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Em Morley

Investment Firm Expands in Manchester Following High Landlord Demand

Published On: September 22, 2016 at 9:57 am

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Investment Firm Expands in Manchester Following High Landlord Demand

Investment Firm Expands in Manchester Following High Landlord Demand

Investment firm The Mistoria Group has expanded its business in Manchester, following high levels of landlord demand.

The high yielding property investment specialist has recently opened a new office in the heart of Castlefield, in Manchester’s city centre.

The new office, located at 2 Burton Place, is The Mistoria Group’s third office, alongside Salford and Liverpool. Acting as a hub for international enquiries, investment and sales for both UK and international investors, the new office will be staffed by a team of five.

The new Manchester office has been launched on the back of a surge in landlord demand for high yielding properties in the North West and a 35% rise in demand from international property investors.

The Managing Director of The Mistoria Group, Mish Liyanage, comments: “We have had a very successful year so far, achieving almost full occupancy for all the properties we manage on behalf of landlords, achieving 100% in Salford and 98% in Liverpool. We have been inundated with enquiries and still have a long waiting list for students wanting high spec, shared accommodation.

“Our new Manchester office will help us to continue grow our strong presence in the North West, supplying some of the best rental yields and investment opportunities that are available in the region. With the new international website underway, we have high hopes for the new office in developing our international aspirations, by expanding our offering to current and new overseas investors. Jerry O’Brien will head our international sales division.”

He explains: “We wouldn’t be able to achieve this success if it wasn’t for the great team we have working across the different divisions at Mistoria. It has been a very busy period for our lettings, marketing team and MCC Accountants. Everyone has worked very hard to ensure the smooth running of the business in the period approaching the 2016/17 academic year.

“Over the next 12 months, we will continue to do what we do best in providing some of the best high yielding investment in the UK and overseas.”

The Mistoria Group is a high yielding, student buy-to-let investment specialist, offering Houses in Multiple Occupation (HMOs) and armchair investments in the north of England.

Young prioritising property over pensions

Published On: September 22, 2016 at 9:42 am

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A new study has revealed that more young people feel saving up for a property is more important than a pension.

Research conducted by independent market research firm Consumer Intelligence, discovered that under 35’s are three times as likely to save for a residential property than for retirement.

Priorities

The report was commissioned by Nottingham Building Society and revealed that 24% of under 35’s feel that saving for a property is their priority. This was in comparison to 8% who think of saving for retirement.

For many years, retirement saving has been the main saving and investing priority for the population. However, this latest survey suggests attitudes are changing and getting onto the housing ladder is becoming the main focus for those under 35.

34% of under 35’s are saving for their first home or to move, in comparison to 18% with the population as a whole.

Young prioritising property over pensions

Young prioritising property over pensions

Best choice of investment

Just last month, Andy Haldane, Bank of England’s chief economist, noted that investing in property is a better choice of investment for retirement than paying into a traditional pension.

Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services, said: ‘The importance that younger savers place on buying their first home or moving home demonstrates that there is strong demand for help with saving with under 35’s saying owning a home is three times more important than saving for a pension.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/9/the-young-prioritise-property-over-pensions

 

 

National Approved Letting Scheme calls for cap on agent fees

Published On: September 22, 2016 at 8:51 am

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The National Approved Letting Scheme has today called for a cap on letting agent fees charged to tenants, as opposed to a widespread ban.

This organisation represents both letting and management agents and feels that a cap on fees is the most appropriate way of preventing excessive fees, currently charged by a small minority.

Action

Isobel Thomson, Chief Executive of The National Approved Letting Scheme, believes it is time for the industry to take action, before the chance of an outright ban becomes a viable option for the Government.

The Renters’ Rights Bill is steadily making its way through Parliament. This Bill proposes an outright ban of fees charged to tenant and has already received two unopposed readings in the House of Lords.

Earlier on this year, a petition against these fees received media coverage. This petition, entitled, ‘Make Renting Fair in England’ has received over 250,000 signatures.

National Approved Letting Scheme calls for cap on agent fees

National Approved Letting Scheme calls for cap on agent fees

Fees

Thomson believes that efforts to explain to the Government on why upfront fees are necessary are often, ‘hampered by sensationalist headlines.’

‘We believe a cap is an appropriate way of curbing any excessive fees and offering protection to the consumer. By offering a cap calculated and enforced at a local level, we still allow agents to be paid for the work they do in setting up a tenancy, while also ensuring a fair, set rate for tenants,’ she observed.[1]

She went on to call on all industry bodies to join forces to come up with a, ‘proper solution to an all out ban.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/9/nals-calls-for-cap-instead-of-ban-on-letting-agent-fees

 

Drop in Residential Property Sales Not a Cause for Concern, Say Experts

Published On: September 22, 2016 at 8:37 am

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The “negligible” drop in residential property sales in August is not a cause for concern, according to experts commenting on the latest property transaction data from HM Revenue & Customs (HMRC).

The provisional seasonally adjusted UK property transaction count for August this year was 97,660 residential and 10,620 non-residential sales.

Although a slight increase was recorded between July and August, August’s seasonally adjusted figure is down by 6.1% on the same month last year.

The Director of conveyancing specialist Search Acumen, Andy Sommerville, comments on the data: “It is encouraging that pre-referendum forecasts of economic meltdown continue to appear overblown as August’s residential property transactions show some resilience and commercial activity gains a new lease of life. The figures show a stable increase in residential transaction activity every month since the Brexit vote, and those within the property sector are finding themselves asking what all the fuss was about.

Drop in Residential Property Sales Not a Cause for Concern, Say Experts

Drop in Residential Property Sales Not a Cause for Concern, Say Experts

“We are, however, in danger of being overly optimistic about the short-term stability we’ve seen over the past months, as a 6.1% decline since the same month last year uncovers 12 months of turbulence in our sector, and efforts to get our market back on its feet must not slow down.”

Richard Sexton, the Director of e.surv chartered surveyors, also notes: “It’s not surprising to see only a nominal monthly change in transactions at this time of year, with these figures signalling no real shock to the market. However, this modest rise in numbers does show that the vote for Brexit has not caused the great shockwave predicted by some scaremongers. Instead, the housing market remains resilient and open for business.”

Indeed, the latest figures from Nationwide suggest that Brexit has not toppled the housing market.

The Director of Sales and Distribution at The Northview Group, Steve Griffiths, adds: “There has clearly not been the immediate, dramatic market crash that many predicted following the UK’s vote to leave the EU. Transaction figures have remained steady, with a marginal increase in the number of property transactions.

“Whilst we must wait for the coming months to see the true impact of the Brexit decision on our housing market, demand is still strong and many buyers in particular continue to maintain their interests in securing their next buy-to-let purchase.

“With competition still the watchword of Britain’s property market, buyers will look for certainty and speed in their mortgage application, and we believe this provides an opportunity for challenger lenders to see new standards and carve out a reputation for meeting customers’ needs.”

The CEO of estate agent Marsh & Parsons, David Brown, continues: “The top-line figures are slightly down from August last year, but this is no cause for concern – it is important to note that when you discount seasonal adjustment, the changes from the same period last year are negligible.

“The total numbers for Q1 and Q2 of 2016 were astronomically high compared to the corresponding period last year. Consequently, the market is still levelling after the frenzy we saw as people clambered to meet the April Stamp Duty deadline. This, along with the Bank of England’s plans to curb buy-to-let mortgages, caused such an enormous spike in activity, that even if we had not had the referendum vote, we would have expected to spend a good few months seeing the market recover to some level of normality.

“At Marsh & Parsons, we are certainly seeing good levels of activity, and it is particularly pleasing to see a number of enquiries resurfacing from people who had put their property searches on hold a couple of months ago. We are feeling optimistic about the remainder of the year.”

Landlords will be particularly pleased to learn that yesterday, estate agent Douglas & Gordon reported that the London lettings market experienced its “strongest ever” month in August, despite the Brexit vote.

Paragon mortgages announces new buy-to-let fixes

Published On: September 21, 2016 at 11:37 am

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Categories: Finance News

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Paragon Mortgages has today moved to launch a new range of five-year, fixed-rate mortgage products for both individual and limited company landlords.

These new mortgage rates at 75% loan-to-value begin from 3.75%, with the products including funding for both self-contained homes, alongside more complex properties.

Lower interest rates

John Heron, managing director of Paragon Mortgages, observed: ‘with the outlook for interest rates now much lower for longer, we have been able to deliver these longer term fixed rates aimed at professional landlords including those borrowing through limited companies and those purchasing HMO’s.’[1]

‘These are the first products we have launched which feature an ICR that reflects lower interest rate expectations and the reduced risk that customers on longer term fixed rates benefit from,’ he added.[1]

Paragon mortgages announces new buy-to-let fixes

Paragon mortgages announces new buy-to-let fixes

The new longer term fixed rate products include a different interest coverage calculation based on an interest rate forecast of 4%. This is with the interest coverage ratio (ICR) set at a minimum of 125% for single self-contained units and 130% for more difficult HMO properties.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/new-five-year-btl-fixes-from-paragon

 

Majority of Homeowners Fear Hiring a Tradesperson

Published On: September 21, 2016 at 10:50 am

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The majority of homeowners in the UK fear hiring a tradesperson to do work in their home, according to the latest research from home improvement marketplace Plentific.com.

The findings arrive as Plentific launches an innovative new payment platform – the first of its kind in Europe. The firm reports that growth in the home improvements market shows no sign of slowing down in post-Brexit Britain, meaning that demand for quality home service professionals is high.

Plentific lists over 85,000 professionals on its website, and has quickly become an established brand in the online home services industry.

The service allows property owners to search, compare, book and now securely pay for trade professionals online.

The new payment platform allows Plentific to support both sides of the marketplace, with a high level of security and convenience. And it’s not stopping there; Plentific is due to release another innovative feature in the next two weeks.

Its Plentific Guarantee will ensure that all jobs are completed to a high standard when homeowners hire a verified Plentific professional, who has passed a comprehensive background check.

Majority of Homeowners Fear Hiring a Tradesperson

Majority of Homeowners Fear Hiring a Tradesperson

The co-founders of Plentific, Cem Savas and Emre Kazan, comment: “Our payment platform launch puts Plentific into a league of its own as the only transactional home services marketplace in Europe. Our goal is to delight our customers, and we want to ensure that we are doing everything in our power to connect homeowners with professionals that provide quality service. This launch allows us to offer something homeowners have never had: the ability to find a verified local professional and pay them securely, whilst having peace of mind that the project will be finished to the highest standard. We guarantee it.”

Mangopay, a leader in marketplace payments across Europe, powers the new payment platform. The firm’s CEO, Céline Lazorthes, says: “We pride ourselves on offering a totally secure and user friendly solution. We work with innovative clients and know how to adapt to their specific needs. We’re truly excited to power Plentific’s payment gateway as they look to scale their operations.”

Plentific’s guarantee should help the 13m UK homeowners who fear hiring a tradesperson to carry out improvement work on their properties.

According to a study by the firm, 87% of homeowners fear hiring tradespeople, with finding a reliable professional being their biggest concern. Over half (59%) said their greatest worry is finding a tradesperson that they know for certain can do their job properly.

However, homeowners are relatively relaxed about sticking to a timeline, with most more keen to have the work completed to a high standard. Just a fifth (19%) are concerned abut the work being finished on time, while half (51%) fear that the completed project will not meet their expectations.

The region with the most confident homeowners is the South West, where 19% of local homeowners have no concerns about hiring a tradesperson. This is in huge contrast to London, where just 5% are completely comfortable in hiring a professional to carry out work in their homes.

Plentific’s research shows that there is a lot of variation across the UK. For example, the biggest concern in Brighton is being ripped off, with 74% of local respondents fearing their job will be unfairly overpriced – much higher than the national average of 51%. When it comes to trusting a tradesperson in the home while they’re on the job, homeowners in Cardiff (45%), Liverpool (44%) and Manchester (40%) were much more worried than the UK average (33%).

Age also appeared to be a factor on certain issues, with 68% of homeowners aged 55 and over voicing concerns over the reliability of tradespeople, compared to 45% of respondents aged 35 and under.

Savas explains: “Our survey shows why homeowners may hold back when hiring a pro without seeing proper verification. These days, people need more than just word-of-mouth recommendation, which is why we created Plentific.

“We’re here to change the way people feel about hiring a trade professional. We provide a transparent marketplace with verified and customer-rated trade professionals, our guarantee and a secure payment service, enabling homeowners to feel confident about getting their job done.”

Do you feel concerned when hiring a tradesperson to work on your property?