Posts with tag: Buy-to-Let

Housing market beginning to settle after Brexit vote

Published On: September 12, 2016 at 10:09 am

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Categories: Property News

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The UK housing market has begun to level out, following the surprise of the Brexit vote, according to a new survey.

Surveyors are now expecting sales and prices to rise in the upcoming months, data from the Royal Institution of Chartered Surveyors (RICS) suggests.

Stable

Sales of property in the follow-up to the decision to the leave the EU fell sharply but has stabilised. RICS’s members predict that house prices in the UK will rise by an average of 3.3% over the next five years.

RICS thinks that a shortage of homes on the market was holding up property prices. Simon Rubinsohn, chief economist at RICS, believes, ‘there are clear signs that the housing market is settling down after the initial surprise of the outcome to the EU referendum.’[1]

‘Buyer enquiries did dip again in August but only modestly and more significantly, sales expectations are beginning to edge upwards once again. It is likely the swift response from the Bank of England has played a role in helping to support confidence,’ he continued.[1]

Housing market beginning to settle after Brexit vote

Housing market beginning to settle after Brexit vote

Rise and falls

Data from the report reveals that sales stabilised in August, but fell in some parts of the country, most prominently in London and the West Midlands.

The report from RICS measures housing sentiment and is one of the few that estimates future movements in the market. Results reveal that a higher proportion of surveyors expect sales to increase during the next three months. More believe sales will increase than those who expect them to fall.

An estimated rise of 3.3% annually is different from RICS’ prediction at the start of the year, when the firm estimated prices would rise by an average of 4% per year for the next five years.

Brian Murphy of the Mortgage Advice Bureau noted, ‘whilst the survey is based on sentiment rather than hard data, this provides us with a good temperature check in terms of what surveyors up and down the country are observing.’[1]

‘This is in line with other data released from lenders such as the Halifax which supports the same point of view that after a deep intake of breath in June and allowing for the traditionally quieter summer hiatus, the overall market picture for most of the UK is stable, with the continued lack of supply being the underlying factor which is likely to underpin the market in the months to come,’ he concluded.[1]

[1] http://www.bbc.co.uk/news/business-37297910

Learn from the Experts at a One-Day Landlord Course

Published On: September 12, 2016 at 9:28 am

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Categories: Landlord News

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All landlords want to know how they can maximise their earnings while managing their properties efficiently. Now, two leading industry experts have joined forces to show you how it’s done in a one-day landlord course.

Paul Shamplina and Kate Faulkner have teamed up to share their unique combination of expertise in a one-day course for property investors and landlords who want to learn more about the buy-to-let sector and the ups and downs of being a landlord.

Paul Shamplina (left) will host the landlord course with Kate Faulkner

Paul Shamplina (left) will host the landlord course with Kate Faulkner

Shamplina and Faulkner are both respected by the media, industry and landlords. By popular demand, they will join forces to deliver essential information to landlords, based on their vast experience in the property industry.

Faulkner, who runs PropertyChecklists.co.uk and is the author of the Which? property books, will use her analytical experience of buy-to-let investment over the past 15 years and her insight into property issues that could affect profits.

Shamplina is the founder of Landlord Action, which has dealt with more than 35,000 cases where lettings have gone wrong. He is well know for his appearances on ITV’s Tenants from Hell and Channel Five’s Nightmare Tenants, Slum Landlords, as well as his presence on shows such as BBC Breakfast and The One Show. He will highlight major lettings management mistakes and, most importantly, explain how landlords can avoid them.

During the day, attendees will also learn:

  • How to analyse the market to ensure your property portfolio delivers
  • Real ways to boost investment returns
  • How the economy and politics can affect a portfolio
  • Why landlords and investors fail and how to prevent this happening
  • What to do when the inevitable happens – tenants go bad

Alongside Shamplina and Faulkner, the one-day course will host hand-picked specialists that will explain up-to-date information on finance, tax, deposit disputes, legal rules and regulations, plus ways of supporting your property management.

Shamplina comments: “Many landlords – and indeed agents, mortgage brokers and legal companies – are currently operating in buy-to-let, but few have actually ever been educated on the essentials that deliver success and been warned of mistakes made that can end in spectacular failure. We’ll show you how to avoid the major pitfalls and give you the tools to become a successful landlord and investor.”

Faulkner adds: “Many ‘experts’ will try to sell you courses on the secrets of buy-to-let, or the strategies you need to be successful, claiming property prices will always rise, or even peddle the outdated myth that property prices double every ten years. They may even charge you thousands of pounds for mentoring. In contrast, Paul and I will cut through the false claims and get straight to the facts, and we believe you can learn what you need in just one day.”

The landlord course will take place on Wednesday 16th November 2016 from 10am-4.30pm at Hamilton House, Mabledon Place, King’s Cross, London, WC1H 9BD. The one-day event costs just £199, inclusive of VAT, and all attendees will receive a free six-week membership to Shamplina and Faulkner’s buy-to-let essentials website, which gives direct access to their expert advice and network of lettings specialists.

As places are limited, book your spot now by calling 01652 641722 or emailing enquiries@landlordsfriend.co.uk.

Do you need some support from buy-to-let experts? Sign up to this landlord course now!

One in five landlords is embarrassed

Published On: September 9, 2016 at 2:53 pm

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Categories: Landlord News

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An interesting new piece of research has revealed that as many as one in five buy-to-let landlords are too embarrassed to admit they are one!

The National Landlord Association’s Quarterly Landlord Panel quizzed 777 investors. Of these, 21% of landlords said they were too embarrassed to admit their role before.

Regional reluctance

In different regions of Britain, landlords in the East of England and the East Midlands were found to be most reluctant to disclose their role, with 29% and 28% of landlords in these regions respectively.

On the other hand, the English locations with the least embarrassed investors were the South East and Yorkshire and the Humber, with 18%. Only 13% of landlords in Scotland said they were reluctant to tell people, which was the lowest in the UK.

Mr Richard Blanco, a landlord in London and the East Midlands, admitted he hasn’t always been truthful about his role. He said, ‘before becoming a landlord I thought long and hard about it because I had always disliked landlords as a student due to a bad experience I had over my deposit. These days I’m more upfront about it, but I tell people I work in property instead, because I still assume people won’t like me if I tell them what I do.’[1]

‘I always say that I work for the National Landlords Association and that we campaign to improve the private rental sector, which tends to go down a bit better,’ he added.[1]

One in five landlords is embarrassed

One in five landlords is embarrassed

Satisfaction

Findings from the report indicate that 400,000 UK landlords avoid telling people what they do. However, the National Landlords Association believes that despite the bad press, the majority of tenants are satisfied with their current landlord and tenancy agreement.

Richard Lambert, Chief Executive of the National Landlords Association, noted: ‘The number of people looking to invest in property is rising all the time yet the stigma attached to being a landlord never seems to diminish. It’s the minority of rogues and criminal landlords that make the headlines and this has a negative impact on everyone else. The majority of landlords are hardworking individuals who put their own money into providing homes for others and they should not be ashamed to say so.’[1]

[1] http://www.propertyreporter.co.uk/landlords/are-you-embarrassed-to-be-a-landlord.html

Buy-to-let market sees sharp rise in post-Brexit activity

Published On: September 9, 2016 at 10:46 am

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Categories: Landlord News

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New research from Connells Survey and Valuation has discovered that during August, buy-to-let activity surged by 12.7%.

This data suggests that alterations to stamp duty, taxes and the Brexit vote caused only short-term blips for the sector.

Sharp increases

John Bagshaw, corporate services director of Connells Survey and Valuation, noted, ‘now the effects of the Government’s legislation have been digested by lenders and investors alike, buy-to-let activity has increased sharply. The market’s fears over the impact of Brexit are calming too and the Bank of England’s decision to cut the base rate last month for the first time in seven years may also have a psychological impact on property investors.’[1]

‘Encouraging economic data, high levels of employment and fading fears of a recession have also injected life into the sector. While we can see the impact of last Government’s damaging set of changes to legislation in the year-on-year numbers. August’s surge in activity highlights the resilience of the buy-to-let sector,’ he continued.[1]

First-time buyers also saw a strong increase in valuations during the last month, with increases of 6.8% on July and 19.6% on an annual basis.

Remortgaging has also seen an increase in valuations, both monthly and annually, rising by 4.2% and 1.5% respectively.

Buy-to-let market sees sharp rise in activity post-Brexit

Buy-to-let market sees sharp rise in activity post-Brexit

Thriving

Mr Bagshaw continued by saying, ‘first-time buyers have enjoyed a month of growth and the sector is continuing to thrive following a strong July-given first-time buyers are the engine of the property market, this is very significant. August has also seen a surge in activity in the remortgaging sector, partially fueled by in the interest rate.’[1]

‘Overall market activity remains steady and fears of a post-Brexit slump has failed to emerge. In the first full month after the Bank of England’s decision to cut interest rates, the buy-to-let market has seen a surge in activity. Powered by low interest rates, landlords have taken the opportunity to remortgage,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/btl-market-sees-flurry-of-post-brexit-activity.html

Investec cuts buy-to-let mortgage rates by 1%

Published On: September 8, 2016 at 10:02 am

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Categories: Finance News

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Investec Private Bank has moved to introduce a new range of loan-to-value (LTV) bands across its buy-to-let mortgage product range. Borrowing rates have been slashed by up to 1%.

The lenders says its new buy-to-let mortgage rates will begin at 2.5%, plus three-month Libor at 50% LTV. In addition, Investec is also launching a 60% LTV from 2.75% and a 70% LTV at 3.10%.

Services

Investec provides both buy-to-let and residential mortgages to people looking to borrow between £250,000 and £10m, with a minimum annual income of £300,000 and assets totalling at least £3m.

Peter Izard, business development manager at Investec Private Banking, noted, ‘despite recent tax changes, the buy-to-let market remains an attractive proposition for investors. We’re delighted to be announcing these significant rate cuts today, which will be a real boost for landlords seeking larger loans.’[1]

Investec cuts buy-to-let mortgage rates by 1%

Investec cuts buy-to-let mortgage rates by 1%

Alterations

The Bank is one in a number of lenders to cut buy-to-let mortgage rates in recent days, with competition fierce in the market.

Santander cut rates by up to 0.25% on some fixed products, while Virgin Money’s reductions have seen buy-to-let rates at 75% start from 2.19%. Natwest has reduced its standard buy-to-let two year fixed range for both purchase and remortgage by between 19-23 bps. Accord Buy-to-Let also announced plans to expand into the consumer buy-to-let market in the coming months.

Chris Maggs, Accord Buy-to-Let’s commercial manager, noted, ‘despite the uncertainty in the buy-to-let arena we believe that it will remain a robust market.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/investec-slash-buy-to-let-mortgage-rates-by-up-to-1

Rental rises continue through August

Published On: September 7, 2016 at 10:13 am

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Categories: Property News

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New figures from the HomeLet Rental Index suggest that the rental market has remained steady in the face of economic, political and legislative changes.

The Index has recently been redesigned in order to include additional data on new tenancies, alongside property type and location. Results show that rents agreed on new tenancy agreements increased in most areas during the three months to August, albeit at a moderate rate.

New tenancy costs

According to the data, the average price of a new tenancy in the private rental sector rose by 3.1% in the period to hit £913pcm. This was a rise from the £885pcm recorded in August 2015.

August 2016’s HomeLetRental Index shows that rents have risen in eleven out of twelve regions of the UK year-on-year. The North East was the only region to see a fall in annual rents, with prices down by 1.6%.

While rents continue to rise, they do so at a more contained pace. The 3.1% increase seen during August is comparable to rises of between 3.5% and 3.8% seen over the previous four months. The largest slowdown was evident in London and the South East.

Results by region can be seen below:

Region Average rent in August 2016 Average rent in July 2016 Average rent in August 2015 Monthly variation Annual variation
East of England £915 £911 £864 0.4% 5.8%
Wales £654 £649 £622 0.8% 5.2%
North West £699 £693 £670 0.8% 4.3%
West Midlands £674 £658 £652 2.3% 3.3%
South East £1,034 £1,027 £1,001 0.7% 3.3%
Northern Ireland £627 £618 £610 1.4% 2.8%
Greater London £1,497 £1,492 £1,457 0.4% 2.7%
South West £799 £789 £787 1.3% 1.6%
Yorkshire & Humberside £640 £637 £632 0.5% 1.3%
Scotland £629 £643 £622 -2.1% 1.1%
East Midlands £621 £618 £615 0.5% 1.0%
North East £535 £543 £543 -1.6% -1.6%
UK £913 £907 £885 0.6% 3.1%
Notes: Based on new tenancies in August 2016 Based on new tenancies in July 2016 Based on new tenancies in August 2015 Comparison of average rent in August 2016 and July 2016 Comparison of average rent in August 2016 and August 201

[1]

Rental rises continue through August

Rental rises continue through August

Finding a balance

Martin Totty, chief executive of Barbon Insurance Group, HomeLet’s parent company, observed: ‘The latest Index reflects a market in which landlords are engaged in a delicate balancing act: they’re aware of tenants’ concerns about affordability while also conscious of the need to achieve target yields. August’s figures suggest that rents are continuing to rise at a sustainable pace-ahead of price inflation, but well below house price increases, which were running at close to 6% according to the most recent data.’[1]

‘In the medium to longer term, the fundamental driver of rents will be the balance between demand and supply for rented property. We expect demand in the private rental sector to continue to grow, in line with demographic changes such as population growth and as affordability concerns remain in the house purchase market, so it is important that we see efforts to support supply,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/rents-continue-to-rise-in-august