Tag Archives: europe
UK tenants can now request energy improvements to their rented property
Tenants in the UK now have the right to request energy improvements to the homes that they rents and landlords need a good reason to refuse. From the beginning of April they can request consent from their landlords to make energy saving improvements for the properties they rent and landlords will not be able to refuse their consent without good reason. But tenants will need to ensure that they have a way of funding improvements at no cost to the landlord, unless otherwise agreed. This may prove difficult, as it was originally expected that the Green Deal, which was closed down in July last year, would provide much of the funding for this initiative. Making these improvements can be beneficial to both tenants and landlords, saving on costs and having a positive impact on the environment, according to the National Association of Landlords (NLA). It pointed out that a property that is energy efficient can also be an attractive prospect for potential tenants. Indeed, according to a recent NLA survey some 35% of tenants said they considered the energy efficiency of a property to be an important factor when choosing a place to live. ‘We encourage all landlords to think about how they may benefit from making energy efficiency improvements, as many can be made with little or no upfront cost, and can have a positive impact on the lives of tenants, their lettings businesses, and the environment in general,’ said Richard Lambert, NLA chief executive officer. ‘Lower fuel bills and more comfort mean that tenants may be inclined to stay for longer, thus reducing void periods,’ he added. He also pointed out that the NLA offers various ways for landlords to improve their property and has access to different Government funding incentives to provide financial support. Continue reading
UK first time buyer home market resilient in first months of 2016
First time buyers in the UK are resilient despite a month on month dip in property sales to this group, according to the latest first time buyer tracker index. It shows that people buying their first home increased by 6.6% year on year but month on month fell by 1.4% between January and February 2016. The data from Your Move and Reeds Rains also shows that total monthly volume of first time buyer transactions was 21,100 in February but on a seasonally adjusted basis it is considerably higher at 25,900. According to Adrian Gill, director of estate agents Your Move and Reeds Rains, February is a traditionally quiet period for the first time buyer market but the figures demonstrate the strong, steady underlying growth that comes with growing first time buyer confidence. ‘This optimism may begin to reveal itself more clearly in March, when an Easter uplift may sweep away any residual doubts among some first timers. While the more general mismatch between buyers and sellers will continue to exert upwards pressure on prices, a combination of pluck and poise from first time buyers will ensure that this does little to impact the overall trend of growing demand at this end of the market,’ he explained. The figures also show that the costs of buying and owning a first home have remained broadly stable in February, with lower borrowing costs balancing larger prices and deposits. Average mortgage rates for first time buyers have improved, down 0.56% on a 12 month basis and by a much slighter 0.03% between January and February 2016. February’s average mortgage rate also represents the lowest mortgage rate for first time buyers in over five years. Similarly, the average LTV ratio remains high, meaning first time buyers have been able to borrow more against the value of the home they wish to purchase. February’s average loan to LTVs recorded in 2014/2015 and represents only a 0.1% fall on February 2015. While first time buyer property prices have risen significantly on an annual basis, mortgage lending levels have kept pace. In February, the average purchase price for a first time buyer home stood at £168,539, an increase of £21,320 or 14.5%, on February 2015’s average of £147,219. However, over the same 12 month period, the average size of a first time mortgage grew from £121,534 to £139,088, an increase of 14.4%. Larger deposit costs represent the other side to this balance of affordability, the report points out. In February the average deposit put down by a first time buyer stood at £29,451, an increase of 14.7% or £3,766, on an annual basis. The report suggests that this uptick has been a factor in the growing proportion of first time buyer income which is consumed by deposit costs. In November 2015, a deposit ate up 67.4% of an average first time buyer’s annual income, whereas in February of this year the average deposit consumed, on average 74.9% of their income. However,… Continue reading
Experts warn that new UK additional home property tax will result in rent rises
Rent prices in the UK will rise as a result of the new stamp duty rate being introduced on 01 April for additional properties as it will hit landlords of buy to let properties, it is claimed. The extra tax, which affects anyone buying an additional home, is seen as a huge burden for the UK’s private rental sector as a time when there is increased demand for rented homes. ‘We’re about to see supply nose dive, demand rocket and rent prices go through the roof. The introduction of the new stamp duty charges is set to push the private rental sector into a state of despair,’ said David Cox, managing director of the Association of Residential Letting Agents (ARLA). ‘Back in November, when the Chancellor announced an increase in stamp duty tax on buy to let properties we called this a huge kick in the teeth for the private rented sector. The news that larger investors will also have to pay the tax comes is an even bigger blow,’ he pointed out. The Chancellor had originally said that professional landlords who normally own more than 15 properties, would be exempt, but announced in his Budget a few weeks ago that they would not. ‘We are very likely to see the new tax discouraging landlords from investing in buy to let properties, which will of course mean supply falls. In order for landlords to be able to afford to own a buy to let property, tenants will begin to see the additional costs passed onto them, which means they could see less money spent on maintaining their property, and also an increase in rent costs,’ Cox pointed out. He also explained that a recent announcement over tougher rules for buy to let mortgages will not help the sector. ‘Whilst we recognise the need to look at the important issue of affordability, the proposed measures are far too tough and are yet another assault on the rental market,’ added Cox. ‘Something urgently needs to be done to make the prospect of being a buy to let landlord appealing again, or the vicious cycle of supply and demand is only going to get worse and worse,’ he concluded. Online property marketplace LendInvest has carried out research on the impact of the stamp duty change for those buying additional properties which shows that landlords in London and the South East will need longest to repay the higher tax while Darlington, Halifax and Doncaster are among the worst affected. Landlords in Inner London and Harrow will need the equivalent of 20 months’ rent or more to repay higher stamp duty and landlords in 13% of the country will pay it for the first time as there is no zero rating for additional homes as there is for first homes at £125,000. Towns like Sunderland, Blackburn, Wigan and Oldham could be particularly badly impacted as rental yields are comparatively good but average house prices are below £125,000 meaning stamp duty… Continue reading
