Currently viewing the tag: "Coventry"

UK Cities With Best and Worst Property Investment Yields

UK Cities With Best and Worst Property Investment Yields

Best And Worst UK Property Investment Hotspots

Rental returns on buy to let properties are best in cities like Southampton, Manchester and Nottingham, where as many as one in four properties are owned by landlords in the private rented sector.

Portfolio landlords and property investors are looking beyond London to identify regions where rental yields are almost three times as high as in the capital.

Rental yield is calculated by measuring the rental income against the properties cost

The latest data on buy-to-let yields provided by the HSBC bank, also shows the proportion of properties in each area that are already owned by landlords, with landlords already owning more than one in four properties in many of the top-yielding areas.

HSBC’s report draws on official data from the Office for National Statistics (ONS) and the UK Land Registry with rental data provided by Home.co.uk.

Top Property Investment Hotspots Revealed

Top Property Investment Hotspots Revealed

  • Southampton, currently tops the list for rental returns with rental yields of 8.73% Manchester has rental yields of around 7.98%
  • Nottingham has rental yields of around 7.67%
  • Blackpool has rental yields of around 7.63%
  • Hull has rental yields of around 7.47%

In all of these areas, except Hull, private rental sector (PRS) landlords already own more than one in five properties.

These areas offer relatively low property prices and have strong demand for rental property from large student and young professional populations – the characteristics that the experts say make for excellent buy-to-let investments.

Top 10 Property Investment Hot Spots By Rental Yields

Rank

Location

Housing privately rented (%)

Average house price

Average monthly rent

Gross rental yield (%)

1 Southampton 23.42 £143,011 £1,040 8.73
2 Manchester 26.85 £104,244 £693 7.98
3 Nottingham 21.64 £86,000 £550 7.67
4 Blackpool 24.16 £77,899 £495 7.63
5 Kingston upon Hull 19.02 £68,243 £425 7.47
6 Coventry 19.02 £110,029 £650 7.09
7 Oxford 26.11 £254,514 £1,489 7.02
8 Portsmouth 22.28 £146,709 £795 6.50
9 Liverpool 21.75 £91,175 £494 6.50
10 Cambridge 23.91 £185,414 £1,001 6.48

The lowest rental yields were registered in areas such as London where recent property price rises have outpaced the growth in rental yields and in some areas like Westminster 38% of property is privately rented.

Worst 10 Property Investment Areas By Rental Yield

Location

Housing privately rented (%)

Average house price


Average monthly rent

Gross rental yield (%)

Kensington and Chelsea 33.97 £1,236,605 £2,968 2.88
Thanet 21.96 £189,362 £524 3.32
Hastings 27.19 £184,787 £520 3.38
Haringey 30.33 £425,541 £1,200 3.38
Westminster 37.56 £890,272 £2,578 3.47
Hammersmith and Fulham 30.05 £685,797 £2,004 3.51
Richmond upon Thames 20.55 £540,379 £1,699 3.77
Camden 30.46 £715,831 £2,383 3.99
Ipswich 18.75 £158,925 £546 4.12
Lincoln 19.36 £124,789 £433 4.16

Head Of Mortgages at HSBC Peter Dockar, said: “House prices in the top-yielding locations – while still out of reach among many first time buyers – are relatively affordable for landlords investing in property and the demand from young professionals has pushed up rents and driven up the returns. London is often seen as the haven of property investment with many believing the streets are paved with gold. However, while the highest rents in the country are an attractive draw for landlords, high house prices in the capital squeeze yields and limit the returns available. As a result, returns can often be far more attractive in other areas so it certainly pays for landlords to do their research.”

New LHA Rates for 2014 -2015 Published

New LHA Rates for 2014 -2015 Published

Local Housing Allowance (LHA) Rates Change In April

Every year the Government publish Local Housing Allowance (LHA) rates that are periodically reviewed and payment levels in some UK regions may change without notice.

The April 2014 – March 2015 LHA rates have now been published and the revised list makes interesting reading for landlords and letting agents who are willing to accept tenants claiming benefits.

UK private rental sector landlords are able to ensure rental property profits by allowing their properties to be let to tenants claiming housing benefit (HB), with local authority rental payments exceeding buy-to-let mortgage payments.

Continue reading »

Tagged with:
 
Buy-To-Let Mortgage Lending Increases By 31%

Buy-To-Let Mortgage Lending Increases By 31%

UK Buy-To-Let Mortgage Lending Hits £5 Billion (GBP)

The resurgence of property investment in the UK means that landlords are extending their rental property portfolios and cashing in on the strong demand for rental property from “generation rent”.

The buy-to-let boom has seen mortgage lending reach another milestone as latest figures released by the Council of Mortgage Lenders (CML) show that mortgage borrowing has hit a five-year high, and the Bank of England’s (BoE) historically low interest rates are predicted to fuel even more growth in the sector.

Buy-to-let mortgage lending has continued to excel expectations as the latest CML data shows £5.1 Billion (GBP) was advanced to landlords in the second quarter of 2013, that’s 21% up on the first quarter of the year and up 31% on 2012 figures.

The new governor of the Bank of England, Mark Carney, has indicated that interest rates are expected to remain low until at least 2016, encouraging further growth in the UK private rental sector (PRS).

Continue reading »

UK Buy-to-Let Needs New Landlords

UK Buy-to-Let Needs New Landlords

The demand for rental property in the UK is such that many experts are predicting that as many as 1 in 5 households will be living in rental property as tenants by 2016.

In order for this estimate to be accurate there will need to be an additional 1.1 Million more rental properties made available in the UK private rented sector.

Experienced property investors are expanding their rental property portfolios and the demand for rental property is so strong that many new property investors are being encouraged purchase property for longer term rental yields and become landlords.

UK PRS landlords are reported to control as many as 4.8 Million PRS rental properties throughout the UK, up from the reported 2.5 Million in 2002.

PRS rental properties in London account for 27% of all residential properties while social renting now accounts for just 24%.

Continue reading »

Banks and building societies have made widespread changes to their UK mortgage rates in recent weeks, with a growing number of lenders raising rates on tracker loans as the escalating Eurozone debt crisis drives up the cost of funding these mortgages.

This week, Nationwide Building Society and Halifax – part of Lloyds Banking Group – became the latest high-street lenders to increase their tracker rates.

Halifax has upped the rates for tracker mortgages by as much as 0.30 percentage points, raising its two-year tracker from 3.04% to 3.34%.

It is available for loans up to 75% of a property’s value, with no fee.

Woolwich, Santander, Northern Rock, Accord & Barclays Wealth are among the other lenders to have raised their rates over the past month.

Not all mortgage rates are heading upwards.

At the same time as increasing several tracker rates, Nationwide Building Society cut the cost of some fixed-rate products – including its five-year fix, which was reduced from 3.69% to 3.59%.

Other mortgage lenders have eased their criteria and launched attractive products. On Wednesday, Barclays re-entered the 90% loan-to-value market, after it stopped offering these loans three years ago.

Coventry Building Society also launched a new range of fixed and capped rate products that come with no early redemption charges this week.

These are the current ‘best-buy’ mortgages deals available now.

Remortgages

While tracker rates have been going up, mortgage brokers say there are still a number of competitive deals available. Santander has a two-year tracker at 1.95% – Bank of England (BoE) base rate plus 1.45% – available up to 60% loan-to-value with a £1,995 fee. It comes with a free valuation and free legal work.

For those who want a longer-term tracker,

HSBC’s lifetime tracker at 2.49% – BoE base rate plus 1.99% – is a fabulous deal. It comes with no fees and no early repayment charges, which means borrowers can remortgage to a fixed-rate deal at any point during the mortgage term.

Fixed-rate deals remain cheap and have not seen any major rate movements. Leeds Building Society is still offering its 2year fix at 1.99%, available up to 75% loan-to-value (LTV), with a £1,999 fee.

Chelsea Building Society’s five-year fix at 3.29%, available up to 70% loan-to-value (LTV) with a £1,495 fee, is the market leading longer term fix.

First-time buyers: 90% deals

Barclays’ move to increase its maximum loan-to-value from 85 per cent to 90 per cent has provided first-time buyers with more options. According to Moneyfacts, the financial data provider, there are now 253 mortgages requiring only a 10% deposit, compared with 206 in October 2010 and just 101 in October 2009.

It is offering a three-year fix at 4.99% with no fee or a five-year deal at 5.49%, with a £499 fee. Its maximum loan size is £500,000.

Cambridge Building Society and Melton Mowbray Building Society are also offering five-year deals at 5.39%.

Large loans

Competition has increased in the large-loan market recently, with more high-street lenders offering these type of mortgages.

RBS Private Banking has a two-year tracker at 2.19% – BoE base rate plus 1.69% – available up to 50%loan-to-value, with a £999 fee.

NatWest has a two-year fixed-rate at 2.65%, available up to 60% loan-to-value, with a £999 fee.

Most wealthy borrowers will typically be better off opting for Barclays Wealth’s two-year tracker at 2.49%.”

Self-employed

Skipton Building Society has some of the most competitive deals for self-employed borrowers as it will consider retained profits in a limited company. It offers a two-year tracker at 1.98% – BoE base rate plus 1.48 percentage points – available up to 60% loan-to-value, with a £1,995 fee. It also has a two-year fix at 2.48%.

Read the Full FTSE article here

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!