Written By Em

Em

Em Morley

The 5 Best Cities for Rental Growth

The buy-to-let boom has been brought to the forefront of property news recently, as landlords have been hit with a reduction in tax relief on their mortgages.

But some buy-to-let investors have benefitted from buying in the past 12 months, in areas with reasonable house prices and soaring rents. This puts London out of the picture, as house price growth has overwhelmed yields.

Cities/towns with the highest growth in rent prices

Position

City/town

Annual rent growth

1 York 26%
2 Edinburgh 19%
3 Oxford 18%
4 Milton Keynes 15%
5 Coventry 14%

Property group CBRE has studied the 29 most economically significant towns and cities in the UK, and here are the top five where property investors purchased last year:

York

York is full of medieval property, Georgian town houses and cobbled streets. But despite this picturesque landscape, house prices are 10% lower than the national average. Buy-to-let investors can therefore pick up a bargain and make substantial yields.

Rent prices in the city rose by 26% in the last year, according to CBRE. Students going to the universities and young professionals are driving up demand, and subsequently rents, to an average of £901 per month.

The 5 Best Cities for Rental Growth

The 5 Best Cities for Rental Growth

Edinburgh

Edinburgh’s arts festival and film festival contribute £261m to the Scottish economy every year, and the city has expected GDP growth of 30% in the next ten years, making it a thriving area.

Earnings are 20% higher than the UK average and landlords may be attracted to the growing luxury development quarter in central Edinburgh.

Oxford 

Various industries, including motor manufacture and bioscience, bring workers into Oxford. These professionals often want to rent before they buy. The city has also seen a rise in wealthy foreign students, who also look for high quality rental homes.

However, investors should be aware that house prices in Oxford have soared. Additionally, the surge in potential tenants is expected to ease.

Milton Keynes 

The town of Milton Keynes is the fastest growing urban area in Europe. Its growing population has caused a huge demand for housing, which has driven up rental prices by much more than the national average of 4%.

Furthermore, Milton Keynes is becoming a popular choice for commuters, with trains to Euston and Clapham Junction.

Coventry

The birthplace of St George has two big universities – Coventry and Warwick. The large student population has one of the highest rates of house sales in the country, as tenants become buyers.

Most cities have a gap between its cheapest and most expensive streets, but Coventry’s housing wealth divide is particularly marked.

The top 5 buy-to-let hotspots

City/town

Average rent per month Average house price growth in past year Average house price Population growth by 2020 Population in 2020

Average age of resident

York £901 3% £228,907 3% 210,263 39.5 years
Edinburgh £942 21% £260,647 8% 525,341 38.5 years
Oxford £1,459 16% £431,143 -1.7% 149,867 34.3 years
Milton Keynes £949 3% £237,399 8% 282,131 36.1 years
Coventry £677 0% £162,788 7% 355,990 36.8 years

 

 

 

 

 

Locals Love Estate Agent’s Company Car

Published On: August 8, 2015 at 11:56 am

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Last week, we had a look at an unlikely south coast agent’s company car – a Morgan 3 Wheeler – now there’s a rival vehicle in the retro company car competition.

Here’s the three-wheeled option: /unlikely-company-car-for-south-coast-agent/

Now feast your eyes on Brian, a Citroen 2CV6 Special from 1987.

Richard Wheeler, of Chester estate agent Somerville’s, has a special connection to Brian.

Richard’s father, Brian, restored the car and used it to take his wife on a tour of Europe in the early 2000s.

Brian was well known within the local area, but sadly died suddenly from pancreatic cancer.

However, the car bears his name and has been made-over with Somerville’s branding.

Richard says that Brian is used to travel between accompanied viewings.

He adds: “He happily toots to anyone who waves, as he pootles by.”

And Brian is also highly regarded by the locals.

Richard says: “Bringing Brian into the frontline of the business has been a great success.

“One little boy even came into the office with a picture of Brian that he’d cut out of the local magazine, asking if he could meet him.

“Recently, one customer called in asking if he could take a selfie with Brain for his Facebook page.”

Richard concludes: “Brian is a tribute to my late father and I’m sure he would have been delighted to be remembered as an old French car.”1

1 http://www.propertyindustryeye.com/agents-vintage-company-car-drives-affections-of-public/

Couple Charged £22 to Change Light Bulbs

Published On: August 7, 2015 at 4:51 pm

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Categories: Landlord News

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Couple Charged £22 to Change Light Bulbs

Couple Charged £22 to Change Light Bulbs

A couple were left shocked after they found out their letting agent had charged them £22 to change two light bulbs.

Julia Irvine, 32, and John Watson, 29, said the situation was “laughable”.1

Upon looking at the breakdown of costs, they realised they had been charged £17.50 in labour.

The job was among repairs conducted when they left the flat in Bristol earlier this year.

The agent, CJ Hole of Clifton, said: “Damage costs and contractor fees can and do vary according to need.”1 

1 Stichbury, T. (2015) ‘Fury over £22 bill to fit 2 light bulbs’, Metro, 7 August, p.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Britain Needs More Slums, Says Oxford Student

Published On: August 7, 2015 at 3:59 pm

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An Oxford student has faced criticism after saying the answer to the housing crisis is to build more slums.

Libertarian think-tank, the Adam Smith Institute, has defended the student’s proposals for favela-style homes after he was sent death threats on social media.

In a blog on the Adam Smith Institute’s website, Theo Clifford, a Philosophy, Politics and Economics student at Merton College, Oxford, suggested abolishing safety regulations to introduce slums in the UK for those who cannot afford a home.

Clifford, who describes himself as a “recovering Lib Dem” who hopes to become a “yuppie”, wrote: “Sweeping deregulation is the only way to provide Britain with the slums it is crying out for.”

Clifford won the Institute’s Young Writer on Liberty competition in the 18-21 age group.

He continued: “Britain has a sore lack of property slums. Government regulations designed to clamp down on cowboy landlords restrict people’s ability to choose the kind of accommodation in which they want to live.”

Clifford argues that communal living is appealing to young people, as he too is struggling to get onto the property ladder.

Britain Needs More Slums, Says Oxford Student

Britain Needs More Slums, Says Oxford Student

He added: “Housing should cater to a wide array of preferences. Some people might not feel like they need a bedroom space as large as the state expects, while others might not mind sharing a bathroom with another family if it means lower rents.”

He claimed that over-regulation is the cause of the housing crisis: “The market desperately wants to provide houses people can live in at prices they can afford – but in the eyes of local authorities, these houses are too small, or too tall, or the ceilings are too low, or the windows not energy efficient enough.”

After the piece was posted online, Clifford received a stream of online abuse. One critic tweeted Clifford, calling him a “wet behind the ears libertarian who’s never laid in bed listening to rats scuttling about his kitchen.”1 

Another exclaimed: “’Britain needs more assassinations of @Theo_Clifford’ is about as offensive as this blog.”1

A housing law solicitor told Clifford he is “but a child & yet to learn to distinguish immediate self interest from general social benefit.”1

Clifford replied to one opponent: “A cramped flat you can afford is better than the sprawling detached house you can’t.”

He then asked: “Wonder if my proposal for a #NationalNetflix is going to get me as many death threats as yesterday’s housing essay.”

However, he was defended by the Institute’s Deputy Director, Sam Bowman, who said: “People should attack us, not him. We can take it. Theo is making the point that disadvantaged people who are price-sensitive might prefer an energy efficient house or one with a small bedroom than none at all.”

Bowman continued: “The word slum is quite emotive. But it is what people would call these dwellings if they were allowed. Theo is asking people to think past what the word slum means to us and ask if our minimum building standards are too restrictive?”

Bowman described Clifford as “an extremely smart, reasonable and pleasant chap” who “is destined for great things.”1 

Clifford did not receive support from the South East London branch of anti-austerity group, the People’s Assembly, which tweeted: “No, Theo, the country doesn’t need more slums, but yes maybe less building regulation, something rad needed to kickstart supply.”1

The Adam Smith Institute helped with the intellectual foundation of Margaret Thatcher’s Conservative governments and promotes free market thinking.

Clifford has previous blogged on the Liberal Democrat Voice website, where he called for deregulation of Sunday trading laws – now Government policy – and defined Lib Dem economic policy as a “belief in the strength of the free market to provide long-run economic growth.”1

1 http://www.independent.co.uk/news/uk/home-news/britain-needs-more-slums-thinktank-forced-to-defend-blog-proposing-favelastyle-dwellings-in-the-uk-10444002.html

Landlords Object Licensing Scheme in Court

A decision on whether to allow a judicial review regarding a blanket licensing scheme is expected on Thursday 14th August.

Landlords Object Licensing Scheme in Court

Landlords Object Licensing Scheme in Court

This week, Croydon Property Forum – a group of landlords, agents and developers – requested a judicial review from the judge, Sir Stephen Silber, at the High Court.

Croydon’s licensing scheme is set to come into force on 1st October 2015, with five-year licenses costing £750 per property.

The judge heard arguments on whether the council has consulted properly.

Representing Croydon Property Forum, Jonathan Manning said that the council had not sought the opinion of landlords and had ignored the developers that are building “large quantities of housing in the borough, much of which will be made available as private rent.”1

Representing Croydon Council, Clive Sheldon QC argued that it is common sense for developers that are hoping to invest in the borough to do plenty of research.

Meanwhile, another licensing scheme is facing criticism in the centre of Blackpool. The scheme would cost up to £940 per property.

Landlords have warned the council that rents will be increased if the scheme is granted.

They believe that the council already has sufficient resources and legislation to tackle rogue landlords.

1 http://www.propertyindustryeye.com/clock-ticks-down-to-blanket-licensing-scheme-as-objectors-go-to-court/

Small Builders Have Same Obligations as Bigger Developers

Published On: August 7, 2015 at 1:55 pm

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Small property developers, of schemes with up to ten homes, will face the same economic penalties as bigger firms after a successful challenge to new planning policies.

The High Court has made changes to recent planning law, claiming that the Government was wrong to grant affordable housing exemptions to schemes built by small, local builders.

The Secretary of State for Communities and Local Government hoped to encourage small developers through the exemptions.

Small Builders Have Same Obligations as Bigger Developers

Small Builders Have Same Obligations as Bigger Developers

Two councils challenged the Government – Reading and West Berkshire – and are celebrating their triumph.

However, house builders say that as a direct result, fewer homes will be built as small schemes will become financially impossible and the housing crisis will worsen.

Councillor Tony Page, of Reading Borough Council, welcomed the ruling by Mr Justice Holgate, saying it is “excellent news, not just for Reading and West Berkshire councils, but for all the people looking for affordable places to live.”1

The Department for Communities and Local Government will attempt to overturn the decision.

It states that it is “disappointed by the judgement”, as the new legislation had “aimed to reduce red tape and extra costs that prevent developments getting built.”1 

Law firm Coffin Mew says that the decision will particularly affect urban residential developments and small rural sites.

Head of Commercial Property Law at the company, Nick Leavey, explains: “The economic viability of small schemes is often on a knife edge and this decision is likely to pull the rug from underneath those difficult to develop sites.

“It is also likely to have a negative effect on land values for future deals.”1

Chief Executive of the Federation of Master Builders, Brian Berry, comments: “It is not appropriate to impose the same level of obligations applied to large multi-million pound developments to the smallest of developments being brought forward by the smallest firms.”

He warns that the ruling will worsen the housing crisis, rather than help to address it.

He says that many small builders will now change plans that could have been economically viable, but are now not.

Berry concludes: “Many firms will avoid building on certain sites due to lower margins – a situation that could lead to fewer homes being built overall in the years ahead.”1

1 http://www.propertyindustryeye.com/small-developers-hit-with-same-obligations-as-uks-biggest-builders/