Posts with tag: Buy-to-Let

Valuation activity strong before looming EU referendum

Published On: June 8, 2016 at 11:09 am

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Categories: Property News

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Fresh research from Connells Survey and Valuation indicates that the upcoming EU referendum did not deter valuation activity in May.

In fact, valuation activity rose by almost a fifth year-on-year, with the total number 18% greater than in May 2015. Month-on-month, activity slipped by just 1% in comparison to April of this year.

Valuation activity rises

Both remortgaging and first-time buyer sectors are continuing to be the biggest stand-out areas of activity.

First-time buyer valuation activity grew by 37% and remortgaging by 42% respectively, in comparison to the same period one year ago.

Month-on-month, May’s first-time buyer valuation activity slipped by 8% on April, with remortgaging activity falling by 3% over the same timescale.

John Bagshaw, corporate services director of Connells Survey and Valuation, noted, ‘compared to the gloomy picture painted by some, activity is looking remarkably resilient ahead of June’s housing market. Some month-on-month cooling could still be a result of stamp duty changes that came into effect at the start of April. However once that stamp duty-related instability has passed, there appears to be a steadier annual growth and a more positive outlook for the housing market. Even if the EU referendum does have a measurable impact, one thing is clear-any slump hasn’t happened yet.’[1]

Declines

The buy-to-let sector however saw the sharpest year-on-year decline, falling by 38%. In comparison to May 2015, the number of valuations for buy-to-let has seen the largest percentage growth in comparison to April, rising by 8%

Bagshaw continued by saying, ‘remortgagors are leading the market, underpinned by lenders offering a new set of favourable interest rates for existing homeowners. But first-time buyers are also on the up. Factors such as low inflation, rising wages and government schemes are all helping new owners onto the property ladder. Even for the much-downplayed buy-to-let industry, May was a good month. Valuations on behalf of landlords have been leading the housing market since April. Annual growth is likely to stay negative for buy-to-let activity, but the most recent signs are positive.’[1]

Valuation activity strong before looming EU referendum

Valuation activity strong before looming EU referendum

Home movers

There has been a steady growth in activity amongst home movers. The total number of valuations for existing owner-occupiers looking to move home in the last month rose by 9% year-on-year.

Concluding, Mr Bagshaw said, ‘home movers have had a stable month and appear confident in the strength of the housing market and the value of their homes. Looking ahead to the EU referendum and how the outcome will have an effect on the property market, the feeling from home movers will be an important measure of confidence in a time of uncertainty. But of the time being that doesn’t seem to have stopped thousands of households from electing to sell their current homes and consider an upgrade or a change of location.’[1]

[1] http://www.propertyreporter.co.uk/finance/activity-in-the-housing-market-remains-strong-despite-referendum.html

 

Most off-putting property features revealed

Published On: June 7, 2016 at 8:58 am

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Categories: Property News

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Interesting new research has highlighted the most off-putting and unexpected features that deter people when viewing a property.

The study, conducted by online estate agent easyProperty, looked at a national sample of 1,000 adults. These participants were asked about what sort of things would make them lose interest in a property that they were viewings.

Off-putting property features

Over half of respondents to the survey revealed that they would lose interest in a property should they detect a bad vibe when looking around.

A large number of responses suggest that house-hunters worry about the surrounding area, as much as they do about the property itself. Too many fast food, pound or even charity shops were found to put a number of property buyers off!

In addition, 18% of people questioned said that they would lose interest in a suitable property if they simply disliked the owners!

The top property dealbreakers, according to the easyProperty survey, were revealed to be:

Turn off Percentage who said the turn off could be a dealbreaker
Detecting a bad vibe 54.3%
Lots of fast food shops nearby 37.2%
Lots of pound shops nearby 30.4%
Lots of pubs and restaurants nearby 24.9%
Charity shops nearby 21.2%
Patriotic flags on neighbouring properties 19.5%
Disliking the current owners 18%
Lots of religious buildings nearby 17.4%
Smelly pets 9.2%
Lots of vintage/charity shops/boutiques nearby 6%
Most off-putting property features revealed

Most off-putting property features revealed

Emotionally tough

Rob Ellice, of easyProperty, noted, ‘a home is more than just bricks and mortar and finding the right property can be emotionally taxing. Before deciding on a property most people try to picture themselves living in a certain house or area. What’s the neighbourhood like, would we want to go for an evening stroll? Who are the neighbours, can we imagine inviting them over? How do the schools perform, can we see our kids enjoying it there?’

‘There are many things that may sway our vision and make us become emotionally attached to a property or put us off completely and these can be quite unexpected.’[1]

[1] http://www.propertyreporter.co.uk/property/what-are-the-uks-weirdest-property-purchase-dealbreakers.html

 

 

27% of landlords thinking of using online agent

Published On: June 6, 2016 at 11:15 am

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Categories: Landlord News

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A new survey has revealed that 27% of landlords believe an online letting agency to now be a better option for managing property than a more conventional one.

The investigation, carried out by property consultancy Allsop, also indicates that 31% of buy-to-let landlords are now considering going online in order to save money.

Online letting agents

Further results show that 59% of landlords feel that Government tax changes for the private rental sector will harm their investment profitability. A further 41% said that they are now considering incorporating their business.

40% of investors asked in the survey said that they feel rental growth will increase during the next six months.

37% have been encouraged by heightened demand from their tenants, up from just 4% in the previous six months.

27% of landlords thinking of using online agent

27% of landlords thinking of using online agent

Changing preferences

In conclusion, Allsop stated, ‘it would not surprise us if the preference for online lettings grow in the coming years. A hybrid model of providing expert advice by technological advances, allows for innovative management and letting solutions.’[1]

This news comes on the heels of the launch of Britain’s first online commercial estate and letting agency last week. Virtual Commercial is looking to provide those looking to set or let a commercial home in England and Wales a fixed fee service to help them with their duties.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/6/over-a-quarter-of-landlords-consider-online-letting-agents-to-save-money

 

 

North East property prices rise by £1,000 in May

Published On: June 3, 2016 at 11:35 am

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North East property values increased by 0.6% during the last month. This added £1,000 to the value of a typical home.

These figures suggest that some sort of calm is returning to property prices in the region, which saw values increase by 3.1% in March, then fall 4% in April.

North East Property

The average property price in the region currently stands at £156,975. This is £996 more than the average price recorded at the end of April and is 1.8% greater than at the same time last year. In cash terms, this rise amounts of £2,525.

Month-on-month, the highest growth was recorded in Whitley Bay. Prices here rose by 3.8%. Other areas with considerable growth include Houghton-le-Spring (2.5%), Sunderland (2.4%) and Gateshead (2.2%).

On the other hand, there were falls in Jarrow (-1.9%), Seaham (-1.4%) and Durham City and North Shields (0.6%).

Rental rising

In terms of rent, prices rose by an average of £12 per calendar month to £578pcm. This represents a rise of 1.6%, with the average cost of a property in the North East increasing by £3 every week.

Rents in the region are now £30 per month greater than in May 2015 and £18 higher than in May 2014.

Presently, Blyth is the cheapest place to rent in the North East, with monthly rents averaging at £403.

Peterlee is the regions buy-to-let capital, offering rental yields of 6.1%. Other good performers include Gateshead with yields of 5.4%, Sunderland with 5.3% and Newcastle with 5.1%.

Sliding property prices and increasing rents have led yields in the North East to rise by just 0.1% to 4.4%.

North East property prices rise by £1,000 in May

North East property prices rise by £1,000 in May

Settling down

Ajay Jagota, founder of North East based sales and lettings firm KIS, said: ‘after a lively few months which saw North East house prices change positively or negatively by at least 3% in January, March and April it’s predictable and perhaps even a little welcome that prices have settled down over the last four weeks. Real growth in the North East property market is currently in rents, which after at least two years of stagnation have risen from an average of £552 a month in March to £578 today.’[1]

‘This could suggest falling stocks of rented homes, which would support the claims that tax changes are forcing landlords to leave the market. This doesn’t just have a negative impact on the people who will have to find almost £1000 in deposits to move into a new rental home, it could have a profound impact on the region’s economic future,’ Jagota continued.[1]

[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-rise-1000-in-may.html

Interest in HMOs grows amongst landlords

Published On: June 2, 2016 at 9:04 am

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Categories: Landlord News

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Buy-to-let landlords are more frequently looking to purchase Houses in Multiple Occupation (HMOs) , due to the greater rental yields that they offer, according to a new report.

The investigation by Mortgages for Business also shows that 28% of landlords questioned are thinking of purchasing a HMO. This is a rise of 10% from one year ago.

HMOs interest rising

In addition, the firm shows that the proportion of investors searching for vanilla property-conventional houses and flats which fall within traditional buy-to-let criteria-has slipped from 83% to 79% in the last six months.

What’s more, the introduction of the additional stamp duty surcharge during April has also had an impact on the number of landlords looking to add to their existing portfolios.

November 2015 saw 46% of landlords questioned express an interest in purchasing additional properties. However, by last month, this figure had fallen to 41%.

However, the number of landlords looking to sell their properties has dropped, from 18% six months ago to 14% during May.

Interest in HMOs grows amongst landlords

Interest in HMOs grows amongst landlords

Incorporation

With restrictions on buy-to-let mortgage interest tax relief for higher rate taxpayers coming in next year, more residential landlords have been exploring the possibility of incorporating their portfolios in private limited companies.

Last month, 30% of landlords surveyed said that they owned a property within a limited company, up from 22% at the same period last year.

David Whittaker, managing director of Mortgages for Business, ‘with higher yields it is no surprise that there has been a sizeable shift towards the more complex property types.’[1]

Commercial interest

Mr Whittaker also said that there has been increased interest in commercial and semi-commercial property, with these assets not incurring the 3% stamp duty charge.

‘It is positive to see that fewer landlords are looking to sell property and shrink their portfolios and that a large proportion are still seeing the benefits of remortgaging. After the government’s tax crackdown on private landlords I can understand why investors are being more cautious about expansion. It will be interesting to see how long this cautious approach will last,’ he stated.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/6/landlords-favouring-hmos-to-benefit-from-higher-yields

 

Landlords fined for fire safety breaches

Published On: June 1, 2016 at 12:35 pm

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Categories: Landlord News

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Two rogue landlords from Hull have been fined after being found guilty of breaching fire safety regulations.

The brace of prosecutions were decided upon by Hull City Council for offences in two separate cases.

Fire safety fines

Firstly, Mr John Holmes was fined £1,600 for failures relating to a house in multiple occupation (HMO). In addition, Holmes was ordered to pay £700 in court costs, alongside a £125 victim surcharge.

This followed a ruling from Hull City Council’s environmental health department that there were failings in several properties owned by Mr Holmes in the city. In one property, the inspectors discovered a blocked fire escape and inadequate emergency lighting.

Another instance saw problems reported with the electrical wiring in a separate property. Mr Holmes was given informal requests for improvement works, all of which were ignored.

A subsequent visit to the HMO saw officers find an internal fire escape, serving six flats, to be blocked off.

Landlords fined for fire safety breaches

Landlords fined for fire safety breaches

Failures

In the second case, rogue landlord Ashraf Khan was given a fine of £660 and told to pay costs of £504, with a victim surcharge of £66.

What’s more, Khan was charged a further £10,000 for improvement works arranged by the council.

Mr Khan ignored a previous improvement notice that was issued from the council, after officers had found electrical faults, shoddy fire precautions and window defects.

Councillor John Black, portfolio holder for housing, said, ‘we have a duty to protect private sector tenants and this proves that we take our role seriously. We tried to work with each landlord to reach a satisfactory conclusion but the work remained uncompleted, which is way we had no choice but to take this enforcement action.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/landlords-hit-with-fines-for-fire-safety-failings