Written By Em

Em Morley

Top Tips to make sure your Property Offer is Accepted

Published On: September 11, 2017 at 8:16 am

Tags: buying a property,estate agents,first time buyers,home movers,moving home

Falling in love with a dream property is something that most homebuyers will experience, but there is always a risk that your property offer won’t be accepted and you’ll lose out.

NAEA Propertymark (the National Association of Estate Agents) has a few simple tips that you can follow to help you secure your perfect property, whether you’re a landlord, home mover or first time buyer…

Katie Griffin, the President of NAEA Propertymark, says: “Finding your dream property is no mean feat, but, when you do eventually find it, the biggest task is keeping hold of it. It’s really important to try and connect with the seller or agents involved, but keep a clear head and make a strong case for why the seller should choose you. An ideal buyer will show that they have done their homework, are clear about how quickly they can move and that they are taking the process seriously.”

Become an expert

Top Tips to make sure your Property Offer is Accepted

Before you place a property offer, do your homework so that you can go into the process comfortable and confident. There is lots of information available on the internet about the home buying process and the local area, so take advantage. Look into what similar properties in the area have sold for, so that you’re confident the price you’ve offered is the right one.

Get your finances in order

Confirm that you can get a mortgage and have enough money for a full deposit before you start your search; there’s nothing worse than falling in love with a property you can’t afford. Estate agents must verify your ID before solicitors are instructed, so remember to take in your passport and a utility bill, to provide your proof of funds. Estate agents shouldn’t accept an offer without confirmation that the prospective buyer has their finances in place.

Make your position clear

First time buyers with no chain make for attractive buyers. Your seller may be looking to move as soon as possible and, if you’re in a good position, you should make that clear, as it will make you more attractive than other potential buyers.

Build relationships

Building a relationship with your estate agent will help to ensure that you’re getting the best possible advice regarding your purchase. Try to go into their offices rather than having a phone call, and sit down with them face-to-face to discuss your requirements.

Act quickly

Vendors are busy and don’t want to deal with time-wasters. If you like the look of a property, don’t dawdle – be the first to book a viewing. Being proactive is one way to show the seller that you’re a serious contender.

Find the right price

Although a bit of negotiating is to be expected, don’t go too low. This can cause tension with the vendor, and you may end up losing the property altogether if someone else offers a higher bid. You should also try to avoid round numbers, to prevent making the same bid as someone else.

Protect your purchase

Once your property offer has been accepted, ask for the home to be taken off the market straightaway. This can minimise the chances of additional offers coming in over and above yours, and finding that you’ve been trumped.

If you or someone you know is planning to make a property offer in the near future, make sure they stick to these top tips!

New property investment platform launches

Published On: September 8, 2017 at 11:54 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,Homegrown,investment,residential investment

A new FCA authorised residential property investment platform has been launched today – focusing solely on the construction of new homes.

Homegrown is to enable retail investors to access residential development projects alongside institutional investors and is targeting average net returns of 15% per annum. The minimum investment permitted is £500 per project.

Developments

The platform is only to invest in pre-vetted and fully underwritten residential developments that have already received planning permission and bank finance.

Then, Homegrown is to add its own layer of due diligence , which will include analysing financial assumptions and reports, undertaking sensitivity analysis and investing in projects with developers with a strong track record.

The firm’s aim is to raise funds available to mid-size developers and to ‘democratise property investment, which historically has been restricted to high net worth and institutional investors.’

Homegrown is to focus its activities on urban areas when there is heightened demand – most predominantly in London and the South East.

New property investment platform launches

Everyday Investors

Anthony Rushworth, CEO of Homegrown, commented: ‘Homegrown is about giving everyday investors access to the often superior development returns that are typically only available to professionals and institutions. It also helps them to do their bit in solving the housing crisis by providing property developers with much needed equity finance.’

‘We also like to think we’re filling a major hole for many UK investors left by the buy-to-let exodus. With the raft of tax changes imposed on it, buy-to-let is no longer the investment it was and investors are increasingly looking for alternatives. Homegrown, by contrast, does away with the reliance on rental yields and long term property market growth.’

‘Crucially, the developments we put on our platform have already been underwritten and approved by some of the sharpest minds in the business, and we take the cream of that crop.’

‘There are clearly risks involved with property investment but we work hard to de-risk our investments as much as we can. The platform also provides investors with an opportunity to easily diversify their risk by spreading their investment across a number of developments which are being added to our platform all the time.’[1]

[1] http://www.propertyreporter.co.uk/business/new-residential-property-investment-platform-launches.html

Scottish Government provides new regulations for landlords

Published On: September 8, 2017 at 9:58 am

Author: Em Morley

Categories: Landlord News

Tags: landlords in Scotland,Scotland,Scottish landlords

New landlord registration enforcement guidelines have been issued by the Scottish Government, to all local authorities informing them on regulating landlords in the private rented sector.

The Landlord Registration Statutory Guidance highlights best practice in order to assist local authorities to regulate the system effectively. This also requires councils to maintain a register of private landlords, ensuring that only those deemed as ‘fit and proper’ are put on the register.

Private Rental Sector

Kevin Stewart, Minister for Local Government and Housing, noted: ‘The private rented sector plays an increasingly important role in Scotland’s housing system. Around 760,000 people in Scotland live in privately rented homes – twice the number of ten years ago.’

Scottish Government provides new regulations for landlords

‘I want to see a sector that is characterised by more good quality homes, being managed professionally and where tenants feel secure. Where there are poor standards, local authorities should be taking tough, targeted enforcement to ensure every landlord is fit for purpose.’

‘I would like to encourage all local authorities to use this guidance and examples of best practice to raise standards in the sector and ensure greater consistency in enforcement across Scotland,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/9/new-guidance-to-regulate-who-can-operate-as-a-private-landlord

Homeowners have Already Paid £303.6m in High Street Estate Agent Fees in 2017

Published On: September 8, 2017 at 9:36 am

Author: Em Morley

Categories: Property News

Tags: estate agents,high street estate agents,online estate agents,property sales

Homeowners in England and Wales have already forked out £303.6m in high street estate agent fees in 2017 so far.

This is the finding of the latest study by online estate agent eMoov.co.uk, which found that the average high street estate agent has already lowered its standard fee from 1.6% plus VAT to 1.3% including VAT, due to the growth of the online sector.

Using this lower fee, eMoov has looked at the number of properties that have completed so far this year and what they have sold for, before applying the 1.3% charge to see how much homeowners have paid to sell their properties in 2017 so far.

The agent also accounted for the online share, which currently makes up 5.51% of the market, removing this from the total fees charged.

The research shows that, so far in 2017, £26 billion worth of property has already been sold, equating to £303.6m in high street estate agent fees.

Homeowners have Already Paid £303.6m in High Street Estate Agent Fees in 2017

As expected, the higher price of London properties means that the capital has experienced the greatest amount of fees paid (£70,146,490) so far this year, and this is no doubt higher given that the average fee in London is much higher than 1.3% including VAT.

The South East and East of England are also home to some of the highest fees paid, with Surrey (£13,303,190), Essex (£10,250,462) and Kent (£9,404,396) also seeing millions of pounds paid in commission. Greater Manchester is home to the fifth highest amount (£9,094,250).

The top ten is completed by Hertfordshire (£9,093,068), Hampshire (£8,964,127), the West Midlands (£7,473,729), West Yorkshire (£6,726,050) and West Sussex (£6,369,375).

The Founder and CEO of eMoov, Russell Quirk, comments: “Despite the high street sector being pressured to lower their commission to an average fee of 1.3% including VAT, due to growing competition by online and hybrid agents, this research demonstrates the eye-watering amount of money that’s still being paid due to the outdated practice of charging based on a property’s value.

“Of course, not all agents charge as much, but there are many agents that will still charge more and, with hybrid and online agents charging a fixed fee with a now proven service track record, it remains to be seen why you should pay more to sell your house because it is of a higher value.”

He continues: “The only silver lining to this research is that, in years gone by, this figure would have been a lot higher. Although the online and hybrid sector still only accounts for 5.51% of the market, it still represents a considerable saving and one that is only set to keep increasing as we take more market share.”

PCL rents unchanged during August

Published On: September 8, 2017 at 9:07 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,lettings market,prime central london,rental values

Average rents in the Prime Central London residential property market were consistent for the second straight month in August, according to the latest report from Knight Frank.

The firm’s monthly review shows that average rental values fell by 3.4% in August, the slowest decline in over 12 months.

Decline

A decline of 1% in the six months to August was also the lowest fall on this basis since December 2015.

Tom Bill, head of London residential research at Knight Frank, noted that the figures provide further evidence that a recent run of declines in the lettings market is starting to level out.

Bill said: ‘The fall in rental values in prime central London over the past two years has primarily been due to high levels of stock, which means that landlords have had to reduce rents in order to attract tenants.’

‘Higher levels of rental properties are the result of slower activity in the sales market following a succession of tax hikes, however this trend has started to reverse as asking prices adjust and demand improves,’ he continued.[1]

PCL rents unchanged during August

Favourable

In addition, Mr Bill notes that curbs on mortgage interest tax relief and the 3% stamp duty surcharge have seen the market become more favourable for landlords, due to less new rental stock appearing on the market.

45% of landlords in prime central London have reviewed their portfolio size, according to a separate report carried out by BDRC Continental in August. Across the whole of the UK, 19% of landlords with 20 or more rental properties have cut the size of their portfolio.

Knight Frank’s data indicates that there was a 6% decline in the number of new rental properties coming onto the market in prime central London between January and July 2017.

This comes as UK Finance has revised down its forecast for buy-to-let lending in 2018 by 13%, from £38bn to £33bn.

[1] http://www.propertywire.com/news/uk/average-rents-londons-prime-property-sector-unchanged-august/

Demand for Shared Student Accommodation Surges in North West

Published On: September 8, 2017 at 9:02 am

Author: Em Morley

Categories: Property News

Tags: North West,student landlords,student property

A shortfall of student beds in university halls of residence has led to a surge in demand for high-quality shared student accommodation in the North West, particularly Liverpool, according to The Mistoria Group.

Demand for Shared Student Accommodation Surges in North West

The property investment specialist has seen demand for shared student accommodation surge by 35% in the city over the past year.

Demand for shared student accommodation is growing due to rising numbers of students attending the three universities in Liverpool. Last year, there were 60,000 students studying in the city – up by 20% on the previous year. It is expected that numbers will rise again this year, with 60% of these students requiring accommodation.

Many universities don’t have sufficient accommodation to meet demand from first-year students – who usually live in the university’s halls of residence – creating demand for privately owned accommodation.

According to Student Accommodation Tracker, just 28% of student accommodation currently meets rising expectations.

Mish Liyanage, the Managing Director of The Mistoria Group, says: “There is a very real shortage of quality student accommodation in Liverpool, and demand is consistently outstripping supply. The number of student rooms has swelled over the last five years, but there still remains a shortfall.

“We have seen a surge in students looking for high quality, HMO [House in Multiple Occupation] accommodation with close proximity to the universities, and occupancy across our student accommodation is at 98%.

“Shared student accommodation in Liverpool gives investors excellent yields. There are many areas of Liverpool that are ideal for student property investment, such as Kensington, Wavertree, Toxteth, Kensington Fields.”

He explains: “Investors can acquire a high quality, three-bed HMO, which will house students from £120,000 onwards. An average room in an HMO can be rented for £85 per week including bills, but ensuites can be as high as £110 per week. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth).

“Student property is the fastest growing sector of the market, giving investors strong returns that are well ahead of standard BTL [buy-to-let]. The growing numbers of student tenants in Liverpool is driving demand for quality accommodation in the city, and this is likely to be a long-term trend.”

Liyanage adds: “Liverpool is the UK’s top buy-to-let hotspot, delivering investors average rental yields of 8%, once mortgage costs are taken into account. As housing and mortgage costs have the biggest influence on yield, Liverpool takes the top spot, as it has a combination of low average house prices and strong rents.”

Landlords, with demand for shared student accommodation surging, investment in this type of property could prove a lucrative long-term option for your portfolio.