Tuesday, June 30, 2015

Burnham to give powers to CPO slum landlords

Prospective Labour Party leader Andy Burnham is calling for local councils to be given the power to Compulsory Purchase slum landlords in an effort to regenerate towns or cities.

This is nothing new.  Councils already have substantial powers to CPO properties where it is in the public interest.  They also have significant powers under the Empty Homes Premium to charge penal rates of Council Tax.  Despite this a recent report by the BBC reports that many councils are not using this power, this includes many Labour Councils.

It appears yet again for a politician calling for more powers to act when the reality is that they are already there but remain unused.

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Monday, June 29, 2015

Saville Residential Property Focus 2015 – Issue 2

Savills have published their latest report on UK residential property.

The report is tag lined as helping to explain the ' complexities of the built environment is vital in this post-election climate.'

NAEA reports rise in buyers

The National Association of Estate Agents’ May 2015 report says the average agency branch saw 383 house hunters register, up from 344 in April.

Supply of housing stocks remains low, increasing slightly to 46 properties per branch, up from 43 in April. 

Mark Hayward, Managing director at NAEA,  confirmed the continued shortage in supply

"Supply does not meet the rise in demand, and as consumer confidence grows we will continue to see a widening of the property gap. The housing shortage will not be solved any time soon, so as pressure mounts we will no doubt see increases in house prices, making it harder for those stepping on or up the ladder.”

Knight Frank Prime Central London Index

Knight Frank's Prime Central London Rental Index for June 2015 reports a slowing market.

Annual rental value growth in prime central London slowed to 3.4%.

Knight Frank put the slow down to high levels of supply hitting the market following pre-election uncertainty. The strong supply levels have enabled tenants a better negotiating position, forcing landlords to set more realistic asking rents in some areas.

The agent shared concerns over the EU referendum impact on prime rents, as financial institutions evaluate their futures in the capital.

Prime gross yields held steady at 2.96% for the second consecutive month. Take advantage of our discounted landlord insurance rates

Sunday, June 28, 2015

Saturday, June 27, 2015

A generation of pensioner landlords

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305 new student beds in Sheffield

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Friday, June 26, 2015

UK population growth - ONS data

It's a very simple equation - no wonder house prices and rents continue to rise.

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Thursday, June 25, 2015

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 2017-08-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
80% 3.25% Fixed 2017-08-31 £2495 £150.00 Free valuation Mortgage Trust Exclusive
80% 3.5% Discount 2 Years 0% £0.00 No Hanley Economic Exclusive
75% 3.79% Fixed 2 Years 1.5% £100.00 No Axis Bank
75% 4.59% Fixed 5 Years 1.5% £100.00 No Axis Specialist
75% 3.99% Fixed 2 Years 2% £125.00 No Foundation Prime
75% 2.4% Fixed 2017-08-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
75% 3.7% Fixed 2017-08-31 0% £150.00 Free valuation Mortgage Trust Exclusive
70% 4.99% Fixed 2 Years 2% £125.00 No Foundation Light Adverse
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. 
   
 
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.

The crossrail effect on house prices

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Gov push on with immigration checks

A survey carried out by the Joint Council for the Welfare of Immigrants (JCWI) in the pilot area for the new immigration checks ( Birmingham, Wolverhampton, Dudley, Sandwell and Walsall) has raised concerns over a Right to Rent Scheme roll out.

The JCWI reports landlords discriminating against tenant applicants on the basis of background, turning away tenants who have a foreign accent. The JCWI accuses the adoption of the Right to Rent Scheme is making it increasingly difficult for tenants in those pilot areas who cannot easily identify themselves as British or from a European Union state.

If a landlord breaches the rules they face a fine of £1,000 per illegal adult occupier and for a second offence that rises to £3,000 per adult.

Under Section 20 to 37 of the Immigration Act 2014 it makes it compulsory for landlords to check the immigration status of new adult tenants, with a potential fine of £1000 per tenant and £80 per lodger if this is not done.

The six month period of the pilot scheme has concluded and although a Home Office Advisory Panel has not yet made its evaluation,  David Cameron appears hell-bent on rolling the scheme out nationwide, stating on May 21st 2015 -

“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.”

The JCWI accuse the Gov of pushng on with a the roll out regardless of any findings from the pilot scheme - To appease some voters, the Conservatives intend to implement increasingly hostile measures in an effort to appear ‘tough’ on immigration. The Government are ploughing on with the ‘Right to Rent’ scheme regardless of the outcome of the initial rollout so far and, undoubtedly they will leave chaos in their wake.

Wednesday, June 24, 2015

New bill to name landlords on Council Tax form

The Conservative MP for Hornchurch and Upminister, Dame Angela Watkinson is introducing a bill to help identify criminal landlords today in Parliament. 

The MP proposed bill would force landlords to identify themselves on the council tax registration forms of a rental property.

The Draft Local Government Finance (Tenure Information) Bill would give councils the power to obtain the landlords details on a property.

Existing law means tenants are entitled to know the name of their landlord when signing a tenancy agreement, but he new bill would force this information to be shared with the local authority when registering for council tax.

The aim is to make it  more difficult for criminal landlords to hide their identify from the authorities.

If a tenant refuses or is unable to identify their landlord a local authority would be enabled to seek the owners identity using Land Registry data.

MP Angela Watkinson believes the proposed bill has strong cross party support.

The UK has the highest rents in Europe

According to research from the National Housing Federation rents in Britain are almost double the European average.

NHF data puts the average UK rent at £750 per household per month, compared to a European average of just £400.

The National Housing Federation claim the average UK tenant spends almost 40 per cent of their income on rent, whereas the average European tenant pays just 28 per cent.

David Orr, chief executive of the National Housing Federation commented:

“British renters get a raw deal in comparison to their continental counterparts. Not only do they face crippling rents, but renters in the UK have almost no certainty whether they will be able to stay in their home from one year to the next. How can we expect people to raise families, start businesses or save for their first home if they don’t even know where they will be able to afford to live?”

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Tuesday, June 23, 2015

Owner occupation falls as PRS surges

Data from the ONS (Office of National Statistics) reveals that owner occupation is falling as tenants in the private rental sector continues to rise.

In the census period from 2001 to 2011 the number of households who owned their own home fell from 69% to 64% whilst the numbers of tenants renting privately increased from 13% to 18%.

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LSE report on the impact of rent controls

A NLA commissioned report by the London School of Economics and Political Science (LSE) has concluded rent controls in the private rented sector would fail to improve the housing situation.

The LSE have published its interim report, in which it considered evidence from the UK, Germany, Ireland, San Francisco, New York and the Netherlands.

Carolyn Uphill, Chairman of the NLA, commented on the reports interim findings:

“The report is required reading for Labour leadership and London Mayor hopefuls, who seem to be ignoring both academic evidence and the overwhelming rejection of similar policies by the electorate last month.

“Private rented sectors in many countries, regulated or not, are facing major problems in high demand areas. Market fundamentals cannot just be regulated away”.

Kath Scanlon of LSE London commented:

“In light of the various proposals put forward before the General Election, we were asked to explore evidence from other countries about how rent controls and other regulatory policies affect the private rented sector.

“We found clear evidence that inflexible controls reduce supply, but the strongest message was that what may work in one country cannot simply be transferred to a different market and institutional environment”.


Mrs Uphill continued:

“The taxation of buy-to-let is a touchy subject for some, even though landlords in the UK receive no special treatment compared to other businesses.

“This report reinforces why successive governments have chosen to treat landlords as businesses. Doing so encourages best practice and, above all, helps to ease the housing crisis.”

The final report will be published later this year, after a more detailed investigation into London's private rental sector.

Download the LSE’s interim report on the effects of rent controls

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Monday, June 22, 2015

Rent to rent exposed in new TV series

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Peer-peer loan warning

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Saturday, June 20, 2015

Tax break for landlords under threat

I was reading with interest the piece in the Daily Mail about the fact that one of the few tax breaks that landlords have could be under threat as George Osborne looks to find the spending savings  he promised in the election.  Currently one of the biggest claimed expenses landlords can offset against their rental profits is the interest they pay on any loans they have taken out on their buy-to-let properties.  To scrap it would be unfair and a mistake and here's why:

1. Some people (normally disgruntled homeowners & tenants) argue it's an unfair advantage that landlords can offset their borrowing costs in a way that homeowners since the abolition can't with their own income tax liabilities.  This is true in isolation; but and it's a big but.  Landlords could equally argue that owner occupiers benefit from the current tax regime unfairly when they sell as they do not have any Capital Gain tax liability when they sell.  A landlord faces a capital gains tax bill of between 18 - 28%.  Therefore a landlord may have some income advantages in the short term but these are offset by the CGT disadvantages.

2. More pertinently to the above is that a household is not a business.  A landlord on the other hand clearly runs their own rental business and needs to make a financial return for the risk, effort and capital employed in their business.  In this respect the tax advantages compared to other businesses are far less generous.  This is because the rental business has historically a classification of an investment business which lies somewhere between a investment and business.

3. The mortgage interest tax break has historically meant that many buy-to-let investments have just 'washed their face' in the sense that a landlords income and net costs meant that a landlord would not be cashflow negative particularly in the early days whilst the outstanding debt was at it's largest.  This prompts landlord to be prepared to invest in the sector.  It is only recently because of historically low interest rates that landlords are making rental profits.  In the longer-term as interest rates increase this will revert to the previous situation and landlords with loans will be lucky to experience rental profits for the first part of their investment.

4. Simon Lamberts highlights that in the tax year 2012/13 the total tax breaks to landlords which includes the mortgage interest tax relief equated to £6.3 billion.  However, the fact that this is growing and is so large is testament to the growth and success of encouraging investment in the sector.  This money if invested in trying to house the 4.2 million households that lived in private rental accommodation (2011 census figures) would go 'no where' and the government know this.

5. The abolition of the interest relief would if abolished act if you as I do believe in the concept of 'nudge economics' be the tipping point for many landlords curtailing new investment and prompting many landlords to sell.  This would not be healthy for house prices, investment in the housing sector and the provision of rental property.  I also believe it to be demonstrably unfair.   

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Friday, June 19, 2015

North West landlords event

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Thursday, June 18, 2015

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 2017-08-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
80% 3.25% Fixed 2017-08-31 £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% 3.79% Fixed 2 Years 1.5% £100.00 No Axis Bank
75% 4.59% Fixed 5 Years 1.5% £100.00 No Axis Specialist
75% 3.99% Fixed 2 Years 2% £125.00 No Foundation Prime
75% 2.4% Fixed 2017-08-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
75% 3.7% Fixed 2017-08-31 0% £150.00 Free valuation Mortgage Trust Exclusive
75% 5.39% Variable 0 Years 2.5% £0.00 No Saffron Light Refurbishment
70% 4.99% Fixed 2 Years 2% £125.00 No Foundation Light Adverse
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.

Wednesday, June 17, 2015

6 days to Deregulation Act deadline

Citizens Advice share stories of a housing crisis

The Citizens Advice Bureaux have published a new report sharing Eight local Citizens Advice studies of housing market failures around England and Wales.
The report is part of their ongoing campaign running throughout 2015 aimed at improving the private rented sector called - Settled and Safe, a renter's right.

Last year the Citizens Advice helped 80,000 people with housing issues, and debt issues due to private rental arrears increased by 8%.

A storm is brewing ....


'Help to buy' failings

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New Land Registry property price app

The Land Registry have put out a new app to help find sold property prices.

Go to the Land Registry app 

And watch this video to see how to use it -

Tuesday, June 16, 2015

HMO licence amnesty in Barnet

An amnesty on the licensing of houses in multiple occupation (HMO) is being held in Barnet in north London following the successful prosecution of a landlord.

Owners and managers of illegally unlicensed HMOs have until 31 July to apply for a licence without fear of enforcement from Re, the joint venture between the London Borough of Barnet and Capita.

A HMO is a property rented out by at least three people who are not from one household – for example, a family – but share facilities like the bathroom and kitchen. A large HMO, which needs to be licenced, is a property that is at least three stories high and is rented to five or more people who form more than one household, who share a toilet, kitchen or bathroom. HMOs must also meet certain standards in areas like fire safety.

The amnesty comes after Knights Island Capital Ltd – trading under the name of Endeavour Living – and its two directors, Nikola Bonacic and Ben Patrick, were ordered to pay more than £10,000 in fines and costs for not having licensed a three-storey, semi-detached HMO in Rodborough Road, Golders Green.

Bonacic and Patrick pleaded guilty individually, and on their company’s behalf, to failing to license a HMO at Willesden Magistrates Court on 26 May. The two directors and the company were each fined £2,000, and ordered to pay a victim surcharge of £120 and full costs of £1,247.66.

In October last year, one of the eight tenants living at the house, contacted Re with complaints about the bin stores, poor water pressure, potentially dangerous electrics and to report that there had been no gas or fire safety checks since 2013.

Re wrote to Endeavour Living about the property but the company denied that it needed to be licensed. However, when environmental health officers visited the house on December 9, they found that it had been turned into eight bedsits and had only two smoke alarms, instead of the interlinked system it should have had. There were seven people living in the house, all sharing bathrooms and a kitchen, but tenants confirmed that until recently another tenant had also been living there.

Re director, Alun Parfitt, said: 

“The company and directors in this case acted unscrupulously and held no regard for any of the tenants or their personal safety. The high fines and costs send a strong message that we are making sure these rogue landlords are held accountable. I am urging landlords to come forward during this month’s amnesty without fear of enforcement to get their properties licenced so that we can help make Barnet a better and safer place to live.”

Councillor Tom Davey, Chairman of the London Borough of Barnet’s Housing Committee, said: 

“Ultimately this is a win-win for landlords and tenants in the borough. As well as an opportunity for landlords to come forward and avoid receiving huge financial penalties, the amnesty means tenants of newly licenced HMOs will have the peace of mind of knowing that their property will have new safeguards in place that they previously lacked. This is good news for all involved.”

Those who currently have unlicensed HMOs can contact Re’s environmental health team until 31 July with full details of their properties and will then need to make an immediate licensing application. 

Contact the team on 0208 359 7454, email hmos@barnet.gov.uk or visit www.barnet.gov.uk for more information.
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The latest ONS house price index



Key points -
  • UK house prices increased by 5.5% in the year to April 2015, down from 9.6% in the year to March 2015.
  • House price annual inflation was 5.8% in England, 1.3% in Wales, 2.2% in Scotland and 8.8% in Northern Ireland.
  • The pace of annual house price growth fell across the majority of the UK in April 2015.
  • Annual house price increases in England were driven by an annual increase in the East (9.6%) and the South East (8.4%).
  • Excluding London and the South East, UK house prices increased by 5.0% in the 12 months to April 2015.
  • On a seasonally adjusted basis, average house prices fell by 1.3% between March and April 2015.
  • In April 2015, prices paid by first-time buyers were 5.8% higher on average than in April 2014. For owner-occupiers (existing owners), prices increased by 5.4% for the same period.
Download the full Office for National Statistics House Price Index for April 2015

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Judge calls for photo proof to stop 'rent to rent' frauds

A judge has called for the landlords to provide photographic proof of ownership when renting out property to help prevent the increasingly common fraudulent scam of 'rent to rent'.

More London landlords have been caught out by a 'rent to rent' scam.

Landlords,  Alasdair and Joanna Reid, lost thousands of pounds when their supposed tenant sub-let their London flat while they were away on a career break in Africa.

The landlords believed they'd rented out their flat in Streatham Hill for £1,600 per month to a 48-year-old veterinary physiotherapist called Heidi Korn.

It later transpired that Korn had then tried to sublet the flat on to another couple at an inflated rent of £1800.

The 'rent to rent' fraudster was  caught by chance, when a contract with a forged signature got redirected to the Reids over in Africa.

Korn, from Ontario, Canada, was given an eight month prison sentence for fraud by the Inner London Crown Court.

Joanna Reid,commented:

“We are pleased with weight of the sentence. It was a very hurtful crime as it felt very personal."

However despite the sentence the unfortunate landlords are still owed £8,000 in unpaid rent.

Judge William Wood called for new measures - such as photographic proof of ownership to help prevent this “increasingly prevalent fraud.”

“It is worth proposing that when a private landlord seeks references from a prospective tenant he or she should provide proof of ownership and photographic proof of identity."


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MPs call for landlords to provide cookers and fridges

An all-party parliamentary group,  focused on 'Feeding Britain', have called for councils to be given new powers to force landlords renting to housing benefit tenants to provide basic items such as a fridge and a two-ring electrical hob.

Any landlords who failed to meet these requirements could have licences revoked and housing benefit payments stopped under these new proposals.

The Feeding Britain group said that some benefit tenants in the private sector were forced to be reliant on on expensive/unhealthy processed meals and takeaway food.

The groups six-month progress report has recorded an increasing portion of income spent by the poorest households on food, fuel and housing, from 31% in 2003, to 40% in 2012 and 42% in 2013.

Laura Sandys, a former Tory MP commented

“In some of the properties that I go into in my constituency, I am shocked to see that there are no cookers, only microwaves. That captures those families into having to buy expensive food, with a lack of choice and lack of resilience.”

Read the recommendations from Feeding Britain - the first 100 days 


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Survey in support of longer tenancies

According to a recent survey by Paragon Mortgages -


  • 81% of UK tenants in the private rented sector are satisfied with their landlord. 
  • 70% of the tenants surveyed thought their rent was at at a fair level. 
  • A fifth of the tenants were hoping to buy their own home in the future, 35% said they expected to stay in the private rented sector.
  • 6% of tenants had been refused their request of a longer tenancy by their landlord. 
  • 12% of tenants felt uncomfortable approaching their landlord about extending their tenancy agreement
  • 17% of tenants had asked for a longer term and their landlord had agreed.


  • John Heron of Paragon Mortgages commented -

    ‘There has been a lot of noise around the need for longer term tenancies for some time and I think there is a common misconception that landlords are not willing to be flexible in the tenancies they offer. Our landlord research demonstrates that many are more than willing to extend terms and in 71% of cases it was the tenant who chose to end the tenancy and not the landlord,’ 

    ‘We are big supporters of offering longer term tenancies and we were one of the first buy to let lenders to announce we would support the Government’s new model lease and allow landlords to offer 36 month tenancies to those tenants who need that extra security, as we believe this is our social responsibility,’ 

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    Rent controls - a German warning

    Thankfully the threat of rent controls have rescinded in the immediate term with the 2 Eds being kicked into the political wilderness.....shame!

    The reality is that the threat of rent control is never far away.  To see the effect on landlords and the rental market we only have to look to landlords in Berlin in Germany.  Here we have a bureaucrats charter with a new law preventing landlords from demanding more than 10% more than the area average.  The rules rely on a much disputed index called he Mietspiegel.

    The new rules apply the rent controls to new tenancies and Berlin landlords are up in arms.  Landlords  are looking at changing these rules in the short-term.  The real impact of rent controls can not be seen in the short-term; which is why opportunistic politicians love it to a deliver cheap political fix to disaffected 'generation rent'.  The real results can only be observed in the long-term.  For this you just have to look to another European country, Portugal.  Here is what happens over the long-term when rent controls takes hold.

    I feel landlords had a close call with the last general election.  But mark my words....the pressure for rent control will re-surface at some stage in the future so lets not become complacent.

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    Monday, June 15, 2015

    Homelet Rent Index for May 2015

    According to Homelets Rent Index for May 2015, rents increased in all UK regions in the three month to May.

    The average UK rent is £935 a month, or when London rents are excluded, £738.

    Rents are 10.7% up on this same three month period back 2014.

    The South West performed strongest, rents up 13.6% in a year, Scotland saw a 9.6% rise, the South East 9.4% and Greater London 9.2%.

    Martin Totty from HomeLet commented :

    ‘Rental values are now increasing year on year across the country, with no exception. After a short period of London rents rising more slowly, when it seemed the rest of the UK may catch up or even exceed the capital in the speed at which rent prices were increasing, we now see the rate of price rises in London returning towards double digit growth, while the rest of the UK continues to rise steadily,’ 

    ‘With the whole of the UK experiencing increases in rent prices agreed on new tenancies, it is possible this is an early indicator of a post-election private rental market where both landlords and tenants might expect rent prices to keep rising as demand continues to grow,’ 
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    Rightmoves record asking prices

    Rightmove's House Price Index for June 2015 has hit an all time high as a result of an ever worsening shortage of supply of property hitting the market.

    The portals latest HPI of asking prices recorded a record rise, jumping 3.0% in June, equating to £8,460 on top of the average asking price, now at £294,351.

    Six out of ten regions saw new highs.

    The UK's largest property portal recorded

    • Busiest ever May - with site traffic of 115 million visits
    • Properties coming to market down 8.5% on same period a year ago


    Miles Shipside, Rightmove director and housing market analyst comments:

    “Some buyers had been holding back in the weeks before the election, leading to some sellers suffering an unseasonal price standstill in the late spring. In particular, sentiment and prices got hit in the mooted Mansion Tax price brackets. Now the unexpected election outcome has caused a strong rebound, prompting an upturn in buyer demand and helping new seller asking prices to hit their highest ever levels.

    “Agents report that the election surprise has given a boost to market sentiment, driven by more certainty about future economic and taxation policies. While would-be buyers have been able to respond quickly to these events, many potential sellers have so far failed to come to market. This has pushed up some of the asking prices of those properties that have been marketed, meaning that buyers are faced with paying a new average record price high for the more limited choice available. It could be said that this is the price of political certainty.”

    “It all seems set up for an active second-half housing market in 2015 barring any external shocks to the economy. However, it remains to be seen whether stretched buyer affordability can reach sellers’ post-poll pricing. The new government and other stakeholders now need to urgently deliver more new-build homes, to stop asking prices being pushed up further as demand continues to outstrip supply of suitable homes in many areas.”


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    New Tenancy Deposit Rules

    Hopefully we now have some clarity in respect of deposit protection.  The Deregulation Act 2015 came in at the end of March and contains some issues which affect landlords.  The one I wanted to bring to your attention today is in respect of deposit protection.

    Following the Superstrike case there was confusion as to what had to be done when the tenancy became periodic, the Deregulation Act clarifies this and states that if you protect your deposit within 30 days of receipt and serve the prescribed information within 30 days you don't need to do anything further throughout the tenancy.

    If you find that you have forgotten to protect a deposit or serve the prescribed information you have until 23 June 2015 to put this right.  After that date you will be deemed not to have complied with the tenancy deposit rules and your tenant can claim compensation up to three times the amount of the deposit and you will not be able to serve a section 21 notice unless the deposit is returned to the tenant.

    For those who have a fixed term tenancy that became periodic before 6 April 2007 you have a choice, you can either protect any unprotected deposit now and serve the prescribed information, or you can do this before you serve a section 21 notice.

    If you have any queries or are unsure on what needs to be done email at propertyhawk@fidler.co.uk

    Rebecca Brough
    Solicitor
    Fidler & Pepper




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    Can you trust letting agents?

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    My tenants have fallen out

    It's the stuff of teenage fall outs, but my tenants in two adjoining flats are not speaking to each other. The tenant on the ground floor maintains that the tenant in the top floor flat is causing endless noise nuisance. This I find hard to believe having known how considerate and polite this tenant has always been with me. I received the other day this missive on the alleged audible misdemeanors of the top floor tenant. So far I have ignored it? Am I right? The missive goes like this:

     I don't know if last time you visited you had a word with TENANT X about noise but matters have not improved since. Many times since I have thought he must be moving out with the amount of noise he's been making. It still sounds like he is moving furniture regularly, banging, dropping heavy items, as well as stomping up and down stairs, banging and 'rocking' the front door...generally not considering neighbours. It can be even worse when he has a visitor staying which has been happening regularly. 

    Last Thursday morning, after months if not years of not complaining (except once recently when I lost my temper in response to excessive banging in the kitchen and tapped the ceiling with a brush, only to be met with shouts of 'fuXX off'), I opened the door to him locking up and singing in the hall (following much pre-work? noise). My opening line was not ideal, I admit, as I questioned whether he was determined to disturb me as much as possible. However, his response was one of someone who could not believe the issue was being raised again, stating he was' living his life'. On asking if the noise was really of the reasonable and everyday variety I was told I was 'mad'. He repeated this accusation several times, finally concluding that I was 'absolutely mad'. I thanked him for that and he left. 

    Since then he has been a bit quieter/out more so I hope the same problems will not arise again. 

    Should a landlord take sides on what clearly is a very subjective issue such as noise?  Clearly there are mechanisms when it comes to noise pollution such as calling in the Environment Health Officer to assess the nuisance factor.  My approach so far is not to get involved.  I suspect to do so would only alienate myself to one or other of my tenants.  This is not something I want or need to do.

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    Thursday, June 11, 2015

    A conference about invasive weeds!

    Although this sounds funny, as someone who has suffered from a blight of Japanese Knotweed, I know certain weeds are no laughing matter.

    Japanese Knotweed
    The Property Care Association (PCA) is holding the first conference dedicated to the subject of non-native invasive plants called -

    ‘Understanding Invasive Weeds: Japanese Knotweed, Fact and Fiction’

    The conference takes place on 23 September at The Vale Resort, Hensol, Cardiff.

    The conference aims to put the range of invasive weeds under the spotlight for landlords.

    It is the first conference held by the PCA’s specialist Invasive Weed Control Group and is being facilitated by Richard Newis, Ashfield Japanese Knotweed (chair), Ian Graham, Complete Weed Control and Professor Max Wade, AECOM.

    As well as tackling the thorny issue of Japanese Knotweed, other invasive weeds such as Himalayan Balsam and Giant Hogweed will be discussed. 

    The issues follow new EU regulations that empower government agencies to issue Control Orders to manage any high risk invasive weed species, including housing construction projects.

    A full programme and booking form for the event can be downloaded 


    Accidental landlords selling up



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    New London landlord licensing site

    If you're a London landlord, confused by all the changes, amendments and general confusion around landlord licensing a new website might help clarify things for you.

    It lost which borough require which licences for which kind of rental property.

    The appropriately named London Property Licensing website seems to do just what it says on the tin.


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    Fewer properties coming to the market - RICS

    The property market has failed to bounce back into gear following the election. The RICS UK Residential Market Survey for May 2015 puts stock levels at the lowest since their records began, back in January 1978.

    Surveyors report that new instructions have fallen for the fourth consecutive month, with stock levels 12% down on the start of the year.

    A desperate lack of supply has failed to meet the rise in new buyer enquiries, pushing up property prices again in May.

    The North West and London saw the biggest drop in supply.

    RICS chief economist, Simon Rubinsohn commented 

    “There had been some hope that the removal of political uncertainty would encourage more properties on to the market, but the initial indications are that this is not proving to be the case. As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher, with property set to become ever more unaffordable.”

    Commenting that the restrictive supply 

    “points to prices at a headline level rising by another 25% over the next five years”.

    Rental demand

    RICS say tenant demand is up in May (on a non-seasonally adjusted basis) and expect rental growth for the fifth straight month, with the East Midlands and South West looking the strongest for potential rental growth.

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    Wednesday, June 10, 2015

    With savings rates like this ...

    Any wonder that BTL property has become such a popular investment when you look at what other options people have for their money. -

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    Two weeks to protect deposits - Deregulation Act 2015

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    The impact of Help to Buy

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    House price growth outstripping rents


    The 5th edition of Allsops Rent Check report has been published. The report covers the changing environment of PRS in  England and Wales over the past two year - during which time the Private Rented Sector has grown by 13.9% to 4.377m households . 

    Allsops report average rental growth for 2 bed flats across the regions is +2.38%, with the South East performing strongest, up 10.07%.
     
    House price growth over the past two years has surpassed rental growth, with Halifax and Nationwide recording more than 15% growth in house prices across England and Wales.

    With rental yields falling  from 6.1% in Q1 2013 to 5.7% in Q1 2015, landlords returns are almost totally reliant on capital growth.

    The Five Year Outlook

    Increasing importance of PRS to meet housing demand with the ONS estimating the UK population will grow from 64.8 million to 67.2 million by 2020, an increase of 1,327,000 households, of which one million expected to provided by the PRS. 

    Can Buy-To-Let Investors Meet The Demand?

    By the end of 2007, there were over 991,600 buy-to-let mortgages in place with a value of over £116 billion (CML, 

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    Bank of mum and dad helping FTBs

    The bank of mum and dad is helping get first time buyers onto the housing market.

    The Halifax report that 28% of parents say their children moved back home to help them save for their first home, before increasingly helping with the deposit on a first home and even contributing to mortgage repayments.

    The Halifax data, collected in the past five years, includes responses from 40,000 20-45 year olds and 4000 parents. 

    The bank says 26 % of parents put money in for a deposit and 6% help with monthly mortgage payments. Over half of parents who own a property help with their children's deposit.

    Tuesday, June 09, 2015

    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 2017-08-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
    80% 3.25% Fixed 2017-08-31 £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% 3.79% Fixed 2 Years 1.5% £100.00 No Axis Bank
    75% 4.59% Fixed 5 Years 1.5% £100.00 No Axis Specialist
    75% 3.99% Fixed 2 Years 2% £125.00 No Foundation Prime
    75% 2.4% Fixed 2017-08-31 2.5% £150.00 Free valuation Mortgage Trust Exclusive
    75% 3.7% Fixed 2017-08-31 0% £150.00 Free valuation Mortgage Trust Exclusive
    75% 5.39% Variable 0 Years 2.5% £0.00 No Saffron Light Refurbishment
    70% 4.99% Fixed 2 Years 2% £125.00 No Foundation Light Adverse
     
    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.

    Britains biggest BTL landlords plan to sell

    Monday, June 08, 2015

    Axis Bank added to our buy-to-let panel

    Property Hawk Mortgages has added Axis Bank to its buy-to-let panel. 

    Axis Bank has entered the UK buy-to-let mortgage market for the first time and is offering its products through specialist buy-to-let distributors only including Property Hawk Mortgages.

    Andy Young at Property Hawk Mortgages, commented: 

    “It is exciting to see Axis Bank entering the buy-to-let market, especially as the sector is growing and the demand from landlords is strong. Currently, competition between lenders is increasing, pushing rates down and there is a large number of excellent products available for mainstream buy-to-let applications.

    “However, there is definitely still room for improvement in niche areas of the buy-to-let mortgage market such as for HMO properties, Limited Companies and Ex-pat applicants. This is where Axis Bank will be a particularly useful addition to our lender panel with its specialist product range and a flexible approach to underwriting.”


    Axis Bank product range highlights include:
    • Loans for experienced landlords with at least 3 existing buy-to-let properties
    • Unlimited portfolio size elsewhere considered, although maximum 5 loans with Axis
    • Up to 75% LTV
    • Maximum loan size £1m
    • Rental calculation on 5 year product at 125% based on pay rate (4.09% on Standard product and 4.59% on Specialist product)
    • Standard product range for individuals and their property requirements
    • Specialist product range for more complex requirements, including purchases through Limited Companies, Houses in Multiple Occupation (HMOs) or Ex-Pat borrowers
    • No minimum income requirement
    • A range of product options, including longer term fixed rates to fit individual needs
    • Available for properties in London and South East
    • Refinance within 6 months of purchase considered
    • All cases individually assessed.
    Email:info@propertyhawkbtlmortgages.co.uk
    Tel: 029 2069 5446