Posts with tag: Buy-to-Let

LandBay reduces rates and fees across many products

Published On: April 3, 2017 at 10:44 am

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LandBay has moved to cut its rates and fees across its product range, for both amateur and professional buy-to-let landlords.

Rates now begin from 3.39% for a 2-year fix ad 3.59% for a 5-year fix. In addition, arrangement fees up to 75% on standard products have been reduced from 1.75% to 1.5%.

Changes

The specialist buy-to-let lender has also increased the maximum age at the end of term from 80 to 85 years. It has also cut the first-time HMO purchase buy-to-let experience requirement by 50% to 12 months.

In addition, expats are now able to borrow via a UK limited company, with self-employed expats with a minimum income of £60,000 also considered.

All of these products will be available through Landbay’s approved distributor partners: Atom, Brightstar, Complete fs, Connect Mortgages, Mortgages for Business, The Buy-to-Let Business and TBMC.

LandBay reduces rates and fees across many products

LandBay reduces rates and fees across many products

Fantastic

Paul Brett, managing director of Intermediaries at Landbay, said: ‘These new products offer a fantastic opportunity for brokers to help more of their landlord clients, who will be needing specialist advice and products at this time of significant regulatory and fiscal change.’[1]

‘We are constantly listening to our intermediary partners and to the requirements of the market. Our rates have been reduced across the board to ensure we remain competitive whilst our criteria enables us to serve a wide range of specialist borrowers seeking a fast decision,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/4/landbay-reduces-rates-and-fees-across-most-btl-products

 

How has Stamp Duty impacted on the investment market?

Published On: April 3, 2017 at 8:50 am

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Categories: Landlord News

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New research conducted by My Home Move indicates that the number of properties being purchased by investors has risen sharply since the introduction of the additional 3% stamp duty in April last year.

Figures back to 2014 show that the investment market has halved in volume since 1st April 2016. This indicates that landlords and additional home buyers have been reluctant to pay the additional charge.

Controversial

Doug Crawford, CEO of My Home Move, said: ‘Even though a year has passed, the introduction of the Stamp Duty levy still remains controversial. On the face of it, the changes to Stamp Duty were presented by the Government as a tax that would affect greedy landlords-those who were snapping up properties away from first-time buyers. However in reality, people who buy additional homes aren’t just landlords with vast portfolios of properties, but parents looking to help their children while at university, or retirees wanting to buy themselves a holiday home.’[1]

‘I’d argue that the Government’s tax play has affected individuals looking for a second property far more than the career landlord. If anything, the changes have resulted in money being redirected into gifted deposits, particularly for second steppers and middle movers,’ Crawford continued.[1]

In the months preceding the Stamp Duty changes, gifted deposits made up roughly 8.4% of all purchase transactions. Once the law changed, data showed this rose to 9.3%, with so-called ‘second steppers’ and ‘middle movers’ the biggest beneficiaries.

How has Stamp Duty impacted on the investment market?

How has Stamp Duty impacted on the investment market?

Rises

Moving on, Crawford observed: ‘It would appear from the data, that while investors were choosing to back-off on buying additional properties, the number of gifted deposits was rising at a rate of around 1%; the equivalent of an additional 3,000 properties were bought using a gifted deposit in the six months after the stamp duty change.’[1]

‘Our research has revealed that while ‘second steppers’ and ‘middle movers’ have always received the greatest number of gifted deposits, after the Stamp Duty change this number increased by 8% over the year. The Bank of Mum and Dad has once again had to step-in to help those struggling financially to move beyond their first home – a situation caused by the lack of housing stock and inflated property prices,’ he concluded.[1]

 

[1] http://www.propertyreporter.co.uk/property/what-has-happened-to-investment-properties-since-the-stamp-duty-hike.html

 

North East property prices remain fairly static

Published On: March 31, 2017 at 9:58 am

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Categories: Property News

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The latest property market analysis from KIS Housing has revealed that house prices in the North East stayed almost static for the second-consecutive month.

Average regional property values are just 0.1% down over the last four weeks, with prices nearly similar to one year ago. Values are only 0.07% lower than in March 2016. In cash terms, this is a difference of just £124.

Similarity

In fact, across the region, prices remained more-or-less the same to four weeks ago, sliding by only 0.1% or £307 in cash terms. This is in comparison to a rise of 0.1% in February but a fall of 3.1% in January.

At presently, a typical North East home will cost £163,467-compared to £163,591 at the end of March 2016.

By area, there was more noticeable rises in Blyth, Washington and Gateshead and Morpeth, with values here increasing by 2.9%, 1.3% and 1% respectively.

Rents

North East rents fell slightly to £576 in March, a fall of 2.2%.

Yields remain unchanged, with investors enjoying an average return of 4.3%. This means that North East investors are enjoying a better return than those in London (3.2%) and Cambridge (2.3%).

The cheapest place to rent in the North East is Easington, where one can expect to pay an average of £351 per month. Tynemouth was the most expensive in general terms, at £892pcm.

Peterlee was found once again to be the buy-to-let capital, with an average return of 6% for investors.

North East property prices remain fairly static

North East property prices remain fairly static

Fascinating

Ajay Jagota, founder and MD of Keep it Simple, said: ‘Last month I attributed frozen North East house prices to buyers and sellers alike adopting a wait-and-see approach in the run up to the triggering of Article 50-and I see no reason to revise that opinion this month.’[1]

‘With Theresa May taking that step this very week, it will be fascinating to see if we see more profound movement one way of the other in the weeks ahead.’

Some analysts have noted a growing North-South divide returning to the UK property market, with the North East lagging behind the rest of the country. These results, with prices falling as a whole and falling much more conspicuously in places like Peterlee and Easington do nothing to disprove that theory,’ he continued.[1]

Concluding, Jagota said: ‘But this doesn’t have to be gloomy news. What’s really positive for property in our region is quite how resilient and robust North East house prices have remained in the face of so much uncertainty and upheaval over the past 12 months, changing by little over £100.’[1]

 

[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-static-for-second-consecutive-month.html

 

UK house price growth falls in March

Published On: March 31, 2017 at 9:04 am

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Categories: Property News

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The latest report from Nationwide shows that house price growth in the UK fell in March by 0.3%, with annual growth also falling by 3.5%. This took the average price to £207,308.

In addition, the investigation shows that the gap between regional price growth is closing, with this now at its narrowest since 1978.

Rise and Falls

During the first three months of 2017, six regions saw property prices rise, six saw falls and there was no alteration in the East Midlands.

Robert Gardner, Nationwide’s Chief Economist, noted: ‘The spread in the annual rate of change between the weakest and strongest performing regions was at its narrowest since 1978 at 6.8%, the second smallest gap on record.’[1]

‘The South of England continued to see slightly stronger price growth than the North of England, but there was a further narrowing in the differential. Northern Ireland saw a slight pickup in annual house price growth, while conditions remained relatively subdued in Scotland and Wales,’ he continued.[1]

Quarterly Figures

Quarterly, overall year-on-year prices rose by 4.1%. By country, rises were:

  • England 4.7%
  • Northern Ireland 3.8%
  • Scotland 2.9%
  • Wales 1.2%
UK house price growth falls in March

UK house price growth falls in March

By region, prices in the South West, Outer South East, Outer Metropolitan, London and East Anglia all rose by 5% year-on-year.

Despite regional growth rates beginning to converge, there is still disparity in price levels. This becomes more profound when looking at prices relative to their 2007 peak. Prices in London for example are almost 60% above their 2007 levels, while those in the North, Yorkshire and Humberside and the North West are lower than their 2007 peaks.

Experts feel that the March dip in prices is not a trend, with monthly figures tending to be volatile. In addition, the fall is not thought to be connected with the trigger of Article 50 this week.

Muddle

Jonathan Hopper, managing director of Garrington Property Finders, observed: ‘The market has become a muddled mix of extremes, with double digit reductions going on at one end of the spectrum and gazumping at the other. So it would be overly melodramatic to view the Nationwide’s latest data as a turning point. In reality, average house prices have been meandering for several months against the volatile and uncertain economic backdrop.’[1]

‘Buyer intent remains strong in many parts of the UK, but buyers have become acutely price sensitive. No one wants to buy a home only to realise they could have got it cheaper if they had waited so on the front line, prospective buyers are scrutinising prices harder than ever,’ he added.[1]

Russell Quirk, chief executive officer of eMoov, noted it is unusual to see a dip in the spring market. He went on to say: ‘Although an air of uncertainty on the run up to Wednesday’s formal process may have left a few buyers on the fence, it is unlikely to have had any direct impact itself. Although the market remains healthy which is great news for existing homeowners, those facing the sizable task of climbing the UK ladder are opting to concede and rent. Not just those at the first rung, but seemingly the third and fourth as well.’[1]

[1] http://www.propertywire.com/news/uk/march-dip-uk-house-prices-seen-blip-not-trend/

Rogue landlord fined over £7,000

Published On: March 30, 2017 at 8:46 am

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Categories: Landlord News

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A rogue landlord has been told to pay over £7,000, after a series of failings put the lives of his tenants at risk.

Mr Daniel Woulfe pleaded guilty to poorly managing two rented homes in Worthing and not carrying out works to improve standards.

Failings

The court appearance was Woulfe’s third, after officers from Worthing Borough Council’s private sector housing team inspected the two properties.

Fire safety provisions within the houses were found to be substandard, as were the electrical installations.

After he had ignored improvement notices, the council decided to act by telling Worthing Borough Council’s legal services team to start prosecution.

Mr Woulfe pleaded guilty at Worthing Magistrates Court to 11 offences under the Management of Houses in Multiple Occupation (England) Regulations 2006 and the Housing Act 2004.

He was subsequently fined £4,250, with full costs of £2,811.95 and a victim surcharge of £50, bringing the total to £7,11.95.

Rogue landlord fined over £7,000

Rogue landlord fined over £7,000

Substandard

Councillor Dr Heather Mercer, executive member for customer services at Worthing Borough Council, said: ‘This is another example of the need for the invaluable service provided by the Council’s Private Sector Housing Team, clamping down on landlords running substandard and hazardous properties.’[1]

‘We have a responsibility to do all in our power to help create healthy, safe places in which people can thrive – so we will continue to act where we see substandard properties putting people at risk. Poor landlords must realise that court action is not the end of the matter and Worthing Borough Council will persist in ensuring that landlords comply with their legal duty to manage and run their properties safely,’ she added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/landlord-fined-over-7-000-for-putting-tenants-at-risk

 

Wales sees largest rental growth in the UK

Published On: March 27, 2017 at 10:19 am

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Categories: Landlord News

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Rents throughout England and Wales increased in all bar two of the eight regions analysed by the latest Your Move England & Wales Buy to Let Index during February

This was led by increases in Wales, where rents grew by an average of 7.7% year-on-year to February to hit £593 per month. Despite this, Wales remains one of the cheapest places to rent.

Rental Costs

The North East and Yorkshire and the Humber were found to be the only regions in the report with cheaper rents than Wales, with average rents of £545pcm and £566pcm respectively.

In terms of rental growth, the East and South East of England led the way, with rents in these regions rising by 5.6% and 3.4%. Average rents in the East of England currently stand at £868 per month, while in the South, this figure rises slightly to £878pcm.

Valerie Bannister, Letting Director at Your Move, said: ‘Areas in the South East and East of England have traditionally offered much better value than the capital and this has tempted many Londoners to look further afield for rental properties.’[1]

Capital Pains

In London, rents continued to fall, with the city the only region surveyed to see rents slide both month-on-month and year-on-year.

The average rental property in London was let for £1,280pcm in February 2017-1% lower than at the same period one year ago.

Continuing, Bannister noted: ‘The dramatic rent increases in London have now slowed as people look outside the capital in order to meet their housing aspirations. Renters in London could be reaching the limits of their affordability as prices dropped back 1% in the last year. This will be one to watch as the year progresses.’[1]

Wales sees largest rental growth in the UK

Wales sees largest rental growth in the UK

Falls

London was not the only region to see rents slip year-on-year. In the South West prices fell by 1.5% in the last 12 months to reach £662pcm.

Taking England and Wales as a whole, the average rent stood at £798 in February. This was the same as in January, but was down from the £811 seen at the end of 2016.

In terms of yields, the report found that the average was 4.1% in February. This is down on the 4.9% seen at the same period last year.

Unsurprisingly, places with higher house prices command the smallest yields. It is not a surprise then to see that the average yield in London was only 3.2%, lower than in any other part of the country.

On the other hand, properties in the North East saw the largest yields, returning an average of 5.3% in the last month.

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/wales-sees-rents-rise-faster-than-anywhere-else-in-the-uk