Welcome to today’s email of news and views…
Teachers Building Society has made changes to the criteria on its buy-to-let products. The rental calculation has been changed to 125 per cent of the mortgage payment at 4.99 per cent. It was previously 125 per cent at 5.74 per cent.
The restriction on the maximum number of mortgaged properties in a landlord’s portfolio has been moved from three to eight.
There is also a reduction to minimum earned income requirements for buy-to-let products to just £15,000 per annum. As always, do talk to a broker first. We can introduce you to brokers if you do not have one at the moment.
New research by Move with Us and Home.co.uk reveals their top 10 BTL locations – based on those locations that deliver the highest gross yields.
B7 (Birmingham), 10.6 per cent
TN28 (Kent), 10.5 per cent
L14 (Merseyside), 9.6 per cent
GU6 (Surrey), 9.5 per cent
TS1 (Middlesbrough), 9.2 per cent
B35 (Birmingham), 9.2 per cent
L4 (Liverpool), 9.1 per cent
RH4 (Surrey), 9.1 per cent
B18 (Birmingham), 8.7 per cent
EN8 (Hertfordshire), 8.7 per cent
Worth mentioning, of course, is that yield is only one criterion for savvy BTL investors. And a generic gross figure can be quite different from a specific net figure. The only yield figure that is is of any relevance is your own. Still, food for thought…
Had a pizza with my wife in a restaurant last night. At the end, the waiter presented us with two coffees. He then hurried back with a look of alarm on his face. He had forgotten to warn us they were hot drinks which, apparently, he has to do every time he serves ‘anything hot’. (‘That pizza is hot’, the garlic bread is hot…’ etc). Madness.
I thought of that this morning when I read that the government has commissioned a report to assess whether wind farms affect local property prices or not. It’s really stating the obvious – would you buy a property near a wind farm? No? Then there’s the answer – it affects property prices.
Frontier Economics is to examine the impact of a range of technologies, including onshore and offshore wind farms, shale gas, anaerobic digestion plants, overhead power lines, coal, gas, nuclear and biomass power stations and coal mines on local property markets. Clearly, these will all impact although, to be fair, it will be interesting to see by how much in hard cash terms. More to follow.
All for now – see you again soon.