Posts with tag: Buy-to-Let

New buy-to-let products announced at Landbay

Published On: January 5, 2017 at 10:49 am

Tags: Buy-to-Let,buy-to-let lenders,buy-to-let mortgage,Landbay

Landbay, the peer-to-peer mortgage lender, has today announced a new range of products specifically aimed at professional buy-to-let landlords.

New products on offer include standard term trackers, beginning at 3.88%. In addition, there are now HMO trackers from 3.98% and Expat trackers from 4.38%.

Products

What’s more, there are now fixed rate products available at 4.2%, including a five-year fix deal from 4.4%-including interest coverage ratio (ICR) based on pay rate.

In addition, Landbay has moved to increase the maximum LTV to 80% on certain products.

All new products offered by the lender use pay rate to assess ICT calculations, but Landbay runs an underlying affordability calculator to make sure the application can meet a minimum ICR of 125% at 5.5%.

New buy-to-let products announced at Landbay

Complex

Paul Clampin, Chief Lending Officer of Landbay, observed: ‘The buy to let market is set to become more complex in 2017, as landlords face an increasingly intricate lending landscape and tighter regulation. It’s in such a context that borrowers and brokers need solutions that meet their changing needs, so these new products have been designed to do just that for the growing number of professional landlords.’[1]

‘As landlords move to navigate this complex environment, so too must lenders ensure that affordability calculations are robust and in line with the rest of the industry. This is why we have chosen to refine our ICR calculations,’ Clampin added.[1]

[1] http://www.propertyreporter.co.uk/landlords/professional-btl-range-launches-at-landbay.html

Can a letting agent save you £2,000 per year?

Published On: January 5, 2017 at 9:56 am

Author: Em Morley

Categories: Landlord News

Tags: buy to let investors,Buy-to-Let,landlords,letting agents

Interesting new research has revealed nearly half of private sector landlords use a letting agent as it gives them peace of mind. What’s more, around a quarter communicate with them on a weekly basis.

Data from the investigation conducted by Endsleigh also discovered that agents can assist landlords in saving up to £2,000 a year by keeping their void periods down.

Peace of mind

41% of people questioned said they feel the main benefit of an agent is the peace of mind they provide.

On the other hand, investors who felt that they could save money by not using a letting agent observed the average amount they weren’t spending on fees totalled £159 per month.

However, analysis of rental income and void periods for landlords with and without letting agents suggests that agents saved clients an average of £1,910 per year.

More than two-thirds (76%) of respondents said that their letting agents were pro-active in helping that find tenants and helping with legal and financial matters.

Can a letting agent save you £2,000 per year?

Relationship

In addition, the survey indicates that the relationship between letting agents and landlords are not solely for financial benefits.

Of those landlords using an agent, 50% did so due to their local knowledge while almost 40% were attracted to their overall service.

Will Parker, associate director and chartered surveyor at H&H Land, says the figure that agents can save is extremely high.

Parker noted: ‘In the past there have been widespread misconceptions amongst landlords about the value for money offered by letting agents. The survey suggests that in these cases letting agents can in fact save their clients an average of almost £2000, which is certainly a very significant saving and one worth considering.’[1]

[1] http://www.propertywire.com/news/europe/good-letting-agents-can-save-landlord-almost-2000-month/

Are councils holding up house building supply?

Published On: January 4, 2017 at 12:20 pm

Author: Em Morley

Categories: Property News

Tags: building,Buy-to-Let,Homes,housing,housing permissions

The volume of new properties being built in England is rising, but builders have expressed concerns that they are being held up by planning conditions. This issue is more prominent on smaller development sites.

Data from the latest housing pipeline report from the Home Builders Federation and Glenigan reveals that permissions for 76,242 homes were given approval during Q3 of 2016.

In addition, the figures show that the total number of homes built to September of last year hit 289,011. With this said, the number of actual sites these permissions are on dropped.

Mix

Reports indicate that local authorities are giving permissions for an increasing number of large strategic sites. This is opposed to a mix of both size of type required to actually deliver more properties.

This is encouraging, but there are concerns that these permissions have lots of ‘pre commencement’ conditions attributed to them. As such, builders are not legally entitled to start construction until they are met-a process that can take months.

The Home Builders Federation has welcomed the Government’s Neighbourhood Planning Bill, aimed at introducing a new process for agreeing pre commencement conditions. In addition, it has encouraged ministers to push further in limiting the number of conditions to help builders develop sites more quickly.

Are councils holding up house building supply?

Proposals

Moving forwards, the Federation has proposed that a range of site sizes and types should be allocated by local authorities. It believes that councils shouldn’t rely on one large site to meet their local housing requirements as it inevitable they will take longer.

In addition, the report notes that speeding up the time taken for builders to get onto sites and ensuring local authorities abide by the rules are key if more housing is to be delivered.

Stewart Baseley, chairman of the Home Builders Federation, said: ‘The house building industry is committed to building more homes but can only do so if it has the land on which to build them. It is encouraging that so many headline planning permissions are being granted but we simply have to find a way to unblock the system and reduce the time it takes to get a permission to the stage where builders can actually start building.’[1]

‘Construction work shouldn’t be held up by council officers getting round to approving designs for landscaping, playgrounds or ensuring developers are liaising with community artists. These could be agreed whilst infrastructure work gets started. Our housing crisis is too serious a threat to our future for everyone not to be pulling in the same direction. House builders are keen to increase output further but all parties need to work together if we are going to solve our housing shortage,’ Baseley added.[1]

[1] http://www.propertywire.com/news/europe/councils-england-holding-new-homes-built-says-hard-hitting-report/

RLA calls for better tenant protection

Published On: January 4, 2017 at 9:47 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,buy-to-let landlords,rogue landlords,tenants

A new call from the Residential Landlords Association (RLA) has urged councils to do more to protect private tenants from rogue landlords providing them with sub-standard accommodation.

This call comes after a Citizens Advice report yesterday that revealed that whilst the majority of buy-to-let investors respond to issues quickly, some are taking too long to rectify problems.

Rooting out rogues

There are currently over 140 Acts of Parliament, with more than 400 regulations, affecting the private rental sector. As such, the RLA is urging councils to utilise these extensive powers to identify and remove rogues.

Last year, a RLA Freedom of Information request saw responses from 237 councils in England and Wales. 126 said they had brought no prosecutions against landlords between 2011 and 2014.

RLA calls for better tenant protection

Alan Ward, Chairman of the RLA, noted: ‘Every tenant has the right to expect a safe, legal and secure home. Whilst the majority of landlords provide a good service to their tenants, there are a minority who do not and who have no place in a modern rental sector.’[1]

‘Councils have the powers to do something about them. What is needed is a greater will to use these powers to root out the criminal landlords once and for all,’ Mr Ward added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/tenants-need-better-protection-says-trade-body-for-landlords

Virgin Money announces new buy-to-let rates

Published On: January 3, 2017 at 2:28 pm

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,Buy-to-Let,buy-to-let landlords,Virgin Money

Virgin Money has moved to announce the launch of new mortgage products across both its residential and buy-to-let ranges.

As of today, the lender has confirmed that new residential rates will include a new two-year fix at 2.84% up to 90% LTV for initial buyers.

Changes

In addition, Virgin’s two-year flexible tracker is now at 1.69%, up to 65% LTV with a £995 fee, free valuation and legal fees for remortgages.

Fixed rates up to 65% LTV for five-year residential plans are available from 1.89%, with a £995 fee and £300 cashback for purchases. There are no valuation or legal fees for remortgage.

In terms of buy-to-let, new products include a two-year fixed rate deal at 60% LTV reduced to 1.59%, with a product fee of £1,995 and £500 cashback.

Virgin Money announces new buy-to-let rates

Peter Rogerson, Commercial Director for Mortgages at Virgin Money, noted: ‘To kick off the year we have launched a new range of red hot mortgage products that offer competitive rates to help homebuyers get onto the property ladder, support those looking to move home and a great deal for landlords.’[1]

[1] http://www.propertyreporter.co.uk/finance/new-btl-rates-announced-at-virgin.html

80% of ARLA agents foresee rent rises in 2017

Published On: December 20, 2016 at 11:07 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,letting agent fees,tax,tenants

UK rents are expected to increase during 2017, as a combination of a lack of housing supply and the raft of tax changes impacting on buy-to-let landlords.

The eventual phasing out of mortgage tax relief, alongside the introduction of more stringent buy-to-let mortgage lending conditions will also serve to push landlords away from the market.

A new poll from the Association of Residential Letting Agents (ARLA) has highlighted the possible adverse impact a ban on letting agent fees could have.

Rental Rises

After the Chancellor announced a ban on letting agent fees in this year’s Autumn Statement, 80% of ARLA agents believe that rents will rise in 2017. This is due to the assumption that the outright ban on letting agent fees to tenants will see these costs moved to landlords.

David Cox, managing director of ARLA, said: ‘The number of rent hikes reported by letting agents continued to decrease in November and it’s a shame the ban on letting agent fees will have the opposite impact on rent prices when the measure comes into force.’[1]

‘The buy-to-let market is becoming less attractive for investors as the ban on fees, combined with the scrapping of mortgage interest relief and the stamp duty increase on second homes push costs up for landlords. So unfortunately, regardless of the uplift we saw in supply this month, we expect to see the number of properties available to rent fall next year,’ he continued.[1]

Fall in Letting Agents?

A number of buy-to-let landlords do not currently use letting agents to either find or manage properties and it has been mooted that many more should consider going solo moving forwards.

Gillian Kent, chairman at No Agent, said: ‘We’re firm believers that as landlords’ purse strings are tightened by tax changes and the expected increases from traditional letting agents that landlords will look for alternatives.’(1)

Simon Lambert, editor of This is Money, wrote on the website: ‘Landlords are always ripe for a kicking in some circles, so it should come as no surprise that they were swiftly painted as potential future villains in the ban on tenant fees.’[1]

80% of ARLA agents foresee rent rises in 2017

Anger

Lambert also believes that buy-to-let investors are right to be as angry as tenants over fees charged by agents.

He observes: ‘Many (landlords) pay handsomely for letting and management already and the fees they pay are meant to cover many of the things that some unscrupulous letting agents also charge tenants for.’[1]

‘A check with their agent on the level of double-charging going on would leave a landlord as grumpy as their tenant,’ he added.[1]

Concluding, Mr Lambert observed that landlords no not profit from existing tenant fees. As a result, while agents will be wanting to keep their revenues, an attempt to get back lost earnings by putting extra costs onto landlords represents a, ‘high-risk strategy.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/12/vast-majority-of-letting-agents-expect-rents-to-rise-in-2017