Property Solutions

UK landlords seeking possession of properties throughout the courts at the rise

Posted on April 30, 2014 at 11:17 am

Image The selection of landlords and agents within the UK seeking vacant possession in the course of the courts is at its highest level since 2009 and up 12.7% from last year, the most recent data shows.

It indicates the desire for strong tenant selection processes and may remind landlords to think about rent and legal protection insurance, in accordance with the firm LetRisks which supplies training for agents and policies for the lettings industry.

The government’s latest Court statistics show that there was almost a 25% rise in landlord claims since 2010, with 126,351 possession claims made within the first three quarters of this year, compared with 101,415 within the first three quarters of 2010.

In a contemporary survey for BBC Panorama, 31% of individuals paying a mortgage or rent spend greater than a 3rd in their disposable income every month doing so. The rent that tenants pay has to be not more than 40% of gross earnings under the recognised thresholds that tenant referencing companies use, including LetRisks. 

The firm says that landlords and letting agents may be privy to these limits when screening potential tenants, because it is less complicated to prevent arrears, than it really is to recover them.

Non-payment, late or partial payment of rent remains the most important worry for landlords. Good letting agents are tending to focus on the dangers to landlords more and are putting strict vetting procedures in place, backing this up with rent and legal protection insurance to assist protect themselves and the owner against the non-payment of rent.

‘We have seen a pointy rise favorite for rent guarantee insurance as landlords and agents look find tips on how to protect their rental income. It truly is clear that this problem can not depart,’ said Michael Portman, managing director of LetRisks.

He mentioned that around the country rents have typically increased by 1.2% during the last year they usually appear as if they’ll continue to rise in 2014. ‘Some tenants will continue find it hard to locate the rent every month, with the newest figures from the Office for National Statistics showing that a 3rd of working men are partially time employment, because they can not discover a full time job, in comparison with 13% of ladies,’ he said.

‘The message to landlords and agents is make sure they think about the strength of the tenant when letting the valuables by getting rid of full references, and to think about specific insurance through a expert company for lack of rent, if the tenant defaults and the price of legal expenses to acquire possession,’ he added.

Advice from the firm is if a tenant pays the rent late or never, the agent or landlord should attempt to enter into and maintain a dialogue with them to achieve an understanding in their situation and explain that legal action will follow, if the arrears aren’t met.

To protect your landlord’s interest you could serve tenants with the mandatory notices to achieve possession once possible, whilst still maintaining dialogue. If the tenant subsequently pays, the notices may be withdrawn.
The balancing act between the owner and tenant is really a stressful time for letting agents. If handled correctly and professionally it may possibly sometimes resolve a possible nightmare for all parties concerned without the will for expensive court action. It’s the moment when a very good agent ought to be most valued by both parties.

It also advises landlords that in the event that they have insurance in place, they need to pay attention to the policy conditions for notifying claims. Many policies have an overly short window for notifying claims of 30 days. This may sometimes work against the agent who’s working with the tenant to get the rent payments back on course.

Policies through LetRisks have a claims window of 45 days which permits agents more flexibility to make a judgment in the event that they need to give the tenant a raffle to get the tenancy back on course.

The firm also points out that if a landlord would not have rent and legal expenses insurance, obtaining a court order for possession under section 8 and obtaining a money judgement could be expensive and take at least in any case three or four months. An alternate could be to check out for accelerated possession instead and accept which you pursue a money judgement once possession was obtained.

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Posted in Property Solutions

Mortgage lending in London sees quarterly growth, especially among first time buyers

Posted on April 28, 2014 at 7:34 pm

Image Mortgage lending in London inside the third quarter of 2013 followed an identical upward trend to the remainder of the united kingdom, the newest quarterly data from the Council of Mortgage Lenders shows.

Strong owner occupied house purchase activity was seen in London in all sectors with the collection of loans advanced to first time buyers within the city up by 24% at the previous quarter and up by 32% in comparison to the third quarter of 2012.

Strong house price growth in London, and the knock on effect at the typical loan amount has ended in stronger growth within the value of lending to first time buyers, the CML data shows. In total, £2,960 million was advanced within the third quarter of 2013, a 25% increase in comparison to quarter two and up 42% when compared with an analogous period last year.

In the third quarter, first time buyers typically borrowed £198,000, a rise from £192,700 within the second quarter this year. While first time buyers took out larger loans, the initial affordability of those loans was almost unchanged end result of the higher incomes and falling rates of interest.
 
On average first time buyers who bought on this period spent 20.8% in their income on mortgage payments, unchanged from quarter two and not more than the 21.3% within the same period in 2012.
 
First time buyer affordability in London remains tighter than within the UK overall. First time buyers in London borrowed a median of three.74 times their income inside the third quarter in comparison to 3.67 inside the second quarter and three.59 times their income within the third quarter of 2012.

There was a shift within the mixture of properties bought by first time buyers in London with 53% of first time buyers making a choice on properties priced at greater than £250,000, up from 47% within the same period last year. In London only 3% of first time buyers bought a property for under £125,000 and therefore didn’t have to pay any stamp duty. On the other end of the dimensions 11% in London bought properties worth greater than £500,000.

First time buyers make up a bigger proportion of house purchase loans in London with 55% of house purchase loans advanced in London in quarter three going to first time buyers when compared with 44% inside the UK overall, a trend that has consistently been observed historically and the CML said could be a function of demographics in London, with proportionately more younger people.

Home mover lending in London has also shown growth within the third quarter of 2013. In total, 10,900 loans worth £3.4 billion were advanced to home movers in London which was a rise of 28% when compared with quarter two and a 38% increase in value of the loans. This however is a smaller growth at the third quarter of 2012 representing a 6% increase within the variety of loans in comparison to a year ago but a 16% increase in value.

Total house purchase lending in London was boosted by the rise in lending to first time buyers and residential movers showing a rise of 26% in comparison to the second one quarter and 19% in comparison to the third quarter of 2012.
There were 24,000 house purchase loans advanced in London worth £6.4 billion in total, a 32% rise in value in comparison to the second one quarter of 2013 and up by 27% when compared with the third quarter last year.

Home mover lending in London has shown growth inside the third quarter of 2013. In total, 10,500 loans worth £3.4 billion were advanced to home movers in London which was a rise of 28% in comparison to quarter two and a 38% increase in value of the loans. This however is a smaller growth at the third quarter of 2012 representing a 6% increase within the variety of loans in comparison to a year ago but a 16% increase in value.

Remortgage lending in London has began to grow following over a year of subdued activity. There has been £2.9 billion advanced to borrowers remortgaging their houses within the third quarter of 2013, which was up by 25% in comparison with the second one quarter and a rise of 42% when compared with the third quarter of 2012.

‘The increase in lending for house purchase in London seems broadly in line with UK wide upward trends. First time buyers were the most important driver within the first half the year in London but remortgagors and residential movers have shown greater signs of life this quarter,’ said CML director general Paul Smee.

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Posted in Property Solutions

Australian residential building recovery stalled within the third quarter of 2013

Posted on April 26, 2014 at 1:08 pm

Image The recovery within the residential building sector in Australia did not advance within the third quarter of 2013, consistent with preliminary figures published by the Australia Bureau of Statistics (ABS).

The value of residential building work done through the quarter was unchanged compared with the former quarter. There has been a decline in detached homes being built but an increase in multi unit homes.

The data shows that the worth of labor done on multi unit construction increased by 3.9% and was 16.8% above the extent recorded within the September quarter of 2012. By contrast, the cost of labor done on new detached homes declined by 1.6% and was 3.6% below the extent within the September quarter a year ago.
 
The value of labor done on renovations declined by 3.1% in the course of the quarter to a degree 3.3% below the extent recorded within the corresponding period last year.

‘The flat result was a balancing act whereby a decline in work done in detached house building and residential renovations was offset by a comparatively strong increase within the value of labor done on multi unit dwellings,’ said Housing Industry Association economist, Geordan Murray.

‘It is sweet to peer activity within the multi unit segment of the market picking up, but the positive impact this could have on Australia’s housing supply is being offset by declining levels of activity within the detached home segment,’ he mentioned.

‘In order to work out Australia’s growing population housed in a technique that maintains the same old of living the community expects, we have to see broad based increases within the level of activity around the new home building sector in place of only a reallocation of activity between the varied segments of residential building,’ he explained.

‘Demographic demand sooner or later will necessitate a structural increase within the rate of recent home building across every kind of dwellings compared to the volumes we’ve seen over recent decades,’ he added.

Indeed, the most recent figures from the ABS in population growth suggest that home building might want to increase. The ABS projection is that Australia’s population could double to 46 million by 2075 but when there’s rapid growth this level may very well be reached by 2058. Even a smaller outcome would see the population reach 26 million by 2020 and 29 million by 2030.

‘The ABS projections send a transparent message to policy makers round the country. Ensuring that the availability of latest housing can meet the purposes of a growing population is an urgent and ever-present policy priority,’ said Murray.
 
‘Housing these people would require a considerably higher average build rate than what has occurred during the last two decades and that won’t happen and not using a concerted and cooperative talk about policy reform,’ he added.

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Posted in Property Solutions

Average farm land prices in England up 4% in third quarter of 2013

Posted on April 24, 2014 at 10:41 am

Image The typical value of farm land in England rose by 4% within the third quarter of 2013 to £6,678 and acre, the strongest performance in a 3 month period because the second quarter of 2010.

It takes growth during the last yr to 7%, in keeping with the most recent farm land index from Knight Frank. The firm says that the worth of English farm land continues to rise because investors are building their portfolios and farmers expanding.

Between July and September farmland outperformed residential property, even in prime central London, matched the upward push within the value of the FTSE 100 and was only marginally behind the 5% growth within the price of gold.

Demand from farmers, lifestyle buyers and investors, coupled with historically low availability, helps to push up prices, in accordance with Tom Raynham, head of Knight Frank’s Agricultural Investment Acquisitions team.

‘We are seeing a gradual increase within the choice of enquiries from individuals and funds, both inside the UK and overseas, seeking to diversify their investment portfolios,’ he explained.

He added that enormous blocks of excellent arable farm land, preferably over 1,000 acres, are most well known and are making between £8,000 per acre to upwards of £10,000 per acre. Also capital growth is a key driver for investors. Prices have risen by 222% prior to now decade and are predicted to rise by no less than 5% annually over the following three years.

Raynham mentioned that investors also are looking more closely at annual yields.‘From what i’m seeing now, people begin to get very interested if there’s also the potential of additional income from the likes of renewable energy or a diversified farm business,’ he said, adding that the resurgence in agricultural research can be adding to the sector’s investment potential with some exciting developments at the horizon which can help to reinforce returns with improved technology and crop yields.

Farmers also are prepared to pay strong prices for land, but have become more careful about what they bid on within the light of latest price increases. Location and quality must be right, in response to James Prewett, head of Knight Frank’s regional farms team.

‘More marginal land hasn’t seen the identical kind of growth. I don’t think prices have weakened, but they continue to be more stable,’ he said, adding that a captivating trend it is beginning to emerge is the selection of dairy farms which are being sold and kept as milk producing units.

‘It’s not something i’ve seen for quite it slow,’ said Prewett, who has just acquired a dairy farm in Wales for a consumer. He stated that milk prices have risen recently, but costs are still a difficulty meaning those farms with a variety of good grass acreage and lower overheads are most well-liked.

Amenity or lifestyle buyers also are prepared to pay a premium above agricultural values for the appropriate farms. But Prewett said that they must be within the right location with a prime house it is well proportioned, but not overly large.

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Posted in Property Solutions

Turkey set to continue to draw foreign buyers next year

Posted on April 22, 2014 at 6:19 pm

Image New rules governing property ownership in Turkey have made the rustic increasingly attractive to foreign and laying the rules for continued growth within the property market in 2014, it’s claimed.

According to Turkey property specialist Spot Blue International Property, the country’s most up-to-date law change favouring foreign buyers have made the method of having title deeds referred to as TAPU faster.

It is only one in a sequence of changes designed to draw more foreign buyers. Previously looking ahead to acclaim for title deeds can have added as much as 10 weeks to the time it takes to finish a purchase order as buyers needed military approval.

‘Now a slicker system means this time should be greatly reduced and buyers won’t ought to struggle through the method of having military approval,’ said Spot Blue director Julian Walker.

It signifies that if the valuables they’re buying was granted approval after 05 May 2011 or if they’re buying on a brand new development where an existing buyer has already gained it, the title deed process may be faster.‘It’s encouraging to work out Turkey rolling out changes like this, showing commitment to attracting foreign buyers,’ added Walker.

Visa applications for temporary visitors, equivalent to second house owners, and residency laws have also been changed this year. A revision within the law introduced within the spring signifies that foreign nationals are actually granted a year long short term residency permit once they buy property in Turkey, whatever the value of the transaction.

This visa may be extended indefinitely if the client keeps hold in their property. Previously, property owners there and not using a residency permit were allowed to remain as much as a complete of 90 days out of a period of 180 consecutive days.

It is to get even better in 2014. ‘Expats looking to renew or get residence permits will find the method changes for the higher again in spring 2014. There are plans to make use of dedicated government agencies to take over the method in preference to the present system that goes in the course of the police,’ explained Walker.

Another significant change is with reference to work permits. Foreigners who obtain a piece permit in Turkey are actually automatically granted a residence permit. And more buyers were encouraged by changes to Turkey’s reciprocity law which has opened the valuables market to buyers outside of Europe, including the center East and Russia.

Proof that Turkey’s property market is taking advantage of changes to its laws are the consistently rising property values. The typical price of units on new developments in Istanbul increased by 1.06% between September and October, and 14.18% year on year, in step with an index produced by GYODER, a true estate trade body.

Turkey’s economy and property market has outperformed the remainder of Europe since 2010 when the rustic recovered quickly from what turned out to be a chronic slump in lots of the remainder of Europe. Currency changes also currently favour some foreign buyers.

‘The excellent news for investors considering purchasing a property in Turkey is the aggregate of rising prices and the truth that buyers can now get more for his or her money,’ said Monica Anca, director of property firm Universal 21.

Most analysts are predicting that the Turkish currency is prone to rise in value within the next one year than fall further with Bloomberg economists suggesting that Turkey offers the superior growth prospects in emerging markets.

‘Turkey’s economic growth set to outpace the remainder of Europe again next year, which implies now could be a superb time to think of investing in cities like Istanbul where property prices are still relatively affordable by western European standards and rising fast,’ said Adil Yaman managing director of Universal 21.

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