Landlords' taxable profit set to 'sharply increase'

With the Government now almost two months into rolling out Section 24 and its new buy-to-let tax relief system, online letting agent Upad believes landlords will see an average 13% increase in their taxable profit from 2017/18 to 2018/19.

The changes, which started being phased in on 6th April 2017, mean that landlords must now pay tax on turnover, rather than the difference between rental income and mortgage interest. Until April, landlords could deduct the full cost of their mortgage interest payments, or any other property finance, on their rental properties before they paid tax. Two months in, mortgage, loan and overdraft interest costs can no longer be considered in calculating taxable rental income. The changes will be phased in gradually over the next four years, and by 2020, 100% of buy-to-let finance costs will be restricted to the basic tax rate of only 20%.

The research also revealed that 20% of landlords will increase rents to help mitigate the cost of their new tax bill, meaning tenants could face a permanent increase in rent as a direct result of the changes.

James Davis, CEO and founder of Upad.co.uk, commented: “Despite the changes being gradually introduced over the next four years, our latest research shows already how out of pocket landlords are set to be by 2018/19 alone, as they see a big rise in their tax bills and a substantial hit to their profits. Those who are in the higher rate tax bracket of 40% will be the worst affected but others could find themselves being tipped into the higher tax bracket despite their income not having increased, which will leave many renting at a loss and subsidising their property every month.

“Rent rises are likely to be deeply unpopular with tenants so landlords will need to think about adding some cost-effective, tax deductible improvements to their properties that justify asking for an increase. For instance, by providing complimentary Wi-Fi, upgrading the appliances or giving the kitchen or bathroom a makeover.

“You may need to sell off some low-yielding property, reduce some of your mortgage payments or change the ownership of your portfolio to protect the profitability of your business. Options include setting up a company to buy property or if you already own a rental property as a private individual, you could transfer it to a limited company. Alternatively, if you own the property with a lower rate tax payer, you can transfer more of the rent to them to limit your overall tax bill. Another option could be to switch to fully furnished holiday lettings as these are exempt from the tax changes so you can still claim full mortgage interest tax relief.

“Landlords should also look at ways to negotiate with their letting agent and be vigilant to agents trying to increase their commission or other fees, as they look to flesh out their profits following the ban on tenancy fees. Landlords can minimise the impact of the tax changes through saving money spent on advertising and tenancy set-up by using an online letting agent like ourselves.”

source http://blog.evolutionproperties.co.uk/2017/05/29/landlords-taxable-profit-set-to-sharply-increase/

What is the ideal bedroom-bathroom ratio?

According to 70% of estate agents, a property should have two bathrooms for every three bedrooms to maximise its value and desirability.

The research from Direct Line Home Insurance conducted amongst real estate experts reveals that a three-bed home would ideally have an average of 1.8 bathrooms, a four-bed would have 2.6 and a five-bed property would have 3.5. The findings form part of the insurer’s study into the perfect bathroom: bedroom ratio for UK properties.

Across the UK, estate agents estimate that an extra bathroom would add 6.8% to the value of a standard three bed property, amounting to nearly £12,000. For a four-bed property, an extra bathroom is expected to increase the value of the property by 6.2%, equating to nearly £17,000 of added value.

Nearly three quarters of estate agents believe a three bedroomed home should have two or more bathrooms. The overwhelming majority of estate agents believe that four and five bedroomed properties need to have more than one bathroom, with more than two-fifths stating that a five bedroomed property should have at least three bathrooms.

On a regional basis, estate agents in Liverpool believe that there should be twice as many bathrooms per three-bed property than those in Cardiff (an average of 2.6 bathrooms vs 1.3 bathrooms). An extra bathroom is estimated to add the most value to three-bed properties in Nottingham (9.4%), while in Edinburgh it adds the lowest value (5.3%). An extra bathroom adds the most financial value to a property in London (£26,485) and the least to a property in Liverpool (£5,967).

With space at a premium in UK homes, 57% of estate agents believe that a shower room adds as much value to a property as a bathroom, especially among younger homeowners without children. An en-suite shower room is estimated to add 5.1% to the value of a property, worth £10,500. With the average cost of installing a new bathroom estimated at between £4,000 and £5,000, this represents a return on investment of around 200%.

Rebecca Clapham, head of household products at Direct Line, commented: “With space in such short supply in homes across the country and the cost of moving sky high, it is interesting to find out directly from the experts what homeowners can do to add value to their property. A new bathroom can add around £12,000 to the value of a home, which compared to the cost of fitting one, is a significant return and may be a good option for people wishing to improve their home but without the space to add an extra bedroom or improve their kitchen.

If having an extra bathroom, en-suite shower room or cloakroom fitted, make sure you use a qualified plumber. It can be tempting to try and do things yourself to save money but if you get it wrong, a dodgy plumbing job could end up costing much more if pipes burst and cause damage to your home.”

While extra bathrooms do add value to homes, the majority of estate agents reported that a new kitchen (86 per cent) or another bedroom (91 per cent) would actually be more desirable than a new bathroom.

source http://blog.evolutionproperties.co.uk/2017/05/28/what-is-the-ideal-bedroom-bathroom-ratio/

What is the UK's favourite property TV show?

According to a new survey conducted by My Home Move, Nick Knowles, host of the BBC’s DIY SOS, is the Nation’s favourite property TV presenter. The show was also voted as the Nation’s favourite property TV show.

The survey, conducted by the independent research agency Gorkana, asked 700 members of the British public to select their favourite property television show, presenter and dream ‘iconic’ home.

Nick Knowles, with his down-to-earth, cheeky-chappie presenting style, has presented DIY SOS since it first aired in 1999. The show, which often features emotional storylines, reached a record number of viewers in October 2015 for an episode in which Prince William and Prince Harry helped to build homes for veterans in Newton Heath.

The UK’s top 5 favourite property TV shows:

Show	Percentage of votes
DIY SOS	19%
Grand Designs	18%
Homes Under the Hammer	17%
Location, Location, Location	16%
Escape to the Country	9%

Doug Crawford, CEO of My Home Move, had this to say: “Property is a very British obsession, so naturally there are many programmes on our television dedicated to properties of all shapes and sizes. What the results show is that property is aspirational; whether it’s improving the properties that we own or building and buying the properties we dream about.”

As part of the survey, respondents were asked which iconic property would be their ideal home. The fictional estate of Downton Abbey came first place with 16% of the vote, followed by Dallas’ Southfork Ranch with 14% and Hogwarts School of Witchcraft and Wizardry (Harry Potter) with 13%.

Doug continued: “The properties the Nation has chosen as their dream homes are interesting, as they are all unique in their own ways. Home ownership and the type of property we own in the UK has typically been an indicator of social status; the bigger the property is, the more successful we are, so it’s no surprise that the Nation’s dream home is that of the Earl of Grantham.

Off-screen, home ownership is still a benchmark of success and an aspiration for many in the UK, however with rising prices and a lack of supply, many are struggling to make their dreams a reality. Our research has suggested that there are still those in their 50s and 60s who dream of owning their own home but are struggling to get onto the property ladder. There are also many that plan to be gifted a deposit or use government schemes to purchase their first home. If current market conditions continue to make it difficult for people to purchase their first property, it begs the question; is home ownership becoming a pipe dream?”

The UK’s top 5 favourite property TV show presenters:

Presenter	Percentage of votes
Nick Knowles (DIY SOS)	21%
Kevin McCloud (Grand Designs)	12%
Kirstie Allsopp (Location, Location, Location)	10%
Phil Spencer (Location, Location, Location)	10%
Martin Roberts (Homes Under the Hammer)	9%

Regional and age variations

Although Nick Knowles was voted as the favourite presenter in all regions with the exception of the South West, there was some regional variation in the shows themselves. Grand Designs proved to be the most popular across East Anglia, the East Midlands, Yorkshire and Humberside and Northern Ireland; Location, Location, Location was the most popular in Scotland and the South West and Homes Under the Hammer was the most popular show in the North East, North West and West Midlands.

When it came to the dream iconic property, there was a clear split dependant on age range. Hogwarts Schools of Witchcraft and Wizardry was the most popular amongst 18-44 year olds with 16% of the vote; Southfork Ranch was the most popular amongst 45-63 year olds, with 20% of the vote and Downton Abbey was most popular amongst the over 65s, with 24% of the vote.

Property Professionals

When the survey was conducted with Property Professionals (Conveyancing, Estate Agency and Financial Services professionals), the results were slightly different; Channel 4’s Grand Designs was chosen as their favourite show, along with the programmes presenter Kevin McCloud.

Doug said: “It is clear that the property community are looking for a different viewing experience when it comes to shows about their industry. Grand Designs is known for presenting new, innovative ways of building properties and is largely concerned with the finer details of how the build will come together. In contrast to Nick Knowles, Kevin McCloud’s style is almost tutorial in nature, helping the viewer through some of the more technical aspects of the show.

It seems that while the public prefers the ‘good-news’ story of people coming together to help those in needs, the industry recognises and uses the educational value of property shows. Either way, the Nation’s obsession with property continues to be reflected in the variety of property shows on our screens, and I am sure we will see more of them in the years to come.”

source http://blog.evolutionproperties.co.uk/2017/05/28/what-is-the-uks-favourite-property-tv-show/

Flat prices up over 50% since 2009

The latest research from Halifax has revealed that flat prices have grown by 53% in the last seven years compared with growth of 39% for all property types - typically rising an average of £1,008 per month from £159,292 in Q4 2009 to £243,936 in Q4 2016.

According to the data, the 53% increase in the average price of a flat is significantly greater than the 39% rise for all property types over the same period. Terraced homes have recorded the next largest increase in average prices with a rise of 43% over the past seven years, and detached homes the smallest rise (19%).

A considerable proportion of the national rise in flat prices since 2009 is due to the rapid increase in flat prices in London (65%), where flats represent just under half (48%) of all sales compared with the UK average (excluding London) of 11%. The average price of a flat in London is £398,038, meaning that buyers are on average paying £230,894 more than flat buyers in the rest of the UK (£167,144).

If London performance is excluded, price growth is greatest for terraced homes (41%), followed by flats (35%).

Regionally, flats have been the best performing property type since 2009 in five out of the 11 regions: North (31%), North West (37%), Yorkshire and the Humber (30%), South West (33%) and Scotland (21%). Terraced homes are the best performing property type in London (73%), East Anglia (46%) and East Midlands (35%). Semi-detached homes have increased the most in value in the East Midlands (35%), West Midlands (30%) and Wales (20%) and bungalows are the best performing property type in the South East (55%). (Table 3)

Six in 10 home sales are either terraced or semi-detached properties.

Terraced homes (30%) and semi-detached (30%) continue to be the most popular property types, representing 60% combined of all home sales in 2016. There have been some minor changes to this composition in the past seven years with terraced homes falling (32% to 30%) and semi-detached homes increasing slightly (29% to 30%).

Whilst terraced properties remain the most popular property type with first time buyers, the proportion of sales has fallen over the past seven years from 42% to 37%. In contrast, semi-detached properties have risen in popularity with first time buyers, accounting for 30% of purchases in 2016, up from 28% in 2009.

Terraced homes are the most affordable for buyers.

At an average price of £215,690, terraced homes are the most affordable property type in the UK, followed by semi-detached (£225,070) and then flats (£243,936). Outside London, however, flats are the most affordable (£167,144) followed by terraced (£185,116).

A typical terraced home costs less than £125,000 – below the lowest stamp duty threshold – in the North (£121,363) and Wales (£123,095) and less than £150,000 in all other regions outside southern England.

Flats cost less than £125,000, on average, in the North (£116,855), Yorkshire and the Humber (£124,734) and East Midlands (£123,561). Whilst average flat prices are lower than any other property type in London, at £398,038 they are considerably higher than flat prices anywhere else in the UK.

Martin Ellis, Halifax housing economist, said: “Nationally, terraced and semi-detached homes are the most affordable and popular homes with buyers accounting for 60% of sales during 2016. However average price growth for flats, helped by the London market, have outperformed all other property types since 2009.

There has been an increasing trend for first time buyers to choose semi-detached homes over the past seven years, whilst terraced homes have shown a decline in popularity. The rise in the age of a typical first time buyer may partly account for this change in preference towards the family-friendly semi.”

source http://blog.evolutionproperties.co.uk/2017/05/28/flat-prices-up-over-50-since-2009/

Where will be the UK's top property investment hotspots over the next 3 years?

The latest research from Barclays has provided a three-to-five year forecast of investment hotspots on the residential property market, revealing the areas across the UK where house prices and rental incomes are expected to rise.

The research uses factors including rental trends, employment levels and commuter behaviour as well as current house prices to create an index of property hotspots.

The research also surveyed high net worth investors from across the UK, to reveal where and why they plan to purchase property in the future.

According to the research, and despite an uncertain economic and political climate, the UK property market remains buoyant with prices in areas across the UK set to rise by an average of 6.1% by 2021, bringing the average value of a UK property to almost £300,000.

Northern property hotspots emerge

Over the next five years, high employment rates, growth in private housing market levels and an increase in rates of average earnings will contribute to rising property prices across the UK. The South is expected to see the largest annual property price increase over this period, however property investors are looking north of the property hubs of London and the South East for good value for money and income stability. Over a third (38%) of high net worth investors (HNWI) looking to purchase property in northern regions think that property prices are going to rise there, with over a quarter (27%) who plan to purchase citing strong rental income as a reason to invest there.

The Midlands has the fourth highest expected annual price increase in the UK at 1.22%, behind London, the East of England and the South East. Warwick in the West Midlands has emerged as one of the top 20 areas of highest growth, with an expected annual increase of 5.31%, driven by higher-than-average earning rates and the highest level of business start-up rates in the region. Scotland has the fifth highest expected annual price increase at 1.15%. East Renfrewshire makes the top 20 areas of highest growth with an expected annual increase of 4.37%, with its large proportion of highly qualified residents expected to drive up prices.

Millennials reap the rewards of property investment

The research reveals that younger HNWIs will be a key driver in the growth of the UK property market over the next three-to-five years. The millennial investors surveyed have 41% of their investment portfolio tied up in property, compared to 23% amongst those aged over 55.  They are also more bullish in their approach to investing in bricks and mortar with 75% intending to increase the percentage of their portfolio in property over the next three-to-five years, compared to just 10% of over 55s.

Millennial investors are also more likely to own more than one property, compared to over 55s, and are reaping the financial rewards of multiple property ownership with almost half (48%) of their annual income generated from rent. Those under 55 (18-54 year olds) who are planning to buy new property are more likely to take advantage of a buy-to-let mortgage product to fund future property purchases, 23% compared to just 7% of over 55s.

Buy-to-let investment on the rise

Investors are leaning on buy-to-let to fuel their property portfolios, despite the recent changes to buy-to-let tax. Higher value investors are seeking to maximise returns through property purchases, with nearly two-thirds (65%) of those looking to buy doing so for rental income. Sixty-two per cent of those with rental properties expect the proportion of the income they receive from rent to increase over the next three-to-five years, with half predicting it will rise by up to 20%.

Dena Brumpton, CEO, Wealth & Investments, Barclays, said: “It’s encouraging to see that property is still viewed as an important part of the investment portfolio with high net worth investors typically owning three properties and over a quarter planning to buy property because they believe that it offers long-term investment security.

There is also increasing confidence among property investors, as many are taking a long-term view when it comes to putting money into property. It’s also interesting to see from our research how investment prospects are emerging outside of the established property heartland of London and the South of England, with economic growth and employment opportunity fuelling growth in hotspots across the UK.

We are here to support our clients at various stages of their investment journey and we can help by offering a range of innovative and personalised mortgage solutions to meet their individual needs, whether they are a seasoned investor or a millennial looking to increase their income.”

source http://blog.evolutionproperties.co.uk/2017/05/28/where-will-be-the-uks-top-property-investment-hotspots-over-the-next-3-years/

Brexit fears drive investors to property sector according to new report

New research commissioned across over 1,100 nationwide investors by peer-to-peer lender Kuflink has revealed that traditional assets are providing much-needed investor comfort in a seismic year for British politics.

According to the research from the peer-to-peer lending platform, more than a third (34%) of the respondents – the equivalent of 10 million investors across the country – said that Britain’s decision to leave the European Union has drastically affected the way they manage their investment strategies.

This view was particularly prominent among investors aged between 18 and 34 and those in London, where the figure jumped to 61% and 71% respectively. Furthermore, Kuflink’s research showed that the uncertainty caused by the snap General Election is prompting greater caution among some investors; 38% of UK investors said that they would be waiting until after the upcoming election on 8 June 2017 to make any further investment decisions.

During this period of significant economic transformation, the survey also revealed that investors deem property investment to be safer. Almost two-fifths (38%) of the investors surveyed said that they are currently less inclined to pursue newer or lesser-known investment classes amidst uncertainty surrounding unfolding political and economic events – this equates to more than 11 million investors across the UK. Furthermore, 30% of the country’s investors (8.78 million people) stated that over the course of the 2017/18 financial year, they would be directing their attention to traditional asset classes such as property.

Tarlochan Garcha, CEO of Kuflink, commented on the findings: “The EU referendum has set in motion a number of political and economic shifts that are inevitably impacting the way the UK’s investors think and act. Today’s research has underlined the faith people place in property as an investment vehicle, with a huge number of investors gravitating towards this safe haven asset amidst the uncertainty caused by Brexit and the approaching General Election. There is undeniable investment value in retrospective data and historical evidence to support the strength of any investment class.

For this reason, I have great faith in the resilience and strength of the UK property market and take confidence in the fact that UK investors agree.”

source http://blog.evolutionproperties.co.uk/2017/05/22/brexit-fears-drive-investors-to-property-sector-according-to-new-report/

Average house prices hit new record high says Rightmove

The latest data released by Rightmove has revealed that the average price of property coming to market has hit a record high of £313,655.

According to Righmove, the rise of 1.1% over the month (£3,547) has pushed the national average to £313,655, exceeding the previous high of £310,471 set in June 2016. This has been driven by strong buyer demand, with the highest number of sales agreed at this time of year since 2007, before the credit crunch. While the run-up to an election creates a degree of uncertainty and often a pause in activity, this strong set of figures should help mitigate pre-election jitters.

Miles Shipside, Rightmove director and housing market analyst, said: “High buyer demand in most parts of the country has helped to propel the price of newly marketed property to record highs. There are signs of a strong spring market with the number of sales agreed achieved at this time of year being the highest since 2007. It remains to be seen what effect the run-up to the snap election will have, though any slowdown in activity will be counter-balanced by the market’s current fast pace. Indeed, in locations where choice of suitable property is limited hesitation could mean losing out to others who still decide to act.”

In the first-time buyer sector of two bedrooms or fewer we are seeing record prices and strong buyer activity, with a 6.5% annual rate of increase. However, this is tempered by a slower pace of increase further up the market, with an overall annual rate of increase of 2.2%, the lowest recorded since April 2013. This month’s 1.1% rise is also weaker than the average 1.6% spring-boosted surge of the last seven years.

Shipside notes: “Increasingly stretched buyer affordability will continue to be a price moderator for sellers who are over-ambitious with their pricing, tempering the pace of price rises. Strong buyer activity this month has led to 10% higher numbers of sales agreed than in the same period in 2016. This large year-on-year disparity should be viewed cautiously as the comparable timespan in 2016 saw a drop in buy-to-let activity with the additional second home stamp duty. However, they are also up by 3.8% when compared to 2015. With the growth in household numbers and new-build supply struggling to keep pace, demand is strong and has led to the highest sales agreed numbers at this time of year since the heady pre-credit-crunch levels.”

Russell Quirk, founder and CEO of eMoov.co.uk, commented: “Interesting that Rightmove should have observed no wobble in the market where asking prices are concerned, despite the industry indices based on sale completions stating otherwise.
This would suggest that UK buyers are still sitting tight despite a marginal cool in market demand and are yet to reduce their price expectations. Overall, the predominant air of confidence seen in the market over the last year from UK home sellers seems to be persisting and this, in turn, should see price growth stabilise.

The marginal decline in the average first-time buyer house price shows the toll an over inflated market has had on first rung buyers and sellers, although this is likely to be an influence from the rental sector.

Previously first-time buyers would get caught in a head to head price war with the aspiring and established buy to let landlords due to the similarity in the desired property stock between both. A battle they rarely won due to their inferior budget and property sale experience of those looking to invest for rental gain rather than as a first-time homeowner.

Although the buy to let market remains a lucrative one, the introduction of an additional 3% penalty on second homes and the reduction in tax relief in the buy to let market has deterred would-be landlords to some extent.

The additional budget they may previously have had to pip first-time buyers to the post is now consumed by the additional financial requirements, and so, the price wars that may have ensued and in turn inflated the average first-time buyer house price, are not as fierce or as frequent in the current market climate."

Jeremy Duncombe, Director, Legal & General Mortgage Club, had this to say: “A fairer and more equal Britain has been a key manifesto promise  from every political party. Restructuring our housing market will help make these sentiments a reality. The current imbalance between supply and demand is creating an exclusive home ownership club for those who are financially secure, whether it be via the Bank of Mum and Dad or through individual savings. Our housing market needs to be able to accommodate everyone and this will only be achievable if we tackle the root of the problem. Supply. Unsustainable house price rises will only be tempered by building more homes across a variety of tenures, over the whole of the UK.”

source http://blog.evolutionproperties.co.uk/2017/05/22/average-house-prices-hit-new-record-high-says-rightmove/

What are the top 5 tenant confessions?

New research from Lloyds Bank Business Insurance Services suggests that many small-scale private landlords forget that insuring a rental property is a very different kind of risk to insuring their own home.

Lloyds found that 25% of tenants have damaged their landlord’s property accidentally, while a 25% have caused blockages to sinks and toilets. Meanwhile, more than one in ten say they’ve failed to pay rent or bills, and a further 12% say they have smoked at their rented property, increasing the risk of fire and smoke damage.

Other things which landlords need to be aware of include tenants causing noise disturbance (10%), damage caused by pets (9%) and leaving the property unsecured and therefore at risk of burglary (6%). One in 20 (5%) say that their rental property has, in fact, been burgled while they’ve been living there.

The top five tenants’ confessions were:

1. Accidentally damaged the property    25%
2. Blocked the sink/toilet                         25%
3. Smoked inside the property                12%
4. Defaulted on rent/bills                         12%
5. Caused noise disturbance                  10%

The research also highlights the lengths tenants have gone to in order to hide their domestic mishaps and avoid losing their deposit money. Almost a third (31%) have cleaned the carpets themselves, more than a quarter (29%) have repainted the walls, and one in twenty (5%) have hired a professional cleaner to blitz the property from top to bottom.

Damien McGarrigle, Head of Business Insurance for Lloyds Banking Group, says: “The results highlight just how important it is for private landlords to have adequate landlord insurance which will protect them from a range of common problems, from break-ins and accidental damage to loss of rental income and plumbing issues.

We know many small scale private landlords with just one or two properties rely on regular home insurance to protect them, but this often falls short of covering the specific problems they could face.”

source http://blog.evolutionproperties.co.uk/2017/05/20/what-are-the-top-5-tenant-confessions/

What are the characteristics of a good landlord?

New research by landlord insurer Direct Line for Business debunks the myth that landlords and tenants don’t see eye to eye.

Over two thirds of landlords surveyed said they have a good relationship with their tenants, while 33% believe they are good friends. Only two per cent said they have a poor relationship with their renters, while 15% have no interaction at all, as all communication is handled by a management or lettings agent.

This positivity is reflected in landlords’ view of the buoyancy of the UK rental market. 76% of landlords’ state they feel confident they could fill their property without losing any rental yield should their existing tenants move out in the next six months. 27% of landlords are very confident there would be no void period if their current tenants moved out, meaning they wouldn’t lose any rental income.

Christina Dimitrov, Business Manager at Direct Line for Business, said: “The idea that landlords and tenants can’t get on is a fallacy, as many of these relationships are very positive and are often long lasting. Having a good relationship with your tenants is beneficial as they will be more likely to flag problems with the property quickly, enabling the landlord to arrange for a swift repair and therefore minimising inconvenience and expense for both parties.”

When it comes to the top three traits landlords are looking for in a good tenant paying the rent promptly (58%) is most important; followed by being respectful of the property and its contents (41%) and being clean and tidy (37%).  Signing long-term tenancy agreements (11%) and renewing contracts (8%) rank as far less important than the behaviour of a tenant during the rental period.

In comparison, research by Direct Line for Business reveals the characteristics tenants appreciate most in their landlord. The top qualities were the ability to respond to issues quickly soon after they arise (69%), asking for a reasonable rent, never unexpectedly or unfairly raising the rent (52%) and drawing up a fair tenancy agreement (37%).

Characteristics of a good landlord

Landlord characteristics	Percentage ranking trait as most important
Always responding to issues quickly soon after they arise	69 per cent
Asking for a reasonable rent and never unexpectedly or unfairly raising the rental amount	52 per cent
Drawing up a fair tenancy agreement	37 per cent
Easy to get in touch with	25 per cent
Being a member of an accredited landlord scheme, such as the National Landlord Association or Residential Landlords’ Association	22 per cent
Maintaining a nicely kept property with good furnishings and amenities	21 per cent
Being open to suggestions, such as allowing pets or replacing or upgrading furnishings or amenities	12 per cent
Giving me the freedom to add my own personal touch to the property	9 per cent
Keeping me up-to-date with any changes that may affect me or my lease	8 per cent

 Christina concluded: “Overall, the most important quality for landlords and tenants is the ability to be open, honest and fair. Maintaining a good relationship between renter and landlord is vital to a harmonious tenancy.”

source http://blog.evolutionproperties.co.uk/2017/05/18/what-are-the-characteristics-of-a-good-landlord/

So THIS is why online agents keep putting up their prices?

I was surfing on the Wayback Machine, looking for nostalgia.
In case you haven’t ever used it, the Wayback Machine is the archive of the internet. Head to web.archive.org and type in a website to see its old versions.
My personal favourite is Geocities. It was proof that the crowd definitely doesn’t have too much wisdom.
What quickly becomes apparent when looking at old websites is how the vast majority of estate agent websites look like they belong in the archives of the internet.
Considering how much time we spend online it seems incredible that estate agents invest so little in the online marketing or shop front.
This is one clear advantage the likes of Foxtons and online agents have over both independent agents across the country and the big corporate chains like Countrywide – one set genuinely invest in their websites. You can see the different iterations over the years.
With independent agents, you can see the same websites five and even ten years prior in some cases.
But there was something else that struck me while looking at websites of online/hybrid/new style agents: their fees have been subject to massive inflation.
While Purplebricks charge £849 for their base selling service (£1,199) in London, back in 2014 they were charging £599:
That’s a doubling of fees if you’re selling in London – they didn’t have different fees for London until the ‘Bruce brothers’ TV adverts started to appear.
If you think that’s inflationary, here’s a sampling of fees from others over the years:
Settled: Free (2014), £299 (2015), £399 (2016), £499 (2017)
easyProperty: £59.99 (2015), £475 (2016), £825 (2017)
Tepilo: Free (2013), £495 (2014), £495 (2017)
eMoov: £349 (2010), £295 (2012), £395 (2013), £595 (2015), £795 (2017)
How long will this trend continue? And at what point do online agents stop becoming all about fees?
Over the last year I’ve been using Monzo – a new online bank for my spending. And today I signed up for Starling Bank who have recently launched their current account.
It took me less than five minutes of security checks to receive an account number and sort code. Starling now have a video of me speaking to camera to help them verify who I am.
I went in to Santander recently. They knew who I was, but because I didn’t have ID on my person refused to serve me. It’s worth noting that it took them 17 days to open an account for me.
That’s 17 days of costs that Santander had to bear, just to take my money.
Most of the current crop of online agents do little more than list your property on Rightmove – that is after all their value proposition: get your property on Rightmove for less.
And that’s probably why we see a regular increase in fees: because Rightmove increase their fees to agents by approximately 20% per annum.
In contrast, the vast majority of independent and corporate chains operating on a commission basis have enough margin to conduct business without needing to take on endless amounts of investor capital.
You can guarantee Rightmove will increase their fees again this year. It’ll be interesting to see if online and hybrid agents are forced to follow suit.

source http://blog.evolutionproperties.co.uk/2017/05/15/so-this-is-why-online-agents-keep-putting-up-their-prices/

Supporting our local community

So, the day has finally arrived! I met with Andrea last year and discussed ways in which we can increase and continue our support of Furley Park Academy. We have, for a number of years now, provided the children's sports kits and they look amazing when they attend events, and regularly win as well! I wanted to support the school more so introduced a scheme to enable this to happen. In essence, any parent or guardian of a child at the school who sells a property through Evolution will be helping the school as we donate 25% of the pre-vat fee upon successful completion of the sale. It really is that simple! Andrea was talking to me today about an amazing play area project that they are looking to do so I am really keen to get as much fundraising carried out as possible.

Don't forget, if your thinking of selling, call us 1st to see why people keep recommending our services and at the same time, be part of your local community!

 

Do you have a local project that needs support? Maybe we can help! Contact us today!

#FurleyParkAcademy, #supportinglocalcommunity

source http://blog.evolutionproperties.co.uk/2017/05/12/supporting-our-local-community/

Who is top of the Premier League property price growth table?

Arsenal have had a torrid time in the Premier League during the later end of this season, and they’ve fared no better in the Premier League of property price growth, sitting rock bottom.

According to new research carried out by online estate agents HouseSimple.com, over the past 12 months in the towns and cities where the 20 Premier League clubs are based, Arsenal and Chelsea were the only Premier League teams that have seen average house prices in the area fall in the past year.

Average property prices in the Borough of Islington, where the Emirates Stadium, Arsenal’s ground, is located, have fallen 1.9% over the past 12 months. Chelsea, who are odds on to win the Premier League this season haven’t fared so when it comes to property prices, with average prices falling 1% over the past year.

However, average house prices in the borough of Hammersmith and Fulham, where Stamford Bridge is based, are still more than three quarters of a million pounds, more than any other Premier League location.

And what about Sunderland? They are already relegated from the Premier League, and when it comes to average property prices they are also sitting in the bottom three, with prices stagnating over the past year, growing just 1.1%

At the other end of the table, Burnley are the surprise package coming out on top for property price growth, with average prices rising 13.7% in 12 months, from £70,877 to £80,605. While Watford (12%) and Hull City (10.4%) also saw double digit house price growth over the past year.

 

Team

Average house price in the town/city (£) -2016

Average house price in the town/city  (£) – Current

Annual house price growth (%)

Burnley

70,877

80,605

13.7

Watford

322,316

360,858

12.0

Hull City

97,211

107,355

10.4

Tottenham Hotspur

512,198

562,564

9.8

Liverpool

115,933

125,862

8.6

AFC Bournemouth

218,015

235,962

8.2

Southampton

186,127

201,290

8.1

Manchester City

147,888

159,480

7.8

Manchester United

237,795

255,449

7.4

Everton

129,094

136,804

6.0

Leicester City

144,270

152,826

5.9

West Bromwich Albion

123,154

130,258

5.8

Crystal Palace

337,821

352,869

4.5

Middlesbrough

110,382

114,927

4.1

Stoke City

98,457

102,299

3.9

West Ham United

329,609

339,746

3.1

Swansea

134,301

135,816

1.1

Sunderland

108,349

109,529

1.1

Chelsea

773,193

771,882

-0.2

Arsenal

628,362

616,152

-1.9

 

Alex Gosling, CEO of online estate agents HouseSimple.com comments: “Whether you look at their position in the Premier League table or average house prices, it hasn’t been a great 12 months for Arsenal. While areas such as Burnley and Hull, where average house prices are some of the cheapest in the country, have seen impressive price growth since last season.”

source http://blog.evolutionproperties.co.uk/2017/05/10/who-is-top-of-the-premier-league-property-price-growth-table/

The race to secure a school catchment place for 2018 starts now

Schools may only just be heading towards the end of the current summer term, but now is the time to start thinking about a move in preparation for the September 2018 intake.

Moving into the catchment area of a good school is becoming more and more important for homebuyers, and something to start thinking about now if a particular school is in your sights for the 2018/19 academic year.

The advice from Nottingham Estate Agency and Harrison Murray Estate Agency (both part of The Nottingham) is to get ahead of the game before summer holidays kick in around mid-July.
Su Snaith, Head of Estate Agency, said: "It is increasingly the case that people move into the catchment area of their preferred school.

Although places have been allocated for this September's start, there may be parents whose children are starting school or moving to secondary school the following academic year. It may seem slightly odd to start thinking so far ahead when the schools have not even started the summer break yet.

However, with the deadline for school applications for 2018 admission just a few short months away, now's the perfect time to move into the catchment area for a preferred school to get the family settled before the process begins."

The deadline for secondary school applications in the UK for September 2018 is, in some cases, as early as this October.

Primary school applications for September 2018 close around mid-January next year.

source http://blog.evolutionproperties.co.uk/2017/05/10/the-race-to-secure-a-school-catchment-place-for-2018-starts-now/

How long does it really take to buy a house?

Recent research has revealed that property viewers take, on average, 27 minutes to decide whether to buy a property.

However, Linda Jeffcoat, from property search and acquisition experts,Stacks, had this to say: “While it may be accurate, this is a misleading figure. The time that has been invested in order to make that decision is considerable.

For buyers to find themselves in a strong decision-making position, our estimate is that they will have spent at least 80 hours, building up their knowledge and expertise.

A typical breakdown is:

10 hours - Conducting extensive online research

3 hours - Speaking to estate agents

15 hours - Driving around the country with kids and dogs, spending time in good and bad pubs, viewing the neighbours and the neighbourhood, generally familiarising yourself with the lie of the land

40 hours - Viewing 20 houses (the minimum we would recommend to place a buyer in a strong decision-making position)

16 hours - Sleepless nights (an inevitable part of house-hunting)

Total: 84 hours

Linda continues: "Some buyers will spend a great deal longer. The Internet is unquestionably responsible for a great deal of wasted time. One of the greatest dangers of portal-perving is that buyers tend to spend too long on the computer, and not enough time on the road. Property simply isn't a 'virtual' commodity. The impression you get from pictures and descriptions may vary dramatically from the real thing. So by all means start your search on the internet, but get on the phone, talk to the agents, and go and see as much property as you possibly can.

Buyers relying on the internet should also realise that the portals are way behind the market. Before you get an e-mail alert, you're behind the field. Buying agents will have seen the property, as will the proactive buyers who haven't relied on the portals for their intelligence. And some properties won't ever find their way onto the portals at all, their buyers preferring to keep a low profile and only show their properties to selected buyers.

There are many advantages to the portals. Some will tell you how long the property's been on the market, some will tell you whether the price has been reduced, and there's plenty of historical information and comparisons that you can delve into that will help you build up a picture of the local market. You can also establish which estate agents operate in a particular area.

But remember, portal research is only the tip of the iceberg when it comes to property search. It doesn't replace traditional methods, and if you're serious about buying, you will need to have good relationships with all the agents in the area. Or by using a search agent you can be sure you won't miss anything, and you'll also get to hear about property before it comes onto the market, or property that is never advertised in the press or on the portals.

So if you're serious about buying, get off the computer, onto the phone and into the car. Finding and buying is rarely a speedy process, but real time research will pay dividends.”

source http://blog.evolutionproperties.co.uk/2017/05/10/how-long-does-it-really-take-to-buy-a-house/

BTL rates are starting to rise

The latest report from Mortgages for Business has revealed that buy-to-let fixed rates rose in April across two, three and five-year terms with only five-year fixed rates faiing to return to their February averages, remaining 0.01% lower at 3.76% versus 3.77% in February.

This is the first month since January that the data has shown any rate increases, both among fixed and variable products.

Average rates for some terms had consistently fallen for even longer, particularly three-year fixed rates, which fell every month between April 2016 and March 2017. Across this period the average three-year fixed rate fell from 4.50%, to 3.53%, with each new month from June setting a new record low.
Although April brought increases in fixed rates, especially for shorter terms, no discernible pattern emerged among variable rate products. Five and two-year tracker rates increased by 0.02% and 0.12% respectively, but others continue to fall. Three-year variable rates fell 0.02%, while term product rates fell by 0.11%.

Steve Olejnik, COO of Mortgages for Business, said: “For some time now buy-to-let mortgage lenders have been cutting rates to maintain lending volume in a sector that has been actively targeted by both the taxman and the regulator. Rates can only fall so far, however, and figures from April suggest we may have

source http://blog.evolutionproperties.co.uk/2017/05/10/btl-rates-are-starting-to-rise/

Mortgage product numbers at highest level for 9 years

The latest analysis from Moneyfacts has revealed that residential mortgage product numbers have increased by 849 in just one year to reach its highest point since March 2008.

According to the data released, the number of products available on the market has increased from 3,611 in May 2016 to 4,460. However this figure remains well below the 6,192 products available in March 2008.

Moneyfacts stressed that the current mortgage market is "fundamentally a different place" compared to March 2008 when the number of products at 60% LTV stood at just 24 compared to 549 today. Conversely, back in 2008 there were 575 deals available at 95% LTV, whereas today there are 257.

Charlotte Nelson, Finance Expert at Moneyfacts, said: “This increase to product numbers is largely due to the amount of competition in the market. Lenders are currently faced with borrowers who lack the motivation to switch from their Standard Variable Rate, meaning providers could potentially lose a sizeable chunk of their mortgage book very quickly. This uncertainty means providers now have to remain on top of their game to ensure they look attractive when borrowers start to consider remortgaging.

Providers today do not only need to be price sensitive, but also offer borrowers a variety of features, to allow the customer to almost be able to tailor the mortgage to suit their needs. Given the multiple scenarios lenders now cater for, it is little wonder the market has seen product numbers shoot up.

When property prices were rising at an incredibly fast pace back in 2008, lending wasn’t based on risk. These figures show that we have moved to a more structured market, with the number of deals clearly sorted according to risk and borrowers now rewarded for having extra equity.

Alongside this, the Mortgage Market Review has stabilised the market, making lending more robust, meaning providers can now focus on the life of the mortgage rather than the short-termism of the past.

While the boost in product numbers can only be seen as a good thing, the more choice borrowers have, the more confusing it can be, so it is more important than ever that they seek advice to ensure they get the best deal for them.”

source http://blog.evolutionproperties.co.uk/2017/05/10/mortgage-product-numbers-at-highest-level-for-9-years/

Could the Tories kick-start a seaside town renaissance?

According to a new report by The Housing & Finance Institute, the Conservatives should put rent controls at the heart of their general election manifesto in a bid to kick-start a seaside town renaissance.

The study says a new ‘Fair Value Rents regime’ would repair damaged housing markets in coastal communities.

It calls for a three-pronged housing solution to reverse decades of decline in Britain’s seaside towns – and to tackle what it calls a “toxic trio of low home ownership, poor quality rental properties and a lack of job opportunities”.

Alongside new time limited and localised rent controls in the poorest coastal communities, the paper calls for a new ‘one-stop shop’ to make it easier for councils to take action against rogue landlords and drive up housing standards.

It also wants greater financial and skills support from central government for deprivation hotspots that have become ‘house building not-spots’ – places where housebuilders, developers and financiers don’t want to build and invest.

Natalie Elphicke, Chief Executive of The Housing & Finance Institute, commented: “There is a toxic trio of abnormally high proportions of rented housing, for that rented housing to be of poor quality, and a lack of job creation. Dysfunctional housing markets are proving fundamental to the spiral of decline in many of Britain’s coastal communities – and something radical must be done to turn the tide.

The proposals in this paper can help to break up the concentration of housing poverty and attract new high quality building and investment. Housing can be pivotal to securing jobs, growth and reversing entrenched deprivation.

In particularly, a new fair rents regime would significantly speed up the renewal of the most deprived areas, drive a fairer deal for tenants and taxpayers – and kick-start much needed regeneration.”

The Elphicke-House report, the major government housing review co-authored by now HFI chief executive Natalie Elphicke, found that every £1 spent on construction generates a further £2.09 on economic activity.

Figures from Home Group show that the total social benefits from effective regeneration can be greater still – up to £10 for every £1 spent.

The paper highlights Government findings that show nine out of ten of the most deprived smaller areas are by the sea. Rented housing in coastally deprived areas within Blackpool, Margate, Hastings and Jaywick sometimes exceeds 80 per cent of the entire housing market – and it is often expensive and of extremely poor quality.

It’s blueprint for fixing the housing market in these seaside towns, it says, will kick start investment, regeneration and a British coastal renaissance.

The Plan:

1. A Fair Value Rents Regime

Too often tenants and taxpayers alike overpay for housing which just isn’t worth the rent being charged. Too often rents are too high because they are underpinned by benefit rent allowances which are excessive for the location and quality of the property.

It is recommended that:

There is introduced a time limited local application of a fair value rents regime. This would set, by law, a locally assessed fair value rent for the property reflecting the location and quality of the property, within the existing local housing allowance (rent benefit) envelope.

Applying a modern fair value rents regime reflecting quality of condition and management of property could have the same economic effect for taxpayers and tenants of adjusting markets where rent levels are defective, and at the same time reward landlords who invest in better quality properties and appropriate management standards.

The renewal period would create a window to repair the most extreme economically dysfunctional housing markets where rental markets have warped and damaged ordinary capital values for homes.

2. New house building and housing investment to build local economic prosperity

When areas become ‘deprivation hot-spots’, they can become house building ‘not-spots’, places where traditional housebuilders and developers simply don’t want to build and traditional investors and financiers don’t want to invest.

However, there are experienced developers and regeneration experts as well as emerging social property fund investors who want to support house building and who want to improve private rented conditions in order to make the change in deprived areas.

It is recommended that:

There should be greater financial and skills support from central government and Homes England for councils who have communities with small local failed house building markets;

Activating new house building and attracting social property fund investors should itself be an ambition in such areas;

House building should be across all tenures in order to re-balance housing deprived communities;

The economic stimulus that construction can provide to provide apprenticeships, jobs and new business is directed to provide opportunities for deprived communities. This could include the location of new off-site construction factories in order to drive additional skills and local growth.

3. A One-Stop Shop for Housing Renewal Powers

There are a multitude of powers available to councils to take action to renew broken housing markets, to take action against rogue landlords and drive up housing standards. However, each of the powers are contained in different laws and regulations, require different processes and consultation and apply over different periods of time. Some of these powers date back more than four decades – reflecting a very different housing market and a very different type of local authority.  The result is a hotchpotch of mismatching powers which are complex, time consuming and expensive for councils to use.

It is recommended that:

A one-stop shop is created by extending housing renewal powers and providing guidance on what is permissible, and what is possible, in order to drive local renewal and growth.

The one-stop shop would provide a single and over-arching administrative process whereby councils can develop, consult on and then implement relevant powers and actions on housing quality, planning, new housing, growth and tenancy management within a specific housing renewal area.

Guidance is extended and updated on disposal of land, investment and borrowing powers.

Renewal councils are provided with greater flexibility to flex tenure, manage planning and hold property outside the Housing Revenue Accounts.

source http://blog.evolutionproperties.co.uk/2017/05/04/could-the-tories-kick-start-a-seaside-town-renaissance/

Buy-to-let investors using limited companies hits record high

Record numbers of buy-to-let property investors are using limited companies to secure finance to purchase property, according to industry statistics.

The latest figures have revealed that the proportion of homes to rent in the UK owned by a company landlord reached 20 per cent in the first quarter of 2017; the highest number since records began in 2010.

This is one of several ways in which investors have adapted to the recent changes within the sector, including the stamp duty hike introduced last year and the cuts to mortgage  tax relief which were implemented last month.

In some circumstances, buying a property as a limited company may result in savings, but this is not the case for all landlords. It depends on personal circumstances, income and the number of properties owned, so each case is different and investors should take advice on whether or not this is the best option for them.

The buy-to-let sector is in a period of transition and, while there are a lot of changes taking place, it’s also an exciting time for the market as it adapts and evolves. The current picture we’re seeing is one of long-term investors focusing on lower loan-to-values and using larger deposits for their purchases.

We are very much committed to growing our buy-to-let business and have a dedicated team in place who are experts in their field. They look at applications from all types of customers, including limited companies, and take a common sense approach to each lending decision, looking at the individual situation.

Our recent growth in this area is a clear indication of our success and we firmly believe that this will continue into the future, despite the challenges the sector has faced.

source http://blog.evolutionproperties.co.uk/2017/05/04/buy-to-let-investors-using-limited-companies-hits-record-high/

Builders of all sizes needed to "fix broken housing market"

The housing market is ruled by volume housebuilders and this dominance must be reduced to “help fix the broken housing market,” concludes a report from the Communities and Local Government Committee following an inquiry it launched last year into housebuilding capacity.

In its report, the committee calls for a more competitive housing market, claiming that the eight largest housebuilders build more than half of all new homes in the country. It urges the government to support SME builders and improve access to land and finance for them, as well as reduce risks for builders by providing planning permissions and infrastructure for sites.

The MPs of the committee suggest learning from the German model of financial support for SMEs, which uses a state-owned development bank offering low rates to customers.

The report also asks for increased building by local authorities and housing associations, which it says will help protect the industry against downturns.

And the committee would like to see the government more actively support modern methods of construction, including sponsoring a “single, recognised quality assurance mark to give lenders, builders and consumers confidence”.

The report also highlights the skills gap with the need for the government to produce solid proposals, particularly on improving further education paths into the construction industry.

Clive Betts MP, chair of the CLG Committee, said: "The housing market is broken, we are simply not building enough homes. Smaller builders are in decline and the sector is over reliant on an alarmingly small number of high volume developers.”

Stewart Baseley, HBF’s executive chairman, said that larger firms were generally better equipped to deal with the challenges of building and could spread risks.

But he added: “We fully support the committee’s call for measures to assist smaller builders, encourage new entrants and scale up specialist housing sectors, such as the retirement housing market.

“The vast majority of the big increases in housing supply in recent years have come from the larger, mainstream builders- but we need more builders of all sizes and specialisms if we are to tackle our acute housing shortage.”

source http://blog.evolutionproperties.co.uk/2017/05/04/builders-of-all-sizes-needed-to-fix-broken-housing-market/