Building Solutions (Midlands) Blog » UK landlords

Harder to profit from buy to let?

Richard — Thu, 29 Jul 2010 18:54:56 +0000

With nearly a million people facing cuts to their housing benefits many buy to let landlords will be facing the usual issues with collecting rent from tenants who have little or no funds. There are many in the property sector that feel this could lead to a two tear system. With the lower end of the rental market becoming poor quality and the possible gettoisation of some areas with a high percentage of let properties.

How to buy houses below market value

Richard — Sun, 25 Jul 2010 15:38:45 +0000

There are several ways to obtain houses below market value, but most methods require a high amount of time and commitment. They range from courting your local estate agent through to attending all the local property auctions. There are some companies that can provide portfolio building and source below market value properties. Some of these companies have suffered in recent times as their operations have become hampered by the recent drought in the buy to let mortgage lending’s markets. If you do chose to invest in below market property in the Midlands, Derby, Stoke-on-Trent, Belper, Ripley, Heanor, of Alfreton and the surrounding areas. There is one company with over 12years trading history and an enviable network of contacts within this area. ambervalleyhomes

Buy below market property

Richard — Sat, 24 Jul 2010 13:45:18 +0000

If you are looking for great property investments one of your main concerns will be getting your new investment property below market value. This way you have a head start compared with many other landlords and property investors in your area. There are several companies that can assist you in building property portfolios and help you find property below market value. It is always a sensible idea to go for a company with a well proven track record and a good trading history. If you are looking for a company to help you with your property investment strategies in the Midlands, we recommend Amber Valley Homes, with 12years of property trading experience they are always please to help new investors with sound advice. ambervalleyhomes

Good news for commercial landlords as High Court rules that some company voluntary arrangements are unfair.

Richard — Fri, 23 Jul 2010 18:37:24 +0000

A recent high profile court case has given many commercial property owners and managers a feeling that justice has been done. Landlords have long complained that company voluntary arrangements and pre-pack agreements are becoming a refinancing tool rather than a last resort. Retailers in particular have been accused by some in the property sector of using this type of legislation to circum vent lease agreements and pass some of their problems on to landlords. Some administrators have been accused of losing their sense of fail play over the use of company voluntary agreements and pre-pack companies. This recent court ruling will at least set some clearer frame work for retailers and landlords who find themselves in these unfortunate circumstances.

Landlords require more powers of influence over Insolvency practitioner’s charges?

Richard — Fri, 02 Jul 2010 10:01:35 +0000

There has been much debate in recent times that is tougher times. That the number of insolvencies has increased. Landlords have been concerned that insolvency practitioner’s fees may be high in comparison with similar fees required by secured lenders in the recovery of assets. Landlords who are often unsecured creditors are at a disadvantage in comparison with Banks who have a direct charge on a director’s home or other assets. So it may be that further regulation will appear in these more challenging financial times to assist landlords in debt recovery.

Increase in VAT gives the renovation and construction industry a temporary boost.

Richard — Thu, 01 Jul 2010 07:34:25 +0000

The planned rise in VAT will make many developers bring work forward to avoid another 2.5% extra renovation or build costs that they have not planned into their development appraisals. There is no VAT on new build properties so the new build development sector will remain unaffected. The other budget change that few have really given much thought is the capping of housing benefit. This will have an immediate affect of the purchasing behavior of landlords. They will now be very careful when considering adding properties to their portfolio that have high rents as the government has capped weekly rents. Those who hold this type of property will be looking to switch to professional tenants and move from those tenants on housing benefits. This will add further pressure to the private rented sector, and give more reasons for those accidental landlords to off load their investment properties. It appears that the world of the professional landlord is out of vogue and will be left to the hardcore that manage and repair their portfolios and keep expenditure to the minimum.

Making higher profits from buy to let?

Richard — Tue, 29 Jun 2010 09:47:25 +0000

Landlords and property investors are set to make higher profit margins as rents are rising and a shortage of suitable rental properties are coming to market.
The current increases in rents achieved are in complete contrast to the final quarter of last year as rents showed no increase back in 2009. Results from the Royal Institute of Charted Surveyors show their surveyors as optimistic about the future for rents. They reported the highest level of optimism for rising rents since the start of the survey in 1998. The increase in rents is driven by a direct decline in the number of properties available to let. With sound economic principles behind the increases in rental costs there appears little doubt that rents are and will continue to rise for the foreseeable future.
These statistics come at a time when many accidental landlords are choosing to leave the market as they have seen a recent rally in capital values. The demand for rental property also appears to be on the increase which coupled with less rental housing stock is a sure sign that rents will continue their upward course.
With the first signs of a freeze in the buy to let lending market starting to turn to a thaw and rents raising this is the best time for landlords for years! The banking and property finance market always follows a similar course. When things go bad the banks panic and stop lending, then they start to gradually lend to the “safest bets”, top earning domestic mortgages and low loan to value mortgages. With a marked increase in the number and type of buy to let mortgage products available, it bodes well for other sectors in the property sector. The next area that should receive positive news after the buy to let lending has recovered is the commercial property market. With time, better deals will make the commercial property market again a better proposition for property investors. Then that most interesting of all property sectors the world of speculative property development. This area of the property market has been brought to its knee’s by the worst lending drought for decades. This sector has been out of vogue with lenders and partly blamed for the financial crisis. It is true that speculative property development did play its part in the financial crisis. You only need to look at the volume of available property for sale in Spain. The whole country is crippled by a huge over supply of new build properties, with many experts in the European property market expecting fire sales and some real bargains as lending and reality bite.

Letting agencies and private landlords no longer face registration.

Richard — Sun, 13 Jun 2010 19:10:56 +0000

The new government is continuing with the cull of red tape, as it scraps the introduction of registration for landlords and regulation of letting agents. The plans described as well meaning but ill conceived have now been abandoned.
The scheme would have proved costly and ultimately any costs to landlords will eventually filter through to tenants. The government is also thought to be reviewing labors recent legislation aimed at stopping “studentification”, or the spread of “student ghettos”. The new laws made it necessary for property developers or landlords to apply for planning permission to turn their properties into H.M.O’s (houses in multiple occupation.

Investors could be set to make cash quickly form distressed property sales

Richard — Tue, 08 Jun 2010 11:47:52 +0000

Top property professionals being surveyed who are expecting to see an increase in distressed property sales has increased. The number expecting to see more distressed property sales has increased form 14 percent to 42 percent.
Interestingly there are institutional investors looking to benefit from the large property loan books that are currently burdening many banks accounts. The increase in activity amongst investment funds that specialise in purchasing, re-financing and managing property investment portfolios has also increased as they look to take advantage of the increase in distressed property sales. There have been some positive news from the property market over the previous twelve months but recent government announcements have cause struggling property owners to give up while the going is still good. They are not prepared to risk a further drop in this ever popular asset class, so are they making the right decisions? What will happen to the property sector over the next twelve months? Leave your comments?

Surge in new instructions to estate agents good news for builders?

Richard — Tue, 01 Jun 2010 19:18:57 +0000

It is a well know fact that there is a lot of home improvements made when home owners buy or sell a house so builders should welcome the massive 35% leap in home owners and property investors looking to off load their homes or investments. The sudden increase in new instructions in estate agents windows and rightmove listings has in part been driven by those waiting to see what the election would bring. The other more obvious and recent market driver has been the scrapping of that most unpopular of all recent legislation the Home information pack.
With sellers no longer facing a £500 bill just to try their property on the market many are far more tempted to “have a go”. The recent announcements regarding capital gains tax has also seen some buy to let investors looking to crystalise their property gains before they are affected by the proposed changes to capital gains tax.