Posts with tag: landlords

North East property prices continue to rise

Published On: May 4, 2017 at 11:29 am

Tags: landlords,North East,North East property,property,property prices

Property prices in the North East have defied forecasts of a worsening UK economy to post their strongest month-on-month growth this year to date.

House values in the region rose by 1.9% during April, adding an average of £3,099 to the price of a typical property.

In March in February, prices slipped by 0.1% and in January, by 3.1%.

Values

Average regional property prices in the region are now 6% higher than 12 months ago, with the typical value standing at £9,591 greater than in April 2016.

An average North East home will currently set one back £166,566, in comparison to £163,467 at the end of March.

18 of 20 North East regions saw prices rise, with strong performances recorded in South Shields (5.4%), Blyth (4.7%) and Kilingworth and Easington (3.2%).

The only areas to see falls were Cramlington (-0.9%) and Jarrow (-0.3%.)

North East property prices continue to rise

Rents

In terms of rents, these rose by £585 in April-a rise of £9.

Increasing property prices have forced rental yields downward slightly. Property investors in the region are now seeing average returns of 4.2%.

Investors in the North East are continuing to see higher returns than those in London, where yields stand at 3.2% typically.

Good News

Ajay Jagota, founder and MD of Keep It Simple and Dlighted, said: ‘After three months of negative growth it’s very good news to see North East house prices making up lost ground over the past four weeks and in a markedly stronger position than twelve months ago, with prices the best part of £10,000 higher than this time last year.’[1]

‘The run up to a General Election generally means flat house prices as buyers and sellers adopt a ‘wait and see’ approach, and even though this election has come slightly out of the blue I’d expect to see the same thing happen in May and June, with prices moving forward again come the summer, a traditionally strong period.

Average asking prices for UK homes this week reached £313,000, all but double the North East average. When you combine that with historically low mortgage deals currently available for both owner-occupiers and investors, the North East remains a phenomenally good value location to make a home or invest in one,’ Jagota added.[1]

[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-rally-as-election-announced.html

Could rent controls kick-start a seaside town property revival?

Published On: May 3, 2017 at 9:57 am

Author: Em Morley

Categories: Property News

Tags: landlords,rent controls,seaside towns,tenants,Tories

A new report has suggested that the Conservative Party should build their election manifesto around rent controls, in order to kick-start a seaside town renaissance.

The Housing and Finance Institute believe that dysfunctional housing markets are driving decline in many coastal communities.

Trio

The report suggests that a ‘toxic trio’ of substandard housing, high volume of renters and a lack of new jobs are leaving tenants and taxpayers overpaying for properties that are not worth the rent.

As such, the Housing and Finance Institute wants to see the introduction of new time-limited and more localised rent controls in the more less-off coastal communities.

It has called for a locally assessed ‘fair value rent regime’ that would reflect a property’s location and overall quality. The Institute is additionally calling for more support from central Government for councils with communities feeling the effects of failed housebuilding markets.

Could rent controls kick-start a seaside town property revival?

Skills

In addition, it wants to see more financial and skillset support from central Government for deprived locations-where housebuilders, developers and investors do not want to purchase.

Natalie Elphicke, chief executive of The Housing & Finance Institute, noted: ‘There is a toxic trio of abnormally high proportions of rented housing, for that rented housing to be of poor quality, and a lack of job creation. Dysfunctional housing markets are proving fundamental to the spiral of decline in many of Britain’s coastal communities – and something radical must be done to turn the tide.’[1]

‘The proposals in this paper can help to break up the concentration of housing poverty and attract new high quality building and investment. Housing can be pivotal to securing jobs, growth and reversing entrenched deprivation. In particular, a new fair rents regime would significantly speed up the renewal of the most deprived areas, drive a fairer deal for tenants and taxpayers – and kick-start much needed regeneration,’ she added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/tories-urged-to-back-rent-controls-to-kick-start-a-seaside-town-renaissance

Prime rents in the West End hit record highs

Published On: May 3, 2017 at 9:05 am

Author: Em Morley

Categories: Property News

Tags: average prime rents,landlords,rents,West End

There has been a substantial increase in prime rents in the West End of London during the opening quarter of 2017, according to a new report from Savills.

Research reveals that average prime rents in the West End reached £122.30 per sq ft in the first three months of the year. This was 11% greater than the level seen at the same time last year.

What’s more, this was above the previous high of £114.31 per sq ft in the final three months of 2007.

Records

A record rent of £190 sq ft seen in March in St James’ Square helped increase the average rent in Q1 to 11% above 2016’s average prime Grade A rent of £160.41 sq ft.

What’s more, the average Grade A rent in Q1 2017 was £85.03 sq ft, 10% above 2016’s Q1 average of £77.25 per sq ft.

The West End’s take up during the opening quarter of 2017 reached 1.05 million sq ft, a rise of 1% year-on-year and 10% greater than the 10 year average. This was driven by strong demand from the tech and media sector, which accounted to 22% of take up.

Prime rents in the West End hit record highs

Stable Supply

Savills suggest that supply is still fairly stable, hitting 4.63m sq ft at the end of March. This amounts to a vacancy rate of 3.8%.

Brian Allen, director of the West End leasing team at Savills, noted: ‘The first quarter of the year has seen strong take up and rental levels in the West End, with the deal at 5 St James‘s Square helping prime Grade A rents to hit a ten year high.’[1]

‘Whilst headline rents remain strong there is some upward pressure on the level of incentives being offered to tenants, with the average rent free period on a ten year lease now 18 months, compared to the average of 13 months in Q1 2016. Nevertheless, the market remains robust,’ Mr Allen added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/5/prime-rental-levels-in-the-west-end-hit-a-new-record-high

16% rise in Stamp Duty cash, despite transaction falls

Published On: May 2, 2017 at 9:33 am

Author: Em Morley

Categories: Property News

Tags: housing market,investors,landlords,Stamp Duty

Latest figures from HMRC indicate that there has been a 5% fall in the number of transactions commanding Stamp Duty during the opening quarter of 2017, in comparison to the same period in 2016.

That is unsurprising, given that the opening quarter of 2016 saw a surge of investors looking to purchase before the additional 3% of Stamp Duty was enforced in April.

This said, the estimated receipts from Stamp Duty in Q1 2017 is £1,995m from residential transaction-16% greater than the previous year, despite a fall in sales.

Falls

The number of transactions valued between £250,000 and £500,000 slipped by 10% during the period. However, the number of ‘high Stamp Duty’ transactions during the opening three months of the year (those for homes over £500,000) fell by 14%.

This amounted a total of 22,600-the lowest quarterly figures for two years.

16% rise in Stamp Duty cash, despite transaction falls

Shaun Church, director of the mortgage broker Private Finance, said: ‘The statistics make it clear that the upper-end of the market has unfairly borne the brunt of … tax reform. A healthy property market needs movement and fluidity at all levels and across all tenures, but it appears that the changes have unfairly targeted the upper-end of the market which does little to help the cause of first-time buyers.’[1]

Matt Robinson, chief executive at the Nested Agency, also noted: ‘The government’s strategy of raking in yet more money from SDLT is working well for them but the result is a near failure for the health of the market. The liquidity of homes in London has slowed to a worrying level and with a snap election just weeks away, the normally busy spring market is bound to suffer further uncertainty.’[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/4/government-trousers-16-more-stamp-duty-despite-transactions-dip

Labour propose minimum standards for sector

Published On: May 2, 2017 at 8:44 am

Author: Em Morley

Categories: Landlord News

Tags: general election,landlords,rental market,tenants

The General Election campaigns are beginning to gather pace, ahead of the big vote on the 8^th June.

Labour has now moved to pledge a ‘consumer rights revolution’ that will introduce legal minimum standards for all rental homes.

Proposals

These proposals, which will be introduced should Labour win the election, include a raft of new standards that would see electrical safety, sanitation and cooking facilities. This is to ensure that homes are, ‘fit for human habitation’ according to shadow housing secretary John Healey.

Landlords who fail to meet this tougher standards could face fines of up to £100,000.

Healey feels that these new measures will allow tenants to, ‘call time on bad landlords.’

In response, the Conservatives said that these standards added up to a tenants tax, that will only serve to push up rents. This has been met with scorn from Labour, given the fact that the Tories have introduced increased Stamp Duty surcharges and phased out mortgage interest tax relief.

Labour propose minimum standards for sector

Renter’s Rights

Mr Healey commented: ‘Our homes are at the centre of our lives, but at the moment renters too often don’t have basic consumer rights that we take for granted in other areas. In practice, you have fewer rights renting a family home than you do buying a fridge-freezer. As a result, too many are forced to put up with unacceptable, unfit and downright dangerous housing.’[1]

‘Most landlords provide decent homes that tenants are happy with, but these rogue landlords are ripping off both renters and the taxpayer by making billions from rent and housing benefit letting out sub-standard homes. After seven years of failure the Conservatives have no plan to fix the housing crisis,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/labour-unveil-plans-to-call-time-on-bad-landlords

Leeds Building Society launch lowest ever five-year BTL product

Published On: April 28, 2017 at 11:50 am

Author: Em Morley

Categories: Finance News

Tags: Buy-to-Let,buy-to-let mortgage,landlords,Leeds Building Society

Leeds Building Society has today moved to announce a new five year fixed-rate Buy-to-let mortgage at 3.10%.

This deal comes with a low £199 fee and also comes with free valuation. What’s more, fees assisted legal services are available for standard remortgages.

Market Leading

Jaedon Green, Director of Product and Distribution at Leeds Building Society, said: ‘This market-leading Buy to Let deal is available for purchase or remortgage up to 70% LTV.’[1]

‘Buy to Let remortgage activity is highest at this LTV level and landlords appear to have been acting to minimise their costs and manage profitability as the Government’s tax changes began to affect this market.’

‘Five year fixed rate products remain the choice for borrowers looking for longer-term security over their monthly repayments, making it easier to budget, which can be particularly useful when managing a privately rented property,’ he continued.[1]

Leeds Building Society launch lowest ever five-year BTL product

Alongside the new five-year fix, the Society has refreshed its wider buy-to-let range. This includes the addition of new purchase-only two-year fixed rate mortgages at 1.99%, up to 60% LTB.

[1] http://www.propertyreporter.co.uk/finance/leeds-launch-their-lowest-five-year-btl-product.html