Direct Property News

June 5, 2017

Rents in Britain up by average of 5.75% year on year

Average rents in Britain increased by 5.75% year on year in the first quarter of 2017 to £770 although there is some regional variation, according to the latest index figures. Some areas of the South East reported slight falls in rent and other areas, such as the East Midlands and Yorkshire saw increases of over 7% year on year in the first three months of the year compared with the same period in 2016. The rental index from lettings agents Belvoir is based on average advertised monthly rents, which are obtained from property portal Rightmove and since it began in 2008 rents have moved broadly in line with wages and large movements over and above 5% […]
June 5, 2017

Manchester remains a top BTL hotspot

According to recent research, Manchester is one of the top 10 places in the UK for rental growth with average yields of almost 9%. The M6 postcode, covering Pendleton, Claremont, Langworthy and Salford, offers the top average rental yields in Manchester (8.84%) and has an average monthly rent of £1,034. Close to the centre of Manchester and the University of Salford, this postcode is popular with students and young professionals. South of the city centre, the M14 postcode, covering Fallowfield, Rusholme and Moss Side, is seeing average rental yields of over 8%.  Again this postcode is popular with students, as it is close to the main University of Manchester campus. The M5 postcode, which is close […]
June 1, 2017

UK city house price growth slows to 5.3%

According to the latest data and analysis from Hometrack, UK city house price growth is running at 5.3%, down from 8.7% in April 2016. Eleven cities have a faster rate of growth than 12 months ago. Manchester is the fastest growing city while price inflation in London is at its lowest level for 5 years. Lower growth over the last 12 months is largely a result of prices increasing by just 0.1% over 2016H2.  In the three months to April 2017, average prices have increased by 3.2% with above average growth recorded in large cities such as Manchester (4%), Birmingham (3.8%) and Edinburgh (3.7%). Divergence in growth rates over last year Eleven of the twenty cities […]
May 31, 2017

British buy to let landlords face 13% rise on average in tax profit

Buy to let landlords in the UK could see an average 13% increase in their taxable profit due to the reduction in mortgage relief and other change which will have a substantial effect on their profits, it is claimed. The mortgage tax relief changes introduced in April, which are being phased in over the next few years, mean that interest relief on buy to let mortgages is being gradually reduced. By 2020 some 100% of buy to let finance costs will be restricted to the basic tax rate of only 20%. According to the research from online letting agent Upad the difference between tax due to be paid in the 2017/2018 financial year and 2018/2019 will […]
May 29, 2017

Landlords’ taxable profit set to ‘sharply increase’

With the Government now almost two months into rolling out Section 24 and its new buy-to-let tax relief system, online letting agent Upad believes landlords will see an average 13% increase in their taxable profit from 2017/18 to 2018/19. The changes, which started being phased in on 6th April 2017, mean that landlords must now pay tax on turnover, rather than the difference between rental income and mortgage interest. Until April, landlords could deduct the full cost of their mortgage interest payments, or any other property finance, on their rental properties before they paid tax. Two months in, mortgage, loan and overdraft interest costs can no longer be considered in calculating taxable rental income. The changes […]
May 29, 2017

New funding for would-be landlords

A new £20m funding initiative has been launched with the intention of supporting a generation of first and second-time property investors The initiative from Market Financial Solutions (MFS) is targeted at refurbishment and restoration projects in the £1.4m empty properties across Britain. Funding On-going until June 2018, the £20m funding drive will be made available to nationwide applications through bridging loans in the range from £100,000 to £1m. With Britain gearing up for another General Election on June 8th and against the looming backdrop of Brexit, MFS’s property investment drive offers landlords fast access to monies required to support their short-term investment plans. Over the next year, it is anticipated that traditional asset classes such as […]
parallax background