Government says 36,000 Right To Buy sales in three years

The government claims that over 36,000 new home owners have been created through Right to Buy since 2012.

Figures released by the Department of Communities and Local Government show that - by contrast - 3,357 new home starts and acquisitions have been made over the same period. That’s under 10 per cent of the number sold. 

“We want to help anyone who works hard and aspires to own their own home to turn their dream into a reality. Right to Buy is central to that vision and has already created more than 36,000 homeowners, helping generate over £2.8 billion for more affordable homes” says housing minister Brandon Lewis. 

He describes the number of starts and acquisitions - which in theory will replace those sold - as ”making good on our promise to replace council homes”.

Since Right to Buy was revamped by the Conservatives and Liberal Democrats in 2012, some £860m in sales receipts have been re-invested in building directly - this has indirectly leveraged a further £2 billion of investment, making the £2.8 billion total. 

Lewis says council house building startsare now at a 23 year high and almost twice as many council homes have been built in the last four years than from 1997 to 2009. 

Since 2010, nearly 200,000 people have bought or reserved a new home through government-backed schemes, including Right to Buy.

In the three months to March 2015, some 3,321 people bought their homes under Right to Buy. Local authorities received approximately £261 million from Right to Buy sales, seven per cent higher than the £243 million in the same quarter of 2013 to 2014. Total sales through Right to Buy for 2014 to 2015 were 12,304 compared to 11,261 in 2013 to 2014.

Tenants can benefit from a discount of up to £77,900 outside of London and £103,900 in the capital – they need to have been in council housing for three years before being eligible for the scheme.

In total, more than 260,000 new affordable homes have been delivered in England since 2010.

Student Investment Opportunity

The Exeter student market continues to remain buoyant and we are expecting an excellent 2015/16 year for student lets.

There is little wonder why student investment properties continue to receive high demand and are quickly sold when listed on the market.

Martin & Co Exeter have recently listed this superb five bedroom property, with student tenants secured for September 2015, which provides and excellent annual return.  The property currently requires renovation, which the present owner is carrying out prior to the sale.

It is my thought that this property will not remain on the market for long so for more information, please call me on 01392 254488, regards, Jon.

http://www.martinco.com/property/for-sale/199735

What to look for when purchasing a buy-to-let property?

Purchasing a buy-to-let can be daunting, especially if it is your first time.  I have many first time landlords come to see me for advice and I find the initial questions they usually ask me are “where can I look for a property” and “where in Exeter should I buy”.

Martin & Co and the majority of other Exeter estate agents market their properties first on OnTheMarket.com, so setting up a property alert on this site will ensure you receive properties as soon as they are available.

When considering where to buy, first ask why people may be moving in the first place; are they relocating for work, are their children now going to school or are they upsizing for example.  Once you have considered why people may move, you can start to think about where they will want to move to, for example if they will be working at the hospital, Wonford would be convenient or if their children go to school in Clyst Heath, Kings Heath may be of interest.  Using this thought process you can close in on areas that can support the type of tenant you are looking for. 

It is also worth considering if the property is near good transport links, is there furniture and is it fire safe, and does it currently hold all the necessary certificates such as a landlord gas safety certificate, electrical certificate and an HMO licence if applicable.

If you can purchase a property with a tenant already in situ you will benefit from receiving rent from day one.

If you are considering purchasing a buy-to-let property please feel free to call me on 01392 254488 to discuss the tenanted properties we currently have for sale or visit our office on South Street and we can discuss your personal requirements.

Landlords warned to remain vigilant for cannabis production

Landlords and agents are being warned to remain vigilant as new figures reveal the extent of cannabis cultivation in the UK. 

Direct Line for Business has analysed figures from the Office for National Statistics (ONS) which show that the police seized over 400,000 plants in the UK last year.  

The most seizures were made by the Metropolitan police (59,002), followed by police in Wiltshire, the West Midlands, South Yorkshire, Dyfed-Powys and Nottinghamshire  

Direct Line says that the number of seizures dropped by 10 per cent between 2013 and 2014 but that a third of police forces have reported an increase in the number of cannabis plants identified.
                                   
The insurer has reiterated a warning to landlords that they should vet their tenants carefully as cannabis farms can cause significant damage to their properties.

It says that damage caused by cannabis production can include damaged ceilings and wells, severe water damage and fires. 

In addition to the financial costs, landlords are also warned that they could face legal action if it is proved that they were aware of these criminal activities or have benefited from them financially. 

“Landlords should remain vigilant and investigate unusual tenant behaviour. In addition to carrying out rigorous tenant checks and regular inspections, landlords should be aware of odd smells, sudden fluctuations in energy bills and evidence that the electrical wires have been tampered with,” says Jane Guaschi, Business Manager at Direct Line for Business. 

"If as a landlord you suspect your property is being used as a cannabis farm, contact your local police straight away. Do not confront your tenants yourself,” she adds.

Written by Letting Agent Today

What does the national average of £179,817 buy you across the UK?

Data released by the Land Registry this week revealed that the average property price in the UK has risen, reaching £179,817 in April.

Let’s take a look at what you can get for your money across the UK…

Renfrewshire, Scotland – offers over £170,000

In Renfrew, 6 miles outside Glasgow, you could buy a 3 bed bungalow for just less than the national average. The property has 3 large bedrooms all with built in wardrobes, lounge, dining room, fitted kitchen, large family bathroom, and an extensive well maintained garden.

You can view the full property details here.

Wanstead, London – £175,000

This studio apartment in Wanstead, East London is ideal for first time buyers or buy-to-let investors. The property is located just a 1 minute walk from Wanstead Underground tube station and Wanstead´s popular High Street, and benefits from storage and a recently refurbished bathroom.

You can view the full property details here.

Biddulph, Staffordshire – £179,000

The largest property in our selection is this is 4 bedroom period home in Biddulph. The property benefits from a multi fuel stove, two bathrooms, beamed ceiling and a stained glass window in the porch. It also has off road parking with a carport and a rear walled garden.

You can view the full property details here.

Truro, Cornwall – £179,950

Just slightly over the national average and the furthest South in our selection is this 2 bedroom terraced house in Truro. The property includes two bedrooms with fitted wardrobes, a modern open plan kitchen/dining room, rear garden and allocated parking.

You can view the full property details here.

If you would like to see more properties across the UK you can visit our website or contact your local Martin & Co office.

Maximise your buy-to-let profits by paying less tax

The government recognises letting your property as being a business transaction. As such, certain elements of it are tax-deductible as ‘allowable expenses’.

Here is a brief guide to what you may, or may not, claim back to increase your profit.

Mortgage Fees Broker and arrangement fees are tax deductible, claimable in the year the mortgage was arranged. Any incidental costs associated with taking loans are claimable as expenses.

Mortgage Interest All interest paid on your mortgage can be used to offset your tax bill. In the case of interest-only mortgages, your whole monthly repayment is tax-deductible. In the case that your income roughly equates to your repayment, you’ll be exempt from income tax on the property. (Some landlords keep their property mortgaged even when they can afford to pay it off, just to benefit from this tax break)

Letting Agent Fees If an agent finds tenants for, or manages your property, you’ll probably pay between 10-15% of monthly rental income in fees. These are all claimable.

Securing Tenants If you rent your property privately, you can claim on all the following: advertising for tenants, purchasing a tenancy agreement, credit checking, referencing, deposit protection, and professional inventory costs.

Building and Contents Insurance Premiums These can protect the building, loss of rent, and your liability as a landlord, plus you can add extra cover, too.

Maintenance and Repairs Most of these are tax deductible, but cannot be claimed if the house is not fit for purpose. For example, fixing white goods is claimable – building a conservatory is not!

Furniture If the property is furnished you can claim back ‘wear and tear’ allowance (roughly 10% annual rent) or the exact cost of replacing individual items. You cannot claim the cost of furnishing the property in the first place.

Ground rent and Service Leaseholders will usually pay ground rent to the freeholder, and service charges are common. They include maintenance, heating and lighting, but can extend to security. You can claim back on any on-site services such as gardening and electrical costs, too.

Council Tax and Utility Bills If you pay any council tax or utility bills that a tenant would usually pay, you can claim the whole cost. You can also claim these costs during void periods.

Others Minor costs such as phone calls, stationery and cost of travel between properties (for purposes of the rental business) are claimable expenses.

With all this in mind it pays to keep all your receipts and to keep an eye out on all the costs you’re incurring as part of your property management

For further information on how to effectively run your let as a business, and to find out how to be as professional as possible, please contact us today - exetersales@martinco.com.