Currently viewing the tag: "rental yields"
Landlords Could Be Taxed Out Of The Market

Landlords Could Be Taxed Out Of The Market

Conservatives Set About Raising Increased
Tax Revenue From Landlords

Before the general election the Conservatives were the only political party to not openly target landlords and property investors with manifesto rhetoric, making them the property professional’s choice for power.

Even before the budget statement was delivered by Mr Osborne, there was plenty of press coverage about the generous tax treatment enjoyed by private rental sector (PRS) landlords and buy to let property investors.

So it was of little surprise that the Chancellor chose to turn to the private rental sector in order to raise some additional revenue for the government.

Conservatives Vowed To Leave PRS Landlords AloneSpotlight predicted that this would happen after the Conservatives were elected, and this year’s summer budget could be just the tip of the iceberg.

George Osborne before the  summer 2015 budget announcement George Osborne’s post election Budget announcement, made earlier in July, contained two  important changes to buy-to-let taxation that will impact on portfolio landlords and higher rate  tax payers.

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UK Property Investment Increases 8% In A Year

UK Property Investment Increases 8% In A Year

UK Property Investments Rise By 8% During 2014

UK property investment is booming again, thanks in part to the Government changes to the way pensions are controlled. The changes allow interested property investors to release pension funds for property purchases early, because bricks and mortar continue to offer a greater return than pension funds currently provide.

Property investment in the UK is becoming even more popular with the number of property investors increasing by 8% during the past year, according to data recently released by letting agent, Ludlow Thompson, with landlord numbers rising to approximately 1.63 million controlling approximately 3.1 million private rental sector (PRS) properties in the UK. 

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Buy-To-Let Property Investors Reap High Rental Rewards

Buy-To-Let Property Investors Reap High Rental Rewards

Activity In UK Buy-to-Let Property Market
Continues To Increase

Activity in the UK Private Rental Sector (PRS) has reached an historic high, with demand continuing to heavily outstrip the supply of available rental properties, according to the latest National Rental Report by Sequence, owners of Barnard Marcus, Fox & Sons and other well known high street property chains.

The Sequence rental index shows that activity in the UK’s private rental sector hit an 11-year high last month, with strong tenant demand driving up rents to a new monthly average of £751 (GBP).

New tenancies being agreed have increased by 6%, when viewed on a monthly basis, and the figures were actually up 18% when viewed annually.

The strong demand for rental property from would-be tenants is helping to fuel a rise in the cost of average rents, with prices up 2% month-on-month and 6% compared to July last year.

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Rental Yields Drop As UK Residential Property Prices Rise

Rental Yields Drop As UK Residential Property Prices Rise

Property Price Increases Wipe Out Landlord Rental Yields

Residential property prices are rising so fast that they are outstripping rental price increases and some private sector landlords’ rental yields are suffering.

Landlord rental yields in the UK private rented sector (PRS) have fallen almost everywhere in the UK, and any rise in the rental prices are being outpaced by rising residential property prices.

Countrywide have said that in May 2013, rental yields declined everywhere in the UK except in the East of England (up 0.2% to 6.2%) and Scotland (up 0.1% to 5.8)

Rental yields in the South-West and the Midlands remained the same at 5.7% and 6.5% respectively. The greatest rental yields in the UK PRS are being achieved by landlords who own rental properties in Wales (6.6%), the Midlands (6.5%) and the North (6.4%).

Average monthly rents on two- and three-bedroom properties in the UK private rented sector increased up by 0.5% and 0.3% in May to £770 (GBP)and £884 (GBP) respectively, but rental prices for one-bed properties fell by 0.6% to £674 (GBP) and rents on four-bed properties were also down by 2.1% to £1,363 (GBP).

Wales had the greatest increase in average monthly rental prices, up 4.9% on April 2013, followed by Scotland (up 2.2%), the North (up 1%) and South-West (up 0.5%).

Despite some regional increases, the average monthly rental price in England, Scotland and Wales fell by 0.2% in May 2013, but rents are still 0.8% higher when viewed year-on-year.

The Midlands has seen the greatest decrease in average monthly rents, down 1.4% month-on-month, followed by the South-East and central London, both down 1.3%. Scotland has the lowest average monthly rent at £617 (GBP) per calendar month (pcm) and central London the highest at £2,340 (GBP) pcm.

Countrywide have taken their data from over 5,000 rental properties in the UK.

Nick Dunning, Commercial director at Countrywide said: “Despite the decrease in yields in May, rental yields remain strong and are providing attractive returns for buy-to-let property investors compared to other types of investment.”

Residential Property Prices Continue To Rise

Residential Property Prices Continue To Rise

Residential Property Prices Up For Fourth Consecutive month

UK residential property prices increased for the fourth consecutive month in May 2013, according to the latest Halifax House Price Index (HPI).

Data from the latest Halifax House Price Index has shown that UK residential property prices rose by 0.4% in May 2013.

This means that the value of UK residential properties have now risen for four consecutive months, with prices in the three months to May 2013 coming in at 1.5% higher than in the preceding three-month period.

UK residential property prices have been rising modestly on this quarter-on-quarter measure since December 2012, with price increases between 1-2% in each of the past five months, while an increase in residential property sales has also been observed in the property market.

The Halifax House Price Index report as a whole indicated that UK residential property market conditions are better now than they were in 2012, with the ratio of residential property sales against the stock of unsold properties improving and demand for UK residential property purchases gradually gaining momentum.

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UK attracting Overseas Property Investors

UK attracting Overseas Property Investors

High Rental Yields Producing Property Profits

Chinese, Malaysian and Far East property investors are buying large swathes of investment properties in the UK as they are being drawn in by strong rental yields and weak economy as the price of Sterling (GBP) is overshadowed by the strong Yen.

This influx of Far Eastern property investors is driving the demand for new build investment properties in the UK’s major regional cities and their appetite for property profit is outpacing demand from Greek, Italian, German and other European property investors who are also keen to snap up property bargains.

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Landlords Need To Educate Themselves To Take Advantage Of Products And Services Designed To Help Them And Their Tenants

Landlords Need To Educate Themselves To Take Advantage Of Products And Services Designed To Help Them And Their Tenants

If you are considering becoming a Buy-To-Let landlord you should calculate the costs involved and do plenty of research before taking any financial risk.

This is according to Sim Sekhon, spokesman for specialist landlord services provider, Legal 4 Landlords, who explained that many new landlords rush in without calculating mortgage repayments or repairs and maintenance to rental property. He said “There are an increasing number of property investors who have been forced to adapt their strategies due to the instability of the UK property market, and they have ended up as reluctant landlords, when they are unable to flip properties. They end up either self managing the property or handing to a letting agent to deal with, often forgetting to calculate running costs. Landlords need to remember that as far as rented property is concerned, profit without Rent Guarantee insurance is a long-term investment, and property maintenance and repairs will be a cash drain.”

Landlords must treat their rental properties as a business and calculate all of the necessary financial requirements of running it before purchasing an investment property, and investors should plan to reap the benefits both in the short and long term.

Mr Sekhon added: “Landlords can increase rental yields and reduce void periods by Tenant Referencing all applicants and using rent Guarantee insurance for all of their tenants. We have developed a range of specialist products and services for landlords and letting agents to get the most from UK Buy-To-Let whilst providing long term reassurance for tenants.”

The full range of all products and services offered by Legal 4 Landlords can be found here

UK Private Rented Sector Survey by BM Solutions

Buy To Let Landlords See Increasing Rental Yields

Demand for good quality rental properties in the UK is still increasing despite the doom and gloom reported by the media about the UK property market.

New data from BM Solutions shows that UK landlords with rent guarantee insurance in place are seeing an average 4.8% growth in monthly rental yields.

Buy to let property investors across the UK saw a rental yield of 6.1% during 2011 with the average monthly PRS rent climbing up to an average of £716 per month.

While 2011 rental yields were marginally lower than the 6.2% observed in 2010, landlords with rent guarantee insurance remained optimistic as residential property rental values continued to increase across much of the UK.

The research shows the North of the UK saw higher rental yields than in the South.

The highest was 7% in the North followed by the North West and Yorkshire and Humber both at 6.3%.

In Wales yields increased 6% and in the West Midlands and the East Midlands there was a rise of 5.9%.

The South of the UK saw rental yields rise, but increases remained below the national average.
• In Greater London rental yields were up by 4.8%,
• Up 5% in the South West
• Up 5.3% in East Anglia
• Up 5.2% in the South East.

While the national average monthly rent increased by 4.8% overall, there were more significant gains in regional areas. The largest increases were in East Anglia at 8% and the North at 6.9%. The South East and Greater London recorded rises of 5.8% and 5.6% respectively. In contrast, rents increased by just 0.1% in Wales and 0.7% in Scotland.

Average rents in London were more than twice the national average at £1,212 per month. The average monthly rent in the capital is 69% higher than UK average of £716 and 41% above that in the South East at £858, the next highest region.

The lowest average rents are in Wales at £474 per month, and in the North and Yorkshire and the Humber both are £488 per month.

Phil Rickards of BM Solutions said: “There is a very healthy demand for rental properties across the UK right now, which in part may be driven by the costs associated with buying a home: costs which, for some, will only increase as the stamp duty holiday has ended. Average gross yields on a buy to let property have been just over 6% for the past two years, driven by growth in rental values. However, with house prices likely to remain broadly flat again this year, buy to let landlords can again expect little capital gain on their investment in 2012”.

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