Written By Em

Em

Em Morley

Number of Buy-to-Let Deals Highest in Almost a Decade

Published On: September 12, 2017 at 8:09 am

Author:

Categories: Finance News

Tags: ,,,

Number of Buy-to-Let Deals Highest in Almost a Decade

Number of Buy-to-Let Deals Highest in Almost a Decade

The number of buy-to-let deals has soared by 7% in just one month, reaching its highest level since December 2007, according to the Moneyfacts UK Mortgage Trends Treasury Report.

On a monthly basis, the amount of buy-to-let deals has risen from 1,613 to 1,725. In September last year, 1,339 were available.

Charlotte Nelson, a Finance Expert at Moneyfacts, says: “The buy-to-let market has had an understandably bumpy ride of late, considering all the regulation and tax changes it has had to contend with. Despite this, the market seems to be buoyant, with the number of available products reaching its highest point since the 1,942 products that were recorded in December 2007, almost a decade ago.

“The market has clearly recovered from the tougher affordability rules that were put in place on 1st January, when it saw a dramatic drop in the number of products available to landlords. Since then, the number of deals on offer has gone from strength to strength, culminating in a rise of 7%, the highest month-on-month growth Moneyfacts has seen in 2017.”

She continues: “Despite reduced buy-to-let activity in the first quarter of this year, competition among lenders remains high, as providers fight to retain their standing in a diminished market. As a result, rates have also fallen, with the average two-year buy-to-let fixed rate down from 2.91% in August to 2.86% in September and another record low. This leaves borrowers looking for a buy-to-let mortgage today in a good position.

“Providers are now starting to get ready for further changes at the end of September, which will see lenders apply stricter standards to those with four or more properties. It is still uncertain how providers will choose to react to the new changes, but product numbers could climb as providers start to target their products to the two different types of borrower. However, despite this increased choice, rates might not improve.”

Nelson adds: “The extra pressure on the buy-to-let market could be a turning point, with the competition that is currently alive and well amongst providers perhaps starting to ebb as they shift their focus to ensuring the new regulation is followed.”

With so many buy-to-let deals available, perhaps it’s time to look for another property to invest in?

 

Rogue landlord jailed for Gas Safety negligence

Published On: September 11, 2017 at 1:30 pm

Author:

Categories: Landlord News

Tags: ,,

A private landlord from Cornwall has been hit with a 12-month prison sentence, suspended for 24 months. In addition, the rogue was fined £5,000 and told to pay costs of £5,524, after negligence towards gas appliance maintenance at his rental properties on St Thomas, Launceston.

Truro Crown Court was informed that the landlord David Bush, failed to maintain the gas appliances in two properties- both of which were not inspected by a registered Gas Safe Register engineer.

Rogue landlord jailed for Gas Safety negligence

Rogue landlord jailed for Gas Safety negligence

Gas Safety

An investigation by the Health and Safety Executive also found that Bush failed to obtain a Landlord Gas Safety Record after May 2014, while the appliances in the property had not been serviced for at least 4 years.

Mr Bush was punished after pleading guilty to breaching Regulations 36 (2) (a) and 36 (3) (a) of the Gas Safety (Installation and Use) Regulations 1998 and Regulation 3 (2) of the Health and Safety at Work Act 1974.

Following the hearing, Health and Safety inspector Simon Jones, noted: ‘Mr Bush put the residents and other members of the public at risk of harm by failing to maintain gas appliances in the domestic property.’

‘Landlords must ensure they obtain a Landlord’s Gas Safety Record and maintain all gas appliances in accordance with the law.’[1]

Those looking for a comprehensive overview on Gas Safety should check our guide.

[1] https://www.landlordtoday.co.uk/breaking-news/2017/9/landlord-given-suspended-sentence-for-putting-residents-at-risk-of-harm

Seven Game of Thrones Themed Property Locations

Published On: September 11, 2017 at 10:21 am

Author:

Categories: Property News

Tags: ,,

Although the seventh season of Game of Thrones has come to an end, some fans will still be hyped about the hit show. If you’re looking for property in a Game of Thrones themed location, here are seven to consider:

Hybrid estate agent eMoov.co.uk has compiled a list of locations across England where die-hard fans can get a Game of Thrones themed property fix until season eight.

King’s Langley – £412,301

King’s Langley in Hertfordshire easily makes the top of the list for Game of Thrones fans looking to get on the ladder, after the town changed its name in February 2014 to King’s Landing for a week to draw attention as a fan base for Game of Thrones enthusiasts. The town signs changed and local businesses were encouraged to follow suit with the theme, which ultimately proved successful as far as property is concerned.

Seven Game of Thrones Themed Property Locations

Seven Game of Thrones Themed Property Locations

Since the change to King’s Landing, house prices have jumped by 43%, from an average of £288,033 to £412,301. The adoption of a Game of Thrones namesake seems to have positively impacted the area, with the rate of growth in Dacorum exceeding both the average for the wider county of Hertfordshire and England, of 41% and 27% respectively.

Although the market in King’s Langley has already enjoyed a Game of Thrones inspired price spike, there are still a number of other areas for fans with all budgets…

Silverhill Drive – £117,500

If fans are looking for something different in their investment, then Silverhill Drive in Newcastle-upon-Tyne is an affordable option, with prices averaging £117,500. Silverhill Castle in the series is a Lannister controlled territory of the Westerlands, near Casterly Rock.

Rose Road – £181,000 

Birmingham’s Rose Road has property going for £181,000 – a low price when compared to the road with the same name in Game of Thrones, which is the second largest across the Seven Kingdoms, connecting King’s Landing and Oldtown.

Kingswood – £288,386

Going up in value is the village of Kingswood in Gloucestershire, with an average property price of £288,386. Kingswood shares a name with the large forest stretching across Central Westeros, from King’s Landing to the Stormlands.

Wolf’s Wood – £390,500 

Surrey’s Wolf’s Wood is a road where prices average £390,500. This higher price could account for a quieter lifestyle, similar to that in the North near Winterfell, bur with easy commuter access to the capital.

Blackwater – £588,940

Fans of King’s Landing may want to look to the town of Blackwater in Hampshire, where the average house price is £588,940. In the show, Blackwater Bay sits on the edge of King’s Landing and, similarly, Hampshire is in close proximity to London.

King’s Road – £745,333 

Instead of worrying who will take the Iron Throne in the next series, fans wanting to buy in a regal neighbourhood can look no further than the King’s Road in the Royal Borough of Kensington and Chelsea, where prices average £745,333. Hopefully, buyers on the King’s Road won’t encounter any thievery along the way!

The Founder and CEO of eMoov, Russell Quirk, comments: “It’s always interesting how the popularity of a show can have an impact on the property industry as, of course, by attracting more people to the area in terms of tourism, the wider economy and property market can benefit.

“The name of a road or house can also help influence or, in some case, deter buyers for a variety of reasons, although purchasing solely based on your love for Game of Thrones is probably a bit drastic.”

ICA-JL-VOTE-FOR-US

Could tenancy deposit schemes become a thing of the past?

Published On: September 11, 2017 at 10:09 am

Author:

Categories: Property News

Tags: ,,,

This week saw a deposit protection service covert to deposit-free renting, with another urging users to abandon insurance-backed tenancy deposit schemes.

Managing Director of the Deposit Protection Scheme (DPS), Julian Foster, this week advised customers to move their deposits to a custodial scheme. This is where DPS holds deposit money on behalf of agents and landlords in order to reduce operational costs, something that will prove important ahead of the impending ban on agent fees.

Mr Foster claims that ‘custodial schemes provide landlords and tenants with complete peace of mind over the security of their money.’

Deposits

Another tenancy deposit protection service, TDS, has also moved to announce that they are forming a partnership with new deposit replacement insurance firm Zero Deposit. The TDS will then provide deposit resolution services to the business, which it has invested in and subsequently will have a seat on their board of directors.

North Eased-based deposit reform campaigner Ajay Jagota described this as a ‘deathbed conversion’ and a, ‘definite and decisive proof that the deposit establishment knows the game is up.’

Mr Jagota maintains a register of the total amount letting agents and landlords are convicted of stealing from insurance-based tenancy deposit schemes. Convictions this year are on course to exceed the £1m stolen during 2016.

Jagota, Managing Director of Deposit Replacement Insurance solution, Dlighted, said: ‘Taken together these bits of news are definitive and decisive proof that the deposit establishment knows the game is up.’

‘I welcome the DPS’ unspoken admission that insurance tenancy deposit schemes are unsustainable and indefensible. I can’t interpret their actions as anything other than them waving the white flag and preparing for the end the insurance model.’

Not only is this model an insurance policy that doesn’t actually insure anyone, we have seem time and time again how easy it is for for crooked agents and landlords to misappropriate and steal tenants deposits from this “insurance” scheme.’[1]

Could tenancy deposit schemes become a thing of the past?

Could tenancy deposit schemes become a thing of the past?

Conversion

Continuing, Mr Jagota noted: ‘I also welcome the TDS’ apparent deathbed conversion to deposit-free renting. However, their involvement makes me question quite how revolutionary this new venture is. At first glance many of the shortcomings of the traditional deposit protection scheme system remain in place, not least the retention of and reliance on an old-fashioned dispute resolution service.

As a landlord and letting agent one of the primary reasons I set out to do things differently was the simple fact that this process often takes many months to resolve. That delay leave landlords out of pocket and in some cases unable to carry out vital repairs, and as a result unable to rent out their properties.

I genuinely welcome the competition, but I can’t help having the suspicion that this is the equivalent of slapping a spoiler on an old banger and claiming it’s a supercar.’[2]

[1] http://www.propertyreporter.co.uk/landlords/is-the-game-up-for-tenancy-deposit-protection-schemes.html

 

Lettings Complaint Surge comes as No Surprise, Says AIIC

Published On: September 11, 2017 at 9:38 am

Author:

Categories: Property News

Tags: ,,

A lettings complaint surge, recorded by the Property Redress Scheme (PRS) in 2016, comes as no surprise to the Association of Independent Inventory Clerks (AIIC)…

In August, the PRS published its annual report, which showed a 40% increase in complaints made last year compared to 2015.

Lettings Complaint Surge comes as No Surprise, Says AIIC

Lettings Complaint Surge comes as No Surprise, Says AIIC

The organisation also revealed that either tenants (51%) or landlords (35%) made more than 85% of the complaints that it received.

Property management (29%), deposits (27%) and problems with rent (15%) were the most common complaints received by the redress scheme in 2016.

The AIIC notes that the complicated nature of the lettings process, alongside an increase in legislation, could be responsible for the lettings complaint surge.

According to the PRS, the overall rise in complaints is partly down to its membership growth, but also partly down to a heightened public awareness of the formal complaints procedure – a sentiment echoed by the AIIC.

The Joint Chair of the AIIC, Danny Zane, says: “Here at the AIIC, we were not surprised to see that the vast majority of complaints received by the PRS in 2016 were made either by landlords or tenants.

“Rental relationships can be complicated, and the more transient nature of the letting sector increases the scope for disharmony between tenants, landlords and letting agents.”

He adds: “In recent years, agents, landlords and even tenants have been required to jump through more legislative hoops, and so there is now more potential for things to go wrong and, put simply, more things to complain about.”

Deposit problems were one of the most common complaints made last year, and the AIIC says that, if more letting agents and landlords provided professionally compiled, independent inventories, then the number of complaints relating to deposits could be reduced.

We have created a comprehensive guide to help landlords put together a thorough inventory: /guide-compiling-good-inventory/

Emma Glencross, another Joint Chair of the AIIC, continues: “An impartial and professional inventory comprehensively details the condition and contents of the property at the start and end of the tenancy.

“They help to reduce disputes at the end of a tenancy, as landlords can make fair and legitimate deposit deductions, while showing tenants exactly what they are being charged for.”

Zane concludes: “That’s why we’re of the long-standing viewpoint that independent, professionally compiled inventories should be made compulsory by the Government.

“If all parties provided independently compiled, professional inventories to a uniform standard, then there would be fewer complaints relating to deposits.”

ICA-JL-VOTE-FOR-US

Number of buy-to-let landlords is falling

Published On: September 11, 2017 at 8:58 am

Author:

Categories: Landlord News

Tags: ,,,

An interesting new investigation has revealed that the number of buy-to-let landlords in Britain has dropped by 154,000 since 2015.

This was despite the volume of rented homes increasing by 171,000 over the same period, according to the report conducted by Countrywide.

Landlord Falls

Countrywide’s latest monthly letting index for August shows that the number of landlords has dropped in the last two years, owing largely to the tax changes implemented by the Government.

Despite these changes, there has been a rise in the supply of available properties to rent, from 4.9m in 2015 to 5.1m today.

The number of landlords owning a single buy-to-let property has fallen from 73%, down from 86% in 2010. On the other hand, the number owning 10 or more properties rose by 33% in the last ten years. The average portfolio size owned by buy-to-let investors currently stands at 1.44.

Regional Rates

Landlords based in the North East of England are likely to own the most properties, with an average of 1.54. This was followed by Yorkshire and the Humber (1.52) and London (1.51).

In terms of rents, the average for new lets in Britain rose to £954pcm in August, up by 1.6% on the same period one year ago.

Rents increased mostly in the South West, Scotland and East of England, increasing by 4.7%, 2.8% and 2.5% respectively.

Number of buy-to-let landlords is falling

Number of buy-to-let landlords is falling

Portfolios

Johnny Morris, Research Director at Countrywide, said: ‘The increasing number of rented homes is being driven by landlords expanding their portfolios rather than new landlords entering the market.’

‘Increasing regulation in the sector accompanied by recent changes to income tax relief on mortgage interest payments seem to be favouring more experienced, professional landlords.  Despite expanding portfolio sizes the sector is still characterised by those owning just one or two homes, 73% of landlords own one home.’

‘Rents rose in all regions across Great Britain to stand 1.6% up on the same time last year.  The number of landlord purchases continues to remain low which is feeding through into fewer homes on the rental market.’

‘Rents in London rose for the second consecutive month, driven by a pickup in rents in outer London.’[1]

 

[1] https://www.landlordtoday.co.uk/breaking-news/2017/9/fewer-landlords-cash-in-on-rising-rents-despite-expanding-portfolios