Posts with tag: investors

MP calls for clampdown on rogue landlords

Published On: November 30, 2016 at 2:52 pm

Tags: investors,licensing,licensing scheme,rogue landlords

A MP has expressed her desire to see more done in order to clampdown on rogue landlords.

Don Valley MP Caroline Flint has called for selective licensing to be extended across the whole borough. This call follows a visit from the MP to Newham in London, where the council already runs a borough-wide licensing scheme.

Licensing

The Labour MP wants to see her constituency in Doncaster follow Newham’s lead, by implementing fresh selective licensing in an attempt to tackle bad housing conditions, low demand and high deprivation.

Flint said, ‘Newham is a leader in tackling the problems of slum landlords, particularly those who would rent an unsafe property to tenants, or fill a property to the point of overcrowding.’[1]

After viewing what she called, ‘shameful’ private rental housing, Flint stated: ‘To tackle this appalling state of affairs, Newham has a borough-wide approach, with an enforcement team that works hand in hand with the police to support compliance with the scheme.’[1]

‘Many landlords in Newham are good, responsible landlords, but a minority of criminal landlords take advantage of residents and of poor quality accommodation,’ she added.[1]

MP calls for clampdown on rogue landlords.

Praise

Flint, a former housing minister, moved to praise Newham Council, which has taken 890 prosecutions and banned 28 landlords, since their licensing scheme was introduced in 2013.

Concluding, she observed: ‘I see the rise of private landlords in our low rent areas, and with that the rise in criminal and irresponsible landlords. The Council has started a licensing scheme in Hexthorpe but the Mayor has promised to extend this to Edlington. I hope licensing will be rolled out much more widely.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/mp-wants-to-see-more-done-to-clampdown-on-rogue-landlords

Which regions have seen the highest property price rises in 2016?

Published On: November 30, 2016 at 10:08 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,investors,property,property price rises

With the end of the year on the horizon, home services marketplace Plentific has released it’s 2016 Property Price Index. This gives an overview of how Britain’s house prices have performed during the last 12 months and has revealed some surprising results.

Property price rises

The study has indicated the top ten best and worst performing regions in terms of property price fluctuations.

Aylesbury led the way, with the average price of a home rising by an eye-watering 21.5% over the course of the year.

It appears that prices in new commuters hotspots have risen substantially, with Aylesbury thriving as a result. In fact, the top-ten is dominated by regions in London and the South East.

Greenwich (+19.91%), Hammersmith (+17.46%) and Chelsea (+18%) all represented the top-ten in London. Meanwhile, St Albans (+17.28), Sutton (+17.39%), Reading (+16.9%) and Brentwood (+19.43%) are other commuter regions that saw a surge in values.

The full top ten list is:

Town	Dec 2015 Average Sold Price	Current average value (2016)	Change %	Change £
Aylesbury	£314,236	£381,787	21.50%	£67,551
Greenwich	£509,710	£611,169	19.91%	£101,459
Ipswich	£221,805	£265,267	19.59%	£43,462
Brentwood	£447,220	£534,094	19.43%	£86,874
Chelsea	£1,836,338	£2,166,805	18.00%	£330,467
Hammersmith	£875,132	£1,027,929	17.46%	£152,797
Sutton	£396,757	£465,750	17.39%	£68,993
St Albans	£511,418	£599,772	17.28%	£88,354
Reading	£380,989	£445,375	16.90%	£64,386
Wirral	£197,244	£229,950	16.58%	£32,706

[1]

Which regions have seen the highest property price rises in 2016?

North/South divide

The Index reveals a distinct North/South divide, with only the Wirral representing the North in the top-ten locations for house price growth.

However, there are a number of northern regions among the worst performers, including Rotherham (+3.48%), Salford (+3.08%) and Bradford (+2.99%).

Bottom of the list though is Westminster, with values actually falling by 3.67% over the period. Demand in prime central London has seen substantial falls, with Westminster taking the brunt of the lower interest.

The worst performing regions were found to be:

Town	Dec 2015 Average Sold Price	Current average value (2016)	Change %	Change £
Highland	£166,542	£174,898	5.02%	£8,356
Stoke-on-Trent	£137,048	£143,924	5.02%	£6,876
Newquay	£252,426	£262,010	3.80%	£9,584
Rotherham	£142,032	£146,975	3.48%	£4,943
Hackney	£580,438	£599,139	3.22%	£18,701
Salford	£150,820	£155,462	3.08%	£4,642
Bradford	£124,921	£128,655	2.99%	£3,734
St Ives	£333,669	£334,376	0.21%	£707
Middlesbrough	£145,812	£143,448	-1.62%	-£2,364
Westminster	£1,247,719	£1,201,932	-3.67%	-£45,78

Stephen Jury, spokesperson for Plentific, noted: ‘Our report shows the winners and losers in property this year. More importantly, it gives valuable insight to those wanting to get onto the property ladder or invest in property in areas with good potential for price increases.’[1]

‘We have found a fifth of homeowners carry out home improvements to increase the value of their property. Buying a renovating a fixer-upper in the right area will increase the value significantly, so this is worth considering when hunting for property,’ he added.’[1]

[1] http://www.propertyreporter.co.uk/property/2016-property-price-index-reveals-whats-hot-and-whats-not.html

Over 20% of landlords take 4 months to find first tenants

Published On: November 29, 2016 at 10:17 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,finding tenants,investors,tenants

Interesting new research has revealed that over one in five buy-to-let landlords have to wait more than four months before getting their first tenants into the property.

The study from Nottingham Building Society shows that 21% of new landlords had to wait four months or longer after completing their buy-to-let mortgage before they found paying tenants.

Obtaining tenants

Conducted by the HMLettings part of its business, the Nottingham’s research found that 53% of buy-to-let investors have tenants within two months of purchasing their first investment. However, many more are facing delays, putting pressure on their bank balance.

Further data from the report found that the average investor has to pay £2,000 on their initial property before they find suitable tenants. 35% said that they managed to spend less than £1,000.

62% of those questioned said that they had to redecorate or refurbish their property before letting them out. 28% said that this work took two weeks or longer.

More encouragingly, once tenants are in a property, it seems the pressure eases somewhat. 45% of landlords quizzed said that they had no void periods in the last 12 months.

Over 20% of landlords take 4 months to find first tenants

Support

The Nottingham feels that the research shows the need for support and advice throughout the process of getting a buy-to-let mortgage, then letting out the property.

Stephen Reade, Lettings Operation Manager at the Nottingham, noted: ‘Becoming a landlord remains attractive for thousands of people, but it is clear landlords need to think carefully before making the decision and also to plan ahead. Having to wait four months or more before getting tenants in can put a strain on finances and landlords need to ensure they have spare money to invest in their property over and above basic mortgage costs.’[1]

[1] http://www.propertyreporter.co.uk/landlords/1-in-5-landlords-experience-a-4-month-tenant-delay.html

Landlords in Wales facing fines for illegal lets

Published On: November 28, 2016 at 2:20 pm

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let landlords,investors,landlords,Rent Smart Wales,Wales

Concern is growing that thousands of buy-to-let landlords in Wales could face fines or even a jail sentence for failing to register for a new licensing scheme.

Last week (23^rd November), the Welsh Government’s Rent Smart Wales scheme became law. However, it is estimated that over 13,000 private landlords in the country are yet to register with the scheme, meaning they could be letting out properties illegally.

Rent Smart Wales

The new registration and licensing scheme in Wales is a major change for the private rental sector. It requires all landlords and letting agents to register their properties and undertake training to gain a licence, should they intend on self-managing their investment.

Landlords and letting agents in the principality were given until last week to comply with the legislation, before it became an offence to either let or manage a property without the sufficient licence.

By the deadline, 89,130 online accounts had been created, with 64,248 licence registrations submitted. Another 13,208 applications but not finished.

Landlords in Wales facing fines for illegal lets

Delays

Carl Sergeant, communities secretary and minister responsible for overseeing Rent Smart Wales, acknowledged the registration system had seen delays. However, Sergeant said those who have started the compliance process would not face action-but said, ‘this must not be seen as an excuse to ignore the law.’[1]

In addition, he noted: ‘My message to private landlords is clear. You must take action to comply with the requirements of the law.’[1]

Registering as a landlord costs £33.50 if carried out online. On paper, this is £80.50, regardless of the number of properties an investor has in their portfolio.

Further information on Rent Smart Wales can be found on the Government website.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/thousands-of-landlords-could-face-fines-for-illegally-renting-out-properties

Many property investors failing to conduct gas safety checks

Published On: November 28, 2016 at 12:40 pm

Author: Em Morley

Categories: Property News

Tags: buy to let investors,carbon monoxide,gas safety,gas safety checks,investors

A concerning new report has revealed that hundreds of thousands of properties are at risk of a life-threatening gas incident. These could be linked to features such as a carbon monoxide leak, or failures with boilers, fires, radiators and cookers.

CORGI HomePlan, who carried out the survey, feel that many investors are failing to carry out potentially life-saving checks before buying property.

Concerns

The study found that only 10% of property purchasers considered it necessary to check the safety of a property before completing a purchase. 28% thought a full check was covered in the mortgage lenders’ survey.

Most commonly, new property owners overlook the working condition of their boiler, with 39% net getting a qualified engineer in to test it.

Worryingly, 70% of new property owners questioned said they did not know that new homebuyers can request a service record of all gas appliances-including boilers, central heating, cookers and fires.

Wales was found to be the safest area, with eight in ten respondents having a Gas Safe Registered engineer to assess their property before buying. On the other hand, Londoners were found to be least safety conscious, with just 38% of people in the capital following suit.

Many property investors failing to conduct gas safety checks

Reports

Kevin Treanor, director of CORGI HomePlan, said: ‘Buying a new home is an exciting time and one that often involves committing yourself to the limit of your finances. However, just as you wouldn’t commit to buy a property without seeing the surveyor’s report first, it is just as important that homebuyers also see the full service record of all gas appliances and have a Gas Safe registered engineer inspect the home too.’[1]

‘Carbon monoxide still kills around 50 people a year and every one of these deaths is avoidable. People must minimise the risks by making sure all their gas appliances are in full working order,’ Mr Treanor added.[2]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/11/lack-of-safety-checks-being-carried-out-by-property-investors

Broadband and Wi-Fi now essential for home buyers

Published On: November 25, 2016 at 9:58 am

Author: Em Morley

Categories: Property News

Tags: broadband,Buy-to-Let,investors,property,technology

The latest buyer survey from Knight Frank has revealed that a superfast broadband connection or good mobile connection are becoming essentials for would-be property purchasers.

In fact, these features have passed those such as a good view!

Technological advances

Oliver Knight, Associate at Knight Frank Research, noted: ‘In an age of Wi-Fi, tablets and streaming, it is unsurprising that fast and reliable internet access is seen as a necessity among home movers.’[1]

‘Technology improvements, including fast, reliable internet have meant that working from home is a viable option for many, potentially cutting down on both commuting time and costs. This is likely to be particularly relevant for buyers in more rural property markets,’ he continued.[1]

Alongside looking at what buyers prefer in their property search, the survey also investigates what impact the stamp duty surcharge has had on budgets.

Results show that while 47% of people would be more likely to purchase a property with good internet connectivity, 41% have reduced their budget due to stamp duty. 14% are planning to stay in their property longer as a direct result of the changes.

Broadband and Wi-Fi now essential for home buyers

Life quality

In addition, the survey found that quality of life was the top motivating factor for property buyers, followed by up or downsizing. 30% of those questioned said that their preferred location for their next home is in a city. 25% of respondents said they were looking in a village, while 19% preferred the country.

Security and privacy were unsurprisingly the most important considerations when buying a new property.

Oliver Knight concluded by saying: ‘The wholesale reforms to stamp duty announced in December 2014, and subsequent introduction of a 3% surcharge for individuals purchasing additional properties, have succeeded in making buyers more price sensitive, and this has been factored in to asking prices and offers.’[1]

[1] http://www.propertyreporter.co.uk/household/is-good-broadband-essential-for-a-good-view.html