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Research reveals UK landlords experience difficulties accessing buy to let finance
Three in 10 landlords in the UK plan to look for additional buy to let lending or to re-mortgage in the next three months, yet many may not gain access to finance, it is claimed. According to the latest report from the National Landlords Association (NLA) some 67% of landlords rely on a buy to let mortgage to fund their portfolio, but one in five, or approximately 300,000, landlords have not been able to expand due to difficulties in accessing buy to let finance over the last year. Furthermore, 59% say that lenders fail to consider their individual circumstances, and 56% that current buy to let lending criteria is too conservative. There are two ways a landlord can obtain a buy to let mortgage, either by going direct to a lender or by using the services of a broker, and the NLA believes it is vital that landlords have access to a wide range of products in order to find the one most appropriate solution for them. ‘A significant number of landlords are having trouble accessing finance and expanding, which is a major concern because the private sector is vital in meeting the ever increasing demand on housing at the moment,’ said Carolyn Uphill, NLA chairman. ‘Many landlords are frustrated as lending criteria is too prescriptive. There’s no one size fits all mortgage, and as the leading landlord association in the UK we understand that landlords need access to a range of products that meet their specific individual circumstances,’ she explained. She pointed out that NLA Mortgages provides a free online buy to let mortgage search facility which sources from over 600 mortgage products to help landlords find the best product to suit their needs. Mortgage schemes that are not available in the general marketplace are also available through NLA Mortgages, all via the NLA website. ‘We urge any landlords who are having difficulty in finding a mortgage that meets their needs to get in touch to see how NLA Mortgages can help,’ she added. The NLA’s research also asked landlords what they would say to lenders if given the opportunity. ‘Mortgage lenders are becoming increasingly difficult to work with. The requirement to produce further information on income is causing delays and becoming problematic…if your income does not fit their box on criteria they say no, which wastes time and slows the process,’ said one. ‘Mortgage lenders should consider each borrower on their own merits, and not impose a blanket ban on lending to individuals earning less than £25,000, regardless of their personal circumstances. Someone who is lucky enough to have no outgoings, servicing a mortgage with personal income of £25,000 a year is more than adequate,’ said another. Continue reading
Research reveals UK estate agents tactics for making a property more sellable
British estate agents are not always popular but new research reveals the lengths they will go to sell a property by making it more suitable for viewings. They will literally don rubber gloves to clinch a sale with many opening windows to get rid of bad smells, flushing the toilet and hiding inappropriate items on display, according to the research by Big Yellow Self Storage. Many agents have had to clean properties and hide items ahead of viewings. Some 36% said they have had to open windows to get rid of smells, 31% have pushed things under a bed and 29% have tidied up mess. Others have resorted to age old tactics to increase desirability with 22% turning on lights to create the impression of greater brightness and 15% brewing fresh coffee to create a homely atmosphere. The research also shows that 21% have tidied items away into cupboards, 17% have sprayed air freshener, 12% have flushed the toilet before viewers arrive and 10% have encouraged the property owner to get rid of large items. ‘Every agent wants to get the best price they can for their sellers, but many of the ways they do this go unnoticed. Agents get a bad press, but the research reveals that they’re often going above and beyond and undertaking less appealing tasks to make sure a property is presentable at viewing time,’ said property expert Kate Faulkner. The research also reveals agent’s tips on boosting a property’s sale price. Ways that reap particular dividends include clearing kitchen of small appliances such as kettles and toasters which can add £973 in value, creating an open plan living area adding £972 in value and de-personalising the property by removing ornaments and knick knacks adding £948 in value. It also found that in some cases, de-cluttering by removing bulky items to maximise space pushed the sale price up by as much as 11%. In fact, each square foot of floor space freed up is estimated to be worth an average of £238 by agents researched. ‘The UK is in the grip of a housing squeeze with the smallest homes in Western Europe, so space is increasingly desirable for buyers, as agents well know. Our research found that a fifth of buyers wouldn’t make an offer on a property because it was too cluttered, so it’s in the interests of agents to advise vendors on how they can maximise the space in their homes to clinch that sale,’ said Anthony Chenery, Big Yellow spokesperson. Some 95% of estate agents say de-cluttering leads to homes selling for more and 38% insist it increases the sale price 'every time' and yet only 56% have recommended short term self storage to clients as an aid to selling their home. Overall the study found that two thirds of sellers who de-cluttered before viewings received a higher offer than expected of £4,811 more, on average. ‘Self storage allows vendors… Continue reading
Distressed properties in the US selling 37% below market value, latest data suggests
Distressed residential properties in the United States sold for a median 37% below market prices in September, according to the latest foreclosure report. This was $130,000 nationwide compared to the median price of $205,000 for non-distressed homes during the month, according to the data from RealtyTrac’s report covering the third quarter of the year. ‘Even as the share of distressed sales decreases, the average discount on distressed properties continues to be substantial because the primary factors driving that discount are still in place,’ said Daren Blomquist, RealtyTrac vice president. ‘Distressed properties are typically in poor condition and have a highly motivated seller whether that seller is the distressed homeowner in foreclosure or the bank that has repossessed the property through foreclosure,’ he explained. The major metropolitan areas were distressed homes were most heavily discounted were Pittsburgh and Milwaukee both at 67%, Cleveland at 64% and Memphis at 59%, a breakdown of the data shows. Overall, the median sales price of US residential properties, both distressed and non-distressed combined, was $195,000 in September, an increase of 1% from August and 15% from September 2013, the largest year on year increase since October 2005. September 2014 was also the 30th consecutive month in which the median home price increased annually. ‘Median home prices nationally in September were boosted by a new low in the share of distressed sales during the third quarter, resulting in fewer home sales on the lower end,’ Blomquist pointed out. ‘The share of homes selling above $200,000 is up 7% from a year ago, and the share of homes selling above $500,000 is up 15% from a year ago,’ he added. Continue reading
