Written By Em

Em Morley

The Rural Areas with the Highest Quality of Life in the UK

Published On: April 5, 2017 at 9:21 am

Tags: countryside,homebuyers,house prices,London,quality of life

Many people are moving out of cities, predominantly London, to improve their mental health, breathe cleaner air and enjoy a higher quality of life in general. But which rural areas are the best to move to in the UK?

The Rural Areas with the Highest Quality of Life in the UK

The 2017 Rural Areas Quality of Life Survey from Halifax reveals that the Orkney Islands are the best locations to settle down for a life out of the city.

The islands off the northeast coast of Scotland came out on top thanks to low crime rates, excellent, well-funded schools and the lowest anxiety levels.

Second place went to Wychavon in Worcestershire, which scored well on health, low pollution levels and well-paid employment, with the Derbyshire Dales, Hambleton in North Yorkshire and Purbeck in Dorset completing the top five.

An Economist at Halifax, Martin Ellis, comments: “With one of the lowest population densities and traffic levels in Scotland, some of the most stunning scenery in the British Isles, and the lowest levels of anxiety and highest life satisfaction ratings, the Orkneys offer a quality of life unmatched elsewhere in rural Britain.

“While the employment rate is significantly higher than the national average, there is more and more emphasis being placed on achieving a good work-life balance.”

Scottish island groups fared well overall, with the Shetlands and Western Isles also ranking in the top 50 rural areas to live.

While areas in the south of England appeared most frequently in the top 50, rural areas in the north of England scored better on education, lower house prices to earnings ratios, lower traffic flows and population densities.

In contrast, typically richer southern areas tended to do better for weekly earnings, the weather, health and life expectancy.

The benefits of living in southern rural areas come at a price, however, with the highest house price to earnings ratios in Tandridge, Surrey (11.3), Purbeck (10.8) and East Dorset (10.7).

The study’s findings also suggested that Londoners needn’t cut all ties with the capital to achieve a better quality of life, as 11 of the top 50 best rural areas to live are in the South East.

Commuter favourite Chiltern in Buckinghamshire – number seven in the rankings – scored highest for educational attainment, with 55% of the adults educated to a high level, compared with a national average of 36.5%. It also boasts some of the country’s largest homes.

Landlords, if you’ve decided against a London property investment due to high house prices and low rental yields, head to these rural areas to cater to those looking for a higher quality of life.

Confidence of property investors is high

Published On: April 5, 2017 at 9:03 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,buy-to-let landlords,property,property investors,tenants

A new report has indicated that confidence regarding investing in property is continuing to grow, with many buy-to-let landlords predicting a good year ahead for the UK housing market.

The survey from Shawbrook Bank discovered that 81% of landlords feel confident about the performance of their property portfolios in the coming year. Much of this optimism stems from improvements in the lending environment.

Demand

Tenant demand remains strong, with 30% of landlords questioned seeing an increase in the number of renters during the second half of 2016. In addition, half of all buy-to-let landlords have seen increases in income during the last twelve months.

It is also good news for the buy-to-let sector, with 66% of respondents saying that they plan on purchasing an extra buy-to-let property during the opening six months of 2017. This comes despite the numerous tax alterations and continuing uncertainty surrounding Brexit.

Confidence of property investors is high

Optimism

Karen Bennett, Managing Director of commercial mortgages at Shawbrook Bank, said: ‘Despite uncertainty surrounding Brexit, landlords are still optimistic about the performance of their portfolios. With Brexit negotiations officially underway, as well as recent changes to housing policy, it is encouraging that the market doesn’t seem to be slowing.’[1]

‘Following last year’s tax changes it’s clear that investors are still getting a feel for how the changes will affect them. It is also evident that landlords have made an effort to understand how these new policies affect they way they do business, although the fact that 19% of those asked have little or no understanding of these changes means there is still work to be done,’ she added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/4/property-investor-confidence-runs-high

Prime Central London Prices hit an All-Time High

Published On: April 5, 2017 at 8:11 am

Author: Em Morley

Categories: Property News

Tags: house prices,London,London property market,prime central london,property sales

Prime central London prices hit an all-time high at the end of last year, as buyer sentiment improved, reports London Central Portfolio (LCP).

Prime Central London Prices hit an All-Time High

Despite turbulence in 2016 as Brexit uncertainty and Stamp Duty changes affected the market, prime central London prices showed signs of growth in the fourth quarter (Q4) of 2016.

The year ended with prime central London prices at a record high. According to data from HM Revenue & Customs (HMRC), the average house price in prime parts of the capital exceeded £1.8m at the end of 2016 – the highest level on record and 2.7% higher than the previous peak in Q3 2014.

This was spearheaded by a rally in Q4. Despite declines in annual price growth in the first three quarters of the year, Q4 recorded a 14% rise in quarterly prices, bringing 2016 price growth to 3.75%.

Transactions, however, dropped to an all-time low. Compared with the previous year, sales were down by 29%, with just 3,330 taking place – equivalent to just 64 per week. This is the lowest number on record – lower even than the depths of the financial crisis.

However, there is a reason for optimism, says LCP. As with prime central London prices, sales numbers saw a marginal recovery in the final quarter of 2016. Q4 experienced a 19% increase in sales compared with Q3. This is notable, as it bucks the seasonal trend of volumes typically tailing off in the pre-Christmas period.

It is LCP’s expectation that transactions will continue to rise gradually as the initial shock of Brexit and tax changes wash through.

The renewed activity in the London market appears to have continued into 2017, as investors’ confidence returns and they take advantage of the softer market.

As an international buying market, the weakness in sterling has also drawn investors back to prime central London. Despite the fact that prices are 2.7% higher than in Q3 2014, they are still 20% cheaper for investors buying in US dollars.

Combined with the Trump-effect and increasing instability in Europe, it is expected that steady levels of price growth will be witnessed, as investors retrench to safe havens.

However, while LCP expects sales volumes to harden gradually as investors return to the market, the overall trend of falling transactions is likely to continue, it warns.

As more investors choose to hold onto their blue-chip assets, the number of prime central London sales has been shrinking annually. This is likely to continue, explains LCP, which will put further pressure on the imbalance between supply and demand, and underpin future growth for prime central London prices.

BTL product numbers for limited companies see substantial rise

Published On: April 4, 2017 at 1:11 pm

Author: Em Morley

Categories: Finance News

Tags: landlords,limited companies,limited company borrowers,mortgage interest tax relief

The most recent analysis from Mortgages for Business shows that Q1 of 2017, the average of products available to limited company borrowers rose by over a third.

This figure now stands at 266, with data indicating that the range and price of buy-to-let mortgages for limited companies is at record highs.

Choices

Lenders are now offering record choice to limited company borrowers, with limited company rates also increasing. The average three-year fix is now only 0.5% higher than similar products on the wider market.

Demand from investors show little sign of slowing. As limited company borrowers fall outside the jurisdictions of changes to mortgage interest tax relief changes, more investors are choosing to incorporate.

In Q1 2017, 77% of the total buy-to-let purchase applications are being made via a corporate engine, which again is a record high. This is in comparison to 69% of applications in Q4 of 2016 and only 21% before the 2015 Summer Budget, when the tax changes were announced.

BTL product numbers for limited companies see substantial rise

Appeal

David Whittaker, CEO of Mortgages for Business, observed: ‘With the changing face of the buy-to-let mortgage market, it is no surprise that lenders are keen to appeal to limited company borrowers. We have been recommending for some time that our clients seek professional tax advice to determine whether incorporation is the most suitable route for their circumstances and these figures can only further encourage landlords to consider their position.’[1]

The remortgage market has also seen a significant change in the opening quarter of the year. Data from Mortgages for Business shows that completions for limited company remortgages hit 30% of remortgage completions in Q1, up from 15% in Q4.

[1] http://www.propertyreporter.co.uk/business/ltd-co-btl-product-numbers-see-significant-boost.html

Is buy-to-let becoming less attractive?

Published On: April 4, 2017 at 8:43 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,buy-to-let landlords,landlords,mortgage interest tax relief,rental market

It is no doubt that the past year has been extremely challenging for buy-to-let landlords. The raft of changes, such as increased stamp duty, changes to mortgage interest tax relief and the pending ban on letting agent fees have all impacted on investors.

There is growing concern that a number of landlords will struggle to make a profit from renting out their property, leaving many with no alternative but to leave the sector.

Restrictions

This is a high concern, as the level of housing stock available for tenants is already not enough to cope with spiralling demand.

Indeed, there has already been a fall in the overall total of buy-to-let property transactions since the additional 3% stamp duty surcharge came into force last April.

ARLA Propertymark fear that the phasing out of mortgage interest tax relief from April 6^th will push landlords from the market.

However, the trade body feels it is still not too late for the Government to reconsider!

Is buy-to-let becoming less attractive?

Changes

David Cox, chief executive at ARLA Propertymark, observed: ‘It’s been a year since the government inflated Stamp Duty costs for landlords to 3%, and it’s already made the Treasury £1.3bn. That’s more than changes to mortgage interest relief, which are now in force, are expected to make in its first three years. This will only further squeeze the sector and make buy-to-let a less attractive investment for landlords.’[1]

‘Our monthly Private Rented Sector report shows that since the stamp duty reforms came into effect last April, letting agents have seen the supply of rental stock decrease. In February, 44% saw supply fall as a direct result, while only 9% saw it increase,’ he added.[1]

Costs

Concluding. Mr Cox said: ‘The impending letting agent fee ban will also make buy-to-let investment less attractive, as costs are passed on through inflated agents’ fees which landlords pay. A quarter [27% of landlords] are expected to stop increasing their portfolios as a result and a fifth plan to sell some of their properties. We’re facing a severe housing shortage at the moment, and if the supply of rental stock falls any lower relative to demand for housing, we’ll find ourselves in the midst of a real crisis.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/4/buy-to-let-is-becoming-a-less-attractive-investment-for-landlords-says-arla

UK Ideal Home Size among Largest in the World, Survey Reveals

Published On: April 4, 2017 at 8:36 am

Author: Em Morley

Categories: Property News

Tags: homebuyers,Homes,property market,property size,UK Property market

Real estate blog Point2 Homes asked 29,000 people from nine countries about their current and ideal home sizes, to get a global perspective on typical residences and home size expectations. According to the survey, Brits have the fourth largest homes on average among surveyed countries, but ideal home size expectations are even bigger.

The nine countries surveyed were the UK, the USA, Canada, Australia, France, Germany, Spain, Mexico and Brazil. Here are some key findings:

38% of British residents surveyed said their ideal home should exceed 2,501 square feet of space
Almost two thirds of UK respondents said their ideal home should be larger than the one they already live in
UK respondents have the same ideal home size expectations as respondents from Mexico and Australia
The UK and France are tied when it comes to the average current home size– between 1,500 and 1,600 square feet

The expectations of British respondents may come as a surprise, considering that Americans, Canadians, and particularly Australians are the ones better known for their love for large homes. However, considering that the average Canadian home is over 200 square feet larger than the British equivalent, American homes are 400 sq. ft. larger, and Australian homes 500 sq. ft. larger, the Brits’ desire for more room makes sense.

UK Ideal Home Size among Largest in the World, Survey Reveals

Britain in 4^th place for average home size

The answers tallied during the survey show great diversity, both in terms of home sizes and expectations. Australia, for example, has the largest homes by far, but also wants the largest homes. Brazil, on the other hand, has the smallest average home size among surveyed countries, while expectations here are mostly reasonable.

At 1,590 square feet, British homes are larger than those in other European countries, like France, Germany, or Spain. In fact, the UK comes closest to entering the top three countries with the largest homes among the nine surveyed, behind Canada by only 10%. The US and Australia are in a league of their own, with average home sizes hovering around 2,000 sq. ft.

Britain in 1^st place for largest ideal homes

However, the ideal home size is a different story, as residents of some countries simply like to dream big. Here, the UK is in the lead, with the biggest gap between average actual home size and ideal residence. 38% of Brits surveyed think the ideal home should be over 2,501 sq. ft. in size.

23% of responders in the UK say their ideal home would be larger than 3,000 square feet. Only Australians come close, with 21% of respondents stating that their ideal home would be at least 3,000 sq. ft.

The Australian’s homes surveyed are 2,032 sq. ft. on average, but most respondents think homes of over 2,501 sq. ft. would be ideal. Oddly enough, residential developers down under are building smaller homes, while recent reports in Britain show that the average size of a newly built home has been increasing since the 1990s.

Mexico isn’t far behind in terms of lofty home size expectations, as 32% of respondents stated that their ideal home size should exceed 2,501 square feet.

Brits enjoy little individual personal space, driving preference for larger homes

Brits enjoy little individual personal space, driving preference for larger homes

While average home size is an important metric, according to a report by the Royal Institute of British Architects (RIBA), property listings in the UK focus much more on the number of rooms in a house. Why? Because individual personal space is perhaps more relevant to homebuyers than total house size.

“Unlike in many other countries, homes are marketed by the number of bedrooms rather than floor space. This idiosyncrasy of the UK housing market means that space is not easily understood or translated into any meaningful information for consumers,” states Rebecca Roberts-Hughes, author of the RIBA report.

Divide the average UK home size by the average number of family members among respondents, and the result is 454 square feet per person. This figure places Britain among the countries with least individual living space.

Brits still have more breathing room in their own homes than Spaniards, Mexicans or Brazilians. Germans, on the other hand, may have smaller homes, but the survey data shows that they also have smaller families on average, which gets them more space per person than the French or the British.

The survey results also highlight the differences between what is typical in European countries, and what is typical in countries from the Americas and Australia. Generally, the latter tend to build larger homes. Among the European countries surveyed, Britain still reigns supreme in terms of home size. Ultimately, the survey shows that Brits are the biggest dreamers of all.

Methodology

The Point2 Homes survey was made in Google Surveys and distributed to users via the Point2 Homes real estate platform and many other real estate websites in all surveyed countries, in the form of an optional pop-up. Point2 Homes analysts tallied and correlated the answers in-house.