Welcome to today’s UK property news and views…
UK Supply-Demand Reminder
It’s not rocket-science – short supply and high demand means, all else
being equal, prices rise. You should, when investing, have at least
half an eye on the supply-demand mix locally now and, so far as you can
see, into the future.
Talking property generally, we note today that the CBI, the
Confederation of British Industry, states that the UK must ‘build
240,000 homes a year to keep up with the growing number of households’.
The CBI has called on the government to create 10 new towns and garden
cities by 2025 and to double the number of new homes being built a year
from the current 120,000.
‘A perfect storm is brewing in the housing market. With demographic
changes and demand currently dramatically outstripping supply, now is
the time for action. Political parties of all colours have made the
right noises on the need for more homes but without serious action the
ambition to own a home will become more and more out of reach to
ordinary people. Will it happen? Put it this way. The UK has failed to
build more than 200,000 homes in 10 out of the last 14 years.
London – A Reminder
If you are buying in London, you need to know what’s happening there.
That’s why we are running an October get-together. You can also chat,
no obligation, to Adam who sources property there. He’s been a
chartered surveyor in London for some 25 years and can pretty much call
it as it is in any postcode you care to name.
Have to say there is a high degree of, what’s the most diplomatic word
I can use here, lack of know-how, ignorance and rank stupidity amongst
some would-be investors when it comes to London. These investors
invariably want something substantially BMV (40 per cent off!),
low-money down (I’ve almost £5,000!) and with double digit yields (At
least 20 per cent!). If that includes you, you’ll benefit from reading
my ‘Where Are You On The Berk-O-Meter?’ editorial I am writing for the
next newsletter. Mind you, if you think you can get BMV, low-money down
and double-digit yield investments in London, I can give you the answer
now – you’ve blown the Berk-O-Meter to bits. More to come.
More BTL Mortgage News
Looking for a BTL mortgage? Email back and have a chat with Peter
Faulkner. Meantime, we note that Coventry Intermediaries has a new
buy-to-let range which includes:
3.19 per cent fixed rate until 31.10.16, 75 per cent LTV, £250 booking
fee, £1,749 arrangement fee, early repayment charges (ERCs) payable to
3.49 per cent fixed rate until 31.10.16, 75 per cent LTV,
£250 booking fee, £749 arrangement fee, ERCs payable to 31.10.16.
2.99 per cent Flexx for Term, variable rate, 75 per cent LTV, £250
booking fee, £1,749 arrangement fee, no early repayment charges (ERCs).
Email back and we will put you in touch with Peter Faulkner to talk BTL
Letting Agent Check
The latest Property Academy annual survey reveals that some 55 per cent
of landlords who use letting agencies know whether the agents are
members of a professional body or not. Is yours?
That’s an astonishing figure and suggests that many investors simply do
little or no due diligence on their letting agents – ‘They’re the
cheapest, I’ll go with them!’ – and that is worrying. How do you know
they’ve taken up the references they’ve said they have? Issued a
legally sound contract? Aren’t going to run off with your money? More
to come on this.
All for now, see you again soon.