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.
Thursday, 23 August 2012
Olympic slump? The opposite's the case!
Mortgage lending and remortgaging appear to have gone through a busy few weeks.
With a number of lenders starting to offer under-3% interest rates for four to five year terms, home owners have submitted a rather large number of remortgage applications in late July and August, according to conveyancing specialists LMS.
Whilst experts had expected the Olympic Games to take precendence and deter home owners for a few weeks, it seems like shopping for a mortgage deal has still been high on the agenda.
Overall, July has proven to be a busy month for mortgage lending. The British Bankers Association (BBA) reports that high street banks' lending increased by 0.8% in July - maybe not a huge jump, but possibly showing a trend?
With a number of lenders starting to offer under-3% interest rates for four to five year terms, home owners have submitted a rather large number of remortgage applications in late July and August, according to conveyancing specialists LMS.
Whilst experts had expected the Olympic Games to take precendence and deter home owners for a few weeks, it seems like shopping for a mortgage deal has still been high on the agenda.
Overall, July has proven to be a busy month for mortgage lending. The British Bankers Association (BBA) reports that high street banks' lending increased by 0.8% in July - maybe not a huge jump, but possibly showing a trend?
Tuesday, 31 July 2012
There may be trouble ahead...
... for unprepared landlords.
It sounds like a fairly basic statement, but after weeks of stories highlighting how bou-to-let mortgages were leading the market, we've come across a number of more troubling news today.
Specialist broker Mortgages for Business reports that one in ten residential landlords has been asked by their lender to move on to another lender, mainly due to RBS and Brandford & Bingley wanting to reduce their exposure to the property market or - as is the case for Bradford & Bingley - looking to exit the market completely.
At the same time, UK Asset Resolution (UKAR), the state-owned lender, reports 100,000 customers in danger of defaulting on their mortgage. Many of them are landlords whose interest-only mortgages are due to mature by 2020 and who have no idea how to pay off the loan, according to UKAR.
On Friday, BDRC Continental reported that single-property landlords were struggling to keep on top of payments.
All doom & gloom? Not necessarily. As with much of the news we've had on property investment since the recession started, it goes to show that well-prepared landlords with solid finance models and well chosen properties can weather a storm.
At the same time, the current recession will hopefully serve as a cautionary tale to those looking to invest in property in the future - and here are a few things to consider no matter what the economy is doing: ensure you have the funds and finance in place, don't fall for deals that look too good to be true (they usually are) and select your property(ies) wisely.
It sounds like a fairly basic statement, but after weeks of stories highlighting how bou-to-let mortgages were leading the market, we've come across a number of more troubling news today.
Specialist broker Mortgages for Business reports that one in ten residential landlords has been asked by their lender to move on to another lender, mainly due to RBS and Brandford & Bingley wanting to reduce their exposure to the property market or - as is the case for Bradford & Bingley - looking to exit the market completely.
At the same time, UK Asset Resolution (UKAR), the state-owned lender, reports 100,000 customers in danger of defaulting on their mortgage. Many of them are landlords whose interest-only mortgages are due to mature by 2020 and who have no idea how to pay off the loan, according to UKAR.
On Friday, BDRC Continental reported that single-property landlords were struggling to keep on top of payments.
All doom & gloom? Not necessarily. As with much of the news we've had on property investment since the recession started, it goes to show that well-prepared landlords with solid finance models and well chosen properties can weather a storm.
At the same time, the current recession will hopefully serve as a cautionary tale to those looking to invest in property in the future - and here are a few things to consider no matter what the economy is doing: ensure you have the funds and finance in place, don't fall for deals that look too good to be true (they usually are) and select your property(ies) wisely.
Thursday, 26 July 2012
Sunny & dry weather? No, thanks
While we were all enjoying yesterday's sunshine, 'our' trees in Teaghlach Wood in Perthshire would have breathed a sigh of relief when today turned out to be a little cloudier.
Believe it or not, when the whole country was complaining about the never-ending rain over the past couple of weeks, our trees couldn't have been happier. Trees4Scotland's Angus Crabbie explains: "Trees really do love rain as it helps them grow, especially when they're young."
And while we were rejoicing about finally dusting off the barbecue again, forests are looking forward to the next rainy day to continue to develop.
There is a more serious side to this story as well: While trees need rain to grow, reforestation in general is one way to prevent landslides etc as the roots help avoid soil erosion - a natural contribution to our flood defences.
Cullen Property has teamed up with Trees4Scotland to offset the carbon footprint of our managed flats. To find out more or to get involved, please email us.
Believe it or not, when the whole country was complaining about the never-ending rain over the past couple of weeks, our trees couldn't have been happier. Trees4Scotland's Angus Crabbie explains: "Trees really do love rain as it helps them grow, especially when they're young."
And while we were rejoicing about finally dusting off the barbecue again, forests are looking forward to the next rainy day to continue to develop.
There is a more serious side to this story as well: While trees need rain to grow, reforestation in general is one way to prevent landslides etc as the roots help avoid soil erosion - a natural contribution to our flood defences.
Cullen Property has teamed up with Trees4Scotland to offset the carbon footprint of our managed flats. To find out more or to get involved, please email us.
Tuesday, 24 July 2012
Olympics let down?
Summer time lets in cities with large events tend to be popular and increase rates well above and beyond average rentals achieved. Edinburgh's Festival season is a great example.
This summer, with the Olympic Games due to start at the end of the week, a number of landlords in London and other Games locations were looking to cash in on their properties. However, while Buy-To-Let mortgages continue to be in demand, Olympic lets simply are not flavour of the month and many remain available.
Research by online publication Landlord Today has shown that Olympic lets in Chelsea and Stratford remain available, to name only two locations. One of the reasons may be the rates offered which are in some cases nearly triple the rate that would normally be achieved in the area and landlords are now facing voids.
On the other hand, there are positive Olympics-related property news as well: Lloyds TSB reports a 33% increase in property prices in the 14 postal districts closest to the mains sites of the Olympic and Paralympic Games in London's East End. In March 2012, average properties sold for just over £270,000 whilst the going rate was just over £205,000 in July 2005 when London was awarded the Games.
This summer, with the Olympic Games due to start at the end of the week, a number of landlords in London and other Games locations were looking to cash in on their properties. However, while Buy-To-Let mortgages continue to be in demand, Olympic lets simply are not flavour of the month and many remain available.
Research by online publication Landlord Today has shown that Olympic lets in Chelsea and Stratford remain available, to name only two locations. One of the reasons may be the rates offered which are in some cases nearly triple the rate that would normally be achieved in the area and landlords are now facing voids.
On the other hand, there are positive Olympics-related property news as well: Lloyds TSB reports a 33% increase in property prices in the 14 postal districts closest to the mains sites of the Olympic and Paralympic Games in London's East End. In March 2012, average properties sold for just over £270,000 whilst the going rate was just over £205,000 in July 2005 when London was awarded the Games.
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