Buy-to-let news Benefits of complexity
According to the Complex Buy-to-let Index from Mortgages for Business, 2011 was a strong year in semi-commercial property, revealing returns which were 30% higher than vanilla buy-to-let. Introduced into the index for the first time, the semi-commercial statistics also revealed that the sector yielded a 7.8% return, bettered only by the 9.9% yield on HMOs. Managing Director at Mortgages for Business David Whittaker said: “Complex buy-to-let deals continue to provide the best yields for professional investors.”
New figures from the Association of Residential Lettings Agent (ARLA) show that tenants are staying put in the same property for record durations. In 2009, ARLA members recorded the average length of a tenancy across the UK as 16.5 months; this number has increased by 17% as latest research shows renters are now spending on average 19.3 months in their homes.
With the possibility of house prices in the UK falling by up to 5% in 2012, David Salisbury, Chairman of the National Landlords’ Association (NLA),
Lloyds Banking Group Targets met and further boost
Lloyds Banking Group has announced that it has beaten its targets under the Project Merlin agreement for lending to SMEs. During the 12 month period of the agreement, the Group lent £12.5 billion to SMEs, surpassing the higher £11.7 billion capacity target under Merlin. Separately, the Group has also kept its net lending to SMEs positive at three per cent. For 2012, the Group has made a unilateral commitment to lend at least £12 billion and to keep its net lending positive. This commitment is uncapped and the Group will lend whatever is required to fulfil demand from viable small and medium sized businesses throughout the year.
The School for Social Entrepreneurs (SSE) and Lloyds Banking Group have joined forces to launch a pioneering new programme. Over the next five years, the Lloyds Banking Group Social Entrepreneurs programme will support 500 social entrepreneurs (a social entrepreneur is someone who is committed to addressing a social need or problem in their community or in wider society and who displays entrepreneurial characteristics in doing so) across the UK,
as they start-up and grow social and community enterprises.
Launching in April 2012, the scheme will see 100 social entrepreneurs each year receive comprehensive support from the SSE through its innovative learning programmes, as well as a grant ranging from between £4,000 and £25,000. A donation to the SSE from Lloyds Banking Group has made the programme possible. Outcomes from previous SSE programmes (evaluated by New Philanthropy Capital) show that the programme could ultimately benefit over 800,000 people and generate up to 2,500 jobs with a value of £11 million.
commented recently that homeowners who were planning to sell, might instead consider letting their property whilst waiting for the market to stabilise. With this in mind, the NLA has published guidelines for these homeowners offering tips to ensure that they comply with current rules and regulations governing the letting of private residential accommodation.
Buy-to-let product activity has been steady in the past month, with Abbey expanding its range to include variable trackers and an additional fixed rate. Darlington Building Society and Leek Building Society both resumed buy-to-let lending with discounted variable rates for three and two years respectively. Principality Building Society reduced its range to a single variable tracker rate. Paragon Mortgages withdrew its 3.5% fee deals and Woolwich from Barclays split its products according to loan size, with a corresponding fee scale. Ranges from Accord Mortgages and Precise Mortgages are now being shown.
See buy-to-let details on pages 20 to 34.
HSBC Commitment to SMEs
HSBC has announced a number of commitments aimed at supporting UK businesses in 2012. This news follows the confirmation that it exceeded its Project Merlin lending intentions in 2011, providing £38.8 billion of lending facilities to UK business customers and supplying gross new lending facilities of more than £11.7 billion to SMEs. HSBC plans to lend even more to SMEs in 2012, providing there is suitable demand.
Commenting on the news, Jacques- Emmanuel Blanchet, Head of Commercial Banking UK at HSBC, said: “In 2012 we will further increase our support for SMEs looking to grow and internationalise, across all sectors and all regions. Many of our customers are experiencing growth by trading in new markets and we are very well placed to support this, through our growing team of specialist International Commercial Managers and HSBC’s enviable global network, to give UK businesses the best chance of success.”
New research from HSBC Commercial Bank has also discovered optimism and confidence in growth within UK’s SMEs with more than eight out of 10 (84%) SMEs believing they will grow over the next 12 months. In fact, one in five (21%) SMEs are aspiring to grow market share or become the market leader as a result of their growth in the coming year, an impressive 14% of firms are starting to trade internationally to generate growth, while six in 10 (57%) expect to increase their turnover. To further support SMEs in realising their growth ambitions, HSBC is adding the Employer Business Loan, which can provide business loans as low as 4.9% AIR, and its International Business Overdraft, to its portfolio of business funding.
FLA Asset finance growth in 2011
Asset finance for investments of up to £20 million (including by SMEs) grew by 10% in 2011 compared with 2010, according to the latest figures from the Finance & Leasing Association.
Commercial vehicle finance grew by 22% in 2011 compared with 2010, business equipment finance was up by 15%, plant and machinery finance by 12%, IT equipment finance by 8%, and car finance by 4%. Comparing the channels through which the finance was provided, equipment vendors showed the strongest growth, up by 20% in 2011 compared with 2010. Over the same period, finance provided through brokers grew by 16%, and finance provided direct by the lender was up by 4%.
March 2012 Business Moneyfacts ® 5
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