Written By Em

Em

Em Morley

Celebrity Landlords and Their Luxury Properties

Published On: December 20, 2015 at 4:20 pm

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Categories: Landlord News

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Being a landlord can be profitable, rewarding and exciting. So exciting that even celebrities are doing it – imagine finding out your landlord was Mick Jagger!

But not many of us will be able to rent from the rich and famous, as their lets are typically luxurious and exclusive.

Celebrity Landlords and Their Luxury Properties

Celebrity Landlords and Their Luxury Properties

So what kind of properties do celebrities rent out?

The most popular type of property is houses, with 62% of celebrity landlords letting this style. Next is apartments at 16%, followed by ranches or estates at 13%, private islands at 7% and boats at 2% – who has a private island to rent out?!

Singers/musicians are the most likely famous people to become landlords, with 31% of all celebrity investors coming from this profession. Actors follow at 27%, those in business at 10%, sports personalities and writers at 8%, TV personalities at 6%, magicians at 4%, and fashion experts and chefs at 2%.

It is unsurprising that most of these celebrity rental properties are in the USA, at 70%, but the Caribbean follows at 17%, with just 6% being in the UK, 4% in France and 2% in Brazil.

Richard Branson’s Necker Island is arguably the most exclusive celebrity let, costing up to £32,915 per night. Renting it for a whole year will set you back a whopping £12,014,623. So what do you get for all this? Well, the island sleeps up to 27 guests, so you can bring your family along. The main house has eight rooms and there are a further six villas on the island. The price does include meals, drinks and the service of 60 members of staff. Guests can also enjoy the zip line down to Turtle Beach and the many animals that roam the island, thanks to Branson’s passion for preserving endangered species.

So what kind of landlord is Mick Jagger? The rock star owns the aptly named Stargroves, a private island costing up to £16,132 per week – at least it’s cheaper than Branson’s! The island’s beachfront villa is Japanese-inspired and boasts six bedrooms, a tennis court and pool. Certain members of staff are included in the cost, such as a housekeeper, gardener and personal chef. Reportedly, Jagger personally vets his prospective guests before they arrive – at least he’s following standard practise!

For something a little more down to Earth, Hilary Swank has an apartment in Manhattan that can be rented out. But this still isn’t for everyone; living here will cost you a huge £12,910 a month. For this, you can enjoy a two-bedroom apartment in New York with views of the Empire State Building and a fully kitted out gym.

Okay, so are there any celebrity landlords that actually offer affordable properties?

Well yes, in fact, Robbie Fowler has a portfolio of around 80 rental homes, most of which are in the North West of England. The majority of the footballer’s properties are terraced houses – perfect for the average family. And as fans of Manchester City Football Club say, “We all live in a Robbie Fowler house” (to the tune of Yellow Submarine of course).

Tips for keeping energy bills down…and heat in!

Published On: December 20, 2015 at 11:15 am

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Winter is upon us and for many over 50’s, this can lead to months of worrying about their energy bills.

As temperatures plummet, one in five people in this age bracket said that they will struggle to pay their bills, with one in ten saying that they would go to bed earlier or get up later to avoid putting their heating on.

Concern

Despite energy prices remaining fairly constant from the same period this year, over half of over 50’s are concerned about the cost of their energy bills ahead of the coldest period. The greatest concerns are from those living in the North East, Scotland and Wales.

61% of over 50’s said that they would have to wear extra clothing or just put the heating on at certain times of the day in order to economise. 30% said that they would only heat certain parts of their home, while 30% said that they would only heat specific rooms.

Shockingly, one in eight people said they wouldn’t go in some rooms of their home due to the cold!

Lisa Harris, head of communications for Saga, said, ‘keeping warm in winter is not a luxury it’s essential for many to keep fit and well over the winter months. People shouldn’t be afraid of putting the heating on, but one in ten admit that they would only put their heating on as a last resort. However, there are often lots of relatively simple measures that people can take to help keep control of their energy bills.’[1]

Tips for keeping energy bills down...and heat in!

Tips for keeping energy bills down…and heat in!

Tips to stay warm!

Before it is too late and Jack Frost and his friends take their grip on proceedings, here are five top-tips to keep heat in and costs down:

  • Properly seal windows and doors

20% of heat from a home escapes through cracks in doors and windows. Using draught excluders, curtains and efficiently sealing windows can massively help in keeping properties toasty warm

  • Put heating on a timer

By setting a central heating timer, bills can be slashed. Setting the heating to come on for a couple of hours on the morning and in the evening is much-more cost effective than leaving it on all day! What’s more, those chilly showers in the morning will be a little more bearable when the heating has been on for a while!

  • Insulate your loft

It has been proven that loft insulation is effective for at least 40 years and can save up to £250 on energy bills every year. Those living in bungalows should look at getting their loft insulated as a priority, with the larger surface area of the roof in comparison to a house meaning heat can escape at a faster rate.

  • Get walls insulated

Insulating walls properly can save the average property owner £460 per year on energy bills. It is important to get the correct type of insulation installed. Either Cavity Wall Insulation or Internal/External Wall Insulation will reduce heat loss.

  • Turn off electrical items

The Energy Saving Trust suggests that homeowners in the UK could save £1.7bn per year by turning off electrical items. Turning off lights, TV’s, phone chargers and game consoles are all measures that could save money. Don’t think that by putting something on standby means that it is off…turn it off properly!

 

[1] http://www.propertyreporter.co.uk/household/top-tips-to-save-energy-and-cut-fuel-bills.html

 

 

Top Ten Fastest Growing London Boroughs of the Year

Published On: December 19, 2015 at 12:32 pm

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Categories: Property News

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Top Ten Fastest Growing London Boroughs of the Year

Top Ten Fastest Growing London Boroughs of the Year

House prices in outer London continue to outperform property values in more central parts of the capital, as buyers are priced out of inner areas. But which London boroughs have seen the highest price growth of 2015?

Merton has experienced the fastest rising prices this year, with annual growth of 30%. The southwest borough is home to Wimbledon and Mitcham. Houses here now cost around £670,771 – among the capital’s highest average property prices.

However, the second fastest growing borough is Newham, which is one of the cheapest. The area is home to the Olympic Park and has consistently topped monthly price growth indices over the year. In the past 12 months, the average house price in Newham has increased by 25% to £396,012, according to Rightmove’s latest House Price Index.

Newham’s growth is in part down to new developments in Stratford, but Forest Gate is set to become a property hotspot when Crossrail arrives in 2018.

Director and Housing Market Analyst at Rightmove, Miles Shipside, comments on the study: “This is December’s best price performance in the capital since 2008. The most buoyant sector in London overall is the one made up of first time buyer-type properties – two bedrooms or fewer – up by 11% annually.”1 

Top ten fastest growing London boroughs of 2015

Position

 Borough Average house price Dec 2015 Average house price Dec 2014 Monthly price change

Annual price change
1 Merton £670,771 £516,951 6.3% 29.8%
2 Newham £396,012 £316,671 4.9% 25.1%
3 Camden £1,207,626 £991,428 15.3% 21.8%
4 Redbridge £445,398 £370,152 2.8% 20.3%
5 Hammersmith & Fulham £1,095,788 £919,982 4.6% 19.1%
6 Barking and Dagenham £280,128 £236,161 1.9% 18.6%
7 Waltham Forest £431,917 £370,775 -0.4% 16.5%
8 Islington £770,411 £663,773 -3.2% 16.1%
9 Southwark £645,101 £560,235 1% 15.1%
10 Harrow £549,153 £477,812 2.1% 14.9%

East London’s Barking and Dagenham continues to be a hit with first time buyers, thanks to its good value homes and new build developments. It is the only borough in the capital where the average property price is under £300,000. However, this isn’t expected to last long, as it is London’s sixth fastest growing borough, with prices rising by 18.6% over the year.

Homebuyers and buy-to-let investors are advised to watch the area, as a planned extension of the London Overground will link the huge Barking Riverside regeneration project to the Gospel Oak to Barking line.

Over 10,000 homes will be built at Barking Riverside in the next couple of decades, alongside new schools, shops, offices and health centres. It is located on a former power station site beside the River Thames.

Another east London borough to keep an eye out for is Waltham Forest, home of Leyton, Chingford and Walthamstow. The average house price here has soared by 16.5% over the year to £431,917. Demand has surged in the borough, as buyers are pushed out of more central locations.

Estate agent Savills expects prices in Waltham Forest to rise up to 20% by 2020, so get in there early!

1 http://www.homesandproperty.co.uk/property-news/buying/london-house-prices-2015s-top-ten-fastest-rising-boroughs-a93736.html

Rents slowing across Britain

Published On: December 19, 2015 at 10:20 am

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New figures indicate that rents are seemingly slowing across Britain.

Data from the Homelet Rental Index shows that rents on new tenancies during the last three months dropped in the majority of regions. In addition, nine out of ten landlords said that they were not looking to raise rents on existing tenancies in the first half of 2016.

Steady

Rents for new tenancies either remained steady or slipped slightly in 10 out of the 12 UK regions in the three months to November, in comparison to October.

Throughout England but excluding London, the average rent for a tenancy signed in the previous three months was £743 per month, 0.7% down on the last three-month period. In Greater London, the average rent was found to be £1,544, down by 1%.

Rents slowing across Britain

Rents slowing across Britain

Furthermore, the Index reveals that just two regions saw increases for rents on new tenancies. In Yorkshire and Humberside, rents on new tenancies were 0.8% greater than in the previous three months, averaging £626 per month. In the East Midlands, rents were up by 1.2% at £635 per month.

Just 34% of landlords plan to increase rents in the coming year.

Relationships

Martin Totty, Barbon Insurance Group’s chief executive officer, said, ‘the research reveals the vast majority of landlords enjoy strong relationships with their tenants and are keen to keep them. Just 4% said they were unhappy with their current tenants, while 18% said high tenant turnover was the most stressful part of being a landlord, more than cited on any other single issue.’[1]

‘Being a landlord is a long term investment and attrition of tenants is not something landlords desire; our own clients tell us they would rather retain a good tenant over the longer period than seek additional income,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/12/rents-slowing-across-uk-says-homelet

 

 

 

Chancellor Warned to Ease Off on Private Landlords

Published On: December 18, 2015 at 3:10 pm

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Major property firm LSL Property Services has called for the Treasury to ease off on private landlords, suggesting that the Government looks for solutions to the housing crisis.

It also reports that the average monthly rent price in England and Wales fell to just under £800 in November.

Chancellor Warned to Ease Off on Private Landlords

Chancellor Warned to Ease Off on Private Landlords

Your Move and Reeds Rains, both companies under LSL, claim that the average rent is now £799 per month, a 1.2% decrease on the previous month and down from September’s record high of £816.

Although rents have fallen on a monthly basis, they have increased by 4% annually and the firms expect to see further rises in the early spring of next year.

Director of the two firms, Adrian Gill, believes: “Landlords have become fashionable targets for the Government and Bank of England.

“This is overdue attention for the sector that provides homes for more than one in five Britons.

“But negative campaigns and unconstructive policies, designed to attack landlords rather than support tenants, will not make rents lower or provide more homes.

“The effect will be quite the opposite, forcing rents upwards.”

Two-and-a-half years ago, LSL predicted that rents would surpass the £800 mark in mid-2015; this forecast was accurate, with rents breaking through that level in July of this year.

LSL also reports that rental yields for landlords have dropped, while tenants’ finances have worsened, causing more rent arrears.

Gill continues: “For new entrants, or landlords looking to invest in additional properties to let, market conditions could be a little harder to navigate than six months ago.

“Choosing the right property in the right area is even more important when looking for the best rental yield on new investments.

“Partly this is down to enormous competition in the property purchase market – homes are being sold rapidly, whether to landlords or owner-occupiers. It is a property seller’s market.”

He adds: “Similarly as yields continue to feel the pressure of rising prices, other factors will need to adjust in turn. That means higher rents. Most likely this will push rents higher still and indicates an earlier spring for rent rises in 2016.

“Combined with the latest attacks on landlords from the Government, this could propel demand even higher for every single home that landlords do have to offer.

“A continued shortage of properties to let is the challenge to overcome and the Government needs to think pragmatically about this conundrum, rather than looking for political targets.”1 

1 http://www.propertyindustryeye.com/lay-off-private-landlords-lsl-firms-tell-chancellor/

Property Professionals Believe Osborne’s Plans Won’t Work

Published On: December 18, 2015 at 12:06 pm

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The majority of property professionals believe that Chancellor George Osborne’s plans for the housing market, as announced in the Autumn Statement, won’t work, with 57% stating that they will have a negative effect on the industry.

Property Professionals Believe Osborne's Plans Won't Work

Property Professionals Believe Osborne’s Plans Won’t Work

Experts believe that consequences could be: lack of confidence in the market; unachievable house building targets; and limiting the supply of rental property.

These findings are the result of a survey of 570 property professionals by specialist recruiter Deverell Smith.

Even most of the 21% that believe the measures will have an overall positive impact on the sector think that to create an affordable market means that other areas will take a hit.

Just under two thirds (66%) of respondents do not believe that the house building targets are achievable, while 58% think the extra 3% Stamp Duty charge for buy-to-let investors and second home buyers will restrict the supply of rental homes.

The biggest concern for the majority of experts is the long-term effect on private, smaller landlords and whether they will be forced out of the market, leading to more institutional landlords that offer higher prices to tenants.

Many professionals feel that the tax increase will have a positive effect on existing landlords, as a limited supply will increase rents. However, this will not benefit the many private renters in the country.

The firm’s Andrew Deverell-Smith comments: “With property playing such a vital role in our economic growth and the welfare of our society, it is understandable that it is a big focus in George Osborne’s latest plans.

“These opinions are from leading property industry experts who know and understand the market, and this highlights that there is a gap between expert industry estimations and Government strategy.”

He continues: “There are so many facets to the industry that a change in one area will always impact another. There is clearly no silver bullet.

“As a property recruiter, we know first hand not only of the shortage in construction workers, but the project managers, planning and surveyors required to deliver these ambitious housing programmes.”1

1 http://www.propertyindustryeye.com/osbornes-plans-for-housing-wont-work-say-almost-6-in-10-property-professionals/