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Em Morley

Britain’s top house price performers in 2015 revealed

Published On: December 29, 2015 at 12:19 pm

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Categories: Property News

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As the year draws to a close, the Halifax has presented a rundown of Britain’s top house price performers during 2015.

Research from the firm has revealed that Newham in London recorded the largest percentage rise in property price values in major UK towns and cities during the past year.

Ups

The Halifax’s own house price data reveals that the average house price in Newham was 22% greater than in the last year. Property prices rose from £261,399 to £319,522 in 2015. This represents almost double the 12% that London recorded as a whole.

Royston in Hertfordshire saw the second highest rise in average house prices, with an increase of 19%.

Unsurprisingly, the top-ten performers were all in London and in the South East.

Outside of these areas, Stroud in Gloucestershire, Wellingborough in Northamptonshire and Solihul in the West Midlands were the regions with the largest growth. All recorded price increases of between 14-15%.

Britain's top house price performers in 2015 revealed

Britain’s top house price performers in 2015 revealed

Downs

Just a few towns recorded a decline in house price values during the last year. The greatest was in Merthyr Tydfil, South Wales where prices slumped by 3.8%. Colwyn Bay saw prices dip by 2.3%, Durham 2.1% and Coalville 0.5%.

The top-ten worst performers were all located outside of London and the South East, with the exception of Kensington and Chelsea, where prices rose by just 1% during 2015.

‘Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital,’ noted Martin Ellis, housing economist at the Halifax. ‘Demand in these areas has risen as rapid house price rises in central London in the past few years have caused increasing numbers of people to look for property in more affordable areas.’ [1]

‘A few towns have experienced modest price falls,’ he continued, before stating that, ‘these areas are typically stiff suffering from relatively weak employment and economic conditions, which has dampened local housing demand.’[1]

[1] http://www.propertyreporter.co.uk/property/where-is-the-uks-top-house-price-performer-in-2015.html

 

Secure your homes over the break

Published On: December 29, 2015 at 10:57 am

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Categories: Landlord News

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With the festive period in full swing, many of us will be travelling to see loved ones over the extended break from work (well, for some of you!)

However, while Brits are getting stuck into mulled wine, leftover turkey and gorging on chocolate, it is important to remember that there are some that prey on poorly secured empty properties.

Stay secure

As owner of Belvoir, Birmingham Central, Major Mahill observes; ‘an empty property is a vulnerable property. So, if your tenant is intending to be away during the festivities, it’s important to put some security measures in place in order to protect it.’[1]

‘Opportunistic thieves love empty properties, especially over the Christmas period when piles of pricey presents are left unattended. In addition, unexpected maintenance emergencies can escalate at speed while no one’s home,’ he added.[1]

Maintain

During the Winter, one of landlords’ greatest fears is flooding, something which has been seen in extreme levels recently in the North. Charlotte Baker, owner of Belvoir Melton Mowbray and Bingham said, ‘a leaky roof, blocked guttering or burst pipes can all cause substantial damage swiftly in the absence of a tenant to notice or report them.’

‘To help reduce the potential of water worries, check that all roof tiles are secure and haven’t been damaged by the recent winds, plus that all guttering is unblocked and debris-free,’ she continued.[1]

Mr Major added, ‘to help prevent frozen pipes ensure all pipes are adequately insulated, plus ask your tenant to set the timer on the heating for an hour in the morning and at night while they are away.’[1]

Secure your homes over the break

Secure your homes over the break

Lengthy leave? Liaise

Tenants looking to leave rental property for an extended period should always inform their landlord first. Baker notes that, ‘if your property is going to be empty for 28 days or more its important that you are made aware. Some tenants may even be happy for you to visit the property occasionally in their absence to make sure all is well. Before doing so however, always ensure you have their permission for this.’[1]

‘It’s vital that you have a good insurance policy in place in case the worst was to happen,” she added. “when did you last check your policy? Is it going to cover you for all the common winter emergency situations? Plus, are there certain criteria you have to meet if the property is vacant for an extended period of time, such as draining the heating system?’[1]

Christmas crimes

It is important to remember that Christmas provides an opportune time for burglars to make their move. Unoccupied homes packed with Christmas gifts are the main target and tenants and landlords alike should work together to combat the mindless few.

‘If the property has a burglar alarm, window locks and other security features check that they are in working order,” says Baker. ‘Also consider installing outside security lights. It’s helpful to talk to your tenant in order to ensure they understand how to use the security measures you’ve put in place and are aware of their responsibilities.’[1]

Mr Major agrees, stating, ‘While it’s beneficial for you (and perhaps a neighbour) to know that your tenant is going to be away over the festive season, it’s just as valuable that other people don’t!” he says. ‘Providing an interior lamp with a timer can help make a property appear occupied, as can leaving a car in the driveway, plus asking a neighbour to push post properly through the letterbox and put out the bins.’[1]

Checklist

Tenants and agents should take time to look at this useful checklist to ensure their properties are as safe as possible over the break:

  • Advise of any extended periods where the property will be empty
  • Ensure alarms, windows and other safety features are working
  • Use central heating timers to help combat burst pipes
  • Check roof tiles
  • Unblock all guttering
  • Ask a neighbour to put the bins out
  • Install security lights
  • Take out sufficient insurance

[1] http://www.propertyreporter.co.uk/landlords/an-empty-property-is-a-vulnerable-property.html

 

 

Police Hunt for Rental Conman in Bristol

Published On: December 28, 2015 at 11:44 am

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A conman who pretended to be a landlord and tricked several hopeful tenants into paying him thousands of pounds is being tracked down by police.

Four individuals each paid around £1,100 in rent and deposits to Arkadiusz Sylwester Nader for the same studio flat in Bedminster, Bristol.

However, when they came to move into the property, the so-called landlord had disappeared with their money. The flat on North Street is owned by someone else entirely.

Police are trying to locate the Polish national, who secured the flat through an intermediary, as he does not speak English.

Nader owes one month’s rent on the flat, which is empty apart from a few belongings.

All of the victims are originally from Eastern Europe and were targeted online by Nader, who told them they could move in on 3rd December.

However, none of them have heard from him since.

One victim, Damian Nartowski, is a forklift truck operator. He says that the money he paid was his “full monthly wage”.

He adds: “It [had] a big impact on me because I was struggling to get to the end of the month because I have no money or anything.”1 

Joanna Kedziora, another victim, works as a cleaner in a bank and has lost all of her savings thanks to Nader.

Through a translator, she says: “He harmed a lot of people just before Christmas and he made himself a Christmas present out of some other people’s misery.”1 

She had planned to move into the flat with her daughter.

Avon and Somerset Police is currently investigating allegations of fraud and urges anyone who thinks they may have been a victim to come forward.

1 http://www.bbc.co.uk/news/uk-england-bristol-35105838

New Range of Buy-to-Let Mortgages from Leeds Building Society

Published On: December 27, 2015 at 10:44 am

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Categories: Finance News

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New Range of Buy-to-Let Mortgages from Leeds Building Society

New Range of Buy-to-Let Mortgages from Leeds Building Society

Leeds Building Society has launched a new range of mortgages with cashback for existing buy-to-let borrowers.

Existing buy-to-let landlords hoping to add to their property portfolio or remortgage investments they already own can choose from an exclusive range of competitive products, each with £250 cashback.

They include: a two-year discount buy-to-let mortgage at 2.10%; a two-year fixed rate deal at 2.60%; and a five-year fixed rate product at 3.39%.

All of these deals are available at up to 60% loan-to-value (LTV) and come with a free valuation for properties worth up to £500,000 and fees-assisted legal services. They also have a low fee of £199.

Buy-to-let deals up to 70% LTV are also available through the lender.

Director of Business Development at Leeds Building Society, Martin Richardson, comments: “Adding the cashback benefit for existing buy-to-let borrowers complements some of the other changes we have made to criteria on this type of lending.

“We keep our lending criteria under active review and listen carefully to feedback from borrowers and intermediaries to find ways we can improve our service and develop products which better suit customer need.”1

The building society made changes to criteria on its buy-to-let mortgages earlier this year, including increasing the maximum number of properties an investor can hold to eight.

Currently, Leeds requires a minimum income of £25,000 for borrowers, but this has been altered slightly to allow joint income earners with less than £25,000 annual income to apply, so long as their joint income is over £40,000.

It requires rental income to cover at least 125% of interest payable on the buy-to-let variable rate.

1 http://www.propertyreporter.co.uk/finance/leeds-announces-btl-range-changes.html

Prospective Buyers Must Now Save for 24 Years

Published On: December 26, 2015 at 2:44 pm

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Prospective homebuyers must now save for up to 24 years for a deposit large enough to secure them a mortgage, claims new research.

The Resolution Foundation think-tank has used the Bank of England’s latest study of household finances to suggest that as house prices are rising sharply, it will now take almost 25 years for low and middle-income households to raise a deposit if they save 5% of their disposable income every year.

Prospective Buyers Must Now Save for 24 Years

Prospective Buyers Must Now Save for 24 Years

This is lower than the time needed just before the recession, but is significantly lower than the three years needed in the 1980s and 90s. Additionally, this news arrives despite interest rates remaining at the record low of 0.5%, as set by the Bank of England (BoE) during the financial crisis.

Chancellor George Osborne has launched a series of Help to Buy schemes, including shared ownership and taxpayer mortgage guarantees for first time buyers, promising to turn generation rent into generation buy.

However, Chief Economist at Resolution, Matt Whittaker, warns that Help to Buy may boost house price rises, pushing housing further out of reach for low-income households.

He says: “To the extent that these schemes have stoked demand so propped up house prices in recent years, they have served to make homeownership even less attainable for many, while increasing the gains flowing to older homeowners who have been the main beneficiaries of the sustained housing boom.”1

The think-tank has raised concerns that the increasing cost of homeownership is aggravating a generational divide – the baby boomers having accumulated financial stability and young workers struggling with lower wages.

Having analysed the BoE’s data, Resolution found that among households headed by under-45s, 28% of non-homeowners believe they will never be able to buy. Among the poorest fifth of households, this grows to 39%.

Co-founder of the Intergenerational Foundation think-tank – which campaigns for benefits for younger households – Ashley Seager, comments: “Today’s wealthy baby boomers found it easy to buy housing a generation or two ago, especially as MIRAS tax relief on mortgages was available to them.

“But now their children and grandchildren cannot access housing in anything like the same way.”1

However, he welcomes Osborne’s recent crackdown on the buy-to-let sector through the restriction on tax relief that landlords can claim.

The BoE’s Financial Policy Committee (FPC), which has the job of preventing future financial crises, also warns that it is becoming increasingly concerned about whether buy-to-let investors are driving an unsustainable boom.

Osborne is currently consulting over whether to give the FPC further powers over buy-to-let, which could cause the mortgage market to dry up.

1 http://www.theguardian.com/money/2015/dec/20/uk-home-buyers-save-24-years-housing-ladder-deposit-study

 

2015’s Property Hotspot Outside of London Named

Published On: December 24, 2015 at 11:48 am

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2015's Property Hotspot Outside of London Named

2015’s Property Hotspot Outside of London Named

Rightmove has announced the property market seeing the highest house price rises of the year: Margate. The Kent resort was the hottest part of Britain for homes outside of London in 2015.

It came out on top of the locations where asking prices have grown the most over the last 12 months. Fuelled by a host of Londoners seeking affordable homes outside of the capital, asking prices in Margate surged by 24.2% this year to an average of £204,631.

Margate has led a housing boom over east and north Kent towns that fall within London’s commuter belt. Also included in Rightmove’s top five were: Gravesend, where asking prices soared by 20.5%, Ramsgate at 18.6% and Dartford at 17.4%.

The only non-Kent area to land in the top five was Altrincham in Greater Manchester, where asking prices jumped by 21.9% to an average of £484,258. It is one of the wealthiest parts of the North West, with some homes fetching up to £5m.

The average increase in asking prices across England and Wales this year was 7.1%.

Top ten areas with highest house price growth outside London

Position

Area Average house price Jan 15 Average house price Nov 15

Comparison

1 Margate, Kent £164,786 £204,631 24.2%
2 Altrincham, Cheshire £397,097 £484,258 21.9%
3 Gravesend, Kent £214,308 £258,232 20.5%
4 Ramsgate, Kent £175,026 £207,591 18.6%
5 Dartford, Kent £233,811 £274,377 17.4%
6 Wokingham, Berkshire £445,973 £519,858 16.6%
7 Maidenhead, Berkshire £447,824 £521,962 16.6%
8 Luton, Bedfordshire £200,640 £233,662 16.5%
9 Slough, Berkshire £286,626 £333,010 16.2%
10 Westcliff-on-Sea, Essex £228,777 £265,136 15.9%

Outside of London, the most searched for areas on Rightmove this year were Bristol and Cambridge. Prospective buyers made 14m search enquiries for these cities. Third place went to York, followed by Milton Keynes and Norwich.

The property portal also suggests vendors put their property on the market during the second week of August. In 2015, Monday 10th August was Rightmove’s busiest day of the year, with 56m page views, as people tried to find a new home in time for Christmas.

Homes generally last 62 days on the website. Properties were sold fastest in Welwyn Garden City. Homes in the Hertfordshire town were listed for just 25 days, followed closely by Hertford at 26 days.

Top ten areas for quickest property sales outside London

Position

Area

No. of days on Rightmove

1 Welwyn Garden City, Hertfordshire 25
2 Hertford, Hertfordshire 26
3 Ely, Cambridgeshire 26
4 Leighton Buzzard, Bedfordshire 28
5 Letchworth Garden City, Hertfordshire 28
6 South Ockendon, Essex 28
7 Watford, Hertfordshire 29
8 Hitchin, Hertfordshire 29
9 Sandy, Bedfordshire 29
10 Purfleet, Essex 29

Spokesperson for Rightmove, Sam Mitchell, comments: “This year saw demand reach record levels for home hunters both buying and renting, and the ripple effect from London to the South East moved even further out to places like Essex and Hertfordshire, as you can see from how quick properties are selling in these locations.

“Usually, January is Rightmove’s busiest month, but the New Year rush stayed even longer this year and we recorded our busiest ever month in March.”1

1 http://www.theguardian.com/money/2015/dec/18/hottest-property-market-outside-london-margate-rightmove