Series of measures confirm upward trend for UK house prices

Current or prospective landlords considering expanding their portfolios or entering the private rented sector for the first time will always have reason to take an interest in the latest UK house prices. Many presently holding a landlord rent guarantee policy with Advanced Rent (http://www.advancedrent.co.uk) will be intrigued to read that according to a series of measures from various sources, UK house prices remain firmly on the up.

Halifax, for example, one of the biggest mortgage lenders in the country, has said that the three months to November saw a 7.7 per cent rise in UK residential property prices compared to the year before, according to its most recent house price index. Not for six years has there been such a big annual price increase, with the last month alone seeing a 1.1 per cent rise, bringing the average price of a UK home to £174,910. Such rises could be attributed to a combination of increased demand and a shortage of homes for buyers to choose from, said housing economist Martin Ellis.

This latest trend for potential rent guarantee scheme policyholders was also in evidence in the most recent monthly property market survey from the Royal Institution of Chartered Surveyors (RICS), which found that during November, expectations for the future growth of UK house prices hit a more than 14 year high. Echoing the words of Mr Ellis, RICS said that there had been another fall in the number of homes coming onto the market, meaning insufficient supply to keep pace with rapidly increasing buyer demand. 59 per cent more chartered surveyors across the UK predicted a continuing upward movement in house prices rather than a downward trend over the coming three months, the highest reading since September 1999.

In other news that will be deeply unsurprising to holders of a landlords rent insurance policy in the English capital, another report has said that London property prices will continue outperforming the rest of the UK's next year, albeit with a more stabilised rate of growth. That was the verdict of estate agent Marsh & Parsons, which predicted a 5 per cent to 7 per cent increase in the city's house prices. Meanwhile, a longer-term view for the whole country was given by a revision of the Office for Budgetary Responsibility's (OBR) forecast for the next five years of house price growth, from 15 per cent to 27 per cent.

The independent fiscal body tipped 2013/14 to see rises of 3.7 per cent, followed by 5.8 per cent in 2014/15 and 7 per cent in 2015/16. The figures for 2016/17, 2017/18 and 2018/19 were 4.2 per cent, 3.7 per cent and 3.8 per cent respectively. Such sustained rises are expected to keep a greater proportion of the UK population renting for longer. This, in turn, suggests greater possibilities for those taking advantage of a rent factoring product from Advanced Rent (http://www.advancedrent.co.uk) to put them in a more secure position to expand their portfolio.

Editor’s Note: Advanced Rent (http://www.advancedrent.co.uk) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

Landlords increasingly adding to their property portfolios

The buy-to-let market may be becoming more lucrative according to recent statistics, but does this translate into landlord rent guarantee policyholders actually investing to expand their property portfolios? The answer is yes, Advanced Rent (http://www.advancedrent.co.uk) clients may be interested to read, according to the Mortgages for Business Complex Buy to Let Index, which found a number of landlords securing finance to purchase property during the third quarter of 2013, making the most of increasingly advantageous mortgage lending conditions. 

Every section of the buy-to-let mortgage market saw an increase in new purchases for the third quarter of the year, with the exception of semi-commercial investments. Although there were slightly lower figures for remortgaging compared to the previous quarter, it remained a dominant part of total lending for the other three buy-to-let property types. These are findings that will encourage many of those considering a landlord rent insurance policy. 62 per cent of the market was accounted for by standard buy-to-let, or Vanilla lending, a 3 per cent decline from the second quarter.

As a proportion of loans, the most remortgaging in the third quarter was recorded for Houses in Multiple Occupation (HMOs), at 77 per cent, compared to the second quarter's 84 per cent figure. Meanwhile, 70 per cent of multi-unit Freehold Block (MUFB) loans were refinancing, a fall from the 88 per cent of the previous quarter. Prospective or current holders of a landlords rent insurance policy will be encouraged to read that for the second consecutive quarter, there was an improved choice of different buy-to-let products. The last three months saw 484 mortgage products on offer, 19 more than the second quarter figure and a 4 per cent boost.

Also of interest to many of those considering a landlord finance product like Rent Guaranteed will be the continued stability in loan-to-value ratios recorded by the Index, with quarter three's 68 per cent figure matching that of quarter two. However, for the vast majority of property types, there was an increase in gross yields between the second and third quarters. Mortgages for Business managing director, David Whittaker, saluted the "sustained improvement in the choice of different mortgage products for landlords", adding that cheaper deals should also result from such heightened competition.    

Whittaker said that landlords were being encouraged to increase their activity by continued low rates and high yields, with plenty of confidence exhibited by both lenders and investors. It's hardly surprising, then, that the sector is continuing to grow, and there is a lot of evidence of that, too, in demand for the highly rated finance products of Advanced Rent (http://www.advancedrent.co.uk), Rent In Advance and Rent Guaranteed. With these rent indemnity products, landlords can have fewer worries about expanding their portfolios to take advantage of the improved market.

Editor’s Note: Advanced Rent (http://www.advancedrent.co.uk) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

Severe rental arrears at lowest level for two years

Amid so many signs of an improving economy and with it, increased financial security for landlords and tenants alike, landlord rent guarantee policyholders have even more reason for cheer with the news of a sharp fall in the number of tenants with severe rental arrears, to the lowest level in two years. That is the headline finding of the latest Tenant Arrears Tracker of LSL Property Services, which might just embolden a few Advanced Rent (http://www.advancedrent.co.uk) clients into investing further in their portfolio.

The third quarter of 2013 saw a 25 per cent decline in the number of tenants behind on their rent by a period exceeding two months. It means that there are now just 69,000 tenants in severe arrears, which is 23,000 lower than the figure recorded in the second quarter. It's the lowest level of severe rental arrears that the Tenant Arrears Tracker has recorded since the third quarter of 2011, which is obviously very good news for rent indemnity policyholders.

Paul Jardine, Templeton LPA director and receiver, described the figure as "an important landmark", adding that "Tenants in these most severe situations could face eviction whereas the majority of arrears cases are resolved much more easily." He said that there was "a qualitative difference which makes this particular improvement so important. Such a dramatic fall in the number of people potentially losing their homes is not just an excellent signal for the private rented sector but for the entire UK economy."

All other relevant figures point to an economic environment that is increasingly conducive to landlord rent insurance policyholders choosing to add to their portfolios. Tenants in severe arrears now account for only 1.7 per cent of all tenancies in England and Wales, compared to the previous quarter's 2.4 per cent. The improvement is even more dramatic when judged on an annual basis, with 34 per cent fewer tenants being in severe arrears in the third quarter of this year compared to the same quarter in 2012.

But there has also been a more general improvement in tenant finances for landlords involved in a rent guarantee scheme to savour,  with LSL's most recent Buy-to-let Index having also revealed a fall in overall tenant arrears in August, in which 7.8 per cent of all rent was late or unpaid - compared to the previous month's 8.2 per cent. Even the number of tenants facing eviction through court order has plummeted, with the 26,759 tenants that faced eviction notices in 2013's second quarter representing a 9.7 per cent improvement on the previous quarter's figure.

With our acclaimed Rent In Advance and Rent Guaranteed products, here at Advanced Rent (http://www.advancedrent.co.uk), we can further assure you of financial security as a landlord, an assurance that goes hand in hand with the real improvements in the state of the buy-to-let sector over the last year or so. Contact us now to find out more.

Editor’s Note: Advanced Rent (http://www.advancedrent.co.uk) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

Severe rental arrears at lowest level for two years

Amid so many signs of an improving economy and with it, increased financial security for landlords and tenants alike, landlord rent guarantee policyholders have even more reason for cheer with the news of a sharp fall in the number of tenants with severe rental arrears, to the lowest level in two years. That is the headline finding of the latest Tenant Arrears Tracker of LSL Property Services, which might just embolden a few Advanced Rent (http://www.advancedrent.co.uk) clients into investing further in their portfolio.

The third quarter of 2013 saw a 25 per cent decline in the number of tenants behind on their rent by a period exceeding two months. It means that there are now just 69,000 tenants in severe arrears, which is 23,000 lower than the figure recorded in the second quarter. It's the lowest level of severe rental arrears that the Tenant Arrears Tracker has recorded since the third quarter of 2011, which is obviously very good news for rent indemnity policyholders.

Paul Jardine, Templeton LPA director and receiver, described the figure as "an important landmark", adding that "Tenants in these most severe situations could face eviction whereas the majority of arrears cases are resolved much more easily." He said that there was "a qualitative difference which makes this particular improvement so important. Such a dramatic fall in the number of people potentially losing their homes is not just an excellent signal for the private rented sector but for the entire UK economy."

All other relevant figures point to an economic environment that is increasingly conducive to landlord rent insurance policyholders choosing to add to their portfolios. Tenants in severe arrears now account for only 1.7 per cent of all tenancies in England and Wales, compared to the previous quarter's 2.4 per cent. The improvement is even more dramatic when judged on an annual basis, with 34 per cent fewer tenants being in severe arrears in the third quarter of this year compared to the same quarter in 2012.

But there has also been a more general improvement in tenant finances for landlords involved in a rent guarantee scheme to savour,  with LSL's most recent Buy-to-let Index having also revealed a fall in overall tenant arrears in August, in which 7.8 per cent of all rent was late or unpaid - compared to the previous month's 8.2 per cent. Even the number of tenants facing eviction through court order has plummeted, with the 26,759 tenants that faced eviction notices in 2013's second quarter representing a 9.7 per cent improvement on the previous quarter's figure.

With our acclaimed Rent In Advance and Rent Guaranteed products, here at Advanced Rent (http://www.advancedrent.co.uk), we can further assure you of financial security as a landlord, an assurance that goes hand in hand with the real improvements in the state of the buy-to-let sector over the last year or so. Contact us now to find out more.

Editor’s Note: Advanced Rent (http://www.advancedrent.co.uk) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

Bank confirms 29 per cent yearly rise in buy-to-let lending

Landlord rent guarantee policyholders will be pleased to read yet more evidence of a burgeoning buy-to-let market, with the Bank of England releasing data showing a significant rise over the last year in mortgage lending to landlords, Advanced Rent (http://www.advancedrent.co.uk) can report. The increase in lending was, in fact, on a par with that to first-time buyers, with the second quarter of the year seeing total lending to landlords amounting to £5bn, a 29 per cent rise from the £3.9bn recorded a year earlier.

Such a figure compares to an annual rise in first-time borrower lending of about 30 per cent, from £6.1bn to £8bn. The Bank declared the lending figures from April to June to have broken records across "a number of metrics", as overall lending over the quarter rose by 23 per cent compared to the previous quarter - a rate of growth described by the Bank as "the highest in any year since the series began in 2007." But as encouraging news as a more active property market is to those contemplating a rent indemnity product, they will doubtless have greatest interest in the landlord lending statistics - as well as a continued general decline in interest rates.

Although a fall was recorded for all rates, fixed rate mortgages saw the steepest decline. Four in five new mortgages are presently fixed rate deals, as borrowers seek protection against future rises in rates. Average rates on all new loans taken dropped from the first quarter's 3.65 per cent to 3.47 per cent with the arrival of the summer. There was a slight decrease in the overall average interest rate across all mortgages, from 3.47 per cent to 3.43 per cent - all positive reading for landlords considering a product like Advanced Rent's Rent Guaranteed to further cement their financial security.

Indeed, there was further good news for landlord rent insurance policyholders lately from the Council of Mortgage Lenders, which released figures showing an 11 per cent monthly rise in buy-to-let lending in July. £2bn was advanced to landlords by lenders in July, compared to the £1.8bn advanced in June. It meant that the number of buy-to-let loans reached 15,200 during the month. There was a 7 per cent rise over the month in lending for buy-to-let house purchases, meaning that the total for loans advanced for purchases was now 7,600. The £900m value of these loans represented a 13 per cent improvement on June.

However, for all of the positivity in these latest figures, there was also a warning for rent guarantee scheme policyholders from Shawbrook Bank's managing director of commercial mortgages, Stephen Johnson, who urged those looking to buy properties to take a long-term approach. He said that investors required a portfolio that would continue to make sense in a more normalised interest rate environment, stating that their hard-earned equity could be put at risk by over-gearing. Ask Advanced Rent (http://www.advancedrent.co.uk) about how our products can help to minimise your financial worries as a landlord.

Editor’s Note: Advanced Rent (http://www.advancedrent.co.uk) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.