Posts with tag: Buy-to-Let

27% of tenants felt rushed into signing tenancy agreement

Published On: August 8, 2016 at 11:44 am

Tags: Buy-to-Let,rental sector,tenancy agreements,tenants

Concerning new research has revealed that 27% of tenants feel they were rushed into signing their tenancy agreement.

The investigation from Ocean Finance shows that many renters felt the pressure of competition in the market made them sign an agreement on the day they viewed the property.

Rushing renters

One in ten renters said that their time taken between viewing and entering an agreement was between 2-3 days. A further ten percent said they signed a contract 4-7 days after viewings.

18-24 year olds were found to be the age group acting with most haste, with 46% saying they rushed into signing a deal. In contrast, just 17% of those aged over 55 felt pressured to move quickly to secure their tenancy.

Unsurprisingly, tenants in the capital felt under more pressure to sign quickly, with 40% stating that this was the case in their experience. Renters in Northern Ireland felt under similar pressure, but just 12% of tenants in Wales felt obliged to rush.

27% of tenants felt rushed into signing tenancy agreement

Regrets

Of those tenants who felt pressured to sign their tenancy agreement, half wished that they hadn’t.

The top reasons for regretting signing were:

Reason for regret	% of rushed tenants who gave reason
Property is too cold	10%
Property is too small	9%
Property needs too much work doing to it	9%
Dislike of surrounding area	8%
Not enough outdoor area	6%
Property lacks character	4%
Property is too old-fashioned	4%
Property is too far away from amenities	2%

[1]

Ian Williams, spokesman for Ocean Finance, said, ‘our figures demonstrate just how hard it is to rent a property across much of the UK. The best properties are often snapped up within hours or even minutes. As a result, would-be tenants feel under pressure to sign quickly to secure the property. Sadly, half of those go on to regret their haste, finding themselves in a home that they don’t like or which doesn’t suit them.’[1]

[1] http://www.propertyreporter.co.uk/landlords/1-in-4-tenants-say-they-rushed-into-their-tenancy-agreement.html

Buy-to-let mortgage activity plummets year-on-year

Published On: August 5, 2016 at 11:29 am

Author: Em Morley

Categories: Finance News

Tags: Brexit,Buy-to-Let,buy-to-let mortgage,property valuations

The latest data released by Connells Survey and Valuation reveals that first-time buyers and remortgagors have received a post-Brexit boost.

However, the same cannot be said for buy-to-let, with a sharp fall in the number of valuations.

Rise and falls

Data from the report reveals that overall property valuations slid by 2% between June and July. This said, first-time buyer and remortgage valuations increased 12% year-on-year.

On the other hand, home mover valuations fell by 8% on a yearly basis, while buy-to-let saw a substantial drop of 41% over the same period.

John Bagshaw, corporate services director of Connells Survey & Valuations, observed, ‘judging the Brexit effect might take years-but in the meantime the first full month after the vote already looks encouraging.’[1]

‘Change has mainly been confined to the mixture of activity, rather than the overall volume of variations,’ he continued.[1]

Buy-to-let mortgage activity plummets year-on-year

Uncertainty

Bagshaw went on to say, ‘any clouds of uncertainty are showing their silver lining for first-time buyers, if anything dealt an advantage as some other buyers paused for thought in the weeks immediately after the result. If longer-term economic issues are on the horizon, first time buyers aren’t feeling the effects yet.’[1]

‘It won’t be until the coming months and years that real trends will start to emerge for the post-Brexit property reality. But in the meantime, people will still need properties and the housing market is proving resilient,’ Bagshaw concluded.[1]

[1] http://www.propertyindustryeye.com/buy-to-let-mortgage-activity-plummets-by-over-40-in-a-year/

Which seaside towns have seen the largest house price increases in the last year?

Published On: August 4, 2016 at 11:37 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,coastal property,house price growth in seaside towns,seaside towns

A new survey by Zoopla has revealed the most expensive seaside towns to purchase property in the UK.

Margate came top of the pier, with recent regeneration and new tourist attractions driving house prices in the town to an average of £202,276. This represented a rise of 12.5% in the last year.

Seaside surges

Other locations where investors could soon be building sandcastles are Grange-over-Sands in Cumbria and Walton on the Naze, Essex. Property values in these regions increased by 10.58% and 10.04% year-on-year respectively.

The top-ten seaside property towns by average house price increases during the last year were:

Seaside location	Change in value since July 2015
Margate, Kent	12.54%
Grange-over-Sands, Cumbria	10.58%
Walton on the Naze, Essex	10.04%
Felixstowe, Suffolk	9.59%
Porthcawl, Wales	7.61%
Llandudno, Wales	7.56%
Ramsgate, Kent	7.17%
Hastings, Sussex	6.95%
Hayling Island, Hampshire	6.83%
Southend-On-Sea, Essex	6.81%

[1]

Out with the tide

At the other end of the promenade, the South West coastline houses many weakest performing seaside locations in terms of growth in the past twelve months.

However, Cleethorpes in Lincolnshire topped the list of worst performers, with property values sliding by 5.47% in the period. Cruden Bay and Collieston, both in Aberdeen, both saw slides of 4.63%.

The bottom ten seaside towns in terms of property changes were found to be:

Seaside location	Change in value since July 2015
Cleethorpes, Lincolnshire	-5.47%
Cruden Bay, Aberdeen	-4.63%
Collieston, Aberdeen	-4.63%
Saltburn-by-the-sea, North Yorkshire	-4.33%
Aberystwyth, Wales	-3.48%
Rhyl, Wales	-3.37%
Iilfracombe- Devon	-2.21%
Woolacombe, Devon	-2.21%
Looe, Cornwall	-2.19%
Perranporth, Cornwall	-1.98%

Which seaside towns have seen the largest house price increases in the last year?

Expensive

The most expensive property values for British seaside locations in July 2016 was found to be Salcombe in Devon. Investors won’t be left with much money for the slot machines, as values of houses here average at £598,230. Other expensive coastal locations include Aldeburgh, Suffolk (£490,182) and Southwold, Suffolk (£434,618).

Average property values were highest in these ten seaside locations:

Seaside location	July 2016 property value
Salcombe, Devon	£598,230
Aldeburgh, Suffolk	£490,182
Southwold, Suffolk	£434,618
Lyme Regis, Dorset	£402,634
Brighton, Sussex	£368,782
North Berwick, Scotland	£364,306
Port Isaac, Cornwall	£356,962
Sidmouth, Devon	£352,896
Woolacombe, Devon	£347,507
Swanage, Dorset	£330,901

On the other hand, cheaper seaside towns can be located in Scotland and Wales. Saltcoasts in Scotland has the lowest average property values of just £109,109.

The cheapest seaside towns were discovered to be:

Seaside location	July 2016 property value
Saltcoats, Scotland	£109,109
Blackpool, Lancashire	£114,443
Blyth, Northumberland	£120,775
Cleethorpes, Lincolnshire	£126,331
Kilchattan Bay, Scotland	£130, 846
Rhyl, Wales	£134,577
Morecambe, Lancashire	£136,063
Girvan, Scotland	£138,094
Saltburn-by-the-sea, Yorkshire	£140,396
Fairbourne, Wales	£141,576

Regeneration

Lawrence Hall, spokesman for Zoopla, noted, ‘the big increase in the value of an average home in Margate follows large amounts of regeneration funding that the town has received in the past decade-with attractions such as the Turner Contemporary gallery and the Dreamland theme park.’[1]

‘If you’re considering investing in a beach front property, you should consider those resorts receiving Government investment-it does have a positive impact on property values,’ he added.[1]

[1] http://www.dailymail.co.uk/property/article-3700998/Margate-house-prices-rise-12-year-following-multi-million-pound-regeneration.html

Landlord fined heavily for ignoring repair requests

Published On: August 4, 2016 at 9:00 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,rental market,rogue landlord,tenants

A rogue landlord has been fined nearly £18,000 and given a criminal record after refusing to carry out renovations to his rental property.

Mr Paul Fenton, of Radlett, Hertfordshire, pleaded guilty to offences under the Housing Act 2006 at Willesden Magistrates Court. Fenton failed to explain how his rental property, that he was letting for £1,000 pcm, had fallen into such a state of disrepair.

Poor conditions

The property was discovered to have severe damp and mould growth, which were so bad that the chair of magistrates slammed the abode as uninhabitable. Other problems included a leaking boiler and rotting front door.

Brent Council received a complaint from the tenant of the property regarding its condition. As a result, enforcement officers inspected the flat in August 2015 and found a whole host of hazards. Fenton was subsequently issued with a formal demand from the council, permitting him to repair all damages within 56 days.

However, when council officers returned to the flat in both January and May this year, they found that repairs had not been carried out.

Mr Fenton, who has owned the property since 1990, claimed that he had not been into the flat for a number of years. He falsely assumed that the tenants were pleased, as they had not asked him for repairs.

Landlord fined heavily for ignoring repair requests

Fines

Despite Fenton claiming he was unsure of his income, he was eventually fined £16,000 and ordered to pay costs of £1,573 and a victim surcharge of £120.

Councillor Harbl Farah, Brent Cabinet Member for Housing, noted, ‘the dreadful conditions found at this flat reaffirm once again how important our private sector licensing scheme is. Slumlords like Mr Fenton should not be allowed to get away with treating their tenants like this. Brent is committed to supporting tenants by prosecuting unscrupulous landlords who are happy to under maintain and over crowd their properties.’[1]

[1] http://www.propertyreporter.co.uk/landlords/heavy-fine-for-landlord-who-ignored-pleas-for-repairs.html

Demand for HMOs rising sharply

Published On: July 28, 2016 at 11:20 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,HMO's,landlords,Stamp Duty

An interesting new report has indicated that a growing number of landlords are looking to invest in HMO properties to improve their rental income.

A rise in investment in student property in particular has driven a 150% year-on-year increase in multi lets and HMO’s at Multi-Let UK.

In addition, Multi-Let’s sister company Portfolio-Builder.co.uk has seen a 300% yearly rise in investors joining a waiting list for the acquisition of HMO properties.

HMO yields

Buy-to-let landlords have been hit by the additional 3% stamp duty surcharge and are likely to be affected further by changes to mortgage interest tax relief scheduled for next year. For those in London and the South East, vanilla lets are simply not producing enough yields.

Daniel Hill, Managing Director of Multi-Let UK, believes that letting a single property to a number of tenants can boost total rental incomes. Hill said, ‘experienced investors are recognising the opportunity to raise the monthly rent earned from a property by housing multiple occupants, all of whom pay rent separately.’[1]

‘The tax hikes have forced landlords and investors to review their portfolios and look at ways to boost rental income and protect profits. The beauty of HMO’s is that the rent does not need to be raised because the profitability of multiple tenants is much higher than comparable, standard buy-to-let property. Usually, landlords rent a property on the basis that one person or household is responsible for paying the rent, even where there may be a family of five residing in the property,’ he continued.[1]

Demand for HMOs rising sharply

Complexity

Continuing, Hill noted, ‘HMOs are more complex to manage as they can require licenses and generally need more maintenance and repair. Despite this, they can be very profitable. For example, a three-bedroomed, single let property in the Midlands may typically achieve a gross rent of £650 per calendar month for a family. It is usual that, once converted, the gross rent on the same property will exceed £2,000 pcm as HMO. This represents a significant profit opportunity for buy-to-let investors who have the required expertise to generate sustainable returns in this increasingly competitive market.’[1]

‘Many standards properties can be successfully converted to HMOs with the introduction of C4 building regulations. If a high quality refurbishment is undertaken, the property can attract working professionals in the right location, who are prepared to pay more for a shared property, with a superior finish. Luxury ensuites, large TV’s premium kitchen appliances and furnishings are the type of features that help to generate a high yielding HMO, where the market conditions accommodate,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/demand-for-hmos-sees-150-year-on-year-rise.html

Rogue landlord fined for health and safety breach

Published On: July 27, 2016 at 11:02 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,improvement notice,legislation,rental market,rogue landlord

Another landlord has been handed a substantial fine after refusing to adhere to an improvement notice on his property.

Sunderland Magistrates’ Court issued a fine to Joseph Benedikt, after repeatedly refusing to carry out improvements on his cold and damp property in Chardmore Road, London.

Fines

Benedikt was given a fine of £2,000, told to pay £998 in costs and a £200 victim surcharge as a result of his negligence.

This hearing followed a previous guilty plea to further non-compliance with an Improvement Notice, relating to a different property in Corporation Road, Hendon, Sunderland. Mr Benedikt left the property in a poor state of repair, despite receiving a schedule of works from Sunderland City Council’s private housing team.

The property was found to have:

structural damage
inadequate heating
no insulation
damp
mould

As a result, conditions in the property were found to pose a serious health risk to the pregnant teen and her two children residing there. Despite this, Benedikt refused to bring the property up to acceptable standards.

Rogue landlord fined for health and safety breach

Enforcement

Councillor Graeme Miller observed, ‘this prosecution is a demonstration of our willingness to take enforcement action against landlords whose rental properties fail to meet the required standards and a reminder of what can happen if they fail to meet their legal responsibilities.’[1]

‘It also shows what an important part the selective licensing scheme played in beginning the continuing process to improve private rented properties in Hendon, Miller added.[1]

Concluding, he said, ‘we always strive to work in partnership with private landlords and encourage them to join the accredited landlords’ scheme. We can achieve so much more by providing people with standards of rented accommodation they deserve and landlords with the type of tenants who will respect their properties and contribute to the communities that they’re living in.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/7/landlord-who-put-young-familys-health-and-safety-at-risk-fined