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Em Morley

The Six Steps to Creating a More Energy Efficient Society

Published On: June 5, 2017 at 9:35 am

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With Thursday’s (8th June) General Election just around the corner and the Brexit process looming, leading energy performance measurement specialist Elmhurst Energy has renewed its manifesto for a more energy efficient society and the six simple steps we can take to move closer to this goal.

The Six Steps to Creating a More Energy Efficient Society

The Six Steps to Creating a More Energy Efficient Society

The Managing Director of Elmhurst Energy, Martyn Reed, says: “It’s important that climate change and the need to reduce our carbon footprint remains a priority and it is well recognised that we need to reduce our carbon emissions, of which buildings contribute around 30%.

“Undertaking energy efficiency measures can provide a great return on investment, and save families and business money, whilst also reducing carbon emissions for the country as a whole. At Elmhurst Energy, we have written a manifesto to present to Government, outlining six simple steps to help create an energy efficient society.”

The manifesto is as follows:

  1. Support the energy efficiency sector by committing to maintain all EU climate change legislation post-Brexit.
  1. We need to create a clear Government strategy that reduces carbon emissions by reducing demand as well as decarbonising energy generation.
  1. We need to ensure an appropriate focus on energy efficiency initiatives that benefit the fuel poor, those families on low incomes and live in the least efficient homes.
  1. The validity period for Energy Performance Certificates (EPCs) should be reduced to three years so the information is meaningful and up to date.
  1. Have EPCs at the core of all future energy initiatives to allow successes to be measured and compared.
  1. Extend the role of energy assessors to include best practice advice to families on how to reduce fuel bills and make their homes warmer.

Reed adds: “Supporting these steps will provide a route to achieving change and a more energy efficient society. We must not allow energy issues to be ignored in what is a time of change in the United Kingdom. We will continue to work towards a better future where people are removed from fuel poverty.”

Landlords, remember that new energy efficiency laws will come into place from 1st April 2018, requiring all new tenancies on private rental properties to have an EPC rating of E or above.

Manchester still a hotspot for buy-to-let

Published On: June 5, 2017 at 8:57 am

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New research from Armistead Property has revealed that Manchester remains one of the top 10 places in the UK for rental growth.

Average yields in the city were found to total nearly 9%.

Manchester Rents

The top postcode area in terms in rental yields in the region was M6, which covers Pendleton, Claremont, Langworthy and Salford. Rental yields here average at 8.84%, with typical monthly rents of £1,034.

With this postcode area situated close to the middle of Manchester and the University of Salford, this postcode region is popular with students and young professionals.

The M14 postcode area, covering Moss Side, Rusholme and Fallowfield, sees average rents of just over 8%. Once again, this postcode is popular with students-due to its close proximity to the University of Manchester campus.

Other postcode regions of the city offering good returns are M5 and M38, offering returns of 8% and 7% respectively.

Revival

Peter Armistead, Director of Armistead Property, observed: ‘Manchester has undergone a revival following significant investment, which has funded major regeneration and brought new jobs to the powerhouse of the North. Manchester has seen £800 million invested in the Airport City, £235 million for the Sir Henry Royce Institute for Advanced Materials and The Factory, with £110 million dedicated to the arts. Employment in the city is forecast to get an additional boost, with expected growth of 3.8% between 2015 and 2020.’[1]

‘It’s no surprise that both UK and international investors are queuing up to purchase BTL property.  Manchester beats London hands down on affordable property prices. Over the last three years, 45% of residential sales across the city were completed for less than £125,000. Manchester also offers much better rental yields, with between 8-9% in some postcodes, compared with an average of 4-6% in London,’ he continued.[1]

Manchester still a hotspot for buy-to-let

Manchester still a hotspot for buy-to-let

Young Demand

Moving on, Mr Armistead noted that, ‘There has been a surge in demand for rental accommodation with increasing numbers of students and young professionals working, or studying in the City. Manchester’s population is growing and is expected to surpass three million by 2035.’

‘The housing market in being bolstered by a major regeneraton north east of Victoria station, where 8,000 new homes are being built over the next 10-15 years. There’s also a £1bn plan for another 8,000 homes, including the conversion of the Murrays’ Mills and a further 3,000 homes on the former ITV Granada studios at St John’s Quarter,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/manchester-remains-a-top-btl-hotspot.html

 

Property price growth slows for third straight month

Published On: June 1, 2017 at 11:54 am

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The latest research from Nationwide has shown that UK property prices have fallen for the third consecutive month – the first time this has happened since 2009.

May’s data indicates that yearly house price growth slid to 2.1% – the weakest in nearly four years.

Election Uncertainty

Nationwide looked at house price movements in the months around previous elections and the EU referendum last year. Its analysis found that previous elections do not seem to have generated much volatility in property prices, or significant changes in trends.

Robert Gardner, Nationwide’s Chief Economist, noted: ‘If history is any guide, the slowdown is unlikely to be linked to election-related uncertainty. Housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home.’[1]

‘On the whole, prevailing trends have been maintained just before, during and after UK general elections. Broader economic trends appear to dominate any immediate election-related impacts. It is too early to conclude whether the slowdown in house price growth is merely a blip, a reflection of the impact of the squeeze on household budgets, or is due to mounting affordability pressures in key areas of the country,’ he continued.[1]

Moving on, Gardner said: ‘Given the ongoing uncertainties around the UK’s future trading arrangements and the upcoming election, the economic outlook is unusually uncertain, and housing market trends will depend crucially on developments in the wider economy.’

‘Nevertheless, in our view, household spending is likely to slow in the quarters ahead, along with the wider economy, as rising inflation increases the squeeze on household budgets. This, together with mounting housing affordability pressures, is likely to exert a drag on activity and house price growth in the quarters ahead.’[1]

Property price growth slows for third straight month

Property price growth slows for third straight month

Momentum Loss

Russell Quirk, founder and CEO of eMoov.co.uk, observed: ‘A third consecutive drop may seem like a reason to worry for UK homeowners, but house prices still continue to climb despite the slowdown in the rate of growth.’

‘It is unclear as to whether the market is losing momentum or if buyer demand is unseasonably hibernating due to the oncoming election, but Nationwide have been quick to highlight that previous elections have had little impact on traditional house price trends.
It’s fair to say, however, that previous years were a tad more routine that a snap election called in the middle of negotiations to leave the EU and it is likely that the market is seeing an influence from both sides.’

‘House prices, along with the gap when compared to earnings, have continued to increase and such a pattern is unsustainable in the long term. It is likely that we will see the market let off a little steam and naturally adjust over the coming months and overall it should stabilise once the election dust has settled and buyer confidence returns to full force.’[1]

[1] http://www.propertyreporter.co.uk/property/house-prices-fall-for-third-month-in-a-row.html

 

More landlords are using a letting agent

Published On: June 1, 2017 at 9:33 am

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A survey of property investors has uncovered that the number of landlords using a letting agent to assist them in managing their property has risen since the end of 2016.

61% of landlords said that they presently use a letting agent to manage their properties- an increase of 7% since the final quarter of last year. This rise goes against tradition, with the number of landlords using an agent normally more consistent in number.

Self-Managing Decrease

In addition, the research shows that the proportion of landlords choosing to self-manage their property has fallen by 7% in the last year – from 46% to 39%.

What’s more, more landlords in the North East were revealed to use an agent in comparison to any other region of England. This said, agent usage is greater in Scotland with 79%.

On the other hand, the North West is the region where landlords are least likely to use an agent, with falls of 5% since the end of 2016.

The news of landlords favouring the use of letting agents is interesting, given the proposed ban on charging fees to tenants.

More landlords are using a letting agent

More landlords are using a letting agent

Changing Trends

Richard Lambert, CEO at the National Landlords Association, observed: ‘As landlords plan ahead to compensate for the tax changes over the next few years we would expect to see the number who use an agent to slowly fall away, and for more to start considering whether they are able to manage their properties themselves.’[1]

‘However, this sudden spike, which is completely out of step with recent trends, completely turns this theory on its head. The big question is whether or not it’s a blip or if it will continue to rise,’ he added.[1]

Richard Price, Executive Director at UKALA, also stated: ‘There have been some regional fluctuations, but overall these findings show that an increasing proportion of landlords rely on agents at present, which is testament to the professional work undertaken by the vast majority of agents in the sector.’[1]

‘It’s an uncertain time for anyone who owns a buy-to-let property, so the steady hand of a reputable agent is exactly what many landlords are looking for right now.’[1]

[1] http://www.propertyreporter.co.uk/landlords/letting-agent-use-sees-sudden-spike-of-activity.html

Liverpool seeing surge in student demand

Published On: June 1, 2017 at 8:55 am

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The most recent analysis from The Mistoria Group has shown a significant rise in tenant demand across Liverpool.

Demand has increased by 19% year-on-year, with an average of 6.6 tenants looking for every shared room of a new rental abode.

Booming Buy-to-Let

Data from the report indicates that Liverpool has a booming buy-to-let market, with demand for high-end accommodation continuing to outstrip supply.

Currently, Liverpool boasts a student population of nearly 60,000, with 60% of these needing accommodation.

In addition, there is great demand for both new and renovated properties for the sole purpose of students- many of who are searching for affordable, shared properties.

The Mistoria Group suggests that over the last year, rents for students in the city have increased by 23%, to now sit at an average of £128 per week.

Liverpool seeing surge in student demand

Liverpool seeing surge in student demand

Surge

Mish Liyanage, Managing Director of The Mistoria Group, noted: ‘Our lettings office in Liverpool has been operating for two years and during this period, we have seen a surge in demand for rental property from student and professional tenants.  Liverpool is a vibrant city with a buoyant job market and unsurprisingly, many young people want to work and live here.’[1]

‘Liverpool is booming.  A multi-million pound investment in economic regeneration is transforming the city and over the last decade, the it has attracted more than £5 billion of investment in property, infrastructure and services.  According to Knight Knox, these regeneration projects have seen Liverpool become home to some of Britain’s most ambitious residential, commercial and leisure developments, spearheaded by the widely successful Liverpool ONE project, the shopping and leisure destination, which has refocused the whole city centre towards the waterfront,’ he continued.[1]

High Yields

Liyanage went on to note: ‘There is no doubt that buy-to-let investment in Liverpool has gone from strength to strength, with landlords enjoying yields of over 10%.  Many property investors are clamoring to snap up HMO properties in the city’s BTL hotspots, such as the L6, L7, L8 and L15 postcodes. With savings earning very little, many investors are recognising that BTL property can give them much better returns.’[1]

‘Rental yields within one mile radius from the Universities/City are excellent.  Our research shows that student house share rents start at around £85 per week per room, including bills.  However, ensuites can be as high as £115 per week. Investors can acquire a high quality three bed, fully-let HMO near a university, which will house students from £120,000 upwards. The return on investment is very attractive too, with an average of 13% per annum (8% cash rental and 5% capital growth). We have seen almost 32% increase in the sale of our arm chair HMO deals over the last 12 months compared to 2015-2016,’ he concluded.[1]

 

[1] http://www.propertyreporter.co.uk/landlords/booming-tenant-demand-outstripping-supply-in-liverpool.html

Many investors struggling to secure mainstream funding

Published On: May 31, 2017 at 8:00 am

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Around 75% of buy-to-let investors were able to raise alternative finance during the last year, after struggles to obtain mainstream funding.

According to mtf data, 44% of these investors saw affordability as their main obstacle in obtaining mainstream funding- followed by adverse credit (34%) and stricter lending criteria (22%).

Alternative Lending

This said, 47% of investors took out a secured loan as an alternative, with 39% opting for a bridging loan.

Another three-quarters of landlords questioned intend to expand their portfolio during the remainder of 2017. Encouragingly, 67% are looking in London, with 33% targeting the South East. This will come as a relief following reports of landlords leaving the sector as a result of the recent alterations to mortgage interest tax relief.

When asked how the sector could be improved to help landlords, the majority responded by saying that they would like the see the additional 3% Stamp Duty surcharge on buy-to-let properties scrapped.

Many investors struggling to secure mainstream funding

Many investors struggling to secure mainstream funding

Tough

Tomer Aboody, director of mtf, noted: ‘The results from our Q1 Property Investor Survey reflect the impact of stricter affordability and stress testing from lenders on professional property investors’ ability to obtain mainstream funding.’[1]

‘It’s certainly been a tough 18 months for landlords but alternative lenders are stepping in to meet the needs of borrowers,’ Aboody added.[1]

[1] http://www.propertyreporter.co.uk/finance/majority-of-property-investors-unable-to-secure-mainstream-funding.html