Landlord and BTL Blog

Thursday, May 09, 2013

Halifax House Price Index for April

The Halifax House Price Index April 2013 indicate that prices in the three months to April were 1.3% higher than in the previous three months.

Commenting, Martin Ellis, housing economist, said:

"House prices continue to pick up gradually. Prices in the three months to April 2013 were 1.3% higher than in the preceding three months, marking the fifth consecutive increase in house prices on this measure. The relatively low level of mortgage payments in relation to income continues to provide support for the market.
"Market activity, however, remains subdued by historical standards with the number of mortgage approvals for house purchases – a leading indicator of completed house sales – easing slightly in the first quarter of 2013, according to the latest industry-wide figures.
"Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of 2013."

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Landlords could become more racist

Don't be surprised if landlords become more racist.
The new proposed legislation in this weeks Queen's Speech making landlords accountable for letting to any illegal immigrant could have an effect on their decision making.

For those landlords who currently send out for professional tenant checks the proposed changes will have little to no effect. The immigration check will no doubt be thrown in as part of the tenant checking process, so maybe landlords will see an increase in charges of maybe a quid, or two, per check.

For those landlords who still let without a professional tenant check - the 'shake hands and look me in the eye' type of tenant checker, we could well see their judgements be altered by these new proposals.

Let's be honest, given a choice between a tenant with a local accent, and another tenant with pigeon English, these landlords will be given even more reason to go with the local. Which will only make the life of any legal immigrants who are trying to make a new start in our country, even more difficult than it already is.

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Immigration Bill and Landlords

Parliament is proposing to introduce a new immigration bill. One of the proposals will impose a duty on landlords to check the immigration status of their tenants to ensure that they are not renting property to an illegal immigrant. This won't apply to tenants from EU countries.

At the moment it is unsure how this will work and how it will be implemented, but it is likely that a landlord could be fined if they let to an illegal immigrant.

We will keep you informed of the progress of the bill. In the meantime, if you need any landlord advice please do not hesitate to contact me at propertyhawk@fidler.co.uk

Rebecca Brough

Solicitor

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Average fixed rates drop below variable rates

An interesting feature of the buy-to-let mortgage market recently has been the continuing downward pressure on fixed rates. According to the Profile, for mortgage offers processed by Property Hawk Mortgages in Q1 2013, the average fixed rate was 4.48% compared with 4.67% in the previous quarter. This reflects the continuing economic issues in Europe, the impact of UK fiscal measures and falling swap rates over the last year.

This trend in pricing has meant that fixed rates and variable rates have been moving closer together over the last 12 months, and for the first time the average fixed rate (for offers received in Q1 2013) dipped below the average variable rate.

Increased competition has also influenced product design and some lenders are offering low headline rates aimed at specific segments of the market in order to attract new business and reach lending targets.

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Wednesday, May 08, 2013

Landlords may need to check tenants passports

Landlords renting out property will be made responsible for checking the immigration status of their tenants under proposed legislation set out in today's Queens speech.

Landlords that fail to do the proper checks could well find themselves facing heavy fines.

Read the possible implications in the Telegraph

See more of the proposals for Parliament here in the BBC

Read more comment on the proposals

Most popular BTL mortgages

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison	Lender
85%	4.99% Fixed	2 Years	2.5%	£130.00	No	6.8% APR	Kent Reliance Semi Exclusive
85%	5.99% Discount	2 Years	2.5%	£130.00	No	7% APR	Kent Reliance Multi Let & Ltd Co. Semi Exclusive
80%	4.59% Discount	2 Years	2.5%	£130.00	No	6.7% APR	Kent Reliance Semi Exclusive
80%	4.99% Fixed	Feb 28 2015	£1800	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.1% APR	Leeds Exclusive
80%	4.47% Fixed	May 31 2016	2%	£0.00	No		Saffron BS Semi Exclusive
75%	3.25% Discount	2 Years	£995	£250.00	No	4.9% APR	Melton Mowbray BS Exclusive
75%	3.35% Fixed	May 31 2015	£995	£250.00	No	4.9% APR	Melton Mowbray BS Exclusive
75%	4.09% Fixed	May 31 2016	£995	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.6% APR	Skipton Semi Exclusive
75%	4.75% Fixed	Jun 30 2015	0%	£150.00	Free valuation	5.4% APR	Mortgage Trust ltd Edition Exclusive
75%	3.99% Variable	2 Years	£1495	£250.00	No	5.1% APR	Melton Mowbray HMO Exclusive
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR	Leeds Exclusive
65%	3.79% Fixed	May 31 2016	£995	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.6% APR	Skipton Semi Exclusive