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Em Morley

Conveyancing Comparison Service for Buy-to-Let Investors

Published On: November 16, 2016 at 11:50 am

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When an investor finds that ideal investment, they have probably spent hours searching and viewing many properties, together with visiting several management agents to fully understand what financial returns they can expect after all the costs of getting the property upgraded to a safe standard. They focus on net yield.

Impartial conveyancers

Duncan Pattinson knows all about buy-to-let investment, as he used to be MD of a large buy-to-let business. He realised that what buy-to-let investors needed was a conveyancing comparison and solicitor-finder service. So many property developers and sellers of stock were stipluating that the investor had to use their nominated solicitor – hardly impartial!

Conveyancing Comparison Service for Buy-to-Let Investors

Conveyancing Comparison Service for Buy-to-Let Investors

We Help You Too Ltd manages the Homebuyer Conveyancing panel, a panel that has grown over the past three years. Some 120-plus conveyancing solicitors are members, with additional solicitors joining each week.

Online conveyancing quotes

Buy-to-let investors can budget for their conveyancing costs by going online to the Homebuyer Conveyancing comparison website: http://www.homebuyerconveyancing.com. They can view and compare conveyancing quotes in just one search, without entering any personal details. They can filter their search by price, location and by mortgage lender. When ready, they can take a conveyancing quote away and book a timed call from their chosen conveyancing solicitor or licensed conveyancer to discuss their quote – straightforward, efficient and without obligation to instruct.

The conveyancing quotes fully detail their conveyancing fees and disbursements costs, and detail any applicable Stamp Duty Land Tax due to the investor buying an additional property.

Where experience matters

What is special about this particular service is that each purchase quote uses a comprehensive search pack that is under £200 and covers England and Wales. This enables investors to compare conveyancing quotes with no hidden fees or costs. They can even choose an option to add Exchange Insurance within their conveyancing quotes. If the investor is buying a new build, then a new build search pack is used, which is considerably cheaper. The savings are simply passed on to the investor.

The solicitors order the search pack from Onesearch Direct. Where Experience Matters is its strap-line. It also has a suite of other searches that can fast-track the search process if required.

Customer charter

It pays to compare competitive national conveyancing quotes from a conveyancing panel that is focused on the customer. Cheaper pricing is due to where the solicitor is located and is not a reflection of service. Each Homebuyer Conveyancing member is signed up to a customer charter.

Improving the conveyancing process

Duncan has a backgroung in improving process and, as such, this determination is self-evident, with a few additional improvements coming soon. The software and panel provides the much needed hands-off service that a buy-to-let investor needs when finding an independent solicitor at a price they can afford.

We Help You Too Ltd manages the Homebuyer Conveyancing panel.

Turning the complex into the understandable

Borrowing lull in buy-to-let market

Published On: November 16, 2016 at 10:44 am

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New seasonally adjusted figures released by the Council of Mortgage Lenders (CML) reveal that the level of buy-to-let borrowing slipped by 7% between August and September.

According to the firm, the 3% stamp duty surcharge continues to hit landlords hard in the pocket.

Borrowing falls

Data from the report shows the gross amount that buy-to-let landlords borrowed is also down year-on-year. There was a 22% fall in borrowing to £2.8bn with the number of loans down by 6% from August to 18,200. In addition, there was a fall of 26% in comparison to September 2015.

Paul Smee, director general of the Council of Mortgage Lenders, said: ‘Six months on since the stamp duty changes on second properties and buy-to-let continues to operate at lower levels than a year ago. But lending for buy-to-let house purchase and remortgaging has settled at its current level over the last four months.’[1]

Steve Bolton, founder of Platinum Property Partners, feels it could take a long time to see resurgence in mortgage lending required to bring the market back to pre-stamp duty levels.

Bolton noted: ‘The fall in purchase loans suggests many landlords are holding back from expanding their portfolios. With punitive tax changes on the horizon for 2017, this trend will only become more pronounced. The unfortunate knock-on effect for tenants is rents will become more expensive as the supply of suitable rental accommodation is constricted.’[1]

Borrowing lull in buy-to-let market

Borrowing lull in buy-to-let market

Remortgaging rises

Remortgaging hit £5.5bn during September, a fall of 7% in August. However, this was 8% up in comparison to September 2015. This was a representation of 31,500 loans, down 10% month-on-month but up 2% year-on-year.

Jeremy Duncombe, director of Legal & General Mortgage Club, observed: ‘It is encouraging to see that remortgaging figures are continuing to rise on an annual basis. These figures show that borrowers are beginning to regain control of the housing market and make it work for them, as they continue to take advantage of the record low base rate.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/landlord-borrowing-falls-by-7-as-lull-hits-buy-to-let-market

 

Government Announces Route for Phase 2 of HS2

Published On: November 16, 2016 at 10:35 am

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The Government has announced its preferred route for Phase 2 of HS2. The route will link Crewe to Manchester, and the West Midlands to Leeds.

When both phases of HS2 are complete in 2033, the total number of mainline commuter and intercity trains per hour into and out of Birmingham, Manchester and Leeds will almost double to 48. The total number of intercity seats will treble, to almost 15,000 per hour.

The Transport Secretary, Chris Grayling, has confirmed the majority of the preferred HS2 route from Crewe to Manchester and the West Midlands to Leeds, in a major boost for the UK’s future economic prosperity.

He believes this is major step towards: significantly increasing capacity on the country’s congested railways for both passengers and freight; improving connections between the biggest cities and regions; generating jobs, skills and economic growth; and helping to build an economy that works for all.

The new HS2 trains will carry over 300,000 people per day and will treble the amount of seats available out of Euston at peak hours, freeing up space on the existing network for additional commuter and freight services.

The scheme will create around 25,000 jobs during construction and 2,000 apprenticeships. It will also support growth in the wider economy, worth an additional 100,000 jobs.

The direct benefits of HS2 will reach far beyond the towns and regions directly served by the new railway lines, insists Grayling. As the full network is completed, new HS2 trains will continue up the East and West Coast Main Lines, serving locations including:

  • Stafford
  • Liverpool
  • Preston
  • Warrington
  • Wigan
  • Carlisle
  • Glasgow
  • York
  • Darlington
  • Durham
  • Newcastle
  • Edinburgh
Government Announces Route for Phase 2 of HS2

Government Announces Route for Phase 2 of HS2

Grayling comments: “Our railways owe much to the Victorian engineers who pioneered them, but we cannot rest on their legacy when we face overcrowding and capacity problems.

“HS2 is an ambitious and exciting project, and the Government is seizing the opportunity it offers to build a transport network fit for the 21st century; one that works for all and makes clear to the world that Britain remains open for business.”

He continues: “The full HS2 route will be a game-changer for the country that will slash journey times and, perhaps most importantly, give rail passengers on the existing network thousands of extra seats every day. They represent the greatest upgrade to our railway in living memory.

“But while it will bring significant benefits, I recognise the difficulties faced by communities along the route. They will be treated with fairness, compassion and respect and, as with Phase 1, we intend to introduce further compensation which goes over and above what is required by law.”

The Communities Secretary, Sajid Javid, responds to the announcement: “The new HS2 routes laid out today will make sure our plans to create an economy that works for everyone remain right on track.

“We are determined to get both the Midlands Engine and Northern Powerhouse firing on all cylinders, and HS2 will help create new growth, jobs and homes right across the line.”

Grayling’s command paper, High Speed Two: from Crewe to Manchester, the West Midlands to Leeds and beyond, sets out the announcement in more detail.

On the western leg, HS2 will:

  • Continue north from Crewe to Manchester Airport
  • Continue from Manchester Airport to Manchester city centre, where a new HS2 station will be built next to Manchester Piccadilly

There will also be connections to Liverpool and to the existing West Coast Main Line, allowing HS2 services to continue north, serving stations to Glasgow and Edinburgh.

On the eastern leg, HS2 will:

  • Continue from the West Midlands to Toton in the East Midlands, where a new HS2 station will be built to serve Nottingham, Derby and the wider region
  • Continue north from the East Midlands to South Yorkshire
  • In line with Sir David Higgins’ recommendation, HS2 should serve Sheffield with a connection to the existing station, with the main route to be moved further east
  • From South Yorkshire, HS2 will continue to Leeds, where a new HS2 station will be built in Leeds city centre, adjacent to the existing station
  • HS2 will also have a connection onto the East Coast Main Line, allowing HS2 to serve York, Newcastle and other places in the North East

Following yesterday’s announcement, the Department for Transport has issued safeguarding directions for the preferred Phase 2b route, which protects the route from conflicting development, and also means that those people who are most affected by the plans to build Phase 2b can now apply to the Government to buy their homes.

The Department is also consulting on discretionary property schemes. These schemes are the same as those currently in operation for people living along the Phase 1 route. Two of these schemes will be in operation from today on an interim basis – Express Purchase and Need to Sell. If confirmed by the Government, all schemes will be in place until one year after the railway is fully operational.

Mark Hayward, the Managing Director of the National Association of Estate Agents (NAEA), explains his concerns over the announcement: “We welcome the news that the Government will pay compensation to homeowners impacted by the construction of Phase 2 of HS2. However, we remain concerned about the prospect of demolishing a brand new housing estate in Mexborough, South Yorkshire. Considerable amounts of money and time have gone into the construction of that estate, and it suggests that the Government’s approach to infrastructure construction is disjointed.

“People who bought those properties did so under the impression that they would be able to live there for years, bringing up families and creating homes. We call on the Government to fundamentally rethink its plans to ensure that the properties in Mexborough are saved and, by doing so, preserving homes for years to come”

The Government originally set out plans for Phase 2 of HS2 in 2013. Since then, it was decided to develop Phase 2 in two stages:

  • Phase 2a – From the West Midlands to Crewe
  • Phase 2b – From Crewe to Manchester and from the West Midlands to Leeds, South Yorkshire and the East Midlands

Phase 2a will open in 2027, while Phase 2b is scheduled for 2033.

We will continue to keep you updated on the major infrastructure projects that will affect communities and housing throughout the country, along with how they will impact on the economy.

RLA wants Rent Smart Wales deadline extended

Published On: November 16, 2016 at 9:52 am

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There have been fresh calls to extend the registration deadline for Rent Smart Wales, which is looming next week (23rd November).

The scheme requires anyone who rents out property in the country to either register or become licensed by this date.

Extension

However, the Residential Landlords Association said that many investors in Wales are still unaware of their obligations.

Rent Smart Wales said that landlords were given plenty of notice to register and therefore would not be extending the deadline.

Worryingly, A Freedom of Information request by the Residential Landlords Association indicated that just 32,230 landlords had registered by the 18th October. This is out of a total of 130,000.

These figures were released by Cardiff council, which is administering the scheme for Wales as a whole.

Request

Mr Douglas Haig, RLA director for Wales said that he was to write to Community Secretary Carl Sargeant to request a new deadline, in order for landlords to be further educated on their responsibilities.

Despite this, Rent Smart Wales has argued that there has been a large increase in people registering as the deadline approaches. 46,300 of the 130,000 landlords in question have now registered, with another 11,400 starting the process.

Haig feels that communication has been ‘poor’ and that ‘very few’ landlords are aware of the scheme. In addition, he notes that others are leaving it till the last minute as registration licences last for five years from the date they are approved, not November 23rd.

‘I don’t think it’s asking a lot for the Welsh Government or Cardiff council to come forth with an education plan to get this information out there. That would be a sensible approach,’ Haig explained.[1]

RLA wants Rent Smart Wales deadline extended

RLA wants Rent Smart Wales deadline extended

No changes

Responding to these calls, a Rent Smart Wales spokesman said: ‘We have no intention of extending the deadline. However, we do recognise that, due to the very high numbers of landlords visiting the website to register and apply for licenses, some are experiencing difficulties.’[1]

‘The Rent Smart Wales team consists of 79 posts and the team are working hard to reduce waiting times for customers. Once the November 23rd deadline for complying has passed, enforcement powers will be used in a sensible and proportionate manner,’ they concluded.[1]

[1] http://www.bbc.co.uk/news/uk-wales-37939620

 

What Will the Autumn Statement Mean for the Housing Market?

Published On: November 16, 2016 at 9:40 am

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Next week, on Wednesday 23rd November, the new Chancellor, Philip Hammond, will deliver his first Autumn Statement.

London estate agent Portico has looked at what to expect from the Autumn Statement in terms of the housing market, tax and infrastructure.

Tackling the housing crisis

Hammond has decided to take a different financial approach to his predecessor, George Osborne, by abandoning his pledge to balance the books by the end of this Parliament. This will enable Hammond to borrow more money, and therefore potentially boost the building of new homes, ensuring that, over time, property becomes more affordable and the housing crisis is eased.

What Will the Autumn Statement Mean for the Housing Market?

What Will the Autumn Statement Mean for the Housing Market?

A Mortgage & Insurance Adviser at Capricorn Financial, Alanzo Seville, believes: “If the Chancellor focuses on the supply of new build houses (based on average affordability calculations, for example), in conjunction with empowering local authorities, housing associations and developers, he could provide first time buyers with the kind of help that is actually needed.”

Robert Nichols, the Managing Director of Portico, also says: “The problem in London is not simply the lack of supply, but the chronic lack of affordable housing. It’s vital that we start investing heavily in the capital’s infrastructure and new high speed communication links, which could allow London workers to live in more affordable areas.”

Will Stamp Duty be cut? 

There have been many rumours and calls recently for the additional Stamp Duty charge to be abolished, or for the liability of Stamp Duty to be switched from the buyer to the seller.

The complexity of the 3% surcharge on additional properties is still causing confusion, so Portico is looking for clearer guidelines in the upcoming Autumn Statement for its landlords.

Nichols explains: “It’s time the new Government reviews the additional Stamp Duty taxes aimed at buy-to-let investors and the most expensive properties. Actions need to be taken in order to create some movement in the market and, currently, Stamp Duty Land Tax is slowing transactions down.”

Seville agrees that Stamp Duty is a burden on landlords, but doubts “that the tax will be removed altogether, especially in light of the recently announced Stamp Duty receipts attributed to the new regulations. Some have argued that switching the liability for Stamp Duty will aid first time buyers and provide the residential market with a kick-start in 2017. However, the chances are that such a step change will cause asking prices to increase, which will in turn exacerbate the affordability crisis, rather than solve it”.

Infrastructure spending

Spending on infrastructure is almost certain to feature in next week’s Autumn Statement. Speaking in Washington recently, Hammond stated: “Now is a good time to invest in genuinely productivity-enhancing infrastructure, and to take advantage of low borrowing costs and our ability to borrow.”

But while the Chancellor is expected to deliver a boost to infrastructure spending (as well as housing), he has made it clear that it will not be a “fiscal splurge”.

Nichols comments: “To counter Brexit uncertainties, it’s vital we make sure our infrastructure and communication links across London and the rest of the UK are 21st century. Though no new major projects or commitments are likely to be announced, Hammond may fast-track already scheduled projects, like Crossrail 2, which could in turn put momentum back into the London property market.”

He adds: “Areas experiencing infrastructure investment typically benefit from a boost in both rental yield and capital growth – even in an unstable or weak market. As we’ve seen first hand in the last couple of years and more recently with the Night Tube, big infrastructure projects have a very positive impact on property prices.”

What do you want to see in Hammond’s Autumn Statement?

The Daily Telegraph calls for stamp duty to be slashed

Published On: November 15, 2016 at 12:44 pm

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Yet another call for stamp duty to be slashed has been heard today, this time from national newspaper The Daily Telegraph.

The newspaper-a long-term opponent of the methods advocated by previous Chancellor George Osborne, has called on Phillip Hammond to cut the surcharge.

Less returns

In a front page lead today, The Daily Telegraph states that the Exchequer has received £370m less in stamp duty income than the £700m it estimated when announcing the reforms.

In addition, the newspaper argues that the changes have lost the wider economy roughly £1bn, as a result of reduced expenditure due to a fall in the overall number of transactions.

‘Today The Daily Telegraph launches a campaign calling on Mr Hammond, the current Chancellor, to address the issue in next week’s Autumn Statement.’[1]

The Daily Telegraph calls for stamp duty to be slashed

The Daily Telegraph calls for stamp duty to be slashed

One-million pound homes

Homes above £1m form much of The Daily Telegraph’s argument. It suggests that while Mr Osborne wished to stop stamp duty from distorting the market, his controversial reforms actually had this effect on the most expensive properties.

‘Raising stamp duty by just one per cent on homes worth between £1m and £2m led to an eight per cent decline in transactions. This is far higher than the forecast by the Office for Budget Responsibility, which said the figure would be 2.8%,’ the newspaper claims.[1]

It goes on the cite information from business consultancy Oxford Economics, saying as a result of the reforms, some 1,950 properties with £1m or more were sold in 2015, in comparison to earlier expectations.

[1] https://www.estateagenttoday.co.uk/breaking-news/2016/11/national-newspaper-launches-campaign-to-cut-stamp-duty