Particularly in larger towns and cities, landlords and build-to-let management companies are increasingly dealing with a more transient tenant-customer base, many of whom are looking for ‘service-focused’ offerings and flexible tenancy agreements. With higher churn and concerns over cash flow, the demand for solutions that streamline the tenancy management process from start to finish is evidenced by the emergence of a number of PropTech companies operating in the space. Ripe for disruption is the tenancy deposit collection process. For many, paying what can be a substantial sum of money to secure rental accommodation is a major burden – particularly in London and the South East. At the same time, landlords simply want to ensure that they take on trustworthy tenants without having to spend a considerable amount of time and effort ensuring the correct boxes are ticked. In response, a number of insurance firms... [Read More]

Property Investor’s Factfile – April 2018 Commentary

April 18th, 2018 by Ruban Selvanayagam

Property Investor - Buy-to-Let - Facts and Stats - April 2018

April 2018 Property Investor´s Factfile The Property Investor’s Factfile presents a range of relevant data from national / London house prices, the latest buy-to-let Limited Company (SPV) loan rates, LIBOR / SWAP rates and rentals to mortgage debt figures and information on the first-time buyer sector. Below are some noteworthy observations over the last month: Property Market Trends Data published by the Halifax reported strong annual price inflation in the East Midlands and East Anglia, at 7.3% and 7.2% respectively, followed by Scotland at 6.7% and Yorkshire and the Humber at 6.1%. However, with prices in London seeing their sharpest annual fall since 2011, Paul Smith, economics director at IHS Markit (that collated the data) commented: “The subdued performance of the UK housing market, especially in the south of England, seems to reflect a general lack of appetite amongst households at present... [Read More]

Section 24 “Landlord Tax” – Expert Insights on Phase 2

April 12th, 2018 by Ruban Selvanayagam

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With the second phase of Section 24 of the Finance (No. 2) Act 2015 now in motion, the buy-to-let sector is bracing itself for yet another shock to the system. First in line for punishment are the heavily geared sole-trader landlords operating within higher or additional taxpaying thresholds. Then there are those unwittingly being pushed into the high tax bracket due to their inability to deduct a further 25% of mortgage interest costs. Although the 20% mortgage cost credit may attenuate some of the damage, these situations are likely to worsen in the coming years as the Section 24 screws are tightened. With the Chancellor’s priorities clearly elsewhere, most of the sector has now come to terms with the fact that any chances of top-down reform are slim – at least for the foreseeable future. As a result, over the... [Read More]