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FINALLY- We have a result! Whether or not it is your preferred outcome, at least the confusion suffered by the UK, and the property market in particular, is at an end. Like it or not, it looks like Brexit will now formally happen on 31st January 2020 and politicians can then get on with debating other issues, as they should.
As far as property is concerned, D-Day has now arrived. Countless buyers and sellers,
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Labour Party’s U-turn on the £1.2bn grab on Nottingham landlord’s wallets
Well, with the General Election just over the horizon and having been asked by a number of Nottingham homeowners and Nottingham buy to let landlords what the different main parties would do to the local property market, in this week’s article we focus on Labour’s contentious Right to Buy proposal for private tenants. Launched in September, the plan was designed to force landlords to sell their buy to let investments to their tenants who wished to buy them…. at a substantial discount.
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Are the Tory’s Selling Off the Final Part of the Family Silver?
10,931 Nottingham Housing Association Households & the Right to Buy Their Homes
In 1979, Margaret Thatcher was voted in on a Tory landslide with the ‘right to buy your own council house’ being a mainstay of Conservative policy. She encouraged people to buy their own their own council flats and houses, although it might interest you to know, that the council tenant right to buy idea was first proposed in the late 1950s and formed part of the manifesto of the Labour party. Yet Maggie’s version was based on massive discounts for tenants and 100% mortgages (i.e. no deposit). However, the real bugbear was that half the monies raised form the house sales went to central Government and the other half to the local authorities … but that money had to be used to reduce the local authorities debt rather than building new houses - so houses were being sold and not replaced.
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Nottingham Buy to Let – Past, Present and Future
Investing in a Nottingham buy to let property has become a very different sport over the last few years.
In the glory days of the five years after the turn of the Millennium, where we had double-digit house price growth, mortgage companies (notably Northern Rock, HBOS and their ilk) desperate to get on the buy to let mortgage bandwagon with rates so low it would make the belly of a snake seem high and an open mildness to give loans away with not so much more than a note from your Mum and with hardly any regulatory intervention… anyone could make money from investing in property – in fact it was easier to make money than fall off a log! Then we had the unexpected flourish of the property market, with the post credit crunch jump in the property market after 2010, when everything seemed rosy in the garden.
Yet, over the past five years, the thumbscrews on the buy to let market for British (and de facto) Nottingham investors have slowly turned with new barriers and challenges for buy to let investors. With the change in taxation rules on mortgage relief starting to bite plus a swathe of new rules and regulations for landlords and mortgage companies, it cannot be denied some Nottingham landlords are leaving the buy to let sector, whilst others are putting a pause on their portfolio expansion.
With the London centric newspapers talking about a massive reduction in house prices (mainly in Mayfair and Prime London – not little old Nottingham) together with the red-tape that Westminster just keeps adding to the burden of landlords’ profit, it’s no wonder it appears to be dome and gloom for Nottingham landlords … or is it?
One shouldn’t always believe what one reads in the newspaper. It’s true, investing in the Nottingham buy to let property market has become a very different ballgame in the last five years thanks to all the changes and a few are panicking and selling up.
Nottingham landlords can no longer presume to buy a property, sit on it and automatically make a profit
Nottingham landlords need to see their buy to let investments in these tremulous times in a different light. Before landlords kill their fatted calves (i.e. sell up) because values are, and pardon the metaphor, not growing beyond expectation (i.e. fattening up), let’s not forget that properties produce income in the form of rent and yield. The focus on Nottingham buy to let property in these times should be on maximising your rents and not being preoccupied with just house price growth.
Rents in Nottingham’s private rental sector increased by 3.82% in the past 12 months
Rents in Nottingham since 2008 have not kept up with inflation, it is cheaper today in REAL TERMS than it was 11 years ago and some landlords are beginning to realise that fact with our help.
Looking at the last few years, it can be seen that there is still a modest margin to increase rents to maximise your investment (and it can be seen some Nottingham landlords have already caught on), yet still protect your tenants by keeping the rents below those ‘real spending power terms’ of the 2008 levels.
Buy to let must be seen as a medium and long-term investment ….
Rents in Nottingham are 9.2% higher than they were 3 years ago and property values are 23.27% higher than Jan 2016
…and for the long term, even with the barriers and challenges that the Government is putting in your way – the future couldn’t be brighter if you know what you are doing.
Investment is the key word here… In the old days, anything with a front door and roof made money – yet now it doesn’t. Tenants will pay top dollar for the right property but in the right condition. Do you know where the hot spots are in Nottingham, whether demand is greater for 2 beds in Nottingham or 3 beds? Whether city centre apartments offer better ROI than terraced houses or semis? With all the regulations many Nottingham landlords are employing us to guide them by not only managing their properties, taking on the worries of property maintenance, the care of property and their tenants’ behaviour but also advising them on the future of their portfolio. We can give you specialist support (with ourselves or people we trust) on the future direction of the portfolio to meet your investment needs (by judging your circumstances and need between capital growth and yields), specialist finance and even put your property empire into a limited company.
If you are reading this and you know someone who is a Nottingham buy to let landlord, do them a favour and share this article with them – it could save them a lot of worry, heartache, money and time.
Kind Regards Angela Barbaro-Robins
©Copyright 2019 Angela Barbaro-Robins, Robins Estates.
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November 2019 Market Comment
As the Brexit debacle continues to be drawn out, so the evenings are drawing in. Home, as a place of warmth and sanctuary, becomes particularly significant at this time of year. It is interesting to note that a recent survey by Jackson Stops found that 70% of homeowners are unphased in their moving decision by Brexit issues. As we have reported before – most people just want to get on with their life and are more influenced by personal circumstances than the national interest in “will we-won’t we?”. The media really does hype things up!
The factors that affect people’s ability to move remain strong