Singletons feel the squeeze on flats

SINGLETONS are struggling to find the perfect flat for one, as couples cram into smaller properties and split costs, fuelling the demand for one-bed properties.

With the number of one-person households on the increase, one letting agent claims there’s a real shortage of properties suitable for solo renters.

Latest figures from the Office of National Statistics (ONS) show the number of people living alone in the UK has now risen to 29 per cent of all households. The cost of living a single life in 2011 also rose to more than £5,000 a year.*

William Jordan, managing director of residential lettings agency Jordan’s says more people than ever are enquiring about properties for one. He said:

“People looking to rent on their own have a real fight on their hands. They are often competing for the same one bedroom properties that couples with double incomes are. Couples are sharing a room but pooling the costs means they can afford to pay more, pushing the rental cost up and pushing those looking to rent on their own out of the market.

He adds:

“Some properties are clearly designed for one, they are tiny, but couples who can afford to be paying greater rent are squeezing into them – they can get a really good deal this way.

“People looking to rent on their own are often forced in to flat share arrangements – there just aren’t enough suitable properties available. We’re crying out for landlords with one bedroom properties as we’re desperate to have more on our books to help cater for the demand.”

New BTL from BM Solutions

A couple of new buy-to-let products from BM Solutions can be secured through Property Hawk Mortgages. Both products come with a flat completion fee of just £995. Rates are 5.04% 2 year fixed rate dropping to 4.89% if taken with BM Conveyancing. The maximum LTV on them is 75%.

Contact us at

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

Search the whole BTL mortgage market free
 

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.

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.

Average rental yields remain above 6%

The buy-to-let sector has experienced rising rents over the last couple of years and as property prices have generally stagnated this has resulted in good rental yields in many parts of the UK.

The Property Hawk Mortgages Profile reports an average rental yield of 6.29% for Q1 2012, with certain property types in particular areas generating higher.

For example, terraced houses are generating a yield of 6.73% on average, and some terraced houses in Liverpool are generating average yields of 8.70%.

Search the whole market for a BTL mortgage - no broker fees.

Buy-to-let Mortgage Changes - Final Vote

I have already mooted the prospect of the death of the buy-to-let mortgage.
The Eurocrats are desperate to spoil our party were due to be voting on the proposal before the European Parliament's Economic and Monetary Affairs Committee on the 25th April.
It seems that the Eurocrats can't agree the raft of proposed amendments.

The problem with the proposed legislative changes is that it will bring to an end to the buy-to-let mortgage as we know it where borrowing is assessed against the affordability criteria on each separate buy-to-let investment by taking account of rent and repayment costs.  Instead, as is the case in the rest of Europe, affordability will have to be measured by taking into account a landlords overall income.

The key thing is whether the Coalition will have the courage to press the opt out button to this bit of legislation which is due for approval in 2013.  Come on David step up to the plate and protect the landlord mortgage at a time when the country needs more rental property and more landlords. 

Mortgage Search - NO Broker Fees

Surge in demand from London landlords

Typical London landlords

The capital city has always attracted a large number of landlords and the greatest proportion of applications received by Property Hawk Mortgages was for properties in London. This comes as no surprise as it has the largest population of any city in the UK.

However, in the last quarter the percentage of applications received for properties in London increased significantly to 23%, compared with around 14% in the previous two quarters.

This surge of interest suggests a growing confidence among buy-to-let investors in London and underlines the strong tenant demand and rental yields in parts of the capital.


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Ping pong rentals

London letting agents are reporting far less interest in Olympic rentals than expected.

Matthew Lawrence of Spencer Thomas Estate Agents Ltd said that demand for Olympic lets was “fairly non-existent".

Hamptons is telling owners to look to limit rents to three times typical weekly rents to secure a tenant, commenting “Demand is reasonably slow,” “We’re entering a stage now where I thought there would be a lot more interest.”

I'm sure when it finally arrives there will be a whiff of excitement,  but, to be honest are we really that bothered? I mean,  I was never that bothered about ping pong before so why should I be now? Just because theres a sign up with five coloured rings on.

If Usain Bolt gets injured we might as well call the whole thing off.


Discounted landlord insurance

BTL mortgages - best current options

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.99% Fixed	2 Years	1%	£130.00	No	6.6% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
75%	5.29% Fixed	2 Years	3%	£130.00	No	6.9% APR
75%	4.89% Fixed	Aug 31 2014	£995	£0.00	No	5.1% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
60%	3.25% Discount	2 Years	1.75%	£250.00	Free valuation on properties valued up to £1m	5.3% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

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.

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.

---

The March of rent increases

Average rents are up 2.7 percent from this time last year, March to March according to the latest LSL Property Services data.

The biggest rise in rents was seen in the capital with an annual increase of  4.9 per cent over the 12 month period, followed by the East of England, where rents increased by 3.4 per cent.

The only two falls were seen in the East Midlands ( where most of my rental property is, well that just great ), and  the North West.

Discounted landlord insurance

Norfolk flats on 10% yield

Check out the latest residential investment offering from Allsop.  Twenty new 'one bedders' in the pretty little Norfolk town of Thetford available on a projected gross rental yield of over 9%.

Summer Court, Croxton Road, Thetford, Norfolk IP24 1EU.

An unbroken residential block close to Thetford town centre Comprising 20 x one bedroom flats Fully let subject to 20 Assured Shorthold Tenancies Total current rent reserved: £91,320 per annum 12 parking spaces Within 250 metres of Thetford town centre.

Offers in excess of £1,000,000 are invited subject to the existing tenancies and subject to contract

For further information, please contact:

Robbie Underhill 
Email: robbie.underhill@allsop.co.uk 
Tel: 0207 344 2659
Tim Gladwin 
Email: tim.gladwin@allsop.co.uk 
Tel: 0207 344 2632
 
Mortgage Search - finance my investment

Tenants are struggling to pay rent

"Thanks for paying the rent this month." LIKE

The number of tenants struggling to pay rent has apparently increased.

Landlords need to stay alert to tenants who struggle to look you in the eye over the coming months and check rent payments on a regular basis, hourly should be frequent enough....

According to the latest ARLA survey 41 per cent of letting agents polled said that they had seen an increase in tenants struggling to make their rental payments to landlords in the six months to March 2012, and increase of 39 per cent at the end of 2011 and 37 per cent last autumn.

It's not surprising really as personal finances are stretched and unemployment now at 8.3% remains an increasing threat.

Thank goodness for internet banking, with some landlords checking their bank details more frequently than Facebook.

Discounted landlord insurance

BTL mortgage pricing remains stable

In the first quarter of 2012 our data shows that average BTL mortgage rates have remained relatively stable.

Andy Young, chief executive of Property Hawk Mortgages comments:

“Despite the enduring difficulties in the Eurozone, product pricing in the buy-to-let mortgage market has remained relatively stable during the first quarter of this year. At Property Hawk Mortgages, for mortgage offers processed during Q1 2012, the average fixed rate was 4.82% compared with 4.93% in Q4 2011. For variable rates, the average was 4.07% in Q1 compared with 4.04% in the previous quarter.

Search the whole market for a BTL mortgage - no broker fees.

Landlord Insurance - 'trap'

I met a fellow landlord in my Virgin gym this week. He highlighted an issue he had with his landlord insurance. Interestingly it was the complete opposite to my issue with my landlord insurance company.

He had bought a buy-to-let property in Hull several years ago with a Mortgage Express mortgage. Recently the property had been broken into and suffered £5,000 worth of damage. The property was insured but he had not increased the sum insured since the purchase of the property. The original re-build cost was in the order of £80,000. The insurance company has come back and is now arguing that the sum insured should be now £120,000 and that they will only pay out pro-rata on the £5,000. This seems to me to be very 'harsh'.

Has anybody come across a similar situation.? My fellow gym goer maintains that he has been caught out by ignorance rather than actively trying to under insure his buy-to-let property.

Looks to me that us landlords are at risk of get caught in a 'pincer movement' by these landlord insurance companies.

Landlord insurance - trusted providers

Your tenant dies - what to do?

It's a landlords worst nightmare. What would you do if your tenant snuffed it. I can't even imagine. Would you be responsible for removing the body etc? I hope and guess the NHS would step in at some stage. But then you are left with clearing up the mess. Literal and metaphorical.

How many of us would have details of the next of kin?

Aside from the practicalities of dealing with the dead tenant where would a landlord stand on the tenancy? Well legally the tenants death doesn't actually end the tenancy. The responsibility for the tenancy in this situation would pass to the executors. The simplest thing is to then agree a surrender with them.

A complication would be if the dead tenant had a relative living with them. Under the AST they do not have rights of succession to the tenancy. In this situation I would serve a section 21 notice on the remaining tenant and the executors in case it was deemed that the landlord had commenced a separate tenancy with them.

If the tenant has no relatives or executors then it might be advisable to contact the Crown Office which would be involved if there are no other personal representatives (whether executors or administrators) of the deceased.

Landlord insurance - professional rates

Saving the BTL mortgage - update

Since I created the e-petition to save the UK's Buy-To-Let Mortgage over 3000 landlords have signed it which is a great response from the landlord community.

Let's keep the pressure up and stop the Eurocrats spoiling our buy-to-let party!

Mortgage Search - whole of market

Landlords feeds desperate tenant

..for a tin of beans.

You read it right, a Sunderland landlord had to feed his tenant after a complication with her benefit payments.

There goes the majority held view that all landlords are heartless money grabbers.

Landlord Charlie Pink had to take food to his tenant Michelle Remmer, as she could not afford to buy her own.

Read the story here in the Sunderland Echo

Maybe he'll put it on her next months rent - £240 and a tin of beans.

Student rents top ten

A list of the rental yields of the top ten student towns and a list of dos and dont's when renting to the dirty unwashed lay abouts.

Pretty vague article from the Independent to fill a quiet news week.

Read it here if you know absolutely nothing about renting to student, otherwise look away now.

Current BTL mortgages best rates

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.99% Fixed	2 Years	1%	£130.00	No	6.6% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
75%	4.25% Discount	2 Years	2.5%	£250.00	No	5.5% APR
75%	4.78% Fixed	2 Years	2.5%	£130.00	No	6.8% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR
60%	3.25% Discount	2 Years	1.75%	£250.00	Free valuation on properties valued up to £1m	5.3% APR

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

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.

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.

---

Secure BTL investment pun

Secure BTL investment pun should get Mail journalist arrested.

But I'm guilty of far worse with an additional charge of poor grammar and unforgiveable spelling.....there you go I've just done another one, I really should be locked up.

The Mail journo goes on to describe the fact that a Welsh landlord has re-furbed an old police station in Newport, North Wales into a set of rental flats, including one two bed flat made up of the six former cells. - Read article here if you're interested.


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Stamp duty on company residentials

Some of the countries biggest residential landlords are enraged by the changes in stamp duty following George Osbornes introduction of a 15 percent rate on companies purchasing residential property over 2 million pounds.

Both Lord Cadogens, Cadogen Estates and the Duke of Westminsters Grovesnor Estates have complained that the changes will make the UK less attractive to foreign investors.

The treasury defends its decision as an attempt to prevent the wealthy from getting their accountants to envelope their property into supposed 'companies' to avoid paying tax.

Accountants are busy seeking out a different shaped envelope to stuff them into following the budget changes.

Teddy's not happy, not one little bit.


Read full response in the FT


Free property management software, Free tenancy agreements

Rents and wages 'shock'

The average rent in some parts of London has reached 56% of pay according to the 'shock horror' headline in the Metro. The figures sourced from the National Statistics and Valuation Office Agency were compiled by the office of the Shadow Communities Minister under Jack Dromey.

They seem to indicate that London Borough's account for 21 out of 25 of the highest ratios of rent to income. The lowest ratios are in Lancaster where rent makes up 15 per cent of earnings. In Derby it is 20 per cent, Liverpool 24 per cent, Gateshead 25 per cent and Birmingham 26 per cent. The message for landlords in these areas are that if your tenant has a job there should be no problem paying the rent and if supply conditions get tight there could be considerable upside in rental levels.

The only thing is that Jack Dromey looks to have a problem with figures as evidenced by his dealings with his own expenses and those of the Labour Party - so can they be completely trusted?

Landlord Insurance - professional rates

Insulating your buy-to-let

I wrote recently about the tax benefits of insulating your buy-to-let.

Even better news!

Today when I made enquiries about insulation at my local authority in Nottinghamshire it transpires that they offer subsidised loft and cavity wall insulation. Why? Well it's not as a result of any generosity by the Government. Instead it's the result of legislation the government introduced to force energy providers to cut their carbon emissions. The result is that subsidised insulation is available to landlords in many areas. You need to act pretty sharpish though. The four year CERT scheme is due to end in December.

I'm made up. Not only will I be able to get my place fully insulated for less than a hundred quid. I'll also get my tenant off my back who has been pestering me that he is 'cold'. RESULT! I'm looking forward to my celebratory drink tonight....

Landlord insurance - internet rates

UK burglary hot spots

What's a residential inventory for?

The residential inventory is a record of the condition of a property before allowing the marauding tenant classes into occupation. It often has several uses:

· It is schedule of condition of the property being let

· It forms a record of the items and chattels attached to your buy-to-let being let

· It forms part of the legally binding contract that is set out in the tenancy agreement and is part of the agreement between the two parties

Create your own free residential inventory here.

Landlord Insurance - internet rates

BTL mortgage picks

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.99% Fixed	2 Years	1%	£130.00	No	6.6% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
75%	4.25% Discount	2 Years	2.5%	£250.00	No	5.5% APR
75%	4.78% Fixed	2 Years	2.5%	£130.00	No	6.8% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR
60%	3.25% Discount	2 Years	1.75%	£250.00	Free valuation on properties valued up to £1m	5.3% APR

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

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.

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.

---

Landlord insurance 'rip off'

I've just had to renew my landlord insurance and household insurance.

Isn't it amazing that the costs of insuring your property go up every year even in the middle of a massive global economic depression.

Having been confronted by a quote from my landlord insurance company which has risen by over 10% I phoned them up to ask them to reduce the rebuild costs on my portfolio. They looked absurdly high. The best way of checking the figures is to go to the BCIS website and get the rebuild costs from there.

It turns out that the rebuild costs are inflated by 5% each year on the recommendation of the BCIS. Sod that! Remember you can insure the rebuild for what you want. Obviously, I would never recommend that a landlord under insures their property but looking at some of the figures that have been included I'm sure I could rebuild for a lot less.

Landlord insurance - compare the market

TDS success rates

With the Tenancy Deposit Scheme legislation being tightened from the 6th April. There is no longer any way of avoiding protecting your tenants deposit.

This should focus a landlords attention on what happens if there is a dispute with the tenant at the end of the tenancy.

If this happens the case will go to arbitration. The latest figures according to Deposit Claim indicate that landlords lose money in 92% of deposit protection claims. Even more worrying is that landlords lose all of their money in 49% of their claims. Not a great record!

One of the essential things for a landlord is to make sure they prepare an effective residential inventory.

If you need some advice over a disputed tenancy deposit have a look at Tom Derrett's website Deposit Claim. Tom has given Property Hawk users some really useful advice on winning deposit disputes over the years. Look out for the magazine article next week about using photographic and video evidence in compiling your inventory.

Landlord insurance - all risks

Don't panic landlords

Don't panic landlords!

Landlords are facing tougher times apparently.

The reason for this is that rents have dipped a bit and btl mortgage rates have gone up a bit.

At this point I would highlight the word 'bit' and maybe marry it with the word 'little' to form the phrase 'little bit'.

The tough times are drawn from a statistic from LSL Property Services of a 1.6 percent drop in average rents, from a peak of £719 to £707 and some of the major BTL lenders increasing their BTL mortgage rates thanks to the Eurozone muck ups. Santander have pushed its fixed rate from 3.99 to 4.35 percent, bringing a £55 increase on the monthly payment on a £150,000 mortgage.


No need to panic yet?

Probably not, unless this divergent trend continues, then maybe it will. ..... a little bit.

But for now lets put it down to the press scratching around for news.

Read full article in the Daily Mail

BTL mortgages - current rates

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.99% Fixed	2 Years	1%	£130.00	No	6.6% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	5.99% Fixed	May 31 2014	£1100	£199.00	No	6.5% APR
75%	4.98% Fixed	2 Years	£1999	£0.00	Free legal fees for remortgage	5.7% APR
75%	4.49% Tracker	Jun 2 2014	£1999	£0.00	No	5.6% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
70%	3.85% Discount	3 Years	£995	£0.00	No	5.3% APR
65%	5.84% Fixed	May 31 2014	0%	£150.00	Free valuation for properties valued up to £500,000 (excludes Scotland)	5.3% APR
65%	4.74% Variable	0 Years	£999	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.7% APR
60%	4.05% Fixed	Jun 1 2014	2.5%	£0.00	£200 cashback	5% APR
60%	3.25% Discount	2 Years	1.75%	£250.00	Free valuation on properties valued up to £1m	5.3% APR

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

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.

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.

---

TDS changes on FRIDAY!

As changes to tenancy deposit protection laws come into force this week, Shelter is calling on landlords to ensure they are protecting their tenants’ deposits, and protecting themselves from penalties.

The housing charity campaigned for the changes to the tenancy deposit protection law, which tighten up loopholes making the law more effective for both tenants and landlords.

From 6 April landlords will have up to 30 days from the start of a tenancy to place their tenant’s deposit in one of the three official protection schemes, up from the previous 14 days. The penalty for failing to do so will now be up to a judge to decide, rather than a fixed penalty and will range from one to three times the value of the deposit, which will be awarded to the tenant.

Recent figures from the Association of Residential Letting Agents (ARLA) show that 47% of their members reported a rise in unplanned lettings¹, where homeowners are becoming landlords out of necessity rather than choice as they need to move but are unable to sell.

With the increase in homeowners becoming landlords, many perhaps for the first time it is important that they are aware of their responsibilities towards their tenants to avoid unwittingly breaking the law, particularly with regards to tenant deposits.

With thousands of people every year coming to Shelter for help with deposit disputes, the housing charity wants to ensure that all landlords, whether professional or homeowners letting their property, are abiding by the law and avoiding unnecessary disputes and potential financial penalties.

Campbell Robb, Shelter’s Chief Executive, said: “This legislation is enormously important for the three million households privately renting and for their landlords.

“With these vital improvements the legislation can achieve what it was created for – setting out clear responsibilities and timescales for landlords to protect tenants’ deposits and providing a quick and efficient way of resolving any disputes.

“We know that the majority of landlords want to do the right thing, the challenge is to ensure that they are not caught out by these changes and that they fully understand their legal responsibilities. We want landlords to know that this legislation benefits them as well as providing private renters with the reassurance that their hard-earned deposits are protected.”

Landlord Insurance - professional rates

Allsop auction - amazing yields

Amazing residential yields were generated in the latest residential auction held by Allsop last week. Of the 32 Assured Shorthold Tenanted properties sold the average yield worked out at a massive 11%.

Inside the M25 that was 6.82% whilst outside the M25 sales hit a stonking 13.3% yield.

Who says there is not value out there in the residential investment market. Mind you one problem. You need to be able to access finance.

No wonga no property. It's that simple.

Watch our latest auction update for market commentary, property highlights and yield analysis vimeo.com/39636140

— Allsop (@AllsopLLP) April 3, 2012

Mortgage Search - Bridging Finance available

House price drop

Any property bulls who expect a strong bounce back in residential property prices will be sadly disappointed by the latest figures from the Nationwide.

They reveal that prices have actually dropped 1% over the last year leaving the average home costing £163,327.

As we know there is no such thing as an average home. If you are lucky enough to own prime London property that 1% drop is probably a 25% rise depending on what part of London and the type of property you have invested in. If you have invested in property in say the North East in somewhere like Hartlepool you are probably nursing a double digit fall.

Property is a great barometer of what is happening in the real economy. One truism is that even in the worst of times somebody is doing well. If the headlines are true, doctors are no longer on a one way ticket to a 'moral' fortune because of the NHS cut backs. Other sectors are even now picking up their mantle and boosting house prices in the most desirable residential areas. With the price of some metals hitting an all time high perhaps it's scrap dealers that once again are coining it in. All this is an argument for investing in the best area you can afford, even if gross rental yields are less.

Landlord insurance - national coverage

Stamp Duty Holiday Finishes

On the 24th March 2012, the two year long stamp duty holiday drew to a close. During this period of time, properties valued between £125,000 and £250,000 were exempt from the 1% tax. This ‘discount’ was ordered by the government in order to boost the property market.

First time buyers eligible for this had the chance to save up to £2500 on tax. As the government had hoped there was a rise in property purchases, particularly during the last few months of the holiday.

The Council of Mortgage Lenders found that the number of buyers in January 2012, compared to January 2011, increased by almost 25%. They also revealed that 13,200 loans worth £1.6billion were approved.

With such encouraging results, the National Association of Estate Agents and The Council of Mortgage Lenders were hoping the Budget announcement for 2012 would include an extension on the stamp duty holiday. However George Osborne, Chancellor of the Exchequer did not. It is believed this is partly because of the government’s newest scheme to improve the housing market.

The NewBuy Scheme has been created in order to, not only increase the number of first time buyers owning the first home, but to also boost the number of jobs available for house builders. This scheme entitles first time buyers to a 95% mortgage on a newly built property, thus giving them only a 5% deposit to pay.

In recent years it has mainly been landlords who have been profiting in the property market, being easily able to cover the costs of a mortgage, property advertising and landlords insurance with the high rental yields available, but the government are now hoping that the market for first time buyers will improve.