Will buy-to-let make me rich?

Here is the million dollar question...literally.  Will investing in buy-to-let make me rich?

Buy-to-let investment fundamentals
Well firstly, lets look at the fundamentals.  You are investing in a growing industry.  The latest research from Kent Reliance pinpoints the fact that the number of households in the private rented sector is set to continue to grow rising from 4.8 million now to 5.4 million in 2020.

Recent research from Wrigglesworth indicated that buy-to-let was the best performing asset class over the last 18 years.

Fundamentally, as Mark Twain once famously said; "Buy land, they're not making it any more".  This could explain why house prices continue to outpace inflation and exhibit real term increases of 2.9% according to the Nationwide Building Society.

Examples of buy-to-let investors making it big
One of the most well known examples of the buy-to-let big time is Fergus and Judith Wilson who accumulated a portfolio of 1000 properties.  To find out their tips on making on a fortune on buy-to-let worth over £250 million in just under 25 years.

The secrets
The secret to making money in buy-to-let is playing a long term game and following the 3 pillars of buy-to-let

It can make you rich, it depends on luck, hard work and how much you really want it like most businesses.  The rest is as they say is down to you.

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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%	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
80%	5.39% Variable	0 Years	2%	£0.00	No	Saffron Light Refurbishment
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.

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Scottish rents rise by 1.6% over the year

Your Move's Scottish Rental Data for April 2015 showing rents have risen by 1.6% over the previous 12 months, with the average rent rising to £539.
Glasgow and Clyde have seen the biggest growth, up 5.0% over the year.

Severe arrears of more than two months’ rent up 4% year-on-year across the UK as a whole

Landlords’ total annual returns double in past year, rising to 15.2% in April 2015 from 7.2% a year ago Rent rises in Scotland have started to pick up pace, according to the latest Scotland Buy-to-Let Index from Your Move,

Brian Moran, area lettings director at Your Move, commented:

“Scottish rents have peaked at a new apex, as lethargic supply of rental homes fails to match up to towering demand for homes to let. After rental prices plateaued over the winter months, we’re seeing annual rent rises start to ascend again.   

Affordability in the private rented sector now rests on new housing becoming available to let, and more choice for tenants, to keep rents competitive and rent rises in check. Solid rent rises offer clear encouragement for those contemplating buy-to-let investment, but fears of prohibitive rent controls and additional tenancy legislation in Scotland may be off-putting, which could choke off new supply of rented homes, and drive up prices for tenants.” 

Read in full - Your Move Scottish Rental Data for April 2015

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Landlords the billion pound baby

Landlords are looking to be the billion pound baby in 2015 according to figures released by the Council of Mortgage (CML).

Data released by the Council found that the wealth controlled by landlords reached £990 billion in 2014 and has risen 70% since the financial crisis in 2007.

Landlord loans continue to be the fasted growing area of the market as more landlords look to expand their portfolios and newbie landlords enter the lettings market. Many longstanding landlords have paid off their mortgages resulting in the overall indebtedness of the buy-to-let sector being low at 19% of the value of the rented property meaning that £643 billion of the £990 billion is debt free giving many landlords the opportunity to lever in additional funds to expand their buy-to-let portfolio.

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What's in the Queen's speech for landlords?

Out of the 20 Bills announced in the Queen's speech, these are the ones the NLA identified as worth  landlords watching out for.

New Housing Bill

• Extension of Right to Buy to 1.3 million housing association tenants. 
• Local authorities pushed to off-load most high-value properties. 
• Starter Homes programme 
• Introduction of 'Right to Build', to help 'self builders'. 

Immigration Bill

• Proposal for a mandatory licensing regime.

Cities and Local Government Devolution Bill

• Devolving power to the regions and elected mayors.

Full Employment and Welfare Benefits Bill

• Freezing main rates of working-age benefits, tax credits and child benefit. 
• Pensioners and extra costs relating to disability will be protected. 
• Benefit cap reduced to £23,000 per year. 
• Scrapping of automatic entitlement to housing support for 18-21 year olds. 
• Roll out of Universal Credit. 

Scotland Bill

Implementing the proposals of the Smith Commission, including taking over welfare powers, including housing benefit.

The full text of the Queen's speech May 2015

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Scottish landlords lobby rent controls minister

Scottish landlords are campaigning against the implementation of rent controls.

The Scottish Association of Landlords (SAL) and Council of Letting Agents (CLA) met with the Scottish housing and welfare minister, Margaret Burgess, to try to convince  her to move away from any new policy controlling rent in the PRS north of the border. The two organisations presented a petition of over 3500 landlord's signatures .

The Scottish Government are expected to present new legislation in the Autumn that would give tenants the power to take rent increases to arbitration. Another expected part of the new legislation would end a landlord's current right to repossess a rental property at the end of a tenancy period using  'no fault' repossession. 

John Blackwood, Chief Executive of SAL supported the consensus to improve standards in Scotland's  private rented sector, but shared concerns as to whether the  Scottish Governments current proposal would best achieve this

"As an industry, we fully support measures which will help find this balance but do not believe measures like rent controls or ending the 'no fault' clause will achieve this. We would urge the Scottish Government to reconsider additional protections for tenants without harming investment in the private rented sector."

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Regional 5 year price forecast

Another day and another stab at guessing future property prices.

Homes in London will be worth 30pc more in 5yrs time according to @JLLUKResi. #unaffordble http://t.co/5OMH1ZDM3b pic.twitter.com/CdEerfklXD

— Telegraph Property (@TeleProperty) May 26, 2015

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Mayfair squatters granted extension

Mayfair squatters granted extension in court battle against landlord http://t.co/TjtXGfGSva

— Guardian news (@guardiannews) May 26, 2015

London asking prices jump after election

London asking prices jump 17pc after the election http://t.co/4AtMMJssmf

— Telegraph Property (@TeleProperty) May 26, 2015

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Immigration checks to be rolled out

The Queens Speech today (Wednesday) will outline the Conservative's Government policy of making landlords responsible for checking the immigration status of their prospective tenants.

Originally, the former coalition had only proposed a number of pilot schemes but the new Government will make landlords the first line of defence against illegal immigration into the UK.

Commenting on the legislation the Prime Minister said:

“For the first time we’ve had landlords checking whether their tenants are here legally. The Liberal Democrats only wanted us to run a pilot on that one. But now we’ve got a majority, we will roll it out nationwide, and we’ll change the rules so landlords can evict illegal immigrants more quickly.

“We’ll also crack down on the unscrupulous landlords who cram houses full of illegal migrants, by introducing a new mandatory licensing regime. And, a bit like ending jobs when visas expire, we’ll consult on cancelling tenancies automatically at the same point”

The exact details of how the scheme will effect landlords will be worked out as the legislation works it's way through Parliament.  Clearly, it will add another layer of administration to landlords looking to let property.  However, how onerous this turns out to be will depend on the detailed legislation yet to be worked out.

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Buy a portfolio of 336 apartments

Are you looking at scaling up your residential investment portfolio and adding a portfolio of over 300 buy-to-lets in one go? Have a look at Project Vero with a portfolio of new properties located mainly in the midlands and north-west. The asking price for this little selection of apartments will probably be in the order of £30 million but at that price you would get a gross yield of over 10%. The critical thing will be able to raise the finance.

Of the 336 flats, 308 are currently either let or are vacant pending letting, and the breakdown of these flats is detailed below:
 • 279 x Assured Shorthold Tenancies
 • 6 x Company Lets
 • 23 x Vacant
 • 308 Total  

Appropriate tenancy details relating to each tenancy type are contained within the Master Schedule. Sample AST’s adopted within each development can also be found within the download section of the website.

The remaining 28 flats situated within the Marco Sky development in Nottingham are currently being completed/fitted out, with practical completion due at the end of May 2015. 

Further information relating to this development can also be found within the Supporting Information page of this website. These tenancy details will be updated prior to inviting offers.

Current Gross Rent and Estimated Gross Rental Value (ERV) The total current gross rent reserved is £2,467,363 per annum.

A breakdown of rents per flat and aggregate rents relating to the additional 
car parking spaces are contained within the Master Schedule. A summary breakdown by tenancy type is detailed below:

 Tenancy Type                                Rent £pa
AST                                               £2,235,840
Company Let                                 £46,200
Licences (Car Parking Spaces)      £185,323
Total                                               £2,467,363

The ERV of the entire portfolio, including flats and car parking spaces, is in the region of £3,642,300 per annum.

An individual breakdown of ERV’s is contained within the Master Schedule.

Commercial mortgages - buy-to-let finance

Digitised house purchase scheme

A new service of online conveyancing service aims to speed up the house buying process.  Veyo part funded by solicitors' representative body aims to give buyers more information and take the whole process online allowing buyers and sellers to track the process in real time.

The service will launch next week and comes about 4 years after the Land Registry abandoned plans to digitise transactions.

As always the success of the service will depend on the service being adopted by enough conveyancers to make it an industry standard.  Only time will tell!

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Most affordable rental spots in London

Where are the most affordable rental spots in London? Find your new neighbourhood here: http://t.co/9yHJGc3mvC

— Rightmove (@rightmove) May 20, 2015

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ONS House Price Data for March

The rate of annual house price growth has increased across the majority of the UK according to the Office of National Statistics house price index for March 2015. 

Scotland has done particularly well, recording its highest annual increase since July 2007.

• UK house prices up 9.6% in the year to March 2015, up from 7.4% in the year to Feb 2015.
• Annual growth rates - 9.4% England, 5.7% Wales, 14.6% Scotland, 7.5% Northern Ireland.
• Strongest English regions - East (11.4%), London (11.2%), South East (11.2%) annual house price growth.
• Excluding London and the South East, England's annual house price growth is now 8.1%. 
• Seasonally adjusted, average house prices increased by 1.1% between February and March 2015.
• First-time buyers paid 7.8% more than in March 2014. 
• Owner-occupiers (existing owners) paid 10.3% more than in March 2014.

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House price growth driven by SE says ONS

House price growth in England driven by the East (+11.4%), London (+11.2%) & the South East (+11.2%) http://t.co/6HKirmiE67 #inflation

— ONS (@ONS) May 19, 2015

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Universal Credit tips for social landlords

Seven ways social landlords can prepare for universal credit - http://t.co/i7G2AloB5X

— Landlord Action (@LandlordAction) May 19, 2015

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Hertfordshire landlord fined £500

A Hertfordshire landlord has been fined £500 after not getting the heating fixed at her rental property.

Despite receiving an enforcement notice, landlord Jane Cleverly, left her rental flat in Heathfield Road, Hitchin without any working heating.

Ms Cleverly claimed that her own ‘financial difficulties’ had prevented her from getting things fixed, if so, the £500 fine, £50 victim surcharge, and £794.57 costs are not going to help her situation.

Councillor Bernard Lovewell, commented on the case -

“We hope this prosecution sends a clear message to private landlords in North Hertfordshire – the council will use enforcement powers whenever necessary to ensure the welfare and safety of our residents.”


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BTL lending activity stays strong

The Council of Mortgage Lenders statistics for March 2015 show further growth in the Buy-to-let sector.

18,200 buy-to-let loans were taken out in March, up by 12% on February and 21% more than March 2014's lending.

The total value of BTL loans taken out during March 2015 came in at £2.7billion, of these, 8,600 were for house purchases, up 8% on February. 

Buy-to-let remortgages made up the majority of the remainder, with 9,400, up 15% from February, and 29% on March 2014. The total value of BTL remortgages over the month came to £1.4billion. 

The first quarter of 2015, has seen the buy-to-let lending sector grow it share of total gross mortgage lending to the highest proportion since records began in 2006, now standing at 18%, although this is more a reflection of shrinking home-owner activity.

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Voluntary accreditation scheme launched

Durham County Council has launched a voluntary accreditation scheme for landlords.  The cost is £150 and for that a landlord has access to:

• guidance on best practice
• access to a credit referencing system
• assistance in cases of anti-social behaviour amongst their tenants

In return a landlord will need to meet a code of practice giving their tenants the reassurance that they will offer good quality and well managed accommodation.

"The Private Landlord Accreditation Scheme is a win/win situation for the rental market in County Durham” claims a council spokesman.

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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%	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
80%	5.39% Variable	0 Years	2%	£0.00	No	Saffron Light Refurbishment
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.

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Interactive maps show UK's best BTL returns

This is Money have published three interactive maps produced by Lendinvest showing the differing investment performance of BTL properties across areas of the UK.

Using Zoopla's  property prices and rental data, Lendinvest have mapped average rental yields, capital growth and a combined 'overall investment performance'. 

The postcodes with the best rental returns are in Birmingham, Ipswich, Liverpool and Glasgow, however when capital gains are factored in London wins out.

The capital's stella property price growth out-performing the rest of the UK's BTL's for overall returns.

Capital growth remains king.

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New Gov. bound to fall short of building targets

If this tweet is anything to go by, so much for the Tory's promise of building hundreds of thousands of new homes.

Expect yet another Government to fall short of their building targets.

New Derbyshire Tory council to oppose 400-home site allocation: The incoming Conservative group at a council i... http://t.co/I5NrF8BIpb

— Planning Magazine (@PlanningMag) May 18, 2015

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Parts of London set to soar

Discover the area where property prices are set to soar: http://t.co/W8rsaR9a38 pic.twitter.com/I4n0jnpCCx

— ES Homes & Property (@HomesProperty) May 17, 2015

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Rightmove talk up post-election market

The talk is positive following the return of the Tory boys to government, this time with a majority.

Rightmove recorded a pre-election drop of 0.1% (-£242) on  property coming to market, but now expect the majority Tory government to bring a surge of new sellers.

Miles Shipside, Rightmove housing market analyst commented -

“Whilst activity was buoyant in early spring with demand for suitable housing outstripping the supply of property for sale in much of the country, it seems that pre-election jitters finally came home to roost in the final weeks of electioneering, with the average price of property coming to market dropping at this time of year for the first time in five years. This is an election-driven price stall which gives some buyers only short-term relief from the back-drop of a long-term housing shortage, and many estate agents are now reporting a resurgence in interest following the surprise election result. Election uncertainty and particularly the threats of financial penalties to landlords and those with properties valued at over £2 million put a brake on the market, and their removal gives a reason for a rebound in activity and prices.”
“The underlying supply/demand imbalance has meant the election uncertainty has not had a negative price outcome in seven out of ten regions in the country. However, having been faced with an all-time asking price high in April of £286,133 nationally, any drop is welcome to those at the upper end of the stretched affordability curve.”

“Buyers should note that there is often a surge of property supply after an election, as those who have held off coming to market decide to take the plunge. Many potential sellers may have held back expecting a period of hung-parliament uncertainty, but they could now decide to catch the late spring market. In a traditional tight-stock market an increase in supply of available property and greater competition among sellers to attract buyers may moderate their price expectations and make them more open to an offer. The previous election saw jumps in new seller numbers in all regions of the country, with London and Wales leading the way with over 20% more properties coming to market. There may be a window for buyers to act now in this late spring market before prices rise in the next few months.”
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Durham's landlord accreditation scheme

Durham Council are going for a softly, softly approach with their landlord licensing scheme.

They are promoting their new county-wide 'private landlord accreditation scheme'.

The scheme is voluntary, but any landlords signing up for the scheme must adhere to a set Code of Practice.

Read Durham County Council’s Private Landlord Accreditation Scheme

To be accepted onto the screen a landlord must be seen as 'fit and proper' and not be found to have -

• A conviction for illegal eviction or harassment of tenants in the last seven years 
• A conviction for violence towards any persons in the last seven years. 
• A conviction for mortgage, Housing Benefit or Council Tax fraud or breach of grant 
• conditions within the last three years. 
• Failed to comply with any statutory notice or House in multiple Occupation requirements resulting in prosecution or works being carried out in default in the last three years. 
• Breached Selective Licence or any laws relating to housing, public health or environmental health. 
• A conviction for non-compliance of a Planning Enforcement Notice relating to a residential property within the last three years. 
• Practiced unlawful discrimination on the grounds of sex, colour, race, ethnic or national origins or disability. 
• Other convictions which would indicate the unsuitability of the applicant under the scheme. 

The scheme costs to join. Starting at £150 for a landlord of up to ten properties, £250 for 11- 50 properties, £350 for 51-100 properties, £500 for 100+ properties.

The council claims the benefits to membership are -

• Information and guidance to promote good management practices
• Recognition of landlords offering good quality accommodation
• A certificate awarded for recognition to display on premises
• Advertising of empty properties on our Durham Key Options website; the website accessed by people looking and registering for social housing
• Access to a waiting list of potential tenants
• Pre-tenancy support for tenants
• A tenant referencing service
• Post tenancy support
• A tenancy agreement
• A template inventory
• Anti-social behaviour assistance

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Who is responsible for the gardening?

Spring has sprung and vegetation growth is proceeding at pace.  I have already had 2 gardening issues brought to my attention this week by my tenants.

The first from a tenant who wants me to cut back the front garden to allow their two small children to have an area to play in. The other is from a tenant who was flagging up an issue regarding a bush that is just about to engulf their satellite dish.  So is the gardening maintenance the tenant or the landlords responsibility?

Who is responsible for the gardening?

Well the starting point for any disputes on who is responsible for the gardening comes from the tenancy agreement.  In the case of Property Hawk's free tenancy agreement it is clear as stated in para 3.13 that The Tenant agrees with the Landlord to:

Keep the garden and/or drive of the Premises clean and tidy and to mow the lawns as
often as necessary and to keep the flower beds free from weeds and hedges trimmed,
and not to lop, top, cut down, remove, or otherwise injure any trees, shrubs, or plants
growing upon the Premises, or to alter the general character of the garden.

However, many tenants conveniently 'overlook' this aspect of their tenancy agreement but legally it's there in black and white and it's a good position for a landlord to 'negotiate' from.

The practicalities of tenants with a gardens

Whilst I'm aware that legally the responsibility of the garden maintenance falls on my tenants.  The practicalities are often somewhat different.  The tenants frequently claim that they don't have the time or the resources to keep the garden under control.  Of course my thoughts are:  "and I do!?" Clearly, if the garden required a sit on mower for the tenant to keep an acre of lawn cut then no unreasonably the tenant could claim they don't have the necessary equipment.  But how much does a set of garden shears cost?  If necessary I'd offer to buy them for the tenant.

The reality is that many tenants like the benefits of enjoying some outside space with their rental property but don't like the inconvenience associated with maintaining it.  They consider wrongly that it's the landlords responsibility just as in the case of decoration to keep they garden pristinely manicured.

A landlords options on maintaining the garden

Legally, as I've already stated above the tenancy agreement is clear that with a Property Hawk tenancy agreement as most others standard ASTs will put the onus on the tenant.  If they don't want to undertake maintenance then a landlord is clearly within their rights of having first given the tenant reasonable notice to carry out the work, then to employ a gardener and charge the tenant for it. 

Legalities vs management

The challenge for any landlord such as myself is to balance the legal rights and wrongs with the fact that you want to keep your long-term reliable tenants on side.  To fire off an email stating the contents of paragraph 3.13 of the Assured Shorthold Tenancy Agreement (above) would probably do little to endear me to my tenant.  So how do I proceed?  In reality the cost of a gardener to go round a cut back a litter bit of vegetation will cost me not much more than £50 quid.  This has to be weighed against the tens of thousands of pounds of rent I've received from this tenant to date.  I might have to swallow my pride along with the gardening bill; but sometimes the practicalities of keeping your long-term tenants happy have to be balanced against their clear legal responsibilities.

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Some words of warning

"When interest rates go up there are going to be serious problems in the housing market" http://t.co/T6dk0e42bZ https://t.co/5wKanLfK2D

— MoneyWeek (@MoneyWeek) May 13, 2015

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Prices rise as buyers battle short supply

The Royal Institute of Surveyors ( RICS) have blamed the election uncertainty for the diminished supply of property to the sales market.

According to the latest RICS UK Residential Market Survey, the fall in new instructions lead to price rises in April across all parts of the UK as buyers battled with a shortage of supply. 

For the first time since August 2014, RICS surveyors saw prices rise in every area of the UK, with 72% predicting further price rises over the next twelve months.

As regards the rental market, surveyors report seeing strong demand and expect to see continued rental growth over 2015.

House prices were driven up again in April as the data showed the third consecutive monthly decline in supply with new instructions falling at their fastest rate since May 2009, according to the latest RICS UK Residential Market Survey.

Jeremy Blackburn, RICS Head of UK Policy commented 

"The affordability and availability of homes in the UK is now a national emergency and addressing this crisis must be the priority for the new government. The last time we were building 300,000 homes was in 1963 under Harold Macmillan’s Conservative government, which utilised both public and private building.

We need a coherent and coordinated house building strategy across all tenures. This should include measures that will kick-start a supply-side revolution, such as mapping brownfield, addressing planning restrictions and creating a housing observatory to assess the underlying economic and social drivers of housing and provide the impetus for solutions."

Blackburn warns that -

"Introducing demand-side measures such as extending Right to Buy will not see the Conservatives deliver on their promise of 1m homes by 2020."


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Homelet sees rising rents

Homelet's Rental Index for April 2015 shows the following key points for the three months leading up to April -

• Average tenant income up 2.5% higher on last year.
• London average rents for new tenancies up 7.5% on last year, now £1,436pcm.
• UK average rental value (excluding London ) up by 7.4% on last year, now £730pcm.

Homelet's Rental Index is compiled from new tenancies, via their tenant referencing service, amounting to up to  1,700 applicants every day. 

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London's Nine Elms regeneration zone

Discover the new 'global city' being built on the south bank of the Thames: http://t.co/XULfHeklla pic.twitter.com/ytEJN5W3EE

— ES Homes & Property (@HomesProperty) May 13, 2015

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The BofE Inflation Report predicts property prices rising

The Bank of England have published their May 2015 Inflation Report, from which justified the Committee's decision to maintain the Bank Rate at 0.5% and the stock of purchased assets at £375 billion.

In the Money and Assets chapter of the BofE, May 2015 Inflation Report they conclude that rises in property prices were largely a result of low levels of housing supply, reflected by the fall in demand for mortgages since mid-2014.

Overall, the Bank of England staff predict 1⁄2% rises per month in the second half of 2015.

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Housing Minister pledges the obvious

I wil be focusing on delivering homes, ensuring those who aspire to their own home can do so. Delivering homes we need, where we need them.

— Brandon Lewis (@BrandonLewis) May 12, 2015

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RICS comment on new Government

What does the election mean for infrastructure and housing? Watch my comments @RICSnews http://t.co/TIZBmOGI7q

— Peter Bolton King (@peterboltonking) May 12, 2015

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Pre - election slump in rent ends

Residential rents have been on a downward slide leading up to the election according to the Rentindex - the UKs only real time barometer on UK buy-to-let rents.

The Rentindex shows that over the last 3 months rents which still exhibit a long-term upward trend, have slumped 3%. 

Rents though have very recently recovered by 0.7% over the last month perhaps reflecting landlords relief that rent controls were no longer on the post election menu.

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New housing minister - Take 2 - No change!

Mark Francois, the MP for Rayleigh and Wickford was reported to have replaced Brandon Lewis as Housing Minister in Cameron's new ministerial line up.

Fifty year old, Francois has a little experience of the sector, as the vice-chair Basildon Council's housing committee in the early nineties. Other than that, the ex- Territorial Army man, studied History and worked as a banker, before getting consultancy work as a lobbyist.

The other thing we know about him is, he likes snacking - Peparami, Mars bars, Snickers, Kit Kats, wine gums, Twiglets, Jaffa Cakes, chocolate biscuits and Pringles are just some of his favourites.

Housing Minister - no change

However, contrary to the original announcement on Monday No.10 confirmed today (Tuesday) that in fact Brandon Lewis (a landlord himself) has been retained in post as Housing Minister.

I'd love to know the inside track on this rapid reverse.  Did civil servants discover something about Francois past that might have come back to bite.  Or was it just that a new post for Brandon was not forthcoming?  Or was it just a good old fashioned civil servant 'cock up'.

Either way the civil servants in the ministry will be left with serious egg on their face.

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Halifax house price index for April 2015

The latest Halifax house price index came out on Friday, the day after the election and it appears that the UK property market wasn't overly troubled by pre-election jitters.

The key points from the Halifax HPI for April 2015

• House prices increased by 1.6% between March and April. 
• The average property is now £196,412 
• The latest quarterly rate for February-April saw a 2.2% rise on the preceding three months, November - January. 

Commenting, Martin Ellis, housing economist, said:

"House prices in the three months to April were 2.2% higher than in the preceding three months. This measure of the underlying rate of house price growth fell for the first time in 2015 following three successive rises. In contrast, annual house price growth increased slightly, from 8.1% in March to 8.5%. Nonetheless, the annual rate remains in the narrow range of 8-9% where it has been since the start of 2015 and is below last July’s peak of 10.2%.

“Housing demand is being supported by a number of factors including economic improvement, rising employment and low mortgage rates. At the same time, supply remains very tight with a general shortage of properties available for sale. This combination has kept house price inflation steady in recent months with prices increasing by 2.2-2.6% on a quarterly basis and at an annual rate of 8-9%.

“House prices are continuing to increase more quickly than average earnings despite the return to real earnings growth over the past few months. The resulting rise in the level of house prices in relation to earnings should constrain house price growth and activity over the remainder of the year. The annual rate of house price growth is forecast to end the year at 3-5%.”

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Coventry landlord fined £3,350 for HMO

Coventry landlord, Junie Liu has been fined £3,350, alongside costs of £1,048 and a victim surcharge of £120 after pleading guilty to  six offences under the Management of Houses in Multiple Occupation (England) Regulations 2006.

Nuneaton Magistrates’ Court heard how four tenants were found to be living at the House in Multiple Occupation in the Leam Green area of Coventry. The shared rental house was described by council officials as poorly maintained and without the necessary fire safety precautions in place. 

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Property predicted to pick up following election

General Election 2015: "Excellent" result for the housing market http://t.co/XEzV6DkE02

— Zoopla (@Zoopla) May 11, 2015

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A secondary schools affect on house prices

Interactive map: see how secondary schools affect local house prices in England http://t.co/r4DJ7jG8oY pic.twitter.com/kZ41UlQ0Yz

— Savills (@Savills) May 11, 2015

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Bank of England keeps interest rates steady

Post election there is no change in interest rates.

The Bank of Englands monetary policy committee has voted to keep rates at 0.5% and to maintain the existing levels of quantitative easing. 

Steady as she goes...

If you want to read more - 

BBC's take on May 2015 interest rates

Mark Carney's warning on rates

ThisisMoney's outlook on post election interest rates 

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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%	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
80%	5.39% Variable	0 Years	2%	£0.00	No	Saffron Light Refurbishment
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.    
 

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Landlords 'won' it for the Tories

The election results are showing that the Tories will just about get in with an electoral majority.

I'm pleased.  The threat of pointless changes to bring in rent control and an automatic 3 year tenancy are no more.

Estimated 1.6 million landlords

There are an estimated 1.6 million landlords now in the UK so we are a significant minority.  More importantly, landlords are not as the Labour party likes to caricature of loaded and lazy property owners fleecing their tenants.  I know of two female landlords, one a former teacher, the other a NHS employee.  Both had limited pensions because their careers were shortened as they brought up their young families.  These 'hard working' people now depend on their one investment property to give them a decent but by no means a luxurious retirement.  This is part of the reality of being a landlord in  the UK today.  We too are what Labour constantly refer to as 'hard working' people with families and our voice through the ballot box has been heard.

It's great that we are now free for another 5 years to get on with our lives and letting our properties rather than worrying about what an over baring administration thinks will look good to 'generation rent'.

Landlords may or may not have won the election for the Tories in reality, but hey it makes a great headline. Relax & enjoy!

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Property Ombudsman to stand down

After nine years as the Property Ombudsman, Christopher Hamer’s term of office is coming to an end. On 30th November 2015 he will be officially standing down. The independent TPO Council together with the TPO Board Chairman, Bill McClintock, have began the search to fill the position.

Christopher Hamer said: “I have been in the post for many years, have enjoyed it immensely and found working with all the various stakeholder organisations and individuals most rewarding. I don’t have any particular plans at this stage post 30th November but I do hope that in some way I will be able to contribute to developments in the property sector. I hope the next Property Ombudsman finds it as enjoyable and rewarding as I did and I would like to wish them the best of luck.” Bill McClintock said: “Christopher has been a highly effective Ombudman during a time when the scheme has expanded enormously. Both those working with him and in the industry will miss him greatly.”

Nice name Chris...

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'Ted' Miliband calling for rent controls in 1991

It's not the first time Ed Miliband has called for rent controls.

Meridian TV have unearthed footage of a young Oxford student calling for a rent strike back in 1991 - the activist's name, bizarrely is 'Ted', although his nasal voice is unmistakable.

Watch the footage of Ted Miliband calling for rent controls

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Irish property prices bouncing back

After a slow winter, the March figures from the Central Statistics Office

 recorded an average rise of 0.9% across Ireland.

The rise puts the 12 month growth rate back on track at 16.8%. 

Dublin outperformed the rest of the country,  with its annual price growth now at 22.8%. 

Quite a leap.

However, this bounce still leaves the average Irish property 38.2% lower than its 2007 peak. 

At least the Celtic tiger is purring again.

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Priciest areas for flatshares

Rip-off rents. The priciest place in Britain to flat share. http://t.co/AR5QCqCdqs pic.twitter.com/qisOMkpRv0

— Telegraph Property (@TeleProperty) May 5, 2015

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Zoopla's latest property price heat map

Heatmap of UK property values on Zoopla http://t.co/hAoiPXpO3F pic.twitter.com/MwRlD3NpKx

— Zoopla (@Zoopla) May 6, 2015

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Tory MPs increasingly landlords

The Guardian report that the number of MP's who are landlords has increased by a third during the coalition's time in office.

There are now 153 MPs with income from property,  36 more than 2010.

Most of these are Tory, with nine of the cabinet declaring income from property, including David Cameron, George Osborne and housing minister Brandon Lewis.

No wonder the Tories are more landlord friendly with their policies towards us.

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Map of London rents and values from KF

We do love a #map! Latest #sales growth & #rental value in #London @TomBill_KF. Download here http://t.co/7b2rbL4vF2 pic.twitter.com/bUkP7sooTE

— Knight Frank Hyde Pk (@Hyde_Park_W2) May 5, 2015

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KPMG study shares FTB affordability

A study by KPMG claims the average UK first-time buyer now needs to be earning £41,000.

For a FTB in the capital, that figure is estimated to be much higher, at £77,000.

The KPMG study mapped the average house price in each of ten UK regions, and based its affordabilty on the salary needed to secure a mortgage alongside a 10 per cent cash deposit.

The UK average, takes the ONS average house price of £202,765 and a mortgage of 4.5 times salary.

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London house prices forecast heavy weather

London house prices could be facing some heavy weather http://t.co/ghcBTxBYsz pic.twitter.com/G6l61geMSp

— MoneyWeek (@MoneyWeek) May 4, 2015

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Landlord fined £160k after tenants death

Landlord, Surinder Rana has been fined £160,000 after the death of her tenant, Sukhi Singh at a rental property in Hounslow, London back in August 2011.

Tenant Sukhi Singh was trapped in the rental property when a fire broke out.

The nine other tenants sharing the rental property managed to escape unharmed.

Following an investigation, safety inspectors found that the property failed a number of fire and safety regulations - poor evacuation routes, a lack of smoke alarms and no firefighting equipment, fire blankets or extinguishers.

Kingston Crown Court heard that the landlord had never carried out a proper fire risk assessment of the shared house. 

Neil Orbell, the London Fire Brigade’s assistant commissioner for fire safety, said: 

"The sentence handed down to Mrs Rana is a stark reminder to landlords that the court’s take fire safety as seriously as we do and that the penalties for ignoring it are severe."andlady has been fined £160,000 after one of her tenants was killed in a fire."

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JRF proposals for housing market

What can be done to achieve a socially sustainable housing market? See our General Election Hub. http://t.co/hSBYM9pore #GE2015 #UKhousing

— Joseph Rowntree Fdn. (@jrf_uk) May 5, 2015

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Landlord liable for tenant injuries despite not owning the freehold

A recent precedent set by the case of Edwards vs. Kumarasamy could affect landlord's insurance cover.

Landlord, Mr Kumarasamy was liable for the injuries to his tenant ( Mr Edwards) following his trip on a uneven paving stone on the way to put his rubbish in his dustbin.  incident when  the tenant was taking out his rubbish. The trip was caused by an uneven paving stone on an external path.

Despite landlord, Mr Kumarasamy  not owning the freehold of the shared property, and although the repairs to the external areas of the building were the responsibility of the freeholder / managing agent and not directly the landlord, Lord Justice Lewison decided it was still within the landlord's obligations as set out in section 11 of the Landlord & Tenant Act, 1985. 

Lord Justice Lewison's decision hinged on the interpretation of section 11 of the act, particularly the "implied covenant" of section 1A, which states that the lessor should keep in repair the structure and exterior of the dwelling house and that if the "dwelling house" is only a part of a building then this should take effect in areas where the lessor has an estate or interest.

In Lord Justice Lewison's view the accident happened on what was agreed to be an essential path in the tenants use of the property, deciding that Mr Edwards had sufficient "estate or interest" for the covenant to come into effect. He also concluded that although Mr Edwards had not reported the paths disrepair prior to the accident, as it was an area the landlord could freely gain access to, he felt their was no expectation for the tenant to have raised any concerns.

Liability Insurance for leaseholders

This case highlights how landlords who are leaseholders may still have responsibilities beyond their property boundary, meaning they can be sued in respect of areas of the property which they do not own themselves.

E.g. a private drive serving a property over which the landlord has a right of access or common areas of a block of flats. They need to monitor them regularly to ensure they're kept safe and in good condition. They also need to ensure that they have the correct insurance cover in the eventuality of a claim arising against them.

“This case has highlighted the need for leaseholders to have, as a bare minimum, Public Liability Insurance on their properties to protect them from expensive liability claims.” 

said Steve Cox, Account Executive at Alan Boswell Insurance Brokers. 

“We can provide quality cover at affordable prices, why not give us a try?”


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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%	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
80%	5.39% Variable	0 Years	2%	£0.00	No	Saffron Light Refurbishment
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.

---