Currently viewing the tag: "housing market"
RLA Hit Back At Rent Control Calls

RLA Hit Back At Rent Control Calls

Rent Controls Are Not The Answer
To The UK Housing Shortage

The Residential Landlords Association (RLA) have hit back at politicians and housing and homeless pressure groups who are openly calling for rent controls in the UK’s private sector by claiming that private sector rents are falling in real terms following analysis of the official English Housing Survey (EHS).

The English Housing Survey (EHS) results are taken from a continuous survey conducted by the Department of Communities and Local Government (CLG) and show that average private sector rents increased by just £10 from £153 to £163 (GBP) per week in 2014, representing a rise of 6.5%.

In contrast, average weekly rents in the UK’s social sector increased by more, with weekly rental prices increasing 25.4%, rising by £18 from £71 to £89 (GBP).

Continue reading »

Property Investors Should choose Investment Properties Wisely

Property Investors Should choose Investment Properties Wisely

Property Investors Warned To Choose Potential
Property Purchases Wisely

Savvy property investors know that profit is made when buying property, not when it is sold, as equity can be locked in upon purchasing below market value, giving the property investor greater control of the purchase price by negotiating a deal with the seller, (vendor), rather than what the property eventually sells for on the open market.

Property investors are different from ordinary residential property buyers, as they are of the mindset that the property should meet all the financial requirements of a landlord first & foremost, rather than paying the high end retail price for a property just because it looks nice.

Many new and amateur property investors make the common mistake of falling in love with a property and begin to let their heart rule their head, becoming so emotionally involved that they lose control of their finances and let their emotions win, overspending massively and reducing any potential yield.

Continue reading »

 

UK Property Market Bubble Warning

UK Property Market Bubble Warning

OECD Warn About Sustainability Of UK Property Market

The Organisation for Economic Cooperation and Development (OECD) has warned about the sustainability of the UK property market as residential property prices gain more upward momentum across the UK, and continue surging phenomenally in London, prompting growing fear of another property market bubble, as the UK economy continues to recover from the financial crisis in 2008.

A property market bubble occurs when property prices become so over inflated that they become unsustainable and the market collapses

The Confederation of British Industry (CBI) also aired concern saying that they are on high alert about the property market in London and the South East of England as house prices surge.

The Bank of England are said to be monitoring the situation, however BOE policy maker, Ben Broadbent reckons there’s no need for alarm over the UK property market as they have already curtailed incentives for home loans through the Funding for Lending Scheme.

Rising property prices are a good thing, they are a good indicator of the overall health of a nation’s economy, and the current government are confident that prices will continue to rise, hence the introduction of financial incentives such as the Help To Buy scheme, encouraging property buyers with loans or guaranteed underwritten mortgages, allowing them to gain a stake in the UK property market.

Continue reading »

Help-To-Buy Scheme Could Threaten UK Housing Market

Help-To-Buy Scheme Could Threaten UK Housing Market

The Help To Buy Scheme Could Be Scaled Back Amid Concerns That The UK Property Market Could Be Heading
For Another Property Bubble

George Osborne, the Chancellor of the Exchequer has said that the Bank of England are being vigilant on UK house price rises and they would intervene if the situation becomes necessary.

The Chancellor’s comments come after the Organisation for Economic Co-operation and Development (OECD) warned that the booming UK property market could threaten the economic recovery of the country.

Possible action could include reigning back the Government’s Help-To-Buy scheme, which enables people with only a small deposit to take out a mortgage.

In a report the OECD said that “The UK should introduce measures to address the risks of excessive house price inflation, as property values now significantly exceed long-term averages relative to rents and household incomes. Access to the Help to Buy scheme should be tightened, and buyers should be required to put down bigger deposits for mortgages”.

In response to the report, Mr Osborne said: “I’ve said we should be vigilant about the housing market and this Government has given the Bank of England the power and the tools to do what they felt needed to be done to help to contribute to building a resilient economy in an independent way”.

The Help to Buy scheme enables the Government to place a second charge on properties purchased under the scheme, allowing them to have some degree of profitability and allow them a small degree of control over the UK property market.

People buying property worth up to £600,000 (GBP) using a deposit of just 5% may be grateful of the Government’s help but many fail to realise the full implications of the scheme, or spot the Government tactic of controlling properties.

The Government either top up the purchasers 5% deposit with 20% of the property’s value or it will underwrite a portion of the debt allowing lenders to advance purchasers with high loan-to-value mortgages that the Government guarantee.

The £600,000 (GBP) upper limit of the Help-To-Buy scheme has been widely criticised for being too high, however, recent figures show that the average cost of a property bought using the scheme was just £148,000 (GBP).

Concerns are rife that another property bubble may be formed in the UK property market following a continuing run of positive house price trends.

Mortgage lender, Nationwide recently reported that property values had risen by 10.9% during the last 12 months, the first time annual house price inflation has reached double figures since April 2010.

Data from the Land Registry also shows that average property prices in London have already surpassed the previous 2007 peak.

Recent property price increases have caused the typical average cost of residential property in the UK to rise to £262,770 (GBP), according to Zoopla.

New regulations to control borrowing were introduced at the end of April 2014 to ensure prospective property owners are not risking taking on too much debt.

Under the Mortgage Market Review, lenders are required to carry out stringent affordability checks, including making sure borrowers can continue to meet the mortgage repayments if and when interest rates rise.

However, data on the number of mortgage approvals for residential property purchases appear to suggest that the market may be moderating, with the Bank of England reporting a dip in loan approvals for the second consecutive month during March 2014.

Banks To Be Stress Tested On 35% Drop In House Prices

Banks To Be Stress Tested On 35% Drop In House Prices

Banks Stress Tested On 35% Drop In House Prices
And 5% Rise In Interest Rates

UK and Continental banks are to be stress tested using a worst case scenario in an effort to assess if they could cope with a house price slump of 35% or a sudden spike in interest rates to more than 5%, the exercise will be monitored by the Bank of England.

Sky News broke the story on Monday ahead of an official announcement on Tuesday by the Prudential Regulation Authority (PRA), after learning that banks would be subjected to an armageddon style scenario to see if they have sufficient capital to withstand another economic slump.

A series of commercial real estate losses is expected to be applied to the banks’ balance sheets as part of the tests, but it’s not certain whether or not the interest rate hike will be quantified as part of the tests, but the 35% slump in property prices could reveal if banks and building societies would need to raise billions of pounds of fresh capital to survive, unless they can demonstrate their ability to withstand such a huge slump.

Continue reading »

Activate Your Wealth Powerswitch To Increase Your Property Income

Activate Your Wealth Powerswitch To Increase Your Property Income

Activate Your Wealth Powerswitch To Increase Your Property Income

The content offered on the links below really isn’t for every property investor and if you’re easily offended, don’t read the rest of this post!

If you are a freebie seeker, or have no intention of ever using property to build your own wealth…Sorry… this offer definitely isn’t for you!

It’s only for people who are willing to work hard, people who try their best to learn a little more every day, and property investors who want to get more cashflow out of their buy-to-let property portfolios.

You’ll know if this offer is right for you.

Your Private Link: Activate the switch

  • It’s time to leverage the skills you already have.
  • It’s time to shift the world’s perception of what YOU can do as an investor.
  • It’s time to neutralise the worry of things outside your control…Interest rates, the housing market, taxes, regulations.

Because after this, you won’t have to worry.

Your Private Link: Activate the switch

It’s time to take action and lead the way, time to grow a real business that gives you a proper income, and to command authority on your terms.

This is not a ‘business opportunity’, get rich quick scheme or a ‘sack your boss’ offer…

(I have always thought that our readers were smarter than that!)

And if you are one of those people who believe that ‘working from home on the internet using one weird trick’ is going to make you a fortune…Then maybe its best you move on to the next blog post or find an alternative site to read.

Because you only need to click the link if you are willing to use your brain to get what you really want.

Your Private Link: Activate the switch

See you on the inside!

Governor of the Bank of England thinks Northern Ireland's House Prices Are Not Keeping Pace With Rest Of UK

Governor of the Bank of England thinks Northern Ireland’s House Prices Are Not Keeping Pace With Rest Of UK

Northern Ireland House Prices Not Keeping Pace With Rest Of UK

Mr Carney told the Andrew Marr programme that “if you look at the UK as a whole, everywhere bar Northern Ireland – we are now seeing house prices begin to recover”

On Sunday 16th February, the Governor of the Bank of England, Mark Carney said in a BBC interview with Andrew Marr said that Northern Ireland is the only part of the UK where house prices are not recovering, stating: “If you look at the UK as a whole, everywhere bar Northern Ireland – we are now seeing house prices begin to recover, so it is a more generalised phenomenon”.

However, Mr Carney’s comments provoked a backlash from Northern Ireland’s finance minister Simon Hamilton who reckons that Mr Carney’s remarks were at odds with analysis carried out by Stormont’s Department of Finance and Personnel (DFP).

Mr Hamilton posted on his Twitter account, “Doesn’t tally with DFP analysis. Never thought I’d have to correct a governor of BoE!”

Continue reading »

Expect 1 Million More PRS Tenants In 5 Years

Expect 1 Million More PRS Tenants In 5 Years

UK PRS should prepare for a million more tenants, say Savills

Giant UK estate agency, Savills are predicting a massive increase in the number of tenants living in the UK private rented sector (PRS) over the next five years.

The company is also predicting that more UK housing associations will seize upon a fantastic business opportunity and that these associations will add to increasing competition for private rented sector landlords.

Savills say there were 4.3 million tenanted households in the private rented sector in the UK during 2011 and tenant demand remains strong despite the recent upturn in the UK economy and recovering housing market, leading to the prediction of at least another 1 Miliion additional tenancies being required over the next five years.

Continue reading »

Councils must be free to borrow more to build new residential properties

Councils must be free to borrow more to build new residential properties

Councils must be free to borrow more
to build new residential properties

The Government must allow Local Authorities to borrow more money to spend on building so they can tackle housing shortages and build 60,000 extra residential properties in five years, according to the Local Government Association

The Local Government Association (LGA) said that the nine councils listed below were unable to take on any loans at all, even though they have over 40,000 people on accommodation waiting lists.

  • Darlington Borough Council
  • Dudley Borough Council
  • Exeter City Council
  • Gosport Borough Council
  • Harrow Council
  • Royal Borough Greenwich Council
  • South Cambridgeshire District Council
  • Waverley Borough Council
  • Woking Borough Council

The LGA said lifting a cap on local authority borrowing would allow up to 60,000 new residential properties to be built in the next five years.

Continue reading »

Mortgage Loan Approvals Increase

Mortgage Loan Approvals Increase

More “Help To Buy” Mortgage Lenders Announced

The number of mortgages given to first-time buyers increased by a third in the 12 months to August 2013 according to the latest data from the Council of Mortgage Lenders (CML), with new entrants to the property market accounting for 44% of all residential property purchases during the month.

The CML figures were published as Barclays became the latest high street lender to confirm it was signing up to the second part of the government’s Help to Buy scheme, which is designed to make more 95% mortgages available to first-time buyers, second steppers and home movers.

Barclays join Santander, RBS, Halifax and HSBC in confirming it will use the taxpayer-backed guarantee to make high Loan-To-Value (LTV) mortgages available for property purchasers, meaning that more than half of UK mainstream mortgage lenders are now signed up to provide more mortgages at higher loan to value ratios.

Continue reading »

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!