Deals for first-time landlords at record high
Posted by The Oracle Group on 2nd July 2019 -
INDUSTRY
Deals for first-time landlords at record high
New figures from Moneyfacts reveal that the number of mortgage deals available to first-time landlords has reached a record high. The number of buy-to-let products on offer for landlords seeking to buy their first investment property has more than doubled deals in 2014 from 645 to 1,405 in 2019. Just in the past year, product numbers have increased by 137 and two-year fixed rates now start below 1.5%. “Entering the buy-to-let market has not been without its hurdles, and almost two years since the Prudential Regulation Authority introduced rules expected to tighten lending, the move doesn’t seem to have shaken up lenders attitudes to attract first-time landlords,” said Moneyfacts finance expert Rachel Springall.
Cost of social care may wipe out house value in 4 years
Crippling social care costs could wipe out the value of the average home in as little as four years, according to a recent study. Financial services company Just Group’s research uncovered a damaging postcode lottery, with the cost of care eating into house value far less in some areas of the UK than others. In London, the cost of moving into a nursing home would offset the value of a house in just over nine years. But in the North East, where property values are lower, the house would last less than four years.
Sheffield revealed as worst gazumping location
Sheffield is the worst area for gazumping in the UK, according to an analysis by MoveIQ. Some 35% of would-be buyers in the South Yorkshire city are gazumped, more than double the 16% average for England and Wales. The second worst location was found to be Maidstone in Kent, where nearly 32% of buyers were gazumped – despite the fact that average prices fell by one per cent in the year to January. Meanwhile, a survey by Savoystewart.co.uk found that 96% of Britons have looked at properties despite having no intention of moving or buying. Online house hunting was revealed to be the most popular, with all participants saying they looked on websites before anything else. However, 10% also confessed to attending open houses and a further 8% going to in-person viewings for properties they have no intention of buying.
Labour planning ‘draconian’ restrictions on BTL property owners
Labour is planning to introduce “draconian” new restrictions on the owners of buy-to-let properties to try to rein in house prices, writes the Mail’s Daniel Martin. The party is considering capping rent rises at inflation – with the abolition of tax breaks for those charging “excessively”, with tighter controls on the ability of landlords to evict renters “on spurious grounds”. Shadow Chancellor John McDonnell also said at the weekend that he was interested in a proposal to replace inheritance tax with a lifetime gifts levy.
Buy-to-let is still a ‘lucrative business’
Buy-to-let investors claim that residential property is currently the best long-term investment when compared to all other asset classes, according to a survey by Benham and Reeves. Over 5,000 buy-to-let investors were asked about everything from the current volatility of buy-to-let investments, confidence in the market, the impact of Brexit, other government changes to the industry and short and long-term investment intentions. The research found that 73% of those asked considered the sector to be the best, least volatile long-term investment.
LEGAL
Property agents can hide maintenance costs
Property agents will be able to keep secret potentially high property maintenance costs from prospective buyers, such as repairs for stairways, hallways and lifts in tenements, following the outcome of a tribunal. Brian Lynas and Annette Ferri bought a flat in South Lanarkshire in July 2015. They contacted James Gibb Property Management before they moved in to ask if there were outstanding repairs. The factor allegedly said that it did not anticipate any repairs, then issued the couple with a £1,300 bill to fix the bannisters in the common stairwell a few weeks later, prompting the tribunal. However, it was ruled that the factors had no legal duty to tell the buyers the truth until they had actually moved in as, whilst a code of conduct states that such agents must not give “false or misleading” information, the code only becomes active once the owners occupy the property.
Lawyers accused of profiting from Grenfell cladding fears
Lawyers have been accused of trying to cash-in by urging luxury flat owners to sue over "Grenfell-style" cladding despite potential legal bills of £30,000. Legal costs experts say that even if the residents won a claim against the building's developers, most of the compensation could go to their “ambulance chasing” legal teams. "The cladding scandal is a bean feast for their lawyers," said one specialist.
FIRMS
Woodford offloads stake in Raven property investment firm
Raven Property Group has bought back stock-picker Neil Woodford’s 12% stake in the firm. Raven announced that it has bought back 72.1m shares from Woodford at 36p per share. The property firm’s share price rose 4.1% to 37.9p in response to news of the buyback.
PLANNING
Developers submit plans for £30m housing development
A planning application has been submitted for a £30m 200-plus-home development in Bo'ness. Developer AWG Property and housebuilder Mactaggart & Mickel have made the submission for the development, which will include about 225 houses, and includes the delivery of roughly 75 "much-needed" affordable homes.
ECONOMY
Consumer credit growth grinds to five-year slump
Year-on-year unsecured consumer credit growth slowed to a five-year low in May, according to data from the Bank of England (BoE), with mortgages also dipping to £3.1bn. The figures showed that mortgage approvals fell to 65,400 in May, from 66,045 in April. However, despite the dip, the annual growth rate for mortgage lending was stable at about 3.2%. Howard Archer, chief economic adviser to the EY Item Club, commented: "While consumers have clearly been less affected by Brexit uncertainties than businesses, the overall impression remains that they have become relatively careful in their borrowing."
INTERNATIONAL
Paris brings back rent controls amid crazy market
Paris has reintroduced rent controls, previously abandoned in 2017, to combat soaring living costs and property prices in the French capital.
OTHER
Housing scheme threatened by mines
Plans for a housing and industrial development next to a quarry in Derbyshire may be shelved because of mine remains. Proposals to develop Middle Peak Quarry were submitted by Tarmac, but Derbyshire Dales Council says the mines in the area are listed as monuments by Historic England. The council is awaiting a recommendation from the Government.
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