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Em Morley

Property asking prices rise during September

Published On: October 12, 2016 at 2:08 pm

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Property prices in the UK rose by 0.7% during September, with the East of England showing the most prominent rises.

However, a report from Home.co.uk suggests that many sellers are being too optimistic on their pricing.

Rises

Month-on-month, property asking prices rose by 0.7% in England, by 0.3% in Scotland and by 0.2% in Wales. Yearly, prices are up by 4.4%, 5.3% and 1.3% than at the same period in 2015.

In addition, supply has found to have risen by 11% year-on-year across Britain. This was particularly driven by the South and East of the England. In London, supply rose by 19%, in the South East by 23% and the East by 30%.

The largest month-on-month rise in asking price was found in the East of England, with 1.1%. This took the average asking price in the region to £342,915, some 11.5% greater than one year previously.

Next came the South East and the East Midlands, with rises of 1% recorded. This pushed the average asking price of property in these regions to £394,837 and £211,328 respectively. Annually, there were increases of 4.2% and 5.5%.

Property asking prices rise during September

Property asking prices rise during September

Muted

More muted growth was evident in the West Midlands, with asking prices up by 0.5% month-on-month and 6.5% year-on-year. The North West saw rises of 0.1% and 4.2%, Yorkshire and the Humber 0.2% and 3% and the North East 0.2% and 1.1%. Asking prices in these regions are now £225,664, £181,459 and £157,577 respectively.

The report also indicates that a sign of fragility within the market is evident with a growing number of sellers cutting asking prices. This is currently at a three-year high in Britain, with Home.co.uk expecting more to follow.

Doug Shepherd, director of Home.co.uk, noted: ‘Supply is increasingly rapidly in the East, South East and London. What’s more, the pricing of these new instructions is looking rather optimistic.’[1]

[1] http://www.propertywire.com/news/europe/asking-prices-across-uk-sellers-optimistic-index-suggests/

 

 

Buy-to-Let Investors Return to the Property Market

Published On: October 12, 2016 at 10:29 am

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Number of UK buy-to-let businesses increases 2.1%

Buy-to-let investors have returned to the property market, following the post-Stamp Duty deadline lull in April, according to Rightmove.

The property portal’s Rental Trends Tracker for the third quarter (Q3) of the year found that buyer enquiries from potential landlords and buy-to-let investors were up by 30% on May, following a short-

Buy-to-Let Investors Return to the Property Market

Buy-to-Let Investors Return to the Property Market

term dip after the 3% Stamp Duty surcharge for second homes was introduced on 1st April.

New rental listings on Rightmove were 6% higher in Q3 than the same period of 2015, found the report.

In addition, the research revealed that the average rent is up by 0.5% on a quarterly basis, and 3.2% on the year, to stand at £779 per month. This is down from quarterly growth of 2.7% and a yearly rise of 4.1% in Q2.

Rents continue to drop in London, by 0.7% on Q2 and 1.5% annually, to an average of £1,885 a month.

The most in-demand area outside of London for rental properties was Ashton-Under-Lyne in Greater Manchester, where the average rent on a two-bedroom property was £524 per month. This was followed by Wellingborough in Northamptonshire, where the typical rent stands at £660.

Rightmove also analysed the returns that landlords making last-minute purchases before 1st April would have received, by looking at capital price growth and average rent prices since the Stamp Duty changes.

The best returns for buy-to-let investors were found in Southend, Essex, where house prices rose from £187,515 in Q1 to £210,353 in Q3, and the average rent was £4,816, giving a total return on investment of 14.7%.

In London, the highest returns were found in East Croydon (13.8%) and Greenford (13.4%).

The Head of Lettings at Rightmove, Sam Mitchell, comments: “Investor activity has bounced back following the Stamp Duty changes, though some agents report that many investors are looking to knock sellers down on their asking prices to make up for the additional Stamp Duty they now need to pay.”

She adds: “New rental supply has held up, despite concerns that the Stamp Duty changes would lead to less fresh stock.”

Have you purchased a buy-to-let property since the Stamp Duty change was introduced?

Buy-to-let mortgage lending defies tax changes

Published On: October 12, 2016 at 9:39 am

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Certainly, 2016 has seen landlords faced with some challenging legislations changes, as the Government tries to shift the balance of the housing market.

Former Chancellor George Osborne expressed his desire to return the market to a ‘level playing field’ between homeowners and investors. However, despite the raft of harmful regulation alterations, buy-to-let mortgage lending has actually seen a surge in activity during the last two months.

Increases

According to mortgage provider Connells, the introduction of the 3% extra stamp duty surcharge in April and other tax changes has not deterred investors. The firm’s valuation department reports that valuations for buy-to-let mortgages are actually up by 0.4% on the same period in 2015.

John Bagshaw, of Connells, noted: ‘Despite a bruising period of Government intervention, the buy-to-let sector has been finding its footing over the last couple of months, recovering from the 3% stamp duty surcharge, the restriction of tax relief on mortgage finance costs to basic rate tax only, and the removal of 10% wear and tear allowance.’[1]

‘The Government’s intervention had a significant effect in the short term but we appear to have recovered the lost ground now,’ Mr Bagshaw added.[1]

Buy-to-let mortgage lending defies tax changes

Buy-to-let mortgage lending defies tax changes

Remortgaging

In addition, Connells report that remortgaging valuation activity increased by 14.7% year-on-year. Many more first-time buyers are still entering the market to take advantage of the Help to Buy mortgage guarantee scheme, which comes to an end this December.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/10/sharp-rise-in-buy-to-let-mortgage-lending-despite-stamp-duty-hike

 

Over a third of landlords are concerned over Brexit

Published On: October 12, 2016 at 8:49 am

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New findings from the National Landlords Association have revealed that over a third of residential landlords are concerned about the impact of Brexit.

According to a survey conducted by the NLA, 35% feel that leaving the EU will have a detrimental impact on their ability to attract renters in the future.

Uncertainty

Additional data from the report shows that 39% of investors feel Brexit will have no significant impact. 21% said they were unsure, while 5% feel it will have a positive effect.

The research was carried out following Prime Minister Teresa May’s announcement that Article 50 will be triggered by March 2017.

By region, the findings show that over half of landlords in central London (55%) feel that Brexit will have a negative impact on their business. However, just 22% of those in the North East feel that this will be the case.

Over a third of landlords are concerned over Brexit

Over a third of landlords are concerned over Brexit

Concern

Richard Blanco, representative of the NLA, noted: ‘These findings clearly show that a significant proportion of landlords are concerned about what Brexit will mean for their lettings business so we wanted to try to understand and make sense of the situation.’[1]

‘We now know that Article 50 will be triggered soon, but landlords still have lots of questions like what will happen to rental demand as a consequence of Brexit, will house prices fall, or should I rethink my investment strategy?’ he added.[1]

The full regional breakdown on how landlords feel Brexit will impact on their business is evident in the table below:

Property location Brexit will have positive impact Brexit will have negative impact
East Midlands 14 35
Yorks & Humber 12 24
Wales 9 33
North West 8 34
East England 7 34
South West 6 33
South East 6 38
North East 5 22
West Midlands 4 28
Scotland 4 39
London outer 3 46
London centre 2 55

[1]

[1] http://www.propertyreporter.co.uk/landlords/brexit-worries-for-35-of-landlords.html

How to Make a Stylish Living Space on a Budget

Published On: October 12, 2016 at 8:20 am

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Categories: Property News

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A stylish property is unlikely to stay empty for long, and there will be more demand from potential tenants looking to rent.

However, with all the costs involved with furnishing a property, it’s not always financially viable to decorate with all the latest trends and most expensive furniture.

That said, it is possible to transform a home into a stylish space using cheap but durable furniture, and simply rearranging the furniture and making the best use of the space, and it doesn’t have to cost much at all.

Install good lighting

Tenants appreciate a house with a lot of light. Bright and airy properties let quickly, especially in the main living room and kitchen. Avoid fluorescent lighting as it can tire the eyes and make the room look off-colour.

Cheap but durable

If the property hasn’t yet been furnished, don’t try to spend a huge amount. With one trip to IKEA, you can furnish a house with durable pieces for a reasonable price. For example, if your tenants are students, their rooms will need a desk and chair to do their assignments on. Most people need bedside tables and a chest of drawers as well.

Combine function and style

How to Make a Stylish Living Space on a Budget

How to Make a Stylish Living Space on a Budget

Combine function and style by using an attractive piece of furniture as storage to free up space in the house for your tenants. Having less clutter around will make the room more spacious.

Place a chest of drawers against the wall to store items and hide clutter. Your tenants can use it as a display for photographs, candles or jewellery. You don’t have to spend much, and you will have an attractive piece of furniture that will keep the property neat and organized. If you have a staircase, you could insert some subtle pull-out shelves underneath it too.

Rearrange the furniture

You don’t necessarily need to spend money to create a stylish living space. If the property is already furnished, simply changing how the space is used can result in a completely different house.

For example, move your desk to the window – the better lighting and views outside might help your tenants focus on work. Moving the sofa to face the fire place will help them relax after a long day at work.

Try not to get personal

Try to avoid letting your personal taste dictate how you decorate the house. Everyone is different so try to stick to standard decorating.

Painting is one of the cheapest and easiest methods for transforming your living space, and a fresh coat of paint can do wonders for the interior, giving it a fresh look.

Keep in mind that painting your rooms with lighter colours will make the room seem more airy and spacious, whereas darker colours make it cosy but more cramped.

Take the time to really consider what you want the property to look and feel like, and then you can decide how to spend your money and achieve it.

Make sure the property is ready for viewings

When people come to view the property, make sure it is presentable and looks like a house people would want to live in. Details like cushions and throws on the sofa, sheets and pillows on the bed will make the house more appealing and homely to potential tenants. If the property is unfurnished, make sure it gets a lot of natural light so it feels bright and fresh.

Keep all your receipts

Keep receipts for every purchase you make, no matter how cheap. Everything spent on redecorating can be offset against your tax bill.

Turning a property into a stylish space doesn’t need to be a hugely expensive project. Taking the time to install good lighting, rearrange the furniture, and add a fresh coat of paint are just a few of the ways to give the house a makeover on a budget. As long as you are patient and make sure each change you make to the house is long-term and exactly what you want, the house will look fantastic in no time and tenants will be lining up to rent it.

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HMRC urges landlords to take advantage of Let Property Campaign

Published On: October 11, 2016 at 1:39 pm

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Since the Let Property Campaign was launched in 2013, there have been more than 13,000 disclosures from buy-to-let landlords.

The Let Property Campaign was launched by the HMRC to assist landlords in paying the correct amount of tax. It offers an opportunity for landlords owing tax through letting out properties to get up to date with their arrears.

Monies

To date, the tax campaign has raked in £50m in unpaid tax, with HMRC believing that most investors failing to declare their earnings owe just a few hundred pounds in tax each year.

Many investors owing tax are thought to be smaller scale or amateur landlords, or so-called accidental landlords letting out a home they are unable to sell.

HMRC is urging people to come forward, stating that the Campaign will give those in arrears the chance to take advantage of the best possible terms.

A HMRC spokesperson said: ‘If you’re a landlord and you’ve undisclosed income you must tell HMRC about any unpaid tax now. You’ll then have 90 days to calculate and pay what you owe.’[1]

‘If you make a full and voluntary disclosure of all unpaid liabilities in these circumstances you can usually expect a lower penalty than HMRC would otherwise seek if they raised an enquiry or compliance check without the disclosure,’ they continued.[1]

Concerns

There are growing concerns that professional landlords are using Airbnb and other home sharing websites to not pay their taxes. Under current tax rules, one is legally permitted to earn £7,500 before tax is permitted to be paid.

However, reports are suggesting that a rising number of landlords are using the service in order to let their properties, as they can earn more money than through traditional rents. In addition, they are letting their rooms for more than 90 days a year, in breach of housing regulations.

A further issue is that leaseholders are letting on Airbnb. Recently the Land Chamber ruled that a leasehold flat owner has broken the law by letting out her property in breach of her lease, which stated the apartment was a ‘private residence.’

HMRC urges landlords to take advantage of Let Property Campaign

HMRC urges landlords to take advantage of Let Property Campaign

Misunderstandings

‘Regardless of whether the errors were due to misunderstanding the rules or deliberately avoiding paying the right amount it is better to come to HMRC and admit any inaccuracies rather than wait until HMRC uncovers those errors,’ the spokesperson continued.[1]

They added that any amount due would depend on why a person failed to dispose their income. As such, someone who has purposely kept information from HMRC will pay a greater penalty than if they have made a mistake.

Concluding, the spokesperson said: ‘This is an opportunity to stop worrying about what might happen, have certainty about what you owe and get things right for the future.’[1]

[1] http://www.propertywire.com/news/europe/hmrc-urges-landlords-uk-make-tax-disclosures-sooner-rather-later/