Direct Property News

February 20, 2017

Tax change could result in UK landlords putting up rents by 20% to 30%

Tenants in the UK private rented sector face potential rent increases of up to 30% as a result of tax changes, it is claimed in a new analysis report. Tax changes, including the 3% extra stamp duty on additional properties, that have affected landlords are having a negative effect on the supply of rental properties and are not the neutral, non-discriminatory system that had been suggested. Indeed, David Miles, professor of financial economics at Imperial College London, says that the planned changes to tax for buy to let landlords due to be introduced in April should be abandoned. ‘Stamp duty is now being levied at a higher rate on properties bought to be rented. Most properties […]
February 20, 2017

Why 2017 is the year of build-to-rent

Over the last decade, the Private Rental Sector (PRS) has grown by 82% and squeezed past social rent in 2012/13 to become the second biggest tenure in the UK. Over the same period, the way we build rental property, and the way we rent it, has changed, too. Last year, the report Housing Futures: Urban Renters, published by Strutt & Parker, Stanhope and Network Homes, was published. The report had a closer look at Britain’s emerging build-to-rent sector, as the recent developments within the sector are reminiscent of those in other rental countries, such as Hong Kong, Germany, Japan, Sweden and the US. The research found that 48% of respondents had been renting the same property […]
February 17, 2017

Manchester and Salford see biggest rise in rental yields

The majority of residential landlords in London and elsewhere in the UK do not intend to buy or sell more properties to let in the next five years, new research has found. Three quarters are not planning change but of those who are some 13% in London plan to buy more properties and 9% to sell. This compares with 8% planning to buy and 15% to reduce their portfolio outside of London, according to the report from the Council of Mortgage Lenders (CML). The survey set out to gain an insight into how landlords are coping with changes in the lettings sector and how tax is affecting buy to let property owners. The research found that, […]
February 17, 2017

Manchester and Salford see biggest rise in rental yields

At the end of 2016, towns in England’s North and Scotland saw the biggest increase in rental yields, hitting up to 4.3% whilst London averaged out at 3.2%. Properties across Manchester and Salford saw average yields of 6.7% and 6.6%, while Cambridge only climbed up to 2.7%, the latest buy-to-let index revealed. To get the data, peer to peer lending platform Kuflink analysed the average house price and rent in 50 of the country’s major towns and then figured out the average rental yield for every single location. Manchester came out as Number One with an average rental yield of exactly 6.73% and was closely followed by neighbour Salford ar 6.68%. Other areas in the North […]
February 16, 2017

Industry reacts to latest House Price Index

The Land Registry and ONS have just released their final house price index for December 2016 showing an annual increase in house prices of 7.2%, with prices up 1.4% between November and December, to finish one of the toughest years in recent memory for UK property on a strong note. Founder and CEO of eMoov.co.uk, Russell Quirk, said, “There has been a number of sceptics where the state of the housing market in 2016 is concerned and although the likes of Halifax and Nationwide provide a snapshot of performance, the fact they are based on mortgage approval data, not cold hard completions, will always leave room for doubt. But today’s data from the Land Registry provides […]
February 16, 2017

60% of buy-to-lets are bought mortgage free

New figures have now revealed that the amount of landlords buying properties in cash has reached new record levels. Letting agent Countrywide has revealed that 61% of buy-to-let purchases in the UK last month were made without a mortgage. Overall, the highest level of cash transactions was found in England’s North, which is seen as a direct reflection of the lower prices. In more detail, Countrywide’s index for January showed figures of 70% in the North-West, 68% for Yorkshire and the Humber and 67% in the North East. Further down south, however, landlords have to rely more heavily on mortgages. Overall, only 42% of house sales in London are financed with no mortgage needed. Countrywide also […]
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