UK landlords report tenant demand is stable or growing

Almost all landlords in the UK report that tenant demand is currently stable or growing, according to the latest quarterly survey from specialist buy to let lender Paragon Mortgages.

Landlords also reported an average yield across their rental portfolio of 6.2% in the second quarter of the year, a slight increase on the previous quarter when the average was 6.1%. The average yield has remained around this level for the past 12 months.

In the second quarter 38% of landlords said that they were feeling more optimistic about the prospects for their rental portfolios. Some 56% stated that there had been no change in their views, and just 4% said they were feeling pessimistic about prospects.

Looking ahead, 16% of landlords are planning to add to their rental portfolios during the third quarter.

The survey also shows that there has been no change in the types of property landlords are planning to invest in, with terraced houses remaining the most popular with 55% of those expecting to buy choosing this property type.

There has been a slight increase in popularity of detached houses, with 15% of landlords expecting to buy this property type compared to 12% last quarter.

Some 72% of landlords said that they thought rental arrears levels would remain stable in the next year, only 11% expect levels to increase. Overall, the feedback from landlords suggests that only marginal movement in tenant arrears is predicted.

‘It is interesting to see the improvement in confidence amongst landlords in the private rented sector. We are seeing much more activity in the private rented sector and, in turn, the buy to let market as a result of continuing strong rental demand and the investments made by landlords,’ said John Heron, managing director of Paragon Mortgages.

‘Tenant demand is clearly staying very healthy, and this is likely to remain a common trend over the coming months, particularly as we are still not seeing the level of house building that the wider housing market so desperately needs,’ he explained.

Source: www.propertywire.com

Multi-million pound work at De Montfort University's campus, Leicester

A ground breaking ceremony has taken place at De Montfort University to mark the start of multi-million pound building work to the campus.

Groundbreaking ceremony at Mill Lane, at De Montfort University's campus to mark the start of building work for a huge £136million campus transformation project. Dr Jonathan Choi, chairman of the Sunwah Group and Pro-Vice Chancellor Dominic Shellard broke the ground

The low rise Fletcher block and the university’s former Students’ Union building has been knocked down to make way for striking new buildings to house architecture, design, fashion and textiles, and art courses.

A new addition to the university’s plans will be a Chinese creative and cultural centre - the vast majority of which will be paid for by the Sun Wah Group - a Chinese business conglomerate which already has strong connections to DMU through its business school at Lioning University in China.

Professor Dominic Shellard, vice chancellor of DMU, said: “This is an historical day for De Montfort University. When I became vice chancellor four years ago, it was clear we had to do something dramatic and offer students cutting edge facilities.

“These buildings will replicate the experience of being in Gucci workshops or Prada’s workshops and help students move into the world of work fully prepared for high end equipment because that’s what they’re used to”.

                                                                                                    Professor Shellard compared it to the Kings College, in Cambridge.

Professor Shellard added that a “wonderful green space” was also being created as part of the university’s 

campus plans, which would lead down to the River Soar. He compared it to the likes of Kings College, in Cambridge.

The new creative and cultural centre will provide space for staff and students to study and research. It will house exhibitions on Chinese and British creativity, focusing on fashion, dance, drama, art, graphic design, gaming, and product design among others. Traditional Chinese skills such as Tai-Chi and calligraphy will also be taught.

The designs include atrium spaces with open galleries to maximise views between floors and between departmental areas, display areas to show off students’ three-dimensional work and digital internal and external displays to provide a platform for their work.

Landscaping around the site will create parkland with lawns, formal courtyards and a riverside walk.

The area is being dubbed the “green lung” and will run through the heart of the university’s campus.

Costs of the redevelopment will run to around £136 million, part of which is being paid for using a £90 million public bond financed by four major lenders – M&G Investments, Legal and General, Scottish Widows and Kames Capital.

Other works will take place in due course, including the expansion of the current Students’ Union.

The main part of the project is expected to be completed by 2016.

Sources: Leicester Mercury, BBC News

£1.5 million on improving Leicester's streets

More than £1.5 million could be spent on improving some of Leicester's historic streets.

Council bosses are to set aside £450,000 to spruce up the Greyfriars area around the city's cathedral.

They hope the move will prompt the Heritage Lottery Fund to release a further £1.1 million.

If the council succeeds in securing the lottery cash, the money will be used to provide grants and advice to businesses, property owners and community groups to help repair and restore buildings.

The five-year project will focus on New Street, Millstone Lane, Friar Lane, Wycliffe Street and part of St Martins and Peacock Lane.

The area is expected to see an influx of visitors after the opening of the new Richard III visitor centre next Saturday, and then the re-interment of the king's bones at Leicester Cathedral next year.

The aim is to invite property owners and leaseholders to apply for financial support to repair and restore building frontages, reinstate lost architectural features, such as original windows, fencing and decorative masonry, or bring empty floor space back into use.

However, the council has said it does not yet know how much money will be available to each bidder.

City mayor Sir Peter Soulsby said: "This area is one of the architectural treasures of the city centre.

"These proposals are about making over £1.5 million of funding available to businesses and property owners in this historical area and to work with them to bring about lasting and positive improvements.

"It is vital that we invest in and show off the unique character if we are to fully realise the huge potential that exists in this historical and architecturally rich area of the city."

Sir Peter added: "We have a lot of wonderful Georgian architecture there.

"It's perhaps not as dramatic as the Jewry Wall or the fine churches but it is very impressive."

The project will also include training courses and research workshops to help people learn more about the history and architectural character of the area.

A final decision on the lottery funding is expected to be made in December. If the bid is successful, the council's investment of £450,000 will be made from money set aside for the Leicester Economic Action Plan. The council says the initiative will link in with its Connecting Leicester programme, which includes several multi-million pound projects – Cathedral Gardens, Jubilee Square, the redevelopment of Leicester Market and improvements to nearby Guildhall Lane and Applegate.

Source: Leicester Mercury

UK house prices up 10.5% year on year

UK house prices up 10.5% year on year, latest ONS data shows

UK house prices increased by 10.5% in the year to May 2014, up from 9.9% in the year to April 2014, according to the latest index from the Office of National Statistics (ONS).

House price annual inflation was 11% in England, 6.5% in Wales, 3.6% in Scotland and 0.7% in Northern Ireland, confirming that price growth is now reaching the whole of the nation.

Overall house prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth. Indeed, annual house price increases in England were driven by a record annual increase in London of 20.1% and to a lesser extent increases in the South East of 9.6% and the East at 8.6%.

Excluding London and the South East, UK house prices increased by 6.4% in the 12 months to May 2014 and on a seasonally adjusted basis, average house prices increased by 0.8% between April and May 2014.

The data also shows that in May 2014, prices paid by first time buyers were 11.3% higher on average than in May 2013. For owner-occupiers prices increased by 10.1% for the same period.

David Newnes, director of Reeds Rains and Your Move estate agents pointed out that the housing market recovery continues to seep across the country beyond the capital.
‘Consumer confidence is travelling further afield, but a balanced view has to be taken as some regions of the country have seen very little house price growth. Places like Lancashire and York are still experiencing annual growth below 1%,’ he explained.

According to Paul Smith, CEO of haart, recent statistics from the same government department show that nine of the 12 regions of the UK are still below their peak in January 2008.
‘This helps keep things in perspective. It’s a positive that house prices are continuing to recover around the UK while London remains a law unto itself, but even here we are seeing prices tail off which is a good thing,’ he said.
‘More stock is coming onto the market and with it more choices for buyers. The market generally is not over heating so the government and Bank of England must take great care not to apply the brakes too early,’ he added, referring to recent mortgage caps and talk of interest rate rises before the end of the year.

Source: http://www.propertywire.com/

House prices to keep rising in the West Midlands

Average house prices in the West Midlands are on course to break the £200,000 barrier by the end of next year, says a new report.

Officials say it is a sign of the increasing strength in the region's economy, with growth expected to almost double this year.

Experts at leading accountancy firm PwC – formerly PricewaterhouseCoopers – say the recovery in the wider UK economy could see interest rates starting to rise as early as the end of this year.

While that might cause a slight slowdown in the housing market, as some families shy away from the prospect of higher mortgage repayments, PwC is still predicting average house prices in the West Midlands could hit £210,000 by the end of next year.

And they could rise as high as £256,000 by 2020

It is a reflection of how the UK housing market has leapt back into life over the past 12-18 months, with prices rising across the country.

At the moment house prices are expected to rise eight per cent in the West Midlands this year, up from £184,000 at the end of 2013.

Growth in the West Midlands is expected to pick up from 1.6 per cent in 2013 to around 3.1 per cent in 2014, in line with the rest of the UK.

Mark Smith, regional chairman at PwC in the Midlands, said: "These latest figures show the West Midlands economy is now gathering real momentum as business investment starts to pick up. The unemployment rate in the region has also fallen faster in 2014 than any other UK region, falling by 57,000 over the past year. In addition, inflation has fallen faster than expected recently, and we expect it to remain at or slightly below target in 2014-15".

Source : Express & Star

Landlords 'expect a 20k income' from their properties in retirement

Landlords 'expect a £20k income' from their properties in retirement - and third of all retirees considering buy-to-let

Buy-to-let landlords expect their property investments will contribute almost £20,000-a-year towards their incomes in retirement, a study has found.

Landlords expect that more than half of their retirement income will come from their rental properties, an estimated £19,785, according to a survey of 500 buy-to-let investors by Platinum Property Partners.

On average investors expect their retirement income to total £35,600, with the rest made up of state and private pensions, as well as other investments.

Source: http://www.thisismoney.co.uk/

House prices edge up again, says Halifax

House prices are continuing to edge up, according to the the UK's largest mortgage lender, the Halifax.

Measured on an annual basis, house prices in June rose by 8.8%, up from 8.7% in May. However, the survey provides further evidence that the rate of house price growth is starting to moderate.
On a monthly basis, prices fell by 0.6% between May and June. This was the fourth monthly fall since last December.

On the more reliable quarterly measure, prices rose by 2.3% in the three months to June.That figure has changed little since June 2013. The average house price across the UK is now £183,462, said the Halifax.

"Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence (...)" said Stephen Noakes, Halifax's mortgage director.

Last week, the Nationwide Building Society said prices had risen by 11.8% in the last year, and were now higher than at the peak of the market in 2007.

Source: BBC News