Showing posts with label Buy to let. Show all posts
Showing posts with label Buy to let. Show all posts

Wednesday, 29 February 2012

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.




If you have found this post interesting please use the share buttons below to tell others in your online community, there's a good chance they will find it interesting too.

Thursday, 16 February 2012

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

If you have found this post interesting please use the share buttons below to tell others in your online community, there's a good chance they will find it interesting too.

Thursday, 12 January 2012

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



If you have found this post interesting please use the share buttons below to tell others in your online community, there's a good chance they will find it interesting too.

Wednesday, 23 November 2011

Buy-to-Let growth continues as lending hits three-year high


Buy-to-let lending has climbed to its highest level in almost three years, figures from the Council of Mortgage Lenders have revealed.
In the three months to September 34,500 buy-to-let loans worth £3.8bn were advanced, up 16% by number and 19% by value compared with the previous quarter. This is the highest level by either measure since Q4 2008.
Q3 saw 18,580 buy-to-let purchase loans 12% of all house purchase loans up from 9% in Q3 2010.
Charles Haresnape, managing director for residential mortgages at Aldermore, says: “The buoyancy of the buy-to-let sector confirms that investor appetite for residential property remains strong, which has been fuelled by tenant demand.”
For further information on this article please visit our website www.grantpropertyinvestment.com or call us on +44 (0)131 247 3131 
To view this full article through the original author please visit Mortgage Strategy http://www.mortgagestrategy.co.uk/b2l-growth-continues-as-lending-hits-three-year-high/1041506.article


If you have found this post interesting please use the share buttons below to tell others in your online community, there's a good chance they will find it interesting too.

Monday, 14 November 2011

UK Property Investing - Buy to let


We’ve had a big response to our update on bank lending, and we’ve been asked a lot of questions around the Investment Market. I’m pleased to share some general advice around buying and investing.


1. Timings. In general it’s a good time to invest. It’s still a buyers market, and there’s great value to be had.

2. Areas. The best areas to head for are city centre. They are experiencing the best yields and the highest occupancy. The more prime the better.

3. Type of property. Traditional property has always been the best performing compared to new build (measured across both yield and capital appreciation).

4. Rental Market. There have been lots of headlines around a strengthening rental market. Scotland is generally performing better than England. The Student Market is particularly buoyant. Prime city centre areas are best.

5. Yields. Average yields in the industry are 5%. Larger traditional property in city centres gives a yield of 7% and above (that’s an improvement of around 20% due to lower prices and higher rents).

6. Capital appreciation. The long term average is 7% pa. On a geared return that’s a 28% return.
Banks are more active again. The number of buy to let products rose by 26% in the last quarter. B2L lending has increased by 40% on the previous year.

Everything seems to point to investing – but investing wisely. Buying in good areas and at a good price is key.

If we can help, let us know. www.grantpropertyinvestment.com


If you have found this post interesting please use the share buttons below to tell others in your online community, there's a good chance they will find it interesting too.

Friday, 11 November 2011

UK Property Buy to Let Bank Lending


We've had a number of clients ask us where the banks are with property lending.

By way of background, many banks pulled back their lending on property when the financial crisis hit in 2008. They reduced their LTV's and put up their rates. The volume of lending fell significantly. So how have things changed, since 2008?


The short answer is that things have changed, very much for the better.

A number of lenders are offering 75% LTV and even 80% LTV on investment property -  back to the levels pre 2008.


  • Base rates are now at 0.5%, down from 5%. 

  • They are forecast to remain low for some time to come

  • The margins that banks are charging are once again falling, as more lending competition creeps back in.

  • The number of B2L products rose by 26% last quarter


The amount of lending has risen significantly as a result. The last quarter showed an increase of 40% on the previous year, according to CML.

There has been a 'golden period' for investing these past few years, although many investors held off. Investors are now piling back in - demonstrated by increased bank lending, and the greater levels of competition we are noticing on the ground, when buying.

There is still good value to be had. Prices fell in 2008. They then rose again and have been pretty stable since. Prices overall are still around 10% down from their peak.

If we can help with any questions on lending and / or investing, we'd be only happy to help. For further information or just a general chat please contact us on +44 (0)131 247 3131. Alternatively please visit our website for more information and view our current featured property lists.



If you have found this post interesting please use the share buttons below to tell others in your online community, there's a good chance they will find it interesting too.