Posts with tag: landlords

Homeowners more content than renters

Published On: June 8, 2017 at 8:50 am

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Categories: Property News

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The majority of property owners in the UK are pleased with their property – with those aged over 55 most content.

However, tenants are not as pleased generally with where they live, according to new research from TheHouseShop.

Happiness

In all, 83% of home owners said that they were content with their property, in comparison to 54% of tenants renting a property from a private landlord.

What’s more, tenants were more likely to be more unhappy with their property. 21% of tenants asked said that they were either fairly or very unhappy with their current dwelling, as opposed to 8% of owners.

Nick Marr, co-founder of TheHouseShop, believes that the findings are not overly surprising, given groups such as Shelter and Generation Rent have long called for better standards and protection for tenants.

Homeowners more content than renters

Homeowners more content than renters

Marr observed: ‘For home owners, the commitment to a property is much more permanent than it is for renters, and buyers will spend a lot of time and effort choosing their ideal property and carrying out improvement works over the years to perfect it.’[1]

‘Tenants, on the other hand, are rarely allowed to make even superficial changes or improvements to their homes, so it is highly unlikely that they will ever achieve the same level of happiness as home owners,’ he added.[1]

Divide

The research uncovered a clear divide between the young and old age groups. The over 55’s were by far the happiest, with 85% happy with their property.

On the other hand, 25 to 34 year olds were least likely to be very happy with their properties, with only 16% stating that this was the case. Only one in twenty over 55’s said that they were unhappy with their home.

[1] http://www.propertywire.com/news/uk/owners-uk-happy-home-private-rented-sector-tenants/

Rise in use of letting agents could be unsustainable

Published On: June 5, 2017 at 11:21 am

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Categories: Landlord News

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A recent rise in the number of landlords using letting agents to help manage their property may not be sustainable, according to a new report.

Last week saw research from the National Landlords Association reveal that 61% of landlords currently use a letting agent – a 7% increase from the final quarter of 2016.

Abnormal

The increase was described as a break from the norm by the National Landlords Association, with the proportion of landlords using an agent remaining relatively consistent during the last few years.

In addition, the report found that the proportion of landlords self-managing their property has slipped by nearly 10% during the last year.

Richard Price, executive director of the UK Association of Letting Agents, believes that the fact more landlords are relying on letting agents is testament to the service that many provide in the sector.

Mr Price said: ‘It is an uncertain time for anyone who owns a buy to let property, so the steady hand of a reputable agent is exactly what many landlords are looking for right now.’[1]

Rise in use of letting agents could be unsustainable

Rise in use of letting agents could be unsustainable

Changing Sector

However, recent changes in buy-to-let taxation, coupled with the proposed ban on charging fees to tenants, could mean a number of landlords will be searching for different ways to save money. This could see less landlords using services provided by agents.

Chief Executive of the National Landlords Association, Richard Lambert, observed: ‘As landlords plan ahead to compensate for the tax changes over the next few years we would expect to see the number who use an agent to slowly fall away, and for more to start considering whether they are able to manage their properties themselves.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/6/rise-in-number-of-landlords-using-letting-agents-may-not-be-sustainable

 

Manchester still a hotspot for buy-to-let

Published On: June 5, 2017 at 8:57 am

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New research from Armistead Property has revealed that Manchester remains one of the top 10 places in the UK for rental growth.

Average yields in the city were found to total nearly 9%.

Manchester Rents

The top postcode area in terms in rental yields in the region was M6, which covers Pendleton, Claremont, Langworthy and Salford. Rental yields here average at 8.84%, with typical monthly rents of £1,034.

With this postcode area situated close to the middle of Manchester and the University of Salford, this postcode region is popular with students and young professionals.

The M14 postcode area, covering Moss Side, Rusholme and Fallowfield, sees average rents of just over 8%. Once again, this postcode is popular with students-due to its close proximity to the University of Manchester campus.

Other postcode regions of the city offering good returns are M5 and M38, offering returns of 8% and 7% respectively.

Revival

Peter Armistead, Director of Armistead Property, observed: ‘Manchester has undergone a revival following significant investment, which has funded major regeneration and brought new jobs to the powerhouse of the North. Manchester has seen £800 million invested in the Airport City, £235 million for the Sir Henry Royce Institute for Advanced Materials and The Factory, with £110 million dedicated to the arts. Employment in the city is forecast to get an additional boost, with expected growth of 3.8% between 2015 and 2020.’[1]

‘It’s no surprise that both UK and international investors are queuing up to purchase BTL property.  Manchester beats London hands down on affordable property prices. Over the last three years, 45% of residential sales across the city were completed for less than £125,000. Manchester also offers much better rental yields, with between 8-9% in some postcodes, compared with an average of 4-6% in London,’ he continued.[1]

Manchester still a hotspot for buy-to-let

Manchester still a hotspot for buy-to-let

Young Demand

Moving on, Mr Armistead noted that, ‘There has been a surge in demand for rental accommodation with increasing numbers of students and young professionals working, or studying in the City. Manchester’s population is growing and is expected to surpass three million by 2035.’

‘The housing market in being bolstered by a major regeneraton north east of Victoria station, where 8,000 new homes are being built over the next 10-15 years. There’s also a £1bn plan for another 8,000 homes, including the conversion of the Murrays’ Mills and a further 3,000 homes on the former ITV Granada studios at St John’s Quarter,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/manchester-remains-a-top-btl-hotspot.html

 

More landlords are using a letting agent

Published On: June 1, 2017 at 9:33 am

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Categories: Landlord News

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A survey of property investors has uncovered that the number of landlords using a letting agent to assist them in managing their property has risen since the end of 2016.

61% of landlords said that they presently use a letting agent to manage their properties- an increase of 7% since the final quarter of last year. This rise goes against tradition, with the number of landlords using an agent normally more consistent in number.

Self-Managing Decrease

In addition, the research shows that the proportion of landlords choosing to self-manage their property has fallen by 7% in the last year – from 46% to 39%.

What’s more, more landlords in the North East were revealed to use an agent in comparison to any other region of England. This said, agent usage is greater in Scotland with 79%.

On the other hand, the North West is the region where landlords are least likely to use an agent, with falls of 5% since the end of 2016.

The news of landlords favouring the use of letting agents is interesting, given the proposed ban on charging fees to tenants.

More landlords are using a letting agent

More landlords are using a letting agent

Changing Trends

Richard Lambert, CEO at the National Landlords Association, observed: ‘As landlords plan ahead to compensate for the tax changes over the next few years we would expect to see the number who use an agent to slowly fall away, and for more to start considering whether they are able to manage their properties themselves.’[1]

‘However, this sudden spike, which is completely out of step with recent trends, completely turns this theory on its head. The big question is whether or not it’s a blip or if it will continue to rise,’ he added.[1]

Richard Price, Executive Director at UKALA, also stated: ‘There have been some regional fluctuations, but overall these findings show that an increasing proportion of landlords rely on agents at present, which is testament to the professional work undertaken by the vast majority of agents in the sector.’[1]

‘It’s an uncertain time for anyone who owns a buy-to-let property, so the steady hand of a reputable agent is exactly what many landlords are looking for right now.’[1]

[1] http://www.propertyreporter.co.uk/landlords/letting-agent-use-sees-sudden-spike-of-activity.html

Many investors struggling to secure mainstream funding

Published On: May 31, 2017 at 8:00 am

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Categories: Finance News

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Around 75% of buy-to-let investors were able to raise alternative finance during the last year, after struggles to obtain mainstream funding.

According to mtf data, 44% of these investors saw affordability as their main obstacle in obtaining mainstream funding- followed by adverse credit (34%) and stricter lending criteria (22%).

Alternative Lending

This said, 47% of investors took out a secured loan as an alternative, with 39% opting for a bridging loan.

Another three-quarters of landlords questioned intend to expand their portfolio during the remainder of 2017. Encouragingly, 67% are looking in London, with 33% targeting the South East. This will come as a relief following reports of landlords leaving the sector as a result of the recent alterations to mortgage interest tax relief.

When asked how the sector could be improved to help landlords, the majority responded by saying that they would like the see the additional 3% Stamp Duty surcharge on buy-to-let properties scrapped.

Many investors struggling to secure mainstream funding

Many investors struggling to secure mainstream funding

Tough

Tomer Aboody, director of mtf, noted: ‘The results from our Q1 Property Investor Survey reflect the impact of stricter affordability and stress testing from lenders on professional property investors’ ability to obtain mainstream funding.’[1]

‘It’s certainly been a tough 18 months for landlords but alternative lenders are stepping in to meet the needs of borrowers,’ Aboody added.[1]

[1] http://www.propertyreporter.co.uk/finance/majority-of-property-investors-unable-to-secure-mainstream-funding.html

Record-low interest rates to drive property demand

Published On: May 26, 2017 at 11:50 am

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Categories: Finance News

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Record-low borrowing levels should increase demand for property across Britain during the coming months, according to a number of various property experts.

This comes despite a recent fall in the number of mortgage approvals for property purchases. Gross mortgage lending fell by £18.4bn in April, down 11% from March, according to the most recent data from the Council of Mortgage Lenders (CML).

Encouragement

Despite this fall in lending figures, a number of housing market analysts predict that low mortgage rates will lead more people to borrow money in order to invest in property.

Jeff Knight, marketing director at Foundation Home Loans, said: ‘Although we’ve seen a slight dip in mortgage lending levels, the housing market seems to be enjoying a return in buyer confidence.’

‘First-time buyers and remortgaging activity continued to drive lending volumes throughout April, as low interest rates have, and will continue to, support demand.’[1]

Record-low interest rates to drive property demand

Record-low interest rates to drive property demand

John Eastgate at OneSavings Bank said that he wasn’t surprised to see a fall in lending levels following the recent rise in inflation. However, he also expects to see conditions in the market improve.

‘This [the fall in mortgage activity in April] is likely to be only temporary and I don’t see any long term trend being established by these figures,” he said. “Inflationary pressures will pass and low rates will continue, and the mortgage market will remain robust,’ he noted. [1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/5/low-interest-rates-will-continue-to-support-demand-for-property