Properties to buy

“The mortgage market is in continuous move and it can affect you as well. ”

If you’re one of those shopping for a house soon and you are considering a mortgage, you should carefully analyse a couple of factors before making a decision. The location, the time you are going to spend in your new home (if it is temporary or, hopefully, for the rest of your life), the purpose of the investment (for your own living or if it is a buy to let), and other life circumstances should be considered when choosing a type of mortgage.

However, even with all these cleared up, there is still one more factor that might influence your decision. The mortgage market is in continuous move and it can affect you as well.

The analysis after the first quarter of 2017 proves that some types of mortgages are increasing, while other products for loans are remaining unchanged. For example, the number of contracted mortgages rose in the first three months. These are bank products offered for self-employed people, people with complex incomes or other underserved segments of the buyers’ market. Looking closely upon the offer of bank products, you may see that banks will speculate this moment and will come with new and improved offers. You will just have to pick the most advantageous for you.

The mortgage market also seems to be improving since the number of completed applications  for first time buyers is rising. 67% of first time mortgage applications were completed in the first quarter of 2017, up substantially from 48% in the same period of 2016. Intermediaries have eased up the applications because of the struggle to obtain a mortgage that was intensely publicised last year.

And one of the most important news that the mortgage market received at the beginning of this month is that the lending rates reached their lowest point. The figures from the Bank of England showed that this year’s borrowers received the lowest mortgage rates ever.

These effects are sometimes connected and influence one another, but paying enough attention to the movements of the market might pay off eventually.

Sources:

http://www.propertywire.com/news/uk/brokers-see-demand-specialist-mortgages-less-buy-let-forecast/

http://www.propertywire.com/news/uk/uk-mortgage-applications-intermediaries-successful-year-ago/

http://www.propertywire.com/news/uk/mortgage-lending-rates-uk-reaching-lowest-rates-ever/

 

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‘Cheap’ insurance can quickly become expensive if something goes wrong. Always read the small print. 

Specialist landlord insurance is not a legal requirement, but if you don’t have it, you could find yourself out of pocket if you are unfortunate enough to have your property occupied by squatters, vandalised or worse still damaged by fire or flood. If you rent out property and have purchased a standard homeowners buildings and contents insurance, you will not have cover for extended vacant periods greater than 30 days or if a tenant is injured on your property and claims against you. Tenants living in a property generally pose a greater risk than the owner living there, so it is vital to take out a specific landlord policy, shifting the risk to your insurer rather than taking on that risk yourself.

Having made the decision to purchase landlord insurance, what comes next?

It is extremely tempting to use a comparison site to get a speedy quotation and find the cheapest option available. This is obviously an easy way to search for a policy and it will give you a benchmark for price, but there is usually a reason for the quote being so cheap.

Dispelling the myth that cheaper is better

It is always advisable to choose a quality policy that offers extensive cover and peace of mind. The insurers behind NLA Property Insurance have been carefully vetted to ensure that the product, service and claims service is ‘best of class’ and provides the widest cover available at the most competitive prices for landlords and buy-to-let investors. Unlike comparison sites, there is help at hand to make sure that you understand the small print and purchase an insurance product that will work for you when you need it the most.

In the field of landlord insurance, the menu of ‘extras’ can be extensive. Some of the bigger, well-known providers may provide what appears to be a cheap quote at the outset, but once you start adding on the ‘optional extras’, additional premiums will apply – pushing up the overall cost of the insurance.

Take a big name like Direct Line: purchasing cover for malicious damage, or even theft by tenants/guests will increase your premium substantially, but it is covered as standard under the NLA Property Insurance’s Superior policy. If your rental property is deliberately trashed, then repairs could run into the thousands. You may have taken a deposit from the tenant but findings provided by mydeposits shows that even a deposit equivalent to six weeks rent is often not enough to cover the replacement costs.

A closer examination of Direct Line’s landlord insurance reveals there are several aspects of their policy which are either inferior to those offered by NLA Property Insurance, or not covered at all without additional premiums. For example, the NLA policy will insure an unoccupied property for 90 days compared with Direct Line’s 60 days. Our public liability cover will pay out up to £5M in the event of death of bodily injury, compared with Direct Line’s £2M – a large difference especially as liability claims have been known to cost several millions and increasing with the new compensation laws that have been recently introduced.

Here’s a brief comparison between NLA Property Insurance and Direct Line.

Comparison chart – correct as of 29/6/2016 (excludes special offers)
Buildings NLA Superior Policy Direct Line
Accidental damage to fixed glass and sanitary fittings Yes Yes
Accidental damage to buildings Yes Optional
Malicious damage by tenant and/or guests Yes (£1000xs) and £25,000 limit per claim No
Loss of rent or alternative accommodation 30% of building sum insured 10% of building sum insured
Unoccupied property 90 days 60 days
Terrorism Optional Optional
Contents
Malicious damage by tenant and/or guests Yes No
Theft by tenant and/or guests Yes No
Single article limit £1,000 £1,000
Landlord’s gardening equipment of theft from outbuilding £1,000 No
Liability
Property owners liability £5,000,000 £2,000,000
Employers liability £10,000,000 £10,000,000
Excess
Standard excess £250 As per policy schedule
Subsidence excess £1,000 £1,000
Malicious damage by tenant and/or guests £1,000 No

 

 

Whether you have a single property or a portfolio of properties, the Superior policy offering from NLA Property Insurance offers highly competitive premiums (including a 15% discount for NLA Full Members) and includes many ‘extras’ such as accidental damage, alternative accommodation or loss of rent as standard.

As a landlord, you will be looking to minimise risk and maximise peace of mind. Remember that home insurance isn’t designed for rental properties – you need specialist insurance for landlords. Choosing a cheap quote from so called big names may seem like a low risk option but don’t forget to check what is included in the price.

 

Source: https://www.landlords.org.uk/?utm_campaign=8161172_NLA%20Property%20Insurance%20-%20April%202017&utm_medium=email&utm_source=National%20Landlords%20Association

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The number of million pound apartment sales in England and Wales has grown nearly threefold, up 196%, in the last decade, according to new research.

The rate of sales growth for apartments has far outpaced other prime market property types with sales of million pound terraces rising by 165%, followed by semi-detached properties up 154% and detached homes up 88%.

The research from Lloyds Private Banking also shows that apartments represented 22% of all million pound property sales in England and Wales in 2016 compared with 17% in 2006 and accounted for 26% of the increase of all million pound property sales between 2006 and 2016.

Unsurprisingly, the overwhelming majority of million pound plus apartments were in London with 96% of sales and the sale number in the capital has increased 193% from 973 in 2006 to 2,853 in 2016, representing 35% of all million pound property sales in Greater London in 2016.

Source: http://www.propertywire.com/news/uk/demand-luxury-apartments-soars-parts-uk-particularly-london/?utm_source=Property+Wire+News&utm_campaign=fc980f14bb-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_cb0fe1dd73-fc980f14bb-108361813&goal=0_cb0fe1dd73-fc980f14bb-108361813 

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A petition that has so far gathered 144,343 signatures and argues that making rental payments is proof of ability to meet mortgage repayments is to be considered for debate in Parliament.

The petition creator, Jamie Jack Pogson, says he wants “paying rent on time to be recognized as evidence that mortgage re-payments can be met”.

Jamie had this to say: “Since living on my own I have paid £70,000+ in rent on time yet still struggle to get a mortgage. Unless you’re getting handouts, wealthy or in receipt of inheritance it’s almost impossible.”

Recent research from Lloyds Bank found that home affordability – as measured by the ratio between average house prices and gross local earnings – across UK cities is at its worst level since 2008.

Yet buying still remains more affordable than renting in all 12 UK regions. Halifax data shows that on average, first-time buyers are making annual savings of £651 compared to those who rent.

Buying is most affordable compared to renting in London, with the typical first-time buyer paying £161 (10%) a month less than the average renter (£1,420 against £1,581) an annual saving of £1,927.

Source: http://www.propertyreporter.co.uk/finance/should-rental-payments-be-proof-of-mortgage-affordability.html?utm_source=Email+Campaign&utm_medium=email&utm_campaign=21136-198062-Campaign+-+16%2F03%2F2017+MT 

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When it comes to home decor, 2016 was the year of everything from woven wall hangings to Scandinavian-inspired interiors. And as the year winds down, soon enough your thoughts will most likely wander to a home refresh. So it’s worth exploring the top decorating trends that will likely be on repeat in homes across the country—and possibly in your own abode.

We checked in with three interior designers—Martyn Lawrence-Bullard, Young Huh, and Beth Diana Smith—for their 2017 decorating forecast and some easy pointers on how to make them your own. These trends are chic, inspiring, and (fortunately) don’t require a complete room overhaul.

Green
According to celebrity interior designer Martyn Lawrence-Bullard, who counts Kendall Jenner among his list of clients, green is “strong again.” From lime green to emerald, the hue works throughout the home—whether it’s as a wall color or a room-filling rug. If you’re not too keen on the idea of using green in large doses, Lawrence-Bullard has a suggestion: “Add really fun emerald glasses to your regular white plates and suddenly you’ve got that up-to-the minute look.”

Tropical Prints
It’s no secret that interior design takes cues from the runways, and this year, we’ve seen the likes of Marc Jacobs, Prada, and Emanuel Ungaro experiment with all things tropical. The print will continue to appear in wallpaper and designer fabrics, according to Lawrence-Bullard. But don’t worry if such in-your-face prints are out of character for you. He suggests throw pillows boasting the trendy pattern: “Always buy a plain sofa and change it up with new pillows,” Lawrence-Bullard advises. “It’s just like buying a great piece of classic clothing. You can certainly refresh it with a new bag and shoes.”

Texture
Weaving texture into an interior makes it more inviting and the idea of mixing fabrics and materials will be on the rise. “Texture is really important,” says Lawrence-Bullard. “We are seeing more and more texture in every form, from brushed brass tables to light fixtures to fabrics and wallpapers.” A quick way to test the trend: Drape a nubby wool throw over a leather chair or mix fabrics used for decorative pillows.

Marble and Brass Combinations
Young Huh, who was named one of Vogue’s five young interior designers on the rise in 2015, promises marble and brass will continue to dominate in 2017. “We’re going to see this trend in both kitchens and baths,” Huh explains. “It’s that combination of something very natural and clean, like white marble, and something industrial, hard, and a little bit glamorous with the brass.”

Muted Colors
Does the thought of bold colors anywhere in your home make you feel a tinge of anxiety? Don’t fret—it’s all about neutrals in the year ahead. “Whites, beiges, pale grays, camel, and blush pink are super on-trend,” Huh says.

Geometrics
Your goal should always be to create a home that feels curated, and an easy way to accomplish this is through pattern. “We’ll see inventive geometrics that speak to ancient cultures, whether it is African or Asian patterns, but they’ll be modernized,” Huh says. Think simple lines, geometric designs, and triangles, Huh explains.

Quirky Lighting
Think of lighting as an accessory for your home—it’s the perfect way to show off your unique design sensibility. “A quirky lighting fixture looks great in a dining room,” Huh says. “It’s a great space to go for it and do something unusual.” Also consider sprucing up your bedside lamps with something truly memorable.

Artisan-Crafted Furniture
For New Jersey–based interior designer Beth Diana Smith, the new year will include an emphasis on uniquely crafted furniture. “People will be going back to furniture that is more of an investment—furniture that is very well-made,” Smith says. She recommends antique shopping for pieces that will add character to your home and browsing sites like Chairish.

Gray
Gray was a prominent color in 2016 interiors and it will continue to reign in 2017. “We will see different tones of gray, a lot of gray and white, and gray in deeper colors,” Smith says. It’s the sort of color that complements a full spectrum of shades, from bold red to mellow ivory.

Bronze
Smith promises that 2017 will bring loads of bronze—a metal that warms up any space. “It’s a lot more classic in a sense,” she says, as it complements a myriad of decorating styles. “I like it in lighting and accessories, whether it be vases, lamps, or decorative bowls for the kitchen,” Smith says.

Source: http://www.vogue.com/article/home-decor-decorating-trends-2017 

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If you haven’t ever heard of Japanese Knotweed, the Environment Agency describe it as “indisputably the UK’s most aggressive and destructive plant”

Growing up to an inch a day, Knotweed has the ability to mature rapidly across a large surface area, with the slightest trace causing continuing problems.

Japanese Knotweed (or Fallopia Japonica) is a large, invasive plant species which finds its way into the fabric of a building, e.g. joints in concrete, cavity walls, weaknesses in broken mortar between paving slabs or bricks, and in severe circumstances, can cause major structural damage to properties.

In a landmark legal case, Network Rail is now facing compensation claims after they ignored pleas by residents to remove the Japanese Knotweed growing on its land after it encroached on to their homes.

Neighbours Robin Waistell and Stephen Williams saw the value of their homes halved after the weed spread into the foundations which resulted in Mr Waistell unable to sell his house. It is virtually impossible to secure finance on land or property with Japanese Knotweed on or adjacent to it as UK banks and lending institutions will not give mortgages on properties affected by knotweed.

After a four-day hearing at Cardiff County Court, the rail giant was ordered to pay £4,320 to each of the men to treat the knotweed and £10,000 each in compensation for the fall in value of their homes. The judge added that if the knotweed was not treated, they could also claim for the full drop in value, a substantial £66,000.

So, what advice can you give to your customers on how best to spot and tackle Japanese Knotweed?

Knotweed is often identified during site surveys. Whilst it may look small and contained, do not underestimate the scale of the potential problem; the plant can grow up to nine feet in height and roots up to three metres deep. It is important to have the plant treated as soon as possible to avoid further growth and prevent the property sale from falling through.

Financially, eradication of Japanese Knotweed can become costly if left untreated.

Source: http://www.naea.co.uk/

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The latest survey from home services marketplace, has revealed that a new kitchen is the most effective home improvement for influencing a potential buyer’s final decision as well as their offer.

According to the data, when looking to buy a new property, 47% of potential homeowners would be influenced by it having a recently fitted kitchen. 28% would also be more likely to offer a higher price for this feature. Having a new bathroom also has a strong influence on home buyers; 46% would consider this when deciding whether to buy and 27% would potentially be willing to offer more money.

The order of rankings then somewhat divides. Looking at home improvements affecting the final decision to buy, new windows (45%) ranks third, followed by a new boiler (43%), a new extension (34%) and new loft insulation (33%). At the other end of the table, 31% of home buyers claimed that a new conservatory would affect their decision to buy. New garden landscaping (29%) follows this and new lighting (23%) sits at the bottom of the table.

It’s interesting when this order is compared to how home improvements affect the buyer’s decision to offer a higher price. New extensions climbs the rankings to take 3rd with 26%, whilst a new conservatory is also ranked highly with 23% of home buyers feeling this warrants a higher price. Extensions to the property clearly have a stronger influence on the offer than the decision to buy for potential buyers.

Stephen Jury, spokesperson for Plentific, said: “Many property buyers keep an eye out for particular home renovations when searching for their next home. It goes without saying that costly renovations are high on the wish list for most buyers. These can add significant value to a property and incentive buyers to offer a higher price. If a seller is looking to get a better offer, our insight could provide useful guidance on which home improvements to invest in.”

Source: http://www.propertyreporter.co.uk/property/kitchen-is-king-when-it-comes-to-influencing-potential-buyers.html?utm_source=Email+Campaign&utm_medium=email&utm_campaign=21136-194723-Campaign+-+24%2F02%2F2017+SHAW 

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The latest report from Halifax has shown that more first-time buyers climbed on to the property ladder in 2016 than in any year since 2007.

However, it comes at a cost as the lender revealed would-be home owners now need to raise more than £32,000 for a deposit.

Deposit sizes have more than doubled over the last decade. In 2006, the average first-time buyer deposit across the UK was £15,168. Now it is £32,321 – around 16% of the price of a typical first home.

According to the report, those buying their first property can expect to pay more than £200,000 across the UK generally and an “eye-watering” £400,000 in London. On average, in the capital, a first-time buyer’s deposit is more than £100,000, assuming they can also cover moving costs and stamp duty.

First-time buyers in London put down a 25% deposit on average in 2016, amounting to £100,445.

Halifax also revealed that during 2016, the average house price paid by first-time buyers was £205,170 – the highest on record. This average has grown by 7% over the last year, pushing it over the £200,000 mark.

In London, first-time buyers can expect to pay £402,692.

The number of first-time buyers is estimated to have reached 335,750 in 2016. This is the highest figure since 359,900 in 2007, and marks the third year in a row that the number has topped 300,000.

Halifax said the number of first-time buyers in 2016 was 75% higher than a low point in 2009, but 17% below a pre-crisis peak of 402,800 in 2006.

As the cost of housing has increased, first-time buyers have been taking out longer mortgages. In 2006, just over a third (36%) had mortgages lasting beyond the traditional 25-year period. In 2016, 60% of mortgages were for 25 years or more.

More aspiring first-time buyers are also having to factor stamp duty into their costs. Less than a third (29%) of first-time purchases in 2016 were below the £125,000 stamp duty threshold. This share was 45% in 2013.

The average age of a first-time buyer is 30, ranging from 27 in Carlisle in Cumbria and Torfaen in South Wales to 34 in places such as Slough in Berkshire and the London boroughs of Barnet and Ealing.

   Martin Ellis, a housing economist at Halifax, said record low mortgage rates, high employment levels and Government schemes such as Help to Buy have helped first-time buyers. The UK-wide Help to Buy mortgage guarantee scheme ended in 2016, but other schemes are still available.

   He added: “Across the regions there is a contrasting picture. In London – which has one of the youngest populations in the UK – the average house price for a typical first-time buyer is now more than an eye-watering £400,000 with an average deposit of over £100,000 – more than twice that in the South East, the next most expensive region.”

   Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: ’The Halifax’s findings are good news in terms of the increase in number of first-time buyers but are also indicative as to what parents and grandparents put themselves through so that they can afford those deposits – with more than £100,000 required in London.

If the housing market is going to function properly, as the government has told us so many times it should, then we need to protect first-time buyers. First-time buyers are the life blood of the market as they tend to buy at the bottom and trade up whereas investors buy at one level and stay there.

Although lenders are supposed to be providing support via Help to Buy now that the mortgage guarantee element has been withdrawn, on the ground we are finding it is not happening in all cases and more flexibility on lending criteria at higher loan-to-values is required.’

Source: http://www.propertyreporter.co.uk/property/ftbs-at-10-year-high.html?utm_source=Email+Campaign&utm_medium=email&utm_campaign=21136-188156-Campaign+-+13%2F01%2F2017+MC
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