Buy To Let investors ‘are piling into the market’

Rightmove issued a statement last week saying: “Asking prices for properties new to the market have shot up to hit an all-time record high for March, boosted by buy-to-let investors “piling into the market” with new asking prices 1.7% higher than last month. 
Asking prices are now 1.2% higher than this time last year.”

Miles Shipside, Rightmove director, said:

“Even those who truly believe that the market has turned a corner may be unable to do anything about it due to lenders’ cautious risk profiling, a significant factor limiting the speed and strength of the recovery.

“However, with new sellers asking more than ever before as we enter the traditionally busy spring market, and an expectation among home-movers of price stability or growth, there is now a bedrock upon which confidence and momentum appear to be building.”

Rightmove also said that the average time on the market has fallen from 90 days last year to 80.

 Shipside added: “Whilst it is too early in the year to make estimates about full year transaction volumes, agents are reporting more properties being sold subject to contract.

 However, these prospective buyers still have to complete the potentially treacherous journey through to successful completion. 

More limited inventory for sale by agents means less choice for buyers and is usually a forerunner of increased property prices.

  Shipside said that there are currently “blindingly” good returns on the right buy-to-let investment, and that investors are “piling” into the market as a result. Property investors can get a much better deal than putting money into a bank.”

Mortgage Lender Guarantee Announced in Budget

Government-Backed Mortgage Lender Guarantee Announced in Budget

George Osborne announced yesterday the introduction of a government-backed mortgage lender guarantee in order to help house hunters who are struggling to find a deposit.

The guarantee will provide up to £130bn of lending between 2014 and 2017 in order to encourage lenders to provide high loan-to-value mortgages. It could continue to run beyond this with the Bank of England’s agreement.

This will undoubtedly give a boost to property prices especially in the areas The House Crowd are buying. These are the poorer areas where people are least able to raise a 20% deposit. That’s good news in that it will give us better capital gains and make it easier to sell properties.

Conversely, it will also make it harder, after 2013, to buy property that will achieve double-digit yields.

It is, therefore, our intention to capitalise on this announcement and buy as many properties as we possibly can in the next 12 months.

If you want to maximise your returns, then the next few months present the best opportunity for you to do so.

How Will The Chancellor’s Announcement Affect Property Investors?

Investing through property crowdfunding and secured P2P lending in real estate is fast becoming recognised as a great way to invest in property. The promised increase in mortgage lending is likely to have positive outcomes for our investors, whilst simultaneously providing high-quality property on the market for those who are set to benefit from these new announcements.

As property prices are set to rise over the next few years, we anticipate that there will be a rise in the number of people seeking rental accommodation, particularly in the city of Manchester. The city is experiencing a surge at the moment, with significant rejuvenation to position Manchester as a city for the future. This is bringing a wealth of new businesses to Manchester, and thus vast swathes of new jobs.

The predicted boom in the number of rental households in the UK means that there will be unprecedented demand for rented properties, of course. Again, The House Crowd will invest in buy-to-let rental properties to feed this demand. With the continued growth of Manchester as the leading city in the Northern Powerhouse, we may also find excellent rental yields coming through from these buy-to-let investments.


If you would like to learn more about investing in property crowdfunding, then register with The House Crowd for further information. You can do this directly by clicking on the purple button below. Alternatively, to view our full range of investment properties, click the blue button.

Register Now for more Info

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If you have any questions or queries about the new Government-backed mortgage lender guarantee announcement, or are looking for any other advice about property investment, please feel free to get in touch. We’re always happy to have a chat about anything to do with property, and to help you plan your next moves on the property market.

Universal Credit Trial: An Unmitigated Disaster

Universal Credit Trial: An Unmitigated Disaster

A Universal Credit trial in Torfaen South Wales has resulted in an increase in arrears from £20,000 to £140,000 in just seven months from July to January.

CEO of Brofn Afon Housing, Duncan Forbes said,

“That was a group of people who had a good track record of payment and pretty low level of arrears, thrust into a position where they are now in significant arrears. At the same time, we’ve increased our staff levels by about double what we would normally put into income recovery. We’ve been very successful up to now in getting the number of evictions right down, but we can see that inevitably steadily rising. The difficulty for us is that if there’s no long-term solution to paying that rent we can’t sustain business as a landlord.”

Despite the obvious disaster Universal Credit will be for both tenants and landlords, the Welfare Reform Minister Lord Freud (I thought the Freuds were known for being intelligent!) is still supporting Universal Credit and said:

“Millions of people will be better off on the new benefit.”

To which we have to agree – yes millions of benefit claimants who keep the money and don’t pay landlords their rent will certainly be better off.

Should we, as landlords of DSS tenants, be worried? Well, it is a concern. But, taking into account the possibility that the government will not come to its senses in time and cancel the whole misguided notion before the Autumn, we have a plan in place to ensure we still get paid. Many landlords will not have a plan and will either suffer financially or simply stop renting to DSS tenants.

Universal Credit Trial Failure: The Impact On Families In Need

This is a shame, as there are plenty of people on DSS who are in real need, but there is a nasty underbelly of unscrupulous claimants who make it very difficult for honest, low-income families, such as single parents who are in that situation by no fault of their own, to live.

A Bit About Property Crowdfunding

Property crowdfunding is now taking the investment world by storm, following our brave debut onto the scene in 2012. We were the first (and continue to be the best) platform for property crowdfunding.

We are proud to offer better returns on investment than many other investment models, and allow people previously locked out of the property market to benefit from the lucrative world of property investment. What’s more, we’re helping bring much-needed new homes across the Greater Manchester area.

For more information on the process of getting involved with property crowdfunding, visit our Crowdfunding Process page.

We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments.

To find out more about getting great returns on investment with The House Crowd, start by getting to know us here.

Mark Prisk Announces New Affordable Housing Fund

Mark Prisk Announces New Affordable Housing Fund

The Department for Communities and Local Government has announced a new Government initiative, an affordable housing fund, which will see up to 15,000 homes for affordable housing being developed.

As part of the plans, providers of affordable housing in the UK will be able to bid for a share of up to £225 million, subject to meeting the bidding criteria.

The Affordable Housing Fund and the New Affordable Homes Programme

The new initiative is based on the existing Affordable Homes Programme and will operate alongside the Government’s Affordable Housing Guarantee, which provides a pledge to underwrite debt for lenders on eligible housing projects.

The House Crowd hopes the new Affordable Housing Fund initiative will unlock private finance and help to get spades in the ground and workers on site. However, once again, we must question why the huge numbers of empty homes across the UK are being overlooked in favour of a new build solution?

As we know all too well, the UK needs to produce significantly more new homes every year to meet the growing demand. New builds are, of course, a key part of this, and this new Affordable Housing Fund will help. However, developing existing empty homes will not only boost the property market and economy, but make a dent in the number of new homes required.

That’s why we at The House Crowd believe so passionately in what we do. We want to build a better property market in the UK, and we know property crowdfunding is a crucial part of the solution.

Want To Know More?

The House Crowd is a new concept in property investment which allows people to invest small amounts via crowdfunding. For more information on the process, visit our How It Works page.

We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments For more information about us, see Our Manifesto.

If you’ve read enough and want to invest now, visit our Invest in Property page or register by clicking below:

Register Now for more Info

You can also see our full range of current investment opportunities here:

View our Property Investments

The Trouble With Banks and Mortgages

The trouble with banks (or one of the many troubles with banks when it comes to property investment) is that they put on a smiley face when they want your business, but have no qualms about riding roughshod over you when it suits them.

Thousands of property investor borrowers with the Bank of Ireland found this out to their cost yesterday, when they saw their tracker rate mortgages double overnight.

Rates for buy-to-let and some residential customers who are currently paying 2.25% will rise to BBR plus 4.49% in May. Many regard this as showing a blatant disregard for their customers.

The Trouble With Banks and Small Print

According to a letter sent to the bank’s customers, the loan agreement has a special condition (no doubt hidden in the small print no one reads) which allows them to change the tracker differential for a number of valid reasons.

Many mortgage agreements also (unbeknownst to many borrowers) have clauses allowing the bank to call in the loan at any time subject to certain conditions.

Avoid Trouble With Banks With Property Crowdfunding

It’s for reasons like this that we at The House Crowd wanted to create a different wholly transparent business model for property investment enabling both us and our investors to profit without being at the mercy of banks.

Free from the bind of bank finance and mortgages, investors in property crowdfunding can avoid trouble with banks. With as little as £1,000 they can own a share in property, benefit from potentially high returns, and put in significantly less than were they to invest in a whole property themselves.

The transparency and honesty of property crowdfunding platforms like The House Crowd are key reasons why people are slowly moving away from traditional property investment models, where there is so much risk from unscrupulous banks and mortgage lenders.

Whilst there is risk associated with any form of property investment, we believe it’s more straightforward to weather those risks with the crowdfunding model.

If you want to find out more about avoiding trouble with banks and instead exploring the new property crowdfunding model, we can help. Simply register on our site for more information about getting started, with no demands to do so straightaway.

Register Now for more Info

You can also view our current property investment opportunities by clicking below:

View our Property Investments

Home ownership, marriage or children?

Rather eye-catchingly, a recent Barratt Home Buyers study has found that individuals looking to buy a home consider this a greater priority in life than marriage or starting a family.

Whilst we consider this ‘study’ a rather sensationalist promotional tool, biased by the fact that survey recipients were home hunters quizzed by a housing company, it is perhaps worth considering what changes might be taking place in public perceptions as well-documented struggles for home ownership continue without an end in sight.

You only want what you can’t have, is a phrase that we believe can be applied to the aforementioned eye-catching statistic from the study. Demand for homeownership has risen perceptibly in young people over the last couple of years, as it has become more of a luxury than the attainable milestone it used to be. A decade ago it took 25 months on average to save a deposit for a new home, whereas it now takes a staggering 64 months , resulting in first time buyer numbers plummeting by 64% in 10 years.

The UK’s economic situation remains challenging and the principles of supply and demand matter now just as much as they ever have. Buying a first home is fast becoming a privilege attained only by a minority, and with this, public perceptions of owning a home may well be transforming and taking on a greater importance.

The House Crowd offers an alternative solution for first-time buyers struggling to raise a deposit for their first home. For as little as £1000, our crowdfunding property investment model provides a minimum annual return of 6%, in addition to a share of house sale profits – ideal for growing your deposit in order to take your first step onto the property ladder.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

Ethical Crowdfunding Success as ‘The House Crowd’ Raises £1 Million

We’re delighted to share the news that we’ve now surpassed £1 million of crowdfunded property investment in The House Crowd.

With Britain facing an affordable housing crisis comparable to that of the early post-war years, we are pleased to be doing our bit as an innovative property investment company, alongside our investors, to support Communities Minister Don Foster’s campaign to revitalise the estimated 1 million empty homes in Britain.

So far, forgotten communities in parts of Oldham, Farnworth and Little Hulton have already benefited from our efforts to revive distressed properties, where quality housing has been provided at fair prices to those most in need.

Our ‘caring capitalism ethos is something which sets us apart from other property investment companies and we are pleased to see property investors join our ethical crowdfunding revolution, to the tune of £1 million. Onwards and upwards!

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

FSA gives green light to online crowdfunding platform

The Financial Services Authority (FSA) has for the first time approved a crowdfunding website facilitating direct investment in small businesses. It means investors using the website, Crowdcube, will now be able to claim compensation from the Financial Services Compensation Scheme and access the Financial Ombudsman Service if they have a complaint.

The opinion here at The House Crowd is that it’s good to see a regulator starting to approve dynamic forms of financing like crowdfunding. As demonstrated by our unique business model, crowdfunding can provide great returns for all, in a safe, transparent way.

Currently, as The House Crowd doesn’t fall under the definition of either a CIS (Collective Investment Schemes) or OEIC (Open Ended Investment Companies), we do not require the FSA’s authorisation to operate.  However, even though we are not FSA regulated, we do everything we can to ensure that all our dealings are as transparent as possible and that investors are made fully aware of the risks as well as the rewards in any investment. We also ensure your money is protected as far as possible – you never pay money directly to us, all investment monies are paid to a solicitor’s client account and held there until the property is purchased and your shares are issued.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

Cash For Communities Building New Homes

Cash For Communities Building New Homes

Planning Minister, Nick Boles, has signalled an intention to direct up to £650,000 to councils that allow the development of new homes on their unused land. The money will be provided to local authorities by house builders once they receive planning permission for building new homes.

Mr Boles hopes this innovative proposal might help tackle the UK’s growing housing shortage crisis.

As part of the scheme, local people could stand to receive up to 25 per cent of the money for the improvement and provision of local infrastructure, if plans are supported via a local referendum.

Whilst it’s good to see the Government coming up with new ways to stimulate housing development, our concern with this scheme is that the imposition of an increased tax on house builders might drive up the price of land, thus affecting the provision of less expensive, affordable homes.

At The House Crowd, we think it vital that with an apparent renewed focus on building new homes, the Communities Minister’s pledge to ensure that 5,000 empty homes be refurbished to tackle the national housing shortage are not put on the backburner.

About Property Crowdfunding – Building New Homes for Britain’s Future

Property crowdfunding is now taking the investment world by storm, following our brave debut onto the scene in 2012. We were the first (and continue to be the best) platform for property crowdfunding.

We are proud to offer better returns on investment than many other investment models, and allow people previously locked out of the property market to benefit from the lucrative world of property investment. What’s more, we’re helping the UK with building new homes across the Greater Manchester area.

For more information on the process of getting involved with property crowdfunding, visit our Crowdfunding Process page.

We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments.

To find out more about getting great returns on investment with The House Crowd, start by getting to know us here.

The Kitchen Deal Breaker

Many people dream of installing a new kitchen, complete with granite worktops, an island unit and an AGA cooker, but how many people know the true value of making sure your kitchen is up to scratch?

Those in the know often say that a kitchen is the deal breaker room when selling a house, it can literally make or break a sale. It is therefore worth carefully planning any kitchen upgrades you undertake. Here are The House Crowd’s top tips to help you get it right:

-          People are too quick to gut their entire kitchen, often they’ll end up refitting units in exactly the same place. This is because the initial design of the kitchen is likely to be the most practical design. Take time to consider what your new layout would be, will it work?  What do you not like about the practical design of your current kitchen, and how can you solve those problems with your new kitchen?

-          Instead of spending a lot of money replacing everything, why not consider quick-fixes? Modernising unit doors and relaying the floor can save a lot of time and money. Large DIY stores have a good range of upgrade solutions and materials.

-          A common complaint people have is a lack of worktop space. Think about how you can make what you have go further, as unless you’re extending a kitchen, a re-design won’t necessarily give you more space. Solutions like microwave brackets, floating shelves, and flat-folding hinged tables can provide more workable space; there are also amazing new space saving idea available with new kitchens, including pull out work tops that can be put away when not in use.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).