Barratt
• Catalyst
• Countryside
• Durkan
• Engie Consortium (Engie, HUB and Delancey)
• Galliford Try
• Hadley Property Group
• Higgins
• Hill
• Hyde
• Lendlease
• London and Quadrant Housing Trust
• Morgan Sindall Consortium (Morgan Sindall, Muse and Lovell)
• Native Land
• Notting Hill Genesis
• Optivo
• Peabody
• Pinnacle Group
• Prospect House Consortium (Stanhope, Network Homes and Laing O’Rourke)
• Quintain
• Redrow
• Swan Igloo Consortium (Swan Housing Association and Igloo)
• Telford Homes
• U+I
• United Living
• This new LDP replaces the first London Development Panel which expired in 2017.
• The panel will run for a period of four years, with the potential to extend by one year.
• Over its four-year lifespan it is anticipated that the LDP may be used to procure up to £20billion of Development, measured in GDV.

The LDP can offer:

• A faster way of selecting a development partner compared to other procurement methods;
• A comprehensive range of development services;
• New flexibilities around how panel members an bid in mini-competitions;
• Potential cost savings through its mini-competition process and standardised set of contracts;
• Use for both development and contracting opportunities in Greater London.
• It is available, free of charge, to public landowners and Registered Providers who sign an Access Agreement with the GLA.

How to Get an Unoccupied Property Ready for Sale or to Let

Published On: August 20, 2018 at 8:17 am

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Unoccupied Property

Is the home of a loved one, or someone you’re the power of attorney, executor for ready to be put on the property market? Or maybe you’re a solicitor with clients asking questions about how to get their unoccupied property ready for the next step? Wayne Shinn, on behalf of Unoccupied Direct, providers of specialist Unoccupied Property Insurance, shares his top tips for getting a property that has been left unoccupied, up to scratch and ready for being sold or let to tenants.

De-clutter the home

Prospective buyers are looking for a place to call home, or at least make an investment in, so by making the home look as neutral as possible will help them get a feel for what it might be like to live there. Similarly, tenants looking for a home will want to put their own touches on it, so making sure that any personal items are tidied away, or safely put into storage, will ensure your potential buyers or tenants get the best possible feel for the place.

Deep clean

Stepping into a property that smells clean and fresh, and isn’t cloaked in cobwebs or full of mothballs, will make a great difference to the impact your property has on its viewers. Particularly in a property that may have been unoccupied for some time, you could consider hiring a professional cleaning company to do a full deep clean.

A few finishing touches can be instrumental in selling an unoccupied property

A few finishing touches can be instrumental in selling an unoccupied property, or finding the right tenants

Spruce up the garden

A few simple maintenance tasks, such as keeping on top of the lawn mowing in summer, and cutting all the plants and foliage back for winter, will make a great difference to the overall kerb appeal of the home. Whether you’re letting or selling a property, prospective tenants or buyers are likely to be more impressed with a property that’s been well maintained.

Get on top of the paperwork

If you’ve not already had to get all the documents related to the home ready during probate, now would be a good time to do so. Instruct your solicitor to get started on the conveyancing process, including a break down of likely costs and services, and check with any mortgage lenders as to what the process is in relation to selling or letting.

Make sure the décor is appealing

Some fresh new paint could go a long way to brightening up a property, and giving it a new lease of life, particularly if it’s been unoccupied for a while. You don’t need to spend too much either – you could get some curtains in neutral fabrics and other soft furnishings, such as cushions or rugs, in for a more modern feel. Just replacing the dirty grout on the bathroom tiles could make a huge difference too, or even replacing the cupboard doors in the kitchen could give the room a new lease of life.

Unoccupied Direct provides market-unique cover for homes which are unoccupied due to the owner moving into care, in with family members or due to probate. If you’re the executor, lasting power of attorney or a solicitor dealing with probate clients, simply head to www.unoccupieddirect.co.uk for a quote about unoccupied property insurance.

The Housing Crisis: Could the Elderly be the key to Unlocking it?

Published On: August 17, 2018 at 10:00 am

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Property Values Falling Faster than Bitcoin

According to the third annual Retirement Confidence Index, (RCI) from McCarthy & Stone, the UK’s leading retirement housebuilder, with the prospect of owning a home experiencing a decline for those under the age of 30, it is suggested that the older generation have the answers, when it comes to the question of how the housing crisis can be resolved. In addition, they have the power to increase the chances of younger people getting on the property ladder.

Produced in conjunction with YouGov, the RCI found that 60% of people belonging to the younger generation believed that the UK required more ‘later homes’ for older people, not just ‘starter homes’ for first time buyers.

Moreover, the results revealed that 70% of pensioners equally felt that there should be more focus on improving the provision of suitable housing options for the older generation.

However, it’s not only the younger generation who have a desire to move…

While it is apparent that people belonging to the younger generation have an urgency to get their foot on the steps of the property ladder, older people share an equal desperation for downsizing.

McCarthy & Stone discovered that 35% of adults aged 65 and over would consider moving, representing 4.1 million pensioners.

But, too many of these people are part of “generation stuck”, those pensioners who want to downsize but find they are blocked by limited options. In addition, 22% of older people would also consider a specialist retirement property, equivalent to 2.6 million people.

Are ‘later homes’ assisting older people to downsize and free up housing?

From the results provided by McCarthy & Stone, it was discovered that those who were contemplating downsizing, to do so, would equate to more than 2 million two-bedroom homes being released into the market. This would also help release over £364 billion of housing equity, boosting the finances of those aged 65 and over.

The declining prospect of owning a home, however, means that younger people feel they need to rely on their parents for financial assistance or perhaps, their grandparents. To get on the property ladder, 51% claimed they would require financial support from family.

Chief Executive of McCarthy & Stone, Clive Fenton, commented:
“Both older and younger people see the benefits in providing better housing options for our ageing population. Millions of older people are looking for properties better suited to their needs, and young people are desperately trying to join the housing ladder.

By providing more suitable housing, such as bungalows, retirement housing or other well-designed accommodation for later life, we can address a big part of the housing crisis. We absolutely understand the Government’s focus on helping young people join the housing ladder, but if they are really serious about solving the housing crisis they have to recognise that helping older people to downsize to free up under-occupied property has to be a significant part of the solution.”