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Em Morley

New Legal Advice Service Launched for Private Landlords

Published On: July 6, 2016 at 9:19 am

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Forbes Solicitors has set up a new legal advice service to help private landlords with a wide range of issues.

New Legal Advice Service Launched for Private Landlords

New Legal Advice Service Launched for Private Landlords

The new team will offer advice on various topics affecting landlords, from drafting tailored tenancy agreements and recovering possession of a property, to defending disrepair claims and other types of action brought by tenants. The service will launch with a series of advice events starting today (Wednesday 6th July), operating from Forbes’ Housing and Regeneration department in Preston.

An associate in the department, Sam Gorrell, comments: “Our team are very experienced in this area of work, and we are now expanding into the private rental market. We have the expertise to offer a quality service and will act exclusively for landlords, giving them the help and advice they need.”

For private landlords not operating in and around the Preston area, Forbes plans to launch a new online service for landlords, which should be available in the near future.

To mark the creation of the new team, Forbes is hosting a series of events for private landlords and letting agents. The first session will look at a landlord’s ability to recover possession and recent changes to legislation in this area.

The full schedule of seminars is as follows:

  • How to get possession of your property – the new regime – Wednesday 6th July
  • Tenancy deposits and other common pitfalls – what you need to know – Wednesday 7th September
  • Landlords’ health and safety obligations – what are the risks? – Wednesday 2nd November
  • Unlawful eviction and abandonment – minimising your risk – Wednesday 1st February, 2017

Remember that you can receive daily updates on the buy-to-let sector and property market on LandlordNews.co.uk. For a monthly round up of the most important changes in the private rental sector, remember to sign up to our Landlord NewsLetter.

Wherever you live in the UK, we are dedicated to bringing you the latest in finance, law and property updates.

Could the North offer best post-Brexit yields?

Published On: July 6, 2016 at 8:59 am

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A new report has indicated that following the historic Brexit vote in the EU referendum, buy-to-let investors should look to invest in Northern locations, rather than the capital.

Research conducted by Assetz Property suggests that landlords could receive greater returns by investing in the property market in the North of England.

Rental yields

Buy-to-let landlords purchasing through Assetz Property can achieve yields of 8.5% in Leeds through their investment properties. Gross yields in London currently stand at only 3.5%.

Disposable income levels in Leeds are also way above those seen in the capital. The typical London salary is currently £40,087, meaning renters are left with an average of just £6,607 of disposable income. This is before features such as bills, food and travel expenses have been sorted out.

In Yorkshire however, despite the average yearly salary standing at over £10,000 less than in London, typical rent is just £11,244 per year.

Could the North offer best post-Brexit yields?

Could the North offer best post-Brexit yields?

Reliable returns

Stuart Law, CEO at Assetz Property, notes, ‘with house prices in London set to drop and interest rates due to fall on savings following Mark Carney’s strong indication of an imminent base rate drop, investors should concentrate on yields and the monthly return on their investment. The potential relocation of thousands or tens of thousands of highly paid city workers to Paris, Frankfurt or Dublin who might have once lived or rented in London can only have a negative effect on the City, while the market in Leeds is likely to be far more stable.’[1]

‘Not only is it a fantastic draw for investors, as properties are, on average, more than £400,000 cheaper here than in London, but it is an ideal location for residents looking to get more for their money and achieve a higher standard of living than they could have in London for a lot less money,’ he add

[1] http://www.propertyreporter.co.uk/landlords/should-investors-shun-london-for-the-north.html

 

 

Record Month for Buy-to-Let in June, Despite Brexit

Published On: July 6, 2016 at 8:35 am

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Finance and property advisory firm Nova Financial has reported a record month for buy-to-let transactions in June, despite last month’s shock Brexit vote.

The company’s Managing Director, Paul Mahoney, has experienced a surprisingly positive reaction from landlords in the face of the leave vote, and believes that this confidence will continue throughout the rest of the year.

Record Month for Buy-to-Let in June, Despite Brexit

Record Month for Buy-to-Let in June, Despite Brexit

“The response we’ve received from clients who are in the process of purchasing buy-to-let properties following the Brexit vote has been far more positive than one might expect, and most are of the opinion that it is business as usual,” he says. “In fact, we at Nova Financial posted a record month for transactions in June, with more of the same expected for July.”

Indeed, recent reactions from those in the property industry suggest that landlords could in fact benefit from the Brexit outcome.

However, Mahoney believes that the confidence shown by his firm’s clients is due to their interest in cities such as Manchester and Liverpool, which form part of the Northern Powerhouse. Additionally, the North East has shown resilience following the Brexit, with house prices up by 4.8% over the past month.

Despite this, there are concerns within the sector that the Northern Powerhouse scheme may be in danger now that David Cameron has resigned and Chancellor George Osborne’s career remains uncertain. If the scheme does fail, investors in these areas could see their returns dampen.

Although confidence in northern cities has remained strong following the vote, Mahoney reports that landlords seem more concerned about the referendum’s effect on the London property market.

“It seems buyers are more concerned regarding the potential negative impact on the London market, as opposed to other cities,” he states. “We as property advisors agree with this attitude and view the London property market outlook as fairly sombre, whereas the main northern cities still provide very strong fundamentals.”

While investors and advisors may be feeling uncertain about investment in the capital, one investment firm insists that the London property market will prove resilient to the Brexit.

If you are considering a buy-to-let investment in the near future, which area will you choose?

Rise in ‘gifted’ deposits before Stamp Duty deadline

Published On: July 5, 2016 at 11:51 am

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A number of buy-to-let investors were ‘gifted’ financial assistance in order to secure funds for a deposit to beat the Stamp Duty deadline, according to a new report.

Research conducted by My Home Move found that the number of investment properties purchased using a ‘gifted’ deposit rose by 5% in the first quarter of this year. Many investors were found to have turned to the bank of Mum and Dad in order to secure these deposits.

Gifted deposit increases

My Home Move based its analysis on a survey of over 20,000 transactions in a two-year period.

Talking about the results of the investigation, Doug Crawford, CEO of the firm, said, ‘when we talk about the Bank of Mum and Dad, people usually think of first-time buyers who are struggling to afford their first home. However in this instance we’re surprised that investors sought to utilise every avenue possible to secure their next property before the 1st April deadline. Asking for help through a gifted deposit in effect helping to bring forward their purchase date, will have saved them thousands of pounds in additional Stamp Duty charges.’[1]

Investors were found to have used their gifted deposits more prominently in both the East and West Midlands. A rise in investment of 6% and 12% respectively was recorded in these areas. However, investment in London and the South East fell by 4% year-on-year.

Rise in 'gifted' deposits before Stamp Duty deadline

Rise in ‘gifted’ deposits before Stamp Duty deadline

Interesting Investment

Crawford continued by noting, ‘it is interesting that these investors, those who have had the deposit gifted, have made the decision to buy in areas outside of the Capital-suggesting that they either wanted to make their money go further by buying in less expensive locations, or there just wasn’t the stock available to buy in London.’[1]

‘And when we looked further into the data, we also discovered that these investors chose to purchase flats and maisonettes over houses, indicating that they were looking for properties they could easily rent out as opposed to second-homes-making them the buy-to-let landlords with a hotline to the bank of Mum and Dad.’[1]

[1] http://www.propertyreporter.co.uk/property/spike-in-gifted-deposits-as-investors-aimed-to-avoid-sdlt-hike.html

Mortgage deals for new landlords at record low

Published On: July 5, 2016 at 10:53 am

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Fresh research from MoneyFacts has revealed that the proportion of mortgage deals for new landlords has dipped to a record low.

Annually however, the number of buy-to-let mortgage deals has increased.

New deal lows

Just five years ago, the percentage of buy-to-let market available to first-time landlords stood at 82%. Now, this figure has dropped to 75%.

Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, noted, ‘despite all the changes to regulation in the buy-to-let market, the number of buy-to-let mortgages has increased: however, first-time landlords have been missing out on this boost in product numbers. Indeed, the percentage of the market that is available to new landlords has now dropped to just 75%, down by around 10% in two years.’[1]

‘As first-time landlords don’t have a proven track record in managing rental properties, offering them a buy-to-let mortgage poses a greater risk to the lender and it’s this risk that is making the number of first-time landlord deals remain relatively static,’ she continued.[1]

Mortgage deals for new landlords at record low

Mortgage deals for new landlords at record low

Regulation

Nelson feels, ‘the additional regulation in the buy-to-let market and the added economic uncertainty following the Brexit vote means even more lenders may reconsider whether first-time landlords are a safe bet. As a result, would-be landlords are likely to face more probing questions about their finances than their more experienced counterparts.’[1]

‘Nevertheless, high rents and rock-bottom mortgage rates mean that buy-to-let is still an attractive proposition for aspiring landlords, particularly those who are fed up with the dismal savings options currently available. However, buy-to-let is not without its risks, so anyone considering it as an option should seek the advice of an independent financial advisor to determine whether it is the best choice for them,’ she concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/number-of-mortgages-for-new-landlords-at-record-low.html

Letting Agent Issues Warning Over Smoke Ventilation Windows

Published On: July 5, 2016 at 9:57 am

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Letting agent Leo Newman has issued a warning to its landlord customers over a defect in VELUX smoke ventilation windows.

The London-based firm warns that all landlords should be aware of the issue, as it could cause problems for tenants.

The agent reports that the defect only came to its attention by chance, but could affect many landlords across the country, as the firm has fitted many of these windows itself.

Commenting on the defect, the agent says: “Leo Newman takes compliance and regulation very seriously, and are always seeking the best for our clients and tenants.”

VELUX Group has published a warning to its customers regarding the defect in its smoke ventilators, involving a lock ring that can detach.

The products concerned were sold between 1st March 2015 and 10th January 2016.

The firm explains that the defect could occur in situations where there is significant snow load on the window. In these cases, the lock ring may detach itself during opening, and consequently, the window will not open. If there is no snow load or only moderate snow load, the window will open, even with a defective lock ring.

It says that landlords should look out for a data plate on the top sash of their smoke ventilation windows. To obtain information from the data plate, the window should be activated via the comfort ventilation switch on the front face of the main control panel. If your smoke ventilation has this defect, you will see the following information on the top left of the data plate:

example

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VELUX Group notes that it will arrange for the repair of this defect.

If you have purchased a smoke ventilator between the dates above with one of the serial numbers shown in the image, contact VELUX Group on 01592 778225 or by email at sales@velux.co.uk.