Singletons feel the squeeze on flats

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

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

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

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

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

He adds:

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

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

New BTL from BM Solutions

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

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Email: info@propertyhawkbtlmortgages.co.uk

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Average rental yields remain above 6%

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

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

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

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Buy-to-let Mortgage Changes - Final Vote

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

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

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

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Surge in demand from London landlords

Typical London landlords

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

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

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


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Ping pong rentals

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

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

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

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

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


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