Posts with tag: property investment

Latest Property Activity Index shows UK lettings market uplift in summer

Published On: August 22, 2019 at 8:29 am

Activity has increased across the UK lettings market during July this year, according to the latest data from the Agency Express Property Activity Index.

From the national month on month figures, we can see that new listings ‘To Let’ sat at 8.5% and properties ‘Let’ at 6%. Looking at previous records from the Property Activity Index, we can also see that, while lettings market activity was generally greater throughout 2018, this month’s figures have exceeded those recorded 12 months previous.

Eight of the twelve regions recorded by the Property Activity Index reported increases in new listings ‘To Let’. Ten of these regions reported increases to properties ‘Let’.

The East Midlands achieved the top spot on this month’s leader board with new listings at a healthy 46.7% and properties ‘Let’ at 23.3%. East Anglia also had a fruitful month, with new listings at 27.4% and properties ‘Let’ at 29.6%. Both regions reported record best figures for July.

Other prominent performing regions included:

Properties ‘To Let’

South East 16.4%
Yorkshire & Humberside 16.1%
South West 10.8%
Wales 10.8%

Properties ‘Let’

North East 17.2%
Yorkshire & Humberside 7%
South West 6.7%
London 5.8%
Wales 4.3%
South East 4%

The Property Activity Index shows that Central England saw the largest declines across the market this month. New listings fell for a second consecutive month at -0.50%. Properties ‘Let’ fell to -11%. However, over a three-month rolling period, figures were greater at 3.9% and 0.1%, with year on year activity remaining on trend.

Stephen Watson, Managing Director of Agency Express, says: “July has been an unexpected month for the UK lettings market. Usually we would see slower movement throughout the summer holidays but this month’s activity, which is somewhat reflective of an increase in our customer base has been buoyant.

“Looking forwards, while we expect to see further increases in August, we don’t envisage a real pickup in activity until September. It will be interesting to see if the current rate of activity continues.

New study reveals number of landlords looking to use limited companies

Published On: August 20, 2019 at 8:34 am

Author: Em Morley

Categories: Landlord News

Tags: limited companies,property investment

A third of buy-to-let landlords are planning to remortgage in the next year, according to new research from Foundation Home Loans. Landlords looking to add to their portfolio are also more likely to do so via a limited company.

Independent market research group BDRC undertook this research on behalf of Foundation Home Loans, finding that 53% of landlords intend to remortgage as an individual. 19% of those surveyed said that they plan to use a limited company. 17% responded that it would depend on their circumstances at the time.

The survey revealed that landlords with 11 or more properties were more likely to remortgage with a limited company – 26% said that they would do so within the next year.

Only 14% of landlords are currently planning to take on new properties over the next 12 months, with 55% of this number planning to do so via a limited company.

Jeff Knight, director of marketing for Foundation Home Loans, commented: “Understandably when it comes to remortgaging there is a continued shift towards the use of limited company vehicles particularly as we see the growth in portfolio and professional landlords who understand the advantages of holding their properties within such corporate structures.

“The ability to secure full mortgage interest tax relief, which is not available when holding properties as an individual, is a clear incentive for the move towards limited company borrowing.

“As a lender we’ve certainly seen a shift towards limited company business and our aim is to offer a competitive product offering, clear criteria and a smooth service for those landlords seeking to remortgage.

“It’s also clear that remortgaging remains the bedrock of the buy-to-let market and, because of that, advisers should be making regular contact with their existing clients in order to ensure they secure that repeat business, and they take advantage of the highly-competitive market that exists.”

Stamp Duty reform required as surcharge puts ‘immense pressure’ on private landlords

Published On: August 5, 2019 at 8:27 am

Author: Em Morley

Categories: Landlord News

Tags: property investment,Stamp Duty

The Intermediary Mortgage Lenders Association (IMLA) believes that Stamp Duty remains an issue for buy-to-let investors and older homeowners looking to downsize.

As of 1^st April 2016, an additional 3% Stamp Duty surcharge was brought in for buy-to-let landlords and second homebuyers. This surcharge applies to residential properties being purchased for £40,000 or more and up to the value of £125,000. However, the rate increases with the price of the house:

5% surcharge on £125,001-£250,000 purchases
8% surcharge on £250,001-£925,000 purchases
13% surcharge on £925,001-£1.5m purchases
15% surcharge on purchases over £1.5m

Kate Davies, IMLA executive director, says: “Removing stamp duty for these so-called last time buyers would help those who want to downsize to move into smaller, more manageable properties for retirement. It would also increase the availability of larger houses suitable for growing families and ease the movement in our housing market.”

She has also highlighted that in a buy-to-let market, private landlords across the UK are under significant pressure from a layering of tax changes. This includes the additional 3% Stamp Duty surcharge on additional homes.

Davies points out that the latest quarterly Stamp Duty figures from HMRC show that many buyers are still being deterred from entering the market because of this tax. It’s also preventing small-scale landlords from investing to grow their portfolios.

Davies explains: “It is critical that the Government puts the brakes on any further legislation that could restrict the Private Rental Sector (PRS). Our recent report on buy to let shows that this market could be topping out and measures like Stamp Duty are putting immense pressure on private landlords.

“There are unintended consequences of squeezing the PRS in order to boost home ownership, not least driving up rents and limiting the choice for tenants across the country.”

Brits don’t feel like ‘proper adults’ until 29 years old, research suggests

Published On: August 2, 2019 at 9:23 am

Author: Em Morley

Categories: Property News

Tags: property investment

A study by Nottingham Building Society has found that nearly three in five Brits included in its survey didn’t feel like a ‘proper adult’ before the age of 30.

The survey included 2,000 people and looked into factors which Brits believe qualify them as ‘proper adults’. This ranged from owning a property to starting a family and consistent saving habits.

25% also believed that they wouldn’t feel like a ‘proper adult’ until they reached the age of 60 or over. The survey looked into the main reasons for this:

50% admitted they are avoiding serious responsibilities
48% said they are relying on parents for support
35% responded that they are still having fun.

Many of the reasons were also money-focused, with lots of Brits needing financial stability before feeling grown-up. A third stated that poor money skills were preventing them from being a ‘proper adult’. Nottingham Building Society has also pointed out that 37% of women responded that they do not feel mature until they are financially competent, compared to 29% of men.

Property was mentioned as a key milestone, with 21% of Brits believing that they need to own a house or flat before reaching adult status. The Government’s Lifetime ISA scheme makes achieving this goal easier for first-time buyers aged 18-39, with buyers able to get an annual bonus of up to £1,000 on top of their savings to put towards their first home.

These are the top ten factors for why some don’t feel like a ‘proper adult’:

Trying to avoid serious responsibility (50%)
Relying on parents for support (48%)
Still just wanting to have fun (35%)
Not good at managing money (33%)
Having no savings (33%)
Spending all savings on holidays or social events (32%)
Not owning property (21%)
Not having progressed far in a career (18%)
Having no children (15%)
Not being married (12%)

Jenna McKenzie-Day, Senior Savings Manager at The Nottingham, said: “The survey data has given an interesting insight into British attitudes towards saving and how having control of your finances is such a big part of feeling like a true ‘adult’.

“There really is no age limit on starting your savings journey, and there are a few simple steps you can take to start effectively managing your money, such as tracking your spending habits through an app, or setting up a budget spreadsheet to see how much you can realistically save each month.

“For long-term saving plans like buying a house and retirement, a Lifetime ISA can be really valuable, and a great product to help you on your savings journey. In our recent survey, over half of the savers questioned were unaware of the LISA and the 25% bonus on offer.

“If you start saving early enough, you can earn as much as £32,000 in bonuses from the Government, so that feeling of being an adult – may be more within reach than people realise.”

Property Values in Britain: Rises and Falls so far this Year

Published On: July 29, 2019 at 8:40 am

Author: Em Morley

Categories: Property News

Tags: house prices,property investment

Zoopla’s latest figures show an increase in the average British property value by £2,046 during the first half of 2019.

Regionally, this is led by the West Midlands, with an average increase of £6,695 since the start of the year.

The worst performing region in Britain was London, which has so far this year fallen significantly by £13,035.

Regional value changes since January 2019

Rank	Region	January value (£)	July value (£)	£ total change	£ change per day
1	West Midlands	£230,676	£237,371	£6,695	£36.58
2	South East England	£406,821	£413,284	£6,463	£35.32
3	North West England	£198,446	£202,177	£3,731	£20.39
4	Wales	£190,610	£193,910	£3,300	£18.03
5	Yorkshire and The Humber	£181,918	£184,181	£2,263	£12.37
6	East of England	£360,707	£362,823	£2,116	£11.56
7	East Midlands	£224,352	£226,177	£1,825	£9.97
8	North East England	£192,388	£193,663	£1,275	£6.97
9	South West England	£309,333	£310,165	£832	£4.55
10	Scotland	£194,942	£191,174	-£3,768	-£20.59
11	London	£670,535	£657,500	-£13,035	-£71.23

Looking at individual towns, Berkhamsted (in Hertfordshire) has seen the biggest increase. The average home here has increased by £33,875. The worst performing town was Leatherhead in Surrey, which saw average property values fall by £16,309.

Laura Howard, spokesperson for Zoopla, commented: “The UK housing market gained £60bn in value during the first six months of the year. An increase in the total value of housing was recorded across nine of the 11 regions analysed, with average property values in the West Midlands making the most money for homeowners.

“Perhaps then, it is no coincidence that in the last six months residents in the West Midlands, more specifically those in Birmingham, have been the most regular visitors to Zoopla’s house prices tool, which gives a price estimate for the value of homes, down to a single address.

“At the other end of the spectrum, residential values in London have continued on the downward trajectory of the last three years. However, a patchwork of micro-markets in the capital means there are a number of neighbourhoods – from Notting Hill to Forest Hill – that are bucking the trend of price falls and registering price rises.

“The difference in London’s house price activity is perhaps reflected by the fact that three of its boroughs (Wandsworth, Bromley and Croydon) feature in our top 10 locations where residents most-used our house prices tool. Homeowners in those areas are eagerly looking to see whether their home is increasing or decreasing in value in a mixed performance market.

“Whilst our house price tool is a helpful starting point for consumers, we always recommend vendors, buyers, landlords and tenants alike speak to one of our local agents who will be able to provide a wealth of industry knowledge and on the ground insights on local markets.”

PRS Regulations Can Greatly Benefit from Latest Technology, says Gas Tag

Published On: July 15, 2019 at 8:08 am

Author: Em Morley

Categories: Lettings News

Tags: property investment

The ever-increasing amount of lettings regulations in the UK is proving a challenge for letting agents and landlords, according to research from Gas Tag.

Property professionals are struggling to remain compliant and protect the safety of tenants without the aid of the latest technology, it states.

Gas Tag, the gas safety compliance solution, says the best technology will be key in helping agents and landlords to stay on the right side of the law over the next few years. It is there to reduce the margin for error and to save time.

150 acts of Parliament and counting…

It was earlier in the year that the Residential Landlords Association (RLA) highlighted that there are now over 150 acts of Parliament that contain more than 400 pieces of PRS regulations affecting the private rental sector (PRS).

Gas Tag point out that, since then, the Homes (Fitness for Human Habitation) Act and the Tenant Fees Act have been introduced. There are also more PRS regulations, such as mandatory electrical checks and tightening of energy efficiency rules, set to come into force within the next few years.

Paul Durose, founder and CEO of Gas Tag, says: “It’s hugely important for letting agents and landlords to comply with all regulations, as they are in place to ensure tenants’ safety and contribute towards reducing the number of rogue operators in the industry.

“However, it’s easy to see why some might be finding it difficult to stay on top of everything. This is also demonstrated by some local authorities’ well-documented struggles to effectively enforce PRS regulations.”

Although, it’s worth noting that Vanessa Warwick, co-founder of PropertyTribes, clarifies in an article discussing the Homes (Fitness for Human Habitation) Act: “There are no new obligations for landlords under this Act; the legislation requires landlords to ensure that they are meeting their existing responsibilities with regards to property standards and safety.”

Technology can help to manage compliance demands

The pressure is increasing for agents, as the number of PRS regulations continue to rise. Such pressure can lead to an increased chance of human error or people taking shortcuts. This could ultimately put the safety of tenants or the future of the landlord’s property investment at risk.

Durose explains: “With time pressures on agents becoming greater, technology solutions which focus on compliance are needed now more than ever to help agents reduce risk, improve efficiency and free up more hours.

“On top of this, agents with more time on their hands can focus on providing the best customer service, while staff can move away from repetitive administration tasks and return to managing the parts of the lettings process they enjoy most.”

He also believes that the right technology can also help agents to work more transparently, which can improve the effectiveness of industry regulation and ensure the rental sector is safer and more professional.