LETTINGSnews
YIELDS
HMO yields reach new high
Complex buy to let yields reached their highest level in Q1 2012 as average yields for Houses in Multiple
Occupation (HMO) climbed to 10.7 per cent per annum. According to the Mortgages
for Business Complex Buy To Let Index, this market continues to offer landlords and professional investors better average rates of return than mainstream ‘vanilla’ BTL properties. HMO yields are at their highest ever level at 10.7 per cent pa and Semi-Commercial Property (SCP) averages yields of 7.3 per cent. Despite the relative strength of the complex BTL sector, average yields on mainstream ‘vanilla’ BTL properties have also grown over the first quarter of 2012 averaging yields of 6.3 per cent, up from 6.1 per cent last quarter (Q4 2011), reflecting the buoyant demand for rental properties across the UK. The average overall number of
BTL products available over the quarter and the number of lenders operating in the sector has remained unchanged quarter on quarter. Over the last three months, an average of 25 lenders offered an average of 442 BTL products. However, in March, 472 BTL mortgage products were available – the highest number so far in 2012. David Whittaker said, “Complex buy to let properties are becoming increasingly attractive to landlords and professional investors. Average yields on HMOs eclipse even the most lucrative traditional rental house or flat and can provide investors with a diverse and robust portfolio. With the end of the first- time buyer stamp duty holiday likely to have a negative impact on the owner-occupier market and the government’s New Buy scheme unlikely to cover the shortfall, landlords and property investors will be relied upon even more in 2012. The good news for landlords, though, is that, beyond buy-to-let, there are plenty of opportunities to grow their portfolios and push their businesses forward.”
44 MAY 2012 PROPERTYdrum REPORTS Housing crisis on its way
The Government must listen to Shelter or face housing crisis, says Peter Girling,
Chairman of Girlings Retirement Rentals. Peter says, “We share
Shelter’s concerns about the acute shortage of appropriate housing to meet the needs of older people in the UK – from the baby boomers to the over 85s. Housing for older people in the UK is simply not being planned, built or thought through by government. It is a travesty and will lead to long-term social problems and a government induced crisis.” By 2030, one in three people in the UK will be over 55 – and as things stand, the supply of appropriate housing to accommodate this ageing population needs to rise by over 70 per cent in the next 20 years. Shockingly, there are
NEW BRANCHES Delighted of Tunbridge Wells
are looking for in their agent. The location of the branch,
Sunflower Lettings, whose headquarters are in Sevenoaks, have now opened in Tunbridge Wells with a lively launch by the Mayor, attended by local businesses and landlords. Jamie Browne, the Tunbridge Wells branch manager, said that he’s excited to establish the Sunflower brand in the area, and is confident that their fresh, flexible and dynamic approach will coincide with what landlords and tenants
opposite the Hotel du Vin, as well as the eye-catching branding, will help them stand out from competitors. John Mollison, the Director of Sunflower Lettings, says “In just 18 months of
trading in Sevenoaks, we have quickly got the attention of other agents as people are attracted to our use of cutting- edge technology, longer opening hours and people- orientated approach and we feel the time is right to move into a new area.”
very few specialist homes with support services available - just 533,000 and much of it in the social rented arena. We also agree with Shelter that developers find housing for older people complex to plan and costly to deliver and that the planning system simply does not support the development of houses for older people. However, these problems
aren’t new – they have existed for years and subsequent governments have failed to address them. We also think that National Planning Policy Framework provides an opportunity for government to change things – to plan and build the much needed range of homes for older people. If it doesn’t take this opportunity, we fear there will be serious social problems ahead.”
ONLINE
New property TV channel launched
Research undertaken by Total Landlord Insurance, part of The Landlord Syndicate, has launched
Letyourproperty.tv, a new online TV channel, dedicated to providing an online service, for landlords seeking information and advice. After extensive research
LetyourpropertyTV aims to build a community of experts and a series of interactive live web TV shows to drive debate and deliver the expert advice and guidance landlords need before letting out their property to a third party. In the first broadcast, Eddie
Hooker, CEO of Total Landlord Insurance, and Marie Parris, (pictured), Managing Director of George Ellis Property Services and author of ‘The Simplified Guide to Letting & Managing Your Own Property’, will analyse the results from their survey and discuss the greatest problems that tenants and landlords face. They will discuss the rights that tenants and landlords have and explain what landlords should have in place to ensure they don’t lose money or sleep from the rental process. Eddie
Hooker, says “So far the findings from our survey have been staggering, revealing the
astonishing number of landlords who, due to a lack of knowledge, are unwittingly opening themselves to risk .We have found that many landlords find it hard to keep up with the changes in landlord and tenancy rights, which seem to be constantly evolving, and many don’t know what to do when things don’t run smoothly, such as they have a tenant that is repeatedly having complaints of anti-social behaviour brought against them. We hope that
Letyourproperty.tv will give answers to any questions landlords may have regarding letting their property, whether they already doing so or looking for advice on how to get started.”
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