Reeds Rains Property Blog

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Buy-to-Let Index - September 2014

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Rents hit fresh record despite sharp slowdown in annual rises

  • New all-time record high of £768 per month for average residential rents across England & Wales
  • Comes despite slower rent rises of just 1.5% in year to September, down from 2.4% in year to August
  • Tenant finances improve with only 7.2% of all rent in arrears, falling from 8.5% in September last year
  • House price rises take landlords’ gross returns to record 13.4% before mortgage or maintenance costs.

Rents have edged to a new all-time record, at a slowing annual rate of just 1.5%, according to the latest Buy-to-Let Index from the UK’s largest lettings agent networks, Your Move and Reeds Rains.

Residential rents across England and Wales now average £768 per month, or £10 higher than in September 2013.

On a monthly basis September’s average rents are 0.8% higher than in August, representing a rise of £7 in absolute terms since the previous month.

Annual growth has slowed dramatically since August, when rents were 2.4% higher than a year before – rising just 1.5% over the twelve months ending September 2014.

David Newnes, director of estate agent Reeds Rains, comments: “Historically rent rises have broadly tracked inflation.  And as the wider cost of living grows ever more slowly, so too has the cost of renting a home.

That said, autumn is always a busy period for the lettings industry, and this has been no exception.  Looking ahead, it is likely that rents in most parts of the UK will have now reached their seasonal peak – so as the market cools along with the autumn weather there may be opportunities for some tenants to pick up a favourable deal."

Read more about the Buy-to-Let Index September 2014 here 

How’s That!

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Members from Acomb Cricket Club

Local estate agents Reeds Rains, sponsors of Acomb Cricket Club, is delighted the club has been promoted from Division 1 of the York &District Senior League into the Premier Division.

Acomb Cricket Club beat Sessay into second place on the last day of the season, after getting a winning draw away at Bridlington. Sessay lost the top spot and this allowed Acomb Cricket Club to leap to the top. From 5 points behind going into the last day, they ended up 14 in front.

Richard Sykes Chairman says: “There have been 3 main players standing out a mile from the rest of the team, skipper Andy Tute scored 751 runs, Matthew Dale bagged 669, and his brother Joe achieved 532.

Mark Bell was the top wicket taker with 39, followed by Joe Dale taking 28 wickets.  Congratulations to Georgie Brown who reached a hat-trick against Driffield.

Wicket keeper Richard Sykes took 21 people, supported in the outfield by Martin Pepper and Matthew Dale who both got 15 catches, and Joe Dale who took 13.

Going forwards, the first team is now driven to make the top 6 of the premier league next season which will see them promoted into a new structure for 2016, which will see us playing at better grounds against better opposition.  We’re trying to attract a few new players to the club over the off season to boost the numbers throughout the club, and allow our second team to progress up through the divisions also.

We value the support From Reeds Rains in Acomb who have been fantastic to the club during the season.”

Reeds Rains branch in Acomb, York

The sponsorship is part of Reeds Rains drive to support the local community and create greater links with it

If you would like to find out how Reeds Rains can help you buy or sell your property then visit the Acomb branch at 1 Carr Lane, York, North Yorkshire, YO26 5HT or call 01904 782621(*) for more information.

 

(*) Calls maybe recorded for training and/or monitoring purposes.

Mortgage Monitor August 2014

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House purchase approvals fall 5% in August

As holiday season causes a summer slowdown from July

  • Monthly house purchase approvals fall 4.6% from July to 63,485 in August
  • Higher LTV lending forming greatest proportion (18%) of house purchase approvals since 2008
  • Higher LTV lending growing 51% year-on-year with 11,300 higher LTV loans in August
  • North West and Yorkshire & Humber home to highest proportion of higher LTV loans – areas where Help to Buy is also needed most

House purchase approvals slipped 5% in August, as the mortgage market slowed down for summer, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.

There were 63,485 house purchase approvals in August, 4.6% lower than 66,569 approvals in July. It was the second consecutive month in which house purchase approvals declined as the holiday season temporarily slowed the lending recovery. Since the start of June, monthly house purchase approvals have fallen 5.4%.

However, a recovery in monthly approvals in June suggests that the recent fall is down to the holiday season, rather than an impact of new regulation. MMR was introduced on 26thApril 2014, and after a slight fall in lending in its pilot month, house purchase approvals increased 8.4% between May and June.

On an annual basis, house purchase approvals increased by 0.3% annually, from 63,293 in August 2013.

Richard Sexton, director of e.surv chartered surveyors, explains: “The summer holiday season has temporarily slowed the mortgage market, as home-movers hang up their property search in exchange for buckets and spades.

But this is a seasonal stagnation rather than a sign of a more permanent decline. The new MMR regulations have been fully absorbed into the mortgage application process, the backlog of applications they temporarily caused has all been cleared away, and now the mortgage market is in full health moving forwards.

“As the seasons change and we move into autumn, we are already anticipating that mortgage approvals will bounce back upwards. Lenders are signalling a desire to pump up lending volume towards the tail end of the year, and there is still a whole host of buyers desperate to get onto the housing ladder, particularly at the bottom of the market.”

Read the full Mortgage Monitor release here

All You Need to Know about MMR

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In April all lenders were required to change the way that they assessed residential mortgages.  Historically lenders had used simple multiples of the applicant’s income to dictate how much they would lend and although underwriting had become more complex with other factors taken into account there was still a focus on the “top line” of applicants income.

 On the 26th April this year, all that changed and lenders were required to look at the customer’s ability to make the payments, not just at the current pay rate but also at a notional figure taking into account the fact that rates are likely to rise in the short to medium term.

At the time there was a great deal of scaremongering that went on, thankfully, whilst the scrutiny that lenders do apply to potential mortgage applicants has risen most of the scare stories have proven unfounded.

What has become clear however is that consumers still don’t really understand how the changes apply to them.  A recent survey by TSB showed that only 51% of aspiring homeowners had even heard of the Mortgage Market Review (MMR), which by consequence means that almost half of people looking for a house don’t understand, or in some cases even know about, the changes.

MMR is primarily designed to ensure that people only borrow what they can reasonably afford to repay so it is encouraging to read in the same report, that 41% of those who were aware felt that the rules would ensure this.

As with most things getting professional advice is always a great starting point; borrowers have to remember that this is almost certainly going to be their largest purchase and for most people is their single largest outgoing each month, so getting good advice, listening to that and acting on it is a sound idea.

There are a number of things that can be done in preparation for that meeting and we always advise our customers to have taken time to prepare a few basics before coming in to see an adviser;

·         Think about your expenses after you have moved, these will likely to be different to where you currently live and certainly will be significantly different for those who are still living with parents.

·         Document these expenses and look at what is left over to pay a mortgage and the associated protection policies.

·         Start saving as early as possible, even if it isn’t a huge amount each month

·         If you have had financial difficulties in the past get a copy of your credit report. This won’t necessarily stop you getting a mortgage but may mean that an adviser has to look at different option.  Non disclosure of any historic financial problems is viewed very badly by lenders so be very upfront about the problems and the reasons for them

·         Check that you are on the electoral role, if a lender can’t find you, they are unlikely to want to lend you money.

By John R Hargreaves, Financial Services Director, Reeds Rains Estate Agents

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

An administration fee of £499 will be payable when you sign the professional fee agreement upon mortgage application.

Joe Dale is Acomb Cricket Clubs player of the month for July

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Reeds Rains Branch Manager Andy Jacques with Joe Dale, Acomb Cricket Clubs player of the month.

Reeds Rains is delighted to announce Acomb Cricket Clubs player of the month for July. The player of the month Award recognises an individual player from the Acomb Cricket Club who has demonstrated outstanding performance for the club.

Congratulations to Joe Dale on successfully winning the award for July. Joe played 3 times for the 1st 11 during the month of July (1 game rained off).  He scored 3 successive half centuries; with a match winning 58. He has also been successful with further scores of 73 against Sessay, and 72 against Pickering taking catches and wickets along the way. Joe also enjoys supporting All Out Cricket Coaching in York, and helps by coaching boys and girls across all ages and abilities.

The Acomb Cricket Club, which is in division one of the local league, is a family orientated club with history dating back to 1925 with teams in the York & District Senior League, the York Vale League as well as the Pilmoor Evening League.

Andrew Jacques is the Acomb branch manager for Reeds Rains who works alongside the club. He comments: “Joe has worked hard and achieved some great results and we are delighted to be able to offer support by sponsoring the local cricket club.  Joe is a very capable player with lots of talent and commitment who is willing to share his experience with others, especially the next generation of young cricketers.”

If you would like to find out how Reeds Rains can help you buy or sell your property then visit the Acomb branch at 1 Carr Lane, York, North Yorkshire, YO26 5HT or call 01904 782621(*) for more information.

(*)Calls may be recorded for training and/or monitoring purposes.

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