Northfields

Landlords Looking to Increase Their Portfolios Should Strike While the Iron is Hot

In its latest House Price Index report, Rightmove.co.uk reported that the market is ripe for buy-to-let landlords.  According to Rightmove, many agents are reporting that “buying activity is on the increase from investors”.

In the direct aftermath of the credit crunch, would be buy-to-let investors found securing finance difficult, but things are looking up in the borrowing department for landlords.  As lenders compete amongst themselves to attract dependable borrowers, buy-to-let investors reap the side benefits with lenders trying to attract landlords via higher loan-to-value ratios and lower interest rates.

Rents are widely expected to continue the upward trend we are currently seeing in the rental market.  Rightmove surveyed tenants and found that over half of the tenants surveyed expected rents to be higher in 12 months’ time.   This strong rental market is underpinning investor confidence with greater yields expected in the coming year.

Properties like the Freehold investment property pictured above which includes 8 apartments and a commerical unit, all with tenants and generating income already, will be much in demand.  (To find out more information about buying the pictured investment property, click the link)

Normally, buy-to-let investors have to compete with first time buyers for the limited funds available through lenders.  However, currently there are far fewer first time buyers offering up any sort of competition to landlords.  Lenders are also looking more favourably on landlords as it is expected that rental returns will continue to improve, allowing landlords to pay off their mortgages more quickly. 

Before racing off to secure yourself a mortgage, it is worth heeding a word of caution from the money advice website thisismoney.co.uk about buy-to-let mortgages.  This website wisely advises shopping around, saying: 

"Do not just walk into your bank and building society and ask for a mortgage. It sounds obvious, but people who do this when they need a financial product are one of the reasons why banks make billions in profit. If you are looking for advice consider using a specialist buy-to-let mortgage broker. Remember asking them for information means you are under no obligation to use them."

Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-1596759/Ten-tips-buy-let.html#ixzz1flTK5Rvc

Another point to make about independent mortgage brokers is one that could save you a lot of money - independent brokers often have access to deals and rates that are not available on the high street so they are well worth seeing just to check that you have found the best possible deal.  You wouldn't take the first quote for car insurance you were offered without checking that it was the best you could find, so why would you do any differently when purchasing a property?  If you would like a referral for an independent mortgage broker, call Northfields on 0208 840 6666 or e-mail us at sales@northfields.co.uk and we'll put you in touch with someone who can make sure that you get the most out of your investment.

Miles Shipside of Rightmove offers his comments on the property investment climate: “Reports suggest that buy-to-let mortgage approvals are at their highest for nearly three years. With good prospects for long-term tenant demand from those that cannot buy and consequently solid rental returns, investors will be looking forward to seeing sellers suffer a longer than usual buyer slowdown this winter. The result is a window of opportunity for buy-to-let investors to bag some bargains, spend less on finance and charge more in rent”. 

When Shipside refers to the “longer than usual buyer slowdown this winter” he means that the usual seasonal slowdown that occurs when people are distracted by holiday festivities is expected by Rightmove to result in more properties continuing to linger on the market, thus he believes, forcing sellers to accept a lower asking price for their properties. 

While that may be true in some areas where the house prices have suffered, in the South East and in London in particular where house prices have been resistant to the economic woes haunting the North of England, would-be landlords in the capital will have to be savvy to bag the best investment properties.   

Buy-to-let investors should be sure to register with an estate agent.  A good agent will be looking to build up a relationship with their registered serious investors and will make sure that you hear about any new properties even before they can be published on websites and property portals.  So be sure to call a member of the sales team at Northfields on 0208 840 6666 to register your details or give us your property wish list via our online form.

Landlords Stand to Make £3,776 Per Rental Property Per Year

Rents are rising. In London the average rent has broken the £1,000 per month barrier.

In England and Wales average rents rose by 0.7% in June to reach a new record high of £701 per month in June. This rise represents an annual rent inflation of 4.1%. Those figures are for outside our capital however. In the metropolis, rents broke a new record, capping off at an average of £1,006 per month – the first time the £1,000 a month barrier has been breached. In London then average rents rose by a full 1% in June.

When comparing the growth of London’s rental market with other regions it is obvious that London is far outstripping the rest of the country. Over the last year, London rents went up by 6.9%. While other areas such as North East and the West Midlands, experienced substantial rises of 5.1% and 4.6% respectively, neither quite touches London. In fact there was only one area over the past year where rents fell – the East of England. Even then, the rent drop was a mere 0.3%.

And that’s not all – the BBC recently reported that Oxford Economics believes that rents could go up 20% over the next five years.

Why Are Rents Going Up?

Fewer People Buying – The people who would normally have transitioned from tenant to first time buyer are remaining in rented properties, largely because many are unable to save up the large deposits required by lenders or do not meet lending criteria, while others are undermined by a lack of confidence in the market, rather than actual financial restraints. The knock on effect of these people remaining in rented accommodation means that there are more people trying to rent a limited number of properties.

Growing Population– The UK's population increased by nearly half a million last year. So many new residents need a place to reside and must compete for limited housing.

Housing Shortage- Just 102,570 new homes were built last year. When you compare that figure to the half a million new people who swelled our population, it is obvious that there are not nearly enough homes currently being built, leading to competition for existing homes. Many house builders have many 1-2 bedroom properties in city centres that they can’t get sold, so many firms, like Bovis, who have confirmed that they have shifted the mix of new homes being built to larger more expensive properties. So, even the new properties being built will not be of the affordable type suited for either rental or first time buyers.

What Does That Mean for Tenants?

Competition is fierce – it is not unheard for properties to be let in one day. If you see a property you like, you must offer quickly and seriously, to secure the property.

Market yourself as a reliable tenant – Believe it or not, landlords are not just looking for the maximum rent from tenants, they are also looking for reliability. So if you have a secure job, make sure you point that out.

Get all documentation ready so you can offer quickly – make sure you beat competing tenants to the offer by simply being prepared. This will also show the letting agent and landlord that you are well organised and motivated.

Raise the deposit in advance so there are no delays – again, beat your competition by simply being better prepared.

If you are sharing with friends, agree beforehand to be jointly responsible for the rent - a singly responsible person may look unattractive to landlords

Use a guarantor, if necessary - if you are a student or do not have a steady income - use a guarantor, such as a parent or other homeowner who will make the landlord feel secure. Not sure what a guarantor is? Read this article explaining the role of the guarantor.

Suggest a 18 month contract – if you take an 18 month contract you will be securing the property for a longer period of time and also saving the landlord extra administration and bother to find a new tenant. This type of commitment also makes you more reliable with a view to the long term.

What Does This Mean for Landlords?

The average monthly rent is now £28 a month higher than it was in June 2010. The total annual return on a rental property was 1.3% in June, as the rental income received by landlords is offset against an annual decline in property prices.

If property values continue on their current trend as predicted by many economists, a property investor could expect to make a total annual return of 2.3% over the next 12 months – equivalent to an average of £3,776 per property.

If you are a buy to let landlord, Northfields’s award winning lettings team can help you to find a reliable tenant quickly and even manage your property – we can tailor our service to meet your needs. Call our lettings team on 0208 567 6660 and tell us what we can do for you.

If you are looking to take advantage of the demand for rental properties our sales team can keep you up to date on the latest investment properties as they become available for sale. Call us on 0208 840 6666 to tell us what type of property you are looking for or click here to give us your details online.

Five to View: Studio and One Bedroom Flats for Sale in West London for Under £200,000

If you are a first time buyer or a buy to let investor,consider just 5 studio and one bedroom flats that Northfields has to offer, all available for under £200,000.  To see all the properties that Northfields is currently offering for sale, click the link.

1.  Excellent Value for Money

Located in Perivale is this attractively priced studio apartment with separate sleeping area, this flat would be an  ideal purchase for a first time buyer or rental investor. The property is situated in a purpose built block, which overlooks the Grand Union canal. The property benefits from a separate kitchen, sitting area and separate sleeping area located off the sitting room. Alperton Underground (Piccadilly Line) station is short walk away.

The Property for sale:  studio flat

Where: Brindley Close, Perivale HA0

The Price: £135,000

Click on the link to see more photos, floorplans and information on this studio flat for sale in Perivale or to book your viewing online.

2. Luxury Living with Concierge, Lift and Long Lease

A stunning west facing 1st floor studio flat in this iconic building which allows you to embrace the City Living lifestyle; boasting a luxury bathroom, contemporary kitchen and pull down bed. This gated development also benefits from concierge, lift and beautifully maintained communal gardens. It is being offered for sale with immediate vacant possession and benefits from a lease over 990 years. The property also enjoys excellent access to Chiswick, Hammersmith and Shepherd's Bush including Westfield Shopping Centre. An ideal opportunity for first time buyers to get on the property ladder.

The Property for sale: studio flat

Where: Bromyard House, Acton W3

The Price: £159,950

Click on the link to see more photos, floorplans and information on this studio flat for sale in Bromyard House, Acton or to book your viewing online.

3. Opportunity to Add Value

This purpose built studio flat is conveniently situated between Ealing Broadway and Pitshanger Lane. The property enjoys a large studio room with picture windows, separate kitchen and bathroom and the communal gardens. As the property needs some updating, the purchaser of this property will have the opportunity to add value to the property. The property is offered to the market with no onward chain.

The Property for sale: studio flat

Where: Clevelenad Road, Ealing W13

The Price: £169,950

Click on the link to see more photos, floorplans and information on this studio flat for sale in Ealing or to book your viewing online.

4. Available Vacant or with the Tenant In-Situ

A one bedroom first floor conversion flat located on the Askew Road, with great access to local amenities and transport links to nearby Hammersmith. The property is currently let, with the tenant paying £240pw and is offered for sale with either the tenant in situ or vacant. Currently requiring a degree of refurbishment, this would be an ideal purchase for an investor or first time buyer looking to get onto the property ladder.

The Property for sale: 1 bedroom flat

Where: Shepherd's Bush Green, Shepherd's Bush W12

The Price: £179,950

Click on the link to see more photos, floorplans and information on this 1 bedroom flat for sale in W12 or to book your viewing online.

5. Close to Transport

A modern top floor studio apartment, conveniently located on a popular sought after modern development. The accommodation includes studio room, fitted kitchen and modern bathroom. The property would make an ideal first time purchase or buy to let investment. The property is ideally located close to both Hanger Lane (Central Line) and Alperton (Piccadilly line) Tube Stations.  For the motorist there is easy access provided to the A40/M40 Central London and Heathrow Airport.

The Property for sale: studio flat

Where: Vicar's Bridge, Wembley HA0

The Price: £125,000

Click on the link to see more photos, floorplans and information on this studio flat for sale in Wembley
or to book your viewing online.

If you are thinking of making that leap from renting to home ownership, Northfields can help you to find the right property at the right price.  We recommend that you call us on 0208 840 6666 to register your details so that we are sure to call you as soon as new properties become available.

If you are an investor looking to capitalise on the demand for studio and one bedroom flats in the rental market, call us on 0208 840 6666 to ensure that we have the details of what you are looking for, to make sure you never miss out on the best priced properties.

Properties that are competitively priced tend to sell very quickly, so if you aren't able to call us make sure to click the link to register online now.

To see more properties that Northfields has for sale, click the link.

Is London heading for a double-dip recession?

Following Dennis Turner’s, Chief Economist at HSBC Bank, speech at the Ealing Chamber of Commerce, Northfields Estate Agents’ Managing Director and President of the Chamber, Richard Palfreeman comments: “The government have difficult choices to make and seem determined to see them through."

                                            Dennis Turner, Chief Economist at HSBC Bank

Dennis Turner gave the assembled business leaders what Richard Palfreeman thought to be “the here and now and addressing the issues affecting each and every one of us, our businesses and the ultimate impact on our economy in layman’s terms.” Questions covered were whether the slashing of budgets too viciously whilst not investing, was enough to keep our economy rolling or the most burning questions on whether we are heading for a double dip recession?

Richard says of the experience: “Dennis Turner is an economic legend. In challenging times like these, economic gurus such as Dennis Turner are in serious demand. As the Chief Economic Adviser for HSBC, Dennis is a rare breed and highly sought after. He heads a team advising bankers on economic trends both within industry sectors and at national and international level.” In a personal capacity, Dennis Turner was one of a small number of private sector economists who advised the pre-Blair Labour Party, retaining high level Government contacts.

Richard Palfreeman felt that Dennis’ speech was excellent and “confirmed our own sense that the housing market is not going to be affected in West London to the same extent as areas in the country, which are particularly dependent on public sector jobs.”  

In challenging times like these, it is good to see that “there is still demand in buying property in West London, with its good transport links and schools”, Richard Palfreeman observes further though, ”that people are constrained by lack of available finance. The real issue is not a lack of demand but the availability of mortgages. Though we do not wish to see a return to unsustainable lending, for the market to recover fully, we would like to see a return to sensible lending to First Time Buyers at 85% - 90% of loan to value.“

With the government and HSBC forecasting the economy to grow by 1.4% next year, the likelihood of a double dip recession is rescinding. And the current lack of competition in mortgage markets is causing the housing market to be artificially low.

For more information or advice on your mortgage and property needs call one of our friendly team members today on 020 8840 6666.

Five to View: Buy to Let or Investment Properties for Sale

Currently, the London rental market is very strong with not only students buoying up the market, but a return of corporate clients seeking London homes for their relocating staff.  For those buy-to-let investors, a strong rental market means that they will receive better returns on their investment,  making it a good time to add to their portfolios.  Take a look at 5 investment properties that Northfields Estates currently has to offer.

1.  An Investment Property with a Freehold Title

 

While this house could be converted back to a single family home, this freehold property in Acton, West London is currently divided into 2 one bedroom flats, plus a garden studio flat.  Tenants will be attracted by the off street parking and the 8 minute walk to East Acton underground (Zone 2).  Proximity to a tube is a great quality in an investment property and in our opinion this property represents excellent value for money

The Property for sale:  2 one bedroom flats, plus a garden studio flat OR single family freehold house

Where:  Carlisle Avenue, Acton W3

The Price:  £379,950

Click on the link to see more photos, floorplans and information on this investment property for sale in W3or to book your viewing online.

2.  Investment Property with a No Work Needed

 
  
If you are looking for a buy to let property that is move in ready, then look no further.  This one double bedroom flat features a reception with fireplace, large eat in kitchen and recently refurbished bathroom and is ready for tenants.  Plus tenants will be attracted to the proximity of West Ealing’s High Street and as well as Northfields Avenue and Northfields (Piccadilly) tube station and West Ealing (Paddington Line) station. Investors will also be glad to know that this property is offered for sale with no onward chain.

The Property for sale:  1 bedroom flat

Where:  Grosvenor Road, Hanwell W7

The Price:  £250,000

Click on the link to see more photos, floorplans and information on this buy to let property for sale in W7or to book your viewing online.

3.  Investment Property that is Priced Right

 

This one bed first floor conversion flat is an opportunity for investors to snap up a fantastic property situated on a popular road moments from the shops and transport links of both Northfields (Piccadilly tube station) and West Ealing (mainline to Paddington).  Priced to reflect the lease length of 70 years this property could prove a very positive investment.

The Property for sale:  1 bedroom conversion

Where:  Seaford Road, Ealing W13

The Price:  £190,000

Click on the link to see more photos, floorplans and information on this buy to let property for sale in W13 orto book your viewing online.

4.  Investment Property in an Up and Coming Area

 

Savvy investors in West London will already be aware that Hanwell is touted to be an up and coming area.  One of the reasons that property values in Hanwell are expected to rise is that Hanwell will be one of the stations on the new Crossrail system.  The construction of Crossrail is planned to be complete in 2017 with train services introduced over the 12 months following.  This exciting new link to central London will make Hanwell an increasingly desirable area and property prices as well as rental incomes are bound to rise.  Investors should be scooping up property in the area like this spacious first floor purpose built flat situated in this private residential development in the popular Olde Hanwell area with its local shops, canal side walks and variety of transport links (Boston Manor Piccadilly line tube station). 

The Property for sale:  1 bedroom flat

Where:  Green Lane, Hanwell W7

The Price:  £189,950

Click on the link to see more photos, floorplans and information on this property for sale in up and coming W7or to book your viewing online.

5.  Investment Property with a Stellar Location

 
  

You know what they say - location, location, location.  And this property in Windsor Road has certainly got a great location.  This road in the heart of Ealing Broadway has long been popular with buy to let investors as experienced landlords know that tenants will pay a premium to be situated so very near Ealing Broadway shops, bars and restaurants along with Ealing Broadway Station's Central/District line tube stations and mainline trains to Paddington/Heathrow.  This two bedroom garden apartment, in need of cosmetic updating, is an ideal purchase for the buy to let market. 

The Property for sale:  2 bedroom garden apartment

Where:  Windsor Road, Ealing W5

The Price:  £264,995

Click on the link to see more photos, floorplans and information on this ideal investment property for sale in W5or to book your viewing online.

If  you are looking to buy investment property, click here  to see all the properties Northfields is currently offering for sale.  Call us now on 0208 840 6666 to register your details and we will keep you on our investors list, so that we can let you know when properties with good returns become available.