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How mansion tax might look based on @UKLabour's targets. See the full report: http://t.co/NQsAzmclvV #SavillsForecast pic.twitter.com/zvyMFZmNkW
— Savills UK (@SavillsUK) November 10, 2014
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Monday, November 10, 2014
Impact of Labours mansion tax on prime property
Accidental landlords to face stress tests
A new piece of EU legislation, the European Mortgage Credit Directive is continuing to cause confusion in the UK mortgage industry.
The industry are still unsure quite how the new legislation will impact on the UK's community of 'accidental landlords'.
This week the Council of Mortgage Lenders went to the Treasury and the financial regulator, the Financial Conduct Authority (FCA), to ask for them to speak with the EU to help clear up the uncertainty.
The fear is, this new piece of European legislation will prevent "accidental landlords" from securing a mortgage on their second property. If a lender perceives them not to be a 'professional' landlord, they will instead, by default, be classed as a 'consumer' and therefore may will not be eligible for a Buy to let mortgage product.
The line defining who is n'accidental landlord' and who isn't is also blurred, but put simply an 'accidental landlord' is someone who has become a landlord through circumstance, usually because they have not being able to sell their residential property, and not because they purchased the property with the intention of renting it out from the offset.
Those properties that have not been occupied at any time by the borrower or a family member should definitely not be effected by the changes.
Those landlords that are classified as 'accidental' could find the new EU regulations proposed to come in this April impacting significantly on the type of lending available to them. Any loan on a second property, unlike BTL loans, could be liable to all the same financial stress tests and restrictions that are face on residential mortgages, even though the property is to be rented out to tenants.
This could be result in the death of the 'accidental landlord'.
Buy-to-let to hit a Trillion pounds by 2015
UK buy-to-let properties are estimated to hit £1 trillion pounds by mid 2015 according to latest figures released by Kent Reliance.
The value of the private rental sector (PRS) has expanded by £302bn thanks to a boom in London house prices.
London accounts for 41% of the total value of the PRS. Landlord housing assets are now 3.5 times the level that they stood at as recently as 2001.
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The value of the private rental sector (PRS) has expanded by £302bn thanks to a boom in London house prices.
London accounts for 41% of the total value of the PRS. Landlord housing assets are now 3.5 times the level that they stood at as recently as 2001.
Landlord insurance - professional rates - expert brokers
Thursday, November 06, 2014
Cameron's impact on the private rented sector
Cameron's housing legacy - how will it compare to his predecessors? #PMnumbers pic.twitter.com/rs6tUEk4zk
— Savills UK (@SavillsUK) November 5, 2014Installing Smart Meters to a rental property
Energy saving has become a big issue over the last couple of decades, alongside concerns over the environment, the austere economic climate has left many tenants needing to save on their bills.
Though helping to save your tenant money is not the direct responsibility of a landlord, helping your tenant budget their finances can be no bad thing.
Over the years, I’ve had a number of tenants come to me for advice on how to balance their personal finances, and I’ve been happy to give them help and guidance. Many tenants are young and often financially naive, by offering my guidance and steer them away form financial difficulties, I have kept the rent getting paid.
So anything that can help tenants reduce their bills is only going to reduce the chance of missed rent payments. One way to help is to reduce their energy consumption.
What are smart meters?
The government is due to facilitate a project to install smart meters in properties across the country.
Smart meters let people see exactly how much energy they’re using and how much it will cost. An easy-to-read display, helps people better moderate their energy consumption.
Why now?
When it comes to energy consumption, technology is really lagging behind when compared to other sectors. So many homes in the UK have their energy meters hidden in a cupboard underneath the stairs and are rarely, if ever, looked at. Smart meters provide a much more effective solution at showing how much energy is being used.
They do away with estimated readings as the information from the smart meter will be sent straight back to the supplier, meaning a tenant will only pay for the gas and electric that they’ve actually used.
How to get a smart meter?
Landlords could get a meter installed when a property is in between lets, or as I’ve been doing, encouraging new tenants to contact their gas and electric supplier to ask for one to be installed.
Smart meters are still a fairly new technology and whilst the aim is to get them in every house in the UK, not every property is currently eligible to get one so it will depend on the supplier.
Who will install it?
Smart meters are installed by the energy supplier, they will explain how they work. The display monitor is best placed somewhere where it will be easy to check. Often kitchens are the best place as they usually have a good number of outlets in different places, and often function as a home “hub.”
Will they really make a difference?
A recent ONS (Office for National Statistics) report showed that in 2012, the average British household spent an average of £106 a month on energy bills. This was up by 55% compared to 2002 stats, even after adjusting for inflation. What’s most alarming is that energy consumption actually fell in this period.
Other than rent and mortgage payments, energy bills are often a tenants biggest monthly monetary obligation. The better a tenant can budget, the less likely they are to find themselves struggling with their finances.
Though smart meters won’t automatically cut down a tenants energy consumption, it will at least give them a better idea of how much they’re spending on energy consumption on a day-to-day basis, and therefore help them better budget for other costs, such as paying the rent.
Though helping to save your tenant money is not the direct responsibility of a landlord, helping your tenant budget their finances can be no bad thing.
Over the years, I’ve had a number of tenants come to me for advice on how to balance their personal finances, and I’ve been happy to give them help and guidance. Many tenants are young and often financially naive, by offering my guidance and steer them away form financial difficulties, I have kept the rent getting paid.
So anything that can help tenants reduce their bills is only going to reduce the chance of missed rent payments. One way to help is to reduce their energy consumption.
What are smart meters?
The government is due to facilitate a project to install smart meters in properties across the country.
Smart meters let people see exactly how much energy they’re using and how much it will cost. An easy-to-read display, helps people better moderate their energy consumption.
Why now?
When it comes to energy consumption, technology is really lagging behind when compared to other sectors. So many homes in the UK have their energy meters hidden in a cupboard underneath the stairs and are rarely, if ever, looked at. Smart meters provide a much more effective solution at showing how much energy is being used.
They do away with estimated readings as the information from the smart meter will be sent straight back to the supplier, meaning a tenant will only pay for the gas and electric that they’ve actually used.
How to get a smart meter?
Landlords could get a meter installed when a property is in between lets, or as I’ve been doing, encouraging new tenants to contact their gas and electric supplier to ask for one to be installed.
Smart meters are still a fairly new technology and whilst the aim is to get them in every house in the UK, not every property is currently eligible to get one so it will depend on the supplier.
Who will install it?
Smart meters are installed by the energy supplier, they will explain how they work. The display monitor is best placed somewhere where it will be easy to check. Often kitchens are the best place as they usually have a good number of outlets in different places, and often function as a home “hub.”
Will they really make a difference?
A recent ONS (Office for National Statistics) report showed that in 2012, the average British household spent an average of £106 a month on energy bills. This was up by 55% compared to 2002 stats, even after adjusting for inflation. What’s most alarming is that energy consumption actually fell in this period.
Other than rent and mortgage payments, energy bills are often a tenants biggest monthly monetary obligation. The better a tenant can budget, the less likely they are to find themselves struggling with their finances.
Though smart meters won’t automatically cut down a tenants energy consumption, it will at least give them a better idea of how much they’re spending on energy consumption on a day-to-day basis, and therefore help them better budget for other costs, such as paying the rent.
Halifax house price index for October
Halifax's latest house price index has recorded a surprise fall. Prices fell 0.4% in October from September's figure. The average home is now worth £186,135.
Their housing economist, Martin Elliss said:
"House prices in the three months to October were 0.8% higher than in the preceding three months. This was the third consecutive decline in the quarterly rate of increase and the smallest rise since December 2012. Annual price growth in the three months to October slowed to 8.8% from 9.6% in September. Activity continues to decline with mortgage approvals in September falling for the third successive month to a 14 month low, whilst home sales are at their lowest level since October 2013. The associated weakening in demand has brought supply and demand into better balance.
“The economy is, however, continuing to grow at a healthy pace and employment is still rising. These
factors should support housing demand over the coming months. However, while the chances of an
imminent interest rate hike may have receded, a recent Halifax survey found that many borrowers are
concerned about the impact a rise could have on their monthly mortgage repayments over the next 12
months. This concern is likely to curb buying intentions."
Download October's 2014 Halifax House Price Index report for
Take advantage of our discounted landlord insurance rates
Their housing economist, Martin Elliss said:
"House prices in the three months to October were 0.8% higher than in the preceding three months. This was the third consecutive decline in the quarterly rate of increase and the smallest rise since December 2012. Annual price growth in the three months to October slowed to 8.8% from 9.6% in September. Activity continues to decline with mortgage approvals in September falling for the third successive month to a 14 month low, whilst home sales are at their lowest level since October 2013. The associated weakening in demand has brought supply and demand into better balance.
“The economy is, however, continuing to grow at a healthy pace and employment is still rising. These
factors should support housing demand over the coming months. However, while the chances of an
imminent interest rate hike may have receded, a recent Halifax survey found that many borrowers are
concerned about the impact a rise could have on their monthly mortgage repayments over the next 12
months. This concern is likely to curb buying intentions."
Download October's 2014 Halifax House Price Index report for
Take advantage of our discounted landlord insurance rates
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