Author: Coast to Country Lettings

Mortgage brokers are concerned about the growth potential for the BTL market over the course of 2016, according to new industry research carried out by NatWest. 66% of the 441 intermediaries that took part in the survey used in the research said there has been an increase in demand for buy-to-let mortgages over the last six months, with only 7% of customers experiencing a decline. An Increase in Buy-to-Let Business Just over 32% of those surveyed expect to see an increase in buy-to-let business over the first and second quarter of this year, while 41% expect a slight decline. 27%…

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In the past, the private rented sector (PRS) mainly consisted of people who were unable to afford the cost of their own homes. Today, that has changed.  The convenience and freedom offered by rented properties have driven up the number of people living in rented properties across the UK. Indeed, the entire country is witnessing a massive resurgence of rental culture. For investors, this shift in preference is significant. Previously, tenants didn’t have to spend too much time on the decision making process before renting a property. Today, however, the scrutiny is much more intense, especially among the younger generation…

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From the 1st of April 2016, property owners that invest in a second property will be required to pay the extra 3% of the purchase price in stamp duty.  Properties affected by this new policy include buy-to-lets and second homes, however, commercial, semi-commercial, land and residential purchases are exempted. The additional 3% charge is applicable to current stamp duty land tax rates. While the new regulations appear to be targeting the buy-to-let market, landlords need to be aware of certain things: The Treasury is becoming stricter regarding what qualifies as a main residence when it comes to paying the extra…

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A recent study suggests that fears of potential doom and gloom in the private rented sector are now firmly behind us, with rental prices growing faster than any other year in the last four. The report, commissioned by estate agents Your Move and Reeds Rains, has found that the average home rental price has gone up by a stunning 3.4%, and has now reached an impressive average of £794. This 3.4% rise is the most significant since 2011, which was also a particularly good year in terms of rental growth. Rental prices grow for Eastbourne landlords The study also found…

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Two landlords, Steve Bolton and Chris Cooper, are mounting a legal against the government’s new policy on tax relief for BTL landlords. The new policy, brought into law in 2015, bans BTL landlords from offsetting the costs incurred in mortgage interest against their profit when they fill in their tax returns. Unsurprisingly many landlords are unhappy with the changes, as these new rules take the radical step of redefining the nature of profit and loss in a way that exclusively affects smaller private landlords. When these rules come into force as of April 2017, some landlords will be forced to…

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A poll of buy-to-let owners carried out by the Deposit Protection Service (DPS) suggests that rental prices will increase as a result of the higher taxes landlords are facing in future. In the summer, the government announced that the amount of tax relief available for interest on buy-to-let mortgages would be reduced. This was followed by the chancellor’s autumn statement announcement which unveiled plans to add a three per cent surcharge on stamp duty for all buy-to-let property investments from the start of April. 68% of people that responded to the DPS poll (focused on how landlords felt the change…

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Low-interest rates and the increasingly favourable buy-to-let mortgage products in the market today mean the appetite for property investment is higher than ever. Official industry data has shown strong house sales figures in the past few months and the numbers are expected to continue rising. The latest statistics released by the HMRC showed that the number of residential transactions and non-residential transactions in the property market amounted to a combined total of 115,650 for October alone. When compared to the total recorded for the month of September, this is a 0.2% drop. However, it highlighted the continued strength of the…

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PRS in the UK is now more active than ever. Figures provided by Eurostat shows that the number of people that own their homes is one of the lowest across the continent. A few decades ago, the number of people in Britain that own their home was lower than the number of people that rented their homes.  The early 70s saw a change as the numbers for property owners and renters became even for the first time ever. The number of people that owned their homes grew for a while until a peak where 3 in 4 people owned their…

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For landlords and letting agents the importance of keeping tenants happy cannot be overemphasised. Happy tenants make life easier and ensure the profits keep rolling in. Such tenants will decide to stay beyond the expiration of their original tenancy, ensuring you don’t have to deal with months of lost rent as you wait for new tenants. You will also avoid dealing with the uncertainty and potential problems that new tenants may bring. If you have tenants that pay as at when due, keep up with their own side of the maintenance bargain and are generally problem free, you should do…

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Are you a landlord or tenant confused by some of the lettings jargon? This piece explains some of the most commonly used terms that you will come across. Break Clause This clause is often inserted in a fixed-term tenancy, especially if the initial fixed term is for a year or more. With the clause, tenant or landlord can terminate the tenancy early by giving two months’ written notice. Cesspits In properties that are not connected to public sewers, sewerage is captured in a cesspit. The pits are emptied from time to time. Assured Shorthold Tenancy (AST) This is the agreement…

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