Showing posts with label Landlords. Show all posts
Showing posts with label Landlords. Show all posts
Now is a great time to re-mortgage as competitive deals
flood the market. More than half the number of people re-mortgaging in May took
advantage of the great deals currently on offer, according to research from
LMS.
Some 56% of those who re-mortgaged in May reduced their
monthly mortgage payments, with around a third reducing their monthly outgoings
by up to £500.
The study also revealed that the number of people
re-mortgaging to increase the size of their loan rose by 2% to 26%. Meanwhile
the volume of people increasing their loan by more than £10,000 rose 3% to 19%.
Drilling down into the findings, one in five (19%) borrowers
used the cash released from re-mortgaging to spend on home improvements. 7%
opted to pay off other debts and 3% borrowed in order to help their children up
the property ladder.
Andy Knee, Chief Executive of LMS, said: “Increased
competition between lenders, record low rates and rising housing equity have
come together to provide homeowners with a setting that is ripe for re-mortgaging.
The number re-mortgaging hit a seven-year high in April and with over half of
those lowering their mortgage rate and a quarter increasing the size of
their loan in May, it is clear that many savvy borrowers are taking advantage
of the current climate and we expect activity to maintain its momentum.
“We’re also seeing evidence in the market that many re-mortgagors
are opting for a fixed rate to guarantee a set rate for a set period. Locking
in is very competitive right now with huge savings to be made in the long-run
even if it means in the short term they pay a little more. With an uncertain
economic climate, knowing what your mortgage payment will be for five years is
a very seductive offering for many re-mortgagors.”
At Orchard & Shipman we work with highly experienced
financial services partners to offer our landlords the best value and quality
financial products on the market including mortgages, buildings and personal
insurance. If you wish to take advantage of the great mortgage deals currently
on offer or if you want to find out how we could assist you with your financial
needs, then visit http://www.orchard-shipmancorporate.com/services/financial-services/
or contact Orchard & Shipman today.
House
prices in the UK increased by 9% in the year to March 2016, up from 7.6% in the
year to February 2016.
House
price annual inflation was 10.1% in England, 2.1% in Wales, 6.4% in Northern Ireland
but fell by 6.1% in Scotland. The average house price now sits at £292,000,
according to the data from the Office of National Statistics.
The
data also shows that on a seasonally adjusted basis, average house prices
increased by 2.5% between February 2016 and March 2016. Additionally, prices
paid by first time buyers were 9.7% higher on average than in March 2015. Yet
for owner-occupiers prices only increased by 8.7% for the same period.
There
has been plenty of talk surrounding the potential impact the 3% stamp duty
surcharge would have on the UK property market. With some experts stating that
it would only increase the burden on first time buyers, as traditionally,
buy-to-let investors and first time buyers seek the same type of properties.
Looking at the price increases for first time buyers, it is evident that it has
had an impact.
This
goes against Osborne’s objective of reining in the buy to let market to help
ease the burden on first time buyers and take the heat out of the market. Some
investors may have looked to rebalance their portfolios and purchase cheaper
properties that have a lower tax band in order to minimise their outgoings –
directly competing with first time buyers.
Richard
Snook, senior economist at PwC, explained that due to the rush of buy to let
investors trying to complete purchases before the 3% stamp duty surcharge at
the beginning of April it has affected the figures.
‘This
move undoubtedly drove up demand and prices in March and we would expect demand
to soften over the next few months as a result. There are no signs of any
Brexit related slowdown in this month’s figures, although the underlying trends
are masked by the effects of the stamp duty change,’ he said.
Randeesh Sandhu, Chief
Executive Officer of Urban Exposure, the residential development finance
provider, believes that activity within the market is likely to slow down in
the coming months. Mainly in part because of the run up to the EU referendum
with consumers remaining cautious against the possibility of Brexit.
He remarked; ‘However, it
is clear that demand for housing remains strong and any impact of a Brexit is
likely to be a short term trend with activity returning to normal soon after
any decision. Therefore a real focus needs to be given to the housing shortages
the UK faces,’
‘Where there is a real
opportunity, in London and across the UK, is the use of brownfield sites.
Unlocking this land could lead to an estimated 365,731 new homes in London
alone. To capitalise on this opportunity, the new Mayor must review the
planning process, the costs associated with developing on brownfield sites and
look at how to accelerate brownfield site development in order to deliver the
homes that the UK needs,’ he added.
Until the government
tackles the housing crisis that is currently gripping the country, house prices
will continue to rise, first time buyers will continue to struggle to get onto
the property ladder and buy to let investors will continue to be seen as easy
scapegoats. We understand the unfair position landlords are being put in and
believe that not only do landlords offer a much needed service but one that is
vital to the health of the UK property market.
If you have
any queries about how these changes could affect you, please don’t hesitate to
contact Orchard & Shipman today. As a company with 28 years’ of experience
dealing with landlords, our team of experts understand the impact a change in
government policy can have. We’re readily available to guide and advise you
through these sometimes confusing changes in legislation.
It’s no secret that first and even second-time buyers face
significant hurdles to getting onto or climbing up the property ladder. With
average deposit levels in 2015 breaking the £25,000 barrier across the UK, and
the £75,000 level in London, home ownership for younger households has
increasingly looked more like a pipe-dream. Add in the effective requirement
for a couple to both be in the top 25% of earners to afford a London borough
property at a standard 3½x loan to value mortgage multiple, and you can begin
to see the reason behind the continued growth in the rental sector.
The long-term effect of legislative attempts to “take the
heat out” of the buy-to-let sector remain as yet uncertain. None of the
measures targeting buy-to-let appear to significantly assist first-time buyers,
and the predominant issues of deposit level and income-multiple viability
remain for the bulk of younger households. The short-term reality is that the
number of households requiring rented property will continue to grow, and the
prospects for the buy-to-let sector remain optimistic.
Whilst the
sector outlook should provide comfort for portfolio-holders and investors, in
these times of shrinking margins and greater legislative responsibility,
whether you are a multi-property professional investor or a part-time
“accidental” landlord, understanding how
to protect your investment is more important than ever.
It
shouldn’t cost the earth to keep a well maintained property with happy tenants.
The failure to do so however can see projected yields quickly turn into
financial loss. With 28 years of experience of managing investment portfolios
from executive lets right through to social housing, Orchard & Shipman have
some clear advice for first-time or experienced landlords. Get these basics
right and in place every time to protect you, your investment and also your
tenants.
1. Written
Tenancy Agreements
An absolute
must, regardless of whether you are letting your property to a friend,
colleague or a complete stranger. An AST (Assured tenancy Agreement) is the
most widely used type of tenancy in the rental sector, and will assist you in
the return of your property at the end of the term. Your Lettings agent should
be able to provide you with copies of this agreement, and talk you through how
the AST will protect you as a landlord.
2. Deposit
Protection Scheme
Landlords
are now legally obliged to register a deposit with an approved deposit
protection scheme. We register deposits with schemes such as DPS or My
Deposits Scotland for the protection of both tenants and landlords.
3.
Insurance
Landlords
will need to discuss use of their property for private letting, as failing to
declare that your home is now being used in a rental capacity will often
invalidate many policies. If the worst happens and your house burns down during
the tenancy, the financial consequences could be devastating. Also, Landlords
should consider Public Liability insurance to cover for accident or injury that
may arise to anyone being hurt whilst in or around your property.
4. Regular
Visits
Regular
visits to the property can assist in ensuring your property remains in good
order, but this doesn’t mean you need to be popping around once a week for
coffee. At O&S we recommend a visit in Month 3 of a tenancy to check the
condition of the property and discuss any issues with tenants, then followed up
by visits every 3-6 months as appropriate. Remember you will need to give at
least 24 hours’ notice of the visit in writing, and it is good practice to have
a written record of any defects, repairs, or comments from the visit.
5. Safety
requirements
Regardless
of the size, condition, location or rental value of a property there are some
basic safety requirements which you as a landlord must ensure are met. These
include compliance with the respective Gas and Electrical Safety Regulations,
ensuring your property has an Energy Performance Certificate and that all
furniture complies with the relevant Fire Safety Regulations. With the added
complication of the additional regulation and best practice around smoke and
carbon monoxide alarms for rented properties, this can seem like a minefield
for landlords. These responsibilities cannot be ignored or avoided – for advice
on what is applicable to your property, your Letting Agent should be able to
assist.
At Orchard
& Shipman we are more than happy to provide advice, support and guidance on
any of the challenges facing landlords today. All of the above and more are
covered by our Full Property Management Solution, details of which are
available at www.os-residential.com or by calling 0203 301 5993
(England) 0131 516 9799 (Edinburgh) & 0141 428 3263 (Glasgow).
Lee
Richards,
Managing
Director
It's great news for landlords and would-be landlords as
buy to let still makes financial sense even after the stamp duty surcharge. New
figures show new high annual returns for landlords.
New data shows that taking into account both rental
income and capital growth, before outgoings, the average existing landlord in
England and Wales has seen total returns rise to over 12% over the 12 months to
March, making it the fastest annual rate of return for existing landlords seen
since November 2014.
If you look at this in absolute terms it means that the
average landlord in England and Wales has seen a return of over £22,000 over
the last 12 months (before outgoings). If you break this down, the average
capital gain contributed £13,494 while rental income made up £8,641.
The gross yield on a typical rental property in England
and Wales (before taking voids into account) hit 4.9% in March. Average rents
across England and Wales now stand at £791 per month (March 2016), some 3%
higher in comparison to the same point last year.
Leading the way in England and Wales is the East
Midlands, where rents are now 8.5% higher than compared to March last year, now
at £613 per month. This is followed closely by the West Midlands with an
increase of 6.7% and London with an increase of 4.6%.
It is the case across much of England and Wales that
demand outstrips supply and it is increasingly becoming more difficult for
supply from landlords to match the demand from tenants. Thus further enforcing
the vital importance private landlord’s play in the UK housing market.
With tenant demand on the rise, is it important that your
property provides exactly what prospective tenants are looking for and that
you’re marketing yourself at a competitive price for both the home and its
location. You can find out exactly how much that is by speaking to Orchard
& Shipman and taking advantage of our FREE Rental Valuation service. By
getting your property professionally assessed you are putting yourself in the
best possible position to make the most of your investment. Simply call your
local Orchard & Shipman property experts and book yours today.
Increasing costs and applying more checks to the buy-to-let
sector is not going to help the wider issue of a declining number of
owner-occupier properties. You only have to look at the facts; the majority
(60%) of lending to the buy-to-let sector is for re-mortgaging and not new
money coming in. The private rental sector plays an increasingly vital and
growing role in the housing market and until the government addresses the issue
of inadequate housing supply, this is not going to change.
While, no one can say with absolute certainty how buy-to-let
investors will react to the changes being introduced, it seems unlikely that
the majority will be put off. When you consider the stamp duty increase, most
investors look for long-term returns over short-term gains. What is more likely
is they will simply set the higher one-off cost/s against years of rental
income and, at the current rate, potential increases in property value.
Others may look down another avenue and look to re-balance their portfolios by purchasing cheaper properties that have lower stamp duty
bands. The issue with this is they then directly compete with first-time buyers
which has always been a point of contention. However, there’s already strong evidence that
the rush to buy property before the April deadline is pushing up house prices.
The additional limiting tax relief on mortgage interest
payments to the basic rate and reducing the relief on wear and tear will
undoubtedly impact on landlords. At the moment, it is too early to say by how
much, though this will vary greatly between investors. Some landlords may look
to combat this by pushing up rent prices, something which the government
cannot have intended. Others may look to set up limited companies in order to
mitigate the impact. Investors will need to take tax advice in order to
identify what will work best for them.
Now a widespread withdrawal from the market by investors
seems highly unlikely. Firstly, according to the Council of Mortgage lenders
only 31% of buy-to-let property actually has a mortgage on it. Secondly, there
is currently a lack of alternatives. Bank returns for savings remain near
non-existent and the stock market brings with it a level of volatility. As long
as there is an inadequate housing supply, prices will continue to rise and
investors will continue to invest into the buy-to-let market for long-term
growth. There is nowhere else where investors can get comparable returns.
If you have any queries about how these changes could affect
you, please don’t hesitate to contact Orchard & Shipman today. As a company
with over 25 years’ experience dealing with private landlords, our team of
experts understand the impact a change in government policy can have. We’re
readily available to guide and advise you through these sometimes confusing
changes in legislation.
According to data from e.surv Chartered Surveyors, January saw
over 85,000 house purchase approvals, which was up from December’s total of
just over 70,000.
Not only is this the highest number for nine years, it also
represents an annual increase of over 39%.
The significant increase in January was powered by an increase
in buy-to-let investors as they seek to beat the impending 3% stamp duty
surcharge from April 1st 2016.
Whilst it could be assumed that February may also reflect this
growing trend of increasing mortgage approvals, whether the trend continues
beyond April 1st 2016 is another matter.
Richard Sexton, Director of e.surv remarked about the buy-to-let
market, stating ‘Concerns about the sector’s growth have sparked a wave of
legislation but as stamp duty changes come into effect this April, there’s been
a rush to get buy-to-let loans approved. Many have predicted a narrowing of the
buy-to-let sector but actually what we’re seeing in lending quarters appears to
be the opposite.’
Furthermore, The Scottish Government are intending to introduce
a 3% supplement on Land and Buildings Transaction Tax (LBTT) for property
owners that buy additional homes in Scotland worth £40,000 or more.
Only time will tell concerning what effect/s the impending stamp
duty surcharge will have on the number of mortgage approvals and ultimately,
the buy-to-let market.
At Orchard & Shipman we work with highly experienced
financial services partners to offer our landlords the best value and quality
financial products on the market including mortgages, buildings and personal
insurance. If you want to find out how we could assist you with your financial
needs, then visit http://www.orchard-shipman.com/services/financial-services/ or contact Orchard
& Shipman today.
Richard Lambert told delegates at the Building Societies Association’s
(BSA) annual get together for mortgage professionals that confidence in landlords' business expectations has dramatically fallen by more than
a third over the past year, now sitting at a an all-time low of 43%.
Mr Lambert also outlined how the actions taken by the
Chancellor regarding last year’s Summer Budget and Autumn Statement have led to
the NLA reversing its previous outlook that stated the private rented sector
(PRS) would continue to grow with another million more households over the next
five years.
It now forecasts that if landlords are to follow through
with their intentions then the buy-to-let market could face a huge shake up. The
result being a dramatic sell-off of 500,000 properties in the next 12 months
followed by another 100,000 properties sold each year up until 2021. The end
result will be that the PRS market will be smaller by up to 136,000 properties.
The findings from the latest NLA Quarterly Landlord Panel
survey show for some interesting reading. The proportion of landlords that are
now looking to sell in the next 12 months has more than doubled since July last
year, now standing at 19%.
Additionally, a significant proportion of landlords (28%)
stated that they don’t plan to purchase any more properties and 10% plan to
actually reduce their portfolio.
Mr Lambert remarked “Up to half a million properties could
come onto the market as a result of the Summer Budget and Autumn Statement,
which the Chancellor will no doubt deem a success. But there is no guarantee
that these will be the one or two-bedroom flats or small houses that will
appeal to first time buyers, especially as landlords are more likely to offload
less desirable stock in less desirable areas.”
Only time will tell in order to see what the impact of these
changes announced by the Chancellor will have on the buy-to-let market.
If you have any queries about how these changes could affect
you, please don’t hesitate to contact Orchard & Shipman today. As a company
with over 25 years’ experience dealing with private landlords, our team of
experts understand the impact a change in government policy can have. We’re
readily available to guide and advise you through these sometimes confusing
changes in legislation.
Under right to rent, landlords
are obligated to check the immigration status of tenants to ensure they are legally allowed to
be in England. They also have to report those who are not to the Home Office.
If landlords are found guilty of breaking the rules they face
fines of up to £3000. The Home Office has remarked that the new rules will make
it harder for illegal immigrants to stay in the UK and make it easier to tackle
rogue landlords who house them.
It is also important to remember that landlords in England
must carry out these checks in the 28 day period leading up to the start of the
tenancy. It takes time for the necessary documents to be produced, verified and
copied so keep in mind the deadline in order to avoid falling foul of the
rules. The
checks need to be made using original documents and in the presence of the
holder of that document, or with them available by video link. Landlords are
also required to keep copies of the original documents.
Responsibility
for the checks can be passed onto letting agents. However, you must remember
that this needs to be in the form of a written agreement or otherwise they will
be considered your responsibility.
If
you have any queries about how these changes could affect you, please don’t
hesitate to contact Orchard & Shipman today. As a company with over 25
years’ experience dealing with private landlords, our team of experts
understand the impact a change in government policy can have. We’re readily
available to guide and advise you through these sometimes confusing changes in
legislation.
So for example, this means that the stamp
duty bill for a £285,000 buy-to-let property will rise from the current £4,250
to £12,800 from April next year.
Some say buy-to-let property will be worth
less because potential property investment landlords will not be willing to pay
as much for them. Additionally, if house builders or existing homeowners don’t
feel they are going to get as much for them, then there is less motivation to
build or sell them.
The person we can blame for this is George
himself.
Back in 2012, he chose to utilise the British
housing market to kick-start the UK economy, with subsidies, Funding for
Lending, and Help to Buy. However, whilst this may have helped the Tory’s get
back into power in 2015, some say this impressive growth in the UK property
market has been at the expense of pricing out youngsters wanting to buy their
first home.
Others say this is the straw that broke the
camel’s back, as over the next four years buy-to-let landlords will slowly lose
the ability to offset all their mortgage interest against tax on rental income,
after changes announced in the Summer Budget.
At the moment, property landlords can claim tax
relief on buy-to-let mortgage monthly interest repayments at the top level of
tax they pay (i.e. 40% or 45%). However, over the next four years this will be
reduced slowly to the basic rate of tax – currently 20%. Could this mark the
end of buy-to-let property investment? Possibly – but before we all run to
hills panicking, let us give you another scenario to consider.
Stamp Duty rules were changed in December
2014. Before then, property landlords were eagerly buying up properties under
the ‘old slab style Stamp Duty’ system. For example, the stamp duty bill on
that £285,000 property was lower on the old slab style duty (pre Dec 2014), at
£8,550, yet it isn’t a million miles away from new £12,800 stamp duty bill.
Interestingly though, Osborne has left a
legal loophole in the new rules, because when it comes to selling up, property
investors can offset purchase costs against any eventual capital gains tax,
including stamp duty.
We believe that total returns from buy-to-let
will continue to outpace other investments, such as the stock market, gilts,
bonds, and even pensions. Also, the best part about investing in property is
that it is bricks and mortar. You can touch it, you can feel it, and it isn’t
controlled by some City whiz kid in Canary Wharf. The British understand the
benefits of property investment.
Buy-to-let investment has enough impetus
behind it that prospective property landlords will continue to buy, even with a
larger stamp duty Bill. Investment landlords will need to be savvy with what properties
they buy, to ensure the extra stamp duty costs are mitigated. Buying buy-to-let
property is a long-term venture.
In the past, it didn’t matter what property
you bought or at what price – you would always make money. With these extra
taxes, the adage of ‘any old house will make money’ has gone out the window. You
wouldn’t dream of investing in the stock market without at least looking in the
newspapers or taking advice and opinion from others, so why wouldn’t you take
the same advice and opinion about purchasing a buy-to-let property?
If you have any queries about how these
changes could affect you, please don’t hesitate to contact Orchard &
Shipman today. As a company with over 25 years’ experience dealing with private
landlords, our team of experts understand the impact a change in government
policy can have. We’re readily available to guide and advise you through these
sometimes confusing changes in legislation.
Now that winter is around the corner and temperatures are beginning to plummet in some areas of the country, landlords are being advised to ensure that their boilers are in good condition ahead of the impending cold weather.
New analysis from Direct Line for Business revealed that the number of broken down boiler claims increased 37% last winter compared to 2013. When you compare that to the winter of 2012, the increase is even more significant at 151%.
The main reasons for boiler breakdowns include the heat exchanger cracking or rapturing, valves failing, seals leaking, circuit fault and frozen pipes.
Jane Guaschi, business manager at Direct Line for Business said: “Winter sees a spike in claims for boiler breakdowns, so we hope that landlords have safeguarded their properties against catastrophes over the cold snap.
“Making sure the boiler is regularly serviced by a Gas Safe registered engineer can help avoid any future disruption and can also ensure maximum efficiency of the central heating system. It’s a good idea to schedule the service for the boiler at the same time as the annual mandatory Gas Safety Check.”
There are some things that landlords can do in order to ensure that their properties remain warm over the winter period and help alleviate any potential problems from occurring:
- Keep the heating on: With the cold weather modern condensing boilers can become susceptible to frozen pipes. You should ensure tenants keep the heating on low during the cold weather rather than turning it off completely.
- Bleed radiators: If you feel that the radiators are not warming up as they should, it could be down to the fact that there is air trapped in the system. You should try bleeding the radiators to see if it alleviates the problem.
- Service your boiler: It is a good idea to ensure that your boiler is serviced once a year. This will allow you to prevent any potential problems or to minimise any that could have otherwise become serious. It is also a good way of prolonging the life of your boiler.
If you have any queries concerning the above, please don’t hesitate to contact Orchard & Shipman today. As a company with over 25 years’ experience dealing with private landlords, our team of experts understand the impact something like cold weather can have. We’re readily available to guide and advise you through whatever concern you may have.
The changes which were announced in the Spending Review and Autumn Statement will add 3% to the rate of stamp duty paid by those who already own property from April 2016.
This means that the tax bill for a buy-to-let property that costs £250,000 will now dramatically increase from £2,500 to £8,800. Another example, a £450,000 property will see the tax rise from £7,500 to £18,000, an increase of over £10,000.
A number of experts have voiced concern over what the new tax could mean for the buy-to-let market. Rachael Griffin, financial planning expert at Old Mutual Wealth, said: “Many landlords are already concerned that the margins on buy-to-let investment are being squeezed and for some this may be the final nail in the coffin. It could trigger a wave of sell-offs from buy-to-let landlords looking to avoid the surcharge in April 2016.”
Other experts feel that these measures may dampen demand within the buy-to-let market as investors see diminishing returns and may decide to re-evaluate the attractiveness of the market as a result of this announcement by the Chancellor.
This is the second blow to buy-to-let investor in 2015. Only earlier this year in the Summer Budget in July came the announcement that landlords’ ability to offset mortgage interest costs against rental income would be reduced. That change will be phased in between 2017 and 2020. It is expected that it will substantially reduce the yields on investment properties and for some make existing buy-to-lets unprofitable.
If you have any queries about how these changes could affect you, please don’t hesitate to contact Orchard & Shipman today. As a company with over 25 years’ experience dealing with private landlords, our team of experts understand the impact a change in government policy can have. We’re readily available to guide and advise you through these sometimes confusing changes in legislation.
Landlords are being urged to utilise a new procedure which will allow them to gain access to their properties to carry out any essential work, in order to help maintain the standards of property in the Private Rented Sector (PRS) in Scotland.
The procedure, which came into force on 1st December 2015, was granted by the Scottish Parliament under the Private Rented Housing Panel (Landlord Applications) (Scotland) Regulations 2015.
The new regulations will now give landlords the option to apply to the Private Rented Housing Panel (PRHP) in order to gain a right of entry to one of their properties where they wish to check it meets the minimum repairing standards or if they need to carry out any work required to meet the repairing standard.
John Blackwood, chief executive of the Scottish Association of Landlords (SAL), the organisation that lead a long campaign for the new regulations, said: “By putting in place a clear procedure where they can apply for a right of access to check a property meets the minimum repairing standards or to carry out any work required to meet the repairing standard, landlords will be able to ensure homes are in top condition.
“These new measures put in place a clear procedure for a landlord to apply to the PRHP to gain access to the property so they can be properly maintained without compromising the tenant’s security of tenure.”
If you have any queries about how these changes could affect you, please don’t hesitate to contact Orchard & Shipman today. As a company with over 25 years’ experience dealing with private landlords, our team of experts understand the impact a change in government policy can have. We’re readily available to guide and advise you through these sometimes confusing changes in legislation.
Tenant demand for property in the UK continues to increase; a study carried out by the National Landlords Association (NLA) has shown.
The research, conducted by the NLA Quarterly Landlord Research Panel, found that the need for tenant housing, depending on the area, has generally stabilised or increased over recent months and years.
The research pointed out that around one in five landlords were uncertain about the demand in the letting market in their area, perhaps because they had no recent experience with new lettings. However, in total, an average of 40 percent of landlords had seen an increase.
The results showed the East of England to have the highest net growth in tenant demand, coming out at a 48 per cent increase. The South West saw the second biggest growth, at 45 percent. Third was the South East, with a 41 per cent increase and lastly outer London had a growth of 40 per cent.
However, there is some uncertainty about the future for both landlords and tenants. As of April 2017, the tax reliefs equalling either 40 per cent or 45 per cent of a landlord’s interest payments on buy-to-let mortgages will no longer be available. Over a four year period, these rates will instead be set at a maximum of 20 per cent. The impact of the government’s decision to reduce support for buy-to-let landlords is yet to be fully seen, but the potential ramifications could see landlords having to sell off their property or increase their rent prices to cover the additional costs.
With tenant demand on the rise, it is important that your property provides exactly what prospective tenants are looking for and that you’re marketing yourself at a competitive price for both the home and its location. You can find out exactly how much that is by speaking to Orchard & Shipman and taking advantage of our FREE Rental Valuation service. By getting your property professionally assessed you are putting yourself in the best possible position to make the most of your investment. Simply call your local Orchard & Shipman property experts and book yours today.
The buy-to-let market is a huge industry in the UK, with landlords using property as a way to maximise their investments and take advantage of the cultural shift away from buying towards renting. But where are the most lucrative places to invest and let property?
At Orchard & Shipman we work closely with landlords to make sure that they are making the most out of their investments. When it comes to the property rental market it is important to know what your home is worth and where to find the ideal tenants. Whether you are looking to buy in a ‘hotspot’ area, or somewhere you feel has potential, contact Orchard and Shipman to find out exactly how much you could earn by working with us. Wherever you are considering buying we are always looking for landlord partners, call your local Orchard & Shipman property experts today.
In research undertaken by Barclays Bank it was found that the cities in which mortgage customers were investing in rental property more than any other were London, Birmingham and Bristol.
For Birmingham it is felt that the increase is primarily down to the HS2 train line that is planned and the opportunity it brings for Midlands commuters to get quickly to the capital. By investing now in advance of the 2017 construction date, landlords are cleverly getting themselves in a position to use HS2 to their advantage.
The most popular buy-to-let towns in the country included areas such as Slough in Greater London, as well as University spots such as Nottingham and Manchester. Plymouth too has felt the benefits of BTL, jumping massively in the standings of properties purchased for rental from 212th to 16th in the space of just 12 months. With a £90m investment heading in the direction of the South West and the economy growing as a result, there are many reasons for Plymouth property investors to feel confident in the market.
One of the most interesting findings was that three quarters of buy-to-let homeowners were using their property for future investment, to supplement their retirement or put children through higher education. Also, although the government recently vowed to cut the tax relief that BTL landlords receive, only one in ten landlords were looking to sell their properties. With more than 75% of BTL property owners managing more than a single property, it is obvious there is still money to be made in BTL investment. Bradford and Glasgow lead the way on those terms, with an average of eight properties per person.
The types of properties that are being bought for rental are changing too. Although the traditional ‘lived-in’ house is still popular, former council flats are beginning to be used in BTL more and more. A sturdy structure with good transport links and a growing economy are the key features that investors are looking for, with minimal renovation required on the inside. With areas such as Plymouth and Peterborough leading the way, it shows that being outside of the major cities isn’t a disadvantage either. Potential is important, and the buy-to-let scheme still has plenty of it.At Orchard & Shipman we work closely with landlords to make sure that they are making the most out of their investments. When it comes to the property rental market it is important to know what your home is worth and where to find the ideal tenants. Whether you are looking to buy in a ‘hotspot’ area, or somewhere you feel has potential, contact Orchard and Shipman to find out exactly how much you could earn by working with us. Wherever you are considering buying we are always looking for landlord partners, call your local Orchard & Shipman property experts today.
As owner-occupation continues to decline in the UK, the
population is turning to a certain group of people who help fill the gaps in
the housing shortage.
But how much do you know about the average landlord? Our infographic below explores the State of
Residential Investment Landlords. From profiling their current assets, to the
journey of their tenants through their rental cycle.
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Circumstances rather than design are what sets apart almost 25% of landlords. Consumer buy to let contracts or what is commonly more known as 'accidental landlords', are on the increase.
Our infographic below shows that their reasons for entering the market vary. For the majority, this unplanned foray into the lettings world is a stepping stone to creating a property portfolio.
The legislation involved in the private letting industry is also complex and although many new landlords are successful and continue to expand their portfolios, many find themselves in difficult and costly situations.
A solution for many accidental landlords is to seek a property partner who will deal with the day to day management of the property and tenant relationships. At Orchard & Shipman we have 27 years of experience in the residential lettings and property management industry; our landlord clients have the assurance that their assets are in good hands. We offer landlords a complete property package including:
✓ guaranteed rent with no void periods
✓ best of all we have no legal, agency or management fees
✓ guaranteed rent with no void periods
✓ a full property management service available 24 hours, 365 days of the year
✓ full protection against tenant damage, long term lease options✓ best of all we have no legal, agency or management fees
Our teams do everything from dealing with any neighbourly disputes involving tenants to keeping you, the landlord, aware of your legal obligations. To find more about how we could assist your accidental landlord vocation or for any advice contact 01895 208877.
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For those looking to invest their money, the property market is a lucrative option. Property is tangible and is arguably a stable and lower risk investment. These days with a wider choice of buy-to-let mortgages and more people seeing their home as an asset, rather than just a place to live in, getting your foot on to the Landlord ladder is not a difficult prospect.
Research by Savills shows that in the last 5 years landlords earned an astonishing £177 billion just from the increase in value of their property investments. This growth in the size of the rental market is down to a number of things but is mainly propelled by the fact that there is simply not enough housing to satisfy increasing demands.
Last year alone the total value of privately rented housing in the UK was valued at around £1,159 billion, an increase of over £800 billion since 2002; and this number is only going up. One area of the market which is fast gaining popularity is Social Housing. Over the past few years its value has increased by 20%; as more and more Landlords seek to make socially conscious investments.
Although interest in Social Housing is increasing there are still stigmas attached to tenants on housing benefits; the Guardian newspaper has listed seven reasons why landlords won't let to tenants on benefits.
At Orchard & Shipman we specialise in outsourcing housing for our Local Authority Partners across the country. We offer our clients all the guidance they need to enter the rental market and a range of benefits which take the hassle out of being a social housing Landlord.
At Orchard & Shipman we specialise in outsourcing housing for our Local Authority Partners across the country. We offer our clients all the guidance they need to enter the rental market and a range of benefits which take the hassle out of being a social housing Landlord.
To find out more about becoming a property partner with us and the benefits of investing in social housing, visit our website.
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