Posts with tag: Buy-to-Let

NIA and NLA join forces to assist with energy efficiency regulations

Published On: March 16, 2017 at 10:20 am

Tags: Buy-to-Let,energy,energy efficiency,EPC,landlords

The National Landlords Association and the National Insulation Association have joined forces to give landlords a simple online facility in order to source local insulation installers.

This is an initiative to ensure that all landlords meet new energy efficiency standards, coming into force next April.

Efficiency Standards

The 2015 Energy Efficiency Regulations moved to set out minimum energy efficiency standards for England and Wales. These regulations make it unlawful for landlords to let out properties on a new lease that have an EPC rating below E from April 1^st 2018. This is unless the property is registered as an exemption.

Landlords must make sure that they plan sufficiently to mitigate the impact of the new regulation. Those with properties with an EPC below an E rating should take action now to avoid falling foul of the law.

Neil Marshall, chief executive of the National Insulation Association, said: ‘Our partnership with the NLA will provide a timely service to help private landlords to meet the new energy efficiency standards. Landlords can contact local NIA installer members via the NLA or NIA websites to arrange a survey and quotation.’[1]

NIA and NLA join forces to assist with energy efficiency regulations

‘They can be safe in the knowledge that NIA installers will have met stringent criteria and sign up to the NIA’s Code of Professional Practice providing added assurance and recourse,’ he added.[1]

Richard Lambert, Chief Executive Officer of the National Landlords Association, noted: ‘It’s important that landlords have access to the most trusted and reliable of local specialists, particularly when it comes to insulation and we hope that this online service will enable landlords to meet their obligations by making their properties more energy efficient.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/nla-and-nia-join-forces-to-help-landlords-meet-new-regulations

More backing for rental payments to be used to prove eligibility

Published On: March 15, 2017 at 2:52 pm

Author: Em Morley

Categories: Finance News

Tags: Buy-to-Let,mortgages,rental payments,tenants

Specialist mortgage lender Together has become the latest company to give its backing to the use of rental payments being used in order to measure the eligibility of individuals to secure mortgages.

Recently, an online petition has been set up by an individual tenant that urges regular rental payments to be considered as a measure of his eligibility to secure a mortgage when coming to purchase a property.

Popularity

Pete Ball, head of personal finance at specialist lender, Together, says that the support for the petition shows how popular the idea would be.

Ball noted: ‘The changes the Government has introduced in the buy-to-let sector were intended to level the playing field and ensure more property was available. But what this petition highlights is that there needs to be better access to finance alongside this, so that these aspiring homeowners can get a mortgage for the property.’[1]

‘The impressive surge in popularity of this petition is clear evidence of the growing frustration among thousands of renters that aspire to own their first home but are struggling to obtain a mortgage from the mainstream banks,’ he continued.[1]

More backing for rental payments to be used to prove eligibility

Criteria

Moving on, Mr Ball observed that many traditional lenders exercise rigid criteria, with proof of rental payments sometimes not taken into account as part of the process.

Concluding, Ball said: ‘As this petition clearly demonstrates there is a need to compile more detailed data on the credit profile of individuals, which will then help lenders to assess their applications when they look to obtain a mortgage. If there is a debate following the petition and it leads to new and improved measures in this space, that will be a positive step for both lenders and these aspiring homeowners.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/3/more-backing-for-using-rent-payments-as-iad-to-mortgage-eligibility

Buy-to-let purchase activity still sluggish

Published On: March 15, 2017 at 9:48 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,buy-to-let landlords,buy-to-let loans,Stamp Duty

The total number of buy-to-let loans taken out by buy-to-let landlords rose in January to the second highest monthly level since the Stamp Duty surcharge rises last April.

Figures from the Council of Mortgage Lenders show that the number of loans taken was at the greatest level, save for November 2016.

Remortgaging

However, rather than loans to invest in needed private rented housing, the activity was particularly driven by buy-to-let remortgage lending, which accounted for two-thirds of total lending.

The volume of loans for buy-to-let house purchases in January dropped to an eight-month low- partly due to the dip in activity during the Winter.

In contrast, buy-to-let remortgage lending reached its highest monthly level since November.

With mortgage interest tax relief set to be phased out from next month and given the fact the Bank of England has been given greater powers to oversee the buy-to-let sector. This in turn will make it harder for many buy-to-let landlords to get a mortgage, as activity levels in the sector will slow further.

Buy-to-let purchase activity still sluggish

Paul Smee, director general of the Council of Mortgage Lenders, noted: ‘Buy-to-let house purchase activity continues to be weak, despite strong buy-to-let remortgage levels. This will likely remain so going forward as lenders tighten affordability criteria ahead of the PRA mandated stress tests and the introduction of tax changes in April.’ [1]

‘Jeremy Leaf, north London estate agent and former residential chairman of RICS, said: ‘While there is little change month-on-month, the figures are encouraging because they demonstrate market resilience – which is what we are seeing at the coalface. Encouragingly, we have noticed a bit of a pick-up in activity over the past few weeks as buyers and sellers seem to be getting on with it as they usually do at this time of year.’[2]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/buy-to-let-property-purchase-activity-continues-to-be-weak

[2] http://www.propertyreporter.co.uk/property/house-purchases-fall-to-lowest-levels-since-2015.html

Purchase activity at lowest level since February 2015

Published On: March 14, 2017 at 11:34 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,home buyers,investment,property market

According to the most recent data released by CML, the number of loans advanced for house purchases in January slipped to its lowest monthly total since February 2015.

Remortgaging activity however continued to increase- rising by 54% by value and 46% by volume in December. In addition, home buyers borrowed £8.4bn in January, down 28% on December but unchanged year-on-year.

Buy-to-let increases

In terms of buy-to-let, there were increases, with values up by 11% and volume by 12% In comparison to 2016 however, both the number of loans and amount borrowed fell by 16%.

On a seasonally-adjusted scale, month-and-month changes in first-time buyer and home mover activity was marginal. First-time buyer lending increased 2% by value with the number of loans dropping by 2% in comparison to December.

Paul Smee, Director General of the CML, commented: ‘January gives the impression of a flattish market overall, albeit one with a resurgent remortgage sector. We expect a seasonal dip in activity in the winter months and this appears to be the case in January. However, the lull in moving activity appears stubbornly persistent and we have commissioned research on the reasons why the number of transactions seems in secular decline.’[1]

‘Buy-to-let house purchase activity continues to be weak, despite strong buy-to-let remortgage levels. This will likely remain so going forward as lenders tighten affordability criteria ahead of the PRA mandated stress tests and the introduction of tax changes in April,’ he continued.[1]

Purchase activity at lowest level since February 2015

Resilience

Jeremy Leaf, north London estate agent and former residential chairman of RICS, said: ‘While there is little change month-on-month, the figures are encouraging because they demonstrate market resilience – which is what we are seeing at the coalface. Encouragingly, we have noticed a bit of a pick-up in activity over the past few weeks as buyers and sellers seem to be getting on with it as they usually do at this time of year.’[1]

‘Listings are improving but property must still be very compelling in terms of price, location and presentation – or all three – in order to gain attention from increasingly discerning buyers,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/house-purchases-fall-to-lowest-levels-since-2015.html

Four in ten properties in London possess no outdoor space

Published On: March 14, 2017 at 10:20 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,garden,outdoor space,property market

Those looking to purchase in London will likely be disappointed if they want a property with a garden.

New research from online estate agents HouseSimple.com reveals that four in ten properties on the market do not have an outdoor space.

Gardens

Rather unsurprisingly, there are only a few gardens located in Zone 1 regions of London. Just a third of properties on the market in Tower Hamlets possess an outdoor space.

Buyers are much more likely to find properties with an outdoor space in the boroughs towards the outskirts of the city. In Bexley and Bromley for example, there are 85.4% and 84.2% of properties respectively with garden space.

The table below shows the best and worst London boroughs in terms of properties listed with and without a garden or outdoor space:

Borough	Total properties on the market	% of properties on the market with a garden
Tower Hamlets	2944	34.4%
City of Westminster	3441	38.4%
Hackney	1258	39.7%
Islington	1382	41.0%
Camden	2194	45.7%
Bexley	526	85.4%
Bromley	1448	84.2%
Havering	695	82.7%
Hillingdon	1353	81.1%
Redbridge	1021	79.6%

What about the rest of the UK?

Across the UK as a whole, 31.4% of properties on the market do not have access to a garden. Interestingly, three out of the five worst UK towns and cities for outside space are in the North West.

Analysis of the top 10 UK cities with the largest populations, Liverpool (59.6%), London (60.5%) and Manchester (62.8%) all rank lowest in terms of properties coming onto the market with gardens.

Bristol on the other hand possess 80% of properties listed with gardens or outdoor space.

The table below indicates the top 10 major UK cities in terms of population size and percentage of those that possess a garden or outdoor room:

Town/City	Region	Total properties on the market	% of properties on the market with a garden
Liverpool	North West	5686	59.6%
London	South East	54013	60.5%
Manchester	North West	2101	62.8%
Glasgow	Scotland	1730	68.5%
Bradford	West Yorkshire	1436	71.0%
Leeds	West Yorkshire	1774	75.0%
Birmingham	West Midlands	2965	76.7%
Sheffield	South Yorkshire	1415	77.5%
Edinburgh	Scotland	857	78.5%
Bristol	South West	1387	79.6%

Four in ten properties in London possess no outdoor space

Squeeze

Alex Gosling, CEO of online estate agents HouseSimple.com, said: ‘With the need to build more homes in the UK and space at a premium, we could well see fewer and fewer new build properties with private gardens. Even new build family homes rarely come with the expansive back gardens you might have seen 30 to 40 years ago.’[1]

‘In heavily populated areas, developments are squeezed in and the reality is that private gardens takes up valuable square footage. Hence, we are likely to see more modern block of flats to meet housing demand and the outside space will inevitably be sacrificed,’ he continued.[1]

Concluding, Gosling noted that: ‘The death knell hasn’t been sounded for the back garden. There are plenty of towns, such as Grimsby, Crawley and Southport, where the majority of properties have private outside space. And moving further away from major cities, you’re more likely to find houses not flats and the large back garden you’re craving.’[1]

[1] http://www.propertyreporter.co.uk/property/4-out-of-10-properties-on-the-market-in-london-have-no-outside-space.html

New mortgage rates announced at the Mansfield and Accord

Published On: March 13, 2017 at 4:08 pm

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,Buy-to-Let,landlords,mortgage rates

Mansfield Building Society has moved to increase its maximum loan size from £300,000 to £500,000 across its buy-to-let mortgage range. This is subject to the borrower having a maximum of 15 mortgages outstanding with alternative lenders.

The Mansfield will also permit buy-to-let investors to borrow up to £1m in total, up from 500,000, after changes to its lending criteria.

Exciting

Steve Walton, national development manager at Mansfield, observed: ‘We’re taking these measures to make our individual underwriting proposition more exciting and available to larger portfolio landlords on higher value housing stock.’[1]

‘Landlords need more choice, especially given the Government’s reduction in tax relief and the regulatory change to rental income calculations. We believe that these changes will be well received and we’re looking forward to being able to offer brokers and their clients a fresh alternative from a lender with a flexible and pragmatic approach,’ he added.[1]

New mortgage rates announced at the Mansfield and Accord

Re-mortgaging

Meanwhile, Accord Mortgages has launched two new fixed-rate mortgages with no up-front fees. These have been designed to help borrowers manage the original cost of remortgaging.

There is a 65% LTV two-year fix available at 1.66%, while borrowers with a 75% LTV mortgage can secure a five-year fix at 2.24%. Both of these products come with free standard valuation and free legal fees.

What’s more, Accord has cut the rate on its two-year base rate tracker at 65% LTV, by 0.05%, to 1.24%. This allows borrowers more flexibility in leaving their mortgage early without paying any redemption fees.

David Robinson, National Intermediary Sales Manager at Accord, said: ‘It is proving to be a popular time for borrowers to remortgage at the moment, especially those seeking lower loan-to-value deals.’[2]

‘We believe that our new remortgage options will prove popular amongst borrowers and the options across the different terms, plus the additional features, will help brokers to choose the best loan to suit their clients’ requirements,’ he added.[2]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/mansfield-bs-increases-max-loan-size-to-500-000

[2] http://www.propertyreporter.co.uk/finance/new-remortgage-products-lanuch-at-accord.html