Written By Em

Em Morley

London’s Night Tube Property Hotspots

Published On: August 30, 2016 at 2:15 pm

Tags: London,London property market,London Underground,night tube,property hotspots

London is officially now a city that never sleeps, thanks to the arrival of the Night Tube. In the capital, transport links play a vital role in boosting house prices – so where are London’s new property hotspots?

In the capital, homebuyers and investors will pay a premium for their properties to be close to transport links. And as Crossrail and Crossrail 2 have proved, great infrastructure means great things for capital growth.

So how will the new Night Tube affect London’s property market? The Regional Director of estate agent Portico, Mark Lawrinson, answers some important questions…

Will the Night Tube drive up house prices on the participating lines?

“Yes it will, but mainly in areas further out from central London, so Zone 3, 4 and 5 outwards,” says Lawrinson. “At the moment, it’s too early to predict an overall price increase.”

He continues: “The Night Tube will appeal to young professionals who work and party in central London, but can’t afford to buy in Zone 1 or 2. The new 24-hour service will mean they can push further out to more affordable areas, while still maintaining the lifestyle they want and without spending a fortune on taxis!”

Which stations are the ones to watch?

Lawrinson explains: “When Crossrail plans were announced, there was a huge spike in demand from both tenants and homebuyers wanting to move into the chosen areas while prices were still affordable, and we expect a similar rate of demand for areas on the Night Tube when the service is fully rolled out.

“Dataloft and SellMyHome have recently forecasted that property prices within half a mile of Night Tube stations will increase by 5-10% above the general rate of growth in the nearby area. This is in line with the rate of growth we have seen in areas affected by Crossrail.

“Most Londoners will have considered Zones 4 onwards out of reach, but the Night Tube has opened up new possibilities. We expect areas at the end of the lines to see the biggest property price rises, such as Cockfosters, High Barnet and Walthamstow.”

London’s Night Tube Property Hotspots

Leyton

The Central Line is one of the fastest lines on the Underground, connecting the east to central London in a flash. It is this fantastic transport link, along with new infrastructure investment and regeneration, that has pushed house prices up in east London at a quicker rate than anywhere else in the capital. Now that the Night Tube has arrived, Portico expects demand for property hotspots such as Leyton to be even stronger than it currently is.

A typical one-bedroom flat in Leyton (Zone 3) is around £290,000, and now that the Central Line is operating 24-hours-a-day on weekends, easterly residents will have even more of an incentive to buy in the area.

High Barnet

Traditionally, High Barnet has been seen as a residential, family area, but regeneration and new contemporary homes have attracted a rush of young professional tenants and homebuyers to this part of north London. Portico believes that the Night Tube will further increase the area’s popularity with a younger demographic.

Walthamstow

Thanks to redevelopment of the town centre, a wave of new shops, bars and restaurants, and a handy location on the edge of the Victoria Line, Walthamstow has been transformed from an undesirable and run-down area into a property hotspot for late 20-somethings.

It has seen huge capital growth over the last few years and is already a hotspot for first time buyers and landlords. Sean Hewitt, the Manager of Portico’s Walthamstow branch, expects the Night Tube to only enhance the area’s desirability. He believes that “smaller one or two-bedroom properties will see the biggest increases, as these are the properties likely to be in demand by the demographic using the Night Tube”.

Cockfosters

Over the past year, Cockfosters has experienced strong capital growth, due to its affordability, green spaces, instant access to the M25 and the Piccadilly Line into London, which connects to further great transport hubs. But it’s the Night Tube that will really put Cockfosters on the map, says Portico.

Currently, the area offers more houses than flats, and the greater proportion of new builds in Cockfosters are houses, to accommodate this demand. The area attracts young professionals and families who want affordable homes and good schools, but also want to get to central London at the weekends – which is why the Night Tube will only increase demand in Cockfosters.

Tottenham Hale

At present, Tottenham hale is one of the cheapest areas to buy a property along the Night Tube route, with an average one-bedroom home standing at £300,000. It is already a first time buyer haven, but Portico expects demand to strengthen now that the area has access to a 24-hour Tube service.

What’s more, Crossrail is due to launch in Tottenham Hale in 2017, and it’s a proposed Crossrail 2 location too. With infrastructure improvements comes regeneration, and with regeneration comes house price growth.

Investing along the route

If you’re looking to purchase a buy-to-let property along the Night Tube route, Lawrinson advises: “Look at the demographics of an area and choose a location which is popular with young professionals or young families looking for larger properties within their budget, who also want the option of a central London evening lifestyle. Typically, it’s young professionals and families who want the best of both (i.e. affordable housing or rental prices and a central London lifestyle), so make sure you buy to let in an area that appeals to these demographics.

“The migration of young professionals to outer zones will continue as the areas become more accessible, which will in turn spur regeneration and push up rental and property prices. In other words, investing in the right area could produce excellent rental yields and capital growth.”

Which areas offer the highest rental yields?

Hounslow West: Piccadilly Line, Zone 4 – 5.3%

Hainault: Central Line, Zone 4 – 5.2%

Stratford: Jubilee Line, Zone 2/3 – 5%

Tottenham Hale: Victoria Line, Zone 3 – 4.8%

Stanmore: Jubilee Line, Zone 3 – 4.8%

Walthamstow: Central and Victoria Lines, Zone 3 – 4.7%

Cockfosters: Piccadilly Line, Zone 5 – 4.4%

Brixton: Victoria Line, Zone 2 – 4%

Morden: Northern Line, Zone 4 – 4.4%

Edgware: Northern Line, Zone 5 – 4.1%

High Barnet: Northern Line, Zone 5 – 3.8%

Ealing Broadway: Central Line, Zone 3 – 3.7%

Third of Private Tenants Paying for Energy Efficiency Improvements

Published On: August 30, 2016 at 1:30 pm

Author: Em Morley

Categories: Property News

Tags: energy efficiency,energy efficiency improvements,energy performance certificates,landlord law,rental property,tenants

A new report from online letting agent PropertyLetByUs.com claims that a third of private tenants are paying for energy efficiency improvements to their rental properties.

As of 1^st April, landlords cannot unreasonably refuse consent for tenants to make energy efficiency improvements to their properties. However, the work’s funding is still the tenant’s responsibility.

In addition to this law, landlords will be legally obliged to bring their properties up to a minimum Energy Performance Certificate (EPC) rating of E by 2018.

Third of Private Tenants Paying for Energy Efficiency Improvements

However, PropertyLetByUs has found that already, one in six private tenants have paid for roof insulation, 7% have paid for double-glazing, and 92% have funded draft excluders for windows and doors. Worryingly, a further 71% have paid for their boiler to be repaired.

The research found that a huge 88% of private tenants want their landlord to install a more fuel efficient boiler, while 78% want their draughty front door replaced, 72% want more loft insulation and 48% want double-glazed windows installed.

Under the legislation that came into force on 1^st April this year, if a tenant requests energy efficiency improvements and the landlord does not give consent, the landlord could be issued a fine.

Homes with EPC ratings of F and G will be progressively banned from the property market, starting with private rental housing. It will become a legal requirement for private rental properties to have an EPC rating of E or above from 2018 in England and Wales. The Residential Landlords Association (RLA) estimates that a total of 330,000 rental homes are likely to be affected.

Although the Government claims that landlords will have to spend between £1,800-£5,000 to bring their properties up to an E rating, PropertyLetByUs is concerned that tenants may be forced to fund the improvements.

The Managing Director of PropertyLetByUs, Jane Morris, says: “Our research shows that it is falling on tenants to pay for energy improvements to their rented properties, which is simply unacceptable. Many tenants are finding that their landlords are refusing to make improvements to the property, leaving tenants no choice but to dip into their own pockets.

“Tenants should not have to pay for roof insulation and repairs to old boilers, when it is the landlord’s responsibility. The Government has recently given guidelines on the costs with a typical package of measures for a small semi. Gas central heating and low energy lighting is estimated at £4,000, loft insulation at £300 and cavity wall insulation at about £500. The Government will need to put measures in place to ensure that landlords are compliant, or the financial burden on tenants could be even greater.”

Morris adds: “Landlords should comply with the current legislation that requires them to make energy efficiency improvements and they also should start improving their properties if they have an EPC rating of F or G, so they are brought up to the required standard by 2018.”

Landlords, remember that you must not unreasonably deny your tenants permission to make energy efficiency improvements, but you should start thinking about the changes you might need to make to your property ahead of the law change in 2018.

1/3 of tenants still funding energy efficiency improvements

Published On: August 30, 2016 at 1:25 pm

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let landlords,energy,energy efficiency,landlords

One third of tenants have recently forked out for energy efficiency improvements in their property, despite Government legislation permitting landlords of F and G rated homes to make these alterations.

The legislation, which came into effect on April 1^st 2016, permits tenants to request a more efficient property. Should the landlord fail to comply with improvement requests, they could be required to pay a penalty fine.

Payments

An investigation carried out by PropertyLetByUs, indicates that one in six tenants have paid for roof insulation. 7% have paid for double-glazing, with a whopping 92% paying for draft excluders for their windows and doors. 71% said they have made payments in order for their boiler to be repaired.

Further data from the report suggests that 88% of tenants want their landlord to install a more fuel-efficient boiler. 78% wish to have a draughty door replaced, 72% want loft insurance and 48% are after double-glazed windows.

Government officials predict that it could cost landlords between £1,800 and £5,000 in order to bring homes with an F and G rating up to an E rating.

1/3 of tenants still funding energy efficiency improvements

Failures

A PropertyLetByUs spokesperson said, ‘our research shows that it is failing on tenants to pay for energy improvements to their rented properties which is simply unacceptable. Many tenants are finding that their landlords are refusing to make improvements to the property, leaving tenants no choice but to dip into their own pockets.’[1]

‘Tenants should not have to pay for roof insulation and repairs to old boilers when it is the landlord’s responsibility. The Government has recently given guidelines on the costs with a typical package of measures for a small semi. Gas central heating and low energy lighting is estimated at £4,000, loft insulation at £300 and cavity wall insulation at about £500. The Government will need to put measures in place to ensure that landlords are compliant-or the financial burden on tenants could be even greater.’[1]

‘Landlords should comply with the current legislation that requires them to make energy efficiency improvements and they also should start improving their properties, if they have an EPC rating of F or G, so they are brought up to the required standard by 2018.’[1]

[1] http://www.propertyreporter.co.uk/property/a-third-of-tenants-still-funding-energy-efficiency-improvements.html

Buy-to-Let will remain robust, says lender

Published On: August 30, 2016 at 9:13 am

Author: Em Morley

Categories: Finance News

Tags: buy to let investment,buy to let mortgages,mortgage lender,Stamp Duty

Another mortgage lender has put forward its plans to join the consumer buy-to-let and initial-landlord market during the coming months.

Accord Buy-to-Let, an intermediary-only lender of the Yorkshire Building Society Group, has acknowledged recent changes are making buy-to-let investment more attractive than ever. Record-low interest rates and volatility in the stock market are certainly contributing to the appeal.

Investments

Buy-to-let investment remains popular despite the increase in Stamp Duty, removal of wear and tear allowance and alterations to mortgage interest tax relief, scheduled for next year. This is due to the fact buy-to-let has performed better than other investment types during recent times.

These include mainstream investments such as commercial property, UK Government bonds and cash.

Chris Maggs, Buy-to-Let commercial manager at Accord, noted, ‘we continually review how we can develop our mortgage proposition to best suit the needs of landlords. Despite the uncertainty in the buy-to-let arena we believe that it will remain a robust market.’[1]

‘As part of our commitment to support landlords we plan to expand into the consumer buy-to-let and first-time landlord markets in the coming months,’ he continued.[1]

Buy-to-Let will remain robust, says lender

Uncertainty

Just this month, Accord Buy-to-Let announced changes to its buy-to-let mortgage range. In addition, the lender launched a range of new tracker mortgages, giving landlords flexibility to exit their mortgage deal early without repayment fees.

Maggs observed, ‘there is a lot of uncertainty in the market due to the recent taxation changes impacting landlords and the tighter underwriting controls lenders are adapting to ensure landlords are not over committed and can support their property portfolio.’[1]

‘It is imperative that lenders look to support landlords by creating innovative products which provide flexibility in a changing environment,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/buy-to-let-market-will-remain-robust-says-accord

House Prices Will Continue Rising Despite Brexit, Say Homeowners

Published On: August 30, 2016 at 9:11 am

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,homeowners,house prices,property market

It’s now been a couple of months since the UK voted to leave the EU, and as of yet, there has been no meaningful impact on the property market, other than a slight 1% drop in house prices.

With no concrete impact likely to surface for quite some time, online estate agent eMoov.co.uk asked over 1,000 UK homeowners what they think will happen to house prices as a result of the Brexit vote.

House prices

Following the Brexit vote, eMoov asked homeowners what they expect the change in house prices to be over the next 12 months. The majority of those asked (70%) believe there will be a change in house prices as a result of the Brexit vote, with 54% of those saying that house prices will continue rising.

eMoov then asked what the change in house prices will be over the next five years. Most of those asked (78%) believe the leave vote will impact property values, with 64% saying prices will continue to grow over the next five years.

Housing demand

The agent then asked if the Brexit vote will result in less demand for housing, due to lower immigration levels. Around 61% of those asked don’t think that lower immigration levels will help suppress the overwhelming demand for UK property.

However, when focusing on London, this figure shifts to a majority of 53% who believe that lower immigration will cause a reduction in housing demand.

Property sales

The homeowners were then asked if the Brexit vote has changed the minds of those selling their properties. Despite an abundance of doomsdays predictions, 78% of those asked said that the Brexit had no impact on their decision to sell.

Almost a quarter (23%) of homeowners said that when voting in the referendum, selling a property swayed their decision. Over half (59%) of those that voted to remain did so because they were already involved in a property sale.

House Prices Will Continue Rising Despite Brexit, Say Homeowners

Interest rates

What do homeowners think will happen to interest rates now that we’ve voted to leave the EU? 78% of those asked believe there will be an impact one way or another, with 63% saying rates will drop even further, despite the UK already seeing an interest rate cut to 0.25%, just weeks before eMoov’s poll.

Housebuilding

As the Government’s pledge to build more homes has so far been worryingly inadequate, it is unsurprising that 53% of homeowners believe that leaving the EU will have a negative impact on housebuilding in the UK, due to the lower number of European tradespeople.

Troublingly, a recent report also claims that the country is still facing significant obstacles to get more homes built. Read more here: /1-4-billion-bricks-needed-solve-housing-crisis/

Holiday homes

eMoov then asked if the Brexit vote will impact the buying process for those looking to purchase a holiday home in the remaining EU member states. A huge 62% of homeowners believe it will now be harder for UK nationals to buy a holiday home in mainland Europe.

Unemployment

Will the leave vote result in higher unemployment? The majority of homeowners asked (56%) believe that the Brexit vote will not result in higher unemployment levels across the UK.

Recession

On whether the Brexit vote will lead to another recession, 65% of homeowners claim the outcome could trigger another economic downturn across the country.

Second thoughts

Finally, eMoov asked the homeowners whether they would vote differently in the referendum now.

Of those that voted for Brexit, just 21% would change their mind if they were given a second chance, while 15% of remain voters have also had a change of heart.

The founder and CEO of eMoov, Russell Quirk, comments on the findings: “There is still little evidence to show any detrimental impact on the UK property market, despite a number of media publications looking to scare the British public into thinking otherwise.

“The UK market is still looking impenetrably strong, with just a minor seasonal drop in values being the only chink in its armour. This research shows that the troops on the ground, British home sellers and buyers, are seeing the same when it comes to selling and buying, and so far, there is little if anything to worry about.”

He adds: “Yes, any lasting damage will take time to show conclusively, but had there been any as a result of the Brexit vote, the shockwaves would have already impacted on the ground level, and it appears that this just isn’t the case.”

House Price Growth Slows, as the North Outpaces London

Published On: August 27, 2016 at 8:51 am

Author: Em Morley

Categories: Property News

Tags: average house price,house price growth,house prices,property market

The last three months have seen house price growth slow down, as the north of England outpaces London and the south, according to the latest Hometrack UK Cities House Price Index.

House Price Growth Slows, as the North Outpaces London

The annual rate of house price growth across the 20 cities included in the study slowed to 9.5% in July, after 12 months of higher inflation. This shift in momentum was due to growth stalling across a number of cities in southern England over the past quarter, says Hometrack.

In the three months to July, house prices in London rose by just 2.1% – the lowest quarterly rate of growth since February 2015. Additionally, growth in Bristol, which was the fastest growing city over the last year, slowed to 2.6% from a recent high of 5% in May. Prices in Cambridge dropped by 1% in the last quarter, although prices are 7.1% higher than 12 months ago.

However, Hometrack has also found that house price growth in many large regional cities in the north of England and Scotland shows no signs of slowing down. The rate of annual house price inflation in Leeds, Manchester, Birmingham, Liverpool and Nottingham continues to stand between 7-8%.

Focusing on activity over the past quarter, Hometrack revealed that the highest rates of growth were recorded in lower value, high yielding cities, such as Glasgow (5.2%), Liverpool (4.4%), Manchester and Nottingham (3.4%).

In Aberdeen, the annual rate of house price growth fell at a slower rate of 8% in July, as prices rose by 2% in the last quarter, a sign that the housing market may have adjusted to the impact of falling oil prices on demand over the past year.

The Insight Director at Hometrack, Richard Donnell, comments: “In the absence of adverse economic trends impacting employment and mortgage rates, the near term outlook is for a continued slowdown in London towards mid-single digit growth. The slowdown in London is being seen across the market, but is not accounted for by seasonal factors, with weaker demand from homeowners and investors as supply grows. This analysis suggests London house price growth will continue to slow over the rest of the year.

“In contrast, northern regional cities will continue to register stable growth rates, as households benefit from record low mortgage rates and affordability remains attractive.”

Donnell adds: “We continue to believe that turnover will register the brunt of the slowdown in London. In the face of lower sales volumes, agents will look to re-price stock in line with what buyers are prepared, and can afford, to pay. Past experience shows that this process can run for as long as six months, and relies, in part, in how quickly sellers are willing to adjust to what buyers are prepared to pay.”