Posts with tag: property investment

Portico Reveals 8 Potential Property Hotspots for 2020

Published On: January 15, 2020 at 10:08 am

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If you’re looking for somewhere new to invest this year, leading estate agent Portico has revealed eight potential London property hotspots for 2020.

With house prices in London remaining relatively flat over the last couple of years and wage growth increasing, the agent has calculated that it has become 10% more affordable to purchase a property in the capital.

Vatche Cherchian, Portico’s Regional Director, comments: “While house prices in London have remained relatively flat over the last couple of years, wage growth hasn’t. We’ve actually seen a 4% growth year-on-year in wages. And if you tally that wage growth increase up against flatlining London house prices, what you’re saying in real-terms is that it has become around 10% cheaper to buy a property, which is encouraging.”

There has also been an increasing demand for rental properties in London, but a low supply of stock. This has resulted in increasing rents and healthy yields.

The recent housing report from Tony Blair states that, if we see the Conservative manifesto proposals carried out, we could see a 26% rise in prices. For investors looking to use these factors to their advantage, Portico has used its extensive market research and London rental yield data to conclude the following property hotspots for 2020:

1. Barking & Dagenham 

Average house price: £318,527*

Average rental yield: 5.4%**

2. Sutton 

Average house price: £387,286*

Average rental yield: 4.4%**

3. Havering 

Average house price: £392,031*

Average rental yield: 4.9%**

4. Ilford 

Average house price: £421,226*

Average rental yield: 5.5%**

5. Newham 

Average house price: £445,425*

Average rental yield: 4.9%**

6. Redbridge 

Average house price: £488,632*

Average rental yield: 5%**

7. Hounslow 

Average house price: £497,758*

Average rental yield: 4.7%**

8. Tower Hamlets 

Average house price: £545,550*

Average rental yield: 4%**

*Rightmove data correct as of 16.12.2019

**Portico rental yield map data correct as of 16.12.2019

Looking to cash in as a landlord? Invest in Merseyside!

Published On: January 9, 2020 at 10:04 am

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Property investors should head North to Bootle, In Merseyside after new research claims that it is currently the best place to maximise buy-to-let returns.

Property investment portal, One & Only Pro gave investment properties across England and Wales a score out of ten, based on how likely they were to increase in value, with ten being the highest. 

Their results revealed that the locations with the highest concentration of properties scored ten, are all found in Northern England.

The top spot has been snatched from Salford (last year’s top location) by Bootle in Merseyside. Salford meanwhile, has dropped all the way to 47th place!

Burnley remains in second place, not moving from last year’s survey, whilst Grimsby and Hartlepool have both appeared in the top five for the first time, taking third and fourth place respectively.

Position January 2019January 2020
1stSalfordBootle
2ndBurnleyBurnley
3rdBirkenhead/BootleGrimsby
4thHartlepool
5thBlackpoolLiverpool

Henri Sant Cassia, from One and Only One Pro, said: “It is great to see the predictions we made last year have been borne out – the north has remained strong and the central London market had, as we predicted, bottomed out price wise and is now seeing an upturn.  

“The top five diamond property hotpots this year all offer great value, even for first-time investors, in terms of average house prices. Investors could easily overlook towns like Grimbsy or Burnley which offer fantastic value in comparison to the big cities.

“It is important to note that our data isn’t simply an analysis of last year’s trend – our system algorithm analyses and studies future trends and also factors in changes in bank lending and fiscal policy for example which could influence the property market during the following year.

“Despite the general doom and gloom, especially around Brexit, in 2019 the market actually remained quite robust, as we had predicted. The trend for the government to continue to legislate against the rental sector and increase taxes for smaller landlords is likely to continue in 2020.  

“As interest rates are likely to stay low, rental profit will be high for landlords so we predict a positive year ahead for property investors on that front. We should also continue to see banks relaxing their criteria so landlords and property investors will be able to borrow more money and with easier stress testing.”

5 reasons LEDs could be a safer lighting option for your property

Published On: December 11, 2019 at 10:13 am

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In this article, David Boultbee, Technical Consultant at Ultra LEDs, shares his insight into the benefits of LED bulbs and why they can be a safer lighting option for rented properties.

As a landlord, you’re expected to make your property as safe as possible for your tenants by minimising health hazards and fire risks. One of the ways you can do this effectively is to choose to install LED light sources in your building.

LEDs are considered safer than other light sources in various ways, so much so that the EU banned the use of halogens in favour of LEDs in September last year (which.co.uk). Below, I’ll take you through just a few of the reasons LEDs could be perfect for making the property that you rent out safer.

They’re low voltage

LED light sources use less power to run than their halogen, fluorescent, or incandescent alternatives. They can run off low voltage circuits, and the electricity that powers them from the mains even has to go through a transformer to reduce its voltage. This means there’s usually less of a risk of electrical shocks or fires if they’re handled, such as when the bulbs are being changed. To be on the safe side, though, I would still advise that they’re only handled by a qualified electrician.

They produce less heat

LEDs consume less energy than other light sources because more of the power they do use is converted into light rather than heat. That means they’re less of a fire hazard, even if they’re left on for a long time by your tenants. As a bonus, this also makes them more energy efficient, as less of the power they require to light up is wasted.

They can be water resistant

LEDs come with different IP ratings, which indicate how protected they are from moisture. Fully water-resistant options usually have an IP rating of at least IP65 up to IP67 and 8, which are waterproof versions. This makes them perfect for kitchens, bathrooms and the outdoors around your property where water and other liquids can cause dangerous issues for electrical lights.

They don’t contain mercury

Unlike some other forms of lighting, LEDs use an electrical conductor to generate their light instead of mercury. Even sources that use a very small amount of mercury can be considered a hazard as the substance can be toxic if it is inhaled or ingested in any way. Because they’re mercury-free, LEDs pose no risk of poisoning if they are broken or dropped.

They’re safer to dispose of

Because they don’t contain toxic materials, LEDs are also safer to dispose of without having to worry about them leaking mercury — although you still need to be careful around broken glass. Even better, some components in LED lights may even be recyclable depending on your local area. If you can recycle your old LED bulbs, it saves them from being sent to landfill and causing issues for the environment and wildlife that way.

These are just some of the reasons that LED light sources can be a better option for your property when it comes to safety. From reduced fire hazards to the lack of toxicity, there are plenty of reasons to choose LEDs.

Buy-to-Let is STILL one of the best investments you can make

Published On: November 19, 2019 at 9:58 am

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Buy-to-let continues to deliver solid returns that beat many other types of investment. Even with reduced tax breaks, and the addition of new legislation, the market appears to be very profitable. Many investors are seeking to add to their portfolio in the near future.

Property investment is a buyer’s market right now, with the average price of property coming onto the market dropping by 1.3%, or £3,904 over the last month. This fall can be attributed to political uncertainty stemming from Brexit and the upcoming general election.

Unfortunately for sellers, this uncertainty has led to many of them abandoning plans to sell into a more certain time. 

However, investors looking for a bargain are able to get more bang for their buck. Prospective landlords can use the savings on buying cheaper property to mitigate the effects of Section 24 tax changes and other increased costs around letting that have cropped up in the last year. 

Miles Shipside, Rightmove director and housing market analyst, commented: “I’ve seen lots of unusual events affecting the property market in my 40-year career, but a Brexit deadline followed by a snap general election six weeks later is obviously a new combination for me and for many thousands of buyers and sellers. 

“Elections normally dampen activity as uncertainty causes a degree of hesitation, but this one is being called to try to break the deadlock after three years of uncertainty. A more certain outlook, whatever it may be, would be a welcome change for those who are contemplating moving.”

The uncertainty seems to be a positive for buyers, which may explain why the number of sales agreed remains largely unchanged, at only 2.9% lower than this time last year. This suggests that there are still a lot of buyers looking to take advantage of those opportunities.

Spooky reasons for rejecting a house revealed by first direct, this Halloween

Published On: October 31, 2019 at 10:02 am

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Just in time for Halloween, another report on spooky issues likely to frighten off potential house buyers has been released!

Creepy neighbours, residents who have died, rumours of haunting, and unlucky house numbers are just some of the spooky reasons for rejecting a house, according to research from first direct.

Nearly half of all house buyers claimed creepy neighbours would convince them to pass on a property, while one in five admitted that a death in the house would send shivers down their spine.

One fifth would be deterred by rumours of ghostly goings-on and nearly one in ten find unlucky street names or numbers a definite turn-off…

These results come from a survey of 2,000 people looking into the darkest deal-breakers when it comes to buying a house.

Inappropriate street names, ‘bad energy’ and relationship breakups also made the list of the top terrors when looking for a new home.

Top spooky reasons for rejecting a housePercentage
Creepy neighbours43%
Someone died21%
Rumours of haunting20%
Unlucky street name or number8%
Rude/funny street name8%

The results of the survey also revealed:

  • 28% of 21– 34-year-olds refuse to consider a house that someone has died in, making them the most superstitious age group.
  • First-time buyers were also more bothered about the above issue (25%) than second-steppers (14%).
  • Around one in twenty first-time buyers also wouldn’t buy a house owned by a couple that got divorced…
  • Looking at location, those in Bristol are the least likely to be put off by creepy neighbours (35%) and a resilient 86% wouldn’t be phased by a property in which someone had died.

Joe Gordon, Head of first direct, said: “It would appear that as house buyers we are pretty easily spooked by anything out of the ordinary, especially if we’re buying for the first time. But it’s amazing how much this drops the longer we’re on the housing ladder.

“One thing is for sure. We all know the value of having really good neighbours, but if yours are a bit closer to the Addams family than the Brady Bunch, you might find they’re responsible for putting the morgue in mortgage when it’s time for you to start looking for a new home!”

Happy Halloween!

Buy-to-let landlords urged to ‘ride out’ approaching recession

Published On: October 28, 2019 at 10:32 am

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Landwood Property Auctions has advised property investors to sit tight during the potential recession that is upon us in the UK and give it time before making any decisions about leaving the market.

The company has seen an increase in properties going into receivership over the past few months, a reluctance from banks to lend as much as they had been a year ago and the construction sector also struggling.

Mark Bailey, Director of Landwood Group, has noted: “It is harder for property owners to let business space; for domestic landlords to find tenants… there’s no doubt there is a squeeze on.

“With each failed building project, banks become more nervous to lend, builders stop building… and we fall headlong into a dreaded recession. Once we do, it’s anyone’s guess how deep it is or how long it lasts.

“The blame for all of this cannot be put at the door of Brexit… well, not entirely. There is no arguing with the fact that this is a period of change – domestically and globally. People err to the negative whenever there is change on the horizon – until events transpire and the scales balance out. The big issue is uncertainty.”

His advice to property investors, whether you are a commercial property owner or a domestic landlord, is to keep going and wait to see what happens over the next six months before making a decision. He points out to look at your borrowings and not over-stretch yourself. 

Cash buyers, in particular, may benefit from such a downturn in the market, so long-term investors in this position should keep an eye open for a ripe time to buy.

Bailey concludes: “For the rest of us, it’s time to batten down the hatches and ride out the storm – see you on the other side.”