Rent-to-Sell / Rent-to-Buy in Swansea Bay

Rent to sell and rent to buy really do give value to all parties:

  • They give the seller a chance to get a better price;
  • They open up the purchase to more buyers;
  • They make it easier for the buyer to purchase;
  • This can all be done more quickly than the conventional high street sale and purchase…

Contact me if you are interested in this process,

Michael

Swansea Developments and House Price Rises

A Happy New Year to readers of this page.

The Halifax House Price Index 02.01.2018 lists Swansea as amongst the top 20 locations for the greatest UK property price rise over 2017:

https://static.halifax.co.uk/assets/pdf/media-centre/press-releases/2018-01-04-Cheltenham-tops-2017-house-price-winners.pdf

Swansea was one of only five locations outside of London and the South East on this list. House prices in Swansea rose by 7.7%, the national average being 3.9%.

Swansea Council leader Rob Stewart is quoted as saying that 2018 will be the year Swansea sees “boots on the ground and cranes in the sky” moving forward the extensive development plans set for the city.

“We have always been determined to deliver on our promise to transform the city centre into a destination that meets people’s aspirations, with 2018 being the year that people start to see boots on the ground and cranes in the sky.”

Kingsway, Swansea

The Kingsway

The new look planned for the Kingsway (Image: copyright unknown)

Source: Wales Online

Last year’s £1.3bn City Deal signed off by Teresa May in March that will transform the new Kingsway Business District information infrastructure is already yielding benefits to City consumers. This writer has last week had his 17Mbs internet connection replaced with the experimental G-Fast BT service that runs at 150Mbs on the old copper cables, and which as I write is being offered to City properties at locations within 400mtrs of a BT switching cabinet.

Being creative about property!

October UK House Price Index data (HM Land Registry):

https://www.gov.uk/government/news/uk-house-price-index-new-data-reveals-number-of-cash-buyers

…reveals that a significant number of between 30% – 40% of all property purchases UK-wide are cash currently, and not mortgage funded. Mortgage companies are losing market share to other ways of purchasing a property.

Creative techniques such as offered by ourselves, therefore, also come to the fore for those buyers and sellers now in the majority outside of the 30% – 40% mainstream mortgage market range.

 

Bank lending thresholds raised

From 30 September 2017 UK banks will be introducing more stringent criteria for experienced landlords before considering an offer of a new loan:

http://www.bankofengland.co.uk/publications/Pages/news/2016/073.aspx

Generally, this means that landlords with four or more mortgaged properties shall have to produce a business plan across their business before they will be considered for an additional loan on any single property.

A higher interest rate will be used to make calculations of affordability, termed stress testing (whilst uncertain, a Zoopla commentator suggests this may rise as little as from 5% to 5.5%).

And this measure builds upon further, recent measures:

The rental coverage requirement has been raised from 125% up to between 140%-145%.

HMRC is currently increasing landlord taxation with an interest relief cap of 20%, also changing the calculation from gross to net (the so-called Section 24 rule):

https://www.gov.uk/government/publications/restricting-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords

This is happening progressively between 2017 and 2021.

HMRC further removed tax relief in 2016 (10%) on wear and tear costs for landlords letting furnished homes.

All of these things call for creative responses from buyers and sellers of rental investment property to keep profitability.

Under mortgage stress? Or just fed up with the worry?

Get in touch – maybe there are things that can be done to help!