Written By Em

Em

Em Morley

Special Gifts for Property Lovers

Published On: December 18, 2015 at 12:00 pm

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Categories: Property News

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If you have a friend or relative whose home is their pride and joy, a gift for their property is likely to go down a treat this Christmas.

Here, we’ve picked out some special presents that will be perfect for all the property lovers out there!

Bake off

Special Gifts for Property Lovers

Special Gifts for Property Lovers

Do you have a keen baker in the family? If so, kitchen gods and goddesses will love anything they can use to whip up a festive treat – why not try some snowflake cookie cutters or some Christmas cake tins to store their goodies?

Smell the coffee

Nowadays, a basic coffee maker just won’t do – for serious coffee fans, there are machines out there that can be programmed to make your favourite beverage just as you’d like it. Perfect to wake up to after the party period!

The sights and smells

Who doesn’t love the many smells of Christmastime? From gingerbread baking to fresh, pine branches – there’s always that one smell that gets us into the festive spirit. Choose from a variety of Christmas scented candles to spread the joy through someone special’s home.

Rockin’ around…

We know all the words, we hum the tunes as we decorate the tree… who doesn’t secretly love Christmas songs? If you have a music-loving friend, give them a gift they’ll cherish with a 1950s-style wireless radio. You can even buy them with line-in sockets, making them perfect for the modern man or woman.

Bring out the bubbly

Does one of your friends host the best Christmas parties? They’ll certainly have the most glamorous affair when they use their new set of sparkling champagne flutes. Make sure they celebrate in style this festive season.

Shake it

There’s always an inventor in the family, someone who wants to mix up a unique concoction for you to try. Fuel their inner bartender with their very own cocktail shaker set. What could possibly go wrong

 

LSL calls for Treasury to stop targeting landlords

Published On: December 18, 2015 at 11:56 am

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Categories: Landlord News

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Property firm LSL became the latest high-profile organisation to call for the Treasury to stop targeting buy-to-let landlords. Instead, the firm thinks that the Government should be searching for other alternatives to the housing crisis.

The calls came off the back of a new report suggesting that average rents have fallen below the £800 mark in England and Wales.

Decline

Data from the report conducted by Reeds Rains and Your Move indicate that average rents currently stand at £799 per month, down by 1.2% month-on-month.

Despite this monthly fall, rents have actually risen by 4% year-on-year, with more rises predicted for early in 2016.

‘Landlords have become fashionable targets for the Government and Bank of England,’ believes Adrian Gill, director of both LSL firms. He feels that the plans for a 3% stamp duty tax hike announced in the Autumn Statement represent, ‘overdue attention for the sector that provides homes for more than one in five Britons.’[1]

Gill feels that, ‘negative campaigns and unconstructive policies-designed to attack landlords rather than support tenants-will not make rents lower or provide more homes.’ He says that, ‘the effect will be quite the opposite, forcing rents upwards.’[1]

LSL calls for Treasury to stop targeting landlords

LSL calls for Treasury to stop targeting landlords

Worsening finances

In addition, LSL reports that yields for landlords have dipped, with tenants’ finances also worsening, in turn leading to more arrears. ‘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,’ said Gill.

‘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,’ he continued.[1]

Rental hikes

Concluding, Mr Gill said that, ‘it is a property sellers market. Similarly as yields continue to feel the pressure of rising prices, other factors will need to adjust in turn. That means higher rents.’[1]

‘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/

 

2015 set to be record year for intermediaries

Published On: December 18, 2015 at 10:29 am

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Categories: Finance News

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A new investigation from the Intermediary Mortgage Lenders Association (IMLA) has shown that intermediaries arranged a record-high level of new mortgages in 2015.

The intermediary section saw its share of new mortgages by value move past 70% in the second quarter of the year, reaching 71%. In quarter three, brokers arranged loans totalling £33.3bn:the greatest quarterly total since the second period of 2008.

New Lending Rise

Analysis from the IMLA report indicates that brokers were responsible for 69% of new lending by value, in this first nine months of 2015. This was a rise of 8% from the same period in 2014, putting them well on the way to beating the record 66% annual share recorded in 2007.

Already, the £85.9bn in lending that intermediaries have arranged in the three quarters of 2015 to date is greater than the annual totals achieved in 2009-2013. In addition, this is just 12% less than the 2014 total of £98bn.

However, the report indicates that brokers’ increased percentage of activity has not been as set across the whole market. Proportionately, remortgages and homemovers are using the intermediary channel more than ever before, but the proportion of first-time buyers sorting out a mortgage directly with their lender has risen from 32% to 37% between 2006 and 2014.

Despite brokers reclaiming their market share over the course of the year, the number of first-time buyers going direct to lenders remains higher than in 2007. This could be down to lenders’ marketing tactics to lure first-time buyers.

The percentage of mortgage lenders going direct, as opposed to using intermediaries, is highlighted by the table below:

Screen Shot 2015-12-18 at 10.14.15

 

[1]

Technology

Technological advances have traditionally made direct channels with financial services stronger. This said, the IMLA observes that this isn’t the case in mortgage lending, where the majority of consumers still feel that they need to liase with a professional.

This, according to the IMLA, is due to the complexity of mortgages as a product, in addition to the vast number of products available on the market.

2015 set to be record year for intermediaries

2015 set to be record year for intermediaries

‘The intermediary channel has been revitalised and looks like ending 2015 having arranged an unprecedented share of mortgages, as the emphasis on advised sales changes the landscape,’ noted Peter Williams, Executive Director for IMLA. ‘Today’s market is more regulated and more competitive than at any point since the recession and brokers’ expertise and impartiality means that they are well-suited to navigating the mortgage maze on behalf of borrowers.’[1]

Williams went on to say, ‘distribution of some financial products has been revolutionised by changing technology, yet as things stand and despite execution-only options being available, the overwhelming majority of consumers still prefer to speak to a professional either in person or over the phone about getting a mortgage. Changes undoubtedly lies ahead, but whatever the advice process of the future looks like, consumer interests must remain at its core.’[1]

[1] http://www.propertyreporter.co.uk/finance/record-breaking-end-to-2015-for-intermediaries.html

 

Landlords and Agents Warned that Buy-to-Let Mortgages Could Crash

Published On: December 18, 2015 at 9:43 am

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Categories: Finance News

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The private rental sector looks set to face further pressure, as the Government reveals that the Bank of England (BoE) will be given extra powers to regulate buy-to-let finance.

This announcement has added to the series of changes that will affect landlords and the lettings industry.

From April, buy-to-let investors and second home buyers will face a further 3% Stamp Duty charge when they purchase a property.

Additionally, the amount of mortgage interest tax relief for landlords will be reduced and those selling up will have to pay capital gains tax (CGT) much sooner than they do at present.

The Treasury has launched its consultation on cracking down on buy-to-let borrowing, which includes draft regulation.

Landlords and Agents Warned that Buy-to-Let Mortgages Could Crash

Landlords and Agents Warned that Buy-to-Let Mortgages Could Crash

The BoE’s Financial Policy Committee (FPC) would be given powers to limit what buy-to-let investors can borrow. This could mean lower loan-to-value ratios (LTVs) or a higher ratio of rental income to cover mortgage payments.

Chancellor George Osborne says the consultation “is the next step in ensuring that the FPC has the tools it needs to protect our economy”1.

The Residential Landlords Association (RLA) opposes the plans, stating that making access to buy-to-let lending harder could cut the supply of rental homes.

Chairman of the RLA, Alan Ward, claims: “There is no clear evidence that the property boom is caused by buy-to-let investors, when rising prices are mainly concentrated in London and the South East.

“This is largely fuelled by foreign investors and speculators treating our property as a commodity.

“The RLA supports the principle of the BoE ensuring that lending does not pose a risk to the stability of the financial sector. It is important that lenders do not saddle landlords with debts which they cannot pay back. But landlord investment is essential to the supply of homes to rent.”

He adds: “The overwhelming majority of landlords are responsible borrowers providing homes as a long-term business.”1 

The Council of Mortgage Lenders (CML) expects the number of buy-to-let mortgage products to fall by 22% in the next two years.

It has estimated that there were 116,000 new buy-to-let mortgages this year – the highest since 2007. Next year, it predicts that this will drop to 105,000 and to 90,000 in 2017.

The CML’s Paul Smee comments: “We understand the rationale for putting the macroprudential tools at the BoE’s disposal, but also recognise that this does not necessarily mean they will be used.

“In our view, buy-to-let does not constitute a market that currently requires further macroprudential intervention, especially as the effect of several recent tax changes is yet to be fully felt and evaluated.

“We urge policymakers to be mindful of the risk of unintended consequences that could adversely affect the private rented sector, alongside their focus on ensuring that the buy-to-let market does not pose a threat to financial stability.”1 

The consultation follows an interview with the head of the BoE, Mark Carney, who expressed he is “fearful of the risk that investors would all seek to sell at the same time if there were a general decline in house prices”1.

However, the Managing Director of Hunters estate agents, Glynis Frew, has also voiced his concerns. He says: “There have been a number of attacks on landlords recently, including the Autumn Statement’s 3% Stamp Duty announcement.

“Landlords as a whole are being portrayed as greedy investors who are looking to take advantage of tenants. This is simply not the case. The majority of landlords actually own one buy-to-let property and are your typical average Joes.

“It seems strange that no such restriction is in place for those with multiple properties of 15 or more.

“Such financial burdens will inevitably lead to a further rise in rents, as landlords will have to compensate for the extra measures somewhere.”1

The consultation is open until 11st March 2016 and can be found here: https://www.gov.uk/government/news/government-launches-consultation-on-further-housing-market-powers-for-the-bank-of-england

1 http://www.propertyindustryeye.com/agents-and-landlords-alerted-as-buy-to-let-mortgages-look-set-to-plunge/

 

Visit One of These Stunning Stately Homes This Christmas

Published On: December 17, 2015 at 3:26 pm

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If you’re a property lover, visiting one of the country’s many stately homes is always full of intrigue and delight. These grand houses have become synonymous with British culture and many are decked out for the holidays…

We’ve picked some of our favourites for you to visit, each offering something unique and exciting. So what are you waiting for? If you’re still not in the Christmas spirit, these treasures are sure to inspire you.

A cultural Christmas 

This year, Hever Castle in Kent is hosting its Christmas Around the World event. You and your family can learn how different countries celebrate Christmas and the history behind their traiditons.

Step into other worlds with a variety of rituals and practices. Decorations are based around how other cultures decorate their homes and there are even some delicious foods for you to try!

The children will also love the donkeys in Hever’s nativity scene (although these are only here at the weekends) and can learn about donkey welfare.

Broaden your knowledge here: http://www.hevercastle.co.uk/whats-on/christmas-around-the-world-2015-3/

Santa train

Entertaining the children is always important at Christmas time, and they are bound to love the Santa express at Castle Ward in County Down. The train takes you and your loved ones down an illuminated lane to visit Santa at his home.

Upon arrival, Mrs Claus will welcome you with a tasty treat and children will also be given a special gift!

Enjoy this unique treat here: http://www.nationaltrust.org.uk/events/13c2bcf9-6d41-4cd9-b40c-12a288461121/pages/details

A literary treat

Chatsworth House in Derbyshire is always decorated around a different theme over the festive period, and this year, guests can enjoy The Wind in the Willows at the grand estate.

Tour the house as it displays scenes from the classic Kenneth Grahame novel. Adults and children alike will enjoy the many sights of these well loved characters.

Step into the story here: http://www.chatsworth.org/attractions-and-events/christmas-at-chatsworth

Take the plunge

It may not be for everybody, but who doesn’t love ice-skating at Christmas? (Even if you just watch from the side!) And what could more delightful than skating against the backdrop of Hampton Court Palace?

Sure to get everyone into the Christmas spirit, the historical palace is hosting its very own winter treat with its outdoor ice rink and ice bar… Maybe leave the skating to the kids.

Have a go here: http://www.stately-homes.com/thedms.aspx?dms=3&venue=3500420&feature=1262&w=100%25&events=1&do=1&bob=R&uv=1

The Importance of Inventories

Published On: December 17, 2015 at 3:07 pm

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Categories: Lettings News

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The Importance of Inventories

The Importance of Inventories

An inventory is one of the most important documents you can have as a landlord. They ensure that your property is in a good condition when your tenants move in and that your property is returned to you in the condition it was let in. They are also crucial if a dispute arises with your tenants.

An inventory should be a thorough list of all of the contents of a property, as well as its structure, fixtures and fittings.

Your inventory will of course be longer if you rent out a furnished property – but don’t think you don’t need to spend as much time on it because your property is unfurnished.

All inventories should detail the condition of the property’s: Doors and walls; flooring; windows; utilities; bathroom; kitchen; and outdoor areas, if there are any.

If your property is furnished, all of the extra items you provide for your tenants should be specified and the condition noted. It is advised that you state the brand of each item, so that if a dispute arises, you know how much should be deducted from the tenant’s deposit. Also remember that saying something is in a good condition or satisfactory condition is subjective – instead, detail any damage or wear.

You may choose to compile the inventory yourself, it may be your letting agent’s responsibility, or you could use an independent inventory clerk. Whoever conducts the inspection, it is wise to take photographs with date stamps as evidence of the check.

Create the document before your tenants move in so that they have something to refer to when they look around their new home. Both parties should then sign the document and keep a copy.

At checkout, you should use your inventory to compare the state of the property once the tenants have left. If a dispute arises over deposit deductions, your deposit protection service will use the inventory as evidence.

Remember to expect fair wear and tear, as a property that has been lived in for a period of time will not be exactly the same as when someone new moved in.

But always keep your inventory up to date and accurate – it protects not only your property, but also your goods and money.