We've come across a couple of interesting stories on the rental market today: Shelter are asking for new, long-term rental contracts to be created in England. The objecive of those contracts would be to offer tenants stability in their (temporary) home.
These contracts would be valid for a period of five years, and Shelter's request comes on the back of research by Jones Lang showing that this 'Stable Rental Contract' could create better returns for landlords. However, according to this story there are no opinions from lenders yet.
However, Shelter's suggestion has been thrown out in a survey of flatsharers conducted by website Spareroom. Out of 1,000 users surveyed a whopping 82% said they are against extended contracts, fearing being tied in for longer and having less flexibility to move and change location. Tenants also feared landlords being more 'choosy' when it comes to selecting potential tenants in the long term.
At Cullen Property we believe both long and short term contracts have benefits for both tenants and landlords, depending on the individual's situation. Most students are keen to rent for the period of one academic year at a time as their plans may change, including study abroad years, changing course or taking time out.
Tuesday 25 September 2012
Wednesday 19 September 2012
Green shoots for prospective buyers
There's movement in the property market and some of it is upward, too.
The Office of National Statistics (ONS) has published figures today that state property prices have risen in England, although they are still trailing in Scotland, Northern Ireland and Wales. Overall, property prices are up 2.3% in the 12 months to June 2012.
Looking at Scotland in more detail, as LSL Academetrics have done, shows that things are also looking up for property sales in Midlothian and the city of Edinburgh, where average sales prices have risen by £17,000 and £14,000, respectively, since July 2011. Over the same period the number of loans to new buyers has risen by 1,100.
According to the same figures, finance appears easier to come by for first time buyers north of the border, too.
Time to get excited? Not quite yet. Whilst the figures are definitely a reason to be hopeful, especially in a double-dip recession, it's not yet time to open the Champagne. However, they do show that the market is stabilising.
Geographically, the upward trend can be linked to regions of high employment and prosperity, where buyers are more likely to have equity and require less finance. At the same time, with mortgage providers starting to offer a larger number of high loan-to-value products, the property market appears to be moving in the right direction.
For a more detailed assessment, contact our team.
The Office of National Statistics (ONS) has published figures today that state property prices have risen in England, although they are still trailing in Scotland, Northern Ireland and Wales. Overall, property prices are up 2.3% in the 12 months to June 2012.
Looking at Scotland in more detail, as LSL Academetrics have done, shows that things are also looking up for property sales in Midlothian and the city of Edinburgh, where average sales prices have risen by £17,000 and £14,000, respectively, since July 2011. Over the same period the number of loans to new buyers has risen by 1,100.
According to the same figures, finance appears easier to come by for first time buyers north of the border, too.
Time to get excited? Not quite yet. Whilst the figures are definitely a reason to be hopeful, especially in a double-dip recession, it's not yet time to open the Champagne. However, they do show that the market is stabilising.
Geographically, the upward trend can be linked to regions of high employment and prosperity, where buyers are more likely to have equity and require less finance. At the same time, with mortgage providers starting to offer a larger number of high loan-to-value products, the property market appears to be moving in the right direction.
For a more detailed assessment, contact our team.
Tuesday 11 September 2012
An investor's wish list
It may still be a few months' time until Christmas, but with retailers starting to stock chocolate Santas, it may be time to consider what would be on a property investor's wish list this year.
Judging by some of the most recent news pieces tidy tenants would be top of most investor's wish list. Whilst few would concern themselves with teh day-to-day running of the household, investors and landlords like to see their properties returned to the initial state when tenants move out.
And many tenants - keen to receive their deposit back - return their flat in perfect condition. However, approximately five percent hand over 'complete wrecks'. Nearly four in ten landlords have had to fully refurbish a flat after tenants moved out and ten percent said their repairs bill topped £2,500.
Joint second on our wish list are flats and terraced houses, as Paragon Mortgages reports that 16% of landlords are looking to increase their portfolio. According to their survey, flats and terraced houses appear much more popular than HMO properties which are typically shared by students. 58% of landlords are looking to invest in the former, with only 6% interested in the latter.
It's an interesting figure, especially considering the substantial returns achieved by well placed student flats in Edinburgh which have historically outperformed one and two bedroom flats for rental growth and occupancy.
Therefore, for Edinburgh property investors we'd like to add traditional four and five bedroom flats popular with students to our wish list, followed by a good choice of competitive finance products.
Judging by some of the most recent news pieces tidy tenants would be top of most investor's wish list. Whilst few would concern themselves with teh day-to-day running of the household, investors and landlords like to see their properties returned to the initial state when tenants move out.
And many tenants - keen to receive their deposit back - return their flat in perfect condition. However, approximately five percent hand over 'complete wrecks'. Nearly four in ten landlords have had to fully refurbish a flat after tenants moved out and ten percent said their repairs bill topped £2,500.
Joint second on our wish list are flats and terraced houses, as Paragon Mortgages reports that 16% of landlords are looking to increase their portfolio. According to their survey, flats and terraced houses appear much more popular than HMO properties which are typically shared by students. 58% of landlords are looking to invest in the former, with only 6% interested in the latter.
It's an interesting figure, especially considering the substantial returns achieved by well placed student flats in Edinburgh which have historically outperformed one and two bedroom flats for rental growth and occupancy.
Therefore, for Edinburgh property investors we'd like to add traditional four and five bedroom flats popular with students to our wish list, followed by a good choice of competitive finance products.
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