Inside Property Website

Another Election…

April 23, 2017

Theresa May’s snap election has knocked housing well and truly off the news agenda for the time being and I am now fascinated by the politics of what lies ahead.  Firstly the question of why she called the election.  I thought it was astonishing that she claimed that there was too much opposition in the House of Commons and the House of Lords to her vision of Brexit, when debate is Parliament’s raison d’etre and she had won recent Brexit votes comfortably.   With the Tories at 48% against Labour’s 25% in the opinion [...]

Top 10 Challenges Facing London Landlords

April 10, 2017

1. Regulation of Buy To Let Mortgages
The rise in Buy To Let mortgages from 5% in 2009 to 16% of mortgage lending in 2016 concerned the Bank of England.  The governor argued that if the market had a downtown, lots of landlords selling all at once could seriously affect the UK economy.  Regulation by the Prudential Regulation Authority (PRA) started on 1 January 2017 and a second phase will come into force on 30 September 2017.  Phase 1 introduces a new stress test which is being interpreted by most lenders as 145% rental [...]

Buy To Let Loans Become Tougher

February 24, 2017

Big changes are afoot with buy to let lending that will make it increasingly difficult to get a loan.  If like me, you refinance several loans a year as discounted products come to an end, then you need to take a long hard look at the changes and start planning, particularly if you were hoping to raise more money.
Prudential Regulation Authority (PRA) rules governing buy to let lending came into effect on 1 January 2017.  Over the past 2 years most lenders have started stress testing applications at 125% rental coverage and a [...]

We Don’t Need Compulsory Three Year Tenancies

February 8, 2017

There was a rumour last week that the government were to propose the introduction of three year compulsory tenancy agreements in England in this week’s housing white paper. It then emerged that there would be no compulsion and the proposal was simply to promote longer tenancies in homes let by housing associations and institutional investors.  According to the white paper, finally released on 7 February 2017, the government “will consider” what more can be done for security of tenure for families in the rest of the Private Rented Sector while “encouraging continued investment”.  [...]

Tax Surcharge Going To Plan

January 28, 2017

The government’s stamp duty surcharge continues to be a fantastic cash cow for the treasury. Official figures show that it raked in £670m in the first six months since it was imposed on 1 April 2016 comparing very favourably with the projected tax take of £625m for the whole of the first year.  Such figures mean that it is highly unlikely to be repealed as it is providing more useful than expected amelioration of the national debt.
According to research by the UK’s largest estate agent, Countrywide, first time buyers are benefitting from the [...]