All posts by Ruban Selvanayagam

Selling A Buy-to-Let Property

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Whether it’s due to Section 24 of the Finance (No. 2) Act 2015, Prudential Regulation Authority (PRA) borrowing restrictions or the spate of other regulatory measures, buy-to-let’s attractiveness as an asset class has certainly waned in recent years. The New Buy-to-Let Paradigm Nonetheless, although some 4,000 rental properties are being sold every month, talk of a ‘mass exodus’ of landlords is arguably exaggerated. Section 24, in reality, will affect about a third of those operating in the sector.  Those that can comfortably remain in the lower tax threshold should not face too much extra liability.  Similarly, those that are lowly-geared or own their assets in Limited company structures should be able to weather the storm (assuming there are no other changes on the horizon). Since the 2015 announcement, landlords have also been exploring whether it’s possible to legally mitigate the... [Read More]

Property Refurbishment 101

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Property Refurbishment 101

Given the unpredictable nature of carrying out property refurbishment works, the entire process can often be a minefield.  This is even the case with ‘vanilla’ and simple redecoration/cosmetic update projects. Most landlords, property traders and homeowners simply want to know that they can get projects done to a decent standard without being ripped off. Fortunately, although banishing rogue traders is perhaps too much to ask, the process is slowly but surely becoming more transparent – even if you’re handling the process remotely. This extended post starts with some general tips for refurbishing a property from beginning to end.  We then outline a handful of useful tools you can use to find decent tradesmen anywhere in the UK.  Finally, we run through the main bodies and organisations with whom you can crosscheck credentials (covering general refurbishment, electrical, plumbing, gas safety, windows,... [Read More]

Birmingham Midshires on Current Buy-to-Let Lending

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Birmingham Midshires on Buy-to-Let Lending

As a lender that’s held a firm position in the buy-to-let sector across various market cycles, we really appreciated the head of sales at Birmingham Midshires (BMS), Phil Rickards taking the time out to answer a series of topical questions. Phil elucidated on the impacts of the Prudential Regulation Authority (PRA) lending restrictions, how highly-geared landlords can address their borrowing issues and handle other risks in what is constantly evolving environment. He also gave some thoughts ongoing challenges faced by the buy-to-let market, some pointers on a making a successful mortgage application, how Section 24 has impacted BMS’s own underwriting processes as well as opinions on the Greater London and South East rental markets. And, of course, no contemporary interview is complete without asking a question about Brexit (although we left this till the end in our defence!) It would be interesting... [Read More]

Property Investor’s Factfile – October 2018 Commentary

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October 2018 Property Investor´s Factfile The Property Investor’s Factfile presents a range of relevant data for buy-to-let investors, traders and developers. Below are some noteworthy observations over the last month: Property Market Trends Bearing in mind the 2-month time lag, the latest Gov.UK House Price Index reported annual price rises of 3.1% – making average property values stand at £231,422.  North-west England saw the greatest monthly price rise (by 3.4%); the East Midlands saw a 0.2% drop in prices and house prices in London decreased by 0.7% in the year up to July 2018; The Royal Insitute of Chartered Surveyors (RICS) reported ‘robust’ price growth across Scotland and Northern Ireland; new instructions ‘edging further into negative territory’ and ‘sales expectations suggest activity is likely to remain stronger away from the south of England’ (see the links to historical reports here).  Chief... [Read More]

Buying and Selling Properties in 2028

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Buying and Selling Properties in 2028

Most buyers and sellers appreciate that agreeing to a property sale doesn’t necessarily mean that things will go according to plan. Around 1 in 3 property sales are still falling apart – often leaving both homebuyers and sellers out of pocket.  Throw in the stresses of reinstructing estate agents and effectively starting the process from square one, it’s no surprise that so many people despise the process. Yet, given the notable advances in the PropTech space in recent years, it’s worth highlighting where things currently stand and – more encouragingly – where they may be heading over the next decade or so. The Current Problems Although investment purchases tend to be more secure, Jefferies International estimates that 51.8% of all UK properties on the market are failing to sell within 10 months. Of course, price and the speculative nature of... [Read More]

PropCast – The UK House Selling Weather Forecast

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Previously available behind paywalls, the number of online tools to get a closer understanding of property market trends continues to grow. We spoke to Gavin Brazg, founder and CEO of The Advisory on PropCast – a market educational tool dubbed as the UK’s first house selling weather forecast.  We explore the following: What ‘The Advisory’ does and how this established (and recently updated) portal can help property buyers and sellers alike; Asking price biases and why over 50% of sellers struggle to shift their homes on the open market; A brief outline of what PropCast is, why it was set up, how it differs from other online property research tools; The dysfunctional relationship between estate agents and the public; Why estate agents “don’t win instructions by telling the truth”; How the data found on PropCast is sourced, cleansed and applied to the... [Read More]

Property Investor’s Factfile – August 2018 Commentary

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August 2018 Property Investor´s Factfile The Property Investor’s Factfile presents a range of relevant data for buy-to-let investors, traders and developers. Below are some noteworthy observations over the last month: Property Market Trends According to Halifax data, property prices accelerated at their fastest pace in the eight months to July.  Values rose 1.4% month-on-month and 1.3% quarter-on-quarter.  However, managing director Russell Galley called into question the sustainability of this growth, commenting that: “Despite the recent modest improvement in mortgage approvals, the latest survey data for new buyer inquiries and agreed sales suggest that approvals will remain broadly flat until the end of the year;”; Samuel Tombs, chief economist at Pantheon Macroeconomics also pointed out that: “month-to-month changes in Halifax’s measure of house prices always should be taken with a large pinch of salt. Most other indicators of house price growth... [Read More]

Land Registry’s Digital Street

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In an age where technological capabilities are accelerating at an unprecedented pace, it’s often striking how conveyancing still remains in the dark ages. Much comes down to the fragmented and overly bureaucratic processes that govern buying and selling properties. We have one of the oldest land and property registers in the world, and simply expecting a seamless analogue to digital transition wouldn’t be realistic. Yet, in spite of the challenges, the HM Land Registry has been making notable inroads into developing a more cohesive digital platform.  Over the last couple of years, the institution has been collaborating with Conveyancing Association and the Council of Licensed Conveyancers to explore how land registration can be executed more efficiently and cost-effectively. We were fortunate enough to speak with Lauren Tombs, Senior Product Manager to find out more… RS: Could you tell us a little bit about your... [Read More]

Property Investor’s Factfile – July 2018 Commentary

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July 2018 Property Investor´s Factfile The Property Investor’s Factfile presents a range of relevant data for buy-to-let investors, traders and developers. Below are some noteworthy observations over the last month: Property Market Trends According to Halifax data, whilst property values rose for the second consecutive month in June, the market still remains flat in light of a relatively low level of activity. However, managing director Russell Galley commented: “We continue to see very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market. The continuing shortage of properties for sale should also continue to support price growth”; Nationwide data also reported slower annual price growth – 2% in June, a drop of 0.4% relative to the previous month. Chief economist, Robert Gardner commented that over the past 12 months, there has been “little change in... [Read More]

The Future of the Private Rented Sector (PRS)

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Click to the video below to listen to our conversation with David Bond, head of PRS and build to rent at PRSim.  David delved into a range of topics of interest to both private and institutional landlords. It’s worth opening up the 2018 “Tenant Survey”, as David regularly refers to research of over 3,750 tenants across the UK. Some of the areas covered include: The work that PRSim does in the UK’s private rented sector; The key findings of the 2018 “Tenant Survey” (touching on the methodology, sample size and the latest data on the build to rent sector); The private rented sector’s evolution in recent years and how the 2018 survey contrasts with previous years’ research; An exploration of key life-stage groups identified in the survey – namely: ‘younger independents’, ‘flexible professionals’, ‘budgeting families’ and ‘reconciled with renting’; Some of the current stereotypes and... [Read More]