Portfolio Landlords Facing Mortgage Difficulties

Buy to let investors with 4 or more properties in their portfolio are starting to feel the impact of the change in regulations for lending that came into force in September this year.  I was speaking to Tom James at Thomas Nicholas Financial Services, to find out what impact this has had for local investors.

He explained that previously lenders assessed a buy-to-let mortgage applications based on the rental income and property value of the property they are lending against. From 30 September 2017, any landlord who owns four or more mortgaged buy-to-let properties will have to submit income and mortgage details on all of them every time they re-finance one, or purchase a new property.

This has hit investors looking to purchase another property for their portfolio or looking to re-finance their properties. The criteria has become much stricter than we have seen in the past so lenders are refusing to remortgage a property that previously fit their criteria.

This is resulting in some landlords increasing the equity they have in a property, considering selling their investment property and in some cases deciding not to invest in additional properties. This is not good news for tenants, who in Bingham are seeing rents continue to rise as the stock of available rental property does not satisfy the high demand in the area. 

You can do something to minimise the impact of these changes.

It’s vital that a landlord with a portfolio of properties regularly asses the rental levels to ensure they keep up with the current market rates.  Inspect the condition of your properties, it is vital they are being kept in a good condition to ensure you receive the maximum return on your investment and to minimise void periods.

If you would like to review your current portfolio performance please contact me to arrange a no obligation meeting to assess the current rent and property conditions.

You should also contact Tom and look at the lending you have in place to ensure you are fully aware of what you should expect when you need to renegotiate your borrowing.

Katie Archer - Belvoir Lettings Bingham 01949 714101

Tom James - Whole of market, free of charge mortgage advice: 0330 1200324

Are Village Properties Becoming More Popular?

Recently we have had various different properties to let in the Vale of Belvoir and villages surrounding Bingham. Village properties are seeing an increase in popularity whether it be a one bedroom cottage or detached farmhouses.

When we first started managing properties to let in the Vale of Belvoir area 19 years ago many of the village properties were less well cared for by landlords and often cold, draughty properties. Today our Landlords are building or renovating rural properties to appeal to a different type of tenant.

As renting becomes the norm many are seeing it as a lifestyle choice and many rural properties offer easier commutes to larger cities and a quiet space for those working from home. Villages also benefit from improved broadband speeds.

Tenants get the opportunity to live in a home that they may not have considered in the past or have the opportunity to buy, and enjoy a rural lifestyle. We find tenants may use their time in rented property to really get to know an area before they purchase.

Of course the other big draw is schools. With many village primary schools offering an excellent level of teaching, we find this does draw many families to rent in the Vale of Belvoir and Bingham.

What should you consider if you have a rural property to let?

Parking and secure outside storage is important for any family living rurally as hobbies are important and come with lots of expensive gear!  Many people looking to rent in the villages have or would like to have pets – is your property suitable?

If you are thinking of letting out a property please give me a call and we can talk through the important things to consider. Every rural property is different and requires a different approach so for honest advice from a local letting specialist speak to me on 01949 714101.

Selective Licensing Facing Some Nottingham Landlords

One of our landlords asked us this week if he was likely to be affected by the Selective licensing scheme which could be brought in by Nottingham City Council.

The proposed scheme which could be brought in during 2018 would see areas with a high proportion of rented homes fall under the licensing requirements – some 32,000 properties. The aim of the licence is to tackle poor housing standards in the private rented sector that do not fall into the HMO category.

Landlords in these areas would see a cost of a licence ranging from £400 to £655 depending on what accreditation they had.

The East Midlands Property Owners Association who represent a large number of landlords in the city have expressed concerns.

Will the Nottingham City Council be able to improve standards in Nottingham’s private rented sector if they are proposing to only visit 50% of the properties where landlords are not accredited?

EMPO believe that the new powers under the Housing and Planning Act now provide the council with the sufficient tools it needs to address the issues that the licensing scheme proposes to resolve.  It’s now up to the Secretary of State to authorise this size of scheme so we will see what the decision is.

What is for certain – if the licensing goes ahead it is another cost the landlord will face and this could be the final straw for some investors who may decide to exit the Nottingham private rented sector.

What about my landlord with a property in Bingham? If the licensing goes ahead it could push rents up in the city if landlords try to recover costs and the supply of rented property decreases.  Bingham could see an increased demand from tenants which would potentially improve rental yields.

If you are considering investing in property then it’s very important to consider the local climate and ensure you have a good understanding of what tenants are looking for.

For honest advice on realistic returns for buy to let investments contact your local lettings specialist Katie Archer 01949 714101.

Fab 2 bed in Calverton £125k 5.3% return...

Thomas James have just listed this lovely 2 bed property in Calverton. It is has been advertised for sale at £125,000 and comes with a garage. A property in this condition in this area would let for around £550 pcm which would give a potential return of 5.3%. 

Its not often we see property advertised at this sort of price that doesn't require a lot of work so I am sure it will sell as quickly as it would let!

http://www.rightmove.co.uk/property-for-sale/property-69216305.html


      

Fancy a Project? Carnarvon Close, Bingham

This flat requires work to bring it up to the current standard for lettings, but I believe it could make a sound investment for any landlord, if they are prepared to put in a bit of work.  

Lettings in Bingham are few and far between at the moment, and we are attracting highest ever rental incomes.  With a new kitchen and bathroom, carpets and a lick of paint I would imagine this flat could achieve £595 - £650 PCM.

Full details are here:

http://www.rightmove.co.uk/property-for-sale/property-69025463.html

Has the Bingham Housing Market stalled?

I wish they would get on a start building the new houses they have been talking about. Waiting for the developments to take shape has taken longer than anyone imagined and I believe this has had an impact on properties for sale in Bingham.

There seems to be fewer houses on the market for sale and we have found that properties are achieving higher rents than this time last year.

Waiting for the new developments feels like the housing market in the town has stalled. There certainly seems little available in the price range for your traditional first time buyers in Bingham. There is a massive demand from families in the area and this is pushing up rents as there are fewer homes on the market for them to purchase.

If you are looking to move up or down the housing ladder your options are limited and there is a reluctance to pay over and above the market rate as the impact of the new development could affect this further down the line.

Investors are usually looking to spend in the region of £150,000 to £180,000 and achieve a yield of at least 5% and there are not many options currently available so fewer rented properties are coming onto the market. This could a reason for the increase in rent seen in the town.

I expect the new build development will enable a lot of people waiting to move to proceed up the ladder and this will increase the number of properties on the market throughout the town. There will be more options available and this could affect the values. 

If you are considering investing in property in the area you must look ahead to the future planning of the area. It is vital for an investor to consider the capital growth they expect to achieve. For honest opinion on rental returns for investment properties please give me a call 01949 714101 or email me the details katie.archer@belvoirlettings.com.  

Bingham Regeneration Plans

Rushcliffe Borough Council recently reported on the progress of the Master plan being developed by the Bingham and Radcliffe on Trent Growth Board. The aim of the board is to shape the future of economic development and regeneration for Bingham and Radcliffe on Trent. 

It's clear the Borough Council believe Bingham will continue to see significant growth over the next 5 to 10 years. The Growth Board aims to manage this and develop a clear vision for the future of the town.

The council have been able to acquire land at Chapel Lane in Bingham with the intention of providing employment opportunities in the area, this follows the council's purchase of land to extend the existing industrial estate.

Councillors believe that the master plan has the potential to be a major influence in terms of employment and community provision in Bingham. 

We feel that the town is ideally located for commuting to larger towns and cities, with additional employment opportunities in the town the popularity of living in Bingham will only increase. 

Families are drawn to the town for its location as well as the good primary and secondary schools. If you are considering investing in a buy to let then you need to consider who will be looking to let in Bingham. 

We see a high demand for 3 bedroom properties, keep an eye on our blog for honest rental returns on properties that come on the market for sale or give me a call on 01949 714101. Katie Archer. 

Average Rents increase across the UK

The rental index for Belvoir Quarter 1 2017 has been released which looks at the rents Belvoir offices are achieving across the UK.   It is produced by property professional Kate Faulkner and is available at www.belvoir.co.uk.

The overall trend for the UK shows the average rent of a property is at an all time high and up 4.5% versus Q1 2016. 

Looking more locally at the East Midlands our rents in Q1 2017 have recorded a 7.5 % increase when compared to the same period in 2016.  This certainly reflects what we are seeing in Bingham. 

The reasons for the increase can be due to the larger number of higher value properties, which when coupled with less rental stock in the market can artificially raise the year on year rental increase. 

However we are seeing a new trend in offices throughout the UK.  There are increases in rents where there is a low availability of properties on the rental market.  This is something we see in the Bingham and surrounding villages.  The demand from tenants and the lack of supply of rental property is certainly increasing the rents we can achieve. 

If you would like advice on what a rental property can achieve give me a call on 01949 714101 or look at my blog for potential buy to let properties in the area.   

Bingham investment opportunity £125,000

This is a large 3 bed semi on the market with Purple Bricks for £125,000, its on Chestnut Avenue and is in need of a new kitchen and possibly a new bathroom. 

If these were replaced you have to expect to achieve at least £650 pcm and of course the capital value of the property would be increased. These are large 3 beds and with its close proximity to the town centre it could be a desirable family home that would attract a long term tenant. 

http://www.rightmove.co.uk/property-for-sale/property-49042656.html

How Much 'Flipping' Going on in Bingham?

I keep reading in the papers about 'flipping' property and how many are seeing it as an alternative property investment to the traditional buy to let investments.

Flipping property is the current term for buying a house that requires work and selling it on for a profit after the renovations.  In a fast moving city market this can be a lucrative business but what about Bingham?

Have there been many properties flipped in our town or are we a more traditional property market? I looked through the pages and pages of Land Registry Data to see what properties had been bought and sold again in a short time scale and had achieved a much higher price when re sold. Remember Land Registry show the achieved prices for the sales not the advertised prices. 

Interestingly there were only 5 properties in the NG13 postcode that could have been flipped and sold in the last year.  Looking at previous details of these properties on rightmove, many of the properties were semi detached family homes purchased originally for around £ 150,000 and they were sold for an average of 48% increase in value after a renovations that were completed in under 12 months.

I had expected to see more examples of flipping in Bingham, but perhaps due to the lack of property on the market and a high demand from buyers keeps the prices of properties needing work higher than you might find in a city.

If you are looking to buy a property in need of refurbishment then you really need to keep a sharp eye on the market as when they come up for sale they don’t seem to hang around for long!

There are lots of things to consider if you are investing in a property, if you are looking to sell after a renovation then you must calculate borrowing cost for the duration of the works or you could find yourself at a loss after all the hard work!

If you are looking for a property investment then give me a call for honest advice on potential rental returns and to get an understanding of the right areas to invest in Bingham.

Bingham House Values Increased by Over 9% Since the Last Election

We last went to the polls in May 2015 and a lot has changed for the UK since then.    So how has this affected the Bingham housing market?

There is a lot of talk at the moment of how Brexit could affect the housing market.    I believe much of this focuses on the London property market which could be greatly affected as there is so much foreign investment to consider.

I wanted to look closer to home; I like to understand how the properties my landlords have invested in have performed for them.   Many of my landlords have invested in Bingham as they are local to the area and investing in a location one is familiar with will always feel a safe option.

Give me bricks and mortar any day over stocks and shares!

I looked at the properties in NG13 to see what had sold and what prices had been achieved.

I researched sold prices for detached and semi-detached since May 2015.   Interestingly I found that overall house prices in NG13 have seen an average increase of 9.46% in that short time.

Furthermore, since May 2015, semi detached properties had seen a 4.23% rise in value; detached properties had seen an average of 11.84% increase during the same period.

Who knows what will happen over the next 2 years?    I am sure of this – people will still need a roof over their heads and with an expanding population, a good location for employment and education, I believe the Bingham area will continue to be in demand by buyers and renters alike.

The high prices seen in the London property market may take a hit.   But if you are looking at ‘buy to let’ and choose wisely then you can have a successful property investment.

Contact me for honest advice on the properties for sale in and around the Bingham area.  

3 Bed Family Home in Popular Calverton - Great Investment at 5%

A great example of a family property which would be easy to let, bringing the investor a 5% yield.

Calverton is a popular village with good schools and amenities, with easy access to Nottingham.

On the market with Northwood for an asking price of IRO £170,000:

http://www.rightmove.co.uk/property-for-sale/property-66181901.html

2 Bed Investment in Sought After Burton Joyce

This 2 bedroom property in popular Burton Joyce would make a fantastic investment. Rental properties in the village get snapped up, and when they do let, tenants tend to stick around for lengthy periods.  

The property itself offers flexible living arrangements, with an annex in the garden which would make a great office / workshop or games room.  It is in good order, with a quality kitchen and modern decor.

Being marketed with Lesley Greaves Estate Agents for an asking price of £190,000, see some of their photos below (or click the link for full details):

       

http://www.rightmove.co.uk/property-for-sale/property-48377391.html

Why should you consider investing in a Buy to Let property in Bingham?

Bingham’s great location close to Nottingham and The A46 make it a popular location with professionals commuting daily. It also has great Primary and Secondary Schools so it appeals to families – after all it was in 2013 named the best place to raise a family. 

What’s on the market that would make a good buy to let investment for professionals?

I have seen a 2 bed apartment for sale with Newton Fallowell for £ 132,950, this apartment is in a gated complex and is private and modern with an en suite.  

It would easily achieve £600 pcm – giving a potential return of 5.4% but any investor must take into account the leasehold management fees payable monthly. It is worth checking what apartments in this development have sold for in the past and there are 2 that sold in 2016 for a higher price than this apartment’s asking price.

http://www.rightmove.co.uk/property-for-sale/property-59700841.html

Alternatively you might like to consider an investment aimed at the family market.  Frank Innes are marketing a 3 bed semi detached property on Skylark Close. It has off road parking, a dining kitchen and a garden. This is being marketed for £190,000 and would achieve £ 700 pcm. Whilst the rental return on this is slightly lower than the apartment at 4.4%, there are not the leasehold fees to consider and I would expect it to would see a better rate of capital growth over the years.

http://www.rightmove.co.uk/property-for-sale/property-64519412.html

If you are considering investing in property please give me a call. As we only deal with letting property we are able to give you an honest opinion of the rent that is achievable and help you to make an informed decision.

Keep an eye on my property blog for potential investment properties from across the market. Katie Archer  01949 714101.

Great investment property for sale £190,000 Skylark Close Bingham

Frank Innes currently have this nice 3 bed semi for sale at £190,000 - they reduced it in March. 

Skylark Close in Bingham is a popular location and has with a good parking area and would let easily for £700 pcm. Family properties are in high demand in Bingham and this would let quickly.

http://www.rightmove.co.uk/property-for-sale/property-64519412.html

BTL Potential with over 5% yield - Long Acre, Bingham

This is a very popular development in a quiet area of the town, whilst still being within walking distance of the town and station.

The property is in great condition, meaning that any investor could purchase the property and have it let very quickly.  Being on the ground floor and with 2 double bedrooms means that it will appeal to many different types of tenant.

On the market for sale with Richard Watkinson & Partners for an asking price of £146,750. I would imagine the apartment would achieve around £650 PCM, giving the investor a potential yield of just over 5%.

Details can be found here: 

http://www.rightmove.co.uk/property-for-sale/property-65678918.html

Immaculate Investment Potential on Popular Development in Bingham

This is a fine example of a modern 'coach house' style property, offering private, spacious living arrangements.

With 2 bedrooms, fitted wardrobes, upgraded kitchen and bathroom, and a garage, this property would appeal to many of the professional tenants we have waiting on our books.

I would say we should achieve around the £750 PCM mark for a property of this style in such great condition, giving the landlord a yield of 5.5%.

Click the link below for all details and to arrange a viewing to buy this fab investment:

http://www.rightmove.co.uk/property-for-sale/property-65776418.html

Free Property Investors' Event

We are really excited to be a part of this! 

Email gill.bland@belvoirlettings.com to book a place.

Fantastic apartment in Burton Joyce, could give investor a 5% yield

This apartment in sought after Burton Joyce is crying out to be purchased by an investor.  With well proportioned rooms and lovely light, airy feel, it would appeal to many professional tenants.  With quality properties being let within 24 hours, this is a great time to invest.

Being an apartment there is of course the leasehold and service charge to investigate, but as long as that all adds up, I think this is a sound investment for any landlord.

Check out the photos below, or click here for full details:

http://www.rightmove.co.uk/property-for-sale/property-46622229.html

Rents in the East Midlands have seen higher % rises than rents in London

Back in February I looked at how Bingham's house prices had performed over the last 12 months and I have been searching for data around the performance of rents in our area.   

The Office of National Statistics have released the Index of Private Rental Housing Prices (IPHRP) which looks at the percentage changes of rents over the last 12 months.

The Index of Private Housing Rental Prices measures the change in price of renting residential property from private landlords.  The index does not measure the change in newly advertised rental prices only, but reflects price changes for all private rental properties.

It does this by looking at the data collected by the Valuation Office Agency (VOA) who use rental officers to collect the price paid for privately rented properties. 

The data is broken down into regions and its good news for East Midlands landlords.

The East Midlands have seen a greater % increase in rents over the last 12 months than London and was also higher than the average for England.   Between January 2016 and January 2017 London rents have seen an increase of 2.1%, in the East Midlands we have seen an increase  of 2.8%.   This was matched by the South West and beaten only by the East of England at 3% and South East which saw a 3.3% rise in rents.

% change in Rents from January 2016 – January 2017

The report summarised that the increase in rents was due to demand for rental property outpacing supply.   RICS (Royal Institute for Chartered Surveyors) and ARLA (Association of Residential Letting Agents) are both reporting a continued rise in tenant demand.

We are certainly seeing increased tenant demand in and around Bingham and properties are letting really quickly.   If you are considering investing in a property please give me a call or pop in to see me at our office on The Market Place in Bingham for an honest opinion on rental returns. 

The Private Rented Sector doubles in size since 2002

The office of national statistics have released the first set of data from the 2015-2016 for the English Housing Survey.  This survey is a national survey of people's housing circumstances and the condition and energy efficiency of housing in England.

It makes interesting reading about the nations approach to housing and gives us an idea of how the private rented sector is performing. 

The report found that in 2015-16, the private rented sector accounted for 4.5 million or 20% of households.   Throughout the 1980s and 1990s, the proportion of private rented households was steady at around 10% but since 2002 the sector has more than doubled in size.

This report also looked at who was renting property – they identified that over the last 10 years the proportion of young people renting property in the private rented sector has increased dramatically.

In 2005-2006, 24% of those aged 25 – 34 lived in the private rented sector but by 2015 -2016 this increased to 46%.

Over the same period, the proportion of 25-34 year olds buying with a mortgage decreased from 53% to 35%.   Households aged 25-34 are more likely to be renting privately than buying their own home, a continuation of a trend first identified in 2012-13.

Interestingly in the private rented sector, the proportion of households with children increased from 30% to 36%.   Given the sizeable growth of the private rented sector over this period, this six percentage point increase equates to about 945,000 more households with dependent children in the private rented sector.

It just goes to show that we need a healthy private rental sector to cater for the needs of families as well as young people.    

Bingham is a great small town - ideally located for commuters to Nottingham, Newark and Leicester. With its great Primary schools and secondary School it will continue to attract families and I hope that we continue to see investors coming into the private rented sector.

If you are thinking of purchasing a property to let follow my blog for possible investment properties from across the market.  

Bingham Detached House Prices See Increase of 8.14% During 2016

This week we have seen reports in the media surrounding house prices.   The Office for National Statistics has just released data collected from December 2016.

They have produced a comparison of the monthly inflation of house prices, calculated using data from Land Registry, for all areas across the UK.  The National average price of a property has risen by 7.2% during 2016.

I had a closer look at the local authority for Bingham which is Rushcliffe and came up with some interesting results. We must remember though the Rushcliffe borough is a large one and includes diverse suburbs and villages.

The average price of a property sold during the year to December 2016 had risen by 7.63% according to the ONS results.

The report had broken the increases down even further by each property type:

Detached houses 8.14% increase

Semi detached 7.64% increase

Terraced house 6.49% increase

Flat/maisonette 7.15% increase

Remember these figures are on sold prices as recorded at Land Registry not the advertised asking prices.   These results are very encouraging to see for anyone who already has an investment in property or who is considering becoming a Landlord.

Buying the right type of property is always going to be very important though – it needs to have minimal void periods as well as seeing some capital growth.  If you are looking to purchase a ‘buy to let’ property keep an eye on my blog for potential investment opportunities across the market.  

Potential Investment in Sought After East Bridgford

I've mentioned it before, but buying to let isn't just about the rental yield per month.  There is capital growth to think about too.

A landlord with around £200k to spend came to see me today, and I showed him this potential in East Bridgford.

The property looks great and, if bought at the right price, could give the investor a good monthly return, plus hopefully capital growth in the years to come.

Being marketed with Rex Gooding, full details are below:

http://www.rightmove.co.uk/property-for-sale/property-58064986.html