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Em

Em Morley

Top Tips to Choosing the Right Flooring for your Rental Property

Published On: March 29, 2017 at 9:38 am

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Flooring can have a huge impact on first impressions of a rental property, so it’s vital that landlords get it right when replacing the flooring.

Portico has put together some top tips on choosing the right flooring for your rental property:

Consider the property’s use

Top Tips to Choosing the Right Flooring for your Rental Property

Top Tips to Choosing the Right Flooring for your Rental Property

The first step to choosing the right flooring is to consider who will be living in your property. If your target tenant type is families, for example, you should avoid flooring that can’t be easily refinished, or could be ruined by a loose crayon or dirty fingers. Portico recommends vinyl or laminate flooring for high-traffic areas, as these flooring types can withstand heavy foot traffic much better than most others. You could also opt for non-slip wood-effect tiles, which are easily maintained, stylish and affordable.

If you have fewer tenants living in your property, you have greater freedom with the flooring, so you could consider more stylish choices of tile, as they’re less likely to be damaged and can improve the property’s appearance.

Think room-by-room

Certain flooring types are best matched to particular rooms so, when changing flooring for an entire property, you should think on a room-by-room basis. When it comes to kitchens, bear in mind the type of material that is easiest to clean and won’t need to be replaced every time you get a new tenant.

Natural stone floor tiles look great in kitchens and will also give tenants a blank canvas when it comes to matching the appliances and room décor. There is also a range of designs and colours to choose from, which gives you the chance to build up the room’s style from the ground up. Tiles are also the obvious choice for bathrooms, as they’re waterproof, durable and easy to maintain.

If you’re avoiding carpets in a bid to avoid having to replace flooring too regularly, bedrooms will benefit from engineered or hardwood flooring for extra warmth and homely comfort. Living rooms are very much dependant on tenant type, as properties with more people will require more durable flooring, so Portico suggests hardwood flooring, as it won’t need to be updated every time your property is up for let.

Avoid the obvious pitfalls 

Certain flooring types are a definite no-no, with 14% of tenants saying that carpet in the bathroom would instantly put them off a property. Other pitfalls include installing wooden flooring in wet rooms, light coloured carpets in hallways, or installing the flooring yourself without experience or guidance. All of these mistakes can cost you time, money and tenants, so make sure that you consider all potential pitfalls before rushing into buying your flooring.

With flooring playing such an important role when it comes to property viewings, it pays to make sure the flooring types you choose are well suited to your rental property.

Follow these top tips and build your property appeal from the bottom up!

UK prime yields continue to fall

Published On: March 29, 2017 at 8:43 am

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The average prime UK yields fell to 4.79% in February, with Britain now in its longest consecutive period of decreasing yields for three years.

Looking at activity levels for the first three months of the year, investment volumes are on course to break £9.8bn. This is partly to do with the sale of a number of so-called trophy property assets throughout Britain, according to a new report from Savills.

Falls

The latest Market in Minutes report from the firm indicates that yields in the city office market fell to 4% in February, as a result of declining supply and sustained demand.

Mark Ridley, CEO of Savills UK and Europe, noted: ‘We are currently seeing steady investment volumes across all markets, but one of the biggest barriers to liquidity is the lack of investment stock currently being considered for sale.’[1]

‘With very little speculative development in the office or logistics sector and continued occupational demand, pre-let fundings or refurbishment opportunities will push investment volumes forward,’ he continued.[1]

UK prime yields continue to fall

UK prime yields continue to fall

Overseas

In addition, yields are sliding in the South East and regional office markets, currently 5.25%. This is thanks to greater activity by overseas investors, who made up 29% of the total regional investment volume in 2016. This was the highest level since 2012.

Kevin Mofid, director in the commercial research team at Savills, commented: ‘Overseas investors have been increasingly active in the UK’s regional markets, with European buyers, particularly those from Germany, being especially busy.’[1]

‘Investors are set to continue to focus on the regions for the foreseeable future as total returns in some regional office markets are predicted to outperform many central London sub-markets over the next three to four years,’ Mofid added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/3/uk-prime-yields-continue-to-sharpen

 

First Time Buyers Increasingly Relying on the Bank of Mum and Dad

Published On: March 29, 2017 at 8:31 am

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A record number of first time buyers are relying on the bank of mum and dad to buy their own homes, according to a new report from the Social Mobility Commission.

First Time Buyers Increasingly Relying on the Bank of Mum and Dad

First Time Buyers Increasingly Relying on the Bank of Mum and Dad

The study found that 34% of first time buyers use loans or gifts from family members to fund their purchases, up from 20% seven years ago.

The findings arrive as researchers from the University of Cambridge and Anglia Ruskin University found that homeownership among 25-29-year-olds has dropped by more than half in the last 25 years, from 63% in 1990 to 31%.

The Rt Hon Alan Milburn, the Chair of the Social Mobility Commission, says: “The way the housing market is operating is exacerbating inequality and impeding social mobility.

“Owning a home is becoming a distant dream for millions of young people on low incomes who do not have the luxury of relying on the bank of mum and dad to give them a foot up on the housing ladder.”

The researchers expect the number of first time buyers to climb slightly in the short-term, before declining gradually over the next 25 years.

The report also shows that first time buyers who receive money from the bank of mum and dad can become homeowners 2.6 years earlier than those who fund their purchases themselves. In London, this rises to 4.6 years.

One in ten existing homeowners also use loans and gifts from family members to buy new homes, while another 9.6% use inheritance to fund a purchase.

Last year, Legal & General said that the bank of mum and dad was lending £5 billion a year to help their children onto the property ladder, lending an average of £17,500. The amount lent every year puts it in the top ten of mortgage lenders.

The Social Mobility Commission, which is an advisory public body, has urged the Government to build three million homes over the next decade – a million of which should be constructed by the public sector. It added that to hit these targets, homes should be built on the greenbelt.

Another recent study found that young people believe they can only afford to buy their own home if they have a partner: /young-people-impossible-buy-alone/

Article 50 will be Triggered by Theresa May Today

Published On: March 29, 2017 at 8:12 am

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Article 50 will be Triggered by Theresa May Today

Article 50 will be Triggered by Theresa May Today

Theresa May is due to send the UK’s Article 50 letter today (Wednesday 29th March), which will commence Brexit negotiations that could last up to two years.

It comes after months of discussions in the House of Commons and protests across the country.

May got the bill, which authorises the Government to trigger Article 50, through Parliament earlier this month after facing resistance from the House of Lords and MPs.

One of the Lords’ amendments sought to guarantee the rights of overseas EU nationals living in the UK.

The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, explains what he thinks the triggering of Article 50 will mean for the UK property market.

He says: “As the UK prepares to separate from the EU following the triggering of Article 50, it will be business as usual as far as the property market is concerned. Despite the high levels of uncertainty in the market, property values have continued to show signs of positive growth in 2017, and this will only strengthen as time goes on.

“Brex-angst around leaving the EU has caused uncertainty in the market, but the cooling rate of price growth over the end of last year has without a doubt been influenced more by the increases to Stamp Duty and second home tax, with both playing considerable roles in impacting the market.”

He adds: “With the initial Brexit fears now starting to subside and property values continuing to increase on both a monthly and annual basis, UK homeowners should rest assured that the market remains one of the most resilient in the world.”

We will continue to keep you up to date with the impact of Article 50 on the UK’s property market at LandlordNews.co.uk.

How do you feel about Article 50 being triggered by Theresa May today?

Brexit uncertainty prompts decline in UK property activity

Published On: March 28, 2017 at 1:18 pm

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Home buyer demand has seen a slow recovery from initial Brexit uncertainty. Now, there are only 24 hours to go until the Prime Minister plans to trigger Article 50, in what is set to be a historic day for Britain.

A new YouGov poll for HomeOwners Alliance and warranty provider BLP Insurance has discovered than over one million people have put off plans to move this year because of Brexit uncertainty.

Brexit

The housing market in Britain has slowed during the past 12 months, against a backdrop of political and economic uncertainty. This is attributed somewhat to the outcome of the EU referendum, with 15% of people saying that they had postponed moving plans for this year. One in six cited Brexit as a main reason.

650,000 people were found to have been deterred from moving due to higher stamp duty rates.

Other main reasons for putting people off moving or from buying a home were:

  • Rising property prices-26%
  • Living costs-25%
  • Difficulty in obtaining a mortgage/re-mortgage-25%

Those in the North East (27%) and Northern Ireland (21%) were most likely to have cancelled plans to move since the vote.

Brexit uncertainty prompts decline in UK property activity

Brexit uncertainty prompts decline in UK property activity

Uncertainty

Paula Higgins, chief executive of the HomeOwners Alliance, said: ‘With the Government preparing to trigger Article 50 this week, we expect further uncertainty in the market until the UK’s future relationship with Europe is more clearly defined.’[1]

‘The Government could help to ameliorate the situation, by looking again at stamp duty. It remains stubbornly high and acts as a drag on the market. Reducing the burden for genuine owner-occupiers could really help to keep the market moving in these uncertain times,’ she added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/3/brexit-uncertainty-prompts-sharp-fall-uk-property-sales

 

Southeast London set for Transport Boost, Creating Investment Hotspots

Published On: March 28, 2017 at 10:11 am

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If you’re planning a future property investment, it pays to know about upcoming transport plans and improvements. Those considering the capital should look to southeast London, where a transport boost is planned.

So where are the key investment hotspots in southeast London?

£220m investment in Beckenham, South Norwood and Lewisham 

The Mayor of London, Sadiq Khan, is handing out a huge £220m for local transport and regeneration improvements in southeast London.

Southeast London set for Transport Boost, Creating Investment Hotspots

Southeast London set for Transport Boost, Creating Investment Hotspots

Several major projects have been outlined to begin in 2017/18, including a £1m refurbishment of Beckenham town centre, creating greener and safer cycle paths in South Norwood, plus improving the junction of Sangley and Sandhurst Road in Lewisham.

The Sales Manager of Portico London estate agent, Tony Chryseliou, comments: “The Mayor’s plans will certainly improve southeast London’s desirability as an up-and-coming place to live.

“We’ve seen house prices in central London reach an inconceivable peak in the last few years, causing many people to reassess just how centrally they need to live. Subsequently, areas like Beckenham and Lewisham are starting to appeal to a much wider range of buyers – and there’s still room here for price growth too.”

This pocket of southeast London is an attractive buy-to-let hotspot too, with investors still keen to secure property investments in the area, despite higher Stamp Duty and forthcoming tax changes.

Landlords can find a strong 4% yield in Beckenham, with certain areas even higher, such as Wickham Road at 4.3%.

And yields are even higher in Lewisham, where landlords can secure a 4.5% yield in the area around Lewisham and Ladywell Station, and a 4.8% yield in the Deals Gateway area around Deptford Bridge Station.

In comparison, landlords looking to invest in central London can expect much lower yields of around 3%.

Extending the Bakerloo Line

Southeast London’s popularity is already on the rise, and Transport for London is now proposing an extension of the Bakerloo Line beyond Elephant and Castle to Lewisham, serving Old Kent Road and New Cross Gate.

The new route would include four new stations – two on the Old Kent Road, another at Lewisham, and one more at a key interchange at New Cross Gate.

If the scheme is given the go-ahead and funding is secured, construction could start in 2023, with services aiming to be running by 2028/29 – so there’s a fantastic long-term opportunity for investors here.

Will you be looking to southeast London for your next investment?