buy-to-let
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Features
Does buy-to-let still stack up?
The media says buy-to-let is crashing down, but, says Kate Faulkner, let’s look at the facts and figures.
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Features
BTL issue: demand v supply
Both sales and rentals markets are challenging, says Rob Clifford, CEO, SDL Group, but its not all bad, in fact, we’re quietly confident.
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Latest property news
Tenants not planning to buy
A growing number of tenants are not planning to buy and will probably rent for the long term, with little likelihood of buying a home. As letting agents experience growing demand, will there be enough properties? 38.4 per cent of tenants surveyed by The Deposit Protection Service said that they plan to remain in a rented home rather than buy property, The Deposit Protection Service (The DPS) has said. Most of those who said that they do intend to buy a property said it wouldn’t be likely within the next 12 months. 25.5 per cent said they hoped to own within six months, but 62 per cent said they didn’t expect to within the next year. The 1,000 tenants surveyed have their deposits registered with The DPS. Julian Foster, Managing Director of The DPS, said, “Renting is a vital part of the housing sector, and a significant proportion of the UK population choose to be tenants as it better suits their life plan or lifestyles. “However, buying a house is a significant financial undertaking, and renting will often also suit those who are saving for a deposit before accessing a mortgage. “The UK needs a flexible residential sector that suits the varied life choices and…
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Features
Buy-to-let, what happens next?
Scott Hendry, director at specialist finance provider Together, discusses what to expect from the buy-to-let sector after a challenging 2016.
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Latest property news
80% of agents say rents will rise after fees ban
Eight out of ten letting agents expect the tenant fees ban to be passed on as increased rents while reduced supply and increased demand will also contribute to upward pressure on rents, says the Association of Residential Letting Agents (ARLA). It canvassed 917 of its members over the past two weeks and found that 53% also expected to see increased competition for rental property during 2017 and 63% said there would be a drop in the number of privately rented properties available within the market. “I manage around a dozen properties for one of my clients and I spoke to her recently about the tenant fees ban,” says Brighton letting agent David Burt. “She made it clear to me that she wasn’t going to pay extra for the referencing or any of the other costs associated with acquiring tenants for her properties that tenants normally pay, so I’m going to have to consider putting up the rent so that my percentage management fee rises instead. Otherwise I’ll be working harder for less money.” ARLA says the recent increase in Stamp Duty for landlords and the reductions in personal tax and capital gains tax allowances are pushing up costs for landlords before…
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Features
Should buy-to-let investors use a limited company?
Donna McCreadie, a buy-to-let taxation specialist at Perrys Chartered Accountants, discusses the changes, the pros and the cons.
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Latest property news
Buy-to-let mortgage stress test shock
As mortgage approvals continue to fall – down to 60,058 in August from 60,925 in July – buy-to-let lending is also likely to decrease with the latest news from the BoE’s Prudential Regulation Authority (PRA) which has confirmed that a series of investors’ affordability checks and interest rate “stress tests” will be introduced from January 2017. Buy-to-let lenders will be required to verify that landlords can afford to pay the mortgage under potential future interest rates of 5.5 per cent, as the PRA recommended that the interest coverage ratio, a commonly used measure of the ratio of rental income to mortgage payments, does not fall below 125 per cent. Affordability assessments will need to take into account borrower’s costs, personal income and possible future interest rate increases, with lending to portfolio landlords to be assessed using a specialist underwriting process. “The PRA’s actions are intended to bring all lenders up to prevailing market standards and guard against any slipping of underwriting standards during a period in which firms’ growth plans could be challenged by the changing economic landscape and the impact of forthcoming tax changes,” it said. Peter Williams, Executive Director of Intermediary Mortgage Lenders Association (IMLA) said, “IMLA welcomes…
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Features
The ticking timebomb
What’s next for the buy-to-let market? London landlords are playing a high-risk game that will undoubtedly leave casualties.
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Latest property news
Cut Stamp Duty in half!
Government policies on landlord taxation aren’t helping tenants and the 3 per cent surcharge on buy-to-let purchase will cause even more misery.
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Features
Forward thinking pays dividends
Buy-to-let investors appreciate professional advice from a lettings expert – that’s you! Joanne Christie met some canny lettings advisers who are showing the way.
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