Buy To Let Obstacles Fail to Deter Investors

There have been a lot of buy to let obstacles this year. Hikes in stamp duty, reductions in tax relief, tightening of mortgage lending criteria, and, of course, Brexit. And yet, landlords have pushed back, undeterred.

Investors Undeterred By Buy To Let Obstacles

Industry figures released last week show that, rather than being put off by these buy to let obstacles, landlords swept back into the market with gusto in September. Connells Survey & Valuation have released figures also showing a strong and successful September, with buy-to-let valuations rising 24% on August’s figures. Rightmove, too, have revealed a 30% jump in buy-to-let enquiries since May.

Another surprising statistic: in the nine months of 2016, to end of September, more has been lent to landlords than over the same period in 2015. Buy-to-let valuations over 2016 are 0.4% up on 2015.

New rental listings, according to analysis by Rightmove, in the third quarter, were 6% higher than in 2015. Anticipated drop-offs in investor activity affecting tenant choices proved to be unfounded.

From London to the North West

Even in the heady London property market, there was a year-on-year increase in rental listings of 15% over Q1-3 of 2016. As such, these high stock levels on the market led to a drop in asking rents in Q3, down 0.7% on Q2, staying below £2,000 a month. Of course, up in the North West where things are weathering the Brexit storm best, during the same period, rents went up 2%.

In the run up to the changes in stamp duty in April, there was an inevitable rush to close on property purchases in the first quarter of the year. As such, there was a significant drop-off come April, though this may well be down to many property purchases being hastened through before April’s changes hit.

Since then, things have really bounced back. One feature of the recovery seems to be a trend for investors knocking sellers down on asking prices to take into account those stamp duty charges.

Planning Pays Off

For those investors who have factored in those tax and policy changes to their financial planning, there are still strong returns on the cards in the property market. Especially when compared to the dismal performance of savings, bonds and equities, the long term ongoing shortage of social housing and a dearth of house building, is making property an increasingly attractive investment option.

Alistair Hargreaves, from John Charcol mortgage brokers, says:

“I can’t see Government rescinding the tax changes they’ve announced and I don’t see the Bank of England making it any easier for lenders. But that said, the flipside is that lenders are having to innovate to get business and there are still lots of competitive options available for landlords.”

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In addition, Mr. Charcol mentioned that despite tighter lending criteria, there are some innovative buy-to-let mortgage options available. Moreover, he recommended that in most cases landlords should consider longer term fixed rates or lifetime variables which remove some of the uncertainty for their finances.

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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/).