Posts with tag: buy-to-let landlords

Over 80% of properties sold for less than asking price in November

Published On: December 22, 2016 at 11:19 am

Tags: buy-to-let landlords,property,property sales,supply of stock

The most recent data from the National Association of Estate Agents has revealed that over four in five properties was sold for less than their asking price during November.

This was the highest number of homes purchased for less than their valuation since records began in 2013 In October, 82% of properties were sold under their asking price, in comparison to 76% in November 2015.

Supply and Demand Falls

In addition, the report indicates that both supply of stock and overall demand fell during November, as did the number of overall sales.

House hunters slipped by 22% from October to November, from 440 to 344 members per branch respectively.

The number of properties registered was 39 during the last month, representing a 9% decrease from October, when 43 were recorded.

29% of sales were made to first-time buyers in November, 3% down from October.

Over 80% of properties sold for less than asking price in November

Lack of Confidence

Mark Hayward, Managing Director, National Association of Estate Agents, observed: ‘Following the EU referendum earlier this year, we faced a few months of low confidence from buyers and sellers, although in October the market bounced back to full form. We expect this is still the case, and this month’s slow-down is simply down to seasonality – many sellers hold off until January to put their properties on the market, and likewise buyers are more inclined to start the year with a property search, rather than attempting it over Christmas. Likewise, although a large number of sales were made below asking price in November, this can also be put down to the time of year.’[1]

[1] http://www.propertyreporter.co.uk/property/4-out-of-5-properties-sold-for-less-than-asking-price-in-november.html

Demand for student accommodation exceeding stock

Published On: December 22, 2016 at 10:25 am

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let landlords,student accommodation,student demand,students

A new survey has revealed that rents paid by students look certain to increase, due to a housing shortage in many key university cities in the UK.

Data released by student rentals platform Studenttenant.com has assessed the demand for property in locations around the top universities in Britain. It has revealed that many students beginning their studies struggle to find suitable living accommodation beforehand.

Student demand

Despite already being four months into the present academic year, many universities are still seeing heightened demand for student property.

Top of the class is the University of Exeter, with demand reaching 62%-the highest statistic for property demand surrounding a key University. Next come the University of Reading, the University of Bath and Bath Spa University, all with demands of 53%.

In addition, separate research conducted from Spareroom.com revealed that student rents increased by 10% during the last twelve months. In fact, demand for student accommodation in some cities is so fierce that rent competitive pricing could leave students £600 worse off per annum, according to the study.

The University for the Creative Arts in Farnham ranks fourth in the list compiled by Studenttenant.com. Demand for accommodation surrounding this university stands at 50%-with some first-year students forced to camp in the grounds as they couldn’t secure suitable digs!

The top-ten University locations where demand is exceeding demand are:

Ranking	University	Demand %
1st	University of Exeter	62%
2nd	University of Reading	53%
3rd	University of Bath	53%
4th	Bath Spa University	53%
5th	University for the Creative Arts	50%
6th	University of Roehampton	49%
7th	Durham University	49%
8th	University of Essex	43%
9th	Lancaster University	42%
10th	Royal Holloway, University of London	38%

Demand for student accommodation exceeding stock

Unacceptable

Danielle Cullen, managing director of Studenttenant.com, said: ‘We feel that it is simply unacceptable that students, as they have in Farham, are forced to camp within the university campus due to a severe shortage of housing.’[1]

‘Housing for students should be a priority. These pupils have worked hard to prepare for their education and to arrive without a place to sleep is worrisome. With many universities still seeing high levels of demand for student property this far into the term, it doesn’t bode well for those looking to arrive next year,’ she added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/12/demand-for-student-accommodation-exceeding-availability

UK Auction market activity slows during November

Published On: December 16, 2016 at 2:29 pm

Author: Em Morley

Categories: Property News

Tags: auction,Buy-to-Let,buy-to-let landlords,investors

The UK auction market has experienced another quiet month, according to new figures released for November.

Usually, the auction process, with no property chain and buyers and sellers entering an immediate contract, is attractive to investors.

However, the most recent data released from the Essential Information Group (EIG) indicates that auctioneers saw a fall in lots sold during the last month.

Fall in auction sales

Results show that the number of property auction lots offered fell by 7.6% during November, from 2,341 to 2,163 lots. In addition, lots sold slipped by over 10% to 1,591 lots from 1,774 in November 2015.

Despite this fall in sales, further data from EIG shows that auctioneers recorded increased revenues of 2% from £272m to £277m.

Taking the residential auction sector as a whole, there was a fall of 1.1% in lots offered during the last month, from 1,990 to 1,969. In terms of lots sold, this number fell from 4.7% to 1,508 to 1,437. Residential revenues were up from 7% to £239m to £255m.

UK Auction market activity slows during November

David Sandeman of EIG, said: ‘These results are indicative of the market’s form over the last six to nine months and are perhaps unsurprising given that the economic and political backdrop has changed markedly during this period.’[1]

‘It would be a brave man to predict what the future holds in 2017, but one can be sure that auctions will continue to provide a quick, transparent and effective means of buying and selling property,’ he added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/12/uks-property-auctions-market-softens

Rate of UK rental growth slows during 2016

Published On: December 16, 2016 at 11:20 am

Author: Em Morley

Categories: Property News

Tags: average rents,Buy-to-Let,buy-to-let landlords,rental growth,UK rents

New data released by buy-to-let lender Landbay has revealed that the average rent paid for a property in Britain increased by 1.12% in 2016.

This represented a slowdown from the 2.34% in 2015, with falling rents in the capital dragging down the resilience in rental growth evident in the rest of the UK.

National rents

According to the report, the typical UK rent rose to hit a record £1,188 per month during this year, up from £1,177 at the end of 2015. These figures are inflated by London, where rents rose to a peak of £1,894 during April, before falling in every month since then to hit £1,883 by the end of November.

The negative growth in the capital (-0.31%) was different to the 2.46% increase seen in 2015. Taking London out of the equation, rents in Britain increased by 1.91% to hit £749 by the end of November.

The East Midlands (2.6%), North West (2.03%) and Yorkshire and Humberside (1.67%) have all seen rental growth rise at their quickest pace for five years.

John Goodall, CEO and co-founder of Landbay, noted: ‘When you look at the raft of regulatory, political and economic challenges coming to bear on the buy to let sector in 2016, it’s clear to see why rental growth has slowed this year, but the nation has not been equally affected. London has been something of a millstone for the rest of the UK, and tenants will no doubt be relieved that rental pressure has eased since the referendum, but the fall in rents is unlikely to last, and we expect the tide will turn in 2017.’[1]

‘A new stamp duty levy, tighter affordability controls from the PRA, and the removal of mortgage interest tax relief all look likely to restrict the supply of rental housing in 2017, and tenants will have little choice but to compete for what properties are on offer. As a result we expect rents to rise faster than the pace of inflation next year, with growth tripling to 3% by the end of 2017,’ he continued.[1]

Rate of UK rental growth slows during 2016

Infrastructure Rises

Both the HS2 and Crossrail 2 projects have been announced in recent years, with Landbay’s report uncovering tenants close to the proposed routes are already seeing rental pressures.

All key stations on the HS2 routes north of London have seen rental growth above the national average of 8.8% during the last five years. Birmingham Curzon Street (23.7%), Birmingham (22.4%) and Leeds (15.3%) have seen significant rental growth over the period.

Mr Goodall concluded by saying: ‘Infrastructural investment featured highly in the Chancellor’s Autumn Statement, and it’s clear that the government is counting on HS2 and Crossrail 2 to deliver significant economic benefits to people living in the areas they connect. This may well be so, but it will all be for naught if a shortage of housing makes the areas unattractive to live in. Rapidly rising rents may offset some additional costs for landlords, but if the situation becomes unsustainable this is not good for the housing market as a whole. Housebuilding along the route needs to be spread across all tenures, so those in the rental market aren’t squeezed out by the impacts of the sudden arrival of new transport infrastructure.’[1]

[1] http://www.propertyreporter.co.uk/landlords/pace-of-uk-rental-growth-halves-in-2016.html

Rental growth slows again in London

Published On: December 15, 2016 at 11:42 am

Author: Em Morley

Categories: Property News

Tags: buy-to-let landlords,landlords,London rents,rental price inflation

The most recent report from HomeLet has revealed that rents in London increased by only 1.6% in the year to November. This was more slowly than all other regions of the country.

In fact, rental price inflation in the capital is now barely half the rate seen in the rest of the United Kingdom.

Rent increases

While landlords in the capital are still seeing rental increases in cash terms, they are unable to increase prices as much as in the first half of the year, with inflation at 6%.

November was only the second month in which rental increases in London did not keep up with the rest of the country. In fact, the gap is now more marked than at any time since the HomeLet index started.

During the last month, rents increased by an annual average of 3%-the fifth consecutive month in which inflation has either been flat or has fallen. A typical tenant signing up for a new tenancy during November agreed an average monthly rent of £898, in comparison to the £872 during November 2015.

Martin Totty, HomeLet’s Chief Executive Officer, noted: ‘November’s figures reflect a continuation of trends which the HomeLet Rental Index has been tracking for several months. While landlords have been able to edge rents up, the amount of the increase been slowing for a number of months, which suggests landlords understand that tenants have, or are, reaching an affordability ceiling, particularly given the uncertain economic climate.’[1]

Rental growth slows again in London

Two halves

The Rental Index from HomeLet has confirmed a year of two halves. During the opening half of 2016, UK rents rose at rates above 4%, with those in London hitting a peak of 6.2% during March.

However, since the summer, rental price inflation has slowed massively.

This year has seen a massive raft of changes for buy-to-let landlords. Increased stamp duty coming into effect in April saw landlords rushing to complete before the deadline. In addition, there have been changes in the Right to Rent guidelines and alterations to mortgage interest tax relief, to name but two alterations.

Mr Totty added: ‘It is difficult to think of a period when there have been so many external interventions in the private rental sector as yet seen during 2016: the impact of many of the changes are yet to be worked through and it’s unclear yet who will emerge as the winners and the losers.’[1]

[1] http://www.propertyreporter.co.uk/landlords/rent-rises-slow-down-in-london.html

New banning orders for rogue landlords in UK revealed

Published On: December 15, 2016 at 10:35 am

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let landlords,letting agents,property agents,rogue landlords

The Government has introduced a public consultation as part of more measures to crack down on rogue landlords and letting agents.

These proposals to find and remove rogues from the sector have been sent out in an official consultation document, with feedback requested by the 10^th February 2017.

Offences

According to the document, the orders would be put into place when rogue landlords commit more serious offences against their tenants. These measures include failing to carry out necessary work required to prevent a health and safety risk, threatening violence or illegally evicting tenants.

The proposals state that if a landlord or property agent is subjected to a banning order, they could be stopped from letting or managing a property for an indefinite period. In addition, their name would be on a national database of rogue landlords and agents.

Housing Minister Gavin Barwell noted: ‘Banning orders will allow us to drive out the worst offenders and help make sure millions of hard-working private tenants across the country are protected from exploitation. While the vast majority of landlords are responsible we are determined to tackle the minority who abuse and exploit vulnerable people.’[1]

‘As part of the Government commitment to improving standards within the private rented sector, banning orders will protect tenants and target the small minority of poor landlords and property agents. They will also help local authorities to take robust and effective action against rogues who knowingly rent out unsafe and substandard accommodation,’ he added.[1]

New banning orders for rogue landlords in UK revealed

Improvements

Under these plans, the banning orders will drive the most serious and prolific offenders to majorly improve the standard of their accommodation that they rent out, or leave the sector altogether. These bans would last for at least one year, with no maximums.

Those subjected to banning order will not be able to earn income from either renting out housing, or by engaging in letting agency or property management work.

These banning order are part of a larger range of measures brought in in the Housing and Planning Act 2016, in order to tackle rogues. This includes a database of rogue landlords and property agents, who have been convicted of offences or have received two or more civil penalties.

[1] http://www.propertywire.com/news/europe/details-planned-new-banning-orders-rogue-landlords-uk-revealed/