Author Archives: Aspen Woolf UK

Buy-To-Let Market Buoyed By Low Rates And More

Posted on by Aspen Woolf UK

The latest facts and figures on buy-to-let properties show that things are once again on the up for this ever-popular investment option. With recent changes to mortgage legislation and remarkably low rates, many experts are speculating that this is a great time to get into the buy-to-let market.

So, with this in mind, let’s take a closer look at a few of the reasons why buy-to-let looks set to boom yet again.

Lower Fixed Rate Buy-to-Let Mortgages

low buy to let rates

Photo Credit: Simon Cunningham via Flickr

There has never been a better opportunity to get into the market with a fixed low rate mortgage. Lower rates have recently become more tempting for new investors, with five-year fixed rate buy-to-let mortgages available for as low as 3.29%. Two-year fixed rates are even lower; the best offers at present starting at just 2.09%.

It is worth looking out for the best available deals on a fixed rate buy-to-let mortgage as the number of offers for this type of mortgage has shot up rapidly in the past couple of years. According to Moneyfacts, there are now 83 different fixed-rate deals available for buy-to-let, compared to only 5 that were available just two years ago.

Higher Returns on Property Investment

property investment

Photo Credit: Jeff Djevdet via Flickr

Another good reason to invest is that the average rented property is now producing almost as much annual return as the average salary in the UK. The average buy-to-let property is returning £24,221 in capital gains and annual income, while the average British salary is around £25,000.

Return on investment in UK property is still on the rise too. Last year the total value of owned property in the UK stood at £990.7 billion, with an estimated total of annual return on property investments standing at £111.5 billion. This is an increase of 12.2% from 2000 and it means that the value of the property retail sector is now equal to almost half the value of the UK stock market.

In the longer term, there has been no better investment than property. Every £1,000 invested in 1996 was worth £14,897 by the end of 2014. This means that some landlords have seen a return of around 1400% in less than 20 years.

More Lenient Mortgage Lenders

home sweet home

Photo Credit: Diana Parkhouse via Flickr

The Financial Ombudsman found HSBC guilty of discrimination in a recent case after the bank turned down a mortgage application solely because of the applicant’s age.

The bank refused the application because one partner would have reached the age of 65 before the end of the mortgage term, but the FOS ruled that their decision relied upon untested assumptions, stereotypes and generalizations.

Lenders are therefore more willing now to accept mortgage applicants at any reasonable age. The maximum mortgage term is 35 years, but that length of term is still only likely to be offered to younger applicants.

Greater Demand Means Higher Rents

property investing

Photo Credit: Emma Brabrook via Flickr

There have always been good reasons to become a landlord, but there are even more now due to the significant growth in demand for properties to rent across the UK. Over the past year, 150,000 more households entered the private rental sector, increasing the market by £5.8 billion.

At present there are around 4.8 million properties being rented out, and it has been estimated that by 2020 the number of households living in rented accommodation will be 5.5 million.

As the demand for rented property has increased over the past 5 years, rents have also gone up rapidly. There was a rise of 3.7% between May 2014 and April 2015 with an overall increase of 15% since May 2010.

With demand and yields in the private rental sector being driven up by current economic conditions and banks becoming more lenient, it is easy to see why so many are choosing to enter into the property market with a low fixed rate buy-to-let mortgage.

If you liked this blog post then perhaps you would like to read our guide on how to buy a home?

Feature image credit: Flickr

What To Look Out For When Investing In Student Property

Posted on by Aspen Woolf UK

Investment in student property is potentially very profitable, but not all properties are suitable. It is important to know what to look out for with regard to location, market value, type of student accommodation, property management and rental guarantee.

Demand for student property is always highest when it’s in close proximity to a high-ranking university and in cities where there is more than one seat of learning available.

The Best Location

student property location

Photo Credit: Jeff Djevdet via Flickr

The location within such a university town or city is also an important consideration, and the best area will always be one that is the most convenient for students. This will generally be an area that provides good local amenities as well as being within easy reach of the main campus.

Most students prefer living in a central location where there is plenty of nightlife and good public transport connections to other parts of town – as well as to other parts of the country. Student properties on the outskirts of town can be harder to rent out and are generally not worth the investment.

Low or High Market Value

student property market value

Photo Credit: Howard Lake via Flickr

A student property with a low market value has less potential and will provide lower rental income. It is worth remembering that it is not possible for anyone to get a mortgage on any individual unit that is not self-contained, such as a bedsit or studio with a shared bathroom or kitchen, and you have to consider the impact this will have on your exit strategy.

Also, students today expect a higher standard of accommodation than they might have done in the past, so bigger and higher-quality properties are more in demand.

Family Home or Purpose-Built Accommodation

purpose built accomodation

Photo Credit: Wojtek Gurak via Flickr

A home with multiple occupants is known as an HMO (house in multiple occupation) and for some investors, a family house that can accommodate a number of students might be the most affordable prospect.

However, there are more benefits to be gained by owning a student property that has been purpose-built. The biggest benefit is that the return can be as much as 70% higher from a multiple-occupancy purpose built complex.

Investing in a purpose-built, multi-occupancy property makes it possible to get started as a property investor by purchasing one or more single self-contained units within a complex. The cost per unit will naturally be much lower than investing in a complete family home.

Many students prefer to be in purpose-built accommodation too. A typical modern-day student will not be prepared to accept low quality accommodation and they will want to be in a desirable location as mentioned previously.

Fully Managed Student Property

managed student property

Photo Credit: hackNY.org via Flickr

By purchasing a fully managed student property, you will reduce the amount of money and time spent in the future on repairs. A reputable management company will never take on a poor quality property. So, when you purchase one that is fully managed, you will need to check out the reputation of the management company before committing. If it is known to be reliable, you can generally consider it to be a good overall investment. Remember to weigh up the risks verses the rewards of investing in student property.

If the property management company is also responsible for other student properties and the property developer also has relevant experience in student accommodation, there is a better chance of having a stronger return on investment over the long-term.

Rental Guarantee Period

Some student housing developments come with a longer rental guarantee period than others. The length of a guaranteed return will be reflected in purchase price and the best deals will often offer two years or longer.

Taking these points into account while you are searching for the best investment option will stand you in good stead. Simple background checks and a little research will put you in a far better position than you would be to make a solid decision; one that will see you reaping the rewards from your investment for many years to come.

If you enjoyed this blog post then perhaps you would like to read “5 Mistakes Property Investors Make“?

Feature Image Credit: Flickr

Student Property Investment [Infographic]

Posted on by Aspen Woolf UK

With university applications at a record high this year, the appeal of studying and higher education in the UK, despite higher tuition fees, is stronger than ever. Coinciding with this, the total number of accepted applications is also at an all-time-high. From this information, it’s easy to conclude that the demand for student property is skyrocketing; making student property one of the hottest forms of investment on the UK market today.

A major factor in the need for student property is the incredible number of international students that come to study in the UK each year. Currently, we are the number one host country in the world for international students, who in total contribute a stunning £10 billion to our economy each year. It’s clear to see that if the right investments are made and the correct business decisions are made, there are huge opportunities for financial success in this sector.

Are you interested in property investment? If you haven’t considered investing in student property before then check out our extensive Student Property Investment Infographic below to find out the most essential statistics on the growth of university applications and the ensuing demand for student property investment!

 

aspen-woolf-student-property

5 Mistakes Property Investors Make

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5 Mistakes Rookie Property Investors Make

Property investment can be fraught with pitfalls for those just starting out with property investment.

In this article we take a look at the most common pitfalls so you can avoid them.

It is important to note that there isn’t always a guaranteed formula for success in any kind of financial investment. However, there is certainly an almost foolproof plan to avoid making significant and unnecessary mistakes when investing in property.

To help prospective investors avoid these potholes, we’ve compiled a list of the 5 most ill-informed, amatuer and ultimately easy mistakes that property investors make.

It is true that many opportunities for reward don’t come without their risks.. However, our list below aims to help minimise the risks associated with actions and choices made in property investment.

We identify the nature of the mistakes and explaining why they are detrimental to both your finances and investment portfolio.

Whether you’re already an investor, considering a career in property investment or just interested in finding out more, check out our list of the 5 rookie mistakes below.

1. Not Doing Your Homework

Research is absolutely vital for any kind of professional and/or financial investment.

Many rookie property investors will enter the market without sufficient thinking, and get caught up in all the excitement and make bad decisions.

Frequently they end up buying a property with no background research having been undertaken.

Failing to do your background research is a very common mistake. Points to research include:

  • average rental yields for an area
  • the rate that prices are going up in the area
  • average time taken to let property in the area
  • crime rates and other adverse factors within the area

However, background research starts before considering your first investment property.

Read books, relevant blogs and any material that will expand your knowledge. Do you know what a section 21 notice is? How and when to serve them to a tenant? This is the type of thing a would-be property investor needs to learn about first.

Once you have your background knowledge in place it is time to the move on to researching your opportunities.

Research the area and the type of property you’re looking at. What the market rates are and the average profit yield (short and long-term). This will enable you to make forecasts and predictions on your investment.

2. Home Bittersweet Home – Looking for a Dream House

Picking a property based on your own taste is a common beginner’s mistake.

This is a frequently made mistake in the property investment industry, but one we can all relate to.

When we view a house, car or even visit a restaurant, most of us automatically form a personal opinion on it in relation to our preferences, conveniences and tastes.

However, when buying property to then let out you can end up missing out on a great investment purely because you couldn’t envisage yourself or your family living there.

With investment property it is not your own tastes you are buying for.

For example, you might only want a property with space to park your car(s). However if your target market is students most of them will not drive. A lack of parking may be no issue at all to tenants who predominantly walk or use a bicycle as their main mode of travel.

When it comes to interior decoration, you may be put off a property because it isn’t your favourite shade of purple. In actual fact, neutrality and an overall cream/white presentation is the best thing to go for when trying to appeal to the mainstream tenant market.

After all, a blank canvas can allow an imagination to blossom and decorate the home in their own style preemptively, as opposed to being dissuaded by a finished project built in another’s own image.

3. Love Thy Neighbour (with a pinch of salt)

Picking a good tenant is very important.

Get references and select the tenant based on business decisions. A good example is whether they have good credit rather than whether they seem to be a nice person.

I know this sounds painfully obvious, but it’s easy to rent your property to someone you’ve enjoyed talking to over someone you didn’t.

In general you should avoid building a close rapport as this can lead to a perceived lack of authority. Over friendliness can lead the tenant to pay rent late and never expect a rent increase due to the sacred code of “mate’s rates”. Things could also get awkward if you eventually decide that they need evicting! All unneeded, unnecessary stress.

Trust in others is also important because you shouldn’t find yourself…

4. Going Solo

Make sure you have a good team around you.

Even after years of research in the property investment market, it’s important to realise that you aren’t going to be able to do it all by yourself (despite how much you’ve learnt).

As with nearly every successful business model, you’re going to need a reliable and trustworthy team around you that can perform their roles to a very high standard.

If you can’t afford to hire a team at your beck and call, you should look to find information and establish a professional network of contacts.

These can include a letting agent, a home inspector, a closing attorney and a financial backer; both for your own deals and to assist with financing for prospective buyers.

Arguably, the most important occupation to acquire is a property manager. They generally won’t affect your budget too much and they provide a deduction on tax payments.

Property managers can be utilised through a delegation of many tasks, including sorting out maintenance, paying the bills on your behalf and preparing your monthly and financial end of year accounts.

Acquiring a property manager can save you an abundance of priceless time which you can instead use to research more properties and find your next big deal!

Our final pitfall that many rookie property investors don’t even realise they’re falling into is:

5. Not Keeping Good Options Open – Overlooking Opportunities Outside The Biggest Cities

It’s safe to say that you will need to look outside of your comfort zone, however most investors will ONLY look in big cities for properties due to the high demand from professionals and students looking to live there (not to mention that international students put over £10 billion into the UK economy each year).

Sure, there’s still good money to be made in the likes of London and Manchester.

However, focusing all your time and efforts on a small cluster of highly-competitive cities is a slightly rigid blueprint in the present day when other cities are growing all the time and aren’t yet saturated with swarms of new property investors.

For example, Leeds is the latest city to become regarded as an affluent metropolis of scholars, students and businessmen.

Use the knowledge you’ve acquired of your local area to see if there’s any potential property goldmines (near higher education facilities, low-crime rate, beautiful scenery, good value properties) that haven’t yet been tapped into by the swarms of seasoned property investors.

Of course it’s not advisable to only look locally, but you shouldn’t limit yourself to the main illustrious cities that you can count on one hand; do your research and get a good team around you to help you find the property, in the right location, and at the right time.

Look to Spain for Bargain Properties

Posted on by Aspen Woolf UK

Thinking of buying a home in the sun? Look to Spain for bargain properties as housing crisis comes to an end say experts

Prices of homes on the Mediterranean coast rose 0.2 per cent in March

First increase since January 2008 – since when average values across that region have fallen by 48%

Bargains galore: Zoopla advertising four-bedroom townhouse in Almeria for £19k

After what seems an eternity, it’s over. No, I’m not referring to the General Election, but the long-running Spanish housing crash.

‘After seven years of consecutive declines we’re starting to see signs that Spanish house prices have bottomed out, and even started to rise in some segments,’ says Mark Stucklin, the Barcelona-based British editor of Spanish Property Insight, a website for buyers.

Tinsa, a Spanish valuation service, says prices of homes on the Mediterranean coast rose 0.2 per cent in March – the first increase since January 2008, since when average values across that region have fallen by an extraordinary 48 per cent.

Spanish property - Mallorcan coast
Sunny forecast: The Spanish economy is picking up so consider investing in an apartment such as these on the Mallorcan coast

That’s not all. Spanish house building is finally under control, with planning applications for new homes just 4 per cent of the level in the boom days of 2006.

Spanish banks, which once had a million repossessed homes, now have a reasonable 120,000. All that is translating into buyers returning to find a dream home in the sun.

There are bargains galore. Zoopla is advertising a four-bedroom townhouse in Almeria for £19,200. A two-bedroom apartment in an Alicante city block, complete with communal rooftop pool, can be yours for £25,100.

Even the high-end estate agents such as Savills and Chestertons are now selling new flats on the Costa Blanca for well under £120,000 each.

Agents say most British buyers are particularly attracted to the Costa del Sol thanks to 20 flights daily from the UK to Malaga.

Spanish property - Alicante, Las Brisas de Alenda
Bargains: 3 bedroom, 2 storey townhouses in this new development in Alicante, Las Brisas de Alenda, go for £105,604 through Savills

Coastal properties in established resorts and developments are selling for just £40,000, while high-end purchasers look at the cities – especially Valencia and Barcelona – and favourites like Mallorca and Menorca.

And experts are confident this upturn will last, with some buyers making commitments not just for get-rich-quick new-build schemes, but serious restoration work.

‘In prime areas, we see a substantial increase in older homes bought for refurbishment or total renovation,’ says Michael Corry-Reid of Aylesford International, an agency with offices in Spain.

But be careful if you need a loan to buy your villa, flat or finca. The Spanish mortgage system is stricter than the UK’s and particularly hard on self-employed borrowers.

‘An option may be to extend the mortgage against your UK property and use the money to buy in Spain,’ says Miranda John, international manager at broker SPF Private Clients.

As always in Spain, care must be taken over tax and legal issues. Agents advise buyers to use only experienced lawyers and not to sign documents in a language they do not understand.

Allow 10 per cent of the purchase cost for property tax, notary and land registry bills and the cost of switching on utilities. On new-build homes, you may have to pay VAT, too.

But the holiday home dream could be back.

Original article written by Graham Norwood for Daily Mail

Investing In Student Property in Leeds

Posted on by Aspen Woolf UK

A Guide to Investing In Student Property in Leeds

Our guide to student property in Leeds aims to give prospective investors an insight into the fantastic opportunities available in this constantly evolving part of West Yorkshire. We’ll take a look at the local area and its economic development, as well as exploring why the many opportunities for further education in Leeds are capable of attracting students from all over the world. Let’s jump straight in.

Leeds at a glance

The West Yorkshire city of Leeds has seen some dramatic changes over recent years. The former mill town has developed into a buzzing cultural hub and the youthful urban scene is a major contributing factor to the city’s growing popularity with students.

With a population in excess of 750,000, Leeds is the third largest city in the UK and it boasts the fourth largest urban economy, trailing only to London, Manchester and Birmingham.

Transport links to the city are good too. Leeds Bradford International Airport is a mere 7 miles northwest of the city centre and the road network includes M62/M621 for easy access to Manchester in the west and Hull in the east. The M1 can be picked up south of the city too, conveniently connecting this part of West Yorkshire with The South.

Local economy

One of the biggest changes the city has seen over recent years is the driving force behind its economy. Once predominantly a manufacturing city, Leeds has now flipped over to become a largely service-based economy. The financial and services industry was reported to be worth £2.1 billion back in 2011 and with around 150 law firms in the city, Leeds is now widely regarded as having a legal market second only to London.

Banking is another huge player in the overall economy of the city. Leeds has over 30 national and international banks based within its boundaries, many of which are extremely large operations. First Direct, for instance, has its headquarters here.

Despite the dramatic change from manufacturing to the service sector, Leeds is remarkably still the third largest manufacturing centre in the United Kingdom. Around 1,800 manufacturing firms are based within the city, employing in excess of 39,000 workers (just under 9% of the entire city’s workforce); however many of the traditional industries, such as wool mills and iron foundries, have now been replaced by modern businesses. Amongst the biggest in the area are chemical and medical technology providers, printing and publishing houses and many companies from the food and drinks industry.

Retail is another huge contributor to the city’s economy. Several large shopping centres can now be found in and around Leeds and it is thought that the figure for those working in retail is now well over 40,000. However, 75% of those in the retail sector are no longer based in the city centre itself; further proof of the changing economic landscape of the region and the country as a whole.

Urban regeneration

Leeds has changed beyond all recognition over the last 30 years or so. Many of the formerly rundown areas of the city are now pristine and they’re attracting young professionals in their droves. Thanks to the changing face of the economic sectors driving the city’s growth, Leeds now has a new dynamic that is bringing in (and retaining) some of the United Kingdom’s brightest talent.

Areas such as the banks of the Leeds-Liverpool canal have been transformed, with many new properties adorning the towpath alongside fabulous renovated warehouse dwellings. City professionals are now able to live within a stone’s throw of their offices, and the knock-on effect to other properties in the area has been positive.

Proposed developments

Leeds City Council has put forward plans to change the housing landscape of the region over the coming decade. The city’s current housing shortage is expected to worsen over the next few years as demand grows at an unprecedented rate.

The proposals, which were made in early 2015, would see an additional 66,000 homes built in the city by 2028 – an investment that would certainly benefit the city as a whole. However, many of the proposed locations have been seen as controversial and have even been met with resistance from some quarters.

If the proposals do go through, further investment in the local infrastructure is expected to follow. The prospect of new schools, transport links and improved healthcare facilities could see demand rise further still in the city.

Why choose to invest in Leeds?

As one of the three points that make up the ‘Golden Triangle of The North’ or ‘Betty’s Triangle’ (named after the famous tearooms) as the locals affectionately refer to it, Leeds is an investor’s paradise.

Thanks to the booming financial district, Leeds has become an extremely affluent city. Corporate giants such as RBS and Direct Line have boosted the West Yorkshire city’s economy no end and they’ve created a buzz that has attracted canny investors from this country and abroad.

Much of the renowned Golden Triangle’s (with Harrogate and York being the other points) property portfolio performed very well during the economic downturn. In fact, many properties saw an increase in value when the rest of the country was struggling to maintain theirs.

Where other towns and cities in the north rely heavily on attracting tourists to boost the local economy, Leeds’ wealth is predominantly home-grown. As more and more companies like Asda Walmart, Capita and First Direct choose to base their headquarters there, so the talent pool grows. Even the Bank of England has its second office here!

Alongside this is a growing international airport that connects the city to America, Europe and North Africa, as well as great road and rail links to the rest of the United Kingdom. Proposals have also been made to build a HS2 station as part of a massive regeneration project that will see Leeds South Bank completely transformed.

Investing in Leeds is an opportunity not to be missed. The city’s educational facilities rival many of the countries other seats of learning and the burgeoning economy looks set to retain many graduates once they complete their degrees. This increase in talent can only push Leeds’ already thriving city economy further forward over the coming years.

The city’s seats of learning

Leeds boasts three universities as well as many other institutions offering further education to those from the city and beyond. In fact, the student population of the city is ever growing and a good percentage of those studying in Leeds are foreign students – prime candidates for the rental market.

To get a better feel for the city’s educational landscape, let’s take a look at the three universities in a little more depth:

University of Leeds

The University of Leeds is the largest of the three in terms of student numbers. Over 30,000 people study here, making it the eighth largest university in the UK with respect to those who pass through its doors each year.

Situated within walking distance of Leeds city station and the city centre, this university has students from all over the world within its community. Former students have come from 186 different countries across the globe and there are currently 146 different nationalities studying here.

Students are not the only ones to benefit from the University of Leeds’ existence. The local community is helped out by around 2,000 student volunteers and it is estimated that £1.23 billion is pumped into the local economy each and every year. There is also an additional £211 million spent by students per year on rent and living costs.

The University of Leeds has an extremely proactive student union with over 250 clubs and societies in operation. They are also the only student union in the country to have received two gold standard awards for the Students’ Union Evaluation Initiative.

Leeds Beckett University

The second largest university in Leeds, Beckett has two campuses; one located in the city centre and the other in nearby Headingley. Formerly known as Leeds Metropolitan University and Leeds Polytechnic, Leeds Beckett has over 28,000 students on its books and is a major contributor to the local economy.

An estimated £477 million is contributed year on year from the university into the economy and they employ around 2,900 members of staff. Just as with the University of Leeds, students travel from far and wide to take their place and there are currently students from almost 100 different countries studying a vast array of subjects.

The university has an outstanding success rate too for those who have studied there. A survey undertaken by Destination of Leavers from Higher Education (DLHE) showed that 95.5% of UK postgraduates were either in work or higher education six months after leaving the university.

Leeds Trinity University

Based in Horsforth, Leeds Trinity University is the smallest of the three universities by quite a margin. Nevertheless, with only 3,000 students, Leeds Trinity punches above its weight in terms of success and satisfaction.

The Sunday Times ranked Leeds Trinity in the top 10% UK institutions for teaching excellence and the overall satisfaction of students is high at 86%, above the national average.

Leeds Trinity has recently stated that they aim to deliver growth in the amount of foreign students that they serve by establishing international partnerships with other like-minded institutions across the globe.

With so much interest in the city’s educational facilities, it’s little wonder that the student property market is seeing such impressive returns on investment.

Student life: Why Leeds is so popular

As we’ve already touched on, Leeds is on the up. The city has shed its once dour image and is fast becoming one of the UK’s cultural hotspots. Couple this with the fantastic further education opportunities on offer and it’s easy to see why students are choosing Leeds over many of the other major university cities in Britain.

Let’s take a look at some of the reasons why students are making Leeds their first choice:

Things to do

With its rich and long established heritage, Leeds is an amazing place to live. For those with a passion for a little retail therapy it’s hard to beat, and many regard Leeds as one of the finest shopping cities in the north of England. Shopping centres are plentiful, but there is also a large community of independent traders with vintage stores and tiny boutiques popping up across the city.

Food is another draw. Forget the chain restaurants (although they’re all here), once again it’s the independents that steal the show. Cafes and small family run restaurants have some incredible edibles to keep even the most ardent foodie happy.

Leeds also has a good selection of cinemas too; from mainstream blockbuster screeners through to more low-key productions shown at the very highly regarded Hyde Park Picture House – there’s something for everyone here.

For those looking for a sportier way to pass the time, Leeds doesn’t disappoint. With plenty of places to play and watch all manner of sports (the football and rugby teams being particularly famous), students can fill their time easily in and around the city.

After dark

Naturally, students are going to flock to a city with fantastic nightlife and Leeds certainly provides that. As with the many daytime activities, the nightlife in the West Yorkshire city is eclectic and interesting. Chain establishments sit side-by-side with quirky bars and clubs, making Leeds one of the finest cities in the UK for a night out.

Live music has a great scene here too. As well as being the joint host of the annual “Reading and Leeds festival”, Leeds also boasts the O2 Academy (just off Millennium Square). To cap it off, Leeds is home to a multitude of smaller music venues that give the city the diversity so many students crave.

The Best Areas To Invest In Student Property In The UK

Posted on by Aspen Woolf UK

Anyone who has been paying attention to the property investment market over the last decade will be able to wax lyrical about the benefits of investing in student property over a standard buy-to-let arrangement. However, something new is happening. Nowadays it’s not just hardened property investors who are looking towards student digs as a potential goldmine – others are catching up too.

Demand is high

With an expected yield of anywhere between six and ten percent, this shouldn’t really come as a surprise. Money savvy people are always on the lookout for the next big thing and the only real shock is that it has taken many of them so long to cotton on to what’s going on here.

Student property investment is now a huge business and it has, over the last three years alone, become a £2 billion industry in the UK. With the government lifting the cap on the amount of students any given university can take on from 2015/16, this figure is surely set to increase significantly over the coming years too.

In August of 2014, just shy of 400,000 students booked their place into a UK university. This record-breaking figure was in large part thanks to the the abolition of capping student numbers when the government introduced 30,000 new places across the country.

However, many analysts predict that this number is likely to be dwarfed when the cap is lifted fully. Some are forecasting an additional 60,000 students will become part of the system, but UCAS (Universities and Colleges Admissions Service) revealed in February that they have, in fact, received 600,000 applications for university places – a jump of over 200,000.

International students are among the new recruits

Another additional piece of good news for those in the student accommodation market is the surge in foreign students taking up full-time education in the United Kingdom. A recent report (Universities UK Patterns and Trends in UK Higher Education) showed that student numbers from non-EU countries has increased dramatically over the last 10 years; 59% more students from these countries are now studying here, the findings said. This increased demand can only be good for investors, and many local councils are placing student accommodation at the core of their planning policies.

Further pressure on an existing problem

The housing shortage in the UK is already causing headaches for the powers that be. Predictions for the coming few years will not ease their pain either, with some experts forecasting that there will be a shortfall in excess of over one million residential homes by 2022.

These reports are likely to work in the investors favour too. Councils are now expected to place a cap on the conversion of residential properties into student accommodation in an attempt to slow down the ever-increasing shortfall.

Does this mean that all student property is worth investing in?

The short answer to this is a resounding ‘No’. As with any property investment, student accommodation still requires a certain amount of planning and research. As corny as it may now sound, location, location, location is still a huge factor in determining whether or not your investment is likely to be a sound one.

This is where the UK based investor holds the trump card. The vast majority of the student property market is awash with overseas investment and their money is predominantly focused on the major cities: London, Birmingham, Liverpool and Manchester, for example.

The main problem of investing in the bigger UK cities is that because of the overseas investment many of the prices have become inflated. Sure, you’ll still see a return as the market audience is so saturated, but sometimes one of the more overlooked student destinations may be more profitable. While there are still undoubtedly good investments to be made in the big cities, purely because of where they are and their stability, there are often better opportunities for those with a little more local knowledge.

So, where should I be looking?

Well, first of all, consider places that you know intimately. If you have a feel for a place already, why look elsewhere? Concentrating on areas where you have a greater knowledge than outside investors can often turn up some unexpected bargains. If you already live in a university town, take the time to do a bit of digging and you may be pleasantly surprised with what you come up with.

For those who are looking for a starting point for their research, we have compiled a top ten for you here. Yes, a couple of the big cities previously mentioned make the cut, but that shouldn’t stop you from investigating places that overseas money has yet to reach.

Without further ado, let’s take a look at some of the hottest destinations for student accommodation investment opportunities available today:

Coventry

With an average headcount of over 35,000 students per year making use of Coventry’s higher education facilities, this city offers a growing opportunity for investors.

Leeds

Once the manufacturing hub of Britain, Leeds is now home to an ever-growing financial district that is currently booming. However, there are still bargains to be had here and regeneration of key areas is likely to see house prices rise over the coming years.

Glasgow

Scotland’s largest city has mysteriously remained relatively untouched by overseas investment up until now so if you do your homework you could be on to a winner here. A lot of graduates are starting to stay in the city meaning that the feel of the place is getting younger and more vibrant, making Glasgow a magnet to future students.

Nottingham

If you want to talk about location, Nottingham takes some beating. Pretty much slap-bang in the middle of England and close to the M1 for access both north and south, Nottingham attracts students from all over the UK.

Oxford

Property prices in Oxford are through the roof, but that doesn’t mean that this world famous university city should be completely disregarded. This is generally down to the fact that rental prices are well in line with property prices, in many cases a decent 6%+ yield can still be made here.

Leicester
Leicester offers possibly the best value university city dwellings available in the UK today. Reasonable prices coupled with high demand means that with a little homework and research, you could find yourself a very decent deal indeed. However, it’s worth bearing in mind that the yield is likely to be lower here thanks to the overall prices in the area.

Reading

Not far from the nation’s capital is Reading, and there are still some great deals to be had here. The University of Reading is growing in popularity and the town is also home to a campus of the University of West London, so demand in the area is good.

York

Part of the ‘Golden Triangle of The North’ along with Leeds and Harrogate, York is seen as up-and-coming in the eyes of many investors. Recent expansion to the university and the already brilliant transport infrastructure make this city one to look out for.

London

The capital was always going to make the top ten, regardless of how much money has already been poured into it. London just oozes stability and even through the recent downturn, house price remained pretty much rock-steady. Plus, if ever there was a draw for overseas students, London is it.

Manchester

Another of the big boys makes the cut and, again, it’s hardly surprising. Manchester is home to over 50,000 students and demand for accommodation is often ridiculously high.

There you have it, a top ten of the best areas in the UK to invest in when it comes to student property. Keep in mind the cap being lifted in 2015/16, and if you look out for universities that are currently undergoing expansions, or making plans to at least, you might just be able to find yourself a decent investment for the future.

Guide: How to Buy a Home

Posted on by Aspen Woolf UK

How to buy a home: Let us guide you through the pitfalls

More than one in six people don’t know the process, says survey by Manchester property law specialist Slater and Gordon

For sale Signs

Do you know what ‘gazumping’ means? Or stamp duty, or mortgage deeds? More than one in six hadn’t a clue on buying a home in a survey of 2,000 people by Manchester property law specialist Slater and Gordon.

Samantha Blackburn, a lawyer at the firm, said: “It’s vital that buyers, especially first-time buyers, know their rights and have a basic understanding of the legal process.

“Buying a home can be confusing, time consuming and expensive. Misunderstanding the process and not getting the correct legal advice can not only delay a sale, lead to increased costs for the buyer and also potential issues in the future.”

Step-by-step guide on how to buy a home

Work out what you can afford

Don’t forget to factor in costs of the purchase including solicitor and surveyor fees, mortgage fees and stamp duty.

Work on the general basis that you will need 10pc of the total purchase price as a deposit; 5pc if you’re using the government’s Help To Buy scheme.

If you’re buying a leasehold property, such as a flat, remember that you may have to pay a ground rent and service charge for upkeep of your apartment block, or development.

For sale signs

Apply for a Mortgage Agreement in Principle

A lender, such a bank or building society, will take some basic information and perform a credit search and credit score. They will then come up with a figure that ‘in principle’ they are willing to lend. Your property search can now begin!

Find your dream home and make an offer

Once your offer is accepted you will need to make a mortgage application and appoint a conveyancer. A conveyancer is a specialist in property law who will act on your behalf during the buying process.

House-keys

Get the property surveyed

The type of survey you choose will depend on the type and age of the property as well as your lender’s requirements. A HomeBuyer Report is a survey suitable for conventional properties in reasonable condition. Costs start at £400 on average

A Building or Full-strucutural Survey is the most comprehensive survey and is suitable for all residential properties, particularly older homes or homes of non-standard construction. This type of survey typically costs upwards of £600 and provides detailed advice on repairs.

Your conveyancer will then take over the sale and carry out searches on the property. The conveyancer will get the draft contract prepared by the seller’s solicitors and raise enquiries with the seller’s solicitors.

Sign and exchange contracts

When all issues around the property are resolved, your conveyancer will ask you to sign a pack of documents which will include the contract for sale, transfer, stamp duty land tax return and where applicable mortgage deed. When the buyer’s and the seller’s solicitors hold contracts signed by their clients and the parties have agreed a date for completion of the sale contracts will then be exchanged.

At exchange of contracts, the sale becomes legally binding and the deposit must be paid.

housemove1

Completion. Congratulations! You’ve got the keys

Completion of the purchase usually takes place about four weeks after exchange of contracts, although it can be earlier. This is when the mortgage lender releases the money and the transfer of the property is completed.

Once the transfer is dated, the buyer’s solicitor will then attend to submitting the Stamp Duty Land Tax return. The buyer will then be listed on the Land Registry.

What is Stamp Duty?

It’s a lump-sum tax that anyone buying a property or land costing more than a set amount has to pay. The rate depends on the price

Up to £125,000: Zero

The next £125,000 (the portion from £125,001 to £250,000):2%

The next £675,000 (the portion from £250,001 to £925,000):5%

The next £575,000 (the portion from £925,001 to £1.5 million):10%

The remaining amount (the portion above £1.5 million):12%

Jargon-buster

Gazumping – Gazumping occurs when a seller accepts an oral offer on the property from one potential buyer, but then accepts a higher offer from someone else

Chain – This is where people may have to wait for others to sell buy or sell their current house before they move

Contract – A legally-binding document that states the details of the house sale or purchase

Deed – A formal document stating the owner of the property and who it is being transferred to. This is also known as conveyancing

Stamp duty – A tax the government charges sales of residential property over £125,000.

Survey – This is a report on the current physical state of the property you buying to ensure that there are no serious defects to the house.

housesale1

Some top tips

Frazer Fearnhead, chief executive of The House Crowd, a property crowd-funding platform based in Hale, says: “Whether you’re a first-time buyer or someone looking to make a financial investment, you must do your research.

“Make sure you pay the right price and get the property surveyed. If everyone involved is sensible, there’s not a lot can go wrong. Be careful your solicitor doesn’t gloss over anything. Believe me, a lot do. If you have good, thorough solicitor they will check everything out about the property.

“There are lots of things which could be wrong with it or onerous charges you weren’t aware of. Or people might have a right of way across your land – these are all factors your solicitor should find out.

frazer fearnhead

Frazer Fearnhead: You must do your research

“You’ll also need a good surveyor to carry out a home buyer’s survey. People often get caught out when buying flats. Quite often, they haven’t considered how expensive service charges can be.

“You also need to make an allowance for any increase in interest rates. Another tip is to make sure you visit the property at different times of the day. Talk to people who live nearby and neighbours to see what the area is like.”

Original Article written by Charlotte Dobson from manchestereveningnews.co.uk

Will The 2015 Election Affect Property Investors?

Posted on by Aspen Woolf UK

How Will the Results of the Election Affect Property Investors?

The uncertainty over who would win the General Election resulted in a lot of speculation in the property investment sector.

In their respective manifestos the main parties had each made a range of pledges relating to the property sector and rental property in particular. We take a look at what the implications of the result will have on property investors.

One of the main issues that has had investors worried in recent months, has been the potential tax implications which could come with new administration. However, now that the Conservatives have managed to gain a majority vote, it has provided a much needed boost to property investors. So how will a conservative government benefit the property industry?

Say goodbye to Mansion Tax

The uncertainty of this year’s election caused house prices in prime London areas to drop by 0.5%. Stamp duty has played a large part in the drop, along with the fear of increased taxes being placed upon property after the election. However, now the Conservatives have won the vote, there has been a surge in International Investors looking to get back onto the UK’s property market.

While Prime Minister David Cameron does agree that council tax and stamp duty are acceptable, he has previously expressed his desire to eliminate Mansion Tax. As reported by The Telegraph, in 2013 while speaking on the BBC’s Andrew Marr show, Mr Cameron insisted that his government would not punish those who generated wealth. He stated: “I think wealth tax is not sensible for a country that wants to attract wealth creation, wants to reward saving and people who work hard and do the right thing.” He also went on to say if he was elected in 2015, Mansion Tax wouldn’t be introduced. Estate agents have already started to receive interest from high-end property investors who are rejoicing now they won’t have to pay Mansion Tax on homes valued at over £2 million.

First time investors also set to benefit

Another promise made by Mr Cameron is to have an additional 200,000 starter homes built by 2020. They will also be constructing additional garden cities along with an extra 400,000 units created from brownfield land. The opportunity for investment is rife and the proposed 20% discount on the additional starter homes for first time buyers is set to encourage younger people onto the property ladder. Whilst not all of them will be interested in property investment, it will certainly entice young buy to let investors interested in getting into the property investment sector.

No Rent Cap brings welcome relief

Rental caps have been a pretty hot topic over the course of the election. The labour party was a particular fan of introducing a cap on rent. However, not everybody welcomed this potential cap, including property investors.

If the cap was put in place, it would deter investors from buying properties to let. It would even have likely caused some investors to sell their existing properties. This would in turn lead to a crash in the number of rental homes available. This would be detrimental to the UK’s housing market as private renting has increased by a dramatic 1.2 million since 2009. Over the same period, the number of homeowners seeking mortgages has declined by almost 800,000.

While some argue the cap on rents would have benefitted the sector, it is no doubt welcome news for property investors that it won’t be going ahead.

10,000 Additional homes to be introduced into the private rented sector

While rental properties haven’t played a huge part in the Conservative’s election campaign, they have stated they aim to provide 10,000 additional houses into the private rented sector.

Could house prices be pushed up?

The Conservative’s victory has mostly benefited the property investment sector, but there is one potential worry investors have. Now that Mansion Tax and rental caps won’t be an issue, there is a fear that house prices will rise further. This has caused many investors to try rush through their applications so they can avoid any potential increase. There is certainly the chance that house prices could shoot up; especially over the next few months.

If you are a property investor, the result of the 2015 election is definitely welcome news. Could this be the year that the housing market starts to properly recover? Only time will tell but the Conservatives have made some interesting promises that will attract both international and national investors.

11 Facts About Liverpool

Posted on by Aspen Woolf UK

Psst… Do you know Liverpool?

You know, a lot of people don’t actually know that much about Liverpool, besides the obvious fact that The Beatles comes from there. And that’s such a terrible shame for such a beautiful city! We think it’s about time someone actually pointed out some interesting facts about Liverpool. Here are 11 things you most likely never even knew about the city that brought us one of the greatest music groups in world history.

11 Facts About Liverpool

1. Is a World Heritage Site

Liverpool’s waterfront is a designated World Heritage Site. That puts it on par with the Taj Mahal and the Great Wall of China!

The accolade was granted by UNESCO in July 2004. The city’s bid was centred on Liverpool as a Maritime Mercantile city and reflected the city’s significance as a commercial port at the time of Britain’s greatest global influence.

The World Heritage Site stretches along the waterfront from Albert Dock, through The Pier Head and up to Stanley Dock, and up through the historic commercial districts and the RopeWalks area to St George’s Quarter, which is dominated by the magnificent St George’s Hall.

11 Facts About Liverpool

2. Has more museums and galleries than anywhere outside London

Liverpool has one of the most impressive collections of museums in Europe.

Opened in 2011 in a landmark waterfront building, the Museum of Liverpool is the UK’s first museum dedicated to the history of a city. Visitors can explore how Liverpool’s port, its people and its creative, industrial and sporting history have shaped the city.

Many museums and galleries are located around the Albert Dock, such as the Merseyside Maritime Museum and International Slavery Museum, where you can find out all about the companies, people and ships connected to this port city.

St George’s Quarter, close to Lime Street station, is home to World Museum, where you can discover treasures from around the world, meet live creatures and explore outer space.

Tate Liverpool needs no introduction – it stages major international exhibitions of modern art, featuring work by everyone from Tracey Emin to Picasso.

Open Eye Gallery is an independent not-for-profit photography gallery championing photography as an art form and staging challenging and entertaining exhibitions.

11 Facts About Liverpool

3. Has the most amount of Grade II-listed buildings outside London

Liverpool has the largest collection of Grade II-listed buildings outside London. The city has 2,500 listed buildings and 250 public monuments.

11 Facts About Liverpool

4. Had the world’s first passenger railway line

The world’s first passenger railway line was built in 1830, from Liverpool to nearby Manchester. A local member of Parliament was killed soon after, in the first ever railway accident.

11 Facts About Liverpool

5. Had the first lending library, school of tropical medicine, and school for the blind

Liverpool was the first city in the world to have a lending library, a school of tropical medicine and an American consul. It was the first UK city to have a school for the blind!

11 Facts About Liverpool

6. Is a filming industry hotspot

Liverpool has a thriving film industry. Films that have been shot there include The Hunt For Red October, The 51st State, The Parole Officer and Letter To Brezhnev. The city was used as a location for more than 140 films last year and has doubled for Moscow, Dublin, Paris and even Venice.

11 Facts About Liverpool

7. Holds the Guinness Book of Records title for being the Capital of Pop

Now this is almost too obvious to even mention… but heck, it needs to be said! Liverpool holds the Guinness Book of Records title for being the Capital of Pop. More artists with a Liverpool origin have had a number one hit than from any other location. And of course, Liverpudlian legends The Beatles changed the face of popular music.

11 Facts About Liverpool

8. Most successful footballing city in all of England

Liverpool is the most successful footballing city in England, home to both Liverpool and Everton. It has won 27 League championships, five European Cups, three Uefa Cups, one Cup Winners cup, 11 FA Cups, and six League Cups.

11 Facts About Liverpool

9. Was once the “Second City of Empire”

The city of Liverpool was created in 1207 when King John granted a Royal Charter which was written in Latin. Liverpool was once the “Second City of Empire”, eclipsing even London for commerce at times.

11 Facts About Liverpool

10. Was the European Capital of Culture in 2008

The European Capital of Culture is a city designated by the European Union for a period of one calendar year during which it organises a series of cultural events with a strong European dimension. Liverpool beat five other hopefuls – Bristol, Birmingham, Cardiff, Newcastle-Gateshead and Oxford – to win the coveted prize.

11 Facts About Liverpool

11. Is the 5th most popular destination for international visitors

Liverpool in 2013 was the 5th most popular destination for international visitors with 562,000 staying visits up from 550,000 in 2012. And 5th most visited English destination for British domestic visitors (1.68m overnight visits).

It was 6th for pure holiday trips (703,000) in 2012 and 6th for business tourism (289,000)!

Liverpool welcomes approximately £58 million visitors per year, and the tourist industry therefore supports 48,600 jobs. Its popularity is thought to be due to The Beatles, its extensive maritime history, its flourishing art scene and its exceptional leisure facilities, such as Liverpool One.

Liverpool is one of the world’s most distinctive and creative cities. From its stunning World Heritage waterfront to its vibrant culture, stylish shops and restaurants, it’s a city with a unique spirit and personality. It’s a city that even Londoners are leaving the capital for, so why not enjoy some hot Scouse and take in everything this fabulous city has to offer!

Enjoyed this post? Why not check out our post about 11 Facts About Leeds as well!

This Article was written by Harri Laitalainen, a property investment fanatic, marketing professional, and Liverpool fan.