Property Rental Market Update
2011 has proved a good year for the rental market. Firstly, lenders have started to realise buy to let investors are typically a ‘safe bet' when it comes to lending money and secondly, tenant demand is on the increase, meaning lower voids and rents have started to recover and in some cases overtake the heights achieved in September 2008. Much of the media's headlines about rent rises have however given an inaccurate picture as they compare year on year rents which ignore the fact that rents fell between 5% and 20% throughout 2009 due to excess rental stock from accidental landlords.
Current Rental Market Performance
Rental Market Outlook for 2012
Thursday, 12 January 2012
Monday, 9 January 2012
Implications of the FSA Mortgage Changes for the Housing Market
The UK Housing Market
The changes to the market are unlikely to have much impact in the short term as currently mortgage lending criteria is pretty much sticking to similar rules as the FSA intend to impose.
The main impact will really take place when the economy and the market is likely to start recovering. Normally during a recovery, lending criteria will be relaxed a little as house prices start to rise rather than fall and lenders feel more secure in approving mortgage loans.
FIND OUT HERE what the implications are for you!
The changes to the market are unlikely to have much impact in the short term as currently mortgage lending criteria is pretty much sticking to similar rules as the FSA intend to impose.
The main impact will really take place when the economy and the market is likely to start recovering. Normally during a recovery, lending criteria will be relaxed a little as house prices start to rise rather than fall and lenders feel more secure in approving mortgage loans.
FIND OUT HERE what the implications are for you!
Friday, 6 January 2012
Mortgage Changes
To Get a Mortgage
The Financial Services Authority has just announced the latest round of suggestions to reform the mortgage market to try and make sure that the boom and bust in the housing market of 2000-2007 doesn't hit the UK economy again.
The first round didn't go well and suggested that there were going to be no self certification mortgages (where proof of income is not required). It also suggested an end to interest only mortgages. Not allowing lenders this flexibility would have very much put major restrictions on lenders to lend, meaning less buyers would have the finance to buy now and into the future.
READ HERE for the FSA's latest suggestions
The Financial Services Authority has just announced the latest round of suggestions to reform the mortgage market to try and make sure that the boom and bust in the housing market of 2000-2007 doesn't hit the UK economy again.
The first round didn't go well and suggested that there were going to be no self certification mortgages (where proof of income is not required). It also suggested an end to interest only mortgages. Not allowing lenders this flexibility would have very much put major restrictions on lenders to lend, meaning less buyers would have the finance to buy now and into the future.
READ HERE for the FSA's latest suggestions
Thursday, 5 January 2012
Revised London Housing Strategy
Mayor Publishes Revised Housing Strategy for London
According to a recent press release by the Greater London Authority, the Mayor of London has recently published a draft revised London Housing Strategy for consultation with the public. The 12 week consultation period runs out on 6th March 2012.
Since the first strategy was published in the early part of 2010 a number of reviews have taken place, with a number of areas having been identified where change is needed. In August 2011, the Mayor's initial proposals for this new strategy were published for consultation with the London Assembly and GLA Group.
READ ON for full details of the Revised Strategy
According to a recent press release by the Greater London Authority, the Mayor of London has recently published a draft revised London Housing Strategy for consultation with the public. The 12 week consultation period runs out on 6th March 2012.
Since the first strategy was published in the early part of 2010 a number of reviews have taken place, with a number of areas having been identified where change is needed. In August 2011, the Mayor's initial proposals for this new strategy were published for consultation with the London Assembly and GLA Group.
READ ON for full details of the Revised Strategy
Thursday, 8 December 2011
Empty Housing
Empty Housing
Through many Government schemes, each political party always states their claim that they are going to bring back empty homes to habitable condition for the neighbourhood. The coalition government is no exception and has just announced that community and voluntary organisations will now be able to bid for Government funding.
The Government also claim this scheme could provide "excellent training opportunities for local people". For example, Youthbuild in Harrogate - the charity purchases empty homes for refurbishment by trainees under the guidance of a mentor. The refurbished properties are rented out to the trainees. This provides employment, training and affordable housing, while also giving young people a long term stake in the local area.
READ ON for more information on 'Council Tax premium' on empty homes
Through many Government schemes, each political party always states their claim that they are going to bring back empty homes to habitable condition for the neighbourhood. The coalition government is no exception and has just announced that community and voluntary organisations will now be able to bid for Government funding.
The Government also claim this scheme could provide "excellent training opportunities for local people". For example, Youthbuild in Harrogate - the charity purchases empty homes for refurbishment by trainees under the guidance of a mentor. The refurbished properties are rented out to the trainees. This provides employment, training and affordable housing, while also giving young people a long term stake in the local area.
READ ON for more information on 'Council Tax premium' on empty homes
Wednesday, 7 December 2011
Property Market in the UK v's Heights of 2007
Property Market in the UK v's Heights of 2007
Whatever is happening statistically month on month and year on year, it's important to be aware we are still a long way away from a housing market recovery versus the heights of 2007, apart from some areas in London. Prices remain at least 10% down versus pre credit crunch levels. More importantly the number of people moving is not increasing at all. In fact we are selling up to 60% less homes than pre credit crunch. Building of new homes also remains devastatingly low at just 100,000 homes a year when experts suggest that to accommodate newly formed households, we should be building over 250,000 homes.
READ MORE to find out more about the Private Rental Sector and First Time Buyers
Whatever is happening statistically month on month and year on year, it's important to be aware we are still a long way away from a housing market recovery versus the heights of 2007, apart from some areas in London. Prices remain at least 10% down versus pre credit crunch levels. More importantly the number of people moving is not increasing at all. In fact we are selling up to 60% less homes than pre credit crunch. Building of new homes also remains devastatingly low at just 100,000 homes a year when experts suggest that to accommodate newly formed households, we should be building over 250,000 homes.
READ MORE to find out more about the Private Rental Sector and First Time Buyers
Tuesday, 6 December 2011
What to do if you are a Landlord
What to do if you are a Landlord
If you are a landlord, it is vital to make sure you maximise your rental income. Rents are not likely to continue to increase massively on-going. Rents are typically linked to wages and net income, and as this is being squeezed so much and with a pending recession on the way, there is already evidence that tenants can ‘only pay so much'.
Many landlords tend to try and skimp and save on keeping their property up to date, but this is usually a false economy. Tenants of today are not looking for somewhere cheap to rent for a short period of time, they are looking for a home to rent for some time to come.
READ MORE to find out how to get the best rental price for your property.
If you are a landlord, it is vital to make sure you maximise your rental income. Rents are not likely to continue to increase massively on-going. Rents are typically linked to wages and net income, and as this is being squeezed so much and with a pending recession on the way, there is already evidence that tenants can ‘only pay so much'.
Many landlords tend to try and skimp and save on keeping their property up to date, but this is usually a false economy. Tenants of today are not looking for somewhere cheap to rent for a short period of time, they are looking for a home to rent for some time to come.
READ MORE to find out how to get the best rental price for your property.
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