Property crowdfunding is a good idea — in theory

Published by Financial Times on Friday, 27 February 2015 by Merryn Somerset Webb
Who would want to buy a house in the UK at the moment? Look at the prices and you’d think the answer would be absolutely nobody. In London …

READ this before making a comment, please :)

All comments are held for moderation. This can take a while and your comment may not be posted at all.
Make sure your name and email is correct.
Speech is free, but this website IS moderated! Please, comment the relevant post and stay on topic, link to your website in the field provided. Thank you!

PRS issues further guidance on unfair lettings agent fees in UK

Published by Property Wire on Friday, 27 February 2015
The Property Redress Scheme (PRS) has issued further guidance on unfair fees being charged by letting agents in the UK.

The PRS is one of three consumer redress schemes authorised by the government whose role it is to provide fair and reasonable resolutions to complaints between members of the public and property agents and professionals.

In England and Wales, letting agents are able to charge prospective and existing tenants for services and administration in addition to any rent or deposit paid. Such practices are illegal in Scotland where tenant fees have been outlawed since 1984.

In a report issued by the PRS last month, it was revealed that of the complaints about agent members raised with the scheme, the most common grievance involved unfair or excessive fees being charged to the consumer. This has been reinforced by figures recently issued by Citizens’ Advice, who have hit out at agent’s ‘inexplicable fees’.

In order to aid fee transparency …

Invest in Buy-to-Let Without a Mortgage

Published by Love Money on Monday, 23 February 2015 by John Fitzsimons
Crowdfunding site offers new way to invest in property.

CrowdLords is a new crowdfunding site, offering people the chance to invest in property, whether as a landlord or simply as a hands-off investor.

Let’s take a closer look at how it works.

How it works for landlords

CrowdLords offers landlords the chance to raise funds for a property investment without having to go to a bank and take out a buy-to-let mortgage. Instead you rely on crowdfunding to get you the cash you need.

You identify the property that you want to invest in. This may be a standard purchase, but CrowdLords will also look at things like developments and refurbishments.

You’ll need at least £5,000 …

Rotherham landlords call for judicial review

Published by Landlord Today on Tuesday, 24 February 2015
Landlords in Rotherham have called for a judicial review of local authority plans to introduce a licensing scheme.

The move echoes the recent successful legal action by a landlord against a similar idea in Enfield, north London.

The Rotherham scheme, in line with many others around the country, requires landlords to apply for a five year permit costing £625 for each property they let.

Now the Rotherham Action Group, a landlords’ body, has notified the local authority of a potential legal challenge to the proposal, which comes into effect in May and applies to four specific parts of the local authority’s patch.

It will be a criminal offence …

Buy-to-let valuations grow against the market in January

Published by Mortgage Finance Gazette on Wednesday, 11 February 2015 by Vanya Damyanova
Buy-to-LetBuy-to-let was the sector to stand out in January marking a rise against the general housing market decline, the latest Connells data shows.

While overall property valuations fell by 4 per cent on the month and by 23 per cent on the year, buy-to-let activity was up by 37 per cent on a monthly basis and recorded just a moderate decrease of 4 per cent on the previous year.

“The buy-to-let sector has bounced back after a disappointing performance in December when it had seen one of the biggest monthly falls. It now looks to have regained that lost ground as landlords – now spoilt for choice with a record number of mortgage products to choose from – begin to invest more. Low mortgage rates have also continued, posing even more attractive deals for potential landlords or those expanding portfolios,” John Bagshaw, corporate services director of Connells Survey & Valuation, commented.

While the low rate environment …

UK residential mortgage market becoming too restrictive

Published by Property Wire on Friday, 6 February 2015
Renewed optimism in the UK mortgage industry for growth in 2015 is being overshadowed by the view that the market has become too conservative, it is claimed.

Post financial crisis regulation is hampering the market and brokers are reporting difficulties in meeting customer needs, according to the latest research from the Intermediary Mortgage Lenders Association.

While optimism is returning some 84% of brokers were unable to help at least one customer in the last six months, up from 78% in July 2014, the report points out.

Products for the self-employed …

Over half of UK property owners don’t like their home, research suggests

Published by Property Wire on Wednesday, 28 January 2015
One in 10 home owners in the UK regret buying their home with the biggest reason being that they think they rushed into it and 57% actually dislike their homes, new research has found.

Buying a house is the biggest purchase most people will ever make, and 90% of people don’t regret their purchase. However, that leaves 10% who do, the survey carried out for mortgage and loans provider Ocean Finance has found.

Some 28% said they had rushed into buying, 20% said they don’t like their neighbours, 16% said it is not big enough,12% said it needed more work done than they thought and 6% said they can’t really afford their mortgage. Also 6% said they would make a loss if they sold.

The older you are, the more likely …

Right to buy set to have ‘devastating’ impact on London’s council home stocks

Published by 24dash on Tuesday, 27 January 2015 by Max Salsbury
londonThe amount of homes sold off under the controversial right to buy scheme in London is set to far outstrip the number of new council homes built in the city, a new report has revealed.

According to London Assembly Labour housing spokesperson Tom Copley’s study, the capital’s councils predict they will lose 1.5 council homes for every 1 they build under the government’s ‘reinvigorated’ RTB over the coming decade.

Copley said that his ‘Out of Stock’ report found a “devastating scale of reduction in council housing stock” and called for local authorities to be given new powers to properly invest in new social housing.

Drawing on new data …

Shocking statistics about UK property market!

Published by Property Forum on Saturday, 24 January 2015 by Mark Benson
While many investors look towards the UK property market as something of a “safe haven” it seems that investors are pricing first-time buyers out of the market. A report by the homeless charity Shelter has cast a very dark shadow across the UK property market and will concern many looking to climb onto the property ladder for the first time. So, what can first-time buyers in the UK expect if they are in a position to climb onto the property ladder?

Could you even afford a deposit?

The Shelter charity report was based upon a 20% deposit for a property which is standard across the UK at this moment in time. The report also took in an array of different situations regarding single individuals, couples and couples with children to give a broad outlook. So, what does this report show?

Perhaps the most damaging statistic, …

Bank of England dissenters drop call for higher rates after inflation slump

Published by Reuters on Wednesday, 21 January 2015 by David Milliken and Li-mei Hoang
(Reuters) – Two Bank of England policymakers have ditched their long-standing calls for an end to record-low interest rates in the face of tumbling inflation, prompting economists to again push back forecasts of when the BoE will start to tighten policy.

A slump in oil prices caused British inflation to drop far more than expected to a 14-year low of 0.5 percent in December, far below the BoE’s 2 percent target and a level that brings outright falls in prices into prospect.

Minutes of the Jan. 7-8 Monetary Policy Committee meeting published on Wednesday showed unanimity for the first time since July, after Martin Weale and Ian McCafferty said raising rates now might cause below-target inflation to become entrenched.

British government bond prices …