Posts with tag: Buy-to-Let

More UK properties selling for over their asking price

Published On: March 1, 2017 at 2:24 pm

Tags: asking prices of property,Buy-to-Let,investment,property

The latest report from the National Association of Estate Agents (NAEA) has revealed that there are now on average 11 buyers chasing each property for sale.

As a result, a number of properties are selling for over the original asking price.

Demand

Figures from the report suggest that there were 425 potential buyers registered per branch during January in comparison to the previous month. Housing stock is also fairly low in comparison.

The volume of properties ready to purchase on estate agents’ books during January stood at 38. This is a slight decrease from December when there were 41 available.

However, the NAEA sold that 76% of properties actually sold in January fetched more than the asking price. The South-West saw the greatest number of properties selling for more than the initial asking price.

Hampshire, Shropshire and the Midlands are the regions with the most house hunters in comparison to number of properties.

More UK properties selling for over their asking price

Competition

Mark Hayward, Chief Executive of the recently rebranded NAEA Propertymark, observed: ‘January saw a surge in buyers looking to kick off the New Year with a new home-but competition is rife with an average of 11 buyers chasing each property.’[1]

‘The increase in the number of properties selling for more than asking price in January could be a result of heightened interest and the fact there is simply not enough housing to meet demand. When the government issued their housing white paper at the start of February we stated how important it was for the industry to put forward robust solutions to really make a difference and it’s vital that building more affordable housing is at the very top of their agenda,’ he added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/2/more-homes-selling-for-over-asking-price-amid-lack-of-stock

Where are UK renters most satisfied?

Published On: March 1, 2017 at 9:59 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,students,tenants

A new survey has revealed whereabouts in the UK renters are most and least satisfied.

According to data from the report carried out by Intus Lettings, the North East of England is the best region for tenants. Here, 52% of the 2,000 tenants questioned said that they were happy with their landlord.

Capital Pains

On the other hand, Londoners were found to be least satisfied, with only 20% saying that they were satisfied.

The main tenant irritations were found to be the level of customer service given by landlords, time taken to respond to maintenance issues, availability, inspections and fees.

Some specific issues highlighted included a ‘lack of communication and ‘lack of competence’ when dealing with repairs.

Hope McKendrick, letting manager at Intus Lettings, said: ‘We’re always hearing about the best and happiest places to live in Britain in terms of wellbeing, job satisfaction and availability of good schools, but there’s little research about how happy our renters are and which are getting the best service from UK landlords.’[1]

Where are UK renters most satisfied?

‘The survey results give us a different perspective on where is the best and it appears that our Geordie neighbours are winning in this case!’ she continued.[1]

Concluding, McKendrick noted: ‘High fees and costs will clearly contribute to the dissatisfaction of renters in the capital. However, as the property market in London becomes more and more demanding and saturated, landlords may be overstretched and even less able to respond to tenant needs as well as other regions, adding to their frustrations.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/every-landlord-wants-a-happy-tenant-as-it-makes-it-more-likely-that-they-will-live-in-the-property-longer-pay-their-rent-on-time-and-keep-the-property-in-good-condition–but-where-in-the-country-are-the-most-satisfied-tenants-found-according-to

More calls for brokers to advise clients on BTL tax changes

Published On: February 28, 2017 at 10:44 am

Author: Em Morley

Categories: Finance News

Tags: brokers,Buy-to-Let,landlords,mortgage interest tax relief,tax changes

First Complete and Pink are calling on brokers to make sure that any landlords that they have on their books are talking with a qualified accountant, to ensure they are up to speed with the implications of upcoming tax changes.

From April 2017, the Government will start to phase out the higher rate of tax relief over a period of four years. This means that buy-to-let investors will no longer be able to claim 45% tax relief on their monthly interest payments. Instead, they will only be able to have the basic rate of 20%.

Add to this harsher underwriting standards for landlords and it looks like another tough few months for the buy-to-let market.

Workshops

First Complete and Pink recently hosted seven buy-to-let workshops, which gave brokers the chance to speak with experts on how the changes will impact on them and their clients.

Brokers were given an overview of the new tax regime and talked about HMOs and limited companies.

More calls for brokers to advise clients on BTL tax changes

Toni Smith, sales operations director for First Complete and Pink, noted: ‘The specialist buy-to-let workshops are one of many events that First Complete and Pink runs to support its advisors. Events like these demonstrate our commitment to continually offering a market leading network proposition to brokers in an evolving marketplace.’[1]

‘Brokers have a vital role to play in flagging the impact of the tax changes to clients, and to point them in the right direction of a qualified accountant. It is equally important that brokers avoid giving further detailed commentary or debate around the topic of tax treatment of BTL portfolios – as this could be constructed as advice and relied on by the client,’ he added.[1]

Concluding, he said: ‘There are challenging times ahead for landlords and they will need all the help and support they can get. Mortgage brokers – as ever – will be a key point of contact as new complexities continue to emerge for landlords.’[1]

[1] http://www.propertyreporter.co.uk/landlords/calls-for-brokers-to-upd4te-landlords-and-clients-on-btl-changes.html

MP slams new scheme aimed at helping slum landlords

Published On: February 28, 2017 at 9:47 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,housing repairs,landlords,Peterborough,slum landlords

A new scheme designed to assist landlords with housing repairs in Peterborough has been slammed by a local MP.

Writing in his Westminster Life column in the Peterborough Telegraph, Stewart Jackson MP took aim at Peterborough City Council’s initiative to deal with so-called slum landlords. The scheme plans to assist these landlords with housing repairs using £1.2m of public money from the capital budget.

Scathing

In his article, Jackson wrote:

‘Yes – these are landlords currently collecting rents for tenants already living in their substandard or dangerous properties – but who apparently cannot afford to repair and maintain their own properties properly or meet the appropriate regulatory and licensing arrangements.’

‘Apparently, we’re meant to be sympathetic to these folk who take issue with a basic requirement not to allow a property to be “seriously overcrowded!?!” 900 of them lacked gas safety certificates and worse. That’s YOUR money which could build new homes or give local working families a lift up by paying their deposit on a new house via rent or mortgage.’

‘Scrub that. I do know what I think. It stinks.’[1]

Disgrace

Mr Jackson said he thought it was a disgrace that landlords expect the taxpayer to foot the bill for these improvements.

Continuing, he noted:

‘Am I missing something? I think the technical term is more hazard. What message does it send to good and ethical landlords in our city who presumably have to pay for the upkeep of their own properties which after all are their own capital assets? Isn’t it completely undermining the whole point of the licensing scheme, if we choose to reward slum landlords (at average £3,500 a pop) and allow them to stay and continue to ply their dubious trade in the lettings market?’[1]

MP slams new scheme aimed at helping slum landlords

‘Peterborough City Council thinks what we need is a lot of carrot but where’s the stick eh? Aren’t we embarrassed that our city has recently featured on Channel 5’s “Britain’s Rogue Landlords”? Why aren’t these people in court? Why are they not named and shamed? Why are their tenants more deserving than the hundreds on the housing waiting list to whom the money could be better directed.’[1]

Wrong Turn

Concluding, Mr Jackson called for a reconsideration:

‘We need to know why paying out this cash will allegedly drive up health outcomes more than say allowing young couples to buy these houses and convert them at their own expense, thus improving the residential neighbourhoods?’

‘Are the applicants for this programme (dodgy landlords) self-selecting and what methodology has been used to assess their merits? How will the legal agreements and loan arrangements be prepared and at what cost? What pressure has been exerted on council officers? Why hasn’t this policy been properly debated by the City Council Cabinet?

‘I fear that the council has taken a wrong turn and is failing to deal with the fundamentals.’

‘They are either committed to cleaning up slum tenancies and protecting tenants and improving neighbourhoods or they’re not.’

‘They need to reconsider this policy before it goes any further.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/mp-slams-subsidy-for-slum-landlords

Number of retiree tenants is rising

Published On: February 27, 2017 at 12:41 pm

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,private rental sector,renting pensioners,retiree renters

There has been a sharp rise in the number of people renting property during retiree age, according to the latest report from Girlings Retirement Rentals.

The firm has attributed this rise to alterations in attitude and perceptions to do with renting in the last decade. In addition, it points to the many benefits that renting in later life can bring.

Retiree Renters

Presently, households aged 65-plus account for roughly 10% of those living in the private rented sector. Girlings said that this figure is rapidly growing

There has been a steady growth in enquiries since the year 2002, with 2015 and 2016 seeing the highest levels of enquiries. 2017’s figures are set to improve further.

This trend is being backed up by the National Landlords Association which found that the number of retired people in Britain moving into the private rental sector has risen by 200,000 since 2012.

A separate study by LSL Corporate Client Department Ltd shows that nearly one in five people aged over 55 are now renting.

Number of retiree tenants is rising

Lifestyle Choice

Peter Girling, Chairman of Girlings Retirement Rentals, said: ‘For many people in their 60s, 70s and 80s renting is a lifestyle choice, as well as a financial one. Many don’t want the financial burden of home ownership or worries about property and garden maintenance. By selling their home and releasing capital to supplement their retirement they can enjoy themselves, gift an amount to their children or invest it.’[1]

‘As people get older they can also find their current property is too big for them, or they feel isolated if they are left living alone. Renting can be a good solution for downsizing to a more manageable home, giving people access to services, should they need them as they get older and a social life that comes with living in a retirement community,’ he added.[1]

Concluding, Mr Girling said: ‘Renting gives older people the chance to move somewhere they have always wanted to live, such as by the sea or closer to relatives. Coastal locations are the most popular places to rent for many people, with Bournemouth the number one requested place last year. Renting allows people the flexibility to try a new location before deciding if it’s right for them.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/sharp-rise-in-number-of-older-tenants

Where are the most and least affordable locations in the UK?

Published On: February 27, 2017 at 9:52 am

Author: Em Morley

Categories: Property News

Tags: average earnings,Buy-to-Let,housing market,landlords,UK house prices

A new report from Lloyds Bank has indicated that the ratio between average city house prices and typical earnings is at its poorest level since 2008.

The data shows that during the past five years, the average UK city house price has increased by 32%, from £169,966 in 2012 to the greatest ever value of £224,926 this year.

In comparison, average yearly city earnings have increased by just 7% to £32,796 over the same period. As a result, average affordability in the cities of the UK has worsened.

Ratios

House prices have risen as a multiple of average annual earnings from 5.5 in 2012, to 6.9 in 2017. This is the worse level since 2008, where the ratio of house prices to earnings stood at 7.2.

The UK’s least affordable city was Oxford, where the average house price is £358,372, nearly 11 times the level of annual average earnings in the city.

In all, there are five cities with typical house prices over ten times the average annual earnings. Alongside Oxford, these are Greater London (10.5), Winchester, (10.5), Cambridge )10.3) and Chichester (10.0). However, the average figure for London disguises variations in the capital, with boroughs much less affordable in the centre as opposed to the Greater London average.

What’s more, there is a prominent North/South divide. Only Lichfield (8.3), York (7.6) and Leicester (7.6) were cities outside of the South to make the top 20 least affordable locations.

Where are the most and least affordable locations in the UK?

Most Affordable

On the other hand, Stirling in Scotland was found to be the most affordable studio. Here, the average property price is 3.7 times average gross annual earnings. Londonderry in Northern Ireland came in second.

Two other Northern Irish cities, Belfast (4.6) and Lisburn (4.8) are placed in fourth and sixth respectively.

Andy Mason, Lloyds Bank Mortgage Products Director, said: ‘City living is becoming increasingly expensive with average house price at least ten times average annual earnings in five of the UK’s cities. Affordability levels have worsened for four consecutive years as average city house prices continue to rise more steeply than average wage growth.’[1]

‘House prices in the south have generally seen stronger growth than in the north. St Albans has recorded the biggest gains over the past decade, whilst London has been the top performer during the recovery,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/uks-least-affordable-city-revealed-in-new-report.html