Posts with tag: buy to let investors

Romford Knocks Luton off the Top Buy-to-Let Locations

Published On: February 23, 2017 at 9:28 am

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Romford Knocks Luton off the Top Buy-to-Let Locations

Romford Knocks Luton off the Top Buy-to-Let Locations

Romford has knocked Luton off the number one spot in LendInvest’s rankings of the top buy-to-let locations in England and Wales.

The UK’s leading online property lending and investing business has released its latest quarterly research index on the top buy-to-let locations.

The LendInvest Buy-to-Let Index ranks each postcode area around England and Wales to find the top buy-to-let locations. The ranking is based on a combination of four critical metrics: Capital value growth, transaction volumes, rental yield and rent price growth.

Romford in east London has taken the top spot, climbing six places thanks to an 8% jump in rent price growth.

Northampton remains the only postcode in the top ten to be located outside the South East, while Stevenage ranked tenth overall, despite recording the highest rent price growth, at 10.2%.

The Co-Founder and CEO of LendInvest, Christian Faes, comments: “Consistency is clear here: suburban parts of the South East of England continue to offer the best opportunities for investors, while inner London continues to underperform.

“The absence of a large shake-up in the top ten buy-to-let postcodes this quarter shows some stability in the market following a year of market-moving uncertainty and geopolitical shocks. This can only be good news for property professionals; there is nothing to wait for to start investing, renovating and building.”

He advises: “Landlords and investors must remember that considering rental yield isn’t enough; it’s critical to find a property that impresses across all metrics. In the quarter ahead, we’ll be watching closely a number of areas that could edge towards the top ten, like Bristol (ranked 15th), Milton Keynes (16th) and Manchester (21st).”

The top buy-to-let locations 

Position

 Location Average rental yield Average capital gain Average rent price growth

Transaction volume growth
1 Romford 5.24% 16.55% 8.33% -7.84%
2 Luton 4.73% 15.19% 7.94% -6.06%
3 Dartford 4.74% 17.75% 6.25% -12.44%
4 Rochester 4.71% 13.96% 6.94% -7.09%
5 Watford 4.24% 17.17% 6.36% -15.78%
6 Enfield 4.60% 16.97% 4.53% -11.97%
7 Southend-on-Sea 4.50% 14.41% 5.95% -9.40%
8 Northampton 4.77% 8.11% 8.33% 0.85%
9 Colchester 4.44% 12.21% 4.38% -2.61%
10 Stevenage 4.06% 9.39% 10.20% -11.00%

The worst buy-to-let locations 

Position

 Location Average rental yield Average capital gain Average rent price growth

Transaction volume growth
1 Galashiels 3.80% -9.57% 0.91% 1.00%
2 Cleveland 4.66% 1.24% -3.51% -11.26%
3 Northwest London 3.82% 5.40% -5.03% -13.01%
4 Carlisle 4.16% 0.61% 0.00% -14.23%
5 Western central London 3.46% 1.50% 4.44% -27.90%
6 Llandrindod Wells 3.49% -1.20% -1.24% 0.57%
7 Hull 4.64% 5.61% -3.51% -11.39%
8 Newcastle upon Tyne 4.74% 1.53% 0.00% -9.30%
9 Llandudno 4.73% 0.77% 0.00% -4.99%
10 Swansea 4.67% 1.24% 0.00% -5.76%

 

BTL investors seemingly undeterred by Stamp Duty

Published On: February 1, 2017 at 12:38 pm

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New data released from the Council of Mortgage Lenders indicates that the number of homes eligible to pay stamp duty rose to 62,800 in Q4 of 2016.

This was a rise from 56,200 in Q3 and 30,400 in Q2 and suggests that people are still believing in the buy-to-let sector.

Stamp Duty rises

The introduction of the 3% increase in Stamp Duty during April of last year was widely expected to deter many investors from purchasing. However, the lure of high yields, low void periods and capital appreciation is still proving high for a number of people.

Many investors are still adding to their portfolios , reflected in rise in the amount that buy-to-let investors borrowed to invest in property during the final stages of the year.

Landlords borrowed £3.2bn in November 2016, up by 10% month-on-month, the greatest amount since the stamp duty changes were introduced.

The Treasury made £1.19m from the additional surcharge on second homes since the second quarter of last year.

BTL investors seemingly undeterred by Stamp Duty

BTL investors seemingly undeterred by Stamp Duty

Windfall

Nick Leeming, chairman Jackson-Stops & Staff chairman, said: ‘So far £1.19m worth of stamp duty receipts are estimated to be attributable to the additional 3% element payable on second homes, a significant windfall for Treasury coffers.’[1]

‘Between Q2 and Q3 the number of second homes liable for the 3% surcharge nearly doubled. This increase is understandable as many buy-to-let investors would likely have rushed to make purchases before April 1st, but the number of liable second home transactions is up again in Q4 to 62,800. The data suggests that buy-to-let investors are not being deterred by the new tax which is supposed to be dampening demand from this group to the benefit of first-time buyers. We will see the true impact of this policy in time, but my fear is that additional costs will be passed on to tenants,’ he continued.[1]

Concluding, Leeming noted: ‘The better solution is a real concerted drive to build more homes, rather than targeting buy-to-let investors – I hope the upcoming Housing White Paper contains a real blueprint for change in this regard.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/buy-to-let-landlords-undeterred-by-stamp-duty-surcharge

Public events to assist landlords and tenants

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

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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

 

London’s rental market seeing signs of recovery

Published On: January 20, 2017 at 11:13 am

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The rental market in London is being blighted by oversupply, with buy-to-let investors in the capital also suffering with unprecedented tax charges. As such, 2017 looks set to be another unsettled year for the sector in London.

However, the most recent research from Benham & Reeves reveals that many regions of the capital are actually seeing an upturn, which could signify a rebound is imminent.

Suburban Surge

The residential letting firm saw the largest rental growth outside of central London, with suburban locations with strong transport links seeing the largest rent rises. The most prominent was in Colindale in north London, which boasted rental rises of 4.7%.

Even parts of prime central London which have seen downturns have started to improve. Some postcodes in these regions have seen average rental values rise by 4% or more.

In addition, landlords in areas such as Hampstead and Knightsbridge also have reason for optimism. Lease renewals in Knightsbridge hit a huge figure of 85%, with the average length of tenancy at 17 months.

London's rental market seeing signs of recovery

London’s rental market seeing signs of recovery

Favourable

Marc von Grundherr, Lettings Director of Benham & Reeves Residential Lettings, noted: ‘There is no doubt that landlords have had a tough time of late. Rising taxes and stamp duty rates have taken their toll and it’s been hard to offer many crumbs of comfort to our landlords.’[1]

‘These latest figures, however, demonstrate that for those who are able to ride out the tough times, the market will eventually turn back in their favour. We don’t want to be too optimistic just yet as things are still undeniably difficult for many amateur property investors but nothing could be as bad as 2016. Roll on 2017,’ he added.[1]

 

[1] http://www.propertyreporter.co.uk/landlords/a-glimmer-of-hope-for-londons-besieged-rental-market.html

Landlords should be offered more support, claims peers

Published On: January 12, 2017 at 10:38 am

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The Government must do more in order to support buy-to-let landlords, starting by changing tax increases, according to industry peers.

Since the 3% stamp duty increases, alterations to mortgage interest tax relief and other changes, there has been a substantial drop in the number of buy-to-let transactions. A number of would-be investors have been deterred by the alterations.

Concerns

Jenny Mayes, of Simple Landlords Insurance has called on the Chancellor Philip Hammond to listen to the concerns of landlords.

She noted: ‘Landlords should be supported and recognised for their contributions in providing affordable housing, rather than burdened with unfair tax measures that will see them having to take considerable cuts to their income and being forced to pass some of this to their tenants.’[1]

A survey conducted by Simple Landlords this month discovered that landlords’ biggest wish for the New Year is for the Government to alter its stance on buy-to-let tax relief on mortgage interest payments.

Landlords should be offered more support, claims peers

Landlords should be offered more support, claims peers

Impact

Bevan Smith, director of BPM Estates, observed: ‘2017 is going to be an interesting year and I think we are yet to really see how potential changes are going to impact the rental market. Brexit and the US elections aside, it is likely to be changes to landlord taxes and mortgages that will really influence the market place.’[1]

‘Investing in residential property is becoming increasingly expensive and I wouldn’t be surprised if we see landlords sell parts of their portfolio. This could be good news for the buyer-occupier market, but will likely mean less supply for the rental market, which could in turn lead to higher rents,’ she added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/landlords-should-be-supported-rather-than-burdened-with-unfair-tax-measures

Can a letting agent save you £2,000 per year?

Published On: January 5, 2017 at 9:56 am

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Interesting new research has revealed nearly half of private sector landlords use a letting agent as it gives them peace of mind. What’s more, around a quarter communicate with them on a weekly basis.

Data from the investigation conducted by Endsleigh also discovered that agents can assist landlords in saving up to £2,000 a year by keeping their void periods down.

Peace of mind

41% of people questioned said they feel the main benefit of an agent is the peace of mind they provide.

On the other hand, investors who felt that they could save money by not using a letting agent observed the average amount they weren’t spending on fees totalled £159 per month.

However, analysis of rental income and void periods for landlords with and without letting agents suggests that agents saved clients an average of £1,910 per year.

More than two-thirds (76%) of respondents said that their letting agents were pro-active in helping that find tenants and helping with legal and financial matters.

Can a letting agent save you £2,000 per year?

Can a letting agent save you £2,000 per year?

Relationship

In addition, the survey indicates that the relationship between letting agents and landlords are not solely for financial benefits.

Of those landlords using an agent, 50% did so due to their local knowledge while almost 40% were attracted to their overall service.

Will Parker, associate director and chartered surveyor at H&H Land, says the figure that agents can save is extremely high.

Parker noted: ‘In the past there have been widespread misconceptions amongst landlords about the value for money offered by letting agents. The survey suggests that in these cases letting agents can in fact save their clients an average of almost £2000, which is certainly a very significant saving and one worth considering.’[1]

[1] http://www.propertywire.com/news/europe/good-letting-agents-can-save-landlord-almost-2000-month/