Posts with tag: investment property

Two-thirds of landlords live within ten miles of investment

Published On: September 12, 2016 at 11:32 am


Categories: Landlord News

Tags: ,,,

An interesting new survey has revealed that 65% of landlords live within ten miles of their buy-to-let investment property. In addition, these landlords manage day-to-day maintenance of the property themselves.

Research into more than 10,000 addresses from Simple Landlords Insurance also shows that around one-fifth of landlords reside within one mile of their buy-to-let property. 46% live between one and ten miles away.

Another 13% live between ten and twenty-five miles from their property. Just 15% of landlords live more than 50 miles away from their investment.

Close comforts

Findings from the report suggest that people prefer to invest in properties in areas that they know well. This is despite advice from some property professionals that they could get higher rents further afield.

Further data from the report indicates that 65% of landlords made the decision to invest in a property, with 17% describing themselves as so-called accidental landlords. 9% said that they had purchased property specifically for family members to live in.

45% said that they own a single rental property, with 40% owning between two and four. 15% said they have a portfolio of 5 or more properties.

Two-thirds of landlords live within ten miles of investment

Two-thirds of landlords live within ten miles of investment

Manual maintenance

65% of landlords actively manage the property themselves, while 24% use a letting agent to find tenants and then take over. 41% of landlords said that they do everything themselves, while 35% use an agent to do everything.

Alex Huntley, from Simple Landlords Insurance, noted, ‘we are seeing an increasing trend of savvy landlords taking direct control of how their property is let and managed and becoming much more self-sufficient. While it can be easy to bash landlords as faceless investors, these results show they are more likely to be part of the community they invest in and take a personal interest in making sure their property is well maintained and tenancies are long-term.’[1]

‘We are also seeing a growing demand from landlords to be able to manage their insurance policies online 24/7 and to buy flexible and scalable policies as their investments change,’ Huntley added.[1]


Looking to Buy a UK Holiday Home? Find the Best Rental Returns in Cornwall

Published On: August 8, 2016 at 11:07 am


Categories: Landlord News

Tags: ,,,,,

If you’re thinking of tapping into the UK holiday home market in order to expand or begin your property portfolio, look to Cornwall for the best rental returns in the country…

Cornwall continues to benefit from the staycation trend, with Visit England reporting a 10% year-on-year increase in the number of people holidaying in the UK in the first quarter of the year.

With many concerned over exchange rate fluctuations, port and airport delays, and a general desire to stay out of travel trouble, the amount of British holidaymakers staying in the UK should rise even further this summer.

So, why Cornwall?

If you find a holiday home that has sea views, mod cons and is within walking distance of a beach, you’re onto a winner, says Miles Kevin of Chartsedge, a specialist coastal and rural holiday homes agent.

Looking to Buy a UK Holiday Home? Find the Best Rental Returns in Cornwall

Looking to Buy a UK Holiday Home? Find the Best Rental Returns in Cornwall

Potential rental returns are also strong in the county, adds Kevin.

“Since the Brexit result, there has been an increase in buyers seeking investment homes in the lower price ranges who plan to use the property themselves but also earn some rent,” he explains. “Our current best seller on the north coast is Bay Retreat, four miles from Padstow, which provides a £10,000 annual income for two years.”

The development in St Merryn includes 28 low-maintenance, modern properties based around a shop, pub and tennis courts. The open-plan homes boast steel-and-glass balconies and timber-decked patios. Prices for the remaining two-bedroom, 700 square foot properties start from £149,000 on a 999-year lease.

As a growing foodie destination, Cornwall attracts a stylish crowd from London and the South East. Padstow, in particular, sees visitors travel from across the country to enjoy the hometown of seafood chef Rick Stein and Jamie Oliver’s Fifteen restaurant.

Budget-conscious buyers should focus on the southeast coastal spots of Cornwall. The twin villages of Cawsand and Kingsand at the head of the Rame Peninsula are just ten minutes away from the centre of Plymouth on the ferry, while still off the beaten track.

Visitors come to the villages to sail and kayak, as well as enjoy the two sandy beaches and pubs and cafes. A tall, four-bedroom house with direct sea access in Cawsand is currently on the market for £460,000.

But what does someone who owns a holiday home in Cornwall think?

Anne Hibbert bought a holiday home in East Looe back in 1987, when her husband worked in the City of London and they had no grandchildren. Now, they have 11, aged from five to 28, all of whom learned to swim in their pool overlooking the sea.

She says: “We have a full sea view from our house with our own land in front and Looe Island to the right. We are totally tucked away, not overlooked. We really value the privacy, especially in high season. We are only 18 miles from Plymouth, but we don’t see many holidaymakers. In Fowey or Salcombe, you could probably add another number in front of the value of homes.”

Anne has made changes to her four-bedroom holiday home over the years, but has also witnessed changes to Looe: “It is still essentially a fishing village, not a yachtie place, but the quality of new shops, particularly in the past three years, has improved. Once it was just fudge shops, but now we have farm shops, excellent butchers, even artisan fish and chip shops.”

The Hibberts are selling their property for £1.25m.

Will you decide to take advantage of the huge numbers of Britons staying in the UK for their holidays?

If you do, remember to take out specialist UK holiday home insurance with a market-leading provider.

The Just Landlords policy includes additional covers that could affect anyone with a holiday home in the UK. Take a look and get an instant quote now:

Will the buy-to-let market move forwards?

Published On: March 17, 2016 at 12:15 pm


Categories: Landlord News

Tags: ,,,,,

With the Budget taking place in London yesterday, the Financial Services Expo also occurred, north of the border in Glasgow.The Expo saw the intermediaries in attendance asked what their views were on potential buy-to-let growth in the next two years by Ian Boden, Head of Commercial Mortgages at Aldermore Bank.


There was a split response to the question, with 42% of respondents expecting growth in the next two years. However, 33% said they believed there would be a decrease.

Mr Boden noted that, ‘a recent survey showed that 29% of landlords say that they are looking to increase their portfolios, so it’s not a market that’s looking to slow down. Tax and regulation changes were at the forefront of things to consider when looking at how the buy to let market could alter in the coming months.’[1]

‘Most landlords will take this in stride. Many will still see buy to let as being an attractive investment, where they can continue to drive returns through rentals,’ he added.[1]

Removal of uncertainty

Stuart Law, CEO at Assetz for Investors, noted, ‘in my view, the uncertainty has been removed from Buy-to-Let taxes in the Budget. The Budget has clarified that the 3% additional stamp duty will apply to second residential properties that are bought by individuals and companies alike. It has become a cost of investing in the best asset class for several decades and at the forecast growth rate of 5% in house prices this year will take just 7 months to get back! So let’s move on.’[1]

Will the buy-to-let market move forwards?

Will the buy-to-let market move forwards?

‘In addition, it still looks like companies that are used to purchase buy-to-let property will be able to fully offset their mortgage interest against income and achieve full tax relief. The many and varied company tax reliefs such as a 17% tax on profits and capital growth could also mean that setting up a company actually made matters better for a BTL investor than before the tax changes when investing privately,’ Law continued.[1]


Grianne Gilmore, head of UK residential research at Knight Frank, observed, ‘bulk purchases of residential units at the lower value end of the scale will be most affected by the Chancellor’s move, which seems to counter to the Government’s pledge to provide more affordable housing. But the rental market is an entrenched and growing part of the UK housing market and as such, institutional investment in this asset class will likely continue to grow.’[1]

Celebrity property guru Sarah Beeny acknowledged, ‘the new stamp duty rate increase for buy-to-let investors is definitely coming in and I think it will help to slow price rises at the entry end of the market, which is great news for first-time buyers. I don’t think hitting buy-to-let landlords is unreasonable as helping to correct the market shouldn’t be at the expense of the tax payer, so I fully support the rise in stamp duty on investment properties.’[1]



Five Reasons to Invest in UK Property

Published On: December 6, 2014 at 3:43 pm


Categories: Finance News


It is believed that the new Stamp Duty rules in the UK will enhance the buy-to-let market.

The new charges will offer house buyers at the low and middle end of the market the best savings. Stephen Ludlow, Chairman of letting agency Ludlow Thompson expects that, as buy-to-let investors typically buy properties below £937,500, the new rates will boost almost all landlords in the market.

Ludlow says: “The changes in Stamp Duty will see the biggest increase in net returns for more modestly investments such as smaller properties in Zone Three of London, city centre apartments, flats above shops, ex-local authority property, and property in secondary locations.

“The reforms could encourage those who may have been delaying their purchase until after the election to reconsider. The new rates should also provide a boost to the sales market and result in an increased number of purchases in this usually quiet time for residential property deals.”1

Managing Director of Sequre Property Investment, Graham Davidson, also thinks that the changes will benefit the buy-to-let sector. For instance, if an investor buys a high-end two-bedroom Manchester city centre flat for £150,000, their Stamp Duty will now be just £500, saving them £1,000.

Davidson explains: “However, the impacts on the £925,000-plus market will certainly be felt throughout the industry, in particular by the higher end London property market. We would expect to see this contribute to a further slowing of the market there.”1

Five Reasons to Invest in UK Property

Five Reasons to Invest in UK Property

Group Chief Executive of Countrywide, Alison Platt, thinks that the changes will bring more owner-occupiers to the property market. She says: “So for those who are thinking of selling their property, there has never been a better time. Equally for buyers, a stable interest rate environment and the availability of a range of attractive mortgage products means that now is an ideal time to purchase a home.”1

Head of Haus Properties, Jamie Lester, however, believes that the new rates will have repercussions on the London market, especially in the £1.5m to £2m price range.

He says: “This market has been especially active with buyers sticking below the 7% Stamp Duty and proposed mansion tax thresholds. These buyers will not have to pay a significantly higher amount.

“For example, someone purchasing a £1.9m property would have paid £95,000 under the old Stamp Duty rules, whereas under the reforms they will be paying almost £50,000 more at £141,750. However, those buying just above £2m won’t be quite so heavily hit, for example, someone purchasing at £2.1m will now be paying £165,750, an increase of £18,750.”1

Managing Partner of property buying agency Black Brick, Camilla Dell, does stress that the old Stamp Duty scheme was desperate for reorganisation.

She says: “For 98% of the UK population, these changes are therefore clearly good news. But there is equally no doubt that these measures will hit property values in London and the South East and significantly slow the market.

“Deals that have yet to complete but have been agreed will now need to be renegotiated to reflect the change and it is inevitable that a number of these will now fail to complete.”1

Dell thinks that the problem will particularly affect those at the top end of the market, properties over £10m, as buyers will now be required to pay an extra £50,000 in Stamp Duty for every £1m above the previous £2m threshold. For example, if someone buys a £20m home, they will pay an additional £1m in tax.

Dell continues: “While we accept that Stamp Duty is a one off purchase tax that the majority of high end property buyers can comfortably afford to pay, these latest changes are likely to have a pronounced impact on market conditions in the coming months.

“The trend of investors focusing on lower priced property will continue. We predict that the sub £1m market will rally as a result of the new changes and we will see over demand and under supply. There will be an immediate impact on deals already agreed but which have not yet exchanged. In particular, chains may well fall to pieces if the increased tax means that purchasers can no longer afford the property they are buying.

“Given the time of year, many buyers may now wait until the New Year for the market to settle. We also predict that there will be a complete shift in the pricing structure of the market especially at £2m. We will now see estate agents marketing properties at £2,050,000 for example, whereas previously there was a pricing void between £2m and £2.2m due to the increase from 5% to 7% at £2m.”

Dell also explains that the appeal of the London property market stems from the stability in this area: “This constant political intervention must have the effect of breeding some uncertainty.

“However, we have been here before, and the market has not suffered. Only time will tell, but our view is that the new changes will simply be prices into what buyers are now prepared to pay for a property, and renegotiations will now be rife.”1

Head of Research at Strutt & Parker, Stephanie McMahon says that there is no need for mansion tax: “It was almost universally recognised that our Stamp Duty system was out of date and in desperate need of modernisation. The old thresholds were acting like invisible barriers and making the market very sticky in places.

“In the short term, current ongoing transactions will also be impacted. When any new tax is enforced, this inevitably causes disruption.

“However, keeping the status quo was an unlikely outcome. Making this change immediate was sensible as it leaves no room for speculation and will not cause any further uncertainty, which has been so damaging to our housing market around taxation changes in recent years. In the long term, this new system shouldn’t cause significant market disruption over an extended period of time.”1










Investors Look at New Property Types

Published On: October 20, 2012 at 4:18 pm


Categories: Property News

Tags: ,

Investors Look at New Property Types

Investors Look at New Property Types

Landlords may still favour flats and terraced houses when looking at buying to let, however, they are beginning to broaden their choices by investing in other types of property, according to Paragon Mortgages.

Paragon Mortgages’ latest research found that 58% of respondents said that during the last quarter of 2012, they would look to invest in flats. 58% also said terraced houses, 30% in semi-detached homes, and 21% in detached properties. Of the landlords surveyed, 16% says that they expected to increase their portfolio this quarter.1

The rise in landlords looking to invest in larger homes may mirror the amount of families looking to rent, rather than buy. A lot of those who would have previously bought a house are unable to get mortgages, or cannot sell their house but need to move away, so are renting elsewhere.

Managing Director of Paragon Mortgages, John Heron, says: “This responsiveness of the private rented sector to changes in the shape of housing demand is one of the major strengths of the sector and it would be good to see policymakers work with private landlords to make more of this capability.”1

Typically, student accommodation and Houses in Multiple Occupation (HMOs) generate the highest yields for landlords, however, they are often more difficult to manage. Landlords renting to families may not experience such high returns, but may have an easier job to do.