Written By Em

Em

Em Morley

Gas Appliances to be Phased Out of British Homes

Published On: December 16, 2015 at 10:19 am

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UK housing could soon be facing a huge upheaval, as the UN climate change deal in Paris could mark the end of gas appliances in British homes.

Gas Appliances to be Phased Out of British Homes

Gas Appliances to be Phased Out of British Homes

Gas hobs, cookers, fires and boilers could all be phased out within 15 years under the agreement. Around 23m UK households use gas.

Additionally, all gas-fired power stations must close by the mid-2030s, unless they manage to remove CO2 from their emissions.

Policy Director of the Grantham Research Institute of Climate Change, Bob Ward, says that to meet Britain’s pledge to the deal, gas must be removed from properties in the UK.

He says: “Gas cookers will be phased out, probably as soon as possible. I suspect manufacturers will simply stop making them.”1 

The Government hopes to see greater adoption of alternative technologies, such as heat pumps and wind and solar power, for which there would be different energy tariffs charged depending on various situations, for example, whether the day is breezy or still.

If the proposal is enforced, the property industry will face chaos, particularly for those buying, selling, renting and letting out homes.

Landlords that are planning to refurbish their rental properties should consider the types of heating and cooking systems they put in.

Furthermore, over the next 15 years, homes with gas central heating may be worth less.

The Energy Performance Certificate (EPC) industry will also likely face turmoil, as currently, gas systems account for more than electrical ones.

Opponents have also noted that if 23m households must remove their gas appliances, this will create a lot of waste.

How much will this affect your property business and is it really necessary?

1 http://www.propertyindustryeye.com/huge-change-facing-property-world-as-gas-looks-set-to-be-phased-out/

 

Basel Committee Joins Crackdown on Buy-to-Let Sector

Published On: December 15, 2015 at 3:28 pm

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The buy-to-let sector could be hit by further restrictions, as the Basel Committee looks set to join the crackdown on property investment.

Basel Committee Joins Crackdown on Buy-to-Let Sector

Basel Committee Joins Crackdown on Buy-to-Let Sector

Mortgage experts have already warned that Chancellor George Osborne’s plans to attack buy-to-let taxes could destroy the market.

The Bank of England (BoE) is also joining the fight, after it called for new powers over the interest cover ratio on buy-to-let calculations.

The Basel Committee sets global financial standards. It wants banks to hold twice as much capital against mortgages when repayments are dependent on rental income. It fears that landlords will struggle to meet their repayments if they cannot find tenants for their properties.

This measure would double the amount of capital lenders must hold against a loan from 35% to 70%, pushing up the cost of buy-to-let mortgages and reducing supply.

The BoE’s Financial Policy Committee (FPC), managed by Mark Carney, warns that buy-to-let mortgages are twice as likely to break down than loans for owner-occupiers.

The FPC has requested powers from the Treasury to restrict lending to landlords, which could include limits on loan-to-value and loan-to-income ratios.

The buy-to-let sector is still growing strongly, despite activity dropping by 4% in November, according to a recent study by Connells Survey & Valuation.

John Bagshaw, of Connells, says buy-to-let remains an attractive venture for prospective investors.

He comments: “Much of the energy is being fuelled by a desire to out-manoeuvre the Treasury’s attempts to take more money from buy-to-let business.

“With the Chancellor imposing more fees and regulations on landlords in his most recent Autumn Statement, many would-be landlords are hurrying to get into the market before these changes kick in from April next year.”1

Buy-to-let investors and second home buyers will be charged an extra 3% in Stamp Duty from April.

1 https://www.landlordtoday.co.uk/breaking-news/2015/12/basel-committee-joins-assault-on-buy-to-let

Average UK house prices reach £300,000

Published On: December 15, 2015 at 3:14 pm

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The latest Office for National Statistics house price index has revealed that in the year to October 2015, the average price of property in Britain reached a substantial milestone.

According to the Index, UK house prices now average at £300,000, following a rise of 7% annually. This was also a 0.9% increase from the year to September.

On a seasonally adjusted scale, typical house prices in the UK rose by 0.8% between September and October this year, in comparison to a decrease of 0.1% during the same period one year previously.

Country changes

In the year to October 2015, average house prices increased by 7.4% in England, 1% in Wales and 0.9% in Scotland. However, the greatest rise was recorded in Northern Ireland, where prices were up by 10.3%.

What’s more, prices paid by first-time buyers were 5.9% higher than in October 2014. Existing owners saw prices increase by 7.4% over the same amount of time.

Where mix-adjusted house-values in October reached £300,000 in England, they stood at £174,000 in Wales, £196,000 in Scotland and £158,000 in Northern Ireland.

Average UK house prices reach £300,000

Average UK house prices reach £300,000

English rise

Yearly house price growth in England were driven by an annual increase in the East of (10.4%) and the South East (9.5%). The North East however recorded the lowest yearly rise to October of 2.9%. In the capital, prices increased by 7.7% in the period, up from 7.2% in the previous month.

With the exception of London and the South East, UK house prices rose by 5.6% in the year to October, up from 5% recorded in the year to September.

Average property prices in 4 of the 9 English regions are now at their highest ever level. House prices in the South West and West Midlands fell slightly from their own record levels recorded in the previous month. The North East is the only English region yet to move past its pre downturn level.

Unaffordable

‘Today’s figures from the ONS show a marked month-on-month increase in house prices for October, as lack of supply and rising demand continue to make homeownership more unaffordable,’ remarked Jeremy Duncombe, Director, Legal & General Mortgage Club. ‘By contrast, recent statistics for the final months of 2015 have shown a dip in the market: however it’s typical to see such a decrease in activity as we approach Christmas. House prices have risen strongly throughout the year, well beyond the level of inflation and wage growth and, without a strong supply-side initiative from the Government, will likely rise well into 2016.’

‘Recent initiatives such as Help to Buy will work to ease some of the pressures on the housing market in the new year, but more must be done to prevent a continuing rise in unaffordability. The Government must look to a strong supply-side programme by building more homes across the country. Moreover, existing homeowners looking to rightsize must be incentivised through tax breaks and reductions in stamp duty. Through these measures, the Government will go a long way to reduce pressure on the market, unlocking a vast amount of property and preventing the current cycle which is locking more and more people out of the market,’ he concluded.

 

 

 

 

 

 

Host Your Very Own Festive Open House

Published On: December 15, 2015 at 2:49 pm

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Moving house near Christmas is rarely on the top of anybody’s festive to-do list, but if you have an empty rental property, now might be the time to make your investment stand out.

Renters often take a break from searching for properties before Christmas, so why not host your very own open house? This way, you can advertise your empty property without prospective tenants having to find you.

Host Your Very Own Festive Open House

Host Your Very Own Festive Open House

Get into the festive spirit with these open house tips:

Keep it Christmassy

Hosting an open house is a great way to not only show off your property, but also meet with hopeful tenants. Create a festive atmosphere with classic decorations and some Christmas tunes on in the background. You want people to see the potential of your property though, so keep decorations simple – a nice wreath on the front door will welcome guests and some fresh greenery will make the home feel alive.

You could also find a special scented candle to spread the aromas of Christmas through the property – who can say no to the smell of gingerbread?

Choose the right time

Naturally, everyone is super busy before Christmas, so finding a good time to host an open house can be a nightmare. But don’t panic – consider people’s schedules and when they are likely to be free. Weekend evenings are a no-no as many people have parties to attend or family to entertain. Think a weekday afternoon after work or a Saturday morning before people head out for some last-minute shopping.

Advertising 

Spread the word around people you know – do they have any friends or relatives who may be in need of a home? You could also ask your current tenants whether they know anyone that might be interested.

Use the internet to your advantage too. If you have social media, push the message and ask your friends to share your posts. Also look out for any tenant forums and post a message there. There may also be an online news board for your local area where you can advertise.

And remember! 

If you do host an open house, remember to talk to your guests and ask them to note down their name and email address so that you can contact them at a later date and get some feedback.

Make the most of the festive season by showing off your property and meeting prospective tenants!

NLA’s Latest Campaign Will Help Landlords

Published On: December 15, 2015 at 12:14 pm

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NLA's Latest Campaign Will Help Landlords

NLA’s Latest Campaign Will Help Landlords

The National Landlords Association (NLA) has launched a new campaign that hopes to help landlords in making their lettings businesses more profitable.

Reinventing Renting is designed to identify opportunities for buy-to-let investors.

The campaign includes many useful resources, including guides and presentations, on various topics. They will help landlords:

  • Choose the right investment.
  • Improve financial planning
  • Expand their portfolios and maximise gains.
  • Reduce their exposure to a range of risks associated with renting out property, including: imminent interest rate rises, rent arrears and rogue tenants.

Reinventing Renting focuses on the landlords that are struggling to make a profit, by exploring different business approaches and tenant markets, while offering assistance to landlords hoping to make their business more profitable.

The campaign arrives after announcements in the summer Budget and Autumn Statement, which could seriously hit profitability within the sector.

The NLA has also identified some of the good and bad characteristics of being a landlord in its Vogue or Rogue section.

Chairman of the NLA, Carolyn Uphill, says: “As the leading landlord association, we’re here to provide landlords with all the tools and information needed to make a success of letting.

“Over the next few months, Reinventing Renting will look at some of the key issues for landlords and provide support and tips to improve the way they run their business.

“The campaign has something for both new and experienced landlords and will be particularly useful for those who are struggling to make things work or worried about how the changes to mortgage interest taxation will affect them in the future.”1

For more landlord advice, look here: http://www.landlords.org.uk/reinventingrenting

1 http://www.landlords.org.uk/news-campaigns/news/nla-launches-new-campaign

Rental market sees start of seasonal slowdown

Published On: December 15, 2015 at 11:48 am

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A new investigation by Landbay suggests that the UK rental market entered a seasonal slowdown over the last month. Research from the report shows that rents fell by 0.4% in November to stand at £1,290.

There was no festive cheer for landlords in London, where rents were down by 0.6%, bringing down the overall UK average. Typically, the rental market in the capital is sensitive to fluctuating demand from tenants and often sees this type of seasonal slowdown as demand from the summer relaxes.

Yearly rises

However, rents did continue to rise on a year-on-year basis. UK rents were 2.9% greater than in November last year, with wages also up by 3.0%.

These rent increases were driven by one-bed homes, popular with young professionals. Rents in these properties were up by 4% year-on-year, while three-bed properties saw a 3.6% increase.

Rents have seen a upward trend since January 2013 and have climbed by 7% from this period. Wage growth has risen by 4.8% over the same timeframe. One-bedroom rents have increased by 8.6%.

The Southeast was revealed to be the area with the quickest rental growth over the last year.

Rental market sees start of seasonal slowdown

Rental market sees start of seasonal slowdown

Slowdown

John Goodall, CEO of Landbay, said that, ‘a seasonal Christmas lull has finally managed to put the brakes on the speedy London rental market. But this is a case of notching down a gear rather than an emergency stop, Rents continue their upward trajectory, albeit at a slightly less frenetic pace.’ He observes that,’ London’s rental market is a very sensitive to changes in supply and demand. The November dip is likely to reflect softening tenant demand as new hiring slows in the run-up to Christmas and fewer people move to the capital for work.’[1]

‘On an annual basis rental inflation is tracking wage growth quite closely,’ he continued. ‘Scotland was only part of the UK to see rental growth below 2%. The big picture is that we are in the midst of a housing crisis and that wages are rising-both these facts mean that rents are more likely than not to continue to climb next year. With house prices rising at the same time it is a little wonder that there is such a strong appetite for investments that are secured against British homes.’[1]

[1] http://www.propertyreporter.co.uk/landlords/rental-market-slows-as-uk-enters-festive-period.html