Everyone here at Cullen Property wishes you a very Merry Christmas and Prosperous New Year!
All the best for 2012!
Tuesday 20 December 2011
Wednesday 7 December 2011
Update on Tenancy Deposit Scheme
Scotland's Tenancy Deposit Scheme has moved a step closer to completion after it was announced that the consultation paper is available with a series of consultation events to take place in Edinburgh and Glasgow.
The Scottish Government announced that the consultation events are designed for stakeholders to listen to proposals from Letting Protection Scotland and SafeDeposits Scotland.
A representative from Cullen Property will be attending, however please see the attached link for further information on the events, as well as information on the proposed schemes.
http://www.scotland.gov.uk/Topics/Built-Environment/Housing/privaterent/government/SGTD1
We will continue to update using this blog on the outcome of the proposals.
The Scottish Government announced that the consultation events are designed for stakeholders to listen to proposals from Letting Protection Scotland and SafeDeposits Scotland.
A representative from Cullen Property will be attending, however please see the attached link for further information on the events, as well as information on the proposed schemes.
http://www.scotland.gov.uk/Topics/Built-Environment/Housing/privaterent/government/SGTD1
We will continue to update using this blog on the outcome of the proposals.
Tuesday 22 November 2011
The Cullen Team is Growing
Cullen are pleased to announce the appointment of two new members of staff to join the existing team to help ensure the company can deliver a premier service to it's Landlords and tenants.
Alexa Wilson has joined to take up a new post of Reception/Property Administrator and will be the first point of contact for all incoming enquiries to the office. Alexa has worked in the Edinburgh property sector for seven years and has experience in both the letting and estate agency elements of the property industry.
Hana Petrie has also joined the Cullen ranks to increase the maintenance department and is also an experienced property professional. Hana has a building and estate management degree which will be put to good use as the maintenance dept continues to provide a first class service for both Landlords and Tenants.
They have both received a warm welcome from the rest of the Cullen team who wish them well in their respective new roles.
Alexa Wilson has joined to take up a new post of Reception/Property Administrator and will be the first point of contact for all incoming enquiries to the office. Alexa has worked in the Edinburgh property sector for seven years and has experience in both the letting and estate agency elements of the property industry.
Hana Petrie has also joined the Cullen ranks to increase the maintenance department and is also an experienced property professional. Hana has a building and estate management degree which will be put to good use as the maintenance dept continues to provide a first class service for both Landlords and Tenants.
They have both received a warm welcome from the rest of the Cullen team who wish them well in their respective new roles.
Wednesday 16 November 2011
Are First Time Buyers poised to kick start the housing market?
The implosion of the mortgage market in the UK following the worldwide economic downturn after the collapse of Lehman Brothers in 2008 has meant that potential first time buyers have not been able to buy their first property due to the high deposit levels demanded by the lenders.
The lenders were as uncertain of the future economic trends as the rest of us so increased the deposit levels required to safeguard their own equity in a mortgaged property to ensure they’d get their money back if everything went wrong.
However, we now seem to have reached a plateau, or more accurately a plain, where everyone accepts that the economy will be flat for the next year or so, but is unlikely to collapse, and the slow growth will commence thereafter. Sir Mervyn King, Governor of the Bank of England has predicted this scenario in his recently released quarterly bulletin.
The lenders appear to have gained comfort from this and are now offering mortgages with much lower deposit levels, particularly to first time buyers. For example Lloyds TSB now have a product at 95% Loan to Value, at an interest rate of 3.94%, fixed until January 2015, with an arrangement fee of £1,094.00. (source: moneysupermarket.com)
On a property valued at, say, £150,000.00 the repayments on an interest only basis on the above mortgage would be £468.00 per month.
Most first time buyers who are renting because they can’t afford to buy are paying more than this for a rental property anyway and so they now have a motive to purchase instead. They have also been saying that they could afford the mortgage payments each month but few had saved the £60,000.00 (40% of £150,000.00) for the deposit being asked for by the lenders until just recently.
If the bottom end of the property market starts moving again then prices will start to rise again slightly and it will create a natural market stimulation upwards into the housing market as well.
If this is the case, then rents may adjust back down slightly in the smaller property sector of the rental market but the offset for landlords would be a return to some capital growth once again, albeit slowly for the next couple of years yet.
The lenders were as uncertain of the future economic trends as the rest of us so increased the deposit levels required to safeguard their own equity in a mortgaged property to ensure they’d get their money back if everything went wrong.
However, we now seem to have reached a plateau, or more accurately a plain, where everyone accepts that the economy will be flat for the next year or so, but is unlikely to collapse, and the slow growth will commence thereafter. Sir Mervyn King, Governor of the Bank of England has predicted this scenario in his recently released quarterly bulletin.
The lenders appear to have gained comfort from this and are now offering mortgages with much lower deposit levels, particularly to first time buyers. For example Lloyds TSB now have a product at 95% Loan to Value, at an interest rate of 3.94%, fixed until January 2015, with an arrangement fee of £1,094.00. (source: moneysupermarket.com)
On a property valued at, say, £150,000.00 the repayments on an interest only basis on the above mortgage would be £468.00 per month.
Most first time buyers who are renting because they can’t afford to buy are paying more than this for a rental property anyway and so they now have a motive to purchase instead. They have also been saying that they could afford the mortgage payments each month but few had saved the £60,000.00 (40% of £150,000.00) for the deposit being asked for by the lenders until just recently.
If the bottom end of the property market starts moving again then prices will start to rise again slightly and it will create a natural market stimulation upwards into the housing market as well.
If this is the case, then rents may adjust back down slightly in the smaller property sector of the rental market but the offset for landlords would be a return to some capital growth once again, albeit slowly for the next couple of years yet.
Friday 11 November 2011
National Landlord Day
Cullen Property enjoyed another fantastic day taking part in exhibiting at the National Landlord Day at Dynamic Earth, organised by the Scottish Association of Landlords.
There were around 400 landlords attending the day, which featured guest speakers discussing the upcoming Tenancy Deposit Scheme, tax improvements for landlords, and the future of the lettings market in Scotland.
There were also a number of different exhibitors for landlords to meet and discuss services with, such as Jobs in Lettings, Bank of Scotland, TC Young, Alan Boswell Group and Fire Prevention Works Ltd, to name a few.
Cullen Property have attended the past four National Landlord Day's. The aim of the event is to bring together landlords in Scotland, for them to meet similar individuals and discuss the ups and downs of letting a property in Scotland.
We will be uploading photos shortly to let you see how it went.
There were around 400 landlords attending the day, which featured guest speakers discussing the upcoming Tenancy Deposit Scheme, tax improvements for landlords, and the future of the lettings market in Scotland.
There were also a number of different exhibitors for landlords to meet and discuss services with, such as Jobs in Lettings, Bank of Scotland, TC Young, Alan Boswell Group and Fire Prevention Works Ltd, to name a few.
Cullen Property have attended the past four National Landlord Day's. The aim of the event is to bring together landlords in Scotland, for them to meet similar individuals and discuss the ups and downs of letting a property in Scotland.
We will be uploading photos shortly to let you see how it went.
Friday 28 October 2011
Tenancy Deposit Scheme Update - October
There has been little mention of this topic since it was launched a year ago by the Scottish Housing Minister, Alex Neil, at last year’s Scottish Association of Landlords annual conference.
The Tenancy Deposit Schemes (Scotland) Regulations 2011 became law on 7 March 2011. This law set out the requirements that any prospective scheme would need to meet in order for it to be approved by the Scottish government.
Once a scheme has been approved and is fully in place then all landlords and agents would need to move, within six months, any deposit funds already held into the scheme. Any new deposits taken would also need to be placed into the scheme within 30 days of the start of the tenancy.
To date, only three schemes have been presented to the government by companies looking to operate Tenancy Deposit Schemes in Scotland. One has only just been received, but the first two are currently being assessed and will then be given to ministers for review. This will then be followed by a consultation period of around six weeks during which time the terms of the scheme will be considered by all stakeholders who will be affected by the introduction of the schemes.
The findings of the consultation will then be analysed and recommendations given to ministers before a complete proposal can be presented for approval by the government.
This all takes time and it is likely to be spring 2012 before any scheme has actually been approved to the point where it can begin operating. The company would then need to set up their offices and systems before any funds could be placed under their control. This is likely to be in summer 2012.
This all assumes that the schemes will be able to work through the approval process and that the companies concerned will be willing to adopt any changes required by the government. Given that the profit from running such a scheme has to come from the bank interest received on the funds held, and taking into account that interest rates are at an all time low, then it could well be some time before we see any TDS up and running in Scotland.
Watch this space!
The Tenancy Deposit Schemes (Scotland) Regulations 2011 became law on 7 March 2011. This law set out the requirements that any prospective scheme would need to meet in order for it to be approved by the Scottish government.
Once a scheme has been approved and is fully in place then all landlords and agents would need to move, within six months, any deposit funds already held into the scheme. Any new deposits taken would also need to be placed into the scheme within 30 days of the start of the tenancy.
To date, only three schemes have been presented to the government by companies looking to operate Tenancy Deposit Schemes in Scotland. One has only just been received, but the first two are currently being assessed and will then be given to ministers for review. This will then be followed by a consultation period of around six weeks during which time the terms of the scheme will be considered by all stakeholders who will be affected by the introduction of the schemes.
The findings of the consultation will then be analysed and recommendations given to ministers before a complete proposal can be presented for approval by the government.
This all takes time and it is likely to be spring 2012 before any scheme has actually been approved to the point where it can begin operating. The company would then need to set up their offices and systems before any funds could be placed under their control. This is likely to be in summer 2012.
This all assumes that the schemes will be able to work through the approval process and that the companies concerned will be willing to adopt any changes required by the government. Given that the profit from running such a scheme has to come from the bank interest received on the funds held, and taking into account that interest rates are at an all time low, then it could well be some time before we see any TDS up and running in Scotland.
Watch this space!
Thursday 20 October 2011
Edinburgh - The Glass is Half Full
With all the negative press and documentaries focusing on Edinburgh recently, it is important to focus on the positives of the City.
Take for example the tram situation; there have been numerous articles claiming how the project has been a disaster from start to, well rather than 'finish', to now.
However, it appears that the project is now 'back on track' (parden the pun) and once finished; Edinburgh will be provided with a fantastic tram system that will allow people to get around the City easily.
In addition, there has always been an issue with traffic congestion and the trams are another way of reducing this problem.
Another positive to come out of a disaster is the recognition of Edinburgh's excellence in the financial industry. While this sector has taken a particular thrashing in terms of cutbacks and loss of staff, there is a light at the end of the tunnel; Tesco Bank and Virgin Money.
Both these companies are setting up financial headquarters in Edinburgh and this will most certainly have a positive impact on the employment levels, as well as the subsequent expenditure and investment in the City.
Perhaps Edinburgh isn't such a bad place to be afterall.
Take for example the tram situation; there have been numerous articles claiming how the project has been a disaster from start to, well rather than 'finish', to now.
However, it appears that the project is now 'back on track' (parden the pun) and once finished; Edinburgh will be provided with a fantastic tram system that will allow people to get around the City easily.
In addition, there has always been an issue with traffic congestion and the trams are another way of reducing this problem.
Another positive to come out of a disaster is the recognition of Edinburgh's excellence in the financial industry. While this sector has taken a particular thrashing in terms of cutbacks and loss of staff, there is a light at the end of the tunnel; Tesco Bank and Virgin Money.
Both these companies are setting up financial headquarters in Edinburgh and this will most certainly have a positive impact on the employment levels, as well as the subsequent expenditure and investment in the City.
Perhaps Edinburgh isn't such a bad place to be afterall.
Thursday 6 October 2011
Student Buy to Let market still going strong
The Herald published an article this week confirming that the student buy to let market is performing well for investors, with Edinburgh’s yields ranked fourth in the UK.
If owning a buy to let property with a high performing yield is something that you would be interested in, we have a number of investment properties that are currently on our website at www.cullenproperty.com/properties_to_buy.asp. Alternatively contact Steve@cullenproperty.com or Malcolm@cullenproperty.com.
http://www.heraldscotland.com/mobile/news/home-news/best-returns-on-student-property-1.1127183
Thursday 22 September 2011
Edinburgh - The Center of Attention for all the Wrong Reasons
The City of Edinburgh represents a picture of historic buildings and beautiful architecture, however it is due to these assets that has driven the city into the limelight of a shadowy affair.
During the past year it was brought to the attention of the press that so called Statutory Notices were at the center of fraud and corruption on the council's part. Since then, nearly half the department in the property conservation department at the council have been suspended, albeit under 'precautionary' measures.
Members of this department were supposedly given bribes by contractors to make sure the work was allocated to them. On top of that, the contractors overcharged as well as in some cases provided such poor quality of work resulting in the works to be carried out again by another contractor.
For residents of the city of Edinburgh, they can't help but feel betrayed and dismayed at the whole situation; as the reason behind introducing statutory notices was to protect Edinburgh's precious architecture with due care and diligence on the council's part.
BBC1 Scotland screened a documentary detailing their own investigation and the amounts of money being exchanged over statutory notices is frightening.
http://www.bbc.co.uk/iplayer/episode/b0154z83/BBC_Scotland_Investigates_2011_Scotlands_Property_Scandal/
For anyone that is concerned about their own position regarding statutory notices from the past 6 years should contact the council whilst the police and Deloitte carry out their own investigations into the corruption claims.
During the past year it was brought to the attention of the press that so called Statutory Notices were at the center of fraud and corruption on the council's part. Since then, nearly half the department in the property conservation department at the council have been suspended, albeit under 'precautionary' measures.
Members of this department were supposedly given bribes by contractors to make sure the work was allocated to them. On top of that, the contractors overcharged as well as in some cases provided such poor quality of work resulting in the works to be carried out again by another contractor.
For residents of the city of Edinburgh, they can't help but feel betrayed and dismayed at the whole situation; as the reason behind introducing statutory notices was to protect Edinburgh's precious architecture with due care and diligence on the council's part.
BBC1 Scotland screened a documentary detailing their own investigation and the amounts of money being exchanged over statutory notices is frightening.
http://www.bbc.co.uk/iplayer/episode/b0154z83/BBC_Scotland_Investigates_2011_Scotlands_Property_Scandal/
For anyone that is concerned about their own position regarding statutory notices from the past 6 years should contact the council whilst the police and Deloitte carry out their own investigations into the corruption claims.
Wednesday 14 September 2011
Edinburgh University Student Fees
The unfolding story on what Student Fees will mean for the University of Edinburgh has developed further this week.
It is now thought that the funding gap caused by the Scottish Government's funding level of £5,000.00 per Scottish student versus the 'open market' price of £9,000.00 per annum for 'Rest of UK' (RUK) students is likely to cause a two-tier system of entry. In short, it could mean that a lower achieving RUK student could effectively out bid a Scottish student with better exam results so that the university will receive more cash.
We are also likely to see more Scottish students wishing to study at Scottish universities as opposed to south of the border where they would have to pay fees for their courses. This may result in increased competition for places at Edinburgh which is ranked 20th in the world.
We could also see some students wishing to come to Edinburgh purely for the kudos of it being the one of the most expensive universities to study in the UK.
More info on this hot topic can be found here... http://www.guardian.co.uk/education/2011/sep/12/scottish-universities-uk-students-fees
Wednesday 7 September 2011
Edinburgh Course Fees
So, Edinburgh University has shown it's hand on the subject of student fees, stating that it will charge students £9k per year, up to £36K for a four year course.
This is only chargeable to English, Welsh and Northern Ireland students under the present policy, but means that Edinburgh would be the most expensive University in the UK for these students. Scottish students would continue to study for free.
This will either mean that Edinburgh becomes a University for predominantly Scottish students, or becomes a 'must study there' destination for the wealthiest of the UK student population. Time will tell and it remains to be seen what if any reaction comes from the Scottish Government in its future policy decisions on this subject.
http://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-14784810
This is only chargeable to English, Welsh and Northern Ireland students under the present policy, but means that Edinburgh would be the most expensive University in the UK for these students. Scottish students would continue to study for free.
This will either mean that Edinburgh becomes a University for predominantly Scottish students, or becomes a 'must study there' destination for the wealthiest of the UK student population. Time will tell and it remains to be seen what if any reaction comes from the Scottish Government in its future policy decisions on this subject.
http://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-14784810
Friday 2 September 2011
First Scottish University to charge tuition fees
Scottish Universities likely to be taken to court over student fees!
Aberdeen University has become the first Scottish University to declare that from 2012 it will charge students £9,000 per year for the first three years of their courses, with the fourth year free. However, this does not apply to Scottish or EU students, but does affect those from England, Wales and Northern Ireland.
It is expected that the other Scottish Universities will make similar statements in the following weeks.
Unsurprisingly, this move is likely to be challenged by various students from England, Wales and NI. The current Scottish Govt stance is seen by many to be illegal under European Law and contravenes the human rights of those students affected.
It seems probable that the differences north and south of the border will be resolved to bring about a fair system for all.
For property investors in Edinburgh, it is likely to mean that there will be an increase in student demand for Edinburgh properties as Scottish Students will have to compete in an ‘open market’ with those from England etc. And with the University having more revenue it is likely to mean that they will look to offer more courses and be able to develop further infrastructure for future growth too.
Aberdeen University has become the first Scottish University to declare that from 2012 it will charge students £9,000 per year for the first three years of their courses, with the fourth year free. However, this does not apply to Scottish or EU students, but does affect those from England, Wales and Northern Ireland.
It is expected that the other Scottish Universities will make similar statements in the following weeks.
Unsurprisingly, this move is likely to be challenged by various students from England, Wales and NI. The current Scottish Govt stance is seen by many to be illegal under European Law and contravenes the human rights of those students affected.
It seems probable that the differences north and south of the border will be resolved to bring about a fair system for all.
For property investors in Edinburgh, it is likely to mean that there will be an increase in student demand for Edinburgh properties as Scottish Students will have to compete in an ‘open market’ with those from England etc. And with the University having more revenue it is likely to mean that they will look to offer more courses and be able to develop further infrastructure for future growth too.
Wednesday 24 August 2011
Good News for Investors...
Finding suitable residential properties for investment purposes over the last 4 years has not been easy. The main problem has been the high deposit requirements fom many of the lenders during this period.
There have certainly been good properties around at reasonable prices but the high cash input requirements have pushed the 'net returns on cash invested' down to typically 3.5 - 5.5%.
However the global economic turmoil we are currently witnessing has had a potentially positive effect on the buy to let market. The reduction in the U.S. Credit Rating, the various ongoing problems with the Euro, and the tough stance on spending by the U.K. government have all lead the Bank of England to indicate recently that the base rate is going to sit at 0.5% for some time yet, possibly even until 2014. The global bad news has also caused uncertainty in the share markets and the old favourites of gold and bricks/mortar in troubled times have been buoyed.
All of this has meant that the banks have been able to lower their risk margins when calculating their mortgage product offerings with some attractive deals now coming to the market.
The RBS, Northen Rock and Skipton B/Soc have all released deals in the last few weeks with 70% Loan To Value (LTV) rates at interest rates of between 3.69 - 4.9%, with varying, but reasonable, arrangement fees.
This has had the effect of pushing the 'net returns on cash invested' up to much more attractive figures of between 8.0 - 11.0% due to the reduced amount of cash now needed to acquire a property than was previously the case.
We will be searching for these types of properties in the coming months and will be circulating them to our clients.
Friday 29 July 2011
Festival Time in the City
Cullen Property have provided some quick links for anyone wishing information on what is taking place during August in Edinburgh.
http://www.eif.co.uk/
http://www.edfringe.com/
http://www.edbookfest.co.uk/
http://www.eif.co.uk/
http://www.edfringe.com/
http://www.edbookfest.co.uk/
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