Tuesday, February 28, 2017

Landlords switching from BTL to commercial loans

The National Landlords Association have witnessed a doubling in landlords considering commercial loans as their members seek to avoid the upcoming changes to taxation (which will bring an end the deductions for interest payments and other finance-related costs from turnover ).

The NLA report landlords planning to use commercial loans has risen from 10% in July 2015 to 19% at the end of 2016.

Approximately 100,000 landlords  established limited companies in 2016, leaping from just 1% of landlords to 6% during the course of the year.

Richard Lambert, NLA chief executive comments

“Over the last year more than one hundred thousand landlords have formed a limited company in order to beat the tax changes, and this overlaps with an increasing intention to look to commercial loans to fund future purchases

While commercial loans are available to non-incorporated landlords they tend to be a source of funding more commonly used by limited companies looking to expand their property portfolios, so we’d expect to see this trend develop as the year plays out

However, we know that the Treasury is concerned by the drop in tax revenues as a result of businesses across the economy incorporating to reduce their tax bills, and the Chancellor hinted at a review into the matter during his Autumn Statement last year. With this government’s recent track record in mind, we’d advise any landlords who have yet to incorporate to wait to see whether a consultation is launched in the [March 8] Budget before making a decision.”

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Monday, February 27, 2017

Ministers re-consider 18-21 housing benefit cuts

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Landlords urged to seek cheaper BTL mortgages

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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.

Sunday, February 26, 2017

A long 'lull' for UK property prices

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Saturday, February 25, 2017

Regional housing values mapped

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London's slow property price growth

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Friday, February 24, 2017

How would longer tenancy agreements work?

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Pepper Group cut BTL rates

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.

Thursday, February 23, 2017

Latest migration figures from ONS

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London's freelance friendly flats

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Wednesday, February 22, 2017

Students take letting agency to court

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Santander to re-word BTL contracts

Following petitions and the threat of demonstrations outside the bank's branches by tenant lobby groups, Santander have decided to drop the clause in their BTL mortgage contracts requiring landlords to raise rents by ‘as much as can be reasonably achieved’ .

Santander's BTL contracts also prescribed that landlords should conduct regular rent reviews so that 

‘if the valuer advises that the market rent at the date of the review is likely to be higher than the current rent, you will promptly take all steps which it is open to you to take under the lease to ensure that the review takes place and leads to the maximum increase in the rent which can reasonably be achieved.’

Santander promises that all new contracts with landlords will be without these controversial clauses.

Santander spokesperson commented:

‘We have never invoked the clause and having reviewed the wording, we are in the process of removing it from our terms and conditions.’

Over-pricing may bring a lower price

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Tuesday, February 21, 2017

Water Bills updating new tenants details



I have just had my nice new Polish tenants move in.  So far so good.  It's being a while since I have had any new tenants so I have had to refresh my memory on a landlords water responsibilities and on how it all works.  One useful discovery I have made is the emergence of a new website called Landlord Tap.

Landlord Tap - landlord water portal

Landlord Tap for the uninitiated is a web portal established by water UK a consortium of UK water companies to allow landlords and letting agents to manage all their tenants through one website.  I duly registered for my account.  Once registered all you have to do is add a property and then you can keep the relevant water company informed of any change of occupation and therefore liability for the bills through the website.  My experience has been very positive with the portal being easy to use and
it works.  I had notification within a couple of days saying that my account details had been updated with the new tenant shown as being responsible for all future water bill payments.

The other thing that I have learned from engaging with the water company in this case Severn Trent is that they no longer charge landlords whilst the property is empty in between lets.  Welcome news and a pleasant change from the general direction of travel of government and other organizations looking to raise more cash from landlords by escalating landlord tax bills and charges.

Landlord Insurance - professional rates - online brokers

The rise of the 'graddy annexe'

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UK housing transactions data

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Monday, February 20, 2017

Average UK house price = £220,000

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Selling the air space above your roof

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House price growth slows

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Claiming for a missing item

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Saturday, February 18, 2017

London boroughs -annual price growth

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Friday, February 17, 2017

Council houses not being maintained

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Thursday, February 16, 2017

FTBs fight off BTL landlords

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Wednesday, February 15, 2017

Universal Credit driving tenants into debt

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Tuesday, February 14, 2017

The fastest growing UK house prices

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Letting agents raiding tenancy deposits

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ARLA calls to end up-front fees

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New builds premium on the up

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Monday, February 13, 2017

Most landlords are cash buyers

The majority of landlords are cash buyers according to data from agents Countrywide.

The agency chain reports that 61% of landlord purchases in January were cash, the highest figure for more than a decade.

Northern landlords are the most likely cash buyers, Londoners the least.

Johnny Morris, from Countrywide comments 

“On average landlords sell a home once every 17 years meaning as prices have increased, a significant amount of wealth has built up in the sector. This is now fuelling cash purchases.

With the forthcoming tapering of tax relief on mortgage interest payment, landlords have less of an incentive to borrow, suggesting more cash activity in 2017” 

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Foreign rich choose to rent in London

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New functionality on BTL sourcing system

In order to help landlords to source suitable buy-to-let mortgage products, Property Hawk Mortgages has added some enhanced functionality to its free buy-to-let sourcing system which enables landlords to search for products based on their tax status.

The system also includes filters for limited company products, HMOs, student lets and other criteria to help narrow the search.

We have also embarked on a series of training sessions with buy-to-let lenders to get greater clarity on their propositions.

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.

Airbnb anxious over New York crack down

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Government tinkering with housing issue

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Saturday, February 11, 2017

BTL fixed rates hit all-time low

Email:info@propertyhawkbtlmortgages.co.uk
Tel: 029 2069 5446

Friday, February 10, 2017

London Airbnb time limits ineffective

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Thursday, February 09, 2017

Limited company BTL lending

It is noticeable that the nature of the enquiries we get are becoming more complex and it is taking longer to find the appropriate lender for many cases. There has been a clear increase in the number of enquiries for limited company products, particularly because of the imminent tax changes in April and the more favourable rental calculations currently being used for limited company applications.

There is certainly a wider choice of lenders and products for limited companies than ever before with some very competitive rates currently available. It is likely that we will see more lenders enter the limited company space and recent conversations with lenders have certainly indicated a growing interest in this area of buy-to-let lending.

Property Hawk Mortgages currently has a number of exclusive limited company deals including:


3.49% fixed for 5 years with a 125% at payrate rental calculation for limited companies with Foundation Home Loans. It has a flexible approach to assessing an applicant's suitability including:
  • No minimum income requirement - income from any legal source is accepted 
  • No minimum employment period 
  • Available for limited companies - no maximum age 

We have also seen a growing appetite from landlords for longer term fixed rates as those rates fixed for 5 years or more do not fall under the new ICR rules and tend to have more achievable rental calculations. There are also further options to arrange bridging and second charge buy-to-let finance for clients who may struggle with mainstream solutions.

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, February 08, 2017

West London property hotspots

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Fall in London house share rents

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Is renting a service industry?

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HMO finance - purchases and re-mortgages

There is plenty of choice for landlords looking to purchase or re-mortgage Houses in Multiple Occupation (HMOs).

For example:

Axis Bank - offering a range of specialist buy-to-let products for HMO properties aimed at experienced landlords with at least three existing buy-to-let properties. Axis will consider a maximum of 6 bedrooms, non-licensed HMOs, individual ASTs and up to 75% loan-to-value.

Paragon Premier - one of the key lenders for professional landlords with HMO properties, offering fixed and variable rate products up to 80% loan-to-value on its Premier range, with a lending aggregate of £10 million. Paragon will consider up to 20 tenants with multiple or single ASTs and assess the rental income on a room by room basis.

Kent Reliance - a popular lender for HMO properties with an unlimited aggregate lending policy for professional landlords and the only current provider of 85% loan-to-value mortgages.

Kent Reliance also has no minimum income requirement and accepts first time landlords (up to 80% LTV).

Other lenders servicing the HMO sector include: Aldermore, Fleet Mortgages, Kensington, Landbay, Precise Mortgages and Shawbrook Bank.

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.

Tuesday, February 07, 2017

House prices fall by 0

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PRA regulations BTL mortgage update

It has been a couple of months since we saw the initial reactions of lenders to the PRA regulations relating to interest coverage ratios (ICRs). Almost all of the providers on Property Hawk Mortgages’ buy-to-let sourcing system have altered their affordability assessments, with most lenders using a variety of rental calculations for different circumstances resulting in a bewildering array of products.

However, the changes to ICRs and stress rates do not provide the full picture as there are some lenders running additional affordability assessments alongside their rental calculations or offering alternative income top-up options. There are also different affordability calculations for basic rate and higher rate tax payers, which may not always be obvious to landlords searching for a buy-to-let mortgage.

As a buy-to-let specialist, Property Hawk Mortgages is dedicated to providing the highest level of support to landlords, but it has taken a considerable amount of time and work to get to grips with all the changes that have occurred and to ensure staff are up to speed. We know that landlords looking for buy-to-let mortgages are also finding the market challenging and there are further changes ahead when the new underwriting requirements for professional landlords come into effect later in the year.

The market is set to become more complex in September as the PRA will require additional underwriting standards for portfolios of 4 or more properties, which may result in the polarisation of lenders in the marketplace. Some lenders may choose to keep their existing online processing systems in place, opting to deal only with landlords with up to 3 properties and leave the professional landlord business to more specialist lenders.

Jane Simpson at Property Hawk Mortgages


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 Housing White Paper

The Government's much trumpeted Housing White Paper has been published, and includes proposed banning orders for rogue landlords and letting agents.

In brief the Government is looking to
  • Banning orders for landlords and letting agents
  • Make councils have an up-to-date plan for housing demand
  • Push developers toward high density housing in hight demand areas avoid 
  • Put a two/three year timescale for building starts following planning approvals
  • Create the Home Building Fund to encourage smaller building firms and to help incentivise more off-site construction in factories
  • Launch a "lifetime ISA" to help first-time buyers save for a deposit
  • Protection for the green belt

Communities Secretary Sajid Javid made this rally call:

'Walk down your local high street today and there’s one sight you’re almost certain to see. Young people, faces pressed against the estate agent’s window, trying and failing to find a home they can afford. With prices continuing to sky rocket, if we don’t act now, a whole generation could be left behind. We need to do better, and that means tackling the failures at every point in the system.

The housing market in this country is broken and the solution means building many more houses in the places that people want to live.

We are setting out ambitious proposals to help fix the housing market so that more ordinary working people from across the country can have the security of a decent place to live. The only way to halt the decline in affordability and help more people onto the housing ladder is to build more homes. Let’s get Britain building.'


The press reflects on the Housing White Paper from their various angles -






Savills house price report for Feb

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Monday, February 06, 2017

Agents taking buyer deposits

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Sunday, February 05, 2017

Thursday, February 02, 2017

Landlord insurance - customer experience


Landlord insurance is a difficult one. Really something not to get too excited about, but we do need landlord insurance.

I recently cancelled cover obtained through Alan Boswell for an unoccupied property.  Some landlords may not be aware that you will need a specialist landlord insurance policy if your rental property is empty for 90 days or more.  I have recently written about my experience of landlord insurance brokers.

I'm a John Lewis man - landlord insurance

It may be my age, but I like to buy things through John Lewis.  Why?  Well,  it's time, price and quality of service.  I've got to that stage in life where hunting around on the internet to shave 5 or 10% of the cost of something is really not worth it for me.  That's not to say I don't like bagging a bargain!  I do.  The other reason I like John Lewis is service.  I've got tired of being served by oiks or people that don't get back to you or know less than nothing about the product they are trying to sell you.  So John Lewis is a good compromise between: reasonable price, quality of service, product and peace of mind.

Over the years I've found that Alan Boswell have given me this type of package.  The latest release on customer feedback shown above shows they rank ahead of their competitors.

Landlord Insurance February price beat offer

February can be a depressing month; a hangover from Christmas, bills to pay,  rubbish weather.

Property Hawk has teamed up with Alan Boswell again to offer landlords something to lift the gloom.  Our price beat promise means that landlord can get the best of both worlds; industry leading customer service and a guaranteed price beating offer

Don’t worry if your renewal isn’t due yet. Even though this is a February email, if you register your interest now they can hold the deal for you. 

Of course there are some conditions: you must be a new customer insuring a residential property; you need to have been claim free for three years, and have no history of flood or subsidence. You can read the full conditions here.

To take advantage of the offer, give them a call on 01603 216399 and quote HAWK16. 

Alternatively fill in the short form online and the Alan Boswell team will call you back.

Nationwide see steady growth in house prices

house price index nationwide january 2017

Nationwide's Robert Gardner comments on their January 2017 HPI:

“The annual rate of house price growth remained broadly stable at the start of 2017at 4.3%, only  modestly below the growth rate in December of 4.5%. 

House prices increased by 0.2% over the month, after taking account of seasonal factors.
The outlook for the housing market remains clouded, reflecting the uncertainty surrounding economic prospects more broadly. “On the one hand, there are grounds for optimism. 

The economy has remained far stronger than expected in the wake of the Brexit vote. Recent data indicates that the economy didn’t slow in the second half of 2016 and the unemployment rate remained stable at an 11-year low in the three months to November.

However, there are tentative signs that conditions maybe about to soften. Employment growth has moderated, and while wage growth has edged up in recent months, in real terms (i.e. after adjusting for inflation), earnings growth has already slowed, as shown in the chart (above, right).

With inflation set to rise further in the months ahead as a result of the weaker pound, real wages are likely to come under further pressure. Employment growth is also likely to continue to moderate, should the economy slow as most forecasters expect.

On balance, we agree with the consensus view that the economy is likely to slow through 2017 as the squeeze on household budgets intensifies and heightened uncertainty weighs on business investment and hiring. 

Nevertheless, we continue to believe that a small rise in house prices of around 2% is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices"

Santander tells landlords to raise rent

Although it appears they might already be having second thoughts...
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DPS average tenancy deposit = £970.18p

The Deposit Protection Scheme reports their average tenancy deposit ( England and Wales ) is £970.18p.

The average deposit in London is at an all time high of £1,831.14p.

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Wednesday, February 01, 2017

RLA call for tax relief u-turn

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Birmingham's renaissance

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House price growth at 14 month low

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Knight Franks London Report 2017

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Housing set for five year low

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Council fail to make gas safety checks

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Right to Rent puts people at risk

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Zoopla buys Hometrack

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Landlord waits a year for electricity account

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SDLT receipts hit a high

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