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Em Morley

Accord buy-to-let range changes

Published On: August 14, 2015 at 9:23 am

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Categories: Landlord News

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Accord Buy-to-Let has moved to assist landlords to manage the initial costs of buying or remortgaging by extending its range of £195 product fee mortgages.

Now, the fixed-rate mortgages will be available to landlords with LTV’s of at 60% and 65% and as such, will offer the opportunity to fix the rate for three or five years with the intermediary-only lender, which is part of the Yorkshire Building Society Group.[1]

Cashback

In addition, all house purchase mortgages will offer £500 cashback upon completion, with customers looking to remortgage benefiting from a free standard valuation and a choice of free standard legal fees or £300 cahsback on completion.[1]

For 60% LTV, Accord is offering a three-year fixed rate of 2.84% and a five-year fixed rate deal of 3.44% for house purchasing. Landlords looking to remortgage at 60% LTV can now get a 2.99% fixed-rate for three years or a 3.59% fix for five years. Additionally, landlords with a 65% LTV who are in the market for a new property can fix for 3.09% or five years at 3.74%.[1]

Landlords looking to remortgage at the same LTV have the choice between a three-year rate of 3.24% or a five-year rate of 3.89%.[1]

Accord buy-to-let range changes

Accord buy-to-let range changes

Cost-effective

Chris Maggs, Accord Buy-to-Let Commercial Manager, said, ‘we know that the upfront costs associated with both house purchase and remortgage can be off-putting when brokers are trying to find the mortgage which best fits their clients, so these competitive, lower-fee mortgages are designed to give different options for those who want to minimise initial costs.’[1]

‘The longer-term fixes will give landlords the security of a guaranteed rate for the next three or five years, which we think will prove popular with brokers and customers,’ Maggs added.[1]

[1] http://www.propertyreporter.co.uk/finance/upfront-costs-for-landlords-cut-at-accord.html

 

 

OnTheMarket Doubts Zoopla’s Property Inventory

Published On: August 14, 2015 at 9:04 am

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Categories: Landlord News

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The chief of OnTheMarket (OTM), Ian Springett, has voiced his doubts on Zoopla’s property inventory.

His opinion follows Zoopla’s trading update to the City. Read more here: /zooplas-trading-update-to-the-city/ 

OnTheMarket Doubts Zoopla's Property Inventory

OnTheMarket Doubts Zoopla’s Property Inventory

Springett says: “It is hard to reconcile the property stock claims of Rightmove and Zoopla Property Group.

“Rightmove recently reported a 10% increase in UK residential listings since the start of the year to 1.1m, claiming to display 50% more than any other portal.

“Yet Zoopla Property Group stated today on its UK sales and rental search pages that it has 662,636 properties for sale and 215,652 properties for rent. This gives a total figure of 878,288.

“Moreover, searches conducted in the last 24 hours on the Zoopla portal show UK (England, Scotland and Wales) sales and lettings properties, including sold subject to contract, let and shared accommodation, total just 675,540.”

Springett also states that OTM is continuing to expand: “Zoopla’s trading update only serves to underline the success and progress of OTM in continuing to disrupt the property portals market.

“Its tepid growth of 213 agent branches since its April 2015 update is a drop in the ocean in the context of its 23% loss of agents (which equates to 3,812 agents) between 30th September 2014 and 31st March 2015.

“The fact is that Zoopla has lost overall share of agents and traffic as OTM has become established and as the overwhelming majority of our members retain the dominant market leader as their other portal.

“Contrary to suggestions made by Jeffries (joint sponsor of Zoopla Property Group’s IPO last year), our one other portal rule remains in place.

“OTM was described six months ago by Alex Chesterman [founder of Zoopla] as a short-term event, but Zoopla Property Group’s own trading update paints a very different picture.

“Support for OTM continues to increase daily.”

He concludes: “With such a strong desire for it to succeed from agents all across the UK – and a substantial growth in its traffic figures to more than 5.2m visits in July – we are confident that OTM is here to stay and that we can ultimately achieve our objective to develop a property alternative to the market leader.”1

1 http://www.propertyindustryeye.com/onthemarket-casts-doubt-on-zooplas-property-inventory/

Zoopla’s Trading Update to the City

Published On: August 13, 2015 at 5:49 pm

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Categories: Landlord News

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Property portal Zoopla reported that agency numbers have started to pick up again.

It says that it had a net increase of 213 new branches since its last trading update in April.

Analysts at the bank that advised Zoopla on its stock market debut last year, Jeffries, made a statement: “In our view, the net growth and reduced churn of agency branches demonstrates that those that left the platform to join OnTheMarket [OTM] have found it wanting, despite the relaxation of the one other portal rule.

“Over the next 12 months, we expect many of the 3,000 or so Zoopla leavers to return.”1

Despite Jeffries’ claim, OTM revealed that the one other portal rule has not been relaxed. Zoopla’s own statement does not reference OTM.

Zoopla's Trading Update to the City

Zoopla’s Trading Update to the City

Another analyst, William Packer, of Exane BNP Paribas, says that although Zoopla has reported a return to agency growth of 1%, membership is still 24% below record highs. He also described traffic growth as “tepid” and said that the client loss since quarter three (Q3) last year and loss of traffic share is “challenging.”1

Zoopla’s statement claimed that its total UK agency membership at the end of July was 12,556, up from April’s figure but down from 16,261 a year ago.

Total Zoopla membership is now 16,131, including 2,672 developers, 684 overseas and 219 commercial.

In its trading update to the City, Zoopla reported that UK agency churn is “returning towards more normal historic levels and an increase in the number of new and returning member inquiries.”

It is states that its listings inventory has continued to expand, from 828,000 to 882,000 properties.

Traffic was also strong, with 45.6m average monthly visits between 1st April and 31st July.

The update also said that Zoopla is sending “record numbers of appraisal leads to members, up 103% over the same period last year and helping our members win more business.”

Zoopla claims that after acquiring uSwitch on 1st June, it is trading well.

Zoopla says that its founder, Alex Chesterman, is committed to continue leading the group in the long term, “working to achieve the significant long-term growth potential of the Group.”

Additionally, it says that the board “is proposing some changes to Alex’s remuneration, principally the introduction of a Value Creation Plan, in order to appropriately incentivise and reward his continued substantial contribution to the performance of the Group.”

A general meeting of shareholders must approve this proposal.

The update continues, stating that Chesterman has “further been granted authority by the Chairman to sell up to a maximum of 4.25m shares, representing c.1% of the Group’s issued share capital, over the coming months to settle personal tax and other liabilities.”1 

The balance of his shares will be locked up until 23rd June 2016, the second anniversary of Zoopla’s float on the stock exchange.

In May, Zoopla revealed its first results since the launch of OTM, stating that it had lost 23% of its UK agency members as of 31st March.

At that time, there were 12,449 member agents, down from 16,261 the previous year.

It also announced that it lost a further 106 agents in April. However, this recent update highlights promising gains, but the number is still lower than last year’s figures.

Last month, Rightmove reported a rise in agent numbers when it revealed record results to the City, with a growth in total customer numbers, to 19,590 and agency levels up 2% in the first half of this year.

1 http://www.propertyindustryeye.com/zoopla-delivers-trading-update-to-the-city/

Arrears and repossessions fall in Q2

Published On: August 13, 2015 at 4:49 pm

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Categories: Finance News

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An encouraging new report indicates that the repossession rate continued to drop during the second quarter of 2015, despite already being at its lowest ever level.

A review from the Council of Mortgage Lenders shows that the rate fell to 0.02%, equivalent to just 1 in 5,000 mortgages. Even more encouraging was the fact that arrears also continued to fall.

Decreases

In all, there were 2,500 properties taken into possession during the second quarter of this year, a reduction from 3,000 in the previous quarter and 5,400 from the same period last year. Of these properties, 1,800 were in the owner-occupier market, with 700 in the buy-to-let market.[1]

The total number of mortgages with arrears akin to 2.5% or more of the mortgage balance was 106,400, representing 0.96% of all mortgages. This was the lowest since records began in 2008.[1]

For loans with arrears in excess of more than 2.5% of balance, 100,700 were owner-occupier and 5,700 buy-to-let. In both the owner-occupier and buy-to-let markets, the total and proportion of mortgages in arrears dropped or remained consistent in all bands. [1]

Improvement

‘Across all measures, mortgage arrears and repossessions are continuing to improve,’ said CML director general Paul Smee. ‘We continue to see some amplification of the downward trend in repossessions, which may bring into question our repossessions forecast for 2015 as a whole.’[1]

Smee noted that this trend, ‘is very welcome,’ and ‘Low interest rates are acting as a significant support for home-owners in general, and are likely to be helping to stave off low level arrears for stretched households in particular.’ He went on to say, ‘as ever, we urge borrowers to think ahead to when interest rates rise and to contact their lender without delay if they are in difficulty-prompt action helps to prevent problems worsening.’[1]

Arrears and repossessions fall in Q2

Arrears and repossessions fall in Q2

Success

Brian Murphy, Head of Lending at Mortgage Advice Bureau, commented, ‘a record low for repossessions and the falling number of loans in arrears have been two of the big success stories for mortgage borrowers in the post-recession era. Both measures continue to show signs of considerable improvement and consumers are clearly finding it easier to keep personal finances from slipping away from their control.’[1]

‘The record low base rate has played a big party in helping households keep their loan commitments in check. The prospect of a higher base rate is clearly the biggest single factor that threatens this progress, but rate rises will be slow and steady – giving consumers plenty of time to adjust. The tightening of loan criteria following the Mortgage Market Review (MMR) will also help keep things on a stable footing moving forward,’ Murphy continued.[1]

Mr Murphy concluded by saying the reactions to yesterday’s unemployment figures, ‘show the timing of the first rise remains a moving target, but homeowners should still take the chance to safety-proof their finances well in advance. Looking into the current rates before the winds change is likely to prove a wise move and there has seldom been a better time to seek a well-priced remortgage deal.’[1]

[1] http://www.propertyreporter.co.uk/property/arrears-and-repossessions-fall-for-second-quarter.html

 

North Surpasses South in House Price Growth

Published On: August 13, 2015 at 4:47 pm

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Categories: Property News

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North Surpasses South in House Price Growth

North Surpasses South in House Price Growth

July had the strongest home sales for that particular month since 2007.

After a quiet start to the year, monthly sales overtook 2014 levels for the first time last month.

Sales increased by 13% on the previous month, fuelled by growth in the north of the country, according to LSL Property Services.

LSL claim the number of transactions was 90,000 in July, the highest since July 2007, when there were 120,845.

The firm’s latest house price index puts the average price in England and Wales at a new record of £279,515.

This is a monthly increase of 0.3% and 3.7% annual growth.

However, as the north is now surpassing the south, annual house price inflation is now greater when London and the South East are removed, at 4%.

LSL also found that house prices in 27% of local authority areas are at record highs.

The greatest house price growth was seen in Reading, Berkshire, at 15.2%.

However, London came eighth out of the ten regions in England and Wales regarding annual house price rises, at just 1.8%.

 

 

 

 

 

 

Crossrail to Add £5.5bn to House Prices

Published On: August 13, 2015 at 3:44 pm

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Categories: Finance News

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The high-speed rail service, Crossrail, is not due to launch until 2018, but is already increasing house prices along its route.

Crossrail’s Land and Property Director, Ian Lindsay, believes that the service will add a total of £5.5 billion to values. This prediction arrives as 26 miles of tunnels under London are completed. The first homes above a Crossrail station have also been finished.

The line ranges from Reading in the west to Shenfield and Abbey Wood in the east and will drastically reduce travel times to the capital. Additionally, it will increase the capacity of the Tube by 10%.

Head of Research at Hamptons International, Johnny Morris, comments: “But the big change is in the built environment and areas around the stations.”1 

Regeneration is developing alongside the creation of the new transport system, with 3.3m sq. ft. of residential, office and retail space planned above Crossrail stations.

Chairman of Crossrail, Sir Terry Morgan, observes: “If you go back in time, railway has always created regeneration… as the Tube grew so did London, and this Crossrail programme will go through exactly the same experience again.”1

A total of 57,000 new homes will be built on the route and councils are updating town centres. Clever homebuyers and investors are beginning to pinpoint the neighbourhoods that would benefit them.

Woolwich, South East London, is set to become a major transport area. The Woolwich Crossrail station is being constructed within the 88-acre Royal Arsenal Riverside, a Berkeley Homes development that will feature 5,000 new homes when completed in 2030.

Over a thousand of these properties will be above the station and the first phase has already been built on the east side.

90% of the 631 apartments at Cannon Square have already been sold off-plan. The remaining three-bedroom, two-bathroom flats are priced from £647,500 and a duplex penthouse costs £875,000.

Managing Director of Berkeley Homes (East Thames), Karl Whiteman, says: “Crossrail is without doubt the most important new transport infrastructure for London and the South East for a generation. The new Crossrail station will make Woolwich one of the best-connected parts of the capital.”1

Furthermore, Crossrail has planning permission for almost 400 new homes at Armourer’s Court, in five buildings set within a landscaped garden on the west side of the station.

Since the Crossrail project was approved in 2008, the value of homes around the stations has risen by 20% more than underlying capital appreciation in the capital and South East, according to CBRE.

CBRE expects house prices to increase further, with Crossrail adding 13%, or £60,000, more than average growth by 2018. This will be around 20% in London, with the typical house price rising by £100,000.

1 http://www.homesandproperty.co.uk/property-news/news/crossrail-effect-high-speed-east-west-rail-network-set-add-ps55-billion-property-values