Hi all,

For those of you who didn’t pick up the FT over the weekend, please see below a link to an interesting article on property investment, in which we feature!

Financial Times article

The article focuses on investment in the UK, Europe, North America, Latin, America and Asia and highlights the fact that property is a sound long-term investment.

Many investors across the globe are viewing the U.K and residential property in particular as a safe haven. Our UK investment properties appear first and feature a portfolio of three properties in Scotland that deliver a strong yield of 7.2%.

If you would like to receive more information on these properties or discuss how we can help you with your investment requirements please do not hesitate to get in touch.

Kind Regards,

Michelle

Michelle Grant

Investment Director

dd. +44 131 247 4950

t. +44 131 220 6360

m. +44 7990 574618

www.grantpropertyinvestment.com

 OVERSEAS INVESTORS SHOW CONFIDENCE IN SCOTTISH PROPERTY MARKET

Smart property investors from the Middle and Far East are taking advantage of Scotland’s static housing market according to property investment experts in Edinburgh.

Grant Property, operating from offices in Edinburgh and across the UK, has welcomed a number of new clients from overseas all looking to capitalise on Scotland’s “recession proof rental property sector.”

Peter Grant, CEO of Edinburgh head-quartered Grant Property says: “We’ve experienced significant growth in the investment side of our business. This is due to overseas investors returning to the buy-to-let sector showing that their confidence in the market has been restored. However Scots’ are not as quick to snap up great deals on their doorstep.

“There’s no denying that general investor confidence had been subdued due to the financial and Euro crises. However what has remained consistent throughout is smart investors’ bullish approach to buying to let. These people have kept their heads despite what’s being reported on European and global markets and have made their money as a result.

“To me and to these smart investors who have kept their cool, residential rental property in Scotland has remained recession proof.”

At the beginning of the financial crisis in 2008 property prices fell by around 20 per cent. Following the initial dip, prices rose by 10 per cent and have remained relatively static since.

The team at Grant Property believe that property is far more resilient and less volatile than any other stock because there is less risk attached.

The Royal Bank of Scotland is now utilising the Bank of England’s Funding for Lending Scheme to cut mortgage rates for people in the UK. Details of the scheme were unveiled this month with the aim of providing banks with up to £80bn of cheap loans for customers in the form of business loans and mortgages.

The joint Bank of England and Treasury initiative is designed to protect banks from higher funding costs as a result of the Eurozone crisis, which will allow them to lend more.

At present – according to the Halifax House Price Index – the average house price in the UK is £161,346 compared to a Scottish average of £113,417. This price difference coupled by high occupancy rates in rental properties across major cities has made Scotland an attractive target for overseas investors.

“There is no recession in the rental market. Occupancy is at record levels, and we’re renting properties faster than we can take them on. Rents are rising year on year and 62 per cent of tenants expect rents to rise again in the next 12 months because there is a shortage of supply in the rental property market.

“Scots should look to mimic the behaviour of these overseas investors and make the most of what’s on their doorstep,” concludes Peter.

As of next month, banks will be able to access up to 5 per cent of their existing loan books through cheap funds, meaning that there will be more mortgage funds available for people in Scotland and across the UK and develop their own rental property portfolio in Scotland.

For further information on Grant Property contact the head office:  0131 220 6360 or visit www.grantpropertyinvestment.com

ABOUT GRANT PROPERTY

­­­Grant Property is an ARLA registered letting agent and specialist in helping people invest in residential property.

The company has an unrivalled track record in providing property management solutions to landlords based both within the UK and overseas.

Since its inception in 1997 founder Peter Grant, along with wife Colette have built the company from the ground up. The duo developed the organisation based on an ethos of stepping into the customers’ shoes and delivering a service suited to their individual needs.

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Property buyers update!

In case you’re thinking of investing - we’ve just had an update from our property buyers and property managers in each city, which is well worth sharing with you.

BUYING. The level of competition we experience when buying has dropped by around 50% in recent weeks. That’s quite normal for this time of year as we move into summer, and the holiday season kicks in. Buying in a quiet market is always a smart thing to do.

YIELDS have jumped by an amazing 20% in some cities, because of a combination of being able to buy really well and because of high rental demand and rising rents.

OCCUPANCY. 85% of new investor properties have rented before renovations are even complete. Most Scottish cities / areas are running at 100% occupancy. We even have tenants waiting for newly renovated properties to become available.

So how can you take advantage? If you’ve been holding off, it’s worth acting now, for sure. I’d be happy to share the best opportunities we’re being offered as an investment.

Kind Regards

Charlotte

PS Latest Halifax stats show prices rose by 1% in June.

Important Market Update

A recent FT article and two market reports have all highlighted UK residential investment as ‘very safe and attractive’.

There are lots of facts and statistics which we’ve summarised in our Market update and we’ve also provided links to the main reports. You will find them all on our website.

A small selection of key points are as follows:

Ø       House prices remain stable, despite the 12 month old Euro crisis Click here for graph.

Ø       UK rents topped £48bn and are set to rise to £70bn in the next 5 years

Ø       62% of tenants expect rents to rise in the next 12 months

Ø       University applications continue to rise – particularly in Scotland – and the numbers of students will double by 2025, worldwide.

If you have any questions, please let me know.

Finally, you can now follow us on twitter for live feeds from our property buyers on what they are buying. Click here to follow us.

Kind Regards

Charlotte

Charlotte Cowe
Private Client Manager 

dd: +44 (0)131 247 2938
t: +44 (0)131 220 6360
m: +44 (0)7776 147 845

Bank of England expert predicts future UK property boom

An ageing population and an increasing number of immigrants are set to fuel a property price boom in the UK, it is claimed.

According to Professor David Miles, who sits on the Bank of England’s monetary policy committee which sets interest rates, people will also be older when they buy their first property because of changes in the mortgage industry due to the credit crunch.

In a research paper he says that the trend of rising real incomes and the likelihood of rising population density means the UK should anticipate a rising trajectory for real house prices over the longer term. But he does not indicate exactly when this would happen.

‘This is particularly likely in a country like the UK where population density looks set to rise relatively fast,’ he explained, pointing out that one in six people currently alive in the UK expected to celebrate their 100th birthday and the population is set to rise.

At present, 62.2million people live in Britain, but the Office for National Statistics expects this number to increase to 67.2 million by 2020 and to 71.4million by 2030.

Over the past 25 years, house prices have reached levels which leave many people unable to afford to buy their own home. In 1986, the average home in a British city cost £35,209. Today the same property would cost around £170,000.

In his report on population growth, house prices and mortgages, Miles says that the changes to the mortgage market over recent years will be permanent. ‘The first effect is likely to be prospective buyers postpone their purchase, while they save more to accumulate a larger deposit. As a result, the average age at which people would buy their first home will rise, and the  share of owner occupied houses will fall,’ he explained.

He believes that the changes in the mortgage market is not a bad thing and the fact that banks and building societies insist on large deposits to get the best loan deals is not a sign of a damaged market, or one which is not functioning properly.

He singled out the 100% mortgage deals, prevalent during the last housing boom which allowed people to buy without saving a penny for a deposit. ‘It probably never made sense for there to be 100% mortgages. There may be no price at which it makes commercial sense for such a loan to be available,’ he said.

Please visit www.grantpropertyinvestment.com for further information regarding buy-to-let investment opportunities!

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Edinburgh’s 509% house-price boom

HOUSE prices in Edinburgh have rocketed more than five-fold over the past 25 years – one of the highest increases in the UK.

Across Scottish cities, property values have shot up by an average of 351 per cent over the period, exceeding the increase of 347 per cent for the UK as a whole, according to the Bank of Scotland.

Edinburgh’s 509 per cent increase is the third-highest of any city in Britain, behind Truro at 550 per cent and Westminster, London, at 522 per cent.

Inverness is also in the top ten, experiencing a rise of 450 per cent.

“With an increasing and more affluent population in Edinburgh over the last 25 years, and strong economic growth for much of this time, it is no surprise to see the city near the top of this table,” said Tony Perriam, director of residential sales at Rettie & Co.

Nitesh Patel, housing economist at Bank of Scotland, said: “Cities have typically seen higher house price growth than the UK average over the past 25 years.

“City house prices are generally supported by demand from those looking to gain from the economic and lifestyle benefits often associated with residing in major urban areas.”

The study, carried out ahead of a new round of applications for city status to mark the Queen’s Diamond Jubilee, found that towns which had become cities since 1986 – including Inverness and Stirling – performed above average.

The 26 towns which have applied for city status this year have, on average, not experienced as rapid a house price growth over the last quarter of a century as existing cities. Scotland’s applicant, Perth, has seen prices rise by 372 per cent since 1986 – well above the average for all applicant towns of 345 per cent.

Ms Patel added: “The performance of cities in Scotland has been similar, with four of the six cities outperforming the Scottish average. Edinburgh and Inverness have seen very strong house price growth, both featuring in the top ten UK cities since 1986. Glasgow and Stirling, however, have seen average prices rise more slowly than for Scotland as a whole.

“There are, therefore, no guarantees that city status benefits its population’s homeowners.”

The experience of those towns that became cities in 2002 to coincide with the Queen’s Golden Jubilee has been more mixed.

Only Newport, Wales, has recorded stronger price growth than its region since 2002, while Preston, Stirling and Lisburn, Northern Ireland, have all underperformed relative to their regions. During the decade prior to 2002, both Stirling and Lisburn outperformed their regions.

Sarah Speirs, director of RICS Scotland, said: “Property in sought-after areas always attracts more buyers and therefore sells for a premium. Cities that offer good jobs, respected schools and a range of social and family activities will always be popular with investors and owner/ occupiers, so it’s no surprise that house prices have risen so much in the past 25 years.

“However, city status alone is not enough to push up prices. The city has to have enough going for it to attract buyers and investors.”

For more information regarding UK residential property investment, please visit www.grantpropertyinvestment.com or contact us directly on +44 (0)131 2473131

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House Prices and Rents to Rise as Homebuilding Figures Stall

The Daily Telegraph, By Ian Cowie February 24th, 2012

A shortage of new homes is expected to push house prices up.

House prices and rental yields will be squeezed upward by a shortage of new homes, experts claim, following the latest production figures from the National House Building Council (NHBC).

Despite various Government initiatives to encourage new building and help first time buyers beat the mortgage famine, the NHBC reports a sharp contraction in public sector residential construction, which fell by 20pc over the year to last month. Meanwhile, private sector production of new homes increased by less than half as much – by 9pc – to bring the total to 7,831 new residences completed in January; little changed on the year before.

Mark Posniak, a director of the mortgage provider Dragonfly Property Finance said: “These latest figures drive home the paralysis at the heart of the property market.

Tracy Kellett, managing director of BDI Home Finders added: “The lack of new homes being built says all you need to know about whether the Government’s initiatives are working. Clearly not is the answer.

“It’s a well-documented fact that there are simply not enough homes for our growing population. The lack of new homes being built is keeping house prices artificially high and causing rents to rise across all sectors.

“For landlords and homeowners, this is a good thing, for aspiring homeowners and tenants, quite the opposite.

Grant Property Investment have helped clients from 30 countries invest in over 1,700 properties across 12 UK cities. We’re the UK’s leading provider of residential property Investment and Management. Our clients range from individuals to institutional investors, with one property to £100mil property funds.

For any further information about Grant Property Investment, Property Investment or Buy-to-Let mortgages please Contact us.

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Buy to let "BOOM"

Buy-to-let boom shows no signs of stopping as landlords snap up property worth £160bn.........

Read more: http://www.dailymail.co.uk/news/article-2098971/Buy-let-boom-shows-signs-stopping-landlords-snap-property-worth-160bn.html#ixzz1mYmqZYmA

Looking to Invest? Visit our Website or contact us on +44 (0)131 247 3131

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The UK Property Market 2011/2012

Hi All,

We’ve been getting a lot of questions about the market, and I thought it worth sharing both questions and answers - so here goes.

I’ve kept it very brief, so if you want further details, let us know click here or visit our website www.grantpropertyinvestment.com

Kind Regards

Peter Grant

CEO

1. What's happening with prices.

Prices fell in 2008 but have been very stable since then. We predicted that prices would be flat in 2011 and in fact they have risen slightly, according to Nationwide Building Society.

2. Has the financial crisis changed the market?

Yes. Since 2008 the market has moved from being a sellers market to becoming a buyers market - favouring investors. There is lower mortgage availability for first time buyers. Buy-to-Let mortgages on the other hand have risen sharply in 2011, allowing investors take advantage of very favourable buying conditions.

3. What's happening in the rental market. 

Rents have been rising as have yields. We have 100% occupancy in prime areas. The Scottish rental market has performed better than England.

4. What impact has the euro crisis had this past 6 months.

None. Prices have in fact risen slightly.  It's been similar to other past 'crisis'. In good times property prices rise and in less good times property prices remain flat.

5. Why is property less volatile than shares and bonds.

Shares and bonds make headlines and react to headlines because they are completely liquid so there can be dramatic price movements. Property prices don't react to headlines and have always been very stable by comparison.  

6. What is likely to happen in 2012? 

2012 is predicted to be similar to 2011, with prices stable and perhaps rising slightly. Nationwide are predicting 2% growth. Rents are likely to carry on strengthening as are yields. We expect occupancy in prime areas to remain very high.

7. How does property compare as an investment?

Over any period (3 years or 30 years) residential property has outperformed shares and commercial property. Over the last 40 years, the average growth is 7% pa. Through gearing that‘s a 28% return pa.

8. When investing, what should I focus on?

There are several rules to follow in order of priority

  1. Location, location, location. Choose a prime city centre area
  2. Traditional property outperforms new build, so focus on that

  3. Rentability. Look for strong rent and high occupancy

  4. Experience. Use GM as a partner and use our strong experience

  5. Price. Buy well but without compromising on the above points

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Welcome to 2012!

Hi All,

I thought I'd drop you a quick personal note to thank you for all your support in 2011, and to wish you a very Happy New Year. I hope that 2012 proves to be a prosperous and fun year for you.


If one of your New Year's resolutions is to invest in 2012, then let me know. I'm pleased to say the team were busy over the second part of December, which is traditionally a great time of year to pick up some brilliant bargains, if only because everyone else has switched off for Christmas! This year is no exception, and I'd be delighted to put you in the loop as to what is currently available.

I look forward to working with you in 2012.

Kind Regards,

Peter Grant
CEO
Grant Property Investment

For the latest update on our property portfolio, please visit our website.

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