Posts with tag: rental property Mayfair

Results revealed for InterBay’s buy-to-let refurbishments report

Published On: October 1, 2019 at 9:24 am


Categories: Landlord News

Tags: ,

Mortgage lender InterBay Commercial’s report reveals refurbishments made by landlords have resulted in drastic improvements to the quality of private rental sector (PRS)

The report, entitled Unlocked value: The role of refurbishment in buy to let, shows:

  • The proportion of homes in the PRS in England deemed non-decent by the Office for National Statistics (ONS) has fallen for ten consecutive years, decreasing to 24.5% from 44% in 2008.
  • The number of non-decent homes has fallen in absolute terms, down by 275,000, despite the sector growing by 45% over the period, adding 1.5m homes.
  • It is highlighted that the latest English Housing Survey shows that 84% of private renters were satisfied with their current accommodation.
  • A survey of over 700 property investors shows 70% of landlords who recently undertook a refurbishment did so to improve the property.
  • The same survey revealed 45% made improvements to increase a property’s capital or yield.
  • The analysis shows that landlords typically spent £12,000 per refurbishment, depending on the type of refurbishment.
  • Heavy work, such as a conversion or extension, stood at an average of £40,000.
  • Light work, such as modernisation or redecoration, came to an average of £7,000.
  • Overall, 28% of landlords spent less than £5,000 on their last refurbishment and 43% spent less than £10,000. Only 13% spent more than £100,000.
  • 82% of those who undertook such work saw monthly rent rises as a result. The average rent for a refurbished property rose by £81 per month, up by 8%.

Darrell Walker, Head of Sales, InterBay Commercial commented: “It may be an easy target for political point-scoring, but the PRS has been a success story since the financial crisis, catering for a growing proportion of the population that either cannot or chooses not to purchase a home. As the PRS has grown, it has also professionalised. As it has done so, the standard of accommodation for tenants has improved drastically too.

“Refurbishment has been central to this improvement. It is a win-win for tenants and landlords. Tenants see better quality accommodation, while landlords improve the rent they receive and maximise the value of the property. And with interest rates still bumping along the bottom, those borrowing to support refurbishment can access historically cheap funding to enable improvement works.

“Nonetheless, continued investment in the sector is not a foregone conclusion, and it must be supported rather than undermined. Landlords have been buffeted by the headwinds of policy change since 2015, and costs have risen for investors. Should this rate of change continue, it will weigh on landlords’ decisions to spend more on their portfolios, and risks undermining a decade of progress.“ 

Foreign Student Paying £21,000 Per Month for London Flat

An American fashion student has signed up to rent a flat that costs £21,000 per month, possibly the most expensive student property in London.

The student will pay £5,250 a week for the three-bedroom apartment in Mayfair. The luxury block is being marketed at wealthy foreign students.

A recent study found that there are 67,500 international students attending London universities and they spend £1.36 billion a year on living expenses. In recent years, the luxury accommodation market has been growing, designed to attract the wealthiest overseas students, whose parents often pay a year’s rent upfront.

The nine-storey Fountain House development’s six flats feature stone-floored bathrooms, a 24-hour concierge service and the local grocery shops are Waitrose and Marks & Spencer.

The three-bed apartment is spread over three floors, which are connected by a bespoke glass central staircase.

Estate agent Peter Wetherell is marketing the development, expecting them all to be let for the new academic year. The agency has sent details of the homes to its database of overseas students, and so far, 80% of inquiries have come from abroad.

It says the area is attractive to students from the Middle East, the USA, Asia and Africa, who can afford to pay over £2,000 a week for accommodation while studying at the London College of Fashion, the University of Westminster and the London School of Economics.

Wetherell says the flats are “perfect for a wealthy student wanting a London home”. Adding: “This is part of Mayfair’s residential revival; these properties are reverting back after decades of use as offices.”1

Recently, the National Union of Students (NUS) reported a crisis in university accommodation, with rents rising by a quarter in just three years.

Private providers of student halls are moving into luxury accommodation, targeting overseas students.