Written By Em

Em

Em Morley

Public events to assist landlords and tenants

Published On: January 26, 2017 at 11:04 am

Author:

Categories: Landlord News

Tags: ,,

Buy-to-let investors have been invited to attend a number of public events over the next few days. These events will see a number of experts offering tips and advice for landlords for them to make the most of their investment.

These events will be hosted by Harrison Murray Lettings and will take place in the firms’ offices in Nottingham, Leicester and Northampton during the next two and a half weeks.

Service

Harrison Murray Lettings will broadcast its experience and service for buy-to-let landlords and tenants alike. The sessions will talk about the benefits the company could offer as part of the Nottingham Building Society, aka The Nottingham.

The firm aims to build on the free lettings advice offered and includes an online tool entitled FixFlow, which assists tenants to communicate with their landlord should any issues arise.

More reasons for investors and tenants to utilise Harrison Murray Lettings include access to The Nottingham’s wide ride of services. These include full residential state agency services, conveyancing, home insurance and financial and estate planning.

Public events to assist landlords and tenants

Public events to assist landlords and tenants

Improvements

Stephen Reade, head of letting, said: ‘FixFlow is a fantastic way of making sure both landlord and tenant are happy and it is just one of a number of things we have done to improve our offering.’[1]

‘As well as front-facing developments like utilising FixFlow we have upgraded internal systems and databases to keep ahead of the constantly changing lettings market and all of this whilst making sure we have remained-and will remain-extremely customer service focused,’ he continued.[1]

Mr Reade went on to say: ‘Keeping client needs front and centre is imperative as we are helping landlords maintain their assets and tenants to live safely and comfortably, particularly in a climate where many individuals and families are finding it hard to get on the property ladder and are forced to rent.’[1]

‘Where we are different is that by being part of a large, established building society like The Nottingham we can bring in that extra bit of trust factor as well as an ‘all-under-one-roof’ offering when it comes to property and financial services and advice. Our forthcoming events are designed to showcase all of those positives and to have a bit of fun along the way. We hope as many people as possible can attend.’[1]

The full list of the events is:

  • Friday 27 January: HM Lettings, 15-17 Halford Street, Leicester, LE1 1JA
  • Friday 3 February:The Nottingham, 5/13 Upper Parliament Street, Nottingham, NG1 2BX
  • Friday 10 February: HM Lettings, 3 George Row, Northampton, NN1 1DF

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/new-public-events-to-help-landlords-maintain-their-assets

 

Over Half of Private Tenants Believe they will Never Own a Home

Published On: January 26, 2017 at 10:05 am

Author:

Categories: Finance News

Tags: ,,,

Over half of private tenants in the UK believe they will never own their own home, according to a worrying new survey.

As house prices continue to rise in some parts of the country, private tenants often consider saving for a deposit to be the greatest barrier to getting onto the property ladder.

Over Half of Private Tenants Believe they will Never Own a Home

Over Half of Private Tenants Believe they will Never Own a Home

The study, conducted by property investment consultancy Knight Knox, found that less than a quarter (23%) of private tenants are currently saving for a deposit, with many renters having little hope of affording a deposit for their own home, unless their circumstances change dramatically.

The survey, which polled 2,000 private tenants across the UK, suggests an acceptance among those living in the private rental sector that owning a home will remain unattainable, believes Andy Phillips, the Commercial Director of Knight Knox.

He explains: “With rising house prices and stagnant salaries, it appears that many people currently renting have come to terms with the idea that they’ll never own a home and now accept renting as a viable option in the long-term.

“We’ve grown up in this country with the notion that you must settle down and buy a house, but, due to numerous factors, that’s not as much of a reality as it once was, and we’re starting to see the stigma traditionally attached to renting dissolve.”

He adds: “The reducing number of people saving for a deposit could mean we’re seeing a shift towards a private rental sector-centric property landscape, similar to that which has long been a way of life in Germany and wider continental Europe.”

In support of Phillips’ views, 61% of private tenants said they were content to rent, claiming that renting suits their lifestyles, and they do not want to be tied down to one property or a lengthy mortgage contract.

Phillips agrees: “The traditional model of homeownership doesn’t suit everyone’s lifestyle, and whether it’s the best way forward is being called into question.

“Meanwhile, the private rental sector is increasingly being seen as an essential solution to the lack of housing available, with rented homes expected to account for over seven million homes in the UK by 2025.”

The survey’s findings are good news for landlords, who can rest assured that demand from private tenants will remain high in the long-term, despite fears that investing in buy-to-let may not be as lucrative as it once was.

Average property prices could rise sharply in next decade

Published On: January 26, 2017 at 9:50 am

Author:

Categories: Property News

Tags: ,,,

A warning has been sounded that residential property prices in England could reach an average of over £300,000 during the next decade, should prices continue to rise at the same rate as previously.

What’s more, the research from eMoov suggests that in the capital, prices could rise to over £800,000, with those in the South East hitting £445,000.

Property Price Rises

The report from eMoov shows that house prices in England have risen by 29% in the last ten years. The same increase between now and 2027 would take the average house value in England to £301,864.

In London, they would increase by 80% to hit £866,719 and in the South East a rise of 43% to £445,159.

For other regions, the rise would not be as prominent. In the North West, prices would increase to £158,131. Prices in the East and West Midlands would rise to £205,870 and £183,883.

Looking at the last 20 years, values in England have risen by 320%. Should this happen again until 2037, average property prices would rise to £983,826. In London, average values would hit a whopping £2,792,783.

Average property prices could rise sharply in next decade

Average property prices could rise sharply in next decade

Impossible

Russell Quirk, chief executive officer of eMoov, believes the figures show the almost impossible task being faced by the next generation of would-be renters.

Quirk noted: ‘The property boom in several regions of England has made it increasingly more expensive to get on the ladder and the figures anticipating the next two decades only further attest to the importance of investing in a home as soon as possible if the trend in increasing property values is to persist.’[1]

‘It is stomach churning to think that should prices continue the way they are, there will be just one real area of property affordability left across England in 20 years’ time, with the average house price in England approaching the £1 million mark and three regions tipping beyond this,’ Quirk added.[1]

[1] http://www.propertywire.com/news/uk/average-house-price-england-reach-close-1-million-2037/

Construction Sector Experiencing Severe Shortage of Skilled Workers

Published On: January 26, 2017 at 9:24 am

Author:

Categories: Property News

Tags: ,,,

The construction sector is experiencing a severe shortage of skilled workers, warns the findings from the latest State of the Trade survey by the Federation of Master Builders (FMB).

Although builders report increasing workloads, many are warning that a severe shortage of skilled workers is affecting the construction sector, which will have a direct impact on housebuilding.

Construction Sector Experiencing Severe Shortage of Skilled Workers

CrConstruction Sector Experiencing Severe Shortage of Skilled Workers

The FMB survey for the last quarter found that the net balance for the private new housing sector jumped by 13 percentage points to +15%, remaining in positive territory for the fourth consecutive quarter.

The share of firms reporting a rise in workloads went up to 30% from 26% in the third quarter, while those reporting a decrease in workloads dropped to 15% from 23%.

More than half of firms in the construction sector (55%) experienced no change to their workloads.

However, half of small firms in the construction sector reported difficulties hiring roofers, while the shortage of electricians and plasterers was at a four-year high.

The Chief Executive of the FMB, Brian Berry, comments on the study: “We’ve been experiencing a severe shortage of bricklayers and carpenters for quite some time – these latest statistics show that skills shortages are now seeping into other key trades, such as roofers and plumbers.

“Indeed, of the 15 key trades and occupations we monitor, 40% show skills shortages at their highest point since we started to feel the effects of the skills crisis in 2013, when the industry bounced back post-downturn.

“This growing skills deficit is driving up costs for small firms and, simultaneously, adding to the pressure being felt by soaring material prices linked to the weaker pound.”

He insists: “The Government needs to be taking note of the worsening construction skills shortage now that we know that the UK will be negotiating a hard Brexit. The Prime Minister must ensure that the immigration system that replaces the free movement of people serves key sectors, such as construction and housebuilding.

“If the Government wants the objectives of its Housing White Paper to be realised, it will need to ensure the construction sector has the skilled workers it needs to build these new homes.”

The Government’s Housing White Paper is expected for release by the end of this month. We will keep you posted with the latest property market updates at LandlordNews.co.uk.

Accord moves to offer cheaper LTV deals for BTL

Published On: January 25, 2017 at 3:19 pm

Author:

Categories: Finance News

Tags: ,,,,

Today has seen Accord Buy-to-Let move to reduce some of its buy-to-let rates on selected lower LTV mortgages. In addition, the lender has introduced new 65% LTV options.

The Yorkshire Building Society Group’s intermediary-only lender has slashed rates for landlords at 65% and 75% LTV by up to 0.2%.

Fixed Rates

A two-year fix is now available at just 1.99% for buy-to-let borrowers with a 35% deposit. At 75% LTV, buyers can secure a two-year fix at 2.04%. Both mortgages are available to landlords looking to remortgage or extend their portfolio and come with a £1,995 product fee.

Just last year, Accord moved into the consumer buy-to-let market and now also offers 65% LTV products. These include a 2.54% two-year fix with a £450 product fee.

Accord moves to offer cheaper LTV deals for BTL

Accord moves to offer cheaper LTV deals for BTL

Those purchasing a new property will receive £500 cash-back on completion. In addition, remortgaging landlords can pick a free standard valuation and £300 cash-back on completion, or free standard valuation and legal costs.

Value for Monday

Chris Maggs, Accord’s Buy-to-Let Commercial Manager, noted: ‘We are always looking at ways to offer landlords value for money and we believe that these mortgages will prove very attractive thanks to the competitive rates and additional features. We hope brokers looking for competitive deals on buy-to-let property purchases and remortgages will welcome these new rates as much as their clients.’[1]

 

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/cheaper-ltv-options-available-from-today-for-btl-landlords

 

 

Scottish rental growth showing stability

Published On: January 25, 2017 at 11:30 am

Author:

Categories: Property News

Tags: ,,,

New data released by Your Move Scotland has revealed that residential rents in the country either increased or showed stability between October and November 2016.

This took the average rent in Scotland to £569 per month.

Scottish Rents

The most expensive rents in Scotland are found in Edinburgh and the Lothians, with rents here growing by 4.9% year-on-year.

Edinburgh saw average rents reach an average of £645 per calendar month. The next most expensive location was Glasgow and Clyde, where rents hit £577 per month.

Rents however are not rising at an equal rate. Rents in Glasgow and Clyde are up by 0.9% year-on-year while those in the Highlands and Islands actually fell by 7.8%.

Overall, the East of Scotland is the cheapest place to rent a property. However, rents did rise here by 0.2% month-on-month and by 0.8% year-on-year.

In addition, the report shows that yields and tenant finances have also remained fairly steady. The average rental yield currently stands at 5%-greater than those in both England and Wales, where typical yields stand at 4.7%.

Scottish rental growth showing stability

Scottish rental growth showing stability

Arrears

Scotland saw some 10.8% of all tenancies in arrears of over one day or more in November 2016. This was greater than the 7.9% recorded in October, but behind September’s 12.5% total.

However, this figure was greater than the 8.3% arrears rate seen in England and Wales in the same month. In absolute terms, the number of Scottish households in serious arrears (two months or more) was 9,753 in October 2016.

Brian Moran, lettings director of Your Move Scotland, observed: ‘Landlords and tenants will both be happy to see overall tenant finances improve and this shows the Scottish rental market is in a stable position at present. Yields remain strong and above the level seen in most of England and Wales despite concerns about the wider economy.’[1]

[1] http://www.propertywire.com/news/uk/residential-rents-rose-stable-across-scotland-november-2016/