Archived News

Student accommodation continues to set pace for landlords

February 04, 2014

Student accommodation continues to set...

The buy to let sector continues to do well for landlords - but student accommodation is setting the benchmark for letting performance.

Despite monthly rents increasing by 2% during 2013, the average buy-to-let yield for a UK landlord sits at 6.1% gross, down 0.1% on 2012. But student accommodation thrashes this figure with sustainable and assured yields of 7 to 9% - net.

Peter McDermott, Director of UK-based Go Global Investments, said: "These latest figures from Countrywide Residential Lettings show that despite 'Generation Rent', where the number of people renting from a landlord has doubled to 8.5 million in 15 years, gross rental yields are sticking around the 6% mark.

UK home sales highest for six years, says Rics

January 16, 2014

UK home sales highest for six years,...

The number of UK homes sold per surveyor has more than doubled since the depth of the housing market downturn, a survey suggests.

Just over 21 sales per estate agency branch were recorded in the final three months of 2013, the Royal Institution of Chartered Surveyors (Rics) said.

This was the highest number since March 2008, and up from 9.8 in January 2009.

The survey found surveyors expected prices and sales to keep rising.

Carney warns on housing as survey shows prices to rise

December 10, 2013

Carney warns on housing as survey...

Bank of England governor Mark Carney has said he is concerned about the "potential" for a UK housing market bubble, but will tighten lending requirements if necessary.

"There is a history in the housing market of moving from stall speed to warp speed," Mr Carney said. "We want to avoid that."

Meanwhile, a survey suggested house prices will continue "surging ahead".

A separate forecast said borrowing would rise.

Mr Carney was speaking at the Economic Club of New York.

His speech came as the Royal Institution of Chartered Surveyors (Rics) found that more surveyors expected prices to rise than at any time in the last 14 years.

A separate forecast by mortgage lenders predicted that borrowing would keep increasing in 2014.

But the Council of Mortgage Lenders (CML) added an "unbridled" housing boom was "unlikely".

The last time such a clear majority of surveyors expected price rises was in September 1999

Strong start for Help to Buy, say lenders

November 12, 2013

Strong start for Help to Buy, say lenders

Two major lenders have reported a strong uptake in the first month of the government's extended Help to Buy mortgage guarantee scheme.

Royal Bank of Scotland (RBS) and Halifax said they had received a total of 2,384 applications, potentially worth £365m in mortgages.

The scheme is designed to encourage lenders to offer mortgages with deposits as low as 5%.

But critics are concerned it could help to create a UK housing bubble.

RBS and its subsidiary NatWest, and Halifax - owned by Lloyds Banking Group - are among the few lenders to offer mortgages under the government's extended scheme.

Help to Buy: equity loan scheme surging ahead

October 16, 2013

Help to Buy: equity loan scheme...

The Help to Buy equity loan scheme has captured the imagination of the public with more than 15,000 reservations for new build homes in the first six months, the Government has revealed.

Housing Minister Kris Hopkins said the equity loan scheme, part of the Government's Help to Buy programme, had given the housing market a kickstart by driving up the rate of housebuilding and helping hardworking families buy a home.

Under the equity loan scheme buyers can purchase new build homes with just a 5% deposit, facilitated by an equity loan from the government of up to 20% on properties with a value of £600,000 or less. 

15,000 homes sold under Help to Buy in the first six months

October 10, 2013

15,000 homes sold under Help to Buy in...

There have now been 15,000 reservations under the first phase of Help to Buy.

The announcement was made by new housing minister Kris Hopkins and demonstrates the strength of the boost to the new homes industry.

The scheme was launched in April and takes the form of a shared equity mortgage with the loan of up to 20% having to be repaid when the property is sold. Importantly, the 20% that will have to be repaid will be the percentage of what the property is worth at the point of resale, not the 20% of the original value.

For example, a new home is bought now for £300,000 with a 5% deposit of £15,000, a 20% government shared equity loan of £60,000 and a 75% mortgage of £225,000. When the house is resold, its value has increased to £500,000 and the seller must repay the 20%, which has risen to £100,000.