Posts with tag: landlords

Will ban on agents’ fees be scrapped due to the election?

Published On: April 25, 2017 at 9:05 am

Tags: ban on letting agent's fees,fees,landlords,letting agents,rental market

The Residential Landlords Association has moved to suggest that the upcoming General Election on June 8^th could see the proposed ban on letting agents’ fees being shelved.

It is predicted that the Government could be left with new priorities on the back of the election result, which could see the ban abandoned.

Consultation

Just last week, the Department of Communities and Local Government abandoned the workshops with letting agents-which were previously at the heart of the formal consultation process.

Despite the consultation itself continuing, the abandonment of the workshop has prompted questions in the industry.

Policy Director of the Residential Landlords Association, David Smith, wrote on the organisation’s website: ‘There is now a possibility that the entire policy will be lost if a new Housing Minister has other things which capture his attention more strongly.’[1]

Will ban on agents’ fees be scrapped due to the election?

Delayed

Mr Smith’s warning comes alongside a warning highlighting other issues which could be delayed or scrapped depending on the election result.

One of these is the Homelessness Reduction Bill, which has been passed by Parliament but has yet not received Royal Assent required to become law. What’s more, there are regulations that need to be put in place to set up a database of rogue landlords and banning orders.

Smith said: ‘Regulations were expected shortly to start the process of making this happen and the IT project that underpins the database was also in progress. Again these are now trapped without a Minister to push them forward for the next month…The October deadline must now be in doubt.’[1]

In addition, the Housing and Planning Act included provisions about Client Money Protection becoming mandatory for letting agents.

Concluding, Smith noted: ‘There were no further consultations expected in these areas but there were working group reports which needed approving and regulations were again to be drafted to implement the reforms. Yet again this will be at risk of delay.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/4/fees-ban-whole-policy-may-be-lost-thanks-to-election-warns-trade-body

Average UK property prices to rise by 2.2% this year

Published On: April 20, 2017 at 12:10 pm

Author: Em Morley

Categories: Property News

Tags: landlords,property market,property prices,UK house price growth

The average UK house price growth will hit 2.2% this year-a rise of £4,460, according to property consultancy BNP Paribas Real Estate.

If the forecasts are true, this means that the average price of property in the UK will hit £210,400 come Christmas.

Uncertainty

The predicted rise comes despite perceived market uncertainty surrounding the snap General Election called for June 8^th, alongside the ongoing Brexit confusion.

BNP Paribas Real Estate suggests that even London house prices will return to growth in 2017, increasing by 1.3% by the end of the year.

Over the next four years, prices in the capital are predicted to increase by 6.8% to £505,297.

John Slade, UK chief executive at BNP Paribas Real Estate, noted: ‘The big debate in London is the extent of the impact on the £1,000 to £1,500 per square foot market. While we have seen some adjustment, people now realise that high stamp duty may be here to stay and pricing has adjusted accordingly. While 2017 may be a year of relative stagnation this market should return to stronger growth thereafter.’[1]

Average UK property prices to rise by 2.2% this year

Trends

Simon Durkin, UK head of research at BNP Paribas Real Estate, also observed: ‘At a practical level, the story will become less about regional trends, with growth and activity focused on micro markets with a strong business and consumer economy. For example the North East features an extremely wide range of growth at a city level, with Newcastle Upon Tyne performing significantly more strongly than the regional average and likely to experience a less dramatic down cycle.’[1]

BNP Paribas Real Estate’s regional estimates for average property price growth by region by the end of 2020 are:

London +6.81%
South East + 17.29%
East Anglia +8.72%
East Midlands +13.07
West Midlands +13.59%
South West +22.21%
North West +7.63%
Yorkshire and Humberside +6.04%
Wales +4.26%
Northern Ireland +0.08%
North East -1.49%

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/4/housing-market-good-news-price-growth-over-10-by-end-2020

Women now account for 40% of landlords

Published On: April 20, 2017 at 9:57 am

Author: Em Morley

Categories: Landlord News

Tags: female landlords,landlords,rental market,women

Women now account for two in five landlords, with most using property in order to top up their monthly income.

Analysis of tens of thousands of landlords from Simple Landlords Insurance shows that 40% of landlords are now women. In comparison, just 17% of SME owners are female, which indicates that property could be moving towards equality at a quicker pace than other industries.

Goals

The investigation also showed that male and female investors have different goals for their investment. 63% of female landlords said using rent for monthly income was their goal, compared to 53% of men.

In addition, the research found that women are more likely than men to have become accidental landlords. 48% of female landlords said that they were ‘deliberate’ buy-to-let investors, in comparison to 61% of men.

Women were found to be more likely to have become landlords after moving in with their partner and renting out their own property.

Women now account for 40% of landlords

Acceptance

What’s more, female landlords are more likely to provide rental accommodation to a more diverse spectrum of tenants than men.

35% of female landlords said that they would rent their property to housing benefit tenants, in comparison to 25% of men. Women were also found to be more inclined to renting to students, pensioners and single tenants.

Alexandra Huntley, Head of Operations at Simple Landlords Insurance, observed: ‘As recently as 1970 women could be refused a mortgage without a male guarantor. But buying, selling, renovating, and renting property is no longer just for the boys. Those stereotypes are firmly consigned to history. Women have been steadily gaining ground over the last 50 years and are increasingly gaining financial independence through property investment.’[1]

[1] http://www.propertyreporter.co.uk/landlords/rise-of-the-modern-landlady.html

Is the mortgage market showing signs of stability?

Published On: April 20, 2017 at 9:12 am

Author: Em Morley

Categories: Finance News

Tags: landlords,mortgage market,mortgages,rental market

The most recent analysis from Mortgage Brain has revealed that the cost of mainstream mortgages continues to show signs of stability.

According to the report, there has been little movement in the market during the last three months.

Mortgages

Data shows that the cost of the lowest rate five year fixed mortgage (2.55%) fell by just 1% since January. In addition, the cost of a 60% LTV two-year fixed rate is only 1% than at the beginning of the year.

A 90% LTV two and three year fixed and a 60% LTV fix are only 0.2% cheaper than they were three months previously.

In comparison, a 60% LTV two, three and five-year tracker have all remained static.

Despite the short-term analysis showing little movement, the most recent product data analysis from Mortgage Brain shows year-on-year reductions in the overall cost of mainstream mortgages.

Is the mortgage market showing signs of stability?

The lowest 90% fixed rate now costs 5% less than it did at this time last year, while 60% LTVs costs 4% less than in April 2016.

Mark Lofthouse, CEO of Mortgage Brain, noted: ‘Our latest product data analysis shows that there’s little to get excited about in terms of rate and cost movement over the past three months. Following the long period of record lows, however, our short terms analysis can be seen as another sign that were moving towards a period of cost and rate stability, or even potential rises.’[1]

[1] http://www.propertyreporter.co.uk/finance/has-stability-arrived-in-the-mortgage-market.html

One in four would not tell their landlord about damage!

Published On: April 18, 2017 at 2:06 pm

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,property damage,rental market,tenants

A new survey from TheHouseShop.com has revealed that one in four tenants wouldn’t inform their landlord if they made significant damage to their rental property.

Data from the report shows that while 15% of people would hire a professional to repair the damage incurred, over one in ten would attempt to fix issues themselves!

Damages

58% of respondents said that they would report any damages to their landlord, but 27% said that they would not.

Of the 27%:

*11% would attempt to fix damages themselves

* 15% would call on a professional

*Only 1% would hide the problem and hope for the best!

Of those honest 58% of respondents:

*24% would offer to pay the repair bill in full

*7 would contribute to the repair bill

*27 would wait and see if they were required to pay anything

One in four would not tell their landlord about damage!

Accidents

Nick Marr, Co-founder of property marketplace TheHouseShop.com, noted: ‘While the vast majority of tenants will not actively try to do damage to a property, accidents do happen, and even well-meaning and reliable tenants can end up inflicting significant damage during their tenancy.’[1]

‘The best advice I could give to landlords would be to encourage an open and honest relationship with their tenants, so that tenants don’t feel scared or nervous about reporting any damages as soon as they happen. Having a direct relationship with your tenants, as opposed to using a third party agent or management service, can be a great way to build trust and avoid any nasty surprises further down the line. However, it is important to remember that landlords should always conduct thorough checks and references on any potential tenants before they move into the property. That way you can hopefully avoid the nightmare tenant horror stories that so many landlords can recall in an instant,’ he added.[1]

[1] http://www.propertyreporter.co.uk/landlords/1-in-4-admit-they-wouldnt-own-up-to-landlord-about-damage.html

Ltd company landlords now own 20% of UK rental properties

Published On: April 18, 2017 at 10:19 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,company landlords,landlords,rental market

The most recent report from Countrywide has revealed that the number of properties being let by company landlords saw the largest year-on-year rise during Q1 of 2017.

These landlords are now enjoying a 20% share of the market, which is the highest proportion since records began in 2010.

Rises

Countrywide suggests that alterations to tax relief on rental properties, as announced in the 2015 Spring Budget, could be behind the increases.

Landlords letting properties in the capital are most likely to own their own property through a limited company, with 27% of properties let here being owned through this measure.

In fact, company landlord lets drive both the top and bottom of the rental market, with the most and least expensive properties more likely to be owned by a company landlord. During the last year, one quarter of homes let by a company landlord cost less than £500 pcm.

Ltd company landlords now own 20% of UK rental properties

Rents

Rents slipped in March 2017, with the cost of a new let 0.3% lower than it was in the same month last year. The average rent for a new let in Great Britain is now £928-£3 less than one year ago.

This fall in growth was driven by London, the South West and Wales, where rents fell by 0.4% 0.2% and 6% respectively.

Johnny Morris, Research Director at Countrywide, noted: ‘The number of rented homes owned through a company is on the up. The incoming tapering of mortgage tax relief is likely driving the increase. Companies are generally taxed more favourably, particularly with recent changes by government to tax relief, so in many cases landlords can make cash savings by operating through a company rather than as an individual.’[1]

‘Rents fell again in March, mostly driven by falls in London. Stock growth continues to outpace demand in the capital, giving tenants more negotiating power, pushing down rents. In much of the rest of the UK rents continued to grow, although at a slower rate.’[1]

[1] http://www.propertyreporter.co.uk/landlords/company-landlords-now-own-1-in-5-rental-properties.html