Redevelopment of Liverpool’s Eldon Grove Has Finally Begun

After 16 years of neglect, redevelopment of the Eldon Grove tenements in Liverpool’s Vauxhall has finally begun.

A major boost to the surrounding area, new blocks of luxury flats will be constructed on the site alongside refurbishment of the historic building itself.

Work starting on the site has been a long time coming with the initial planning application submitted in late 2015. Liverpool City Council only approved the proposal in December 2016, allowing designers JGLT Developments to make a start on their regeneration plans.

History of Eldon Grove

Eldon Grove was a council development opened in 1912 by the Countess of Derby, Alice Stanley. The buildings consisted of three blocks, originally used as labourers’ dwellings to home local workers.

Historians note Eldon Grove would have been the most modernised accommodation of its time, particularly as they incorporated baths with hot water taps. With balcony access, they are also deemed to be one of the oldest examples of council flats outside London.

Eldon Grove community playing soccer

As time moved on, the building was converted into student housing but eventually fell out of use. With previous regeneration projects falling through, Eldon Grove was abandoned and became completely derelict.

Being the last remaining original-style, timber frame tenement in Liverpool, the historic site was given Grade II listed status in 1993. This has lead Victorian Society supporters to campaign against construction work, particularly as the new surrounding flats will obstruct its view.

Need for Repair

The Eldonian Company, who are responsible for Eldonian Village and Vauxhall regeneration schemes, have been working with JGLT on the project. Their representative, Paul Foster, was left in no doubt over the building’s need for urgent attention. He told councillors:

“You’ll have seen this morning that Eldon Grove is in a terrible state, dilapidated and on the point of becoming unrepairable… These buildings will not survive another winter.”

“Eldon Grove has been derelict for 20 years now and has become an eyesore to the community. If it doesn’t get redeveloped shortly this Grade II listed building will be beyond repair.”

“We really do think this is the last chance for this building.

Eldon Grove as it looks down before redevelopment starts to create luxurious flats perfect for investment.

Image credit: SPDP via Flickr

This appeal was successful and after Liverpool council’s approval late last year, both developers and locals alike are eager to see the completed project.

Development Plans

As well as restoring the Eldon Grove building to its past glory, the multi-million pound project will see new flats erected on the premises. This will include five blocks of one and two bedroom apartments, as well as New York style duplex penthouses.

In total, this will create 84 new luxury rooms, with further plans to revamp the surrounding space with landscape gardens.

The New Eldon Grove

A representative of the Eldonian Company commented on the developments:

“It will look stunning and will kick start the regeneration of L3 again, increasing house prices and making the area a nicer place to live – being very close to the city centre it’s a perfect location for city living but with a relaxing lifestyle.”

JGLT have already received numerous enquiries from property investors. They expect the project to take around 12-18 months to complete before new residents can move in.

 

If you’d like to know more about the Eldon Grove redevelopment, get in touch with us.
Or you can find out more about the original building and site as we look at Eldon Grove – a Liverpool Treasure Comes Back to Life.

Can I Let My House Without Telling My Lender?

The short answer to this question is no. Failure to inform your lender should you rent out your property will infringe upon the legal conditions of the initial mortgage contract.

There’s been a clampdown on ‘accidental landlords’ since 2013, with banks and lenders actively searching for properties which have been listed on the rental market without their consent.

If you do wish to let to a third party, a ‘consent for lease’ is required which can only be obtained by applying to the mortgage lender. Because of this, inform your supplier immediately if you wish to rent out your property.

Green door and green window

Terms and Conditions

The terms and conditions of your primary mortgage agreement will lay out the regulations around letting to another party, although they may be tucked away in the small print somewhere.

Trying to get away with a sub-let without informing the lender isn’t recommended. If they find out, the whole mortgage value could be called in, meaning you’ll be evicted and owe the full sum.

Likewise, letting a property requires you to have landlords building insurance. If something were to go wrong, i.e. with fire damage or mould, the insurer may simply refuse to pay out.

In terms of the main high street banks, ‘consent to let’ details can usually be found on their website. Although some conditions may differ from lender to lender, a few recurring stipulations appear. They include:

  • The change in circumstance must be genuine. If the intention was to always let out the property in the first place, this will hinder your application.
  • To get around this, lenders usually insist the property owner pay the mortgage for at least six months.
  • Interest rates will typically rise by around 1% to 2%, plus an administration fee.
  • An application form needs to be completed including detailed information about the reason for letting, expected tenants, earning potential, etc.

woman signing a document

Clampdown

The 2013 clampdown came as lenders became suspicious some homeowners were keeping their rental arrangement quiet. Although many were simply not aware they had to disclose this information, others were purposely doing so to avoid additional charges.

Likewise, as opposed to a standard mortgage, a buy-to-let application requires more strenuous eligibility criteria to be fulfilled. Naturally, lenders won’t take too kindly to a rental arrangement without a buy-to-let mortgage in place.

By obtaining a ‘consent to let’, this doesn’t necessarily mean you’ll lose the existing mortgage agreement or be out of pocket. In some cases, the lender may look favourable on the new occupants, thus granting the ‘consent to let’ without additional interest rates being added.

In this respect, your choice of tenants is important to consider. If they’re low earners with a bad credit rating, a ‘consent to let’ is harder to come by or you may be penalised more as the primary mortgage owner.

Buy to let building

Further Advice

A mortgage deal will be issued in relation to your personal circumstances. Of course, if you choose to let to another individual, these circumstances will have changed. In such an event, the lender may wish to alter the mortgage arrangement terms.

Remember than any purposeful non-disclosure could have financial penalties or even more severe legal implications should the terms be willingly broken.

To avoid any confusion over this issue, speak to your mortgage lender or seek professional legal advice beforehand.

If you’re interested in becoming a landlord, you could invest in student property which is set to remain a great investment in 2017.

Posted in UK

Rental Growth Expected to Rise in 2017

Landlords can expect rental prices to rise over the course of 2017. The UK property market has stayed strong despite a turbulent year, with confidence remaining in the buy-to-let sector in particular.

With this in mind, it may be a good time to jump onto the property ladder or expand your portfolio, especially as mortgage interest rates remain low.

Positive Signs

Through 2016, rental growth did increase but at a slower rate from the year before. This was to be expected however, notably with the unexpected Brexit result stalling market movement for a short period.

Pound coins stacked

Overall rental growth shrunk from 2.34% to 1.12%, although recent forecasts by property lender Landbay show this trend will reverse in 2017. Prices should start to increase above the 3% mark again, especially in buy-to-let ‘hotspots’ across the country.

In monetary terms, the national average rent is currently around £1,188 per month, an increase of £132 from the same time last year. Landbay are confident this increase rate will rise again, boosted by a competitive rental sector.

The company’s chief executive, John Goodall, says that:

“Tenants will have little choice but to compete for what properties are on offer. As a result, we expect rents to rise faster than the pace of inflation next year, with growth tripling to 3% by the end of 2017.”

London Bubble

Although the UK as a whole still experienced growth in the rental market, albeit at a reduced rate, this couldn’t be said for London in 2016. Rents in the capital peaked in April before falling by -0.31% in May.

Tower bridge in London at night

Landlords may be advised to consider other regions with healthy rental yields before an investment. For example, the North West, East Midlands and Yorkshire have all been attracting interest due to their cheaper property and sustained demand.

Moving Forward

Estate agents and property speculators are confident that landlords will see rental yields improve as we move further into 2017. The slowdown in the previous 12 months was due to external factors rather than an underlying weakness in the market itself.

For example, as well as the ambiguity surrounding the EU Referendum result, there was an upsurge in buy-to-let purchases before the stamp duty levy was to be incurred in April. This led to an increased choice for tenants, thus pulling rents down. A similar event is not expected within the next 12 months.

Business man with pen and paper

The government is keen to tighten mortgage controls on landlords, and there will be a removal of interest relief on the buy-to-let sector, which will inadvertently cause rents to increase.

Looking at the UK market as a whole, many potential first-time buyers are more inclined to rent rather than buy. Tenants will thus have little choice but to compete in the same buy-to-let sector, another factor in driving up rental costs.

2016 witnessed a whole host of external interventions in the private rental sector, helping explain the slowdown in rents across the UK. However, the fact that growth still occurred shows the market remains a wise investment for prospective buy-to-let investors, especially as most commentators predict further rent rises of 2-3% throughout 2017.

 

If you’re interested in investing in property, get in touch today.
If you’d like to know more about being a landlord, you might find Changes to Lettings Agency Fees: What You Need to Know useful.

From an Interesting History to Works of Art – Regenerated Toxteth is Now a Great Place to Invest

For many people, Liverpool’s Toxteth area is synonymous with the 1981 riots where a civil disturbance broke out between police and local youths. However, despite the negative image this portrayed, its repercussions only highlighted the greater need for social stability and increased investment across Liverpool’s inner-city areas.

What’s occurred since has been a vast improvement of Toxteth’s local economy and employment prospects, echoing that of Liverpool as a whole. Twelve months on from the Granby Four Streets regeneration, work is still ongoing to improve the lives of those who live there.

Today, Toxteth is a hotbed of investment, buoyed by relatively inexpensive housing and attractive rental yields. Its close proximity to the city centre, Baltic Triangle, and Liverpool’s universities has appealed to property developers from all over the country, meaning that regenerated Toxteth is now a great place to invest.

Liverpool is a city full of amazing culture and history that is ripe for investment, especially inner-city Toxteth

Image credit: Beverley Goodwin via Flickr

Cultural Ties

One prominent investment has materialised with the old Coleman’s Fireproof Depository on Park Road. The historic red-brick building is to be converted into luxury apartments and set for completion in Q2 2017.

Developers have been keen to modernise whilst retaining the building’s original Victorian features – a constant theme of various regeneration schemes across the city. This desire to preserve original architecture is largely because of Toxteth’s interesting social history and cultural roots.

Toxteth Turner Prize

Image credit:ALANM via Flickr

For example, the creative development of Toxteth’s notable ‘Welsh Streets’ – where work to convert 35 properties into 25 energy efficient homes is underway – saw the 2015 Turner Prize awarded to a collective art group who redesigned homes in the Granby Four Streets neighbourhood. Many of those homes are now let or available to buy at under market value.

Buy-to-Let Opportunities

Toxteth comprises numerous terraced homes within a relatively small area. This provides many buying opportunities for investors, buoyed by a huge demand for accommodation when second year students leave their university halls.

Often moving out in large groups together, landlords capitalise on this by converting rooms to maximise rental income. With over 50,000 students in Liverpool, you’re guaranteed to have enquiries as soon as the property is placed on the market.

Many of Liverpool’s inner-city areas, such as Toxteth, lie within an exclusive band where house prices remain below the national average but are steadily increasing in value. With a strong rental market to boot, this produces attractive yields of around 7-10%.

Toxteth has great rental yields making it a great place to invest right now.

Image credit:broady via Flickr

Living in Toxteth

Toxteth lies just south of central Liverpool and has great transport links into the city centre, notably with numerous bus routes servicing the area. Likewise, Brunswick railway station is close by which operates on the Northern Line of the Merseyrail network.

As well as the ongoing work around the Welsh Streets and Granby Row areas, other developments include a new block of flats and restaurant planned on the historic Princes Road, the conversion of the former Liverpool Savings Bank on Park Road, and the previously noted Coleman’s Depository renovation.

This shows that investors are confident to plough their money into Toxteth, helping boost the local economy and provide further employment. Of course, this enhanced social stability means that the 1980’s volatility is a thing of the past as  the area continues to see even more investment in the coming years, especially in the thriving buy-to-let sector.

If you’re ready to start your Toxteth investment journey, contact us today.
If you’d like more information, you might be interested in A Look into the History of Coleman’s Fireproof Depository and Investing in Toxteth is a Step in History and New Luxury.

Great News for Landlords as Demand Outstrips Supply on Property Sales

Landlords should have no problem renting out their property in the current climate as demand for homes has begun to outstrip supply across the country. A well-documented lack of house building has played its part, as well as affordability problems for first-time buyers.

This has pushed many into the rental sector, with estate agents experiencing high volumes of enquiries as soon as a property is placed on the market. This provides fantastic peace of mind for landlords, knowing that long periods of inactivity won’t dent rental income.

Low House building Levels

The construction sector in the UK is stagnating with output slipping by 1.1% between July and September compared to the previous quarter. This has contributed to an increase in demand as more people struggle to find a place on the property ladder.

To amplify the problem, the number of affordable homes built between 2015 and 2016 fell to its lowest level for over two decades. Just 32,100 new-builds were constructed within this period, compared to 66,000 the year before.

The response from the Theresa May government has been to propose vast house building schemes over the next few years. This is further good news for landlords, providing more opportunity to extend their property portfolio when homes are complete.

Demand is outstripping supply thanks to low house building levels and rising house prices

High Prices

As some potential sellers are remaining cautious in the current climate, fewer properties are being placed on the market. This shortage of supply, combined with a low ratio of house building, has pushed up prices in various regions of the UK.

This positive trend has been taking place for an extended period now. Average house prices have risen by over 35% since early 2011 with a further increase of around 8% over the last 12 months alone.

During this same period, wages haven’t risen anywhere near these levels which pushes first-time buyers and average earners onto the rental market. This new ‘Generation Rent’ do this reluctantly but have no other option.

There are many positive signs for landlords in the current economic climate

Post-Brexit Climate

In many ways, leaving the EU has created an even more desirable climate for landlords across the UK. The temporary period of uncertainty has seen demand for rental properties increase as prospective sellers sit still on their assets.

With the private rented sector dealing with a 10% rise in enquiries over the last year, rents have increased to around £850 due to sustained demand. Furthermore, tenants are becoming increasingly okay with moving into house or flat-share accommodation to bring down their rental outlay.

Positive Signs for Landlords

The severe lack of supply will see house prices rise and continue to generate a high ratio of people looking to the rental sector. As the government seeks to build more homes across the country to counter this, activity in the market will increase and help landlords extend their portfolio.

The opportunity to own your own home for many Britons is becoming increasingly out of reach. This will boost the buy-to-rent sector, generating increased rental yields and further capital appreciation.  Overall, with demand remaining high, landlords are guaranteed a quick let, as well as a good rental income per month.

If you found this interesting, you may also enjoy How Transport Can Affect Property Markets.

Posted in UK

Investing in Toxteth is a Step in History and New Luxury

Liverpool’s inner-city areas contain some of the UK’s hottest property right now. With house prices below the national average and producing healthy rental yields, investors across the country are taking notice.

One such area is Toxteth, just south of Liverpool city centre, that has benefited from extensive urban regeneration schemes since the turn of the century.

Despite this modern investment, developers and locals alike are keen that the original architecture and character of the area is preserved as much as possible.

Coleman Fireproof Depository Building

The renovation of the old Coleman building is a standout example. Well recognisable in the area due to its standalone, red brick façade, the property sat empty for many years and fell into poor condition. However, ongoing developments are set to transform the iconic building into a set of luxury apartments by mid-2017.

Coleman's Fireproof Depository Warehouse is being renovated into luxury apartments

Coleman’s Warehouse is being renovated into luxury apartments.
Image credit: Radarsmum67 via Flickr

The designers and developers were keen to preserve its historic features, such as the Victorian iron doors and old-style goods lift, whilst modernising the interior décor. Echoing Toxteth as a whole, this approach of transporting older buildings into the 21st century whilst maintaining their original charm is appealing to many investors.

Granby Row

Liverpool is noted for its rows of terraced housing and Toxteth encompasses its fair share of these traditional Victorian buildings. Perhaps the most well-known of these are the Granby Four Streets, a collection of terraced homes subject to multi-million pound refurbishment since 2010.

The roads in the Granby Row multi-million pound refurbishment

One of the roads in the Granby Row multi-million pound refurbishment won the Turner Prize in 2015.

The regeneration project gained nationwide attention when the Cairns Street project won the Turner Prize in 2015. This showcased the commitment in keeping Liverpool away from the stereotypical and sometimes bland modernisation schemes that take place elsewhere.

Welsh Street

This attitude has been extended to the planned regeneration for Toxteth’s Welsh Streets neighbourhood, resulting in 25 revitalised energy-efficient homes in the area. Plans to demolish the historic tenements, including the childhood home of Ringo Starr, were previously blocked by former communities’ secretary Eric Pickles.

Instead, the drive to preserve their traditional Victorian architecture whilst refurbishing the interior to modern standards was favoured. This is just another example of how the area is being transformed whilst still maintaining a foot in history.

Victorian architecture of Welsh Street

The Victorian architecture of Welsh Street is being preserved

Investing in Toxteth

Toxteth in general is an attractive part of Liverpool to invest in. With lots of properties, its close proximity to the three main Liverpool universities guarantees a steady stream of tenants every year, along with rental yields of around 7-10%.

Transport into the city centre is also very accessible, especially with properties near Aigburth Road such as the newly renovated Coleman building. Brunswick train station is also close by, providing quick access into the city centre and across the North-West.

Despite some previous prejudices about the Toxteth area, signs of social instability have been eradicated with numerous investment schemes and a stronger local economy. The older, more traditional homes have been modernised but still retain their original charisma, providing a wealth of opportunities for property investors.

If you’re ready to start your Liverpool investment journey, contact us today.
If you’re still want to learn more about Liverpool and why it’s a great place to invest your money now, you’ll find more reasons in Why Invest in Liverpool.

11 Facts about Edinburgh You Might Not Know!

Edinburgh is a beautiful city, steeped in culture and history, and teeming with a range of stunning architecture. But how much about this fascinating place do you know? Here are a few fun facts about Scotland’s capital that you might not know:

UNESCO Edinburgh
1. Meet me in Auld Reekie!
Edinburgh’s nickname is Auld Reekie (Old Smoky). This comes from the time that coal and wood were predominately burnt for heating, filling the air of the city with smoke.

Old Edinburgh Fire Brigade
2. And where there’s smoke, there’s fire!
Edinburgh was the first city in the world to have its own fire service. In 1703, after a series of fires devastated parts of the city, The Edinburgh Act was passed, and a ‘Company for Quenching of Fires’ was formed. This first brigade was made up entirely of volunteer firefighters.

Castle Rock in Edinburgh
3. Castle Rock hides an explosive secret!
The large rock Edinburgh Castle sits upon is actually an extinct volcano! But rest assured, the volcano last erupted over 350 million years ago. The crater of the volcano is named “Arthur’s Throne”.

Edinburgh Castle is home to another famous stone of destiny
4. Edinburgh Castle is home to another famous stone.
The Stone of Destiny, which is still used during the crowning ceremonies of English monarchs, is kept in the castle. After being captured by Edward 1st in 1296, it was finally returned to Scotland in 1996. It was last used in the coronation of Queen Elizabeth II, when it formed part of the coronation chair.

Sherlock Holmes
5. From famous stones to famous detectives.
Writer Sir Arthur Conan Doyle, an Edinburgh native, apparently based his most famous creation, fictional detective Sherlock Holmes, on the then President of the Royal College of Surgeons of Edinburgh, Professor Joseph Bell.

Edinburgh UNESCO City of Literature
6. A literal City of Literature.
Conan Doyle isn’t the only famous literary figure to emanate from Edinburgh. The likes of Robert Louis Stevenson, Muriel Spark, Irvine Welsh and Sir Walter Scott were also born in the city. In fact, thanks to its long heritage of literary prestige, Edinburgh was the first city to be named UNESCO City of Literature. And there’s the famous local legend of J.K Rowling writing the first Harry Potter book in an Edinburgh café!

Other famous literary names from Edinburgh
7. Other famous names sure to ring a bell.
And it’s not just famous writers that Edinburgh has given us. Sir Sean Connery, Ronnie Corbett and Alexander Graham Bell, inventor of the telephone, all come from the city.

Edinburgh Zoo
8. Edinburgh’s most exotic residents.
Edinburgh Zoo – the city’s second most popular tourist attraction – is the only zoo in the UK that is home to koalas and pandas. Koala Territory, opened in 2005, currently houses 3 koalas, while Yáng Guāng and Tián Tián the giant pandas were loaned to the zoo by China in 2011.

Edinburgh Fringe Festival
9. The city attracts a lot of visitors too!
The population of the city doubles during August, aka festival season! From 500,000 to over a million. The Fringe Festival is just one element of Edinburgh’s tourism trade, and industry that brings over 15 million visitors to the Scottish capital every year.

A Taste of the High Life, Scottish Whiskey
10. A Taste of the High Life.
This northern city is also famous another export: Whiskey. Scotch whiskey has attained such a high reputation that forty bottles are shipped abroad every second! And Edinburgh is the biggest contributor to this £3billion industry, with a variety of distilleries and specialist bars scattered across the city – including a fabled distillery at the foot of Edinburgh Castle: The Scotch Whisky Experience.

Scotland's Unicorn and Flag
11. A Touch of Magic.
While you ought to know that Edinburgh is the capital of Scotland, you may not know that Scotland’s national animal is… The unicorn! How fun is that?! Although for a city that inspired Harry Potter, it’s perhaps not so surprising.

There are so many fun sides of Edinburgh to be discovered, it’s no wonder that people flock to visit, work and invest in the city.

If you want to know more about this spectacular city and why you should consider investing in property there, take a look at Why Invest in Edinburgh.

Liverpool: Why Invest in the Hollywood of the North?

As a property investor, it’s in your best interests to locate real estate within a region with a strong local economy and high growth potential. That’s why Liverpool should be high on your list when considering an investment – a city blessed with a rich cultural heritage, but with much to look forward to as well.

Regeneration Schemes

Liverpool has been subject to all sorts of development schemes since the turn of the century, a clear indication of investment confidence in the region.

The MIPIM UK, a distinguished real estate event attracting a host of business and property experts, will be attended by Liverpool City Region representatives to sell the North-West region. Promoting the event is Ellen Cutler, head of Invest Liverpool, who points out that:

“Liverpool has really come into its own in the last ten years, with developments like Liverpool One, the Arena and Convention Centre breathing new life and confidence into the city.

“This is a dynamic, accessible region with a brilliant world-class brand backed up by solid, significant investment that is driving forward growth across the region.”

There’s also the recent £40 million restoration of Lime Street, producing an impressive “facelift” for one of Liverpool’s main road links, and the government-backed £130 million Stanley Docks regeneration scheme.

Stanley Docks is part of a £130 million regeneration scheme.

Stanley Docks in Liverpool
Image credit: SPDP via Flickr

Furthermore, plans for the new £2 billion Knowledge Quarter are also picking up speed. The five year project is set to produce a world-class destination for science, technology and innovation specialists in the vicinity of Liverpool’s prominent educational institutions.

Life in the City

Although much is made about the city’s musical legacy and sporting achievements in years gone by, that doesn’t mean Liverpool is stuck in the past. There’s an eclectic range of activities for people of all interests to enjoy, aided by a vibrant nightlife and a social population.

Liverpool is full of important cultural history and still has an active culture scene and night life.

Liverpool Metropolitan Cathedral
Image credit: Matthew Black via Flickr

The city has benefited from a thriving economy in many ways. For example, Liverpool has more people in employment than ever before and a healthy number of vacancies to boot. This is good news for the buy-to-let sector as workers are more likely to rent properties with a guaranteed income behind them.

Investment Opportunities

A stable local economy will see property increase in value and attract more people to the area, a trend likely to entice shrewd investors in the current climate.

This is all fuelled by a thriving buy-to-let sector and healthy student population, guaranteeing tenants year in, year out. As another bonus, Liverpool produces some of the highest rental yields in the country, helped by the fact house prices are lower here than the national average.

Hollywood Comparisons

The Liverpool Film Office, currently celebrating its 25th birthday, is enjoying a purple patch having recently hosted the box office film Florence Foster Jenkins, starring Hugh Grant and Meryl Streep.

Liverpool is the backdrop for a number of great films and television programmes.

Foyle’s War being filmed in Liverpool
Image credit: Beverley Goodwin via Flickr

Liverpool has become a draw for film companies due to its location-friendly scenery and cooperation from local businesses. As more film companies seek out Liverpool for their productions, this can only be good news for the city.

With increased investment and employment rates in the city, combined with relatively low house prices and a thriving buy-to-let sector, there are plenty of reasons to be choosing Liverpool – the Hollywood of the North – as your next investment venture.

Considering investing in Liverpool? Check out our latest investment opportunities.
If you’d like to know more about investing in Liverpool property, you might be interested in our top six Liverpool postcodes to invest in.

What Should I Do with My House – Let it or Sell It?

There is no simple answer to this question and much depends on your personal circumstances. However, if you can afford to let out your current property and still move into a new home, this continues to be the best course of action despite any post-Brexit concerns.

Why Let?

Letting is highly desirable for numerous reasons. Firstly, it provides an additional income per month with little to no risk involved, hopefully whilst the property gains value. There’s also the added long-term security of owning bricks and mortar.

For those unsure of their future plans, perhaps due to work or family commitments, letting out your home also means there’s the option of moving back in at a later date.

Should you sell or let your house?

Why Sell?

Obviously, selling up gives you access to instant cash – far more than you’ll have by letting. If you’re planning on moving home and need a large equity sum, selling it is the best option. This makes even more sense if prices are decreasing and you want to extract the best possible price for your home while you still can.

Many people are unsure of whether it’s the right time to sell and what impact Brexit has had on the property market as a whole. Despite some mixed signals, it appears that the Referendum result won’t have dire consequences for the UK property market.

Brexit Aftermath

Some homeowners are understandably concerned that leaving the EU will have an adverse effect on their property. However, despite the falling pound, it looks as if the usual trend of supply and demand is holding up.

This is pushed by the current shortage of housing, a bittersweet circumstance that has kept house prices stable on the whole and still rising in some areas such as Liverpool, Manchester and Leeds.

Demand for property is still high despite Brexit.

A survey from the Royal Institution of Chartered Surveyors shows that buyer enquiries increased during September and October, another sign that confidence in the market remains.

Points to Consider

Owning multiple properties can bring complications if mortgages are involved. The simple question is, can you afford to keep up with the required payments on all your homes?

If choosing to let, rental income should ideally be able to cover your mortgage payments, although this in itself needs further consideration. For example, will the property always be occupied? Prolonged vacancy may make it difficult to pay the mortgage. Also, will the property require any maintenance work? It’s your responsibility to cover these costs throughout the year.

There are a lot of things to consider when deciding whether to sell or let your house.

As a side note, also bear in mind that the terms of your mortgage may actually restrict or prevent renting out your home in the first place. To get around this, taking out a new buy-to-let mortgage will be required, although this may result in additional arrangement fees as well.

The general consensus is that property values will rise in the long-term as speculators realise Brexit isn’t as detrimental as some Remainers are making out. With this in mind, it is likely that letting your property in the current economic climate is recommended.

However, by taking mortgage and tax payments into consideration, selling outright may be your best option. If you’re unsure of which way to go, it’s suggested you seek advice from a professional estate agency on the matter.

If you’d like more information on the current rental market, you may be interested in how property rentals are exceeding property sales for the first time since the 1930s.

Posted in UK

Buy-to-Let Boosted as Property Rentals Exceed Sales for the First Time Since the ‘30’s

By 2017, there will be more Brits renting their home than owning it – a product of rising house prices and a crowded property market.

This is based on research by the estate agency group Countrywide, who report how the rental market is fast becoming the more desirable way for would-be buyers to live in the current climate.

Johnny Morris, the Countrywide research director, notes that:

“As some would-be buyers and sellers sit on their hands, this has continued to boost the rental market … September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts. On current trends 2017 could be the first time since the 1930s that more homes are let than sold.”

As fewer people are buying property, the rental market is booming.

Image credit: Henry Burrows via Flickr

Affordability

It seems that the main stumbling block for first-time buyers is the simple fact that house prices are too expensive for average earners.

Data from the Office for National Statistics shows that the median house price has risen by 25% since 2013, a period where wages haven’t increased at the same rate. This has pushed many would-be buyers into the letting market by circumstance and not by choice.

Renting is much more affordable in the long term than buying a property.

Image credit: Scott Lewis via Flickr

This increase in house prices means that renting long-term has become less expensive than buying. Real estate experts Savills say this is compounded when the cost of repaying capital is taken into consideration alongside mortgage repayments.

Lucian Cook, the director of Savills’ residential research, points out that:

“…it’s not only the challenge of funding a mortgage deposit that was constraining people’s ability to get on to the housing ladder, but also the extra expense of paying down a capital repayment mortgage over time.”

Booming Buy-to-Let Sector

The thriving rental market has been good news for landlords across the UK throughout the 21st century, and although many thought the rise in stamp duty on second homes and looming tax changes would cripple the market, confidence still remains.

For example, enquiries by prospective landlords at Rightmove have risen by 30% since June. This in turn led to the number of properties being available to rent increasing by 6% across the country.

Despite changes in taxes and stamp duty, the buy-to-let sector is booming.

Image credit: Tim Green via Flickr

These positive signs are despite the government measures to reduce tax relief in 2017, reducing the possible 40/45% respite down to a flat-rate of 20%. In fact, these changes may make it easier for new buy-to-let investors to delve into the market as the playing field is levelled-out.

In terms of tenant numbers, it’s perhaps the easier nature of renting that has seen levels rise higher than house sales for the first time in over 80 years. There’s less risk involved, especially in what some consider a volatile period, and often comes with much less hassle than buying outright.

For investors, knowing which route to go down will depend on your personal circumstances, as well as possible market trends and how future tax implications will affect profit margin. However, to minimise a risky buying strategy, it’s recommended to seek professional advice from a reputable estate agent before deciding on your next move.

If you found this helpful, you might also be interested in Why Brexit Can Be a Great Opportunity for Property Investors.
If you’re ready to make a move into the buy-to-let sector, then contact us today.

Posted in UK