Posts with tag: landlords

Date for publication of White Paper could have been decided

Published On: January 26, 2017 at 2:36 pm

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The long wait for the Government’s long-awaited White Paper on Housing is seemingly coming to an end. It is now thought that this paper is likely to be aired on Monday February 6th 2017.

Tipped to include major reforms that will impact on the lettings and construction sectors particularly, the White Paper is eagerly anticipated by all property market peers.

Delays

At the Conservative Party conference last September, Communities Secretary Savid Javid and Housing Minister Gavin Barwell indicated the document would be released before the end of 2016.

Several more false hopes have followed, with varied speculation on release dates. It was thought that the Paper may appear on the 16th January. Now, Government sources have indicated to journalists that the document is now likely to be released on the 6th February.

The issues set to be addressed in the White Paper are expected to include incentives and planning for Build To Rent. What’s more, there could be incentives for older owners to leave their properties and new attempts to highlight Government-owned sites considered good enough for new housing.

In addition, many property peers expect a wholesale re-shaping of policy for starter properties.

Date for publication of White Paper could have been decided

Date for publication of White Paper could have been decided

Brexit

There is more pressure to get the White Paper published after the Supreme Court decided that Parliament must vote on whether to trigger article 50.

A Labour spokesman said: ‘We now want to see the timing and it is clear the white paper needs to come to parliament in time for the debate … MPs have a right to be able to see what the government’s plan of action is. The speech is not adequate. It set out a wish-list of options.’[1]

‘As we’ve said many times, Labour respects the decision of the British people to leave the EU and therefore will not frustrate the will of the British people. But respecting the will of the British people is very different from respecting the will of the British government. We need to see the plan and make sure the process is held to account in parliament at every stage,’ they added.[1]

 

[1] https://www.theguardian.com/politics/2017/jan/25/government-to-publish-brexit-white-paper-theresa-may-tells-mps

 

Average property prices could rise sharply in next decade

Published On: January 26, 2017 at 9:50 am

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A warning has been sounded that residential property prices in England could reach an average of over £300,000 during the next decade, should prices continue to rise at the same rate as previously.

What’s more, the research from eMoov suggests that in the capital, prices could rise to over £800,000, with those in the South East hitting £445,000.

Property Price Rises

The report from eMoov shows that house prices in England have risen by 29% in the last ten years. The same increase between now and 2027 would take the average house value in England to £301,864.

In London, they would increase by 80% to hit £866,719 and in the South East a rise of 43% to £445,159.

For other regions, the rise would not be as prominent. In the North West, prices would increase to £158,131. Prices in the East and West Midlands would rise to £205,870 and £183,883.

Looking at the last 20 years, values in England have risen by 320%. Should this happen again until 2037, average property prices would rise to £983,826. In London, average values would hit a whopping £2,792,783.

Average property prices could rise sharply in next decade

Average property prices could rise sharply in next decade

Impossible

Russell Quirk, chief executive officer of eMoov, believes the figures show the almost impossible task being faced by the next generation of would-be renters.

Quirk noted: ‘The property boom in several regions of England has made it increasingly more expensive to get on the ladder and the figures anticipating the next two decades only further attest to the importance of investing in a home as soon as possible if the trend in increasing property values is to persist.’[1]

‘It is stomach churning to think that should prices continue the way they are, there will be just one real area of property affordability left across England in 20 years’ time, with the average house price in England approaching the £1 million mark and three regions tipping beyond this,’ Quirk added.[1]

[1] http://www.propertywire.com/news/uk/average-house-price-england-reach-close-1-million-2037/

Accord moves to offer cheaper LTV deals for BTL

Published On: January 25, 2017 at 3:19 pm

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Categories: Finance News

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Today has seen Accord Buy-to-Let move to reduce some of its buy-to-let rates on selected lower LTV mortgages. In addition, the lender has introduced new 65% LTV options.

The Yorkshire Building Society Group’s intermediary-only lender has slashed rates for landlords at 65% and 75% LTV by up to 0.2%.

Fixed Rates

A two-year fix is now available at just 1.99% for buy-to-let borrowers with a 35% deposit. At 75% LTV, buyers can secure a two-year fix at 2.04%. Both mortgages are available to landlords looking to remortgage or extend their portfolio and come with a £1,995 product fee.

Just last year, Accord moved into the consumer buy-to-let market and now also offers 65% LTV products. These include a 2.54% two-year fix with a £450 product fee.

Accord moves to offer cheaper LTV deals for BTL

Accord moves to offer cheaper LTV deals for BTL

Those purchasing a new property will receive £500 cash-back on completion. In addition, remortgaging landlords can pick a free standard valuation and £300 cash-back on completion, or free standard valuation and legal costs.

Value for Monday

Chris Maggs, Accord’s Buy-to-Let Commercial Manager, noted: ‘We are always looking at ways to offer landlords value for money and we believe that these mortgages will prove very attractive thanks to the competitive rates and additional features. We hope brokers looking for competitive deals on buy-to-let property purchases and remortgages will welcome these new rates as much as their clients.’[1]

 

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/cheaper-ltv-options-available-from-today-for-btl-landlords

 

 

Where are the UK’s burglary hotspots?

Published On: January 24, 2017 at 11:11 am

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New data released from MoneySuperMarket has revealed the top postcodes for burglary claims in the UK.

Despite the overall rate of burglary claims falling by 8% in the last year, urban regions remain the largest targets for theft.

Burglary hotspots

MoneySuperMarket looked at 1.8 million home insurance quotes from its website between January 2015-December 2016 in order to find the postcodes with the greatest rate of home content theft quotes during the period.

Coming out on top was Redbridge in London, with a postcode of IG4. In fact, postcodes in North London dominate the top five, with Chadwell Heath (RM6), Clayhall (IG5) and Whetstone (N20) all appearing. Leeds was the only region outside of London in the top-five, in fourth place.

Cambridge (CB5), and Manchester (M21) also moved into the top twenty.

Seasonal Surge

Unsurprisingly, MoneySuperMarket’s data shows the value of claims submitted during the Winter are on average 36% greater than those in the summer. This will owe largely to the number of high-value Christmas presents in homes.

Landlords and tenants alike should be extra vigilant in protecting their properties during the Winter months.

The value of insurance for items such as laptops, jewellery and watches has grown during the last twelve months. The average collective total value of itemised possessions was £4,192 per policy in Autumn 2016. This was 39% more than in 2011.

Falls

More pleasingly, the number of overall burglary claims has fallen by 8% over the course of the year. Last year, the average rate was 13.58 per 1,000 quotes, which has now dropped to 12.44 per 1,000.

Looking at the postcodes with at least one claim for theft, Monkseaton and North Tyneside (NE25) and Bideford, Devon (EX39) had the lowest rate of burglary claims, each with 0.9 per 1,000.

In addition, there are 123 postcodes with no claims. These include Norwich (NR26), Liverpool City Centre (L3) and Manchester City Centre (M1).

Where are the UK's burglary hotspots?

Where are the UK’s burglary hotspots?

Risks

Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: ‘Burglars are interested in two things: where should I go to find stuff worth stealing and where am I least likely to get caught? Our findings suggest busy urban areas are the biggest targets for theft, but those who call leafy suburbia home should also be aware of the risks associated with the higher anticipated value of their belongings.’[1]

‘Burglary results in a double dose of trauma, with both emotional and financial repercussions taking a long-term toll on those affected. To avoid the turmoil, it’s vital to be vigilant against break-ins and to bolster home security to prevent them in the first place. It’s also crucial to ensure you have contents insurance in place to cover you should the worst happen,’ he added.[1]

Concluding, Mr Pratt noted: ‘It is encouraging to see the overall rate of burglary claims has dropped eight per cent in the last year, in line with the fall in recorded burglaries. There’s no doubt thanks to improvements in home security, although the falling cost of electrical items, such as TV’s, might be significant, as, simply put, there’s less need for burglars to steal items than in the past.’[1]

[1] http://www.propertyreporter.co.uk/household/which-postcodes-dominate-uk-burglary-claim-hotspots.html

 

Report indicates most renters have seen damp issues

Published On: January 24, 2017 at 10:02 am

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Categories: Landlord News

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A concerning new study has revealed that the majority of private renters have seen problems with sub-standard drainage or damp, according to a new study.

The survey of 1,000 tenants, carried out by drainage company Lanes Group, indicated that 85% of respondents had experienced issues with poor drainage or damp at a point during their tenancy agreement.

Damp

Worryingly, 29% of those who said they had seen problems said they had received no help from their landlord.

Most commonly, tenants saw problems with constant damp on walls and near windows.

Next came dripping taps, bad odours from drains and poorly-fitted appliances. Others said they saw problems with water pressure, blocked drains, leaking pipes and flooding.

Report indicates most renters have seen damp issues

Report indicates most renters have seen damp issues

Capital Drain Pains

Tenants in the capital are most likely to see drainage problems than anywhere else in the UK. 90% of renters in London said they had been in touch with their landlord with regard to plumbing issues.

Michelle Ringland, head of marketing at Lanes Group, noted: ‘Keeping properties maintained is a real challenge for landlords, particularly as you can’t control tenants’ habits. Having adequate drainage facilities installed and carrying out regular checks by professionals will go a long way in keeping drainage systems in rented properties running correctly.’[1]

‘This should be supplemented by giving tenants clear information on what they should and shouldn’t put down drains,’ Ringland added.[1]

If you have or are experiencing issues with damp related problems, see our guide on combating these situations.

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/majority-of-renters-have-encountered-damp-and-drainage-problems

Activity in housing market slows for first time since July

Published On: January 20, 2017 at 3:34 pm

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Categories: Property News

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The housing market in the UK almost stopped during December, as price growth slowed and fewer transactions were made, according to the latest RICS survey.

As residential property price growth slowed, the headline balance of surveyors reporting an increase slipped to 24% from 29% in November.

Setback?

A RICS statement said: ‘Although this suggests prices are still rising firmly, the latest figure does end a run of four successive months of higher house price balances.’[1]

Further findings from the report found that the majority of RICS’ members predict a further slowdown in property price rises and new sales in the opening quarter of 2016.

The statement continued by saying: ‘While it remains to be seen if this is a temporary setback, 1% more chartered surveyors saw a fall rather than a rise in sales last month, and figures for predicted sales over the next three months across the UK also saw a noticeable slow down with only 4% more respondents anticipating an increase in sales during the coming three months down from 18% previously.’[1]

Price falls

London was the only region to see a fall in property values, while the North West of England saw the largest growth.

With price expectations for the next three months softening, RICS believe respondents were more positive on their outlook for the year. 49% of those questioned feel prices will increase during the next 12 months, in comparison to 40% in the last survey.

Simon Rubinsohn, chief economist at RICS, said that the latest survey, ‘provides further evidence that both price and rent pressures are continuing to spread from the more highly valued to more modestly valued parts of the market for good or ill.’[1]

Activity in housing market slows for first time since July

Activity in housing market slows for first time since July

Sluggish

Despite activity falling in the last month, Richard Sexton, director of e.surv, noted that a seasonal slowdown is typical. In addition, he feels that the major problem is supply.

‘New instructions remain sluggish and with annual house prices rising at an unsustainable rate, too many prospective new buyers are being priced out of the market. A new year means new opportunities for change. As we await the government’s Housing White Paper, hopefully further initiative and funding will be applied to help secure home ownership for many hard-working earners,’ Sexton noted.[4]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/1/uk-housing-market-activity-slows-for-first-time-since-july–rics

 

 

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