Posts with tag: Buy-to-Let

Homebuyers’ confidence returns to pre-Brexit levels

Published On: October 27, 2016 at 10:22 am

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The latest report from the National Association of Estate Agents shows that during September, demand for housing increased by 16%. These figures show that confidence is unwavering following the Brexit vote.

Increases

Data from the report reveals that during the last month, the average number of house seekers registered per member branch rose from 287 to 333.

This represented an increase of 16%, taking the number of would-be house buyers make up to levels seen in June.

There was a slight decrease in houses available to buy during September, from 41 to 40 properties registered per member branch. However, August’s levels were the greatest seen since March.

In addition, the number of sales agreed increased by 12.5% in September to an average of nine per branch.

Homebuyers' confidence returns to pre-Brexit levels

Homebuyers’ confidence returns to pre-Brexit levels

Growing confidence

Mark Hayward, Managing Director at the National Association of Estate Agents, commented: ‘This month’s report proves that buyer confidence is growing, which is obviously reassuring, given that we expected uncertainty following Brexit. Although supply has dropped marginally, this does not concern us as it’s still higher than the levels we saw between April and July. However, it is worrying that the number of sales being made to first time buyers has fallen to the lowest number in 10 months.’[1]

‘The fact the Government’s Help to Buy housing scheme is due to close this year might pose more of a challenge for those who were relying on this to help get their foot on the property ladder. We now look ahead to the Autumn Statement and look forward to seeing what plans the Government puts in place to assist first time buyers towards their goal of homeownership,’ Mr Hayward continued.[1]

[1] http://www.propertyreporter.co.uk/property/homebuyer-confidence-hits-pre-brexit-levels.html

 

One in five Britons have fallen out with neighbours

Published On: October 26, 2016 at 11:17 am

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An interesting new report has revealed that around one in five property owners has been involved in a dispute with their neighbours.

A portrait of the modern British community report from Co-op insurance gives an insight into most-common disputes and changing communities in the UK.

Nuisance Neighbours

Of people who have had problems with their neighbours, noise was the most common reason. 41% of residential problems were due to noise related issues, such as loud arguments, parties or banging around.

22% of respondents suffered rude or abusive neighbours, with 21% experiencing issues with barking dogs. 19% had issues surrounding parking.

By region, London and Birmingham saw the largest number of neighbour problems. 25% of those questioned in these regions said they had seen some kind of problem in the last year. On the other hand, people in Milton Keynes get along the most, with just 7% experiencing neighbour disputes in the same period-compared to the national average of 20%.

The top-ten reasons for disputes with neighbours were found to be:

1 Excessive noise 41%
2 Rudeness or abuse 22%
3 Barking dogs 21%
4 Parking wars 19%
5 Nosey neighbours 18%
6 Unruly kids 15%
7 = Boundary disputes 12%
7 = Gossipy neighbours 12%
8 Messy gardens which blight the community 11%
9 Roaming pets 7%
10 Not keeping shared facilities maintained 6%

[1]

One in five Britons have fallen out with neighbours

One in five Britons have fallen out with neighbours

Good neighbours

Data from the report shows that a Briton’s ideal neighbour would show respect at all times, with 77% agreeing this makes a good person to live next door. 75% said tolerance was the most important trait.

Half of under 35’s have never been in their neighbours’ property, but 77% of over 55’s have.

However, just 19% of people have been invited round to a neighbouring property for a brew!

James Hilton, Director of Products at the Co-Op Insurance, observed: ‘The research shows as a nation we’re at risk of losing the community spirit we once prided ourselves on. Strengthening our communities whilst making them safer places to live is firmly at the heart of the Co-op. Communities are valuable as they allow people to interact with each other, share experiences and develop valued relationships. Without communities we’re in danger of living isolated lives.’[1]

‘However, as our lives, both in and away from the home, become ever busier and we spend more time engaged with technology – TV, the internet and social media, its seems we are becoming ever-more distant from our closest neighbours.  As a nation we need come together, lose the British stiff upper lip and engage with our neighbours, who in time may become friends,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/1-in-5-brits-have-been-involved-in-a-dispute-with-neighbours.html

Property industry reacts to third Heathrow runway announcement

Published On: October 26, 2016 at 9:53 am

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Yesterday saw the Government give its approval to a third runway to be built at Heathrow airport.

Transport Secretary Chris Grayling hailed the decision as, ‘truly momentous,’ believing that trade and employment will soar massively as a result.

However, the controversial ruling has split the Cabinet. Foreign Secretary Boris Johnson has labelled the move as ‘undeliverable.’ Education Secretary Justine Greening, with a constituency in South West London, has also been critical of the move.

But just what will the proposed changes mean for the housing market in the region?

Market take-off?

Online estate agent eMoov.co.uk said that the extra runway might create London’s first affordable housing pocket-but not in a good way.

783 properties will have to be demolished, affecting numerous housing markets across South West and some parts of prime central London.

During the past decade, prices in Hillingdon, where Heathrow is based, have increased by 77%. However, eMoov CEO Russell Quirk feels the decision could lead to a drop of at least 20% for some property prices in the capital.

Of course, those properties in the surrounding regions will be worst affected, but Mr Quirk also foresees issues for homeowners in Richmond, Westminster and Hammersmith and Fulham.

Bad news

Quirk observed that the move is, ‘Great news for the UK economy and indeed those that frequently fly out of London for both business and pleasure. This decision has been long overdue and it’s a welcome conclusion and probably the best result for London as a whole.’[1]

On the other hand, he feels the news is, ‘Not such great news for the hundreds of residents that will see their properties demolished as a result of the expansion of a third runway.’ In addition, Quirk sees the news as, ‘Even worse for homeowners in Hounslow, Kew, Windsor, Maidenhead and other surrounding areas who are likely to see the value of their property blighted, as a result of a lengthy construction process and ongoing noise and air pollution.’[1]

Continuing, Mr Quirk noted: ‘No one in their right mind could find a property desirable if that property sees jumbo jets hurtling past at all hours of the day and night, rattling secondary double glazing and leaving the faint aroma of jet fuel lingering in the air.’[2]

‘Although the expansion will mean great things for London and the economy, it could see house prices in those areas worst affected by the noise and air pollution plummet by as much as 20% as a result. We aren’t talking a month or two of minor road works, this is a seriously large project with ongoing, permanent implications for those impacted by it. A fall in value of 20% is a very realistic expectation given the negative impact noise and air pollution can have to a property’s desirability and we could see the average house price in the likes of Hounslow and Hillingdon sink to around £330,000,’ he concluded.[2]

Property industry reacts to third Heathrow runway announcement

Property industry reacts to third Heathrow runway announcement

Impact

Mark Hayward, Managing Director, National Association of Estate Agents, observed: ‘Today’s decision by the Government is likely to have a negative impact on house prices in the immediate vicinity of Heathrow. However, alongside today’s announcement, the Government has also released details of a fresh consultation, while the threat of judicial review still remains high. This means homeowners that will be impacted by the extra runway should not rush into making knee-jerk decisions, as they have time to assess their options.’[3]

‘In addition, the Government has confirmed that homeowners facing compulsory purchase will receive 125% of full market value for their properties, plus stamp duty, legal fees and moving costs. While a person’s home is much more than bricks and mortar, it is vital that the Government honours this commitment to ensure that those impacted are offered some financial security for the years ahead,’ he added.[3]

[1] eMoov press release: Heathrow Expansion Could Blight Property Prices, 25.10.16

[2] http://www.propertyreporter.co.uk/property/third-runway-could-lead-to-a-20-dr0p-in-house-prices.html

[3] NAEA press release: ‘National Association of Estate Agents comments on Heathrow expansion’ 26.10.16

Why Property Has Been the Best Investment of the Last Ten Years

Published On: October 25, 2016 at 8:59 am

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Property has been named the best investment in the UK over the last ten years, delivering a significantly higher return than alternative options, such as the stock market and savings accounts.

A new study by estate agents Leaders and Romans compared the return an investor would have received in each of the four markets, had they invested an initial £50,000 in 2006.

Why Property Has Been the Best Investment of the Last Ten Years

Why Property Has Been the Best Investment of the Last Ten Years

The research revealed that the buy-to-let market has generated a 175% return over the past decade, equating to a profit of £138,936. In comparison, gold has delivered a profit of £50,673, interest on savings accounts is worth £14,447, and a £50,000 investment in the FTSE 100 has yielded just £2,969 over the same period.

The Letting Managing Director at Romans, Michael Cook, says: “Buy-to-let performs significantly better than other investments in terms of an overall return. Our research shows a buy-to-let investor in 2006 would be almost £90,000 better off today than somebody who invested in gold, and more than £135,000 up on somebody who bought stocks and shares.

“Although property investment can be more time-consuming and hands-on, with such incredible results at the end, it’s certainly worth it.”

Although gold, stocks and shares, and savings offer greater liquidity than property, which can take several weeks to buy or sell, this isn’t deterring astute investors, who value the dual benefits of a monthly rental income and capital appreciation over time.

Allison Thompson, the Managing Director at Leaders, explains why she thinks property is the best investment: “Despite many changes over the last ten years to the housing market and wider economy, buy-to-let is still the clear winner. As well as the most rewarding, it is also the safest of all the investment options over the long-term. We have seen historically that, although cyclical, house prices always rise in the long run. With the acute shortage of housing across the UK, this is only likely to continue.

“Cautious investors can minimise their risks in a number of ways, including utilising rent guarantee schemes to effectively insure their income – an option not available with other investments. This, along with the substantial returns to be made, make property more attractive than all other types of investment.”

If you are thinking of investing in or further into the property marker, you must be aware of the difference between Rent Guarantee Insurance and guaranteed rent schemes: https://www.justlandlords.co.uk/news/rent-guarantee-insurance-guaranteed-rent-schemes/

Do you believe that property is the best investment of the last ten years?

New rental listings slide in September

Published On: October 19, 2016 at 9:56 am

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A concerning new report from crowdfunding platform Property Partner has revealed that around four in ten large UK towns and cities in Britain saw a fall in buy-to-let listings in September.

The investigation looked at rental listings in 89 locations, analysing the number of properties listed between 1st-28th September, then compared to figures recorded in August.

Falls

Research from the platform showed that 36 towns and cities saw a decrease in rental supply during September. Of these, 29 also saw a fall during August.

Grimsby saw the largest drop in new rental listings in the last month, seeing a decline of 26%. Oxford (-24.4%), Canterbury (-23.9%) and Brighton (-18.7%) also saw significant falls. This said, no region was unaffected by a shortage of supply.

London saw new rental listings rise by 1.43% in the last month, showing a significant rise from August, when supply fell by 16.4%. Other large British cities, Manchester and Birmingham, saw new listings slide by 13.04% and 13.69% respectively.

Worrying

Dan Gandesha, CEO of Property Partner, observed: ‘You’d expect a seasonal drop off in the number of new buy-to-let properties coming onto the market during August but September has also proved worryingly slow. We’ll have to wait until next month to determine whether this is just a short-term problem or something to be increasingly concerned about.’[1]

‘The new stamp duty hike in April for buy-to-let and second homes saw a rush by landlords to beat the deadline with a subsequent rise in stock levels. But now that the dust has settled, we’re seeing some significant declines in new listings, particularly surprising after the Summer. Earlier this month, the Royal Institution of Chartered Surveyors (RICS) warned of a critical rental shortage. Traditional landlords have been given a proverbial cold bath with recent tax change announcements. The hike in the stamp duty surcharge in April has certainly discouraged landlords from increasing their rental portfolios,’ he continued.[1]

New rental listings slide in September

New rental listings slide in September

Hassle

Mr Gandesha wonders if many landlords will continue in their role past next year. He notes: ‘Alongside tougher lending criteria and cuts to mortgage interest tax relief starting next year, many landlords will be now doubting if it’s worth the hassle, particularly in the South East. Profits have been hit hard and those landlords that decide to stick with it, may just be forced to push up rents – not a promising prospect for tenants.’[1]

‘Like RICs, we believe Britain should be building more homes across all tenure types. Over the past decade, more and more people have moved away from home ownership and become long-term renters. It’s time for the new government to make build-to-rent a key priority, encouraging the private sector to build properties for residential letting with incentives for institutional and ‘professional’ landlords,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/september-sees-further-rental-supply-problems.html

Buy-to-let mortgage sales up by 19% in September

Published On: October 19, 2016 at 8:54 am

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Categories: Finance News

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The mortgage market experienced significant growth during September, with total sales rising by 8.4% to £1.2bn.

In addition, buy-to-let mortgage figures also rose by 19% to reach £2.9bn. Residential sales also increased by 6.2% to £12.2bn.

Regional mix

By region, performance was varied over the course of the last month. The North West and London came top of the table for buy-to-let mortgage growth, with rises in sales of 12.7% and 11.7% respectively.

On the other end of the scale, Scotland and Northern Ireland saw the worst monthly growth, of just 1.9% and 0.7% respectively.

Buy-to-let mortgage sales up by 19% in September

Buy-to-let mortgage sales up by 19% in September

 

Mr Iain Hill, Relationship Manager, at Equifax Touchstone, noted: ‘With unseasonal gains in August and encouraging figures for September, the market is showing positive signs for a strong end to the year. These healthy figures are very welcome, particularly in buy-to-let, where we have seen a number of new market entrants in the last year or so.’[1]

‘Although we still have a way to go to get back to the levels of business seen in 2015, the signs are promising. We are watching with great anticipation to see what this year’s unpredictable market will reveal next month,’ he added.[1]

[1] http://www.propertyreporter.co.uk/finance/buy-to-let-sales-surge-19-in-september.html