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Em Morley

Housebuilder Records Strong Customer Confidence as House Sales Rise

Published On: February 28, 2017 at 10:09 am

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Housebuilder Taylor Wimpey has recorded strong customer confidence over the past year, as house sales rise.

In its latest statement, the firm insists that it has made a very good start to the year, and is encouraged by robust trading and levels of demand. UK housing market fundamentals remain strong, says the builder, with solid customer confidence.

Housebuilder Records Strong Customer Confidence as House Sales Rise

Housebuilder Records Strong Customer Confidence as House Sales Rise

The property market is underpinned by a competitive mortgage market and low interest rates, reports Taylor Wimpey. It has seen customer interest remain high over the past year, with solid website visits and customers continuing to register interest in forthcoming developments and progress their home purchase plans.

Nevertheless, it has witnessed a softening in the prime central London market, despite the wider London market remaining stable, although house prices are steady and there are good levels of underlying demand.

With high customer confidence, Taylor Wimpey’s net private sales rate for the year to date has increased to a very strong 0.91 (up from 0.77 last year).

The firm is continuing to focus on building a strong order book. As of February, it was around 49% forward sold for private completions in 2017, with a total order book value of £1,978m. This represents 8,573 homes.

The housebuilder has commented on the Government’s release of its Housing White Paper earlier this month, which it claims recognises the importance of housing to the UK and the part all housebuilders can play in the economy.

Although it is awaiting further details of the measures included in the document, the firm welcomes the plans, which it believes are balanced and aim to sustainably increase the delivery of much needed homes.

Considering last year’s EU referendum, Taylor Wimpey insists that the early signs of stability and resilience of the market following the vote have continued and have reduced any short-term risks.

In line with its strategy, the firm will continue to closely monitor market risks, particularly around long-term mortgage costs. Nonetheless, it believes that a cautiously regulated market and low interest rate environment is likely to prolong the period of stability that we are seeing in the UK property market.

The housebuilder reports that it has a clear strategy and a strong focus on where it can add further value to the business. As such, it is confident that it can adapt to all market conditions from a position of strength and perform well.

The Chief Executive of the housebuilder, Pete Redfern, says: “In 2016, we delivered an excellent performance set against an uncertain political and economic environment that stabilised in the final quarter. The outlook for 2017 is for ongoing stability and incremental price growth, which is a healthy backdrop for our business and our customers.”

MP slams new scheme aimed at helping slum landlords

Published On: February 28, 2017 at 9:47 am

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A new scheme designed to assist landlords with housing repairs in Peterborough has been slammed by a local MP.

Writing in his Westminster Life column in the Peterborough Telegraph, Stewart Jackson MP took aim at Peterborough City Council’s initiative to deal with so-called slum landlords. The scheme plans to assist these landlords with housing repairs using £1.2m of public money from the capital budget.

Scathing

In his article, Jackson wrote:

‘Yes – these are landlords currently collecting rents for tenants already living in their substandard or dangerous properties – but who apparently cannot afford to repair and maintain their own properties properly or meet the appropriate regulatory and licensing arrangements.’

‘Apparently, we’re meant to be sympathetic to these folk who take issue with a basic requirement not to allow a property to be “seriously overcrowded!?!” 900 of them lacked gas safety certificates and worse. That’s YOUR money which could build new homes or give local working families a lift up by paying their deposit on a new house via rent or mortgage.’

‘Scrub that. I do know what I think. It stinks.’[1]

Disgrace

Mr Jackson said he thought it was a disgrace that landlords expect the taxpayer to foot the bill for these improvements.

Continuing, he noted:

‘Am I missing something? I think the technical term is more hazard. What message does it send to good and ethical landlords in our city who presumably have to pay for the upkeep of their own properties which after all are their own capital assets? Isn’t it completely undermining the whole point of the licensing scheme, if we choose to reward slum landlords (at average £3,500 a pop) and allow them to stay and continue to ply their dubious trade in the lettings market?’[1]

MP slams new scheme aimed at helping slum landlords

MP slams new scheme aimed at helping slum landlords

‘Peterborough City Council thinks what we need is a lot of carrot but where’s the stick eh? Aren’t we embarrassed that our city has recently featured on Channel 5’s “Britain’s Rogue Landlords”? Why aren’t these people in court? Why are they not named and shamed? Why are their tenants more deserving than the hundreds on the housing waiting list to whom the money could be better directed.’[1]

Wrong Turn

Concluding, Mr Jackson called for a reconsideration:

‘We need to know why paying out this cash will allegedly drive up health outcomes more than say allowing young couples to buy these houses and convert them at their own expense, thus improving the residential neighbourhoods?’

‘Are the applicants for this programme (dodgy landlords) self-selecting and what methodology has been used to assess their merits? How will the legal agreements and loan arrangements be prepared and at what cost? What pressure has been exerted on council officers? Why hasn’t this policy been properly debated by the City Council Cabinet?

‘I fear that the council has taken a wrong turn and is failing to deal with the fundamentals.’

‘They are either committed to cleaning up slum tenancies and protecting tenants and improving neighbourhoods or they’re not.’

‘They need to reconsider this policy before it goes any further.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/mp-slams-subsidy-for-slum-landlords

 

Fewer Tenants Recorded per Rental Property in Key London Zones

Published On: February 28, 2017 at 9:26 am

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Fewer tenants have been recorded on average per rental property in key London zones, according to letting agent Foxtons.

Fewer Tenants Recorded per Rental Property in Key London Zones

Fewer Tenants Recorded per Rental Property in Key London Zones

The agent’s London Lettings Report, which analyses 20,000 active tenancies across the capital, shows that tenant demand dropped slightly in the third quarter (Q3) of last year following the Brexit vote, pushing the average down to 5.3 renters per property in Q4, compared with 6.2 year-on-year.

Foxtons reports that this is close to the average number of tenants recorded per property between 2013-15.

The research also found that rising rental property stock is pulling rent prices down across all the London Underground zones.

Average room rents dropped from £560 to £535 in Zone 1, from £469 to £453 in Zone 2, and £395 to £375 in Zones 3-6.

The firm has also discovered a drop in longer-term tenancies, with 35% granted for two years or more last year, compared with 41% in 2015.

The Private Rental Sector Director for Foxtons, Sarah Tonkinson, comments on the findings: “We see the policies set out in the Housing White Paper as a positive start to increasing availability of affordable homes and improved lettings conditions for renters.

“The developing private rental sector will make a substantial net addition to London’s rental stock and provide much-needed long-term tenancies, with emphasis on providing high quality service and accommodation, in line with the new White Paper guidelines.”

If you let property in London, whether in Zone 1 or Zone 6, have you seen a reduction in tenant demand? If so, this may have caused you to lower your rent prices in order to attract new renters.

Granting new tenants a long-term tenancy is a simple way of securing your rental income for the foreseeable future and providing high quality homes to those who need it most – Remember to always stick to lettings law!

Number of retiree tenants is rising

Published On: February 27, 2017 at 12:41 pm

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There has been a sharp rise in the number of people renting property during retiree age, according to the latest report from Girlings Retirement Rentals.

The firm has attributed this rise to alterations in attitude and perceptions to do with renting in the last decade. In addition, it points to the many benefits that renting in later life can bring.

Retiree Renters

Presently, households aged 65-plus account for roughly 10% of those living in the private rented sector. Girlings said that this figure is rapidly growing

There has been a steady growth in enquiries since the year 2002, with 2015 and 2016 seeing the highest levels of enquiries. 2017’s figures are set to improve further.

This trend is being backed up by the National Landlords Association which found that the number of retired people in Britain moving into the private rental sector has risen by 200,000 since 2012.

A separate study by LSL Corporate Client Department Ltd shows that nearly one in five people aged over 55 are now renting.

Number of retiree tenants is rising

Number of retiree tenants is rising

Lifestyle Choice

Peter Girling, Chairman of Girlings Retirement Rentals, said: ‘For many people in their 60s, 70s and 80s renting is a lifestyle choice, as well as a financial one. Many don’t want the financial burden of home ownership or worries about property and garden maintenance. By selling their home and releasing capital to supplement their retirement they can enjoy themselves, gift an amount to their children or invest it.’[1]

‘As people get older they can also find their current property is too big for them, or they feel isolated if they are left living alone. Renting can be a good solution for downsizing to a more manageable home, giving people access to services, should they need them as they get older and a social life that comes with living in a retirement community,’ he added.[1]

Concluding, Mr Girling said: ‘Renting gives older people the chance to move somewhere they have always wanted to live, such as by the sea or closer to relatives. Coastal locations are the most popular places to rent for many people, with Bournemouth the number one requested place last year. Renting allows people the flexibility to try a new location before deciding if it’s right for them.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/sharp-rise-in-number-of-older-tenants

HMRC Records Increase in Tax Receipts, but Property Market Slows

Published On: February 27, 2017 at 10:54 am

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HM Revenue & Customs (HMRC) recorded a 5.75% overall increase in tax receipts over the 12 months to January, but its data shows that the property market has slowed, with transactions on a steady monthly decline since April 2016, reports Blick Rothenberg accountants.

HMRC Records Increase in Tax Receipts, but Property Market Slows

HMRC Records Increase in Tax Receipts, but Property Market Slows

The Assistant Manager at Blick Rothenberg, Paul Haywood-Schiefer, explains: “Whilst the overall tax receipts have seen an increase, there is a clear reverse in the UK property market, as the number of transactions since April 2016 has been on the decline each month when compared to the same month of the previous year. The position shown by the latest figures is that there has been an overall 0.12% decrease in property transactions since the end of January 2016.

“Whilst the number of properties changing hands has been lower, Stamp Duty Land Tax (SDLT) receipts have increased by 11.65% in the same period, mainly boosted by the 3% surcharge on second or additional properties.”

He continues: “The changes to SDLT, announced in the Autumn Statement of 2015, meant that SDLT would be lower on properties under £937,500, but the additional 3% SDLT surcharge applied to all residential property transactions occurring from April 2016 means that it is not always the case. The 3% surcharge also triggered a rush to buy properties before this deadline, and so the SDLT receipts have been buoyed by that in the early part of 2016.”

The Government’s record £9.4 billion surplus was supported by a 5.75% overall increase in its total receipts over the past 12 months, with larger underlying growth in the individual receipts for Self-Assessment Income Tax (13.09%), Corporation Tax (10.40%), National Insurance contributions (7.89%), and SDLT (11.65%).

Haywood-Schiefer adds: “Although these figures are healthy increases, it is important to not lose sight that the Self-Assessment Income Tax and Corporation Tax receipts reflect, at least partly, the results of the previous tax year because of the timing of the payments related to when the profits were earned. PAYE receipts, which are a more current indicator of how the economy is faring, have seen only a 1.92% increase over the same period.

“Self-Assessment receipts for January alone were £1.2 billion up from the previous year, which represents 38.5% of the total increase in the last 12 months, but this may be due to more people having paid on time this year than in the previous year. Therefore, the statistics released in March and April will give us a better overview of whether there is a real increase.”

Average rents falling in London

Published On: February 27, 2017 at 10:32 am

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The latest report from London based estate agent Foxtons suggests that uncertainty surrounding Brexit and increased supply putting pressure on rents dominated the capital’s lettings market at the end of 2016.

Looking at the performance of the London lettings market in Q4 of 2016, the agent said there was an upward spiral in the number of renters from Western Europe. This indicates that there is recovering confidence in the market despite external influences.

Trends

More findings from the report show that average rents in London continued to fall during the final quarter of the year. The report shows that this impact was more prominently seen between Zones 3-6.

However, gross yields remained largely consistent.

Additionally, the publication of the Housing White Paper earlier in February bought with it encouragement for the private rental sector. It appears to offer greater security for renters with the promise of more longer-term tenancy agreements.

Average rents falling in London

Average rents falling in London

Sarah Tonkinson, PRS Director at Foxtons, observed: ‘We see the policies set out in the White Paper as a positive start to increasing availability of affordable homes and improved lettings conditions for renters.’[1]

‘The developing Private Rented Sector will make a substantial net addition to London’s rental stock and provide much-needed long-term tenancies with emphasis on providing high-quality service and accommodation, in line with the new White Paper guidlelines,’ she added.[1]

 

[1] http://www.propertyreporter.co.uk/landlords/white-paper-policies-to-boost-london-lettings-market.html