Reeds Rains Property Blog

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Rental Regional Review

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England

Continuing this year’s trend of rents increasing by more than the rate of inflation, our latest Buy to Let Index shows that June experienced the quickest rise since records began in 2009. 

The average rent in England and Wales has reached a high of £789, that’s up 1.4% on May’s figure and up 5.6% since last June, with nine of the ten regions in England seeing increased annual growth in the last month. The East is experiencing the strongest rises, with rents increasing by nearly 50% more than those in London. These rises are being driven by a lack of stock and an increase in people’s ability to pay higher rents as the economy recovers. 

Adrian Gill, Director of Reeds Rains, comments, “Growing wage packets and a strengthening economy mean that a greater number of tenants are able to afford higher rent but we mustn’t lose sight of the driving force behind rent increases – the mismatch of supply and demand. Expanding our housing stock needs to become a national priority.”

Perhaps giving weight to the argument that an increasing undersupply of housing stock is primarily responsible for current rent levels, our Index (Hyperlink) also shows that the proportion of rent in arrears is continuing to rise. In June it stood at 8.7%, up around one per cent on both May 2015 and June 2014. However, the overall trend across the past five years, despite peaks and troughs, is downward and therefore indicative of a slow and steady economic recovery.

Annual returns have fallen slightly for landlords, from 11.9% in the 12 months to June 2014, to 9.2% for the year to this June. Rental income made up more than half of the total, demonstrating the strength of the rental market and the importance of understanding which is most important to you as an investor, capital growth or income for your Buy to Let profits.

In the face of the latest Budget changes targeting landlords’ profits, it is important to remember that property can still offer consistently good returns. However, Adrian Gill states that if the industry is to continue to thrive in the long term, “there needs to be a greater emphasis on what can be done to help tenants and landlords alike. It’s one thing to slap landlords with a tax and call it a done deal, and quite another to address the issue of housing in a consistent and sustainable way. The cornerstone of progress, as ever, is housebuilding.”

Wales

The rental market in Wales remains steady, with an encouraging one-month increase in rents of 1.9% from May to June. Average rents stand at £567, holding their own against the Midlands and East Midlands, and higher than Yorkshire and the North East.

Unlike the majority of regions in England, yields in Wales have increased slightly in the 12 months to June, currently at 4.5%.

And a reminder that private landlord registration will become obligatory in Wales this Autumn, delivered by Rent Smart Wales. You must register both yourself and the addresses of your rental properties, and if you undertake the letting or management of your properties, you must also become licensed. See https://www.rentsmart.gov.wales/ for full information.

N.Ireland


If you are looking to make energy performance improvements to your rental property, you could cut the amount of tax you pay by claiming the Landlord’s Energy Saving Allowance (LESA), which allows you to deduct various insulation and draught-proofing costs.

At the same time, provided you have a valid energy performance certificate (EPC) for your rental property, you can apply for a grant to install renewable heating systems, via the Northern Ireland domestic Renewable Heat Incentive. If your application is successful, you will receive an upfront sum and a payment every year for seven years. To be eligible for the scheme, the system must be biomass, air or ground source heat pumps or solar thermal panels. See http://www.nidirect.gov.uk/domestic-rhi-introduction for more information.

Mortgage Monitor - August 2015

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House purchase lending falters in July as threat of base rate rise draws closer

  • July sees 65,356 house purchase approvals, down 1.8% on June due to rate-rise uncertainty
  • Annual growth slows: house purchase approvals fall 0.2% year-on-year, after three months of strong annual increases
  • Small deposit lending falls 7.1% year-on-year, with just 11,400 loans in July as banks withdraw cheapest mortgage rates

The number of mortgage approvals for house purchase has fallen back against a backdrop of the Bank of England’s threats to raise the base rate, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.

There were 65,356 house purchase mortgage approvals in July, down 1.8% from 66,582 in June, slipping from an upward trajectory that has broadly persisted for the previous eight months.

On an annual basis there were 0.2% fewer approvals, down from 65,517 in July 2014. This is the first year-on-year fall since March 2015.

This fall comes as one member of the Bank of England’s nine-strong Monetary Policy Committee voted to raise the base rate from its current historic low of 0.5% – and as warnings of an encroaching increase continue.

READ THE FULL REPORT HERE >

Property and Prosecco Open House Event by Reeds Rains Acomb

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Left to right - Lauren Blake with Estelle Moorhouse

Reeds Rains has provided a refreshing way to sell property as they have hosted a Property and Prosecco Open House Event which created a real buzz around a property for their client.

The event was held at the four bedroom, detached house in Little Ouseburn, York on a Saturday afternoon and welcomed buyers to view the property while they enjoyed a glass of prosecco and cake.

Lauren Blake, branch manager at Reeds Rains Acomb and Estelle Moorhouse from Reeds Rains York, hosted the open house, welcoming buyers and showing them around the property.

 

Sycamores, 94 Main Street, Little Ouseburn, York YO26 9TG

The Reeds Rains marketing team actively promoted the event using social media while the York branch network displayed specifically designed material in their windows and sent out invitations to potential buyers registered on the data base.

Lauren says: “We really like to go the extra mile for our clients and part of that is coming up with fresh, proactive ideas to reach the widest market audience. Our aim is to sell our clients property for the right price and within a reasonable time frame."

If you would like to know more about how Reeds Rains Acomb can help you sell your property and host a similar event for you, please contact Lauren on 01904 782621 (*) or email lauren.blake@reedsrains.co.uk

 

Reeds Rains Acomb 

 

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

 

Reeds Rains Open house event to get you moving in York

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Reeds Rains Open House Event – blog article from Reeds Rains

Sycamores, 94 Main Street, Little Ouseburn, York YO26 9TG

Reeds Rains Acomb is hosting an Open House Event on Saturday 15th August 2015. 

The event will take place at Sycamores, 94 Main Street, Little Ouseburn, York YO26 9TG at 2.30pm. Prospective buyers will have the opportunity to view the property at their convenience and also meet a representative from Reeds Rains to find out more about the sale. 

The aim is to meet the demand of new buyers registering with Reeds Rains and looking for their next home in Yorkshire and at the same time support sellers in marketing their property.

Lauren Blake branch manager at Reeds Rains Acomb says: “Reeds Rains love helping buyers find their dream home and vendors achieve the best possible price. Our Open House Events are always appreciated and helps us meet the expectations of our vendors who are often really pleased with the outcome. Vendors like the idea of preparing their home for a one-off event and the buzz of having multiple viewings in one day.”

Reeds Rains is inviting all its existing clients to take part in the event. It would also like to invite people who are considering selling their home, or who are on the market with other agents and who are looking for a fresh marketing approach, to contact them for a free no obligation market appraisal.

Reeds Rains already have viewings booked for the event and encourage buyers to call them today to register their interest in attending. For more information, contact a member of the Reeds Rains team at Reeds Rains Acomb, 1 Carr Lane, Acomb, York, YO26 5HT or Call 01904 782621 (*) 

Reeds Rains Open House Event – blog article from Reeds Rains

Property Details - Sycamores

Enjoy stunning, glorious views over open countryside from this substantial property set in the highly regarded village of Little Ouseburn, between York and Harrogate. This immaculately presented, detached property offers modern, spacious, four bedroom accommodation which will appeal to the discerning buyer. Plans to create an additional bedroom with walk in wardrobe and an orangery have been drawn and are available for potential buyers to consider which would take advantage of the superb views. 

Currently the property comprises of an entrance hallway, lounge, dining room, cloakroom/wc, kitchen/breakfast room, utility room, four bedrooms, en-suite shower room/wc to master bedroom, family bathroom/wc, delightful gardens, sweeping driveway providing ample off road parking and a double garage. 

Stunning, glorious views over open countryside

Little Ouseburn is situated approximately 14 miles between York and Harrogate and offers great road and rail links. The A1 is just 6.5 miles away and mainline stations are just 3 miles away at Cattal and Kirk Hammerton. Nearby are highly regarded schools for all ages, including Queen Ethelbergas. 

This delightful property presents buyers with a rare opportunity indeed, therefore a personal viewing to appreciate the tranquil location and stylish interior is highly recommended by Reeds Rains. 

Find out more here.

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

Second steppers see equity position improve

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Second steppers see equity position improve – blog article from Reeds RainsReeds Rains helping their second steppers

Research conducted by Lloyds bank shows that seven in ten (71%) second steppers feel that their financial position has improved over the last year, with higher house prices increasing the equity of those still living in their first homes. (*)

Second steppers are those home owners still living in their first home but looking to take their next step up the property ladder.

The price paid for their next home by a typical second stepper is more affordable now than it was a year ago when compared with earnings with many second steppers sitting on an equity boost of £87,000.

The research was conducted on 505 second steppers who were interviewed by BDRC Continental, the UK’s largest independent research consultancy. (*)

Kevin Beastall regional managing director for Reeds Rains estate agency says: “Second steppers have faced some difficult challenges and many have been stuck in their first homes. On the whole, first time sellers are in a much better position than they were five years ago which is good news for the housing market as they are the link between first time buyers and the rest of the housing ladder.

Second steppers are living in the homes that the first time buyers need to buy to keep the market moving. Without movement from second steppers, progression on the ladder comes to a standstill on the second rung. 

One in three (33%) second steppers think it will be easier to sell this year and we are seeing an increase in first time sellers come to Reeds Rains looking to take advantage of the equity they have built up.”

Reeds Rains currently has a range of properties which are suitable for people looking to move up the ladder and if you are a first time seller who would like to find out how you can release the equity in your property then visit www.reedsrains.co.uk to find your local branch.

 

(*)http://www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/lloyds-bank/2015/150605-second-steppers-2015.pdf

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