Rental increases

How will tax changes affect the rental market in 2017?

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What will buy to let tax changes mean for landlords and renters? This year, the rental market in the UK is set to undergo yet another change, when in April, the government introduces its new rules on income tax relief, but how will it affect those buying in the UK, and do new statistics show a worrying lack of knowledge within the sector? The new changes set to affect investors in the rental market will largely centre around income tax. Essentially, those who own rental properties will no longer be able to deduct mortgage interest from their taxable income before submitting returns. It’s a move which may make it more expensive for those who own rental homes, with experts speculating that this could cause a negative effect in the sector, with a greater number of landlords raising rents to compensate. Read advice on the buy to let tax changes from 10 industry experts. Read more…  But how badly will buy to let landlords be affected? According to a newly published property investor survey from Mortgages for Business, around a third believe they will be affected under the new rules. Some 60 per cent believe that income tax rule changes will punish them and affect their income, while 29 per cent said that they do not believe they will suffer. One of the big questions, however, at the moment, is just how much do investors actually know about these changes? And is there still a problem in the sector with regards to knowledge about such new rules? The Council of Mortgage Lenders (CML) recently published a study that suggests this is not the case. Despite the fact that the majority of people will have to at the very least seek advice and look at their own portfolios as the changes come […]

Government housing market white paper

Will more sheltered housing be needed as the government incentivises downsizing?

Posted on Leave a commentPosted in Real Estate

A new government housing market white paper has announced that it will be looking to offer incentives to older people that would encourage them to move out of their family homes and into smaller accommodation in order to create a more fluid market, but could this create a new opportunity for investors? There has long been a trend in the UK of older people remaining in homes that are far too big for them, long after their families have grown up and flown the nest. This creates bottlenecks in the market where there is a lack of properties for people looking to move up the ladder to buy. Government housing market white paper The government has revealed that it will be looking to address this historic issue in its new housing white paper, read more here. Housing minister Gavin Barwell refused to give any in-depth details about what the incentives would mean for older residents, but he did tell ITV that the bringing back to market of an increased number of family homes is a major focus for the government moving forward. “We’ve got a lot of demographic change in the country and an increasing elderly population, so it’s not just about how many houses you build, but are you building the right kind of houses? If we can make it easier for elderly people to move it releases family homes that we’re desperate for. It’s a really interesting idea,” said Mr Barwell. One problem that will need to be addressed is just how the government plans to make its dream a reality. It’s expected that older people will be encouraged to move into retirement communities and sheltered housing as part of the move, but there are problems with severe shortages. Despite the aging population in the UK and the […]

Commercial property

Commercial property investment demand looks strong headed into 2017

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The Brexit vote that took place in mid-2016 was forecast to be a particularly negative decision for the UK, with many predicting that businesses would suffer as a result, and that the market as a whole would suffer in the long term thanks to lower sentiment from those who own and run companies. However, as the move to exit the EU comes closer and closer, the reality is that there has actually been little in the way of change when it comes to the business world. The economy did not contract as it had been expected to, and commercial property demand from new investors grew throughout the second half of 2016, which leaves the sector looking strong headed into 2017. According to data published by the Royal Institute of Chartered Surveyors (RICS), in the last three months of the year, demand improved quarter-on-quarter across the UK commercial property sector, which was the second time in a row – both post-Brexit – that this had happened. Demand for commercial property As many as 21 per cent more respondents welcomed an increase rather than a fall in demand for commercial property in the final quarter of 2016. This was a rise of nine per cent in terms of positivity when compared to the three-month period that came before. It indicates that even as the market was edging closer to Theresa May’s proposed date of the end of March for Article 50 to be triggered, the UK’s businesses remain confident. And it’s not just domestically that this is the case either. The study from RICS shows that 27 per cent more respondents experienced a rise in demand from foreign investors in the final quarter of the year as well, showing that even without the backing of the EU in the future, the UK’s […]

Experience Invest Company Profile expands

Experience Invest Company Profile continues to expand

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Experience Invest company profile continues to expand The Experience Invest company profile expanded in 2016 to include another completed development by Opto Property Group. Chapel Street – a development of 87 en-suite and studio rooms designed for the student market – completed in Q3 2016. The development, which opened its doors to students at the start of the 2016/2017 academic year, is fully occupied and paying investors returns. Situated in Luton’s town centre and just a few minutes’ walk from the University of Bedfordshire, Chapel Street is in an ideal place for students who wish to experience all the town offers. Chapel Street is the second completed student development in Luton by Experience Invest. London Park House, which has been operational since Q3 2014, has been a popular choice for students and has achieved full occupancy since opening its doors just over two years ago. At the end of 2017, Experience Invest company profile will expand to include Opto Village in Luton. This flagship development will bring the company’s total number of student rooms in the town to around 800.   Experience Invest company profile Operating since 2004, Experience Invest has delivered many income generating property investments. Early in 2017, the company will launch a residential development in Luton named New Bedford House. The development will appeal to the town’s growing commuter population and will contain 54 one and two-bedroom apartment. Property prices in Luton outpaced the rest of the UK in 2016, with the average house price up 19.4%. The average house in Luton could be worth up to £48,000 more than the previous year according to data by the Halifax. New Bedford House will provide investors with an excellent opportunity to capitalise on rising house prices in Luton and to benefit from rental returns from a new-build property. […]

Property prices in Luton

Luton emerges as a UK property hotspot

Posted on Leave a commentPosted in Student Property

The latest data from Halifax has shown that Luton property prices increased by 19.4% in 2016, outpacing gains across the rest of the country. On average, properties in the town increased by £48,000 throughout the course of 2016. When compared to the national average of 7.5%, Luton property prices increased at an accelerated rate over the past 12 months. “Most of the areas that have seen the biggest house price rises during 2016 are either within close commuting distance of the capital or in outer London. Demand in these areas has risen as substantial property price rises in central London over the last few years have caused increasing numbers of people to seek property in more affordable areas,” Martin Ellis, Housing Economist with the Halifax. Commuter hotspot The town’s popularity as a London commuter hotspot has helped propel Luton property prices. High house prices in London has created and exodus of people who now see the value of choosing to live elsewhere instead. As Luton is just 22 minutes by train from Central London, commuters do not have to travel far to get more for their money. And it is not just commuters who are flocking to this commuter belt town. The University of Bedfordshire, which is ranked 64th in the UK by the Times Higher Education World University rankings, has seen a rise in students studying at its Luton campus. The town centre campus has witnessed an influx of private student developments pop up, as students increasingly understand the value of privately operated digs over HMOs.   New completed development in Luton The latest Experience Invest completed development is in Luton’s town centre. Chapel Street comprises 87 en-suite and studio apartments which have been specifically designed for the student market. Investors are receiving rental returns from this fully managed […]

The best regional investment hotspots for property

The best regional investment hotspots for property in 2017

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Investment in rental properties is one of the most popular ways to save for the future in this day and age. With returns of between five and eight per cent possible, and a rise in demand as fewer people opt to own a home year after year across the UK, it’s no surprise that rental investment is thriving across the country.   But investing is about more than simply buying a rental home and waiting for the money to start rolling in. You need to know where to invest, and why, to ensure you have the best chance of success. Here, we take a look at a few of the stars of the British rental market and why they make great places to invest in property. Northern Powerhouse   Without a shadow of a doubt, the Northern Powerhouse cities are some of the best to invest in at the moment away from London. With a focus on creating a thriving economy in the north and investment to back up those desires, it’s clear that places like Liverpool, Manchester, Leeds and Sheffield have the potential to bring investors in property therein strong returns for years to come.   The regeneration of Liverpool and the subsequent migration of more businesses there in the next few years is set to make the city a fantastic modern place to not only work, but also live. This is likely to bring an influx of young professionals to the city, who will be looking for purpose built rental properties that give them the lifestyle they want to lead.   It’s a similar story across the Powerhouse as well, with Manchester seeing a continued rise in media companies and Leeds’ rise in digital marketing industry standings both helping to bring more skilled young people to the region, […]

2017-UK-Student-Accommodation-Investment-Guide

New 2017 Student Accommodation Investment Guide launched

Posted on Leave a commentPosted in Student Property

Experience Invest has released an online 2017 UK Student Accommodation Investment Guide aimed at investors looking to enter this high yielding property market. The guide, which is free and interactive, contains expert analysis of the sector’s performance in 2016 and looks at what investors can expect from the sector over the next 12 months. 2017 UK Student Accommodation Investment Guide launched “As we enter the New Year, many investors will review the performance of their current portfolio and will consider how it will fair in 2017. Student property is known as the UK’s best performing asset class and despite rising level of investment over the last 5 years, some investors still consider it as an alternative asset. “Our new 2017 UK Student Accommodation Investment Guide is filled with helpful information about the sector. It delves into the risks and the rewards and address the impact of Brexit on the sector. Every investor should read this guide before they purchase student property,” Jerald Solis, Acquisitions and Business Development Director at Experience Invest explains. Rise of the regions Investors have shunned London student property investments in favour of regional opportunities. According to data from Cushman & Wakefield, investors have been attracted to cheaper and higher yielding en-suites and studio apartments in regional cities with large student populations. The guide explains where investors should consider buying student property and why these areas are hotspots for investors. University towns and cities such as Manchester, Liverpool, Leeds, Newcastle, and Luton have all emerged as a popular choice for buyers looking to generate a rental return from this profitable asset class. Click here to access the guide…  The future of student property The future looks bright for the UK’s student property market. Despite upcoming Brexit talks and the government’s plan to trigger Article 50 in March, […]

Student property and Brexit

More investors are now turning to student property on the back of Brexit

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Student property continues to attract investors Demand for more student property nationwide and a fear of what Brexit could mean for the wider property market is helping to fuel a swell in the number of people set to invest in student property, according to a new report. Buyers who would previously have used the mainstream rental market are worried that the Brexit process could mean the value of their investments falling, but a constant, and in fact growing, supply of student tenants nationwide has meant a need for investment, and many of those with concerns over Brexit are going to move into the market as a result. In London, for example, the Evening Standard reports that there are as many as 279,160 full-time students. However, there are only in the region of 60,000 purpose-built homes in the city, which shows a real demand for homes that are built with students in mind, which means a need for investment.   Demand for UK student property It’s a similar story across the UK, where there is an ever rising demand for student property. For example, in Liverpool, there has been a rise from 50,000 to 60,000 students in the course of the last year alone, and 60 per cent of all students in the city need private accommodation, which creates strong demand and a real need for further investment. While this year has not been as strong so far for student property investment as last year was, the fact that there was £2 billion worth of investment in the first three quarters of the year shows that it remains strong, and the final three months of the year should only add to this as investors turn to student homes in the face of Brexit. Roger Lown, head of student housing at GVA, […]

Government announces new preferred HS2 northern map which could boost the economy

Government announces new preferred HS2 northern map which could boost the economy

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The government has announced the release of a new preferred route for the high-speed HS2 rail link that takes the north into account, with the transport secretary promising that the new plans will boost the economy by billions when the HS2 link opens. High-speed rail links High-speed links to the north are important for the future planning of the north of England, particularly in Northern Powerhouse cities such as Leeds, Manchester and Sheffield, all of which will have new stations on the HS2 line, according to the government. The introduction of HS2 to these cities is likely to improve their attractiveness to companies across the country as places that are fantastic to do business in, largely thanks to their newfound ease of access and the relatively low cost of operation in the north as opposed to further south. And this could have a knock-on effect on the future investment plans of those looking to put their money into residential investment property.   Boosting the local economy There may not be high-speed trains passing through for a number of years to come yet, but the fact that more businesses, and by extension more skilled professionals, will be moving there as a result means that the north could be a good place to invest in off-plan properties for the rental market with a long-term outlook. The transport secretary Chris Grayling has revealed that HS2 Phase Two will see routes open between Manchester and Crewe, and Leeds and the West Midlands, opening the high-speed network to most of the north by the end of Phase Two, which will begin operating trains around 2033 if all remains on plan. Reducing travel times Mr Grayling said in the preferred routes plan that a number of new HS2 stations will be constructed at Manchester Piccadilly, Manchester […]

investment in student accommodation uk

British investment in student accommodation market mirrors performance seen across the world

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The UK investment in student accommodation has been growing for some time, and this is a well known fact in the UK. Growth in demand has meant a need for private sector accommodation to pick up the slack when universities themselves have not got the ability to house all of their students. It has meant that there has been almost £12 billion of investment in student accommodation between 2013 and 2015 alone. This activity in the sector, pushed forward by demand from students, has helped the student property market move from a place in which it was seen as a niche asset into a position of power, where it is now viewed as one of the most thriving investment options around. But this is not a trend exclusive to the UK, as a new report from Savills has revealed. Savills’ 12 Cities: Visitor Cities report looks at the major settlements across the world and how and why people either live or rent there, and it found that across the world, a swell in foreign students in particular has meant purpose built student accommodation (PBSA) becoming a mainstream asset class. Drivers for growth Savills said that the main reason we’ve seen investment in student accommodation demand rise across the entire world in the last few years is that demand has climbed in that time. A “rapid growth in enrolment” globally over the past four years has meant more and more students needing places to live, and the property market has responded positively, with investors keen to step in to fill the gap as required. The driver behind this, the organisation said, is the global financial crisis. When it seemed like there may be fewer jobs around thanks to the drop in economic performance worldwide, more people who would have previously went […]