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Thursday, April 30, 2015

Tuesday, April 28, 2015

Labours rent controls pointless and costly

I don't see Labour's proposed rent controls as such a bad thing. In fact for me and the probably the majority of landlords they will have no impact whatsoever, other than maybe lock in tenants to 3 year tenancies that maybe they will live to regret ( a lot can change in three years ).

If there is a problem, it will be the cost and bureaucracy involved to implement something that will actually have very little impact on those in the private sector.

Most landlords outside of London and the South East are not ruthlessly raising rents, in fact quite the opposite, many rent index's have seen flat or in line with inflation increases for years.

To take further bluster away from Ed Milliband's proposal, the latest rental survey from LSL Property Services predict if anything, rent increases will be  slow even further. 

In the LSL survey, landlords anticipate that they will increase rent by just 1.7 per cent over the course of the next year. The current annual rise in this particular index is at 3.7 per cent (  hardly out of control).

What the media and left wing politicians try to ignore, is that most landlords just want to keep their tenants. It takes a long time for any rent increase to off-set the cost of reletting if it loses an existing tenant  ( rental voids, advertising costs, letting fees, time, hassle, re-decoration, council tax and utility costs ).

The LSL survey reflects this, with  proportion of landlords not expecting to raise rents in the next year increasing from 56 per cent in September to 60 per cent.

Once again, a London centric issue, ( rent rises reflecting astronomical price gains ) will be made a national issue.... oh, yes, and it polls well.

But saying that, the Independent puts forward why Ed Miliband's rent controls are a good idea.

It's your choice to decided what you think come Thursday 7th.

Times column on rent controls

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New lenders boost BTL sector

New kids on the block

Andy Young, at Property Hawk Mortgages says:

"2015 is shaping up to be an excellent year for the buy-to-let mortgage market. At Property Hawk Mortgages we have seen a significant uplift in business during the first quarter of the year as the demand from landlords remains strong.

Since the beginning of the year, a number of factors have contributed to this improved level of activity in the marketplace. Firstly, increased competition between lenders has pushed rates down resulting in some exceptionally well-priced products being offered, particularly for mainstream buy-to-let applications. For example, Property Hawk Mortgages has an exclusive scheme through Mortgage Trust at 75% LTV with a 2 year fixed rate of just 2.25%.

Secondly, a number of new lenders announced their entry into the market providing additional options for landlords, especially in niche areas of buy-to-let lending. These new lenders include Fleet Mortgages, Foundation Home Loans and Axis Bank.

Fleet Mortgages entered the market in January as a specialist buy-to-let lender with a wide selection of products including options for HMOs and limited companies. This niche area has primarily been serviced by Paragon Mortgages and Kent Reliance over the last few years, but Fleet Mortgages products are now proving to be a popular choice with landlords too.

Axis Bank is also offering a specialist range of buy-to-let products aimed at HMOs, limited companies and expat applicants and, following a short pilot, is expected to formally launch sometime in May through a number of specialist buy-to-let distributors, including Property Hawk Mortgages.

Foundation Home Loans is another new specialist buy-to-let lender offering a range of products available up to 75% LTV and will accept ‘light adverse’ applications. This means a maximum of one satisfied CCJ/default up to the value of £2000 within the last 24 months with none within the last 12 months; and a maximum of one missed payment in the last 24 months with none in the last 6 months.

It is likely that the buy-to-let mortgage market will continue to improve during 2015 and word on the grapevine is that more lenders may join the throng before the year is out – so watch this space.

Having additional lenders in the marketplace can be very healthy and as competition increases we may see more lenders trying to distinguish themselves through product innovation and changes to criteria.

For example, Mortgage Trust has recently started lending in Scotland, which is a woefully underserviced area of the market; TMW has removed its upper age limit at the end of the mortgage term; Metro Bank has removed its geographical restrictions and now provides buy-to-let mortgages throughout England and Wales. It also offers large buy-to-let loans up to £1.5 million.

Perhaps most interestingly, Woolwich has recently changed its affordability calculator for buy-to-let applications. If the rental income for a buy-to-let property does not fit the required 125% rental coverage, Woolwich will consider any personal surplus disposable income to make up the difference. This is unique in the marketplace at the moment.

From a broker’s point of view it is always good to have more options to consider when trying to place cases for landlord clients. During 2008 and 2009, Property Hawk Mortgages was placing almost all of its business with just two lenders – BM Solutions and TMW. Property Hawk Mortgages currently has 27 different lenders on its panel and places a good spread of business between them."


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Most popular BTL mortgages

Max LTV Initial Rate Term Completion fee Booking fee Incentives Lender
85% 4.99% Fixed 2 Years 2% £130.00 No Kent Reliance Semi Exclusive
85% 5.19% Fixed 5 Years 2% £130.00 No Kent Reliance Semi Exclusive
85% 5.09% Discount 2 Years 2% £130.00 No Kent Reliance Multi Let & Ltd Co. Semi Exclusive
80% 5.39% Variable 0 Years 2% £0.00 No Saffron Light Refurbishment
80% 3% Fixed 2017-05-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
80% 3.25% Fixed 2017-05-31 £2495 £150.00 Free valuation Mortgage Trust Exclusive
80% 3.5% Discount 2 Years 0% £0.00 No Hanley Economic Exclusive
75% 2.75% Discount 2 Years 0% £0.00 No Hanley Economic Exclusive
75% 4.69% Fixed 2 Years 1.5% £130.00 No Kent Reliance Multi Let & Ltd Co. Semi Exclusive
75% 5.39% Variable 0 Years 2.5% £0.00 No Saffron Light Refurbishment
75% 2.25% Fixed 2017-04-30 2.5% £150.00 Free valuation Mortgage Trust Exclusive
75% 3.5% Fixed 2017-04-30 0% £150.00 Free valuation Mortgage Trust Exclusive
75% 4.39% Fixed 2 Years 1.5% £130.00 No Kent Reliance Semi Exclusive
 
 
 
IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice.  
Please check our website regularly to see the most up-to-date products available.    
 
Search the whole BTL mortgage market free
 

Email:info@propertyhawkbtlmortgages.co.uk
Tel: 029 2069 5446
Your home may be repossessed if you do not keep up repayments on your mortgages.  
The Financial Services Authority does not regulate some forms of mortgage.

Monday, April 27, 2015

Labour promise rent controls

Labour will slap a cap on rents according to latest report in the Sunday Times.

These rent controls will prevent landlords increasing rents above the rise in consumer prices.

Put your X in the wrong box on polling day and landlords and tenants may end up with the X shown above...not necessarily what they were expecting with cheaper rents but a shortage of quality rental accommodation.

Rent control may be a great vote winner with 'generation rent' but how would it work in practice?

My Current Rental Scenario
For instance, in my current scenario where I am currently undercharging my tenant by 20% because he is a good long-term tenant.  So, if I can't increase the rent to a market rent accepted by him.  Then my options are to serve notice for possession and kick him out of his home and get somebody else in.  Something that neither of us want.  Labour of course will have to employ an army of bureaucrats to police this or put the cases through an already overstretched legal system.  SENSIBLE POLICY? Only if you are desperate to appeal to the rather misinformed 11 million private renters.

What we should all really be asking for is for the politicians to deliver more houses and housing.  This needs LESS not more control but this might be a little too complicated and long-term for the politicians to deliver and for us the electorate to stomach hence the apparent appeal of Labour's 'quick fix'.

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Saturday, April 25, 2015

A tale of two properties

The general consensus is that property prices apart from in central London, where prices have rocketed have just about recovered their values since the crash. I can prove that actually not only have there been huge variations in property prices based on the part of the country you may have brought in, but also the types of property and the part of the same city.

As they say, a property investor makes their profit when they buy not necessarily when they sell.

Apartment 18, Bloomsbury Court, Beck Street, Nottingham, City Of Nottingham NG1 1DG

 

The first property is a 3 bedroom city centre apartment. We know that it has changed hands 4 times over the last 14 years and prices paid are as follows according to the Land Registry:


2001 26 Nov - £177,350
2004 18 Jun - £195,000
2006 24 Nov - £124,999
2014 2  Sep - £115,000

LOSS of 35%


180 Rutland Road, West Bridgford, Nottingham, Nottinghamshire NG2 5DZ



2001 22 Jun - £105,000
2005 27 May - £183,500
2011 3 Jun - £240,500

GAIN of 129%

Same city, same size (3 beds).  One of the property's is showing a loss of 35% and in the same period the other has grown by 129%. 

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Friday, April 24, 2015

Regional prices start to re-balance

Finally we are seeing the start of a re-balance in UK property pricing. Some of the larger UK regional cities have managed to claw back some ground on London's explosive gains.
 
Hometrack's UK Cities House Price Index for April shows for the first time since 2005 some large regional cities have managed to out-perform central London . 

12 larger regional cities,  Glasgow (7.6%), Manchester (6.8%) and Leeds (6.6%) have registered higher price rises year on year than parts of Central London with, Kensington & Chelsea and Hammersmith & Fulham rising 3.4% and 5.1% respectively.

Well it's a start, but Greater London is still got the march on, with the highest annual growth rates, with Newham strongest at 14.2%.

Homelet's data puts the average UK house price at £186,878.

Figure 1: City Level Summary, March 2015
Source: Hometrack UK Cities House Price Index

Richard Donnell, Director of Research at residential analysts Hometrack, said:

“House price growth is holding up better than expected as a result of a lack of new supply of homes for sale and record low mortgage rates attracting buyers into the market.

“Growth in London is still running in double digits and high capital growth rates in recent years have pushed down average loan to values in London, creating further capacity for additional borrowing for households that can pass tighter affordability tests for new lending.

“The pattern that we are currently seeing in regional cities is similar to what we witnessed in London from 2011 – 2013, except the majority of demand for housing in these cities is coming from domestic owner occupiers. It is not being boosted by international buyers or excess investor demand, as was the case in London, hence the more modest level of price rises compared to recent growth rates in the capital.

"As London’s first time buyers grapple over the affordability of the first rung on the property ladder, there is an opportunity to buy ahead of the curve. Boroughs such as Newham, Redbridge, Greenwich, and Barking and Dagenham offer that elusive mix of short term affordability and good capital growth in the longer term."

Pop star leaves landlord in a spin



Anybody who remembers the 80s will likely recall the band Dead or Alive and their big hit "You spin me round (like a record)". It appears like the controversial lead singer Pete Burns is doing exactly that to his poor landlord after racking up debts (mainly non-payment of rent of £34,000).

Apparently the landlord who used to live in the property has become extremely distressed over the ordeal.  It would be interesting to know if the landlord or their agent had gone through a thorough vetting of the tenant. 

Maybe they were bowled over by the tenants celebrity status!?

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Thursday, April 23, 2015

Scottish property prices jump in Feb

Scottish property prices jumped by 1.7% in February to a high of £169,742 according to Your Move Scotland's latest HPI.

This is the fastest rise recorded since the 2007 crash.

Sales were up 14% month on month but remain 4% lower that in  February 2014.

Christine Campbell of Your Move commented

‘The impressive rise in house prices in February has been influenced by the introduction of the new Land and Buildings Transaction Tax (LBTT) in April, as high end buyers sought to complete expensive purchases under the old stamp duty rates,’

Read in full the Scottish House Price Index for Feb 2015 from Your Move

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Brent HMO landlord fined

Brent Councils landlord licensing scheme has handed out its first fine to landlord Douglas Gerard-Reynolds who failed to obtain a licence for his House in Multiple Occupation. Willesden magistrates court handed the landlord a £1,000 fine as well as court costs of £1,457 and a £100 victim surcharge.

Brent have been running their selective licensing scheme across Harlesden, Wembley Central and Willesden Green areas since January 1st 2015. The scheme runs alongside a borough wide mandatory licensing scheme for Houses in Multiple Occupation.

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Wednesday, April 22, 2015

Landlord in a spin over celebrity eviction

A landlord experienced a breakdown from the stress of evicting their 'celebrity' tenant.

The troublesome celebrity tenant, Pete Burns, is best known as the singer of  pop band Dead Or Alive who had a number one hit single, 'Spin me around' back in the eighties. 

Burns was evicted from his rented London flat today after non-payment of rent of £30,000.

The final bill after legal costs is reported to be £34,000, but whether the landlord will ever see it paid remains to be seen after Pete Burns declared himself bankrupt.

The tenants eviction was carried out by Landlord Action.

Paul Shamplina of Landlord Action, commented

“This has been a complete nightmare for the landlord, he has lost over £34’000 in rent and has suffered a breakdown because of the stress caused by the tenants not paying him the rent and various incidents at the flat, where he’s received numerous complaints.”

“Unfortunately he was too understanding to Mr Burns problems, which has resulted in him being owed over £34,000 and lost so much time , as well as affecting his own well being.”

See pictures and read more on the Pete Burns eviction in the Mirror 

Prime ministerial property rises

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Tuesday, April 21, 2015

My tenant has given me a 'shopping list'!

I've been chatting to one of my long standing tenants.  He's got a veritable shopping list of things for me to do.  It reads as follows:

Hi chris

Heres what needs doing. Its more than it looks. Most of it quick diy jobs
BATHROOM Plug hole chrome has come off.Needs changing Taps need descaling Bath panel needs changing Tiles back of bath gone black as damp coming from below Window frame gone manky Tiles above sink need regrouting and tidying up
BEDROOM Wallpaper coming off in few places on 2 walls. Need stripping (probably) and repainting Big damp spots on chimney breast OFFICE Needs decorating
STAIRS Wood chipping off on banister. Needs planing down sanding n repainting
KITCHEN Window sill got weird black stuff on it always been there

Thanks Masten
Where does this leave me?
OK lots to do.  On the back of this I've chatted with the tenant.  He wants a nice home to live in.  I want him to have a lovely home to live in.  I did mention to him that he is currently paying £500 per month.  A neighbouring property is currently being marketed at £600.  Depending on your maths this is 20% below the current market rate.  So, time for a rental increase.  He agrees with the logic.  So we have reached a rental compromise of £550.  My tenant gets and improving home, I get a bit more rent and some of the capital cost back in rent.  Given that he agrees I can just issue a new tenancy agreement rather than going through the rigmarole of issuing a section 13 notice.

A score draw possibly?!

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Monday, April 20, 2015

Rightmove's April House Price Index

Rightmove's April 2015 House Price Index has been published.

April's HPI was up by 1.6% over the month, with the average property now costing £286,133, a 4.7% increase from this time last year.


  • Highest ever average asking price, now £286,133.
  • Shortage of supply to meet record spring search activity on Rightmove.
  • New seller numbers down 4% so far in 2015 compared to 2014.
  • Searches in March up almost 20% year-on-year to 115 million.
Right move director, Miles Shipside, commented: 

“Record high housing demand and an under-supply of homes have delivered a new all-time high in the price of property coming to market in the month before the election. The high cost of housing is a big concern for many home-hunters, so the contents of the respective party manifestos and well thought-out sustainable solutions to the lack of affordable housing supply will be high on many voters’ agendas too. While the annual rate of price increases may be dropping back, down from 5.4% last month to 4.7% this month, it’s of little comfort to buyers as even more modest increases stretch buyers’ finances into new territory with prices at record average highs. Furthermore, the rapid fall in general inflation means that the inflation-adjusted rate of house price growth remains high.”
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The future of Universal Credit



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Our most popular BTL mortgages

Max LTV Initial Rate Term Completion fee Booking fee Incentives Lender
85% 4.99% Fixed 2 Years 2% £130.00 No Kent Reliance Semi Exclusive
85% 5.19% Fixed 5 Years 2% £130.00 No Kent Reliance Semi Exclusive
85% 5.09% Discount 2 Years 2% £130.00 No Kent Reliance Multi Let & Ltd Co. Semi Exclusive
80% 5.39% Variable 0 Years 2% £0.00 No Saffron Light Refurbishment
80% 3% Fixed 2017-05-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
80% 3.25% Fixed 2017-05-31 £2495 £150.00 Free valuation Mortgage Trust Exclusive
80% 3.5% Discount 2 Years 0% £0.00 No Hanley Economic Exclusive
75% 2.75% Discount 2 Years 0% £0.00 No Hanley Economic Exclusive
75% 4.69% Fixed 2 Years 1.5% £130.00 No Kent Reliance Multi Let & Ltd Co. Semi Exclusive
75% 5.39% Variable 0 Years 2.5% £0.00 No Saffron Light Refurbishment
75% 2.25% Fixed 2017-04-30 2.5% £150.00 Free valuation Mortgage Trust Exclusive
75% 3.5% Fixed 2017-04-30 0% £150.00 Free valuation Mortgage Trust Exclusive
75% 4.39% Fixed 2 Years 1.5% £130.00 No Kent Reliance Semi Exclusive

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice.  
Please check our website regularly to see the most up-to-date products available.    
 
Search the whole BTL mortgage market free
 

Email:info@propertyhawkbtlmortgages.co.uk
Tel: 029 2069 5446
Your home may be repossessed if you do not keep up repayments on your mortgages.  
The Financial Services Authority does not regulate some forms of mortgage.

Savers mull property pension

A survey of over 900 retirement savers over 40 has revealed that more than 50% are already investing in buy-to-let or are actively considering the asset class.  Specifically the survey reveals that 45% of the 915 interviewed would consider investing in buy-to-let.

The survey follows on from the changes in the pension legislation where retirees are able to take a lump sum rather than an annuity making the possibility of a buy-to-let purchase a realistic possibility for the first time.

Should I invest in a buy-to-let pension ?

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Council's £4000 payouts to landlords

According to a Guardian piece, councils in London and the South East are making cash payments of up to £4000 to private landlords to take in homeless families.

Westminster council pays up to £4,000, Tower Hamlets  offer a £2,500 payment for one-bedroom flats and as much as £4,000 for two or more bedrooms properties.Haringey andBarnet, bot offer one-off payments of up to £3,000 and Southwark council is offering up to £2,000 .

The need for these one off payments /sweeteners reflect the increasing reluctance landlords have to renting to housing benefit tenants, both because of perceived risk and the failure of more restrictive housing allowances to match up to the open market rents on offer.

Read the full Guardian article - Council pay landlords £4000 to home tenants

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Friday, April 17, 2015

Buyers suffer pre-election jitters


LSL's House Price Index for March shows a slowing property market as buyers suffer from pre-election jitters (aren't we all?).

The LSL Index fell to its lowest growth rate since 2013, with the annual change down to 5.6%(£14,620).

Despite the slow-down, the market still saw a rise, with the average property price across England and Wales setting a new high -  £275,123.

The agency chain blamed the election for the sluggish market, with supply down 5% on last years first quarter.

Average House Price - £275,123 
LSL Index - 267.7 
Monthly Change % -  0.2 
Annual Change % - 5.6 
Annual Change % (excluding London & SE) - 3.5


Director, Adrian Gill commented: 

“Property prices in England and Wales continue to hit new heights, yet the cogs of the machinery are flagging to the most laboured pace we’ve witnessed for sixteen months. Slowing to 5.6% in March 2015, annual house price growth has now been waning for half a year, and hasn’t been this sluggish since November 2013. But with homes on average worth £14,620 more than a year ago, it’s a far cry from anything worth lamenting from a bird’s eye view – even if people on the ground might feel somewhat differently. While price inflation simply isn’t as rapid as it was, the stamina is still strong, and prices edged forward another 0.2% in March. "

"With the General Election tightening its tempo every week up until May 7th, cautious buyers are holding back to wait and see which way the chips fall." 

Thursday, April 16, 2015

Graph of UK property ownership

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Landlords watch out for the 'Red Mist'


Rents have been rising steadily...Great!

Rental voids are at historic lows brilliant

House prices are rising again superb!

The sun is even shining.  It's a great time to be a landlord!

The only thing is the grey clouds or should I say a 'Red Mist' on the horizon for landlords.

If you think that things couldn't get better then have a look at what Labour have planned for the private rental sector if they get back into power in May.  Make sure your vote counts if you want to keep away the 'Red Mist' ruining the promise of a cloud free summer.

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Wednesday, April 15, 2015

Graph shows housebuilding decline


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ONS report signs of a slowing market


Key points from the Office of National Statistics House Price Data for Feb 2015 are -
  • Prices up 7.2% on the year, slowing from  the 8.4% figure in Jan.
  • Annual inflation now 7.4% in England, 1.1% in Wales, 6.4% in Scotland and 14.2% in Northern Ireland.
  • Annual house price growth is showing signs of slowing across the majority of the UK.
  • Biggest increases in the East at 10.7% and in London of 9.4%.
  • Excluding London and the South East, UK house prices increased by just 5.9% on the year.
  • On a seasonally adjusted basis, average house prices increased by 0.6% between January and February 2015.
  • First-time buyers paid 7.4% more on average than in Feb 2014. 
  • Owner-occupiers (existing owners), paid  7.2% more 7.2% than Feb 2014.


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When will interest rates rise?



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CML reflects increasing BTL popularity

The Council of Mortgage Lenders report that 15,900 buy-to-let loans were completed in February.

Although of fall of 13% on January's figure, the rate is 11% up on February 2014 figures and we are still yet to see the effects of the pension reforms.

Homelet's rent data for Feb 2015

Homelet's latest rental data for Feb 2015, shows London rents stable, whilst outside the capital is seeing rises.

Homeless puts the average UK rent at £899, another small rise, with the figure being £889 in Jan 2015 and £873 in Dec 2014.

Seven out of twelve UK regions have recorded a rise in rents in the three months leading to February 2015 with the best performing region being the North East with a 3.1% rise.  Rises were recorded in the South West, East Anglia, the North West of England, Northern Ireland, the South East and Yorkshire & Humber.

The regions reporting falls were, Greater London, the West Midlands, Wales, the East Midlands and Scotland.

Homelet's data puts UK average rental growth over the past 12 months at 10.2 %.

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Tuesday, April 14, 2015

Phenomenal buy-to-let returns - I'm sceptical

I'm sceptical about some research from the Wriglesworth Consultancy on buy-to-let investment returns.  Going on my experience of holding a small portfolio of 8 properties in the Midlands.  The figures that suggest for every £1000 invested in 1996 would by the final quarter of 2014 be worth almost 15 times this amount seems phenomenal and a little unbelievable.  Even with the beneficial impact of gearing which increases any landlord potential returns by being able to leverage their investment capital  and thereby increase the returns by almost 3 times seems to over estimate the returns I've experienced.

Figures seem over inflated
It leaves me thinking that these figures over egg the returns.  Clearly, a big part of looking at returns for any asset class is the period you pick.  As not only a property investor and landlord I also have a significant portfolio in shares.  Having kept my nerve after the financial crash I know that my portfolio of shares has more than doubled since the dark days in 2008.  Residential property does have a large advantage over equities in that rarely does the value reduce in real terms which means that you very rarely have to nurse a capital loss (although landlords buying over priced city centre apartments may have different stories to tell).

Landlord returns have benefited from low borrowing costs

The revelation for many landlord has been the historically low interest rates since the crash.  This means that net annual rental returns which for many landlords have been very small are now significant.  This obviously increases dramatically historic returns.  I also suspect that these figures also reflect an aggregate figure for UK residential property market which of course includes London.  If you strip London house price rises out of the equation I suspect that the figures would still be good but slightly less stellar than the returns that these figures suggest.  For peoples reference the relative returns for investment of a £1000 in the period from the final quarter of 1996 - 2014 is as follows:

1. Buy-to-let £14,897 (geared investment borrowing 75%)
2. UK commercial property £4,494
3. UK government bonds £3,329
4. UK equities £3,119
5. Cash £1,959

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Monday, April 13, 2015

The most popular BTL mortgages

Max LTV Initial Rate Term Completion fee Booking fee Incentives Lender
85% 4.99% Fixed 2 Years 2% £130.00 No Kent Reliance Semi Exclusive
85% 5.19% Fixed 5 Years 2% £130.00 No Kent Reliance Semi Exclusive
85% 5.09% Discount 2 Years 2% £130.00 No Kent Reliance Multi Let & Ltd Co. Semi Exclusive
80% 5.39% Variable 0 Years 2% £0.00 No Saffron Light Refurbishment
80% 3% Fixed 2017-05-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
80% 3.25% Fixed 2017-05-31 £2495 £150.00 Free valuation Mortgage Trust Exclusive
80% 3.5% Discount 2 Years 0% £0.00 No Hanley Economic Exclusive
75% 2.75% Discount 2 Years 0% £0.00 No Hanley Economic Exclusive
75% 4.69% Fixed 2 Years 1.5% £130.00 No Kent Reliance Multi Let & Ltd Co. Semi Exclusive
75% 5.39% Variable 0 Years 2.5% £0.00 No Saffron Light Refurbishment
75% 2.25% Fixed 2017-04-30 2.5% £150.00 Free valuation Mortgage Trust Exclusive
75% 3.5% Fixed 2017-04-30 0% £150.00 Free valuation Mortgage Trust Exclusive
75% 4.39% Fixed 2 Years 1.5% £130.00 No Kent Reliance Semi Exclusive
IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice.  
Please check our website regularly to see the most up-to-date products available.   
 
Search the whole BTL mortgage market free
 

Email:info@propertyhawkbtlmortgages.co.uk
Tel: 029 2069 5446
Your home may be repossessed if you do not keep up repayments on your mortgages.  
The Financial Services Authority does not regulate some forms of mortgage.

London new build bubble set to pop

London's new build hutch / apartment block market is set to pop ... again.

With a glut in supply coming on stream, this investment bubble inflated by 'unsophisticated foreigners' ( an agent's words, not mine ) is evaluated in this Moneyweek article predicting the next investment train crash.

Astronomical BTL returns all about timing

A new report claims landlords who bought their rental properties on a 75% LTV mortgage back in 1996 have now made average returns of almost 1,400 per cent over the course of the past 18 years.
The report's authors, Wriglesworth Consultancy, claim these residential landlords outperformed all other investment classes over the period.

By their calculation, for every £1,000 invested in the deposit for a 75% LTV mortgaged buy-to-let property in 1996 is now worth £14,897.

This compares very favourably with other '£1000' investments over the same period - commercial property - £4,494, UK Government bonds - £3,329, UK shares- £3,119 and cash - £1,959.

Though the report has garnered much hype in both the left and right wing press, it would be interesting to see the relative returns over a different time period, they've clearly factored in the 'golden years', that I doubt we will ever see again.

Property, as with any investment has an optimum time to buy and a optimum time to sell - sadly, the majority of us rarely get it just right.

The impact of the election on UK property



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Stafford landlord fined £1300

Stafford landlord, David Corry has been ordered to pay £1,300 for failing to provide information and make the required improvements to his rental property in the Highfields area of the town.

Stafford magistrates court heard how Mr Corry had failed to react to Stafford Borough Councils notices to improve the security of the front door, install smoke alarms and a handrail for the stair at the rental property.

Cebr predict London price adjustment

The Centre for Economics and Business Research (Cebr) have shared their thoughts on UK house prices. The CEBR predict a rise of 1.5% this year despite predicted falls of 3.6% in London.

London's adjustment dip is not expected to go on beyond 2015, with the Cebr seeing a bounce in the capitals values next year of 2.7%.

The Cebr predict an average UK rise of 2.3% in 2016.

The report's author, Nina Skero, commented: 

“Outside of London, the outlook for house prices this year has improved after a few months when the market appeared to be coming off the boil. December’s stamp duty changes, as well as rising household incomes, are lifting prices in many parts of the UK.

“In London, however, we expect prices to decline by 3.6%, driven by a significant weakening at the prime end of the market. A potential mansion tax, reduced overseas interest and hefty new stamp duty rates have hit demand for high value property.”



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Thursday, April 09, 2015

5 year prime property forecast

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71% of landlords only own one property



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Statement of Practice for BTL lending

As an attempt to avoid regulation of the BTL Mortgages, the Council of Mortgage Lenders alongside the Intermediary Mortgage Lenders Association and the Association of Mortgage Intermediaries published a new Statement of Practice for buy-to-let mortgages this week.

The CML claim 31 BTL lenders who represent approximately 90% of the BTL mortgage market have  adopted the statement of practice and the remaining lenders are expected to do so over the course of 2015.

The Statement of Practice for BTL mortgage lending


• The responsibilities of lenders, with a commitment to lend responsibly and treat customers fairly – echoing the broad principles of fair treatment that underpin the statutory regime of mortgage regulation protecting consumers.

• An undertaking to provide information that is fair, clear and not misleading, and in a form broadly consistent with the existing “key facts illustration” and the proposed European standardised information sheet. There should also be clear statements on fees and charges, monthly repayments and an overall cost calculation.

• The need to make a robust assessment of mortgage affordability, allowing for conditions in the rental market, the impact of future rate rises, rental voids and arrears, and other costs. There should also be a commitment to take extra care if the borrower has an impaired credit history and to consider whether it is appropriate to lend in those circumstances.

• The responsibilities of buy-to-let landlords, underlining their obligations to be competent and capable, and to accept that their borrowing is a commercial decision.

• Specific responsibilities of landlords to comply with legal requirements for letting property, treating their tenants fairly, maintaining and insuring the property adequately, and accepting the commitments associated with taking out a mortgage.


CML director general Paul Smee commented:

"Lenders know how important it is to have a transparent mortgage market, in which borrowers can have confidence, and where lending policy is both responsible and clearly understood. The new buy-to-let statement of practice reflects what responsible lenders already do and offers a clear explanation of how buy-to-let lenders operate. We hope it will make a valuable contribution to understanding the buy-to-let lending environment."

KF London Hotspots 2015

Knight Frank have published London Hotspots 2015 report sharing their opinion on residential property developments in the capital.

The estate agency claims the report considers new and proposed transport infrastructure, potential gentrification, current and potential pricing of areas they believe to offer opportunities to residential property developers / investors.


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A bears London property outlook

If I could see the future...

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Halifax March 2015 HPI published


The Halifax House price Index for March 2015 has just been published.

The key points -

  • First quarter (Jan, Feb, March ) average prices were up 2.6% from fourth quarter 2014. 
  • First quarter 2015 prices were 8.1% higher than first quarter 2014. 
  • House prices increased by 0.4% in March, offsetting February’s 0.4% fall. 
  • Sale volumes saw a modest pick-up following the steady decline during 2014. 

Halifax's housing economist, Martin Ellis, commented: 

"House prices in the three months to March were 2.6% higher than in the previous three months. This measure of the underlying rate of house price growth increased for the third consecutive month in March. Annual price growth, however, fell slightly again, from 8.3% in February to 8.1%, and is comfortably below last July’s peak of 10.2%.

“The recent return to real earnings growth for the first time in several years, very low mortgage rates and last December’s stamp duty changes are supporting housing demand. The rising level of house prices in relation to earnings should, however, curb house price growth and activity. The annual rate of house price growth, which has continued to ease in the first quarter of 2015, is forecast to end the year at 3- 5%.”

Read in full  - Halifax March 2015 House Price Index


Wednesday, April 08, 2015

Islington launches 'no fees' letting agency

Islington Council has just launched a not for profit letting agency.  The USP of the agency is that it will not charge tenants any fees and guarantees rental income to landlords.

The agency is to be called Islington Lettings and landlords will be guaranteed 6 months rent upfront although the rent must not exceed the local housing allowance.

The properties will focus on family tenants currently in temporary accommodation so the agency will not act a competitor in the general lettings market.

The agency does fit with the wider Labour party policy of banning all letting agency fees to tenants should they get into power in the coming General Election.

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Tuesday, April 07, 2015

Lender addresses 'ageism' in lending

The latest pension reforms taking effect from Monday 6th April allow people to extract a lump sum from their pension pot.  Reports in the media are that this will encourage a whole load of newly retired pensioners to invest their 'lump sum' into purchasing a buy-to-let as an income producing asset and an alternative to an annuity. 

Claims of a rush into buy-to-let  'overblown'
I personally think that claims of rush of newly retired pensioners buy-to-let are much overblown.  A small number no doubt will consider it.  The reality is that if you are retired, do you really want the hassle of a whole load of extra maintenance responsibilities and tenants to look after.  Probably not.  However, for the brave there is good news in the shape of a new buy-to-let mortgage from The Mortgage Works that will allow lenders up to the age of 70 a 35 year mortgage meaning that in theory you could be over a 100 years old before the loan is repaid.  Previously most mortgage companies would not lend where repayment of the capital sum extended beyond a landlords pensionable age say 65. 

The Mortgage Works addresses 'ageism' in lending
This more flexible approach from The Mortgage Works who are part of the Nationwide Building Society is to be welcomed for older landlords who often have the time and life skills to make very good and attentive landlords.  Whether they have the enthusiasm and drive to take on the extra responsibility when most people are winding down is yet to be seen.

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Friday, April 03, 2015

Top cities for buy-to-let - Manchester

I've just returned from a short shopping break in Manchester. We stopped over in the Midland Hotel and eat in The French; the restaurant now run by Simon Rogan of L'enclume fame . I'm not sure that the £180 per head cost could be justified on purely business grounds, but you've got to invest your buy-to-let profits somewhere...otherwise what's the point of all that hard work.

Manchester 'Buzzing'
Whilst in Manchester it struck me yet again that this city can surely be the only one in the UK that has the scale and 'attitude' to rival London in anyway. To me it really has a buzz and with the arrival of the BBC and media city it has a feel of the edgier and trendy part of East London.  Essentially it is also a hub for financial & business services outside London with all those well paid jobs.  From a property investors point of view there is a fantastic range of new and old properties and areas to invest in and a large population of student and young professional workers looking for rental property.  Even better on the property returns front, Manchester scores very highly on the rental yield.  The latest top rental yields according to HSBC research shows that Manchester comes second with an almost 8% gross yield.

1. Southampton 8.73 per cent
2. Manchester 7.98 per cent
3. Nottingham 7.67 per cent
4. Blackpool 7.63 per cent
5. Kingston upon Hull 7.47 per cent
6. Coventry 7.09 per cent
7. Oxford 7.02 per cent
8. Portsmouth 6.5 per cent
9. Liverpool 6.5 per cent
10. Cambridge 6.48 per cent

So any investor considering a place to buy good do much worse than cast a slide rule over Manchester.  As always I would caveat this with the fact that and investor needs to do their research and lots of choice means lots of supply so any capital growth in prices will be restrained by ultimately the continued growth in demand in the area.  For those looking at capital growth in Manchester you are probably better off buying a family home in an upmarket suburb like Didsbury, with limited supply will capitalize on those affluent 20/30 somethings looking to 'settle down' and nest.

At the end of the day 'you pays your money and takes your choice.'

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