Category Archives: Buy to Let Lending

Modern Funding for Property Investors and Developers

by
Modern Funding for Buy-to-Let Investors and Developers

In a post-credit crunch borrowing environment, property investors and developers have grown accustomed to operating within a more professional marketplace.  Although legitimate creative strategies remain, gone are the days of free-flowing speculative finance. From buy-to-let and bridging through to development funding and accessing finance via the ‘crowd’, this extended post aims to navigate investors through the main options. Please note that we are not mortgage brokers or financial advisors, and strongly suggest seeking suitably qualified professional advice. Buy-to-Let Mortgages Supporting a sector that has grown markedly since the mid-1990s, buy-to-let lending has shifted from being a niche commercial product to taking a significant share of the UK mortgage market. In recent years, however, Prudential Regulation Authority (PRA) stress-testing criteria has imposed stricter standards on a landlord’s ability to access finance.  Formally introduced in 2017, the aim (according to the policy itself)... [Read More]

Birmingham Midshires on Current Buy-to-Let Lending

by
1 Comment
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

by

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]

Property Investor’s Factfile – August 2018 Commentary

by

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]

Property Investor’s Factfile – July 2018 Commentary

by

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]

Property Investor’s Factfile – May 2018 Commentary

by
1 Comment

May 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 The latest Halifax house price index reported that prices dropped by 3.1% in April, the largest since September 2010. Arguing that a strong jobs market will support a certain level of market buoyancy, managing director Russell Galley commented that: “housing supply, as measured by the stock of homes for sale and new instructions, is still very low”; Other data from the Halifax indicated that UK flats had grown in value by an average of 48% over the last five years (from £157,061 in Q1 2013 to £232,135 in Q1 2018).  This was followed by terraced houses (41%), semi-detached houses (39%), bungalows (38%) and detached houses (27%); Sam Tombs... [Read More]

Property Investor’s Factfile – April 2018 Commentary

by
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]

Property Investor’s Factfile – March 2018 Commentary

by

March 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 According to the Halifax, property prices are rising at their slowest rate since 2013 – growing by 1.8% in the three months to February.  Managing director Russell Galley, nonetheless, responded with some relatively positive feedback on the data: “While we expect price growth to remain low, the low mortgage rate environment, combined with an ongoing shortage of properties for sale, should continue to support house prices over the coming months”; Nationwide data reported that house prices fell 0.3% between January and February (after rising... [Read More]

The Best Property Podcasts to Check Out in 2018

by
2 Comments
Property Investor Podcasts 2018

With the number of active listeners across the UK growing exponentially, podcasts have revolutionised how we consume information – whilst bringing a much wider range of voices and ideas to the forefront. Accessible for free to anyone with a smart phone, the growing number of podcasts specifically dedicated to the property industry has been particularly enouraging. Excitingly, as more property podcasters compete for listenership, content quality and production values continue to improve. Below we have highlighted some of the more interesting “on demand” audio resources that are well worth checking out. However, before doing so, please read our disclaimer at the end of this post. The Property Voice Podcast Established since 2015, Richard Brown @PropertyVoiceUK‘s podcast focuses on key areas of the property industry and business / investment lifecycle. Some topic highlights over the last year include discussions of “How... [Read More]

Property Investor’s Factfile – February 2018 Commentary

by
Property Investor Factfile - Buy-to-Let and Property Trading - February 2018

February 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 Halifax reported both a slower level of annual house price growth alongside a drop in the number of new properties coming to market.  Property prices in the 3 months to January 2018 were 2.2% higher than over the same period in 2017 (down from a 2.7% rise reported in December 2017 data).  Prices have been flat on a quarter-on-quarter basis and the January data also reported an overall price drop of 0.6% (following a 0.8% fall in December 2017).  Nonetheless, Russell Galley was reasonably... [Read More]