Written By Em

Em

Em Morley

Landlords Warned about using Gumtree on Nightmare Tenants, Slum Landlords

Published On: March 15, 2017 at 9:38 am

Author:

Categories: Landlord News

Tags: ,,,

Landlords are being warned about using Gumtree ahead of tonight’s episode of Nightmare Tenants, Slum Landlords on Channel 5.

The second episode of the third series airs tonight (Wednesday 15th March) at 9pm on Channel 5. It explores the fallout one landlord faced after deciding to let her property through Gumtree.

Landlords Warned about using Gumtree on Nightmare Tenants, Slum Landlords

Landlords Warned about using Gumtree on Nightmare Tenants, Slum Landlords

Despite not knowing much about how Gumtree works, Vicki McNaught decided to list her property on the site, as it was a cheaper alternative to using a letting agent.

Initially, McNaught was delighted when a young professional moved into the flat, promising to look after the place. He boasted of a private eduction and his references showed off a great career in the City. But it didn’t take long before he stopped paying the rent.

Looking back, McNaught would do things very differently. She says: “We’ve learnt that bad tenants are more likely to target sites like Gumtree because they hope they will be subjected to fewer checks. In the future, we’d always go through an agent – although even this has no guarantee. It’s the law that needs to change to make landlords less vulnerable to unscrupulous tenants.”

Paul Shamplina, the Founder of Landlord Action and Brand Ambassador of Hamilton Fraser, who stars in the show, knows these situations all too well.

He comments on the case: “This guy is a serial bad tenant. He has been evicted previously after running up costs of £30,000 in unpaid rent and stolen furniture from an overseas landlord. In Vicky’s case, he used false references to secure the property.”

Shamplina wants the episode to act as a serious warning to landlords about using free classified websites, such as Gumtree, to advertise their property to let.

He says: “We’ve come across many similar cases in the past where we see serial bad tenants prey on less experienced landlords who let their properties on consumer websites. Unfortunately, the majority of these landlords are deceived by well-educated con artists. With absolutely nothing in place to safeguard landlords, they find themselves in all sorts of trouble.

“My advice would always be to use a credited letting agent who can let your property through the correct procedures and are up to date with all legislation in the private rented sector. However, for any landlords already using such sites, then you need to be careful. Ensure you have thorough referencing checks done and look out for the telltale signs of a serial bad tenant. For example, are you being rushed by the tenant for them to move in as soon as possible?”

Nightmare Tenants, Slum Landlords is a 12-part series on Channel 5. The programme delves into the dark side of the lettings market, showing the struggles landlords and tenants face on a daily basis.

How You Can Add £200,000 to the Value of your London Property

Published On: March 15, 2017 at 9:12 am

Author:

Categories: Property News

Tags: ,,,,,,

Two architects have added £200,000 to the value of their London property by completely overhauling the former bedsit. And although they don’t advise anyone to live in the home while transforming it, it could be a good project for landlords…

Gary and Claire Tynan found it difficult to save for a home of their own while renting in north London, and originally planned to build their own property on a plot of land. However, this option was beyond their budget, so they decided to do up a flat instead.

The Canonbury bedsit they remodelled is 1,000 square feet and part of a 1870s historic building.

Having transformed it into a modern masterpiece, the pair has added £200,000 to the value of their home.

So how did they do it, and how can you too?

Open plan 

The biggest change is the open plan living room, which now takes up half of the whole flat. Divided by a huge partition, the space includes a living, dining and kitchen space.

The design is stylish, smart and practical, with lots of ideas on how to split the space and encompass storage, which is always a winner with tenants/buyers.

Although the building had a quirky warehouse feel that the couple liked, the kitchen was tired and old-fashioned. Reworking the living area into a spacious and practical space with monochrome finishings completely altered the feel of the home.

The bathroom 

The bathroom was particularly bad when the pair bought the property – the grout was mouldy and the joists were rotting. But the couple acknowledged that it was light and had potential.

Sorting out the plumbing was particularly important, as the pair moved into the home while they were working on it. After sorting out the bedrooms, they tackled the “revolting” bathroom.

Ensuring a property has a contemporary, clean and practical bathroom is essential – it is almost as important as the kitchen when adding value to a home, so it’s worth investing in some quality fixtures and fittings.

Bedrooms

Although the flat is in a conservation area, you don’t need planning permission for most internal work (although you must check!), so adding in another bedroom was an easy decision.

The Tynans purchased the property in January 2016 and were already expecting a baby. This made having a third bedroom a priority, so they added a small nursery off one of the two main bedrooms.

Generally speaking, the more bedrooms you can offer a potential buyer/tenant, the more money they are willing to spend. But you must ensure that the space is actually big enough to be a bedroom and will be financially viable for you.

Design features

With a keen eye for detail, the architects have created a completely modern and metropolitan feel. Predominantly black and off-white, the property is a blank canvas that can be adapted as their family and tastes grow.

The most important aspect of the design to incorporate into your own investment is the simplicity. Not only is simple design currently very on trend, but it is also timeless and elegant – and shouldn’t cost too much money.

Taking the couple’s key themes on board, you can make essential changes to your property investment that will prove lucrative – both in terms of the rental income you can receive and capital growth potential.

Have you been inspired?

Investment in prime residential London market stays strong

Published On: March 14, 2017 at 2:54 pm

Author:

Categories: Property News

Tags: ,,

The prime residential market in London is continuing to attract many investors, according to independent property buying agency Black Brick.

Increased bidding, falling asking prices and a weaker pound are leading to investors staying on in this market.

While negative forecasts suggest that property prices in the prime area of London will fall, levels of demand continue to soar. This in itself paints a positive picture for the future of the market.

Positivity

There are a number of signs to suggest that home price growth will move forwards in this region. A strong economy, an influx of foreign buyers, dwindling unemployment, record-low interest rates and the housing shortage are but a few.

Camilla Dell, managing partner of Black Brick, observed: ‘In the first quarter of 2017, we have seen activity in the prime London residential market pick-up significantly, particularly at the upper end, which has been subdued for some time.’[1]

‘We are also seeing a return of competitive bidding across the spectrum, particularly on property that is priced correctly and in line wit the current market,’ she continued.[1]

Investment in prime residential London market stays strong

Investment in prime residential London market stays strong

Dell also noted that gazumping is also returning to the market.

‘It can be very difficult for buyers to know where the value lies especially in new developments were there can be a wide range of asking prices. To understand the market, a buyer needs to do their research,’ she continued.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/3/investment-demand-in-prime-central-london-continues-to-rebound

Purchase activity at lowest level since February 2015

Published On: March 14, 2017 at 11:34 am

Author:

Categories: Property News

Tags: ,,,

According to the most recent data released by CML, the number of loans advanced for house purchases in January slipped to its lowest monthly total since February 2015.

Remortgaging activity however continued to increase- rising by 54% by value and 46% by volume in December. In addition, home buyers borrowed £8.4bn in January, down 28% on December but unchanged year-on-year.

Buy-to-let increases

In terms of buy-to-let, there were increases, with values up by 11% and volume by 12% In comparison to 2016 however, both the number of loans and amount borrowed fell by 16%.

On a seasonally-adjusted scale, month-and-month changes in first-time buyer and home mover activity was marginal. First-time buyer lending increased 2% by value with the number of loans dropping by 2% in comparison to December.

Paul Smee, Director General of the CML, commented: ‘January gives the impression of a flattish market overall, albeit one with a resurgent remortgage sector. We expect a seasonal dip in activity in the winter months and this appears to be the case in January. However, the lull in moving activity appears stubbornly persistent and we have commissioned research on the reasons why the number of transactions seems in secular decline.’[1]

‘Buy-to-let house purchase activity continues to be weak, despite strong buy-to-let remortgage levels. This will likely remain so going forward as lenders tighten affordability criteria ahead of the PRA mandated stress tests and the introduction of tax changes in April,’ he continued.[1]

Purchase activity at lowest level since February 2015

Purchase activity at lowest level since February 2015

Resilience

Jeremy Leaf, north London estate agent and former residential chairman of RICS, said: ‘While there is little change month-on-month, the figures are encouraging because they demonstrate market resilience – which is what we are seeing at the coalface. Encouragingly, we have noticed a bit of a pick-up in activity over the past few weeks as buyers and sellers seem to be getting on with it as they usually do at this time of year.’[1]

‘Listings are improving but property must still be very compelling in terms of price, location and presentation – or all three – in order to gain attention from increasingly discerning buyers,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/house-purchases-fall-to-lowest-levels-since-2015.html

10 First Time Buyer Hotspots in London that make Great Investments

Published On: March 14, 2017 at 10:56 am

Author:

Categories: Landlord News

Tags: ,,,,

Wherever first time buyers are heading, that’s usually where landlords can secure a great investment opportunity. As such, London estate agent Portico has highlighted ten first time buyer hotspots where landlords can receive high tenant demand and strong yields:

  1. Walthamstow

Walthamstow is a vibrant and thriving postcode that is rapidly redeveloping. Fashionable cafes and independent shops are popping up constantly, and first time buyers are flocking to this part of Zone 3, conveniently located at the end of the Victoria Line.

Property here is excellent value for money, with the average flat costing around £300,000.

  1. Peckham

The fictional home of Del Boy and Rodney Trotter is now a hipster paradise, with rooftop bars on top of multi-storey car parks, anti-chain restaurants and affordable properties.

The average price of a one-bedroom property stands at a reasonable £350,000, although you could secure an ex-council home for around the £250,000 mark.

  1. Finsbury Park

With house prices in London at an all-time high, a lot of first time buyers are turning away from the more expensive parts of the capital – like central Islington – in favour of cheaper yet well connected postcodes, like Finsbury Park. It’s just a couple of stops from King’s Cross, so it’s ideal for commuters.

In fact, there are many good value pockets of north London that are attractive to buyers and tenants, such as Holloway, Caledonian Road and Stoke Newington.

  1. 10 First Time Buyer Hotspots in London that make Great Investments

    10 First Time Buyer Hotspots in London that make Great Investments

    Wandsworth 

Average house prices in the Battersea area are high compared to other parts of the capital; it’ll set you back around £485,000 for a one-bedroom property. But that doesn’t stop Wandsworth in Battersea being an extremely desirable place to call home.

The average age of a first time buyer in London is edging closer to 40, and that fits the demographic of this area – young professionals in their 30s looking for two-bedroom properties, great schools, a middle class feel, open space and fantastic amenities.

  1. Bethnal Green 

Huge numbers of buyers are heading to Bethnal Green in search of warehouse conversions, quirky properties and a young, trendy vibe.

This east London location is also already popular with landlords, as rental yields are high (around 5.3% near Bethnal Green station) and demand from tenants is strong.

  1. Acton/Ealing 

Crossrail will soon be launching in Acton, making it an excellent choice for young first time buyers and tenants who work in the City or West End.

As well as an imminent transport upgrade, the W3 postcode offers period property and a quaint village feel – perfect for those thinking of starting a family. There is also a string of healthy brunch spots, bakeries and traditional pubs to enjoy on the lively Churchfield Road.

  1. Stoke Newington

Stokey, as it is affectionately called by locals, has come on leaps and bounds in terms of regeneration over the last five years, with a large number of new apartments popping up to accommodate growing demand.

First time buyers are attracted to the Victorian property stock, the arty, creative vibe and the village feel. There’s a farmer’s market on the high street at the weekend, and shops are brimming with indie labels and vintage finds.

  1. Leytonstone 

If you’re looking for a fantastic investment, Leytonstone will not disappoint.

Still revelling from the Olympic effect, Portico expects house prices in affordable Leyton to continue rising this year, so your property investment could get a big boost from both cosmetic renovation and capital growth.

  1. Tottenham

Crossrail has powered Tottenham’s popularity and regeneration, transforming the area into an up-and-coming hotspot.

And with journey times of just 15 minutes into central London, the area is slowly becoming a firm favourite with those looking for value and space for their money.

  1. Ilford

Ilford is one of the best value areas in London and, although house prices have been rising since the announcement of Crossrail, the average price of a two-bedroom property is still an extremely reasonable £280,000.

Better still, buyers looking at this part of east London can jump straight into a house rather than a flat – this will also appeal to tenants, making it a great investment hotspot.

Are you looking at any of these areas for your next buy-to-let property?

Four in ten properties in London possess no outdoor space

Published On: March 14, 2017 at 10:20 am

Author:

Categories: Property News

Tags: ,,,

Those looking to purchase in London will likely be disappointed if they want a property with a garden.

New research from online estate agents HouseSimple.com reveals that four in ten properties on the market do not have an outdoor space.

Gardens

Rather unsurprisingly, there are only a few gardens located in Zone 1 regions of London. Just a third of properties on the market in Tower Hamlets possess an outdoor space.

Buyers are much more likely to find properties with an outdoor space in the boroughs towards the outskirts of the city. In Bexley and Bromley for example, there are 85.4% and 84.2% of properties respectively with garden space.

The table below shows the best and worst London boroughs in terms of properties listed with and without a garden or outdoor space:

Borough Total properties on the market % of properties on the market with a garden
Tower Hamlets 2944 34.4%
City of Westminster 3441 38.4%
Hackney 1258 39.7%
Islington 1382 41.0%
Camden 2194 45.7%
Bexley 526 85.4%
Bromley 1448 84.2%
Havering 695 82.7%
Hillingdon 1353 81.1%
Redbridge 1021 79.6%


What about the rest of the UK?

Across the UK as a whole, 31.4% of properties on the market do not have access to a garden. Interestingly, three out of the five worst UK towns and cities for outside space are in the North West.

Analysis of the top 10 UK cities with the largest populations, Liverpool (59.6%), London (60.5%) and Manchester (62.8%) all rank lowest in terms of properties coming onto the market with gardens.

Bristol on the other hand possess 80% of properties listed with gardens or outdoor space.

The table below indicates the top 10 major UK cities in terms of population size and percentage of those that possess a garden or outdoor room:

Town/City Region Total properties on the market % of properties on the market with a garden
Liverpool North West 5686 59.6%
London South East 54013 60.5%
Manchester North West 2101 62.8%
Glasgow Scotland 1730 68.5%
Bradford West Yorkshire 1436 71.0%
Leeds West Yorkshire 1774 75.0%
Birmingham West Midlands 2965 76.7%
Sheffield South Yorkshire 1415 77.5%
Edinburgh Scotland 857 78.5%
Bristol South West 1387 79.6%
Four in ten properties in London possess no outdoor space

Four in ten properties in London possess no outdoor space


Squeeze

Alex Gosling, CEO of online estate agents HouseSimple.com, said: ‘With the need to build more homes in the UK and space at a premium, we could well see fewer and fewer new build properties with private gardens. Even new build family homes rarely come with the expansive back gardens you might have seen 30 to 40 years ago.’[1]

‘In heavily populated areas, developments are squeezed in and the reality is that private gardens takes up valuable square footage. Hence, we are likely to see more modern block of flats to meet housing demand and the outside space will inevitably be sacrificed,’ he continued.[1]

Concluding, Gosling noted that: ‘The death knell hasn’t been sounded for the back garden. There are plenty of towns, such as Grimsby, Crawley and Southport, where the majority of properties have private outside space. And moving further away from major cities, you’re more likely to find houses not flats and the large back garden you’re craving.’[1]

[1] http://www.propertyreporter.co.uk/property/4-out-of-10-properties-on-the-market-in-london-have-no-outside-space.html