Posts with tag: Buy-to-Let

Many homeowners neglect garden security

Published On: May 11, 2016 at 2:38 pm

Tags: Buy-to-Let,garden,homeowners,property security

An interesting new survey has revealed that millions of UK homeowners are neglecting the security of the garden in their homes.

According to research conducted by online garden furniture retailer Rattan Direct, 27% of Britons do not lock their garden gates or doors to their backyard.

Lack of security

Home security is at the forefront of many homeowners’ checklists, but the research suggests that this does not stretch to their gardens or outdoor space.

A number of people surveyed admitted to not replacing broken padlocks or gates, leading themselves susceptible to theft.

A whopping 80% admitted to leaving some valuable items in their garden. Expensive garden furniture topped the list, followed gardening tools, bicycles and outdoor toys for children.

Just 7% of people questioned said that they keep items from their garden locked away in a shed or in their property overnight.

Many homeowners neglect garden security

Regional variance

The survey also indicated that by region, peoples’ attitude towards their security varied. 23% of Welsh residents said that they had nothing in their garden worth securing.

Alternatively, those in Yorkshire were found to be the most security conscious, with 10% saying that they bring all of their items inside to ensure burglars did not target their outdoor space.

Robert Fernandez, spokesperson for Rattan Direct, said, ‘securing our gardens and backyards should be top of the list of priorities. Every single homeowners or tenant should invest in a padlock to protect those items that are often left outside overnight. Replacing stolen items can be very expensive, even if you feel they hold very little value in the first place.’[1]

[1] http://www.propertyreporter.co.uk/household/are-you-keeping-your-garden-secured.html

UK housing market cools after record period

Published On: May 11, 2016 at 11:56 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,landlords,property sales,Stamp Duty,UK housing market

UK housing market activity is slowing after the surge to beat the increased stamp duty surcharge deadline.

Data from the Halifax indicates that yearly house price growth in Britain slowed to 9.2% in April, down from the 10.1% recorded in March.

Records

The cooling of the market comes after the rush to beat the rise in stamp duty land tax for buy-to-let and second properties. A record 165,400 homes were sold in Britain during March, ahead of the tax changes coming into play on the 1^st April.

This figure was 11% greater than the previous record number of property sales recorded in January 2007, according to HMRC.

Rob Weaver, director of investments at property crowdfunding platform Property Partner, said, ‘the much-heralded stamp duty deadline ultimately led to a stampede by buy-to-let investors and second home owners up to March. Unsurprisingly, April’s dip in house prices is the calm after the storm.’[1]

UK housing market cools after record period

Concerns

A number of experts have predicted further cooling in the market, as uncertainty surrounding the upcoming EU referendum continues to intensify. However, the market is widely expected to pick up following the vote, with demand continuing to far outstrip supply.

Martin Ellis, Halifax’s housing economist, noted, ‘current market conditions remain very tight as the severe imbalance between supply and demand persists.’[1]

‘This situation, combined with low interest rates and rising employment and real earnings, should continue to push house prices up over the coming months, ‘Ellis added.[1]

Despite the market cooling in the last month, 2016 has still seen a positive start for the property market in general.

David Livesey, chief executive of the Connells Group, believes, ‘this generally positive climate looks set to be maintained over the coming quarters, regardless of the result of the upcoming referendum and with demand for housing continuing to outstrip supply, the outlook for the hosing market remains positive.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/5/the-calm-after-the-storm

[2] http://www.propertywire.com/news/europe/uk-property-market-outlook-2016051011895.html

Stamp Duty increase lead to 180% hike in transactions

Published On: May 10, 2016 at 8:55 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,buy-to-let landlords,CML,Stamp Duty

The latest report from the CML has highlighted the major impact of the increased stamp duty surcharge on buy-to-let transactions.

Analysis of Bank of England and HM Revenue and Customs data indicates that on a non-seasonally adjusted basis, transactions totalled 162,000 in March. The CML said it normally expects this figure to be around 100,000, implying 60% of the increase was down to the alterations.

Large

A 60,000 rise in property transactions in comparison to the typical baseline was, ‘larger than expected,’ according to the firm. In fact, the CML went as far as to say the increase in transactions, ‘appears to have been larger than anything we’ve seen before that’s associated with a tax change.’[1]

Further analysis shows that cash-funded transactions rose almost as much as those with a mortgage. This is despite cash transactions typically making up just 35% of the market.

Estimates from the CML suggest that an extra 32,000 mortgaged transactions took place during March, meaning that cash transactions rose by roughly 28,000.

Categorically rising

Of the four categories assessed by the CML, the largest proportionate increase was found in buy-to-let purchases, which increased by 180% from February. Next came cash transactions, showing a rise of more than 80%. Home-mover transactions rose by 60% and first-time buyers purchases increased by 28% in comparison to February.

Stamp Duty increase lead to 180% hike in transactions

CML analyst Mohammed Jamel noted, ‘alongside the growth in transactions, there was a corresponding jump in lending. Our initial estimate was of extra lending of between £4 and £5 billion, with the data from the Bank of England showing the actual figure was at the higher end of this figure.’[1]

‘We’ve now revised our initial estimate of lending in March to £26.2 billion, which was 46% higher than February. This implies just over £5bn extra lending than would otherwise have been the case, which roughly tallies with the 32,000 or so extra mortgaged transactions, given an average loan of about £150,000 per mortgaged transaction,’ Jamel continued.[1]

Concluding, he stated that, ‘our understanding is that approved applications that were in the pipeline were squeezed to complete before the stamp duty deadline, as opposed to seeing a big increase in new applications being approved in March. As a result, it is very likely that we will see lower activity levels in the next few months, which ties in with early data we have collected for April, showing a marked drop-off in lending.’[1]

[1] http://www.propertyreporter.co.uk/landlords/stamp-duty-hike-fueled-180-rise-in-btl-transactions.html

Developers downsizing to appeal to buy-to-let market

Published On: May 9, 2016 at 11:40 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,property,property developers

A leading lettings director has claimed that developers of prime London locations could be considering downsizing apartments that are struggling to sell.

Marc von Grundherr, director at Benham & Reeves Residential Lettings in London, feels that downsizing these types of property make them more appealing to buy-to-let investors.

Research

Mr von Grundherr said recent research shows that there are more luxury flats being built in London than have been sold previously. Developers across the capital are now re-examining the latter stages of schemes expected to include three or four bed apartments. These are now thought to be changes to lower specifications of one or two-bed units.

Benham & Reeves Residential Lettings’ data indicates that 49% of flats in its 15 London offices have two-bedroom units. One-bed units make up 22% of transactions, studios 11% and the remaining 18% houses and apartments with three or more rooms.

‘The top end of the market was booming so naturally developers started building luxury properties,’ von Grundherr noted. ‘No block of flats was complete without one, two or three multi-million pound penthouses, not to mention other high end developments in prime areas where the starting price was £1m. Now that these properties are finally hitting the market, demand has dried up.’[1]

Developers downsizing to appeal to buy-to-let market

Demand

Continuing, Mr von Grundherr said, ‘secondly, this isn’t Hong Kong or Manhattan. British families tend not to live in large apartments but in houses. Flats are for individuals, couples and downsizers. Even when we get a family asking for a larger property, they’re often renting while they look for something to buy or while they’re renovating their principle property.’[1]

‘Developers and especially planners need to recognise where the demand is. It’s for smaller units that let more easily and these units are also the ones in demand by owner occupiers,’ he concluded.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/developers-downsizing-flats-to-appeal-to-buy-to-let-investors

Landlord jailed after cannabis cultivation

Published On: May 9, 2016 at 9:16 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,buy-to-let landlords,cannabis,rental market,tenants

A buy-to-let landlord has been put behind bars after being found guilty of growing cannabis with a value of £75,000 in one of his properties.

Despite claims that he was unaware of the cultivation, James Sullivan, 61, was given a three-year jail term.

Scent down

Officers were alerted to the illegal cultivation after detecting a scent from the street outside the house in Plymouth. When entering the property, the officers found 64 mature plants, some of which reached 4ft in height.

Mr Sullivan, a former paratrooper, was found guilty of growing cannabis between December 2012 and February 2013 and was sentenced to four years behind bars. However, this conviction was quashed by the Court of Appeal.

Addressing the most recent conviction, judge Ian Lawrie said: ‘you are a man of good character and what on Earth possessed you to get involved in criminal activity at this stage in your life, I do not know. But you are going to have to pay a heavy price.’[1]

Landlord jailed after cannabis cultivation

Going to pot

The case of Mr Sullivan highlights the need for landlords to be wary of their tenants growing cannabis in their rental property.

In the last year alone, police seized 456,911 plants across Britain, according to Direct Line for Business. In London, 59,002 plants were found, more than in any other part of the country.

Birmingham is also the second city in terms of cannabis cultivation, with police in the West Midlands confiscating 52,218 plants. In greater Manchester, officers found 33,547 plants.

Jane Guaschi, business manager at Direct Line for Business, noted, ‘the consequences of a cannabis farm on a landlord’s property can be financially catastrophic.’[1]

Offering advice for landlords, Guaschi said, ‘landlords should check to see if their insurance policy covers them for malicious damage as it’s not just the structural damage that could have insurance implications, it’s the financial headache of the clean-up that will hurt the landlord’s back pocket. What’s more, landlords could face the loss of rent and the stress of the legal wrangling during periods of repair or eviction.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/5/landlord-jailed-for-marijuana-related-crime

Councillor calls for rent caps on benefit tenants

Published On: May 6, 2016 at 11:40 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,housing benefit,landlords,rent caps,tenants,Universal Credit

The leader of Southend Council has proclaimed that he is in talks with the Government about the introduction of rent caps for tenants on benefit.

Ron Woodley, an independent councillor, said that his town is being treated as a dumping ground by London borough councils.

Struggles

Local Housing Allowance and the recent introduction of the housing allowance element in Universal Credit has seen many local authorities struggle to find affordable privately rented accommodation for the homeless. This is particularly true in more affluent areas.

Mr Woodley believes that London boroughs are sending these people to Southend as rents are considerably cheaper. Many London boroughs have market rents much greater than the Local Housing Allowance maximum of £26,000.

He believes that private rental charges to tenants on benefits should be reduced to those currently charged to tenants residing in social housing.

Affordability

Woodley observed that this, ‘would save the Government something like £14bn a year in housing benefit and would make housing in cities like London more affordable, so you’d stop the London boroughs sending people out of London because it’s cheaper elsewhere.’[1]

‘In many European countries they have some sort of cap on what people can charge in rented accommodation and I think we need this to stop the private rented sector running out of control, which is what it’s currently doing,’ he added.[1]

Councillor calls for rent caps on benefit tenants

Dangers

However, Richard Hair of Hair & Son estate agents, based in Southend, has warned of the dangers that interference in the market could bring.

Hair noted, ‘The Government has an appalling record of interfering in the property market and there have been suggestions not long ago by the Labour Party of capping rent. Anyone interfering in any market place does so at considerable risk to the market place.’[1]

[1] http://www.propertyindustryeye.com/call-for-rent-caps-when-properties-let-to-tenants-on-benefit/