Posts with tag: property investment

The Worst Areas in the UK to Have Invested in Property

Published On: February 15, 2017 at 11:48 am

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Following yesterday’s latest House Price Index from the Office for National Statistics (ONS) and Land Registry, online estate agent eMoov.co.uk has highlighted the worst places in the UK to have invested in property.

Using the figures for the end of 2016, for which the latest official data is available, eMoov looked at areas of the UK where unlucky property investors and homeowners have seen values fall annually, despite the market as a whole remaining resistant throughout the past year.

The top three worst locations to have invested in property

Across the whole of the UK, nowhere has proved worse for property investors than the City of Aberdeen. While many property owners have seen the price of their property move positively, prices on the Scottish east coast have plummeted by an average of 9.81% – a loss of almost £20,000 from its height of £185,848 last year.

Those that have invested in property in Inverclyde are also feeling the pain of price falls, with values down by 7.63% over the past 12 months.

Perhaps more surprisingly is the third worst location to have invested in property in the UK. While the average property owner in the East of England has seen the value of their investment rise by a notable 11.31% over the past year – the highest of all UK regions – those in Cambridgeshire have paid the price of an over-inflated market, with prices down by 5.12% – the highest decrease of anywhere in England.

The worst in England 

Joining Cambridge in the worst places to have invested in property in England are Eden and Copeland, both of which are located in the North West. Although the average property owner in the North West enjoyed an increase of 6.58%, Eden and Copeland saw prices drop by 3.05% and 2.66% respectively.

The worst in London 

The Worst Areas in the UK to Have Invested in Property

The Worst Areas in the UK to Have Invested in Property

It has been an up-and-down year for London, with the changes to Stamp Duty for buy-to-let and additional homes, and the uncertainty caused by the Brexit vote. Although the capital has remained strong in the face of adversity, property investors in Hammersmith & Fulham won’t be feeling too good about their pockets. It is the only borough to have seen prices drop, by 2.10%, in the past year, while London as a whole has seen values increase by over 7%.

The next worst performing boroughs were Richmond upon Thames and Westminster, although, at 0.38% and 1.15%, they have at least provided a small return for those who have invested in property.

The worst in Wales

Unfortunately for those who have invested in property in mid-Wales, Ceredigion has experienced the largest decline in values across the nation, with the fourth largest across the entire UK. Wales as a whole has seen a slump in the property market, but showed signs of recovery towards the end of 2016.

But property investors in Ceredigion have not experienced an uplift, with prices down by 3.49% over the past year.

Merthyr Tydfil has seen the second largest and only other decrease in property values across Wales, with a drop of 1.51%

The worst in Scotland

Not only is Scotland home to the top two worst locations in the UK to have invested in property, it would seem that an uncertain year has had a detrimental impact on the Scottish market as a whole.

Of the 16 locations that have recorded a decline in prices, seven are situated in Scotland. Along with the City of Aberdeen and Inverclyde is Aberdeenshire as a whole (-3.48%), North Ayrshire (-2.03%), the City of Edinburgh (-0.60%), Midlothian (-0.47%), and West Dunbartonshire (-0.31%).

Comment

The Founder and CEO of eMoov, Russell Quirk, reacts to the findings: “Despite the market performing well throughout what was a testing year, when the dust settles, there will always be areas that have seen a fall in prices on an annual basis.

“The UK market is renowned for its strength and reliability in terms of providing some form of return on our investment into bricks and mortar, but there will always be those that have to chalk it down to experience and accept the wooden spoon of UK property.”

He explains: “In this case, it is Aberdeen, Inverclyde and Cambridge, amongst others. Aberdeen has been rocked by a declining oil industry and a lack of buyer demand, so it comes as little surprise that it remains in the doldrums of UK property. I think the SNP’s attempt to weaponise the Brexit vote and seek independence so soon after their original referendum has made a rod for Scottish homeowners’ backs, by creating a great deal more hesitation and uncertainty in the market than was really necessary. Demonstrated by the presence of seven Scottish entries in the 16 areas that have seen prices fall over the last year.”

Quirk continues: “With an average house price close to rivalling that of the capital, Cambridge is no doubt paying the price for an overinflated market during 2016. As prices spiral beyond affordability, a fall in demand by the average Cambridge homeowner will always result in an annual drop in prices.

“Although not the largest decrease of the lot, homeowners in Hammersmith & Fulham will no doubt be pinching themselves after drawing the short straw of London property values. Although London has stood tall against the second home Stamp Duty changes, and the buy-to-let sector remains a lucrative business, Hammersmith & Fulham’s high-end market has no doubt suffered most from the turbulence of the last year.”

If you’ve invested in property, how have your assets fared?

Foreign Investors Snapping Up Rental Properties in the North West

Published On: February 9, 2017 at 11:04 am

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Foreign investors are snapping up rental properties in the North West of England, according to new research from The Mistoria Group, a specialist in high-yielding property investment.

Foreign Investors Snapping Up Rental Properties in the North West

Foreign Investors Snapping Up Rental Properties in the North West

The firm believes that foreign investors are taking advantage of the weak pound, high yields and excellent occupancy rates in the region’s university towns and cities.

The study found that there has been a surge in foreign investors purchasing student properties in Liverpool and Salford, up by 42% year-on-year. The vast majority of investors are from China and Hong Kong, followed by the UAE, Russia and Singapore.

Chinese buyers are especially keen on apartments and Houses in Multiple Occupation (HMOs), says The Mistoria Group, many of which have high rental yields. The Government’s ambition to create a Northern Powerhouse is also helping to drive foreign investors to the North West, the firm believes.

Mish Liyanage, the Managing Director of The Mistoria Group, comments: “The Brexit vote reduction in the value of sterling against the dollar and the yuan has boosted Chinese investment in the likes of Salford and Liverpool.

“The Chinese are not alone in their enthusiasm for newly-affordable UK bricks and mortar. The Brexit effect means that British property is 20% cheaper for many foreign investors, and there are no signs that this is likely to be reversed in the near future.”

He continues: “Many foreign investors buy student accommodation in the North West for their children who are studying at university. Indeed, foreign investors need to look no further than Salford and Liverpool for great investment opportunities, with yields far exceeding those found in London and the South East. Investors enjoy lower property prices and minimal void periods in many towns and cities in the North West. Both in Salford and Liverpool, we have already achieved over 80% occupancy for 2017/18 academic year with more than six months still left in this year to fill up the rest of the rooms.

“Last year, we were only at 55% at this time of the year. This clearly shows the keen interest students show in going for high quality refurbished properties, managed by a reputed student management company.”

He concludes: “Both Salford and Liverpool are undergoing a significant redevelopment, and this is providing jobs and boosting tenant demand. Investors can acquire a high quality three-bed HMO which will house four students from £120,000 onwards. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth).”

Housing White Paper Does Not Support Individual Landlords, Warns RLA

Published On: February 8, 2017 at 9:24 am

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Yesterday’s Housing White Paper from the Government will fall flat on its face due to its lack of support for individual landlords, warns the Residential Landlords Association (RLA).

Housing White Paper Does Not Support Individual Landlords, Warns RLA

Housing White Paper Does Not Support Individual Landlords, Warns RLA

Although the organisation welcomes the change in focus from homeownership to renting, it insists that, as research has proved, institutional investment will never achieve the level of supply needed to meet the growing demand for rental housing.

The vast majority of supply comes from individual landlords, it states, but there is nothing in the Housing White Paper that supports their continued investment in new housing. Instead, the RLA believes that the result of recent Government policy, including the restriction in mortgage interest tax relief, attacks individual landlords and discourages investment in the sector.

The RLA claims that institutional investors only buy in large population centres to achieve the mass they need, which will leave smaller towns and rural areas continuing to face a shortage of rental housing and, subsequently, higher rents.

Although it welcomes the Government’s plans to encourage corporate investors to offer longer tenancies, the RLA points out that 25% of individual landlords are prevented from offering tenancies longer than a year by their mortgage lender or insurer.

The Policy Director of the RLA, David Smith, says: “Unfortunately, the White Paper falls a long way short of the radical changes for renters that we were promised. There may be more Build to Rent resulting from this in our large towns and cities, but, without any plans to support the hundreds of thousands of smaller landlords who make up the bulk of supply, there will continue to be a major shortage.

“Landlords are happy to offer longer tenancies, provided the climate is right to do so. They give landlords certainty and they are good for tenants, as rents tend to increase less often. We will be talking to the Government about what needs to be done to address the barriers preventing landlords from offering longer tenancies without the need for a one size fits all model.”

Individual landlords, do you believe that your needs should have been included more prominently in the White Paper?

What Does the Article 50 Ruling Mean for Property Investors?

Published On: January 26, 2017 at 11:31 am

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Earlier this week’s, the Government’s appeal in the Article 50 case to trigger the country’s departure from the EU was dismissed by the Supreme Court. So what does this ruling mean for property investors, both at home and abroad?

The triggering of Article 50 will be the UK’s landmark event of the year when it comes to the economy and politics.

The latest ruling by the Supreme Court means that the Prime Minister, Theresa May, will need the Parliament’s support to trigger Article 50.

What Does the Article 50 Ruling Mean for Property Investors?

What Does the Article 50 Ruling Mean for Property Investors?

To see this through as quickly as possible, the Brexit secretary, David Davis, promised to bring legislation before MPs “within days”, highlighting yet again that the Government is still committed to start Brexit negotiations by the end of March.

While the ruling also means that the Government has no need to consult regional parliaments, the Scottish National Party (SNP) has already hinted at plans to lay out up to 50 amendments, including a stronger role for Nicola Sturgeon.

Since the Article 50 case was first heard, several other Brexit developments have happened, the most significant being May’s crucial Brexit speech. During the address, the Prime Minister made her commitment to pulling out of the single market fairly clear.

After Tuesday’s Article 50 ruling, sterling dropped once again against the US dollar, down to lows of $1.2438, before ending the day flat against the US currency.

How will this affect property investors?

Generally, property investors can be divided into two groups: domestic investors and foreign investors. Although this is a worthwhile distinction to make, in most cases, the biggest influencing factor when it comes to investing in property remains the same – the level of uncertainty that comes with an investment.

The Article 50 ruling was the first stepping-stone to removing some of this uncertainty. With the Government now promising a very quick turnaround to get the bill before Parliament, even more clarity is expected shortly.

For domestic investors, very little will change, especially considering the extremely quick turnaround the Government is hoping for. And while Parliament is right to scrutinise and debate the legislation, Davis insists that it won’t be used as “a vehicle for attempts to thwart the will of the people, or frustrate or delay the process of our exit from the European Union”.

In addition, the recent decision has changed very little, if not nothing, about the two basics of the UK’s property market – high demand and low supply.

For foreign investors, the hunt for cheap property may have already begun. Those hoping to buy using foreign currency will be wise to keep an eye on the exchange rate, especially since sterling has already experienced a drop.

Considering the Brexit decision itself, although not all property investors will agree with the plans May and her Government have set out, uncertainty is slowly being removed from market sentiment.

In addition, the Government appears to have already started working on new trade relations and partnerships with countries outside the EU, cementing Britain’s position as a stable investment location.

Has the Article 50 ruling affected your confidence in property investment?

Highest Number of Londoners Leaving the Capital for Nine Years

Published On: December 29, 2016 at 9:31 am

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The highest number of Londoners for nine years has left the capital this year, according to the latest analysis by estate agent Hamptons International.

In 2016, the amount of Londoners buying homes outside the capital reached the highest level since 2007, the research found. Some 74,000 Londoners bought outside the capital, which is 11,000 more than in 2015 and just 16,000 fewer than in 2007, when the highest number on record was seen.

Highest Number of Londoners Leaving the Capital for Nine Years

Highest Number of Londoners Leaving the Capital for Nine Years

The average Londoner buying outside the capital spent £388,000 on their new home – a total of £29 billion, which is the highest since 2007, when 90,000 homes were purchased, totalling £32 billion.

The majority of Londoners leaving the capital stayed in the south. A huge 80% of those leaving London bought in the South East, South West or East of England.

One in every six homes sold in the East of England and one in every seven in the South East were sold to someone moving from London in 2016, shows the study.

Of the 17 local authorities that border the capital, more Londoners purchased homes than existing residents in ten of them. However, as house price growth across the south (9.1% annually) surpasses that in London (7.7% year-on-year), both the proportion and number of Londoners heading further north has been steadily increasing.

This year, 20% of those leaving London bought in the Midlands or the north, compared to 12% in 2014 and just 10% in 2012. In 2016, the amount of homes purchased by Londoners in the Midlands rose by 21% on last year, while in the north it was up by 13%.

As many Londoners leave the capital for a bigger home, almost three quarters (74%) of those leaving London bought a property with three or more bedrooms, spending an average of 18% more than local buyers.

While many Londoners take advantage of being able to get more for their money, for others, leaving the capital is the only way of getting onto the property ladder. Around 40% of first time buyers living in London end up buying outside the capital, up from 20% in 2012.

The Head of Research at Hamptons International, Johnny Morris, says: “A move out of London has generally had more to do with changing priorities as people get older and start forming families than the housing market. But with affordability in the capital stretched, more Londoners are looking elsewhere to buy their first home. More too are likely to go further afield, with increasing numbers heading to the Midlands and north.

“It is likely 2016 will be a peak for London leavers. While overall the year saw growth in Londoners buying outside the capital in recent months, the pace has been slowing. A slower housing market in 2017 will likely mean that we see fewer Londoners buying outside of the capital than in 2016.”

Although the research suggests that many Londoners are deciding to leave the capital, landlords must be aware that the study only covers homebuyers. As purchasing a home is still as difficult as ever for many young people, investors should choose the right areas to cater to the high number of renters in the capital.

If you are looking for a lucrative investment property, one of these London hotspots may provide a great opportunity: https://www.justlandlords.co.uk/news/landlords-buy-london-2017/

Conveyancing Comparison Service for Buy-to-Let Investors

Published On: November 16, 2016 at 11:50 am

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When an investor finds that ideal investment, they have probably spent hours searching and viewing many properties, together with visiting several management agents to fully understand what financial returns they can expect after all the costs of getting the property upgraded to a safe standard. They focus on net yield.

Impartial conveyancers

Duncan Pattinson knows all about buy-to-let investment, as he used to be MD of a large buy-to-let business. He realised that what buy-to-let investors needed was a conveyancing comparison and solicitor-finder service. So many property developers and sellers of stock were stipluating that the investor had to use their nominated solicitor – hardly impartial!

Conveyancing Comparison Service for Buy-to-Let Investors

Conveyancing Comparison Service for Buy-to-Let Investors

We Help You Too Ltd manages the Homebuyer Conveyancing panel, a panel that has grown over the past three years. Some 120-plus conveyancing solicitors are members, with additional solicitors joining each week.

Online conveyancing quotes

Buy-to-let investors can budget for their conveyancing costs by going online to the Homebuyer Conveyancing comparison website: http://www.homebuyerconveyancing.com. They can view and compare conveyancing quotes in just one search, without entering any personal details. They can filter their search by price, location and by mortgage lender. When ready, they can take a conveyancing quote away and book a timed call from their chosen conveyancing solicitor or licensed conveyancer to discuss their quote – straightforward, efficient and without obligation to instruct.

The conveyancing quotes fully detail their conveyancing fees and disbursements costs, and detail any applicable Stamp Duty Land Tax due to the investor buying an additional property.

Where experience matters

What is special about this particular service is that each purchase quote uses a comprehensive search pack that is under £200 and covers England and Wales. This enables investors to compare conveyancing quotes with no hidden fees or costs. They can even choose an option to add Exchange Insurance within their conveyancing quotes. If the investor is buying a new build, then a new build search pack is used, which is considerably cheaper. The savings are simply passed on to the investor.

The solicitors order the search pack from Onesearch Direct. Where Experience Matters is its strap-line. It also has a suite of other searches that can fast-track the search process if required.

Customer charter

It pays to compare competitive national conveyancing quotes from a conveyancing panel that is focused on the customer. Cheaper pricing is due to where the solicitor is located and is not a reflection of service. Each Homebuyer Conveyancing member is signed up to a customer charter.

Improving the conveyancing process

Duncan has a backgroung in improving process and, as such, this determination is self-evident, with a few additional improvements coming soon. The software and panel provides the much needed hands-off service that a buy-to-let investor needs when finding an independent solicitor at a price they can afford.

We Help You Too Ltd manages the Homebuyer Conveyancing panel.

Turning the complex into the understandable