Posts with tag: landlords

New funding for would-be landlords

Published On: May 26, 2017 at 8:58 am

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A new £20m funding initiative has been launched with the intention of supporting a generation of first and second-time property investors

The initiative from Market Financial Solutions (MFS) is targeted at refurbishment and restoration projects in the £1.4m empty properties across Britain.

Funding

On-going until June 2018, the £20m funding drive will be made available to nationwide applications through bridging loans in the range from £100,000 to £1m.

With Britain gearing up for another General Election on June 8th and against the looming backdrop of Brexit, MFS’s property investment drive offers landlords fast access to monies required to support their short-term investment plans.

Over the next year, it is anticipated that traditional asset classes such as property will remain strongly in demand. A recent survey of property owners indicates that 88% expect house prices to increase during the next six months.

This said, many potential investors and homeowners face difficulties in gaining finance from traditional lending institutions. In turn, this is inhibiting many peoples’ investment strategies.

The most recent Bank of England data shows that 66,837 mortgages were approved for property purchases during March – a fall of 1.6% from the previous month. Loans approved for re-mortgaging also fell for the first time this year, to 42,814.

New funding for would-be landlords

New funding for would-be landlords

Strength

CEO of MFS, Paresh Raja, said: ‘In the face of seismic political events this year, the robust strength of the UK property market has certainly proved its resilience. For the sector to continue this impressive growth, support must be channelled to the aspirational investors who will lead this growth forward, a vital objective we are directly addressing through this initiative. There is tremendous value locked in a variety of properties across the nation; without the finance options in place to access them, this part of the property market will remain dormant. To support the refurbishment and restoration projects that are essential to catalyse further movement across the sector, MFS has launched FlipFinance2017 and is very excited to see the results build into fruition.’[1]

[1] http://www.propertyreporter.co.uk/landlords/20m-funding-drive-launched-to-help-budding-landlords.html

 

 

Supply of rental accommodation in London falls

Published On: May 25, 2017 at 11:39 am

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The most recent report from ARLA Propertymark reveals that the number of rental properties available in London fell substantially in April.

From 148 properties per member branch in March, this figure fell to 101 in April – a drop of 32%.

Across the UK as a whole, the number of properties managed per branch actually rose, from 183 to 185.

Rents

24% of letting agents saw landlords increasing rents during April – a fall of just 1% from March.

The number of tenants negotiating rent reductions also slipped during the last month, with 2.8% of agents seeing rent reductions – down from 3.6% in March.

In April, the volume of landlords selling their buy-to-let properties remained constant to the previous month. In March, the number of landlords looking to sell-up increased from three to four per branch for the first time since November.

Supply of rental accommodation in London falls

Supply of rental accommodation in London falls

What’s more, tenants were found to have stayed in their rental accommodation for an average of 17 months – a fall from the 18 months recorded in March.

David Cox, Chief Executive of ARLA Propertymark, noted: ‘Although the rental market in London has seen a large drop in the supply of properties available to rent, it’s a different picture in the rest of the UK where we have seen little or no change to activity since March. It’s likely we’re seeing the rest of the rental market outside of the Capital plateau as a result of the election in June, with renters potentially holding back on their property searches until after 8th June. It’s important that housing is at the top of the new Government’s agenda, as we have had two elections and a referendum in the last three years which is stalling the policy process meaning that we do not have the right houses available to provide the homes people need.’[1]

 

[1] http://www.propertyreporter.co.uk/property/rental-supply-falls-by-a-third-in-london-as-uk-plateaus.html

 

UK landlord to scrap rental deposits

Published On: May 25, 2017 at 8:51 am

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A UK landlord has moved to scrap rental deposits from 14th June 2017 for new residents. Get Living is also returning security deposits to existing residents, which will see roughly £3million released back to the UK economy.

Launched in May 2013, Get Living is the force behind the country’s biggest single-site PRS scheme at the old London 2012 Athlete’s Village – now known as East Village, E20. This site is home to over 3,000 tenants in 1,439 homes.

No Deposits

From 14th June, new residents who pass referencing checks or have a guarantor in place will not be required to pay a security deposit. In addition, as a reward for residents that have taken good care of their home and paid rent on time, Get Living will waive any cleaning costs should these amount to less than a week’s rent.

Present Get Living residents will have their deposits returned to them from early July 2017. Firstly, deposits will be returned to residents who have lived in the same East Village residence for longest, with this process expected to be complete by the end of the year.

UK landlord to scrap rental deposits

UK landlord to scrap rental deposits

Neil Young, CEO of Get Living, observed: ‘Get Living was the first to revolutionise the rental experience in the UK by removing agency fees and introducing longer term tenancies as standard. We know that the cost of living can be high so, as a responsible landlord with a long-term perspective, it is important for us to be able to identify and address areas where we can alleviate the burden on our residents. Scrapping security deposits as a pre-requirement and returning deposits to current residents is yet another step we are taking to show we are firmly on the side of renters.’[1]

‘We launched Get Living four years ago this month and in that time our average deduction from deposits has been just a few days’ rent, with the majority of our residents getting their deposits returned in full. We have great relationships with our residents and, given they are taking such good care of our homes, why should we hold six weeks’ rent? We can do this at Get Living because we have the scale and track-record to know it will work.

“Where we have led – with no fees and longer tenancies – others have followed. We hope deposit-free renting becomes the norm,’ he added.[2]

[1] http://www.propertyreporter.co.uk/landlords/uk-landlord-scraps-rental-deposits.html

 

 

 

ZPG announces hike in listings and agents

Published On: May 24, 2017 at 11:54 am

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ZPG has today published its half-year figures, which reveal a 6% increase in the number of agents and 9% rise in the total listings on its Zoopla and Primelocation portals.

This has resulted in a 22% hike in revenue for the group. 750 estate agent breaches have been to the portals in the last two years, with ZPG moving to invest in a new business that will provide an alternative to tenants’ deposits.

Rising Revenue

During the six months to the end of March 2017, revenue increased to £117.9m, with ZPG recording record traffic. Over 314m visits to the company’s websites and apps were seen in the period – 68% of these using mobile devices.

This 6% rise in agents took the total to 14,271 branches, with inventory now up over 928,000 listings.

What’s more, average revenue per partner has increased by 5%, driven by a healthy demand for portal and software products.

ZPG announces hike in listings and agents

ZPG announces hike in listings and agents

Records

Alex Chesterman, founder and chief executive of ZPG, noted: ‘Our audience grew by five per cent with a record 314 million visits to our websites and apps and we achieved record levels of brand awareness for both Zoopla and uSwitch.’[1]

‘We also made good progress on our continued product differentiation with the launch of an innovative new Move Planner tool which provides a one-stop shop for all moving related services and are pleased to announce today a strategic investment in Zero Deposit, a new business seeking to transform the lettings market by providing an alternative to tenant deposits,’ he continued.[1]

‘We remain incredibly excited by the underlying growth across each of the business divisions, our recent acquisitions and the significant cross-sell opportunities to our highly engaged consumer audience and our unrivalled partner base,’ he concluded.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/5/zoopla-reports-big-surge-in-agents-and-listings-in-past-six-months

UK property values to increase by 1% in 2017

Published On: May 24, 2017 at 9:35 am

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Categories: Property News

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A new piece of analysis suggests that UK property price growth will amount to just 1% during 2017, as the slowdown since summer 2014 continues.

In central London, where the slowdown has been more prominent, prices are predicted to fall slightly over the course of the year. Looking ahead however, values here could rise by 14.2% by 2022, according to the research from international real estate firm Knight Frank.

Property Price Rises

The firm’s research indicates that prices will rise across Britain by 2.5% in 2018, 3% in 2019 and 2020 and by 4% in 2021.

In the capital, with prices falling by 1% this year, values are expected to rise by 2% next year, 2.5% in 2019, 3% in 2020 and 5.5% in 2021.

Rents are forecasted to continue their steady rise – increasing by 1.4% this year, 2% in 2018-2021 to reach a cumulative 9.8%.

However, the report highlights the uncertainty surrounding the performance of the UK property market, such as Brexit and the slowdown in economic growth.

UK property values to increase by 1% in 2017

UK property values to increase by 1% in 2017

New-Builds

A recent slowdown in market activity can be attributed to a lack of available properties to purchase, which in turn has put more focus on the delivery of new-build homes across the UK.

Data from the Department of Communities and Local Government (DCLG) indicates that the number of new properties being built over recent years has increased. This said, levels are still way below those required to meet current demand.

The report reads: ‘The shortage of housing stock available to buy coupled with ultra-low mortgage rates have put a floor under pricing across the UK, but the question of affordability is becoming more pressing in some areas, especially as lenders still expect sizeable deposits from buyers.’[1]

‘As the UK moves closer to Brexit, any economic uncertainty could have a knock-on impact on the housing market, especially if wage growth and employment levels across the country are affected.’[1]

[1] http://www.propertywire.com/news/uk/uk-property-prices-set-grow-just-1-2017-recover/

 

Is the lettings market in London favouring tenants?

Published On: May 23, 2017 at 9:00 am

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New data reveals that private landlords in London are beginning to feel the impact of reduced tenant demand, with many being forced to cut rents to attract new tenants.

With more properties to select from, tenants are in control of the private rental market in the capital, according to the most recent analysis from HomeLet.

What’s more, the capital’s new build housing market has been particularly impacted by the slowdown in the rental market, according to London Central Portfolio’s (LCP).

Period Homes

A recent report from LCP showed that sales in London have fallen by as much as 41%, with the company suggesting that many new build properties are being left vacant as more renters are targeting period homes.

With a number of regions seeing falls in demand, LCP believes that places with vast numbers of planned new homes are, ‘really beginning to suffer.’

One of these regions is between Battersea and Nine Elms. Typically, foreign buyers look to purchase in this region as rental investments. There has been an increase in stock of 28.1% during the course of the last year. What’s more, there has been a reduction in asking rents of 6% during the last quarter.

Despite this, the number of properties actually let has fallen by 14.8% during the same period, alongside a fall of 2.8% in achieved rents.

Is the lettings market in London favouring tenants?

Is the lettings market in London favouring tenants?

Fragmentation

Naomi Heaten, CEO of LCP, observed: ‘In much the same way as we see in the sales market, there is increasing fragmentation in the lettings market, according to property type (new build or traditional stock) and by price point.’[1]

‘Alongside the oversupply of rental stock in new build heartlands, the uncertain economic outlook has resulted in tighter tenant budgets. It is therefore not surprising that recent reports indicate a 14.8% fall in the number of properties rented south of the river over the last three months and a 6% discount on asking rents,’ she continued.[1]

The research also found that the rental market in London was far stronger in areas with more limited new build potential.

In prime central London, where stock levels has risen by only 5%, rents have not been negatively impacted. In addition, they have seen an increase of 1.5% in the last three months. The number of properties being let out has also risen by 2.5% in the same period.

Heaton went on to note: ‘In contrast to the dynamics south of the river, the mainstream rental market in prime central London has continued to perform positively as demand for well-presented rental property remains high and stock remains scarce.’[1]

 

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/its-a-tenants-market-in-london