News Review - July 7th 2009 |
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There was no news update last week due to holidays, but to make up for it, this week's edition has more content than ever with a carefully chosen selection of articles to keep you up to date with what's happening in BMV property. Including:
Latest NewsHave house prices found their level? The Times looks at the evidence. Good news! The worst of the recession is over according to the British Chambers of Commerce The usual "we're not out of the woods yet" type caveats still apply - particularly regarding unemployment - but this is positive news nonetheless. Speaking of unemployment, this is clearly one of the biggest issues facing buy-to-let landlords over the next couple of years. Umemployment usually lags behind other economic indicators and most forecasts seem to agree that it will peak at over 3 million in the 3rd quarter of next year. The Telegraph reports melodramatically on the "quietly ticking unemployment timebomb" and according to ARLA, there has been a 65% rise in member agents reporting tenants with difficulties meeting their monthly rent payments. Landlords appear to have taken this on board though and are getting much more fussy about who they let their properties to. Anecdotally, A lot of investors we have been speaking to are also looking to LHA tenants and rental insurance to try and insulate themselves from the unemployment risk. Student property continues to perform strongly with Britain’s biggest student housing developer reporting a 4.1% rise in the value of its fund in the second quarter Big boys look to get in on the action in the residential motivated seller market with a new fund of £50m to float in September. Central London residential investment yields fall below 4% (according to Knight Frank's Prime London Investment Index). Apparently, residential rents in central London fell 1.9% in the three months to June 2009, but prices actually rose by 3.7% - thus putting downward pressure on yields. “It has been the more expensive properties which have borne the brunt of the rental falls - with rents on properties costing up to £500 per week falling only 11.3% over the past year, and those costing over £1500 per week falling by 27.3% over the same period.” If prices are falling and rents are falling too then it sounds to me like prime London property isn't the place to be. Finance NewsMortgage brokers predict "significant pick up in business" over the next few months. Northern Rock starts to offer mortgages again to existing customers. Funnily enough, 125% products are off the menu. RBS has launched three new fixed rate products specifically targeted at first time buyers looking to take advantage of one of the Governments shared equity schemes to raise a deposit. With the surge of first time buyer interest over the last couple of months, and now the finance to back it up, it looks like shared equity schemes may start to become more popular. Other NewsGPS guided demolition team flatten the wrong house. Owner is understandably a little upset. Useful LinksUpad have launched a new website that “guarantees” to find you a tenant for £59. Management and/or rent collection can be included at extra cost. Property expert and TV personality Sarah Beeny has launched a site for homeowners to sell their property without incurring fees. Interesting idea, so it's worth checking out here: www.tepilo.com |