<![CDATA[News/Blog for Earnest Knight]]> https://www.earnestknight.com/7ways2.html Mon, 25 Sep 2017 00:00:00 GMT <![CDATA[Top 5 reasons to look at new property investment strategies]]> https://www.earnestknight.com/7ways2.html/Top_5_reasons_to_look_at_new_property_investment_strategies/Blog85 https://www.earnestknight.com/7ways2.html/Top_5_reasons_to_look_at_new_property_investment_strategies/Blog85 Top 5 reasons to look at new property investment strategies The media has been on fire in the past year reporting a variety of major changes to the private rental sector. The following 5 alone are Top 5 reasons to look at new property investment strategies

 

The media has been on fire in the past year reporting a variety of major changes to the private rental sector.

The following 5 alone are cause enough to re examine your own strategy to ensure future profits.

 

 

EPC

 

From 2018 all rented out homes will need to have a minimum grade of E before being let. This could mean a bill for costly energy efficiency improvements is pending shortly.

 

Tax

 

The increase of stamp duty by 3% is a bitter pill to swallow.

 

More Tax!

 

The income tax changes that remove full mortgage interest tax relief against rent are mid phase in and reducing landlords profits.

 

Interest rates

 

The bank of England appears to be preparing for rate rises. The effect on London Landlords in particular could prove disastrous.

 

Mortgages

 

Regulatory changes that make it tougher to dish out mortgages will impede portfolio growth as lenders look at your whole portfolio and force landlord with 4 or more properties to use portfolio finance from a single lender.

 

Lenders from later this week will be looking at you and your entire portfolio before deciding what they will lend taking into account but not limited to:

 

    Your property investment experience

    The total amount of your mortgage borrowing across all properties

    Your assets and liabilities, including tax liability

    The merits of any new lending in context of your existing buy to let portfolio together with your business plan

    Historical and future expected cash flow from your portfolio

    Your income both from property and elsewhere

 

It is not all doom and gloom

 

For non institutional or large portfolio landlords simple BTL still provides returns that are beating all other asset classes. There are also emerging opportunities to continue growing your portfolio for the bigger portfolio owners in a way that banks believe to be safe and profitable so they are happy to continue lending.

Fo new or smaller portfolio owners there is still an abundance of profit to be made too there are simply changes and an evolution of an industry to accommodate while building your portfolio. This is also inspiring new investment strategies and products which look to make investors like you great returns and often with simplicity in mind.

 

Call 0208 6109 472 to discuss how you can buy more, to profit further, while also creating a less time consuming and more diversified portfolio.

 



An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                  0208 6109 472

FREEPHONE:     0800 3689 317

EMAIL:                enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 24 Jul 2017 00:00:00 GMT <![CDATA[Always check the statistics! : Is property still better than a pension?]]> https://www.earnestknight.com/7ways2.html/Always_check_the_statistics__Is_property_still_better_than_a_pension/Blog84 https://www.earnestknight.com/7ways2.html/Always_check_the_statistics__Is_property_still_better_than_a_pension/Blog84 We read the following article and upon reflection we see it as particularly floored due to small statistical errors. What do you think? Is property still a better bet than a pension? Andy Haldan We read the following article and upon reflection we see it as particularly floored due to small statistical errors.

 

What do you think?


Is property still a better bet than a pension?

Andy Haldane, the Bank of England’s chief economist, last year confirmed what many of us already knew – investing in property is a better investment for retirement than paying in to a pension.

When answering a question about preparing for retirement, Haldane told the Sunday Times: “It ought to be pension but it’s almost certainly property.”

Haldane, who owns two homes - one in Surrey and a holiday home on the Kent coast - pointed to the fact that there is a chronic housing shortage across the country which continues to place upward pressure on house prices.

“As long as we continue not to build anything like as many houses in this country as we need to ... we will see what we’ve had for the better part of a generation, which is house prices relentlessly heading north.”

Investment returns from residential property - rental income and capital growth – has long trumped all other mainstream investments, including pensions.

But a fresh report published by ThisisMoney suggests that the tide may be turning and that pensions may be a better long-term bet than property after the buy-to-let market was hit by the loss of tax relief as well as wear and tear allowance.

Investing in a pension could now double the returns of bricks and mortars over 20 years as a direct result of the unfavourable tax changes affecting buy-to-let landlords, according to research by online investment company IG.

The study found that investing £200,000 into a buy-to-let property could see your money grow by 237% over two decades once capital gains tax is taken into account.

But a 40% tax payer could see potential returns as high as 435% if they put the £59,700 sum needed for a deposit on that property into a tax efficient self-invested personal pension instead.

The calculations are based on the buy-to-let investor taking out a 75% loan-to-value mortgage and stumping up an initial £59,700 for the 25% deposit and additional purchase costs, including stamp duty, while also factoring in average house price growth of 4.5% a year over the two decades, plus a rental yield of 3.5%. 

The total return after costs factored in for the investment portfolio was lower, with an assumption that the pension pot would generate an annual growth rate of 6% after fees over two decades.

Reflecting on the research, taking into account the phasing out of mortgage interest relief, the portfolio manager at IG, Oliver Smith, said: “There is a stark contrast in the tax treatment of a property versus a pension, with pensions winning out by a clear mile. The recent tax changes on buy-to-let properties will make a huge impact on the potential for long-term returns.

“While these changes are only being fully introduced in 2020, a chill wind is already sweeping through the buy-to-let industry.

“Savers need to remember that every pound spent on purchasing a buy-to-let property is paid out of net income and the tax changes mean that if financing costs rise, landlords will have to shoulder higher costs and consequently receive a lower net of tax income on their properties.”

A separate report from the National Landlord Association (NLA) last week said that the plight of landlords suffering from recent fiscal changes could create the ‘next pension crisis’ as many individuals are becoming over-reliant on property to fund their retirement years.

Richard Lambert, CEO at the NLA, commented: “As a consequence of government policy over recent decades almost two million people are reliant on their property to fund their later years, but the changing tax regime will substantially reduce the income they receive from these investments and so compromise the retirement plans of a significant number of hard-working people.

“Around a quarter [27%] of UK landlords are already retired, and 37 per cent are aged 55 or over, so there is a pressing need to tackle these issues without delay”.

Source: https://www.landlordtoday.co.uk/breaking-news/2017/7/is-property-still-a-better-bet-than-a-pension

 


 

In short we agree that Andy Haldane, the Bank of England’s chief economist, appears to have a good grasp of what makes optimum returns, property.

 

Immediately questions arise from the basic statistics in this article e.g.

 

What is the basis for the 6% p.a. average long term pension growth? Acknowledging last years better performance while still reflecting on that growth being half of other years losses in the past decade the typical 60:40 equities and bonds pension portfolio has historically achieved 4% after inflation and many commentators forecast that future returns will be lower than in the past.

 

Why has the long term average UK capital growth been dropped from 8% to 4.5%?

(Nationwide’s statistics recorded since 1952 show 8% p.a.)

 

Why has the UK average rental yield been dropped from 5%+ to 3.5%?

Countrywide new letting figures and Nationwide house price data show an average UK BTL yield to be 5.3%.

Savills have quoted conservative net rental yields: ‘allowing for costs and void periods, the average net yield for typical private landlords comes in at around 4.1%.’

 

Would a property professional like you look for these low returns in a portfolio addition? Or significantly better via Earnest Knight?

We think the publisher is irresponsibly massaging statistics to sell pensions here. What do you think?

 

A balanced property portfolio addition would look to provide 5%+ rental yield and of course, as Nationwide long term growth statistics show 8% p.a., well in excess of the conservative 4.5% growth figure. The combined BTL property returns total well in excess of the diminishing 4% or even the enhanced 6% pensions return quoted in the article. I can hear the accountants mumbling something about tax, which is very dependent on your own personal circumstances and adequate tax planning, so to give a rough indication lets lok at an overly simplified calculation; 8% p.a. growth + 5% p.a. yield = 13% (less 40% or 5.2%) = 7.8%. I've spoken to many investors that after adequate tax advice from a qualified specialist utilize allowances fully, spousal transfers, family trusts, SPV's and LTD companies to name just a few tax efficient strategies to become as profitable as possible, raising their returns over all.

 

The part that we find most interesting is at no point does anyone mention in the article the potentially devastating effect of interest rates, which have been at an all time low for long enough now for newer investors to see them as normal. Maybe this is due to the changes in lenders criteria and the exceptional long term fixed rate products available at present. Even substantial lenders, like Barclays, are offering under 3.5% interest rates on a 75% LTV BTL mortgage fixed for 10 years. Some investors may have decided already that leveraging is not as safe as it once was, especially those with lower yielding London based portfolios. There are alternative ways to profit from property that do not involve the lending and interest rate risks or the costs that eat into your profits from large financial institutions or funds.

 

Equally for those who have sizable portfolios and have hit lending limits their strategy has to change. There is good news for these investors, there are new opportunities arising from alternative strategies based around your well known and trusted to produce BTL. For many reaching lending limits adding value, HMO conversions and development have become their optimum choice. Although for some investors the time involved and risk factors of these property investment projects do not match their investment profile or the time they have available. This has created a significant demand for investment products that beat inflation and bank returns with the security of an asset base and without the need for traditional lending or the hands on approach that adding value projects entail.

 

If you are looking for this type of investment and have upwards of £1,000 to invest on a medium to long term basis call 0208 6109 472 or email enquiries@earnestknight.com for further details.

 


An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                  0208 6109 472

FREEPHONE:     0800 3689 317

EMAIL:                enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Tue, 30 May 2017 00:00:00 GMT <![CDATA[Barclays Research: Economic Uncertanty = House Price Rises]]> https://www.earnestknight.com/7ways2.html/Barclays_Research_Economic_Uncertanty__House_Price_Rises/Blog83 https://www.earnestknight.com/7ways2.html/Barclays_Research_Economic_Uncertanty__House_Price_Rises/Blog83 UK house prices have been predicted to rise in the next five years, to bring the average property value to almost 300,000, according to new research from Barclays. Research shows property hotspots em UK house prices have been predicted to rise in the next five years, to bring the average property value to almost £300,000, according to new research from Barclays.

Research shows property hotspots emerging in the North with employment opportunities and business start-up rates helping to close the gap on property hubs of London and the South

Buy-to-let investments and high net worth millennial investors are set to lead the way in fueling the property market.

 

The Barclays UK Property Predictor, provides a three-to-five year forecast of investment hotspots in the residential property market. Barclays have revealed the areas across the UK where their research shows house prices and rental incomes are expected to rise. The research uses factors including rental trends, employment levels and commuter behavior as well as current house prices to create an index of property hotspots. The research also surveyed high net worth investors from across the UK, to reveal where and why they plan to purchase property in the future.

Amongst specific hotspots likely to see much larger than average increases in this period, identified by Barclays, are Richmond upon Thames (forecast to rise 39.1 per cent), St Albans (up 38.8 per cent) and Camden in London (increasing 33.9 per cent). 

“It’s encouraging to see that property is still viewed as an important part of the investment portfolio with high net worth investors typically owning three properties and over a quarter planning to buy property because they believe that it offers long-term investment security” explains Dena Brumpton, chief executive of Barclays’ wealth and investments division. 

“There is also increasing confidence among property investors, as many are taking a long-term view when it comes to putting money into property. It’s also interesting to see from our research how investment prospects are emerging outside of the established property heartland of London and the South of England, with economic growth and employment opportunity fueling growth in hotspots across the UK.”

 

Northern hotspots emerge

Over the next five years, high employment rates, growth in private housing market levels and an increase in rates of average earnings will contribute to rising property prices across the UK. The South is expected to see the largest annual property price increase over this period, however property investors are looking north of the property hubs of London and the South East for good value for money and income stability. Over a third (38%) of high net worth investors (HNWI) looking to purchase property in northern regions think that property prices are going to rise there, with over a quarter (27%) who plan to purchase citing strong rental income as a reason to invest there.

The Midlands has the fourth highest expected annual price increase in the UK at 1.22%, behind London, the East of England and the South East. Warwick in the West Midlands has emerged as one of the top 20 areas of highest growth, with an expected annual increase of 5.31%, driven by higher-than-average earning rates and the highest level of business start-up rates in the region. Scotland has the fifth highest expected annual price increase at 1.15%. East Renfrewshire makes the top 20 areas of highest growth with an expected annual increase of 4.37%, with its large proportion of highly qualified residents expected to drive up prices.

 

Millennials are reaping the rewards of property investment

Barclays research shows that younger HNWIs will be a key driver in the growth of the UK property market over the next three-to-five years. The millennial investors surveyed have 41% of their investment portfolio tied up in property, compared to 23% amongst those aged over 55.  They are also more bullish in their approach to investing in bricks and mortar with 75% intending to increase the percentage of their portfolio in property over the next three-to-five years, compared to just 10% of over 55s. This is however typical when you consider the lending age constraints of the over 55's limiting leverage in traditional BTL investment.

Millennial investors are also more likely to own more than one property, compared to over 55s, and are reaping the financial rewards of multiple property ownership with almost half (48%) of their annual income generated from rent. Those under 55 (18-54 year olds) who are planning to buy new property are more likely to take advantage of a buy-to-let mortgage product to fund future property purchases, 23% compared to just 7% of over 55s. There will be a new method of helping the over 55's launched soon to alleviate the lending blocks so call Earnest Knight on 0208 6109 472 and ask if you are restricted by finance but still want to make great property returns

 

Buy-to-let investment on the rise

Investors are leaning on buy-to-let to fuel their property portfolios, despite the recent changes to buy-to-let tax. Higher value investors are seeking to maximise returns through property purchases, with nearly two-thirds (65%) of those looking to buy doing so for rental income. Sixty-two per cent of those with rental properties expect the proportion of the income they receive from rent to increase over the next three-to-five years, with half predicting it will rise by up to 20%.

barclays table


An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                  0208 6109 472

FREEPHONE:       0800 3689 317

EMAIL:                 enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Thu, 01 Dec 2016 00:00:00 GMT <![CDATA[BTL mortgage criteria changes ahead]]> https://www.earnestknight.com/7ways2.html/BTL_mortgage_criteria_changes_ahead/Blog81 https://www.earnestknight.com/7ways2.html/BTL_mortgage_criteria_changes_ahead/Blog81 Many landlords currently choose to take out two-year discounted mortgage deals because they are cheaper than longer-term loans. The Bank of Englands Financial Policy Committee plans to make it hard best-mortgage-deals

Many landlords currently choose to take out two-year discounted mortgage deals because they are cheaper than longer-term loans.

The Bank of England’s Financial Policy Committee plans to make it harder for some landlords to secure short-term mortgages after being granted greater powers over the buy-to-let market by the government.

Regulators have expressed concern about aggressive buy-to-let lending practices at some banks, mainly because they fear that a number of property investors are taking on too much debt and will not be able to cope when interest rates increase. Too many have got used to the almost nonexistent base rate that has historically averaged over 3% and are ill prepared should they return to the average.

Regulators want to see more landlords sign up to longer term five year rates which tend to be higher, meaning that borrowers could have to pay thousands of pounds more over the life of the loan. e.g. based on a £150,000 loan at the best two-year rate of 1.59% (£199 a month) compared with borrowing the same sum at the best five-year rate of 2.49% (£311 a month) over five years, the additional £112 a month would mean the borrower paying £6,720 more.

Is £6,700 scandalous? Should investors stop investing? Perspective is required to answer these questions which the following illustration should add.

Why do landlords invest in property? For the security of the asset and the handsome returns that come from rental income and the capital appreciation of the asset.

Based on a £150,000 loan (typically 75% LTV) the example property would be worth £200,000.

The average UK rental yield is approx. 5% so this example property would gain £833 pcm in rent.

The average UK capital growth is 8.1% p.a.

So realistically although this is suggested to cost an additional £6,700 the property could rise by the historical average, £16,200 in the first year.  (£1,350 pcm)

Equally rent, which is reported to be rising currently, at the current average of £833 pcm minus 10% for the letting agent and the mortgage cost at the higher rate £311 a month leaves over £400.

Returns of over £20,000 a year is attractive and this is why investors are still investing in property.

If lenders interest rates reach 5.5-6% then the rent and mortgage amounts do become close meaning the profit would be the long term capital appreciation.

Long term capital appreciation profits alone are still a return most investors see as handsome.

The current situation means the attraction of positive cash flow every month as well as capital appreciation makes investment in property preferred by all looking for extra security and great profit.


An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                  0208 6109 472

FREEPHONE:       0800 3689 317

EMAIL:                 enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Tue, 25 Oct 2016 00:00:00 GMT <![CDATA[The second annual Landlord Voice survey has revealed]]> https://www.earnestknight.com/7ways2.html/The_second_annual_Landlord_Voice_survey_has_revealed/Blog80 https://www.earnestknight.com/7ways2.html/The_second_annual_Landlord_Voice_survey_has_revealed/Blog80 The second annual Landlord Voice survey conducted by Simple Landlords Insurance has revealed what everyone expected but the media contradicts: Most buy-to-let investors do not plan to alter their inv The second annual Landlord Voice survey conducted by Simple Landlords Insurance has revealed what everyone expected but the media contradicts:

Most buy-to-let investors do not plan to alter their investment strategy in the wake of the government’s plans to cut tax relief on buy-to-let mortgage payments.

  • Just 3% said they were considering selling a property.
  • Only 9% of buy-to-let landlords surveyed said that the Brexit vote meant they would postpone expanding their portfolio.
  • 70% of those polled insisting that the reduction of tax relief on buy-to-let mortgage payments would not affect their plans
  • 4% said they were planning to invest more as a result of the changes.
  • 20% of landlords surveyed said that they will have no option but to recoup their losses through higher rents, with tenants paying the price of the government’s tax-grab.

What is the investment logic? The media have said ‘many landlords are likely to face the prospect of having their profits unjustly wiped out’!

With all of the changes that the government are subjecting Landlords to there is an unanswered question that remains glaringly obvious (and it’s rather good news for property investors)

Does property investment still make great profits?

The government is changing tax in a number of ways, here are a couple:

Tax 1

3% additional stamp duty on second homes.

Well this is a bitter pill, but, in real terms property values rise on average at 8.1% p.a. (Nationwide house price data)

So your asset pays for this additional 3% tax in less than 6 months. Really it is not as bitter a pill to swallow in the medium to long term view that property investors typically have.

Tax 2

Interest relief and income tax calculations.

This is where personal tax advice is required from a qualified tax expert, as your individual circumstances affect the calculations and they will be able to clarify your most tax efficient route forward.

For the purpose of an example here is a breakdown of a BTL home worth approx £100k gaining £500 a month in rent with letting costs of £50 for an investor earning £45,000 p.a. with no other savings or dividend income.

Buy-to-let calculator: how new taxes reduce your profits

 

As now

Transitional rules

New rules

 

2016/17

2017/18

2018/19

2019/20

2020/21

Rental income

£6,000

£6,000

£6,000

£6,000

£6,000

Mortgage interest

£2,625

£2,625

£2,625

£2,625

£2,625

Profit before tax

£2,775

£2,775

£2,775

£2,775

£2,775

% interest relief

100%

75%

50%

25%

0%

Interest now taxable

£0

£656.25

£1,312.5

£1,968.75

£2,625

Taxable profit

£2,775

£3,431.25

£4,087.5

£4,743.75

£5,400

Tax chargeable

£1,110

£1,372.4

£1,634.8

£1,897.2

£2,160

Less 20% tax credit

£0

-£132

-£263

-£394

-£525

Tax due

£1,110

£1,240.4

£1,371.8

£1,503.2

£1,635

Net profit after tax

£1,665

£1,534.6

£1,403.2

£1,271.8

£1,140

 

What this shows is the tax changes causing a loss of £43.60 pcm or £523.20 p.a. by 2020/21.

This is a clear incentive for landlords to increase rents by 10% over the next 4 years

Now this sounds outrageous to some and the media have been touting it as such.

Is a 10% increase in rents by 2020/21 scandalous?

The Office of National Statistics started in January 2011 an index to follow private rental prices in Great Brittain.

The index clearly shows the increases in rents year on year.

Index of private housing rental prices  IPHRP  in Great Britain  results   Office for National Statistics

 

To extrapolate from the data, the index shows an average annual UK rental increase of 6.7% p.a.

6.7% a year for 4 years equates to 26.8% (or 29.6% if you include compound interest) and the government tax eats into 10% of this natural growth leaving 16.8% - 19.6% extra for the landlords.

So are these tax changes going to stop you from investing? NO

3% Stamp duty is made back by the investment in less than 6 average months price growth.

10% less tax relief is covered by the near 30% growth in rents over the same timeframe.

Two things people don’t like, change and additional tax. But really the situation is not anywhere near as dire for the majority as most are projecting it. Property is still a great investment.

Another way of looking at this is it could actually help the landlords make more.

 

How can paying more tax mean more profit for investors?

Well if these tax changes follow the failed experiment in Ireland, then landlords should be celebrating.

Ireland saw a 50% increase in rents over 3 years. They then scrapped the new taxes.

So if this follows the same path, rents increase 50% or even more and it then gets scrapped, Landlords will be quid’s in over the medium to long term. Personally I believe this Irish rental rises were enhanced by the timing of the euro being brought to the country but the upward trend would happen regardless as the overall cost would be clawed back by landlords upping rents.

On a secondary point, the government will have to consider that from this tax change causing rents to rise there will be a significant implication on the housing benefit costs, they will inevitably go up as the council have to use private rentals to compensate for their own lack of housing stock. This vicious circle is robbing ‘Peter to pay Paul’ for the benefit of the statistics in the middle period. The only true looser is the tenants themselves till things are clear again and ultimately the tax payer with an enhanced housing bill to cover which could well in turn reduce the budget for building new council housing.

To come full circle on that point, let’s look at this another way.

 

Supply and Demand

The government have a target for house building to keep up with the increased demand year on year due to population growth. This house building target has not been met for over a decade leaving a deficit of in excess of 1,000,000 new homes across the UK in the last decade. The government propose to use the additional tax revenue to boost house building especially in areas of affordable rental. This in its self is farcical. The £5 billion suggested to be put into this scheme has proffered the figure of around 45,000 additional new homes created. Compared to the deficit of over 1 million homes not created in the last 10 years alone, 45 thousand is nowhere near satisfying the demand from the growth in population and the increase in renters compared to owner occupied homes which has been in decline year on year since 2006. This deficit creates enormous demand on the existing housing stock. This demand creates price rises and rental rises. The only thing that will curb the growth in both capital and rental values is creating more housing stock. The existing housing stock has been adapted to nearly meet with demand. But how many Victorian houses are there left to convert into flats? How many properties remain to be converted for use as multi let or HMO properties that are being rented by those that can no longer afford a 1 bed or a studio?

We have a problem now with housing stock. The steps taken to date are not helping resolve the problem. This means capital values and rental values have the same driving factors and look likely to continue to increase year on year till the supply and demand figures are closer to a balanced equation.

London has a wholly worse housing problem than many other areas. The statistics on population growth suggest the need to attract residents away from the city before they are forced out. Why? London has a significant immigrant demographic. These immigrants are shown to often have different family size aspirations compared with the traditional UK 2.4 children statistic. The ONS population studies show the percentage of live births in England and Wales to mothers born outside the UK continued to rise in 2015, reaching 27.5%; this percentage has increased every year since 1990, when it was 11.6%. Due to the density of immigrants in London it is reported that 58% of new borne babies in the greater London area were from immigrant families last year. Considering these families typically have a higher number of children there is a huge housing, schooling, NHS and services calamity ahead. For example the total fertility rate in the UK is 1.82 children per woman, Barking and Dagenham which has a total fertility rate of 2.42 per woman. To quote an article from 2015 regarding Barking and Dagenham ‘in 2005, 45.1% of all babies born were to mothers who had come to the UK from other countries, whereas in 2014 that figure reached 63.9%’. The ONS state: Data from the 2011 census suggests the average Afghan-born woman living in the UK has 4.25 children, while the average Pakistani-born woman has 3.82 children. That compares with a rate of 2.19 for women living in the UK who were born in one of the 12 eastern European states, and 1.79 for UK-born mothers. This is a growing statistic year on year that is becoming wide spread across the greater London area and has implications that are astonishing.

The benefit to investors across the UK is additional demand for larger family homes, the type that have been the concentration for splitting into flats for over a decade, will cause a rise in value and rentals due to the increasing short supply of 3-5 bed properties.

Synopsys

The supply and demand imbalance is the real fire under property causing rises.

The tax changes are in the main part covered by sustainable growth.

Property remains a great investment.

How great? The past speaks for its self:

Rents increase an average 6.7% p.a.

Values grow an average of 8.1% p.a.

Compound interest shows the average returns of a short (5years), medium (10 years) and long term (20 years) property investment to be

Average 20 year

annualized growth

Average 10 year

annualized growth

Average 5 year

annualized growth

26.95% p.a.

14.46% p.a.

10.47% p.a.

Add the UK average rental yield figure of 5% p.a. to this and you can clearly see the property profit investors are making is very very healthy and look to increase into the future.

Discuss your profit requirements with Earnest Knight today.

 


Read more current news stories here:         http://www.earnestknight.com/marketintelligence.html       


Dear investor,

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the potential profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Leverage our time and expertise and continue to build your assets and increase your potential for residual income.

Do not miss the next decade of potential growth, CALL US NOW!

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                  0208 6109 472

FREEPHONE:     0800 3689 317

EMAIL:                 enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 26 Sep 2016 00:00:00 GMT <![CDATA[UK house price sentiment bounces back post Brexit]]> https://www.earnestknight.com/7ways2.html/UK_house_price_sentiment_bounces_back_post_Brexit/Blog78 https://www.earnestknight.com/7ways2.html/UK_house_price_sentiment_bounces_back_post_Brexit/Blog78 In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you BREAKING NEWS from the UK Property Market Article: UK house price sentiment bounces In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you

BREAKING NEWS from the UK Property Market


Article:           “UK house price sentiment bounces back post Brexit”

Published:       Friday, September 23rd 2016

Source:           PROPERTY WIRE


 

House price sentiment in the UK has bounced back with households across the country believing that prices increased in August, according to the latest index to be published.

Households in London perceived the biggest price growth in September, followed by the South East and East of England but respondents in all 11 regions were positive, the House Price Sentiment Index from Knight Frank and HIS Markit shows.

The future HPSI also picked up again in September with households in all regions confident that the value of their home will rise over the next 12 months with those in the south more confident than the north.

It is the second consecutive monthly rise in house price sentiment following the result of the European Union referendum in June. Some 20.8% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 6.9% said that prices had fallen.

This resulted in a HPSI reading of 56.9. Any figure over 50 indicates that prices are rising, and the higher the figure, the stronger the increase. Any figure below 50 indicates that prices are falling.

September’s reading was an increase from the 51.4 recorded in August, and was the largest month on month increase in the index in seven years. However, in spite of the jump, the index remains below the average HPSI reading for the first six months of the year, prior to the EU referendum of 59.9 ……..

‘House price sentiment is mirroring the broader pick up in confidence after Brexit. This comes as initial data shows a continuing positive picture for both employment and economic output. The housing market is now entering the typically busier autumn season, with indications that activity is rising, especially in key urban areas,’ said Gráinne Gilmore, head of UK residential research at Knight Frank.

 


 

Read more current news stories here:         http://www.earnestknight.com/marketintelligence.html        

 


 

Dear investor,

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the potential profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Leverage our time and expertise and continue to build your assets and increase your potential for residual income.

Do not miss the next decade of potential growth, CALL US NOW!

 

An informed investor is a successful investor!

 

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                  0208 6109 472

FREEPHONE:         0800 3689 317

EMAIL:                 enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 23 Sep 2016 00:00:00 GMT <![CDATA[Property Brexit Fears Appear Wrong]]> https://www.earnestknight.com/7ways2.html/Property_Brexit_Fears_Appear_Wrong/Blog77 https://www.earnestknight.com/7ways2.html/Property_Brexit_Fears_Appear_Wrong/Blog77 The media have spun the seasonal holiday lul in the property market as negative post BREXIT effects. New figures from the CML (council of mortgage areas) show this down treading of market is simply w The media have spun the seasonal holiday lul in the property market as negative post BREXIT effects.

New figures from the CML (council of mortgage areas) show this down treading of market is simply wrong with a sharp rise in mortgage lending in August.

The £22.5bn worth of home loans that went through last month were up 7% on July and 15% higher than August 2015, making it the strongest August since 2007.

The reason the market has remained active is due to several factors, including the Bank of England’s monetary stimulus and its introduction of the Term Funding Scheme last month.

The property markets biggest concern at present remains the general lack of homes on the market, as this has the potential to reduce the number of transactions while enhancing growth. The current deficit of around 100,000 new homes being built every year has been ongoing to the tune of around a million homes now is sustaining house price growth. Couple that with the increasing availability of lending that is exceptionally reasonable it is no wonder the future for investors is currently bright and certainly no less promising due to BREXIT.

 


Dear investor,

If after reading the above articles you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the potential profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Leverage our time and expertise and continue to build your assets and increase your potential for residual income.

Do not miss the next decade of potential growth, CALL US NOW!

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                       0208 6109 472

FREEPHONE:            0800 3689 317

EMAIL:                     enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 09 Sep 2016 00:00:00 GMT <![CDATA[UK Average rents hit all time high]]> https://www.earnestknight.com/7ways2.html/UK_Average_rents_hit_all_time_high/Blog75 https://www.earnestknight.com/7ways2.html/UK_Average_rents_hit_all_time_high/Blog75 The average rent in England and Wales has reached an all-time high of 846 per month - a year-on-year increase of 5.2 per cent. Nationwide House Price Data to the end of Q2 2016 also shows a 5.1% aver The average rent in England and Wales has reached an all-time high of £846 per month - a year-on-year increase of 5.2 per cent. 

Nationwide House Price Data to the end of Q2 2016 also shows a 5.1% average increase in values year on year

Data from Your Move suggests no significant effects yet from the fallout of the EU referendum result. 

Source


Read more current news stories here:         http://www.earnestknight.com/marketintelligence.html        


Dear investor,

If after reading the above articles you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the potential profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Leverage our time and expertise and continue to build your assets and increase your potential for residual income.

Do not miss the next decade of potential growth, CALL US NOW!

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                         0208 6109 472

FREEPHONE:            0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 15 Aug 2016 00:00:00 GMT <![CDATA[Expected Property Market Growth Post BREXIT Remains Unchanged]]> https://www.earnestknight.com/7ways2.html/Expected_Property_Market_Growth_Post_BREXIT_Remains_Unchanged/Blog74 https://www.earnestknight.com/7ways2.html/Expected_Property_Market_Growth_Post_BREXIT_Remains_Unchanged/Blog74 Rightmove have confirmed that the UK property market growth remains unchanged and stable. Rightmove director and housing market analyst Miles Shipside. announced this morning that 'The average fa Rightmove have confirmed that the UK property market growth remains unchanged and stable.

Rightmove director and housing market analyst Miles Shipside. announced this morning that 'The average fall in new seller asking prices at this time of year has been 1.2 per cent over the last six years, so this month’s fall is exactly in line with the long-term average.'

The logical result from Brexit uncertainty coinciding with both the seasonal slowdown and the brief lull following the first quarter buy to let surge, would be to see a vastly bigger drop if the confidence in the market was not still strong. This suggests that the pick up in values, as the residential buyers return form holidays to the market, will be inline with the general UK growth.

Nationwide house price data shows the average annual rise in house prices to be 8.1% since their records began in 1952. Prices have risen 36.4% since the start of 2009, to the tune of  5.2% p.a. showing there is still growth in the UK's average house prices expected by the statisticians.

One interesting statistic is that the larger properties advertised on Rightmove are the ones that are remaining on the market longest with an average of 74 days before attracting an acceptable offer. This is over 2 weeks longer than the equivalent timescale for two or fewer bedroom properties. This is reflected in the seller asking prices with two bedroom properties dropping only 0.5% during the summer. For perspective average asking prices dropped 0.8% last summer and 2% in 2014. The volume of enquiries on Rightmove are 4% up on July 2014, showing the BREXIT effect is not removing the confidence or buyers from the market during the typically slower holiday season.

With The Bank of England base rate dropping and lenders releasing more and more enticing products, looking to encourage borrowing, there is a great opportunity right now for securing a bargain ahead of the seasonally expected rise as the residential market returns from it's holidays shortly.


Read more current news stories here:         http://www.earnestknight.com/marketintelligence.html        


Dear investor,

If after reading the above articles you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the potential profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Leverage our time and expertise and continue to build your assets and increase your potential for residual income.

Do not miss the next decade of potential growth, CALL US NOW!

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                         0208 6109 472

FREEPHONE:            0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Thu, 28 Jul 2016 00:00:00 GMT <![CDATA[Housing News Round Up]]> https://www.earnestknight.com/7ways2.html/Housing_News_Round_Up/Blog73 https://www.earnestknight.com/7ways2.html/Housing_News_Round_Up/Blog73 In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you BREAKING NEWS from the UK Property Market Article: Housing news round-up Published In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you

BREAKING NEWS from the UK Property Market


Article:           “Housing news round-up”

Published:       Thursday, July 21st 2016

Source:           NETHOUSEPRICES

After several weeks of uncertainty following the Brexit vote, things are finally showing signs of stabilising. We have a new Prime Minister who has taken a "new broom" approach and ushered in an almost entirely new Cabinet. The stock and currency markets reacted - at least initially - with an almost audible sigh of relief and both FTSE100 shares and Sterling rallied after plunging fairly dramatically after the referendum.

Housing, of course, hasn't escaped this treatment. It was a hot political potato under David Cameron's watch and it doesn't look to be cooling down anytime soon. There's a serious housing shortage that, frankly, all the well-meaning buy-to-let taxes and help-to-buy schemes in the world won't remedy.

Do we really have a housing crisis in the UK?

The situation is complicated and various bodies tend to use different methodologies for preparing their statistics. If you conflate the different reports, the one take-away is that there simply aren't enough houses and those that are available are often too expensive for first time buyers (FTBs). This is essentially a supply and demand problem, and, as much as it suits the agendas of various political parties to blame each other for the problem, it has actually been percolating away quietly for decades.

What are the latest proposals?

In the wake of Theresa May's appointment, various trade and professional bodies have made suggestions, as have numerous economists. A key commonality between the various proposals is a desire to reduce regulation, whether it be at planning level or at the more esoteric level of health and safety. Brexiters point out that this deregulation will be facilitated by leaving the EU although even the most optimistic among their number would concede that this won't happen overnight.

Taxation is another huge bugbear. Abolition of stamp duty is routinely recommended, with the inference seeming to be that any tax applied to property is connected with income on sales and rentals. The argument is that this will make the cost of buying a house less prohibitive, with fewer add-ons beyond the purchase price. It should also, say proponents, help to contain rental prices since landlords will have fewer expenses.

Incentivising house building programmes through subsidies or tax breaks is a further idea being mooted. Whether this can be executed without adding to the average person's tax bill will be a central factor in whether the Government elects to follow the advice.

As an adjunct, Parliament’s Economic Affairs Committee has recently published a report into the housing crisis and its headline recommendation is that the Government should build some 300,000 residential properties each year, with housing associations and councils being given greater freedom to construct affordable homes. This would almost equal the post-war house building programme.


Article:           “How the Leave vote may affect UK property prices - what you need to know”

Published:       Wendesday, June 29th 2016

Source:           NETHOUSEPRICES

 

The result of the EU referendum will impact on property sectors across the UK in different ways. Knight Frank's residential research team puts forward their views on how leaving the EU may affect UK's residential property markets both in short and long-term.

    Uncertainty could  result in a further dampening of homes coming onto the market

    Base rate may well be cut in the coming weeks

    The second-round effects from a slowing economy and growing unemployment will also be felt in the housing market

    Some demand, especially from investors, will be delayed and in some cases redirected to other markets...

"The UK vote in favour of Brexit has the potential to make a relatively swift impact on the housing market," says Grainne Gimore, Knight Frank's Head of UK Residential Research. "The scale of this effect, especially in the medium to long-term, will depend on the outcome of negotiations on the UK’s exit.

"In the short-term, consumer confidence is likely to be knocked by the continued uncertainty, especially with regards to trade. This may weigh on activity in the market, especially those making discretionary purchases, which could result in a slip in transaction volumes, and prices.

However, uncertainty could also result in a further dampening of homes coming onto the market, and this lack of supply will provide a floor under prices.                          

"In the short to medium-term, the fundamental demand and supply dynamics in the market are unlikely to change, with a continued structural undersupply of homes across the country, underpinning pricing in some of the most desirable and best connected areas."


Read more current news stories here:         http://www.earnestknight.com/marketintelligence.html        


Dear investor,

If after reading the above articles you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the potential profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Leverage our time and expertise and continue to build your assets and increase your potential for residual income.

Do not miss the next decade of potential growth, CALL US NOW!

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                         0208 6109 472

FREEPHONE:            0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 04 Jul 2016 00:00:00 GMT <![CDATA[Great news for property investors | Base rate to drop | Corporation tax to drop]]> https://www.earnestknight.com/7ways2.html/Great_news_for_property_investors__Base_rate_to_drop__Corporation_tax_to_drop/Blog70 https://www.earnestknight.com/7ways2.html/Great_news_for_property_investors__Base_rate_to_drop__Corporation_tax_to_drop/Blog70 After the media projects doom and gloom, the see saw rolls back the other way. Great news for UK property investors Mark Carney has suggested the Bank of England base rate is likely to drop below 0. After the media projects doom and gloom, the see saw rolls back the other way.

Great news for UK property investors

Mark Carney has suggested the Bank of England base rate is likely to drop below 0.5% shortly.

interest-rate-history

Now George Osborne announced he is looking to cut corporation tax to under 15%.

corporation-tax-history

Those investors that thought BTL could become less lucrative due to last year’s tax changes have now seen the added incentive to moving properties and portfolios towards a corporate structure by 2020.

In addition to the great tax news, and interest base rate news, lenders have started to slash fixed rate products and the 5 year fixed rates available are now better than the non discounted variable rates.

Right now is the most opportune time to review your portfolio to ensure profitable success.

Many investors find after discussing their portfolio with Earnest Knight that they can save costs and make more into the future.

Call 0208 6109 472 today and discuss making more for your future today.

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                       0208 6109 472

FREE PHONE:           0800 3689 317

EMAIL:                      enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Wed, 29 Jun 2016 00:00:00 GMT <![CDATA[Why overseas property buyers are snapping up UK property]]> https://www.earnestknight.com/7ways2.html/Why_overseas_property_buyers_are_snapping_up_UK_property/Blog69 https://www.earnestknight.com/7ways2.html/Why_overseas_property_buyers_are_snapping_up_UK_property/Blog69 Overseas property buyers are snapping up UK property after the shock decision for the UK to leave the EU. Here at Earnest Knight in the UK we have been swamped with calls from Chinese, Middle Eastern Overseas property buyers are snapping up UK property after the shock decision for the UK to leave the EU.

Here at Earnest Knight in the UK we have been swamped with calls from Chinese, Middle Eastern and US investors looking for a bargain after the pound tumbled to more than 30-year lows, making the exchange rate very favorable for foreign buyers.

Middle Eastern bank and family office representatives have already started requesting a list of properties ready for investors that would be ready to purchase at the end of Ramadan. 

New build development offerings are receiving record breaking enquiries from clients in the Middle East, Africa and the USA who are all asking about UK property.

“The sharp fall in sterling will be seen by investors from around the world as a buying opportunity”

There are no signs of the British property market “falling off the face of the earth” as some had feared it might if the UK voted to leave.

Earnest Knight consultants have had a 50% increase in the number of buyers from China and Singapore reserving properties compared to a week earlier. 

“It would seem that while a number of European buyers may be tentatively dipping their toe into post-EU property investment in Britain, those from further afield are looking to dive in head first and take advantage of the current indecision in the market due to a weaker pound” 

Buyers from the eurozone gained a €50,900 (£42,000) currency bonus on the average London house price in the wake of the referendum result

graph

The depreciation in sterling meant the average price of a house in London now equates to just €579,200 – compared to a record high of €630,100 in November 2015.

“European buyers can now snap up real bargains across the UK. Overnight the UK has become a more affordable global property hotspot”

Increasing concern over the stability of the eurozone may be on the mind of wealthy families around Europe. Some of these wealthy investors are looking to put their money in property in London.

“If you look back to 2008, central London property benefited enormously from people wanting to put their money in a stable asset in a sterling currency”

Should you buy? If you spent a good deal of time trying to find the right property you should go ahead with the transaction.

 “We've seen that the types of buyers who are buying for an attempt at short term gain hold looking for the possibility of a dip in the market, but those looking for long term wealth creation have been quite nonchalant to this premise as ‘we buy under the market value so factor in the possibility of short term fluctuations in our long term returns strategies’” 

“Buyers, whether they are owner occupiers or professional investors, need to remember that long term, property is the still best performing investment asset class around,”

 “The huge shortage of property against strong domestic driven demand in the UK has not changed overnight just because of Brexit.”

 

Remember the fact that since the last In/Out EU Referendum in June 1975, property values in Britain have risen by 1750.93%

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                       0208 6109 472

FREE PHONE:           0800 3689 317

EMAIL:                      enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Tue, 28 Jun 2016 00:00:00 GMT <![CDATA[UK regional cities see prices surge, led by Liverpool and Bristol]]> https://www.earnestknight.com/7ways2.html/UK_regional_cities_see_prices_surge_led_by_Liverpool_and_Bristol/Blog71 https://www.earnestknight.com/7ways2.html/UK_regional_cities_see_prices_surge_led_by_Liverpool_and_Bristol/Blog71 In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you BREAKING NEWS from the UK Property Market ------------------------------------------ In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you

BREAKING NEWS from the UK Property Market

----------------------------------------------------------------------------------------------------------------

Article:           “UK regional cities see prices surge, led by Liverpool and Bristol”

Published:       Tuesday, June 28th 2016

Source:           PROPERTY WIRE

 

Regional cities in the UK, led by Liverpool and Bristol, have seen house prices surge, helped by rising number of investor buyers, the latest cities index shows.

The 20 city index from Hometrack shows that overall prices have increased by 4.4% quarter on quarter and 11.2% year on year, taking the average price to £237,500.

Liverpool has seen the highest growth in the last quarter and Bristol has the fastest annual growth rate. Prices in Liverpool were up 5.4% quarter on quarter and 6.5% year on year while in Bristol they increased 4.2% quarter on quarter and 14.1% year on year.

Quarter on quarter the prices growth has been led by Edinburgh, Belfast and Aberdeen with a rise of 19%, 16% and 12% respectively while Aberdeen, which has been affected by the fall in oil prices is the only city in the index to have seen prices fall, down 4% quarter on quarter and 9.6% year on year.

But there is likely to be some affect from the referendum result that the UK should leave the European Union and the Hometrack index report says that it will impact turnover far more than house prices in near term although it predicts a rapid deceleration of house price growth across all cities in the second half of 2016.

‘The city level impact is hard to gauge but we expect the immediate impact to be felt in London where affordability levels are stretched and the market was already facing headwinds,’ it explained.

Overall, the report says that price inflation continued to increase in May, building on a strong first quarter and the surge of investor demand ahead of the stamp duty change for additional homes that came into force in April. Year on year growth is running at 11.2% compared to 6.2% twelve months ago.

However, Hometrack does not expect house price falls as the greatest impact will be on market activity. ‘House price falls would require forced sellers, driven by higher mortgage rates and/or rising unemployment. While short term turmoil in financial markets will impact market sentiment, it is too early to say how the vote to leave will impact the real economy,’ the report explains.

It also points out that the fundamentals of the housing market remain unchanged with record low mortgage rates and a wide imbalance between supply and demand. ‘The UK doesn’t have a problem with housing demand, the more important question is how many buyers and sellers feel confident to participate in the market in the near term,’ it says.


Dear investor,

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the potential profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Leverage our time and expertise and continue to build your assets and increase your potential for residual income.

Do not miss the next decade of potential growth, CALL US NOW!


An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                    0208 6109 472

FREEPHONE:         0800 3689 317

EMAIL:                  enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 27 Jun 2016 00:00:00 GMT <![CDATA[BREXIT is far from doom and gloom!]]> https://www.earnestknight.com/7ways2.html/BREXIT_is_far_from_doom_and_gloom/Blog68 https://www.earnestknight.com/7ways2.html/BREXIT_is_far_from_doom_and_gloom/Blog68 Property owners and investors will triumph. As predicted, the pound is in free fall and the world stock markets are gyrating but this will be short lived, there is no need for landlords to panic foll Property owners and investors will triumph.

As predicted, the pound is in free fall and the world stock markets are gyrating but this will be short lived, there is no need for landlords to panic following Britain’s decision to exit the European Union, once the speculators have calmed down and new investors seize the opportunities that will arise Property will remain to be the favorite topic of profitable investment conversation it has always been.

keep-calm-and-carry-on-letting-600x

The National Landlords Association (NLA) agrees with our ‘Don’t Panic’ stance.

Landlords have already started to compensate for the various tax measures announced by the Chancellor George Osborne, including higher stamp duty rates, while mortgage tax relief will begin cuts from next year. Tougher buy-to-let mortgage lending criteria has not been the deterrent that puts off serious investors either. The National Landlords Association (NLA) does not necessarily believe that a Brexit should add to landlords’ troubles as an exit from the EU may not have an adverse impact on the private rented sector, especially now that the Bank of England and the Treasury have confirmed that they have extensive contingency plans in place to ensure the country’s financial stability.

Richard Lambert, chief executive officer at the National Landlords Association (NLA), said: “Let’s just everyone, take a long, deep, calm breath.  Leaving the EU is completely unknown territory, and jumping to conclusions isn’t going to help anyone. We welcome the Mark Carney’s steadying words and his reassurance that the Bank of England and the Treasury have extensive contingency plans in place. Any knee-jerk reaction will have a real impact on our members’ mortgages, tenants’ rents and overall confidence in the market.  So we would urge the policy as regards to interest rates should be, to continue the Prime Minister’s analogy, one of steady as she goes.”

“Fixed-rate mortgages ‘likely to get even cheaper’ following Brexit” (see mortgage best buys - click here)

A fall in gilt yields will reduce the cost for lenders of longer term funding and hence open the door for even cheaper fixed rate mortgages, according to Ray Boulger of John Charcol.

Given that most mortgage lenders did not pass on much of the pre-referendum reductions in rates, Boulger expects to see greater price competition, especially in the longer term fixed rates, helping to push already cheap fixed-rate mortgages to new lows. He forecasts that many lenders will follow HSBC’s lead and slash five-year fixed-rate mortgages priced to below 2% – perhaps at around 1.95% – and advised those thinking about taking out a fixed deal to “hold off for a week or so and see where the market settles down”. A longer term look at implications for the housing market suggests demand for property will continue to increase, Boulger added. “Until we actually leave the EU, immigration is likely to continue especially in the run up to any potential tightening of border controls.” 

Remember the fact that since the last In/Out EU Referendum in June 1975,

property values in Britain have risen by 1750.93%

Since 1975 we have experienced double digit interest rates and more than one economic dip, credit crunch, recession.

Have property investors made significant profits? YES

SO, what is the best thing to do?

Cash income is king so buying property for rental yield is a firm strategy for successfully profiting. Especially with the long term growth profit property has provided and will continue to.

Fortune makers see the opportunities, make decisions and act. The wait and see crowd fail to make profit till the opportunity is not as advantageous or often the procrastination sees the opportunity vanish entirely.

House prices could in the short term come down a small % as prolonged uncertainty and a potentially weaker economy has an adverse impact on the market. This creates buying opportunities now. The general housing shortage means that prices should rise shortly after, seeing continued exceptional capital growth profit in the medium to long term. Indecision and waiting to see will cost you immediate rental returns.

The dramatic drop in the value of the UK pound has alerted many shrewd international property investors. Many property investors from around the globe are taking advantage of the vastly favorable exchange rate and snapping up bricks and mortar in the UK.

Let us all not forget the basic supply and demand point, residential developers and their financiers will be less willing to commit to new property projects in an uncertain economic climate. This will make it much harder for the government to achieve its target of building 1m new homes by 2020. This will add to the supply-demand imbalance, placing upward pressure on house prices and rental values in the longer term.

your-tenants-need-you-600x

Conclusion

The healthily rental market will carry on functioning despite the UK’s decision to exit the EU. Buy at a price discounted more than any perceived short term fluctuation and you are in immediate profit. Over time values will increase as they do to see values above where they are now adding further profit to rental income. Rents are on the up, due to supply and demand and this is bolstered further due to taxation changes encouraging Landlords to up rents to compensate for additional taxation. Landlords ensure profits are maintained and improved for all property investors into the future with the rental increases. To add to these points, the fixed rate mortgage rates dropping would see further monthly income fixed for specified periods. (see mortgage best buys - click here)

How much do you want to make? Discuss this today call 0208 6109 472

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                       0208 6109 472

FREE PHONE:           0800 3689 317

EMAIL:                      enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Thu, 23 Jun 2016 00:00:00 GMT <![CDATA[Tax Changes: Many Landlords and Property Investors are still unaware and confused]]> https://www.earnestknight.com/7ways2.html/Tax_Changes_Many_Landlords_and_Property_Investors_are_still_unaware_and_confused/Blog67 https://www.earnestknight.com/7ways2.html/Tax_Changes_Many_Landlords_and_Property_Investors_are_still_unaware_and_confused/Blog67 All investors should have a goal. The chosen goal should lead to a strategy being formed. All Investors and Landlords will have to tweak their strategy and react to changes to maximise profit. Dis All investors should have a goal. The chosen goal should lead to a strategy being formed.

All Investors and Landlords will have to tweak their strategy and react to changes to maximise profit.

tax trap

Discussing your personal investment strategy with other investors and the people working with investors, who gain a mass of rounded knowledge from very different investor viewpoints, can be the key to continuing to gain maximum profits by keeping your portfolio at the peak possible performance.

property tax filehouse calc and coins

STRATEGY & CHANGE

Yes a lot of people do fear change, however change often results in opportunity. This is why the media driven information is not always enough for the astute investor who wants to find the optimum methods employed by successful investors that are not as widely publicised.

This adaptation process is often started with the basics. For example, it is advisable to decide if there will be a need for an exit plan. If there should be one, when and what that might be. A poignant topic at present is considerations such as Capital Gains Tax planning and Inheritance Tax Planning alongside personal ongoing Taxation. These points are best addresses at the outset, prior to the point of a purchase, as this is when you can minimise the costs when they occur, be that at the beginning, during or at the end of the investment. For younger and older investors alike, it is important for you to have a will to avoid unwanted disputes and to utilise any tax breaks available.

SINGLE OR JOINT OWNERSHIP

Prior to any investment property acquisition, because it is easier to decide before than change it after, it is advisable to consider single or joint ownership. For example if your partner is not working, you may wish to arrange joint ownership to utilise their maximum tax free income allowance. (currently £11,000p.a.)

  • Those with an equal ownership interest in a property are described as ‘Joint Tenants’ and the rental income would normally be split 50/50 for tax calculation.
  • Those that set things out with identifiable shares are described as ‘Tenants in Common’ and the rental income would be split as per the share description e.g. split 85/15. Spouses would need to complete a declaration of such on HMRC Form 17 to ensure tax is not automatically calculated on an equal share basis.

LTD COMPANY OWNERSHIP

The government appears to be looking to encourage all BTL property owners to move to a corporate structure with the two biggest changes to taxation in the property investment arena being announced and rolled out between April this year, with the additional 3% SDLT on second homes and residential BTL purchases, and the tax relief changes being introduced in phases over the next four years. This makes the most common question ‘Will I save more tax if I hold property in a LTD company or personally?’

Unfortunately there is not a definitive answer due to the complexity of factors such as personal circumstances, funding options, time to hold the investments, future changes to legislation etc. To understand more about this read on.

     What is a LTD Company?

A company holds a separate legal status to its owners. A company can be owned by one or more individuals who share the profits. The profits are usually paid in the form of dividends.

     How is rental income taxed in a LTD company?

Companies pay Corporation Tax not Income Tax. Corporation Tax is currently 20%. This is half that of a higher rate (40%) Income Tax payer. The first £5,000 of Dividend payments is a tax free allowance. When dividends are received within the basic rate tax band there will be an income tax rate of 7.5%. For higher rate taxpayers they will pay the equivalent of 32.5% of the dividends received. If your total income breaches the £150,000 mark 38.1% is the rate. This means you could save upto 7.5% tax holding your portfolio inside a LTD Company.

CAPITAL GAINS TAX AND LTD COMPANIES

Any profit made on a property, other than a main residence, is subject to CGT. Companies do not pay CGT but instead they pay CT (Corporation Tax) meaning if a LTD Co. sells a property the capital gain is added to the rental profit in that year and the LTD Co. pays 20% CT compared to 18% for a basic rate taxpayer and 28% for a high rate taxpayer. As there are some reliefs available to individuals in many cases investors could be worse off in a LTD Co. structure when looking to trade. It is strongly recommended you seek specialist tax advice from an accountant with experience with property investors. This type of Tax advisor can help you through the ATED (Annual Tax on Envelope Dwellings) rules too.

Restriction of Mortgage Interest Relief

The changes announced in the summer last year will affect residential landlords receiving rent from 6th April 2017 as follows

2016-2017:      Finance costs will be deducted from rental profits as currently allowed.

2017-2018:      75% of finance costs will be deducted from rental income, 25% being available as a basic rate tax deduction.

2018-2019:      50% of finance costs will be deducted from rental income, 50% being available as a basic rate tax deduction.

2019-2020:      25% of finance costs will be deducted from rental income, 75% being available as a basic rate tax deduction.

2020-2021:      All finance costs will be given as a basic rate tax deduction.

Individuals will be able to claim basic rate tax reduction from their income tax liability on the portion of finance costs not deducted in calculating rental profit, and excess finance costs may be carried forward to following years, if the tax relief has been limited to 20% of the profits in a business year.

Allowable Expenses

Careful steps of consideration and calculation over expenses must be taken. Some expenses are deductable form rent received however others will be seen as capital considerations that relief maybe given on the eventual sale of the property. Ongoing expenses are those incurred in generating income.

Water rates:          If you pay these and not the tenant.

Insurances:           All insurances in connection with the property.

Council Tax:          If you are liable for council tax it could be included.

Legal:                    Any legal costs associated with the tenancy are allowable.

Maintenance:        Like for Like repairs are permitted but vast improvements will not be e.g. wooden windows being replaced by UPVC maybe included but a shower upgraded to a sauna and Jacuzzi style spa bathroom is not likely to be acceptable.

Letting costs:         Any agent or management fees are allowable.

Wear and Tear:     There is no longer a notional allowance but the actual cost of replacements is included.

Owners Expenses: An accountant will be able to assist you with amounts related to visiting the property i.e. vehicle costs, fuel etc

Advertising:           Typically this is part of the agents costs but landlords that advertise and mange their own property will have advertising costs included.

 

FAQ

How can I assess the impact of the taxation changes that are coming?

If you have mortgages / loans / finance it is important that you assess your situation as soon as possible. Your accountant or a specialist property focussed accountant should assess the potential increase to your tax liability.

Should I put my properties into a LTD company?

There are circumstances when purchasing through a LTD company can be beneficial. Each would need careful consideration from a property focused accountant with a good understanding of corporate structures and tax efficient methods of realising profits personally. The impending tax changes from now to 2020 do make the company structure look more and more attractive into the future. Contact, at the earliest possible time, a specialist property focussed accountant and discuss your personal circumstances. Ask them what alternatives to a LTD company may be beneficial for your circumstances.

How do I ensure the taxation changes do not affect my income?

You cannot, but, you can plan to be efficient within the new calculations or you can plan to be efficient, calculate what the financial difference will be and once known a property consultant can assist growing your portfolio to see the same income result or an even better one in the shortest timescale possible.

How can I grow a portfolio quickly and efficiently?

Many investors start out thinking that to raise capital for deposits for further acquisitions they have to sell property in order to realise the capital required to add to their portfolio. Many investors choose not to subject their position to Capital Gains Tax and sales costs by choosing to use equity as deposits against new purchases. This promotes growth especially quickly when the properties are acquired below the current market value creating additional equity profit at the point of purchase. Speaking to an accountant and a property consultant can help you create a strategy and find the properties required to grow your portfolio in the best possible way.

So now that you have an overview, what should you do?

  1. If you have not spoken to your Earnest Knight consultant in the last few weeks call them to discuss your situation and aspirations.
  2. Then discuss your tax, management and exit plans with and accountant.
  3. Then call your Earnest Knight consultant to discuss the future further with the accountants suggested structures in mind.
  4. Put the plan discussed with your accountant and consultant into action immediately.
  5. If you do not have one already, create a will.

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREE PHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Wed, 01 Jun 2016 00:00:00 GMT <![CDATA[Rents are being driven upwards]]> https://www.earnestknight.com/7ways2.html/Rents_are_being_driven_upwards/Blog66 https://www.earnestknight.com/7ways2.html/Rents_are_being_driven_upwards/Blog66 Private tenants across Great Britain saw their rent increased by 2.6% in the twelve months to April 2016, according to figures from the Office for National Statistics (ONS). The average cost of renti Private tenants across Great Britain saw their rent increased by 2.6% in the twelve months to April 2016, according to figures from the Office for National Statistics (ONS).

The average cost of renting a property outside London rose by 5.1% in the 12 months to April, while tenants in the capital faced a 7.7% increase, according to the latest figures from referencing firm HomeLet.

Average rents in England increased between January 2005 and February 2009, fell between July 2009 and February 2010 and have been increasing steadily since May 2010.

In the twelve months to April 2016, private rental prices increased in each of the nine English regions. Three regions - the East Midlands (8.5%), West Midlands and the East of England - have now broken all-time records for rents according to the ONS. Where as HomeLet said rents were rising faster in Scotland than anywhere else in the UK, with the average up by 11.4% year-on-year to £704 a month. The next highest rise was in the east Midlands, where new tenancies cost 7.9% more than in April 2015 at an average of £646 a month.

"Ironically, the government’s efforts to help first-time buyers by penalising investors, could end up hindering them as a shortage of rental properties will drive up rents in the long term, making it more difficult to save up for a deposit,” commented Paul Smith, chief executive of Haart.

Last week Your Move and Reeds Rains reported that average rents are now increasing at the fastest rate since last autumn.

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREE PHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

 

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 20 May 2016 00:00:00 GMT <![CDATA[Still confused about property investment, tax and returns?]]> https://www.earnestknight.com/7ways2.html/Still_confused_about_property_investment_tax_and_returns/Blog65 https://www.earnestknight.com/7ways2.html/Still_confused_about_property_investment_tax_and_returns/Blog65 The media has made a big song and dance since the Chancellor George Osborne announced that tax relief on buy-to-let mortgage interest payments would be reduced from April 2017 and that buy-to-let p   Confused sign

The media has made a big song and dance since the Chancellor George Osborne announced that tax relief on buy-to-let mortgage interest payments would be reduced from April 2017 and that buy-to-let properties (and second homes) would incur an extra 3% stamp duty.

Changes should not be a surprise in any investment market, but, what do these changes really mean and is property still the preferential investment?

Simple facts are great to look at when ascertaining the bottom line as an investor.

Firstly 3% additional stamp duty how does this affect property investment?

3% stamp duty brings the costs of acquiring up but the returns are hardly influenced at all over a medium to long term investment period.

Property statistics show the average return on cash invested over 5-15 years to be a whopping 41.5% p.a., excluding rental profit after mortgage and costs.

For example history* shows that the average house price rise p.a. is 8.1%, so 3% stamp duty cost can be recovered in an average 6 months of market growth

 

FOR BTL

2000

2005

2010

2015

From today

Average property value

£77,698*

£152,790*

£162,887*

£188,566*

£198,564*

Stamp Duty

(1% of total)

(1% of total)

(2% over 125k)

(2% from 125k to 250k)

(3% up to 125k then 5% to 250k)

£776.70

£1,527.90

£757.74

£1,471

£7,428

Acquisition costs

£5,000

£6,000

£7,000

£8,000

£8,000

Typical BTL LTV

95%

90%

70%

75%

75%

Typical mortgage interest rate

6%

5%

4%

3%

3%

Interest only monthly payment

£369.07

£572.96

£380.07

£353.56

£372.31

Cash needed

to invest inc. deposit

£9,661.60

£22,806.90

£56,623.84

£56,612.50

£65,069

5 year est. ROCI

£69,315.30

£2,569.10

£17,921.26

£80,313

£86,905

10 year est. ROCI

£79,412.30

£28,248.10

£107,705.67

£212,848

£230,175

15 year est. ROCI

£105,091.30

£118,032.51

£240,240.30

£408,488

£441,662

 

Rental excess/income has not been included in the Return On Cash Invested.

The average ROCI on the table is 41.5% p.a.

Does 3% stamp duty make a significant difference? Yes to the acquisition cost but not to the returns over time.

Tax is another area of peaked interest due to the changes being brought in regarding tax relief on buy-to-let mortgage interest payments.

What does the loss of tax relief mean?

If you’re new to buy-to-let, you might not appreciate what this is. Up to now, people buying to let have been able to claim tax relief on their mortgage interest payments at their marginal rate of tax. This means that a basic rate taxpayer would get 20% tax relief, but those at a higher rate would receive 40% relief, while top-rate taxpayers could claim 45%.

What’s changing?

When the changes come in April next year, tax relief will be a flat rate of 20%. Landlords who pay basic rate tax would see no change, but those on higher incomes will find themselves losing much more in mortgage interest payments.

Example Net Yield Calculation

An indication we have seen is from The Nationwide Building Society published recently estimated figures of how a typical landlord’s profits might be hit. Someone with a £150,000 buy-to-let mortgage on a property worth £200,000, with a monthly rent of £800, would currently have a net profit of around £2,160 a year. Under the new system, the net profit would be £960.

The Property Investment Overview:

1. There will always be demand for renting

  • Today a fifth of households rent from private landlords, according to Respublica. This could be because of rising house prices and a lack of affordability or just because people want flexibility.
  • Tenant demand remained high in the last quarter of 2015, according to Kent Reliance.
  • Landlords survey said that 43% indicated that demand was either ‘growing’ or ‘booming’, up 3 per cent on the previous quarter.
  • Additional Landlord costs and demand will see rentals grow and yields increase.

2. Record-low mortgage rates

  • Mortgages in both the residential and buy-to-let sector have fallen to record levels, helped by the historically low Bank of England base rate of interest.
  • Landlords are also benefiting from increased choice of home loans as with no signs of interest rates rising in the near future there are plenty of competitive deals to snap up. There are now more than 1,000 buy-to-let mortgages on the market, up from just over 800 a year ago and 486 in 2012, according to Moneyfacts. CML policy changes have and continue to make the lending safer and safer for the consumer.

3. Great yields are still stable

  • You can calculate rental yield by calculating the annual rent received as a percentage of the purchase price.
  • For example, a property delivering £10,000 worth of rent that costs £200,000 has a 5% yield.
  • Gross rental yields are expected to remain at the same level as 2015 over 2016, giving an average figure of 6.4%

4. Portfolio, Tax and Estate Planning

  • Structuring your portfolio in a more tax efficient way could be arranged after gaining advice from a qualified tax planner.
  • For example, we have seen investors using LTD companies for a corporate strategy and trusts
  • Higher rate tax payers will be seeking advice and will look to become more tax efficient with the changes over the next few years.

The outlook when considering the major influencing factors is still very attractive for most property investment styles. The ‘flipping’ or buying to sell for profit strategy is not as appealing or profitable with the additional 3% charge so picking your deals will become the key to maintaining the strategy. Long term BTL is hardly influenced and the rental prices are already rising to compensate investors with additional yield income. Interest rates look to be remaining at the exceptionally low levels they are for some time yet. Mortgage lending criteria is being adjusted to keep investors and banks safe in their investment. First time buyers are seeing more lending come to the market with terms like 100% LTV that will keep the market active.

Till the volume of new build accommodation being brought to the market outweighs the demand prices will continue to rise. The smart investor will look for a strategy that fits their personal needs. Often this will require yields levels that can only be gained by buying under market value. To get the best strategy and property opportunity you should discuss your investment aspirations and goals with Earnest Knight today.

CALL Earnest Knight NOW 0208 6109 472 or email enquiries@earnestknight.com

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

 

* Nationwide house price data recorded since 1952

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 01 Apr 2016 00:00:00 GMT <![CDATA[Property growth remains at sustainable levels; Latest Land Registry HPI]]> https://www.earnestknight.com/7ways2.html/Property_growth_remains_at_sustainable_levels_Latest_Land_Registry_HPI/Blog63 https://www.earnestknight.com/7ways2.html/Property_growth_remains_at_sustainable_levels_Latest_Land_Registry_HPI/Blog63 Property value growth remains at sustainable level. The latest Land Registry HPI (30 March 2016 Release) shows the national average annual property value growth to February to be 6.1% Table cont Property value growth remains at sustainable level.

The latest Land Registry HPI (30 March 2016 Release) shows the national average annual property value growth to February to be 6.1%

linde-head-table

county-map-and-breakdown-table

Table continued on link below

regional-table

Significant year on year rises in sales volumes of property priced over £200,000 are seen across the UK

Repossession levels 50% less than last year and still dropping as they have since 2010.

reposession-levels

A quarter of all the UK repossessions are in the North West where the market grew in average value at 4.9% last year.

 

Property value growth remains at sustainable level with London being comparatively volatile to the rest of the country.

Average-growth-graph

The trends seen are comforting for investors looking for continued growth and stability while growing their portfolios taking advantage of the low lending rates available.

CALL Earnest Knight NOW 0208 6109 472 or email enquiries@earnestknight.com

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

Read the full HPI report:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/511386/Land-Registry-February-HPI-2016.pdf

 

]]>
charles@earnestknight.com (Charles Brittain)
Wed, 16 Mar 2016 00:00:00 GMT <![CDATA[2016 Stamp Duty Changes]]> https://www.earnestknight.com/7ways2.html/2016_Stamp_Duty_Changes/Blog62 https://www.earnestknight.com/7ways2.html/2016_Stamp_Duty_Changes/Blog62 How does the stamp duty compare now with before and with the new changes The basic research indicates very clearly that we had 18 amazing months (between Dec 2014 and now) with effectively lowe stamp-duty-ek-back

 

How does the stamp duty compare now with before and with the new changes

 

The basic research indicates very clearly that we had 18 amazing months (between Dec 2014 and now) with effectively lowered Stamp Duty for purchases up to approximately £925,000 and those savvy investors that have taken maximum advantage by absorbing carefully selected and highly discounted property from Earnest Knight have made the real gains.

Basically The Chancellor has now reversed the significant drop in Stamp Duty that was implemented for the past 18 months and has brought it back to the levels of pre December 2014 with a bit of an increase on top to compensate for the previous period.

In a nutshell it shows one golden rule. The simple message to investors is: DO NOT PROCRASTINATE !!!

These last 18 months are perfect proof of that and those investors that have delayed their purchases in this period are now not making as much as those that have NOT procrastinated and that have reacted and acquired discounted property deals from us

 

Rough basics:

 

How it was until December 2014
Property Purchase Price  Stamp Duty
Up to £125,000  0%
£125,000 up to £250,000   1%
£250,000 up to £500,000 3%
£500,000 up to £1million 4%
£1million up to £2million 5%
Over £2million 7%

 

How it is from December 2014
Property Purchase Price    Stamp Duty
Up to £125,000 0%
The next £125,000 (£125,000 up to £250,000) 2%
The next £675,000 (£250,001 up to £925,000)  5%
The next £575,000 (£925,001 up to £1.5million) 10%
The remaining amount (the portion above £1.5mil) 12%

 

What is proposed from April 2016
Property Purchase Price  Stamp Duty BTL/second home
Up to £125,000    0% 3%
The next £125,000 (£125,000 up to £250,000) 2% 5%
The next £675,000 (£250,001 up to £925,000)  5% 8%
The next £575,000 (£925,001 up to £1.5million)   10% 13%
The remaining amount (the portion above £1.5mil) 12% 15%

 

The table below gives a brief comparison to the new changes comparing them to the long term average Stamp Duty in the UK up to December 2014 and giving an indication of the likely or needed rent increase to absorb the Stamp Duty differential.

Least impact/change is shown in the £250,000 property purchase bracket.

National average rental yield is 6.8% (but this is excluding London where the average yield is under 4% now and that would bring the national average down as well if it was included…..)

 

How it was upto

December 2014

From

December 2014

From

April 2016

What amount is weekly rent to increase to cover the stamp duty difference

(within the first year alone)

Current National average rent for the property in this bracket

Percent increase of the proposed rent rise to the average

£50,000 property purchase price

 

 

£0

£0

£1500

£29per week for a year

or

£14.5per week over 2 years

£3,400pa (£65.38pw)

44.12% increase over year

22.06% increase if spread over 2 years

£75,000 property purchase price

 

 

£0

£0

£2250

£43per week for a year

or

£21.5per week over 2 years

£5,100pa (£98.08pw)

44.12% increase over year

22.06% increase if spread over 2 years

£100,000 property purchase price

 

 

£0

£0

£3000

£58per week for a year

or

£29per week over 2 years

£6,800pa (£130.77pw)

44.12% increase over year

22.06% increase if spread over 2 years

£125,001 property purchase price

 

 

£1250

£0

£3750

£48per week for a year

or

£24per week over 2 years

£8,500pa (£163.46pw)

29.41% increase over year

14.71% increase if spread over 2 years

£150,000 property purchase price

 

 

£1,500

£500

£5000

£67per week for a year

or

£33.5per week over 2 years

£10,200pa (£196.15pw)

34.31% increase over year

17.16% increase if spread over 2 years

£175,000 property purchase price

 

 

£1750

£1000

£6250

£86.5per week for a year

or

£43.2per week over 2 years

£11,900pa (£228.85pw)

37.82% increase over year

18.91% increase if spread over 2 years

£200,000 property purchase price

 

 

£2,000

£1,500

£7,500

£105per week for a year

or

£53per week over 2 years

£13,600pa (£261.54pw)

40.44% increase over year

20.22% increase if spread over 2 years

£225,000 property purchase price

 

 

£2250

£2000

£8750

£125per week for a year

or

£62.5per week over 2 years

£15,300pa (£294.23pw)

42.48% increase over year

21.24% increase if spread over 2 years

£250,001 property purchase price

 

 

£7500

£2500

£10000

£48per week for a year

or

£24per week over 2 years

£17,000pa (£326.92pw)

14.71% increase over a year

7.35% increase if spread over 2 years

£275,000 property purchase price

 

 

£8250

£3750

£12000

£72per week for a year

or

£36per week over 2 years

£18,700pa (£359.62pw)

20% increase over year

10% increase if spread over 2 years

£300,000 property purchase price

 

 

£9000

£5000

£14000

£96per week for a year

or

£48per week over 2 years

£20,400pa (£392.31pw)

24.51% increase over year

12.25% increase if spread over 2 years

£325,000 property purchase price

 

 

£9750

£6250

£16000

£120per week for a year

or

£60per week over 2 years

£22,100pa (£425pw) | 28.28% increase over year | 14.14% increase if spread over 2 years

£350,000 property purchase price

 

 

£10500

£7500

£18000

£144per week for a year

or

£72per week over 2 years

£23,800pa (£457.69pw) | 31.51% increase over year | 15.76% increase if spread over 2 years

£400,000 property purchase price

 

 

£12000

£10000

£22000

£192per week for a year

or

£96per week over 2 years

£27,200pa (£523.08pw)

36.76% increase over year

18.38% increase if spread over 2 years

£450,000 property purchase price

 

 

£13500

£12500

£26000

£240per week for a year

or

£120per week over 2 years

£30,600pa (£588.46pw) | 40.85% increase over year | 20.42% increase if spread over 2 years

£500,001 property purchase price

 

 

£20,000

£15,000

£30000

£192per week for a year

or

£96per week over 2 years

£34,000pa (£653.85pw)

29.41% increase over year

14.71% increase if spread over 2 years

£1,000,001 property purchase price

 

 

£50000

£43750

£73750

£456per week for a year

or

£228per week over 2 years

or £192per week over 3 years

£68,000pa (£1307.69pw)

34.93% increase over year

17.46% increase if spread over 2 years

14.7% increase if spread over 3 years

 

The simple message to investors is: DO NOT PROCRASTINATE !!!

 

These last 18 months are perfect proof of that and those that have delayed their purchases in this period are now not making as much as those that have NOT procrastinated and that HAVE reacted and acquired discounted property deals from Earnest Knight

Leverage our time and research to your own advantage and continue on your road to building up more assets and more potential residual income

 

CALL Earnest Knight NOW 0208 6109 472 or email enquiries@earnestknight.com

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

 

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 26 Feb 2016 00:00:00 GMT <![CDATA[Get ready for the sub ONE PER CENT mortgage: Borrowing cost set to fall]]> https://www.earnestknight.com/7ways2.html/Get_ready_for_the_sub_ONE_PER_CENT_mortgage_Borrowing_cost_set_to_fall/Blog61 https://www.earnestknight.com/7ways2.html/Get_ready_for_the_sub_ONE_PER_CENT_mortgage_Borrowing_cost_set_to_fall/Blog61 In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you BREAKING NEWS from the UK Property Market Article: Get ready for the sub ONE PER C In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you

BREAKING NEWS from the UK Property Market


 

Article:           “Get ready for the sub ONE PER CENT mortgage: Borrowing set to fall to lowest ever levels thanks to bank price war and rock-bottom interest rates”

 


Published:       Thursday, February 25th 2016

Source:           MAIL ONLINE


 

  • Chris Pilling, head of Yorkshire Building Society, predicted drop yesterday
  • Expects most popular two-year fixed rate mortgages to go below 1 per cent
  • Industry insiders expect price war between lenders to result drop in the rate
  • Bank Of England's record low 0.5 per cent interest rates could fall further

 

Mortgage rates on the most popular deals could be about to plunge below 1 per cent for the first time ever, one of Britain’s biggest lenders said yesterday.

Industry insiders are predicting rock-bottom borrowing costs due to a price war between lenders and permanently low interest rates.

It could see buyers who take out a £150,000 loan paying as little as £564 a month.

Five year fixed-rate mortgages have already edged below the 2 per cent mark, with HSBC launching a 1.99 per cent deal last month. Monthly repayments on a £150,000 loan would be £635.

The latest price war is partly down to Bank of England interest rates, which have remained stubbornly immovable at 0.5 per cent for almost seven years.

On Tuesday, the bank’s governor Mark Carney said they could yet fall even further.

 


 

Earnest Knight Consulting long term analysis:

 

We are consistently following the markets and monitoring the impact of announcements related to UK economy and the news regarding the potential of Bank of England cutting the rates further is not new as the notions have been lingering for a while.

An excellent indicator for our local (UK) market has been the fact that following the raise of interest rates by the Fed in USA, the Bank of England did not decide to follow but kept rates in the UK at 0.5%.

We were slightly disappointed with the way Mr Osborn’s Budget Autumn Statement has been released to the wider public, as they have not portrayed the stamp duty increase in its proper light, in our opinion.

Recent “stress tests” conducted by the Bank of England, that is monitoring our banking system in the UK closely to protect our economy, have revealed the potential for a large number of BTL (buy to let) property owners to be under stress and duress if interest rates where to rise by 3% in a very short period of time. Thus with consultation one of the opinions is that the initial increase of 3% in the stamp duty for BTL purchases could actually be an excellent safeguard for our property market as it in fact could protect 60%+ of the current BTL (buy to let) owners. Even though it is temporarily raising the barrier to entry for this very lucrative property market in the UK, it provides for longer term protection and stability.

Thus, our outlook remains very positive for the UK property market for the medium to long term.

 


 

Dear investor,

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Do not miss the next decade of potential growth, CALL US NOW!

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 19 Feb 2016 00:00:00 GMT <![CDATA[Should 3% extra stamp duty put you off property invetment?]]> https://www.earnestknight.com/7ways2.html/Should_3_extra_stamp_duty_put_you_off_property_invetment/Blog60 https://www.earnestknight.com/7ways2.html/Should_3_extra_stamp_duty_put_you_off_property_invetment/Blog60 Should 3% extra stamp duty put you off property investment? NO not at all. Firstly, what are the alternatives? Shocks and scares (stocks and shares), Forex, ISA, savings accounts, bonds, trusts..... Should 3% extra stamp duty put you off property investment? NO not at all.

Firstly, what are the alternatives?

Shocks and scares (stocks and shares), Forex, ISA, savings accounts, bonds, trusts...... all have potential but at the same time huge volatility.

oh no

None have the bricks and mortar stability and appeal.

3% extra Stamp Duty is, on face value, a bitter pill to swallow.

However property values, since records began with Nationwide over half a century ago, have risen at an average of 8.1% a year.

Looking in a pessimistic way at investment into property for capital value growth profit, the additional 3% Stamp Duty would mean that some of the first years growth in capital value has been consumed by tax.

There is still likely some capital value profit in the first year and if the deal is structured well rental profit to add to this too. Then from the second year onwards the full property profits are received.

Recent data from two large multi branch estate and letting agents show the average UK landlord to have made returns of 12% from January 2015 to January 2016.

Their average figures show a return of £21,988 over the last 12 months, before deductions. Of this, the average capital gain contributed £13,594 while rental income made up £8,394.

We believe their average figures are not created from smart investors who profit at the point of purchase by buying at a discount from the market value. Equally they are quoting gross yields of around 5% which is significantly lower than the opportunities Earnest Knight source outside of London.

What this means is those investors that have had their desire to invest further or begin a portfolio dampened by the additional 3% should run the figures again.

EK-stamp-duty-calculator

Once they recalculate they will see that this 3% is insignificant in the grand scheme of their investment in property and the returns property provides.

The two estate agents calculations do not reflect the enhanced returns provided by an Earnest Knight below market value acquisition or the enhanced yields well in excess of the 5% they quote.

What little difference an extra 3% tax makes when you benefit from 15-30% off the value of a property!

how to profit


If after reading the above you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Do not miss the next decade of potential growth, CALL US NOW!

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 18 Jan 2016 00:00:00 GMT <![CDATA[Average prices in England and Wales up 6.6% year on year and rents up almost 4% in 2015]]> https://www.earnestknight.com/7ways2.html/Average_prices_in_England_and_Wales_up_6_6_year_on_year_and_rents_up_almost_4_in_2015/Blog59 https://www.earnestknight.com/7ways2.html/Average_prices_in_England_and_Wales_up_6_6_year_on_year_and_rents_up_almost_4_in_2015/Blog59 In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you BREAKING NEWS from the UK Property Market Article: Average prices in England and Wa In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you

BREAKING NEWS from the UK Property Market


Article:           “Average prices in England and Wales up 6.6% year on year”

Published:       Thursday, January 14th 2016

Source:           PROPERTY WIRE

 

Average house prices in England and Wales increased by 6.6% year on year to an average of £292,077, according to the latest index figures to be published.

This means that the average house prices has increased by £17,963 since December 2014 but property values in central London fell by 8.7% on average during 2015, dragged down by higher stamp duty, the index report from Your Move and Reeds Rains shows.

Where sales are concerned it was the strongest December for since 2006, with transactions up 7.1% year on year as buyers compete for fewer homes on the market.

Richard Sexton, director of e.surv chartered surveyors, believes that the highest year on year house price growth for 10 months may prompt existing home owners to move up to the next rung of the property ladder in 2016, freeing up homes at the bottom for first time buyers.

‘The rise in property prices has been propelled so far by a sinking supply of houses coming onto the market, compared with increasing enquiries from potential buyers eager to clamber aboard the property ladder,’ he said.


Article:           “Average rents in the UK increased by almost 4% in 2015”

Published:       Friday, January 15th 2015

Source:           PROPERTY WIRE

Average UK rents increased by 3.8% in 2015 despite a small seasonal dip of 0.2% in December, according to the latest index to be published.

Housing shortages across the country means that rental increases have outpaced wages in many parts and three bedroom properties have seen the fastest rent rises, according to the Landbay Rental Index.

This takes the average rent to £1,280 per month, with the highest rents found in London at £2,047, followed by the South East at £1,019 and then a big drop to the East of England at £863.

Every region has seen rents up year on year. This was led by Northern Ireland with rents up 6.7% compared to 2014, followed by the East of England up 5.6%, Scotland up 4.5%, the West Midlands up 4.4%, the South West up 4.1% and London up 4%.


Article:           “House prices have rocketed 300% in England and Wales since 1995 – analysis”

Published:       Friday, January 15th 2015

Source:           THE GUARDIAN

House prices in some parts of England and Wales have increased by almost 1,000% over the past two decades, with Oval in south London seeing the biggest price surge in that period, according to research by property firm Savills.

Analysis of Land Registry data for second-hand properties shows that across England and Wales the average house price grew by 300% between 1995 and 2015, from £66,110 to £262,847.

Only 5.5% of electoral wards had average sale prices of less than £100,000 in 2015, compared with 88% 20 years previously.


 

If after reading the above you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

Do not miss the next decade of potential growth, CALL US NOW!

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:         0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Wed, 25 Nov 2015 00:00:00 GMT <![CDATA[Stamp Duty: Save 3% Buy before April]]> https://www.earnestknight.com/7ways2.html/Stamp_Duty_Save_3_Buy_before_April/Blog58 https://www.earnestknight.com/7ways2.html/Stamp_Duty_Save_3_Buy_before_April/Blog58 Chancellors Autumn Statement : BTL Stamp Duty To Rise The recently announced legislation means an extra 3% SDLT will need to be paid on all BTL properties and second homes. This will come into for Chancellors Autumn Statement : BTL Stamp Duty To Rise

The recently announced legislation means an extra 3% SDLT will need to be paid on all BTL properties and second homes.

2016-Stamp-Duty

This will come into force in April 2016 and could cost you thousands more when buying a BTL property!

e.g. A buy-to-let purchase of £184,000 could require you to pay an extra £5,520 from April 2016.

One measure Earnest Knight investors are taking to combat this new legislation is buying quickly.

Any property purchased before April 2016 will be unaffected by the SDLT increase, so it truly does pay to buy now!


Dear investor,

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:           0800 3689 317

EMAIL:                      enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 20 Nov 2015 00:00:00 GMT <![CDATA[UK NEWS: Buy now. Property out of London set to soar 10%]]> https://www.earnestknight.com/7ways2.html/UK_NEWS_Buy_now_Property_out_of_London_set_to_soar_10/Blog57 https://www.earnestknight.com/7ways2.html/UK_NEWS_Buy_now_Property_out_of_London_set_to_soar_10/Blog57 In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you BREAKING NEWS UK Property Market From the UK National Press Buy now. Property In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you

BREAKING NEWS UK Property Market

From the UK National Press

 


Buy now. Property out of London set to soar 10%

 

The circa 70% growth seen in London since 2009 has been well documented to the point some are forecasting the capital may have started to slow back to normal growth rates.

The rest of the country has seen normal growth but the indicators are now showing these areas outside the south east and the capital to be hotting up significantly.

Hometrack’s index of house price growth in major cities has hit 9.4% and looks to be up at 10% by December.

The accelerating recorded growth in the regions outside London and the south east are now the areas investors are looking to gain the most profit from their purchases.

Glasgow is recorded to be up 8.3%, Manchester up 7% and Liverpool up 5.1% by Homtrack.

This suggests that if you are looking to invest you should gain the best possible price as soon as possible to monopolize on the current favorable market conditions.

 

Call 2028 6109 472 and discuss this today.


Dear investor,

 

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Portfolio Manager today

Information is free and can only be of benefit to you

 

CALL:                        0208 6109 472

FREEPHONE:            0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 06 Nov 2015 00:00:00 GMT <![CDATA[Utopian property conditions for profit reported]]> https://www.earnestknight.com/7ways2.html/Utopian_property_conditions_for_profit_reported/Blog56 https://www.earnestknight.com/7ways2.html/Utopian_property_conditions_for_profit_reported/Blog56 We are seeing reports of what could be a perfect property petri dish for investors to grow profits. Profits at such levels that have historically made property the popular topic it is today. We hav We are seeing reports of what could be a perfect property petri dish for investors to grow profits. Profits at such levels that have historically made property the popular topic it is today.

  • We have low, no wait, unbelievably low interest rates currently.
  • It is reported due to the global indicators there is potentially another 2 years before the base rate might begin to edge up at all.
  • Population growth adds to demand fuelling price rises.
  • Property is not being created to keep up with demand adding further fuel on the price rise fire.

All of these basic influencing factors leas to experts releasing reports that show growth in every area.

  • Savills says mainstream UK rents are likely to rise by an average of 16.5 per cent by the end of 2020 - in London, the rise will be 22.8 per cent.
  • ThisIsMoney.co.uk reported this month that city house price inflation is running at 8.4 per cent per year.
  • 8.4% is more closely in line with the 8.1% historical average annual growth since the Nationwide records began in 1952.

The smart investor know these factors to be ideal for enhancing returns.

The educated smart investor will now be discussing how to maximise returns and protect them for long term income and success.

Call now to learn more about how you can benefit from the returns.

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Portfolio Manager today

Information is free and can only be of benefit to you

 

CALL:                     0208 6109 472

FREEPHONE:         0800 3689 317

EMAIL:                    enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Wed, 21 Oct 2015 00:00:00 GMT <![CDATA[Negative inflation while property profits reported to be nearly 10%]]> https://www.earnestknight.com/7ways2.html/Negative_inflation_while_property_profits_reported_to_be_nearly_10/Blog55 https://www.earnestknight.com/7ways2.html/Negative_inflation_while_property_profits_reported_to_be_nearly_10/Blog55 Dear investor, You may have noticed despite inflation dropping off those investing in property are seeing returns go from strength to strength. Average rents are up 10.5% since last year. (Hom Dear investor,

You may have noticed despite inflation dropping off those investing in property are seeing returns go from strength to strength.

  • Average rents are up 10.5% since last year.                              (Homelet Sept to Sept)
  • Average prices are also up 9.89% since the start of 2014.    (Nationwide house price data)
  • Average yields are at 6.08%.

Savings accounts are still providing limited returns, maxing out around 3% and often with capital limits on high rates.

Pensions were curbed on projecting figures from the 5%, 7%, and 9% that they had failed to make realistic. In 2014 they were forced to use 2%, 5% and 8% for projections. The pension middle ground for projections will now be 5%.

Where is your money working hardest?

If saving and pensions are being projected with 5% averages, then rental yields at 6.08% should be very appealing.

When you add the 8.1% capital average rise (Nationwide average since 1952) on top of the monthly rental income you can see where property investors are profiting well in advance of those using other savings vehicles.

Earnest Knight can look to help you double or triple your first year returns.

How much do you want?

Discuss this today with a consultant at Earnest Knight 0208 6109 472

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Portfolio Manager today

Information is free and can only be of benefit to you

 

CALL:                        0208 6109 472

FREEPHONE:         0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Fri, 25 Sep 2015 00:00:00 GMT <![CDATA[Update to Section 21 all Landlords need to know]]> https://www.earnestknight.com/7ways2.html/Update_to_Section_21_all_Landlords_need_to_know/Blog54 https://www.earnestknight.com/7ways2.html/Update_to_Section_21_all_Landlords_need_to_know/Blog54 The new guidance and legislation for Section 21 notices has been released, and will come into force on 1st October 2015. There are lots of new details that all landlords and property investors must kn The new guidance and legislation for Section 21 notices has been released, and will come into force on 1st October 2015. There are lots of new details that all landlords and property investors must know and comply with to ensure they are acting legally when giving notice, and these changes mean that all Landlords and Property Investors will need to keep a very accurate paper trail for all of their properties and tenancies. The main points are as follows:

 

  • You must provide tenants with an EPC at the start of a tenancy
  • You must provide tenants with a Gas Safety certificate within 28 days of the check being carried out
  • You must provide tenants with the Government ‘How To Rent’ Guide
  • You must use the Government supplied Section 21 form

 

Without the above, a Section 21 notice will be non-enforceable. This will be law from the 1st October 2015, so all Landlords and Property Investors must make sure that they are 100% compliant, otherwise they could be unable to gain possession of their property.

 

Other notes that need to be taken into consideration are:

 

  • If a tenant has complained to the local authority about disrepair, you cannot rely on a Section 21 until it has been decided whether to issue a Relevant Notice
  • A Section 21 cannot be issued for at least 6 months after a Relevant Notice has been given to the Landlord by the local authority

 

We could also see more legislation come into force on the 1st October, demanding that all rented properties be required to have smoke and carbon monoxide alarms fitted, no exception. There will be no grace period, and any Landlord or Property Investor failing to company could be fined up to £5,000.

 

Below are the links to the information guides, legislation and booklets that you will need from the 1st October 2015. A guide to the smoke and carbon monoxide alarms is also below.

 

Section 21 Guidance

( http://www.legislation.gov.uk/uksi/2015/1646/pdfs/uksiem_20151646_en.pdf )

 

Section 21 Legislation and Form 6A

( http://www.legislation.gov.uk/uksi/2015/1646/pdfs/uksi_20151646_en.pdf )

 

‘How To Rent’ Guide

( https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/429420/HowToRent210515-digitalprint_May_2015.pdf )

 

The Smoke and Carbon Monoxide Alarm Regulations 2015

( https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/462026/Explan_book_Landlords.pdf )

 

 

----------------------------------------------------------------------------------------------------------------

 

Read more current news stories here:         http://www.earnestknight.com/marketintelligence.html        

 

----------------------------------------------------------------------------------------------------------------

 

Dear investor,

 

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time or you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

 

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

 

Information is free and can only be of benefit to you

 

CALL:                        0208 6109 472

 

FREEPHONE:             0800 3689 317

 

EMAIL:                       enquiries@earnestknight.com

 

 

]]>
bran@earnestknight.com (Branislav Opancina)
Thu, 17 Sep 2015 00:00:00 GMT <![CDATA[Stock famine still pushing up prices : London risen 12.8 per cent]]> https://www.earnestknight.com/7ways2.html/Stock_famine_still_pushing_up_prices__London_risen_12_8_per_cent/Blog53 https://www.earnestknight.com/7ways2.html/Stock_famine_still_pushing_up_prices__London_risen_12_8_per_cent/Blog53 BREAKING NEWS from the UK Property Market Article: Stock famine still pushing up prices : London risen 12.8 per cent Published: Thursday, September 17th 2015 Source: Home Data from property BREAKING NEWS from the UK Property Market


Article:           “Stock famine still pushing up prices : London risen 12.8 per cent”

Published:       Thursday, September 17th 2015

Source:           Home


 

Data from property website Home says the biggest factor in pushing up prices continues to be a relative shortage of stock. It claims August recorded the lowest number of properties entering the market for that month since the onset of the financial crisis in 2008.

The average London home has risen 12.8 per cent or roughly £60,000 in the past year.

However, the south east has shown growing strength in the past six months, with prices rising by 6.1 per cent (actually faster than London during that same period).

Overall, Home says the mix-adjusted average asking price for England and Wales is 6.5 per cent higher now than it was in September 2014, with further rises expected before Christmas. 

Source: https://www.estateagenttoday.co.uk/breaking-news/2015/9/stock-famine-still-pushing-up-prices



Dear investor,

 

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:         0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Wed, 16 Sep 2015 00:00:00 GMT <![CDATA[10.5% growth in the last year]]> https://www.earnestknight.com/7ways2.html/10_5_growth_in_the_last_year/Blog52 https://www.earnestknight.com/7ways2.html/10_5_growth_in_the_last_year/Blog52 BREAKING NEWS from the UK Property Market Article: 10.5% growth in the last year Published: Wednesday, September 16th 2015 Source: Homelet Rents, according to data from Homelet, are a whopping BREAKING NEWS from the UK Property Market


Article:           “10.5% growth in the last year”

Published:       Wednesday, September 16th 2015

Source:           Homelet


Rents, according to data from Homelet, are a whopping 10.5% higher than a year ago.

According to the latest figures from the HomeLet Rental Index, the average tenancy signed during the three months to August 2015 charged a rent of £992 per month. In Greater London the figure stood at £1,558 a month.

Despite data showing a slight slowdown in nationwide average rental rises overall, the average UK rent on new tenancies increased 1.6% in the three months to August 2015. This is a small and arguably seasonal slip when compared to an increase of 2.2% for the three months to July and June 2015.

The rental growth adds all the support a landlord needs to ensure their portfolio performs well. It also adds extra interest rate protection into the future.

The seesaw manner of house price rises and rental price rises could suggest that the gentle slowing of rises in rent may allow the capital value rises to leaf forward once again.

The 10.5% rise in rentals across the UK is a welcomed increase in rental returns. Many investors are using the increase in rental to release equity to fund further acquisitions given the advantageous yields and interest rates available in this rising market.

Source: https://www.landlordtoday.co.uk/breaking-news/2015/9/homelet-rents-10-5-up-on-last-year


 

Dear investor,

 

 

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:         0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Thu, 10 Sep 2015 00:00:00 GMT <![CDATA[Sarah Willingham: 'We get an unbelievable return from our property investments']]> https://www.earnestknight.com/7ways2.html/Sarah_Willingham__We_get_an_unbelievable_return_from_our_property_investments/Blog51 https://www.earnestknight.com/7ways2.html/Sarah_Willingham__We_get_an_unbelievable_return_from_our_property_investments/Blog51 BREAKING NEWS from the UK Property Market Article: Sarah Willingham: 'We get an unbelievable return from our property investments' Published: Sunday, September 6th 2015 Source: THE TELE BREAKING NEWS from the UK Property Market

 


Article:           “Sarah Willingham: 'We get an unbelievable return from our property investments'”

Published:       Sunday, September 6th 2015

Source:           THE TELEGRAPH

Excerpts we liked:

“Fame and Fortune: Dragons’ Den star and entrepreneur Sarah Willingham made her name with restaurant chain Bombay Bicycle Club, but these days, as she explains, she now takes fewer risks with her investments”

“Most lucrative work?

Our property investments – we get an unbelievable return.

Neutrahealth was a very good deal, possibly not the most lucrative, but we did very well out of it. When it was sold, we bought a flat in Primrose Hill from the profits.”

“What’s been the most difficult lesson you’ve learnt about money or business?

It’s all about people. You can have the best product in the world but if you have the wrong people in the business then it’s an uphill struggle. I have tried throughout my career to work with passionate and motivated people, who are self-propelled and who have magic in their field that I don’t have…..”

“Do you have a personal pension or long-term financial strategy?

I have a small pension. My property portfolio and business investments are the main focus.”

 


 

 

Dear investor,

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 24 Aug 2015 00:00:00 GMT <![CDATA[Strongest August market since credit crunch as sellers stay away]]> https://www.earnestknight.com/7ways2.html/Strongest_August_market_since_credit_crunch_as_sellers_stay_away/Blog50 https://www.earnestknight.com/7ways2.html/Strongest_August_market_since_credit_crunch_as_sellers_stay_away/Blog50 Article: Strongest August market since credit crunch as sellers stay away Published: Monday, August 17th 2015 Source: RIGHTMOVE Seasonal August price fall more muted than usual, with price of p Article:           “Strongest August market since credit crunch as sellers stay away”

Published:       Monday, August 17th 2015

Source:           RIGHTMOVE

 

Seasonal August price fall more muted than usual, with price of property coming to market down by just 0.8% (-£2,258) compared to post-credit-crunch average August fall of 1.5%

Shortage of new sellers (down 8% on same period in 2014) and active buyers help to minimise usual summer holiday price falls, and result in least generous August price discount from sellers since 2007

Rightmove research establishes stay-away sellers’ top three reasons for not yet putting their move into motion:

1: They cannot find anywhere they want to buy

2: The costs of moving

3: They cannot find a property they can afford

The strongest August price performance since 2007 demonstrates the continuing supply/demand imbalance in the property market. The price of property coming to market is down by just 0.8%, bucking the eight-year post-credit-crunch trend of larger summer holiday price decreases, with the average August price change between 2008 and 2014 being a fall of 1.5%.

Miles Shipside, Rightmove director and housing market analyst comments:

“While new seller asking prices have been muted by the traditional summer holiday property slowdown, the underlying shortage of property coming to market compared to buyer demand has helped to deliver the strongest August price performance since before the credit crunch. Buyers can normally pick up some bargains in August as sellers who are marketing their homes when they should be holidaying often have a pressing need to sell and mark their prices down pretty aggressively. At 0.8% down on the previous month, this is the least generous that sellers have had to be for eight years and a clear sign of upwards price pressure in the pipeline.”

Full story here:

http://www.rightmove.co.uk/news/articles/property-news/strongest-august-market-since-credit-crunch-as-sellers-stay-away


082015-RM-HPI

Dear investor,

 

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

 

Information is free and can only be of benefit to you

CALL:                        0208 6109 472

FREEPHONE:             0800 3689 317

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 03 Aug 2015 00:00:00 GMT <![CDATA[Housing demand in UK reaches 11 year high]]> https://www.earnestknight.com/7ways2.html/Housing_demand_in_UK_reaches_11_year_high/Blog49 https://www.earnestknight.com/7ways2.html/Housing_demand_in_UK_reaches_11_year_high/Blog49 In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you BREAKING NEWS from the UK Property Market -------------------------------------- In our continuous bid to keep all of the investors and consultants at the forefront of the UK market we bring you

 

BREAKING NEWS from the UK Property Market

 

----------------------------------------------------------------------------------------------------------------

Article:           “Housing demand in UK reaches 11 year high”

Published:       Monday, July 27th 2015

Source:           PROPERTY WIRE : http://www.propertywire.com/news/europe/uk-property-demand-sales-2015072710792.html

 

Excerpt:

Housing demand in the UK has reached an 11 year high with the number of housing hunters registering with estate agents reaching almost 430 per branch at a time when fewer homes go on sale.

 

The number of house hunters registered per branch of members of the National Association of Estate Agents reached 439 in June, the highest since August 2004, and sales to first time buyers fell.

 

This is 15% more than in May when 383 house hunters were registered per branch and it comes at a time when supply of housing stock fell from 46 in May to just 44 houses available per branch, widening the growing gap between supply and demand.

 

‘What we’re seeing is a market that lulled over the general election period, coming back to life in full force,’ said Mark Hayward, managing director of the NAEA.

 

‘Buyers are feeling more confident and those who put their plans on hold over the election and political aftermath have kicked off their hunt, causing this massive jump in demand. There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates. But the fact that demand is at an eleven year high without the housing stock to fuel it, is bad news for the market,’ he added."

 

 

----------------------------------------------------------------------------------------------------------------

Article:           “UK housing: First-time buyer prices continue to soar as estate agents push for more supply”

Published:       Monday, July 27th 2015

Source:           INTERNATIONAL BUSINESS TIMES : http://www.ibtimes.co.uk/uk-housing-first-time-buyer-prices-continue-soar-estate-agents-push-more-supply-1512776

 

Excerpt:

First-time buyer house prices jumped by 7.6% to £166,393 in June compared to the same month in 2014, a study by estate agent Haart found.

 

The continuing surge of house prices have caused estate agents to call on the government to encourage an increase in supply.

 

Lobby groups have long called on the government to impose stricter regulations on landlords and agents to cap the house prices as demand in the UK is through the roof. Mortgage lending jumped by 29% to £20bn in June but first-time mortgage applications fell by 1.2%.

 

First-time buyers are most affected by the soaring house prices as currently, typical "aspiring homemakers", the generation of 26 to 35-year-olds, are unlikely to afford a home to start their family and even rent prices are often too high for young professionals."

 

 

----------------------------------------------------------------------------------------------------------------

 

Read more current news stories here:         http://www.earnestknight.com/marketintelligence.html        

 

----------------------------------------------------------------------------------------------------------------

 

 

 

Dear investor,

 

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

 

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

 

Information is free and can only be of benefit to you

 

CALL:                        0208 6109 472

 

FREEPHONE:         0800 3689 317

 

EMAIL:                       enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 20 Jul 2015 00:00:00 GMT <![CDATA[The five top UK cities for buy-to-let yields]]> https://www.earnestknight.com/7ways2.html/The_five_top_UK_cities_for_buy_to_let_yields/Blog48 https://www.earnestknight.com/7ways2.html/The_five_top_UK_cities_for_buy_to_let_yields/Blog48 BREAKING NEWS from the UK Property Market ---------------------------------------------------------------------------------------------------------------- Article: Glasgow, Manchester, Birmingham, BREAKING NEWS from the UK Property Market

 

----------------------------------------------------------------------------------------------------------------

Article:           “Glasgow, Manchester, Birmingham, Sheffield and Liverpool: The five top UK cities for buy-to-let yields - and we reveal the best postcodes within”

Published:       Thursday, July 16th 2015

Source:           THIS IS MONEY

 

Excerpt:

London may have been claiming the house price headlines in recent years, but rather than focus their attention on the capital, property investors should turn their attention to Glasgow, Manchester, Birmingham, Sheffield and Liverpool.

 

That is the conclusion of research that compares rental returns to property prices, giving the locations that deliver the best yields on property. The LendInvest Buy-to-Let Index uses rents and asking prices from property portal Zoopla to identify the highest yields.

 

In a list of the top 20 buy-to-let hotspots for January 2015, Glasgow postcodes featured four times, as did Liverpool postcodes, Sheffield’s featured three times and Birmingham and Manchester postcodes twice.

 

TOP UK AREAS FOR BUY-TO-LET BY YIELD Source: LendInvest / Zoopla

Postcode

Total yield

City

Areas covered

G2

8.90%

Glasgow

Blythsworth Hill

L7

8.80%

Liverpool

City Centre, Edge Hill, Fairfield, Kensington

EC3

8.70%

London

St Mary Axe, Aldgate, Leadenhall, Lloyd's of London, Fenchurch Street, Tower Hill, Tower of London Tower Hamlets, Monument, Billingsgate, Royal Exchange and Lombard Street.

G51

8.50%

Glasgow

Govan, Ibrox, Kinning Park

M13

8.30%

Manchester

Ardwick, Longsight, Chorlton-on-Medlock

G21

8.20%

Glasgow

Balornock, Barmulloch, Cowlairs, Royston, Springburn, Sighthill

B7

8.20%

Birmingham

Nechells

S14

8.00%

Sheffield

Gleadless Valley

L6

8.00%

Liverpool

Anfield, City Centre, Everton, Fairfield, Kensington, Tuebrook

S2

7.90%

Sheffield

Arbourthorne, Heeley, Highfield, manor, Norfolk Park, Wybourn, park Hill

L4

7.80%

Liverpool

Anfield, Kirkdale, Walton

M38

7.80%

Manchester

Little Hulton

G81

7.80%

Glasgow

Clydebank

ML7

7.80%

Motherwell

Shotts, Allanton, Eastfield, Harthill, Hartwood, Salsburgh

B21

7.80%

Birmingham

Handsworth

S4

7.70%

Sheffield

Grimesthorpe, Pitsmoor

L5

7.70%

Liverpool

Anfield, Everton, Kirkdale, Vauxhall

ML4

7.70%

Motherwell

Bellshill, Orbiston, Mossend

SR5

7.70%

Sunderland

Carley Hill, Castletown, Downhill, Fulwell, Hylton Castle, Hylton Red House, Marley Pots, Monkwearmouth, Sheepfolds, Southwick, Town End Farm, Witherwack

FK6

7.60%

Falkirk

Denny, Dunipace, Fankerton, Head of Muir, Stoneywood

"

 

Read the full artical : http://www.thisismoney.co.uk/money/buytolet/article-3160911/The-five-UK-cities-best-postcodes-buy-let-yields.html

Dear investor,

 

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

 

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

 

Information is free and can only be of benefit to you

 

CALL:                        0208 6109 472

 

FREEPHONE:         0800 3689 317

 

EMAIL:                       enquiries@earnestknight.com

 

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 13 Jul 2015 00:00:00 GMT <![CDATA[Property market overview July 2015 ]]> https://www.earnestknight.com/7ways2.html/Property_market_overview_July_2015/Blog47 https://www.earnestknight.com/7ways2.html/Property_market_overview_July_2015/Blog47 There is a wealth of excellent news throughout the media about the sustained growth of our key market: the UK property market. These new news roundups have caught us a bit by surprise as well and are There is a wealth of excellent news throughout the media about the sustained growth of our key market: the UK property market. These new news roundups have caught us a bit by surprise as well and are showing the market level above the levels we have predicted late last year for the growth, so we must say that we are pleasantly surprised with the activity and direction of our core market.

The Halifax's report listing June's house price rise was described as 'a bit of a stunner' by Howard Archer, chief economist at IHS Global Insight.

According to The Guardian and their article published Wednesday 8th July 2015, one of the biggest UK property lenders Halifax has reported that the average UK house price has broken the £200,000 barrier in June 2015.1

 

“This is the fourth monthly rise in a row, according to the lender, and contributed to a quarterly rise in the three months to June of 3.3%. It resulted in an average UK property price of £200,280.

 

This is the first time the average has exceeded £200,000 since the Halifax started recording prices in 1983.

 

The sudden sharp June increase has resulted in a marked increase in the annual rate of inflation to 9.6% compared to 8.6% just a month earlier. It puts annual house growth back up to where it was in September 2014 and has caused some economists to rethink their forecasts.

 

“Our current forecast is for house prices to rise by 6% over 2015, but the Halifax data at least suggests that this may be too conservative a projection,” said Howard Archer, chief economist at IHS Global Insight, who described the lender’s latest report as “a bit of a stunner”. " 1

 

Another large UK newspaper The Independent has also reported on Saturday July 11th 2015 that Brittain now has more “property millionaires” than ever before. 2

 

“Research by property company Zoopla found that the number of British homeowners with a property worth £1 million or more now stands at 524,306. This has increased by 8.3 per cent in the last year as property prices rise.” 2

 

But what we have seen as one of the most important news articles in July and what leads us to believe in continuous growth in property prices in our core UK property market, is the news coming directly from RICS (Royal Institute of Chartered Surveyors). In their press release on Thursday 9th July 2015 they said:

 

“House price inflation reaches 11-month high and supply reaches data series low.

 

•           House price inflation rose to an 11-month high in June but supply shortfall continues to exert drag on activity

•           House sales across Scotland and the wider UK expected to increase in the next three months. Buyer demand increases in all parts of the UK except the South East

 

House price growth increased again in Scotland during June, pointing to renewed acceleration in house price inflation during the second half of the year, according to the latest RICS UK Residential Market Survey.

Demand for houses also edged upwards for the second successive month, with a net balance of 36% more chartered surveyors receiving new buyer enquiries in June." 3

 

As the basis of economics suggests, whenever there is a dis-balance between supply and demand in the favour of demand, wise property investors continue to benefit. We will continue our efforts and keep monitoring the markets, looking for distressed opportunities for purchase for ourselves and our clients.

 

 

----------------------------------------------------------------------------------------------------------------

 

Read more current news stories here:         http://www.earnestknight.com/marketintelligence.html        

 

----------------------------------------------------------------------------------------------------------------

 

 

 

Dear investor,

 

If after reading the above article you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

 

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today

 

Information is free and can only be of benefit to you

 

CALL:                        0208 6109 472

 

FREEPHONE:         0800 3689 317

 

EMAIL:                       enquiries@earnestknight.com

 

 

 

News article links referenced in this post:

 

1 THE GUARDIAN: “Average UK property price breaks £200,000 barrier, says Halifax”. Published Wednesday, 8th July 2015.

Read the full story here:

http://www.theguardian.com/money/2015/jul/08/average-uk-property-house-price-breaks-200000-halifax

 

 2 THE INDEPENDENT: “Britain has more 'property millionaires' than ever before”. Published Saturday, 11th July 2015.

Read the full story here:

http://www.independent.co.uk/news/uk/home-news/britain-has-more-property-millionaires-than-ever-before-10382680.html  

 

3 RICS: “Shortage of instructions in Scottish buyer and rental markets fuel higher prices”. Published Thursday, 9th July 2015.

Read the full story here:

http://www.rics.org/uk/news/news-insight/press-releases/shortage-of-instructions-in-scottish-buyer-and-rental-markets-fuel-higher-prices-/  

 

]]>
bran@earnestknight.com (Branislav Opancina)
Mon, 06 Jul 2015 00:00:00 GMT <![CDATA[£112bn in pockets of British landlords]]> https://www.earnestknight.com/7ways2.html/112bn_in_pockets_of_British_landlords/Blog46 https://www.earnestknight.com/7ways2.html/112bn_in_pockets_of_British_landlords/Blog46 BREAKING NEWS from the UK Property Market Article: Booming buy-to-let puts 112bn in pockets of British landlords Published: Thursday, May 28th 2015 Source: THE GUARDIAN Excerpt: Rental income BREAKING NEWS from the UK Property Market


Article:           “Booming buy-to-let puts £112bn in pockets of British landlords”

Published:       Thursday, May 28th 2015

Source:           THE GUARDIAN

 

Excerpt:

Rental income is worth almost £4bn a month nationwide as the sector’s popularity for investment continues to increase, locking out first-time buyers.

 

British landlords earned £112bn from capital gains and rental income last year, in the latest example of the booming buy-to-let market.

 

A report by mortgage lender Kent Reliance shows landlords made £67.2bn in capital gains, and £44.3bn from rent in the year to March 2015. The combined total represented an increase of £5.8bn on the same period a year ago.

 

New rules on pensions in force since April 2015 are likely to see more money come in to the sector. They give retirees freedom to spend their retirement pot as they wish, with some savers expected to buy property in the hope that the investment will provide income from rental payments.

 

Kent Reliance forecasts that by 2020 the total number of rented homes will have soared from 4.8m currently to 5.5m, representing about one in five households."


Article:           “The buy-to-let years: How ordinary people have turned every £1,000 invested in 1996 into more than £13,000 today”

Published:       Tuesday, April 28th 2015

Source:           THIS IS MONEY

 

Excerpt:

Landlords who 'gear' portfolios with extra borrowing have done the best

Benevolent conditions since introduction of landlord mortgages have helped returns soar

 

Long-standing buy-to-let landlords have seen a typical return on their money of 1,200 per cent in 18 years - with those who 'geared' their investments with mortgage borrowing walking away with the most.

A combination of cheap mortgages, soaring house prices and a market that has advantaged equity-rich landlords versus first-time buyers has seen the returns on rental properties outstrip most alternative asset classes, according to a study of the sector.

The startling returns pocketed by landlords who invested in their properties when the first dedicated buy-to-let mortgages emerged in 1996 have been revealed in research by lender Paragon.

 

The study, published today by former economist Rob Thomas, found that landlord returns outstripped the earnings from investments in cash, stocks and shares and commercial property. In the same time-frame, commercial property investments turned £1 into £4.49The analysis shows every £1,000 invested in an average buy-to-let property in the final quarter of 1996 would have been worth £13,048 by the final quarter of 2013.

Over the same period you would have got 7.9 per cent from commercial property, 6.8 per cent in shares, 6.5 per cent in bonds and 4 per cent in cash."

 


Article:           “Buy-to-let returns beat all other mainstream investments”

Published:       Saturday, April 11th 2015

Source:           THE TELEGRAPH

 

Excerpt:

Every £1 poured into buy-to-let in 1996 is now worth £15 – outperforming cash, bonds and shares over the same period, a new market study suggests.

 

Buy-to-let investments have outperformed all major asset classes over the past 18 years, according to a study of the sector.

As well as reflecting property price growth over the period, the data highlights the effect of borrowing - or "gearing" - which has hugely magnified total returns.

Every £1 invested in buy-to-let is now worth £14.90, if investors put down a deposit of 25pc and borrowed the rest via buy-to-let mortgages. These specialist loans first became available in 1996, the point from which performance is calculated.

This has produced net annual returns 16.2pc over the past 18 years, compared with 6.5pc if the same amount was put into the stock market.

Cash buyers who poured money into buy-to-let 18 years ago have now turned £1 into £5.07 – a net annual return of 9.4pc.

The study, published today by former economist Rob Thomas, found that landlord returns outstripped the earnings from investments in cash, stocks and shares and commercial property. In the same time-frame, commercial property investments turned £1 into £4.49. "


 

 

If after reading the above articles you are one of those savvy investors that want to make the most of the historically safe and profitable UK property market but maybe because you are too busy at your own work and cannot find the time you think it’s not for you just now, do not worry:

This is where Earnest Knight Consulting excels and specializes in helping investors with thorough due diligence and selection process we implement before we commit to any deal.

This in turn helps our investors not only on the profitability side, but saves tremendous amounts of time and money in research for our clients and is one of the reasons why we are highly praised.

 

 

An informed investor is a successful investor!

For the current research results and the best choice of property investments, as selected by property buyers, in the UK market do not hesitate to contact your Earnest Knight Consultant today.

 

Information is free and can only be of benefit to you.

 

CALL:                        0208 6109 472

 

FREEPHONE:             0800 3689 317

 

EMAIL:                      enquiries@earnestknight.com

]]>
charles@earnestknight.com (Charles Brittain)
Mon, 15 Jun 2015 00:00:00 GMT <![CDATA[Landlord's £1,000 extra and 25% growth]]> https://www.earnestknight.com/7ways2.html/Landlord_s_1_000_extra_and_25_growth/Blog45 https://www.earnestknight.com/7ways2.html/Landlord_s_1_000_extra_and_25_growth/Blog45 BREAKING NEWS from the UK Property Market Article: Majority of UK tenants face higher rents at end of tenancy agreement, it is claimed Published: Wednesday, June 10th 2015 Source: PROPERTY WIRE

BREAKING NEWS from the UK Property Market


Article:           “Majority of UK tenants face higher rents at end of tenancy agreement, it is claimed”

Published:       Wednesday, June 10th 2015

Source:           PROPERTY WIRE

 

Excerpt:

Almost two thirds, 60%, of UK tenants have seen their rent increase on their current property at the end of each tenancy agreement, new research has found.

And many are forced to pay additional fees, averaging over £100, to letting agents to renew their contracts, according to a study by mortgage and loans provider Ocean Finance.

 

Landlords increase rent by an average £84 a month, or £1,008 a year, at the end of each tenancy agreement, the figures show. On top of that, 13% of renters are also hit by charges from letting agents of £117 on average for renewing their tenancies.

 

The study shows that over half of tenants stay in the same house for five years or more, which could see them paying almost £600 in letting agents’ fees to continue renting their home."

 

Source:           PROPERTY WIRE        http://www.propertywire.com/news/europe/uk-tenants-rent-rises-2015061010610.html        

 


BREAKING NEWS from the UK Property Market


 

Article:           “UK house prices 'will rise 25% in next five years'”

 

Published:       Thursday, June 11th 2015

Excerpt:

UK house prices are forecast to rise by 25% over the next five years and become “ever more unaffordable”, largely because of an acute shortage of homes for sale, a leading property body has warned.

 

The Royal Institution of Chartered Surveyors (Rics) said the supply of homes for sale – as measured by the average number on a chartered surveyor estate agent’s books – had fallen to its lowest level since records began in January 1978.

 

It added that an anticipated post-general election “supply bounce” had failed to materialise, with the north-west and London seeing the sharpest drop in instructions compared with April.

 

Several economists have already suggested that prices will start to rise again now that a majority Conservative government is in place. Earlier this month, Steven Bell, chief economist at City fund manager F&C Investments, said boom conditions had returned to the housing market."

 

Source:           GUARDIAN       http://www.theguardian.com/money/2015/jun/11/uk-house-prices-rise-quarter-five-years       

 

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charles@earnestknight.com (Charles Brittain)
Fri, 15 May 2015 00:00:00 GMT <![CDATA[Substantial increases are not only seen in London]]> https://www.earnestknight.com/7ways2.html/Substantial_increases_are_not_only_seen_in_London/Blog44 https://www.earnestknight.com/7ways2.html/Substantial_increases_are_not_only_seen_in_London/Blog44 After a year of rents in London rising at over twice the rate of the UK average, growth rates have now converged, representing a slowdown in the growth of rents in London and an acceleration elsewhere After a year of rents in London rising at over twice the rate of the UK average, growth rates have now converged, representing a slowdown in the growth of rents in London and an acceleration elsewhere in the UK according to HomeLet.

The index for the three months to April 2015 demonstrates steady growth in rent prices across the UK, with 11 out of 12 UK regions recording price rises. The figures show that the average rent on a tenancy signed in the UK during the three months to April 2015 was £916, compared to £902 last month and £833 for the same period a year ago.

In Greater London, the average rent now stands at £1,436 for the three months to April 2015, compared to £1,427 last month and £1,336 for the same period a year ago.

The notable point for investors planning their portfolio growth at this exciting time is the financial protection and benefits of hedging with investment outside of London to protect the capital they have tied up in the city that has lower than average yields.

The vast trenches of equity stuck in low yielding property in London can be protected against market influences with high yield and now improved growth in the areas outside the capital city to boost profits while adding security to the portfolio.

 

Call 0208 6109 472 to discuss your portfolio strategy with Earnest Knight today.

 

Or Click here to schedule a call back at a convenient time

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charles@earnestknight.com (Charles Brittain)
Mon, 11 May 2015 00:00:00 GMT <![CDATA[Post Election guide for Property Investors large and small]]> https://www.earnestknight.com/7ways2.html/Post_Election_guide_for_Property_Investors_large_and_small/Blog43 https://www.earnestknight.com/7ways2.html/Post_Election_guide_for_Property_Investors_large_and_small/Blog43 Property Investors Rejoice! We can all now concentrate on the policies that the majority winning party pitched their election campaign: the extension of Right to Buy to 1.3m hous Property Investors Rejoice!

conservative securing future

We can all now concentrate on the policies that the majority winning party pitched their election campaign:

  • the extension of Right to Buy to 1.3m housing association homes in England;
  • 200,000 homes to be built over the course of the next parliament for first-time buyers aged under 40, who will secure a 20 per cent discount;
  • the launch of a new Help to Buy ISA for first-time buyers to help them get a subsidised deposit for a house;
  • the creation of a £1 billion brownfield regeneration fund to unlock sites for 400,000 homes, which may involve identification of public sector sites for building.
conservative carrying houses

These are all market sustaining policies that can add security to the long term sustainable profits made by private landlords.

The demand for property is still out growing the proposals for satisfying it, leaving a considerable shortfall to keep the market values rising across the UK. Take one sector example, the social housing demand for rental property is vastly outweighing the supply. It is reported by the government that over 1.5 million households on waiting lists for social housing. The house building that is due to commence now is still not going to come halfway to satisfy the demand, which is a great thing for maintaining prices on an upward trend for investors.

The opposite end of the pricing spectrum will see buyers return to boost prices further as concerns over a mansion tax are now lifted. The prime market can expect much of the deferred demand from the pre-election period to flow back into the market over the remainder of 2015 and 2016. It is worth noting in our view that the prime London market was looking much more fully priced than those in other areas prior to the election. Given investors will have to operate in a relatively high tax environment due to the stamp duty increases imposed in December 2014. It is our belief prime markets outside London are the ones to watch to see the greatest value increase in the shorter term.

Such is the confidence in UK residential investment the larger institutional investors are wading in with vast sums. Prudential for example, that has well over a century of property investment history behind it, is now firmly going ahead with what it expects will be a fresh £1bn-worth of investment into the private rented sector in the UK. Other major institutions, such as Aviva and Legal & General, are looking on with great interest as until now the dramatic growth in the private rented sector has been dominated by individual buy-to-let investors like us. The total amount of private sector investment into rental property has been estimated at a whopping £30bn. This insurgence by major financial institutions and investing institutions should provide additional confidence in the policies and the future for returns being healthy for all levels of investor.

Add factors like these to the general property market strength, the increase in lending products in the market and the future for the smart UK property investor who acts now is bright.

Smart investors will capitalise now by adding more property to their portfolio in the current window of opportunity.

Find out for yourself which of the most used and timeless investment strategies will position you for a predictable, reliable, steady, healthy stream of income into the future today. Call 0208 6109 472 now.

Or Click here to schedule a call back at a convenient time

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charles@earnestknight.com (Charles Brittain)
Mon, 27 Apr 2015 00:00:00 GMT <![CDATA[It doubles in value in 10 years. Now worth £547 Billion pounds...]]> https://www.earnestknight.com/7ways2.html/It_doubles_in_value_in_10_years_Now_worth_547_Billion_pounds/Blog42 https://www.earnestknight.com/7ways2.html/It_doubles_in_value_in_10_years_Now_worth_547_Billion_pounds/Blog42 The collective wealth of Britains richest people has more than doubled in the last 10 years, according to the Sunday Times Rich List. The one common denominator amongst the majority of those who do STRichListMay14_01_270

The collective wealth of Britain’s richest people has more than doubled in the last 10 years, according to the Sunday Times Rich List.

The one common denominator amongst the majority of those who dominate the Sunday Times Rich List;

PROPERTY

Some in the rich list, like the current No.5, make their money directly from residential property, either by itself or more typically as part of a structured balanced portfolio as their portfolio grows.

Some individuals, like Len Blavatnik (number one, an investment, music and media magnate worth £13.17 billion) merely own very expensive homes. For example a £41m Kensington Palace Gardens property, to name just one of a real estate portfolio which adds up to £440m.

Amongst the many highest ranking property-related names are the following 10 you may recognise:

  1. The Duke of Westminster (worth £8.56 billion) who owns the Grosvenor family estate, dating from 1677 part of which forms some of Mayfair
  2. Earl Cadogan (worth £4.8 billion) who owns the Cadogan estate in London
  3. Sir James Dyson (worth £3.5 billion) who is buying up land so fast he now owns more than the Queen
  4. Baroness Howard de Walden (worth £3.23 billion) who owns 90 acres of central London and much of the residential property on it
  5. Mark Pears and family (worth £2.8 billion) who owns thousands of London homes, flats and office blocks
  6. Viscount Portman (worth £1.72 billion) who owns a London estate, plus 5,000 acres in the Home Counties
  7. Jon Hunt (worth £1.186 billion), best known as the former owner of Foxtons, has a Suffolk estate and substantial amounts of commercial property
  8. David Wilson and family (worth £515m) who have sold Wilson-Bowden house builders to Barratt
  9. Tony Pidgley (worth £212m) owns Berkeley Group, one of the biggest names in British house building
  10. Paul Rooney (worth £110m) owner of Arun Estates residential agency

 

Talk to Earnest Knight today on 0208 6109 472 about property and doubling your wealth in 10 years, if not more....

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charles@earnestknight.com (Charles Brittain)
Wed, 15 Apr 2015 00:00:00 GMT <![CDATA[Over 10% more in the last 12 months]]> https://www.earnestknight.com/7ways2.html/Over_10_more_in_the_last_12_months/Blog40 https://www.earnestknight.com/7ways2.html/Over_10_more_in_the_last_12_months/Blog40 Fantastic news for landlords, adverage rental values are 10.2% higher than a year ago The latest Homelet rental index that is formed from data gathered from around 350,000 tenants each year shows: Fantastic news for landlords, adverage rental values are 10.2% higher than a year ago

 

The latest Homelet rental index that is formed from data gathered from around 350,000 tenants each year shows:

  • In the first quarter of 2015, average rental values for new tenancies in the UK were 10.2% higher than the same period last year
  • The annual growth in average rental values for the first quarter of 2015 (10.2%) was higher than quarter one 2014 (4.9%) and quarter one 2013 (3.6%)
  • In the first quarter of 2015, average tenant incomes were 1.9% higher than the same period last year
  • Average rents for new tenancies in London are 8.4% higher than the same period last year
  • Average rental values for new tenancies in London (£1,443pcm) were £112 more expensive per month when compared to average rental values in the same period in 2014 (£1,331pcm)
  • When London is excluded, the average UK rental value in March 2015 was £733pcm - this is 8.4% higher than the same period last year (£676pcm)
  • In the first quarter of 2015, average rental values have increased in eleven out of twelve regions in the UK

 

Monthly change in UK adverage rental prices for new tenancies:

 1

The figures also show…

  • The average UK rent for tenancies in March 2015 was £918pcm, this is 10.5% higher than March 2014 (£831pcm)
  • When London is excluded, the average UK rental value was £733pcm which is 8.4% higher than March 2014  whne the value was £676pcm
  • All regions, apart from Wales, saw an increase in average rental values in the first quarter of 2015, compared to last year. Wales has seen a reduction of 1%
  • Greater London, South East, South West and West Midlands have seen continuing increase in rental values over the last 12 months

Rental values and tenant incomes in quarter one

Average UK rental amounts in quarter one, with annual comparisons

 2

Annual UK tenant income in quarter one, with annual comparisons

 

The figures also show:

  • In quarter one 2015, average rental values for new tenancies were 10.2% higher than the same period last year (£902pcm compared to £819pcm)
  • The annual growth in average rental values for quarter one 2015 (10.2%) was higher than quarter one 2014 (4.9%) and quarter one 2013 (3.6%)
  • In quarter one 2015, average tenant incomes were 1.9% higher than quarter one 2014

(Source : http://homelet.co.uk/homelet-rental-index)

UK Regional breakdown

The regional map shows the monthly and annual changes in agreed rental amounts for each region of the UK. 

regional rental data image 1

All rental amounts are an average taken over the three months preceding the date shown

 

 

regional rental 3 month data

Call 0208 6109 472 today and discuss your investment goals in more detail.

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charles@earnestknight.com (Charles Brittain)
Fri, 10 Apr 2015 00:00:00 GMT <![CDATA[Assured Shorthold Tenancy Legislation Changes]]> https://www.earnestknight.com/7ways2.html/Assured_Shorthold_Tenancy_Legislation_Changes/Blog36 https://www.earnestknight.com/7ways2.html/Assured_Shorthold_Tenancy_Legislation_Changes/Blog36 New legislation affecting Section 8 and Section 13 Notices 10/04/2015 Changes have been made to the procedures Landlords use to end an Assured Shorthold Tenancy. There are two options: Section 2 New legislation affecting Section 8 and Section 13 Notices

10/04/2015

Changes have been made to the procedures Landlords use to end an Assured Shorthold Tenancy.

There are two options:

  • Section 21 - Standard route to possession
  • Section 8 - In specific circumstances, usually rent arrears

New legislation came into force this month to change the wording of the Section 8 Notice that landlords in England must use.

The latest version of the Section 8 Notice, using the correct wording, is now available to download from the National Landlords Association Forms section of their website.

To access the correct wording please login to the NLA website using your Membership Number and Security Code and visit www.landlords.org.uk/forms

Important

The new wording must be used for any Section 8 Notices served in England on or after Monday 6 April 2015.

If the old wording has been used your case could be thrown out in court if you subsequently have to apply for a Possession Order.

Any notices served prior to Monday 6 April 2015 will still be valid, if the original wording was used and they were served correctly.

Changes to the Section 13 Notice

A Section 13 Notice is used to notify a tenant of a rent increase, in relation to an Assured Shorthold Tenancy. 

The wording of the Section 13 Notice has also changed with effect from Monday 6 April 2015. The new Section 13 Notice is also available to download from the NLA Forms section.

If your tenancy does not include a rent review clause, we recommend that you serve a Section 13 Notice if you want to increase the rent.

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charles@earnestknight.com (Charles Brittain)
Tue, 07 Apr 2015 00:00:00 GMT <![CDATA[Prime investment ‘Property in the UK’ on the radar of Buy-to-Let Pensioners]]> https://www.earnestknight.com/7ways2.html/Prime_investment_Property_in_the_UK_on_the_radar_of_Buy_to_Let_Pensioners/Blog34 https://www.earnestknight.com/7ways2.html/Prime_investment_Property_in_the_UK_on_the_radar_of_Buy_to_Let_Pensioners/Blog34 Prime investment Property in the UK on the radar of Buy-to-Let Pensioners Tuesday 7th April 2015 Some great news for established property investors in the UK market sees a new and potentially mass Prime investment ‘Property in the UK’ on the radar of Buy-to-Let Pensioners

Tuesday 7th April 2015

 

Some great news for established property investors in the UK market sees a new and potentially massive boost to the property prices in the following term, as of today retirees are able to take money out of their pension pots and invest as they like.

Those retirees who are able to take money out of their pension pots this month can be confident that if they choose to invest in buy-to-let they are likely to see strong returns.

An estimated 200,000 retirees are expected to cash in their pension this April and the latest research by IPSOS MORI suggests over 15% will choose an investment in property.

Recent analysis from the Halifax suggests UK house prices are firming, while various experts expect house price growth of four percent in 2015.

Now, whether you are a retiree or just a smart investor, this is great indication of the potential for property price growth, particularly if we see demand by aforementioned investors increase.

 

Why should I move more of my pension into property?

UK pensioners now have the freedom to invest their life savings as they please. Also a pension transfer is as normal and frequent as a re-mortgage these days.

Final salary pensions are few and far between and less guaranteed pension income is available. People searching for the best pension investments on the market are finding big returns from an investment in property highly attractive.

To help you understand why more and more people are moving their money into property it helps to see the returns it has made.

 

How property investment has performed in the past

Since the birth of the buy-to-let mortgage in the 1990’s, buy-to-let investments have provided average returns that easily outstrip those of other major asset classes.

Every £1,000 invested in an average buy to let property purchased with a 75% loan-to-value mortgage in the final quarter of 1996, when buy to let was first actively promoted, would have been worth £14,897 by the final quarter of 2014, a compound annual return of 16.2%. 

The same investment in UK commercial property would have grown to £4,494; in UK government bonds to £3,329; in UK equities to £3,119; and in cash to £1,959. 

A buy to let purchaser buying entirely with cash would have seen each £1,000 invested grow to £5,071 by the end of 2014, a compound annual return of 9.4%.

The Bank Of England base interest rate being at the low level of 0.5% coupled with the competition between mortgage lenders means there are again falling mortgage charges and longer fixed rate deals.

 

Quick Chart illustrating today’s value of £1,000 invested at the end of 1996:

1000 since 1996

 

The UK property market is at a defining point right now

Recent financial data has shown that property prices in London have stalled in recent months where prices have been growing rapidly for a substantial period of time. This has raised concerns about the future direction of London house prices, but London house prices can never be under-estimated. It would be worth most considering balancing their portfolio for both income and growth by investing inside and outside the Capital to ensure the projected risk level is as attractive as the projected returns.

 

Interest rates are low now, but will they be forever?

Current low interest rates and their influence on the lack of return from savings has sent many people on a quest for returns that beat inflation. Be responsible and consider the past and the future, this unique financial environment must not lead you into making a big decision which you might regret in the coming years should the interest rate environment become more favourable to savers and less favourable to buy-to-let investors. Changes to interest rates might not only affect your potential yield but it could also affect your capital investment if prices were to drop due to higher rates and further tightening in mortgage lending availability and criteria. All of these factors can be managed by investing with the right structure.

 

Don’t want to be an active landlord?

Good news you don’t have to be. The UK market allows for professionals to be organized with relative ease to collect the rent on your behalf for a fee. Investing in property can be relatively to completely hands off as an investment. You can be hands off by sacrificing some of your yield and place your property into the hands of a rental agent or into a portfolio with an asset management company. Doing this will see the day to day and week to week tasks performed by someone else for a fee but you would need to take further measures at further cost to be shielded from some of the other fiscal problems that landlords can face e.g. landlords insurance or guaranteed rent to cover tenants who don’t treat your property with the respect that it deserves or who don’t pay their rent. It’s true that there are many successful landlords out there and these would advocate property as a great investment having enjoyed the returns it provides. Being a traditional landlord isn’t for everyone though, take the time to discuss the techniques and the premise during a free Earnest Knight consultation before investing your cash or pension into property.

 

Call Earnest Knight Consulting on 0208 6019 472 and start taking control of your future, through a no obligation and completely free consultation today.

Or Click here to schedule a call back at a convenient time

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Branislav Opancina, Earnest Knight Consulting
Mon, 30 Mar 2015 00:00:00 GMT <![CDATA[Scotland’s Land and Buildings Transaction Tax]]> https://www.earnestknight.com/7ways2.html/Scotland_s_Land_and_Buildings_Transaction_Tax/Blog30 https://www.earnestknight.com/7ways2.html/Scotland_s_Land_and_Buildings_Transaction_Tax/Blog30 Scotlands Land and Buildings Transaction Tax 30/03/2015 Scotlands alternative to stamp duty, the new Land and Buildings Transaction Tax, takes effect from Wednesday. Scotlands alternative to stamp Scotland’s Land and Buildings Transaction Tax

30/03/2015

Scotland’s alternative to stamp duty, the new Land and Buildings Transaction Tax, takes effect from Wednesday.

Scotland’s alternative to stamp duty, the new Land and Buildings Transaction Tax, takes effect from Wednesday.

For comparison the new and old duty figures:

 

LBTT:                                                               

Up to £145,000 - 0%                     

£145,001 to £250,000 - 2%                     

£250,001 to £325,000 - 5%                          

£325,001 to £750,000 - 10%                       

£750,001 and over - 12%      

 

Old Stamp Duty:

Up to £125,000 - 0%

£125,001 to £250,000 - 2%

£250,001 to £925,000 - 5%

£925,001 to £1.5m - 10%

Above £1.5m - 12%

 

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charles@earnestknight.com (Charles Brittain)
Wed, 25 Mar 2015 00:00:00 GMT <![CDATA[Rental voids at the lowest levels since 2002]]> https://www.earnestknight.com/7ways2.html/Rental_voids_at_the_lowest_levels_since_2002/Blog25 https://www.earnestknight.com/7ways2.html/Rental_voids_at_the_lowest_levels_since_2002/Blog25 Rental voids are at their lowest levels in 13 years 25/03/2015 Paragon a popular mortgage lender has been surveying their BTL landlord clients for 13 years. Their finding for the first quarter of 20 Rental voids are at their lowest levels in 13 years

25/03/2015

Paragon a popular mortgage lender has been surveying their BTL landlord clients for 13 years. Their finding for the first quarter of 2015 is down to the lowest level they have ever recorded at just 2.4 weeks. This has dropped since the last quarter's figure of 2.6 weeks at the end of 2014.

This 14% drop in the adverage void experienced by landlords is another great sign of lower risks in BTL and consistent returns. Landlords have been reporting low or falling void periods since 2013, with only a slight fluctuation in mid-2013 when the average climbed marginally to three weeks.

 

“Void periods have been consistently low for some time, which is not unexpected when you also look at what landlords are telling us about the level of demand from tenants”

says John Heron, director of mortgages at Paragon.

“In our survey for the first quarter of 2015, 42% of landlords said in their view tenant demand was either growing or booming and 54% felt demand was stable. The housing market is currently experiencing a shift, with more people choosing to live in the private rented sector. This change in housing dynamics appears to be a continuing and long-term trend” he says.

The lenders are opening more products for the BTL market again as the demand grows. It is a great time to gain your first or more investment property for your portfolio.

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charles@earnestknight.com (Charles Brittain)
Fri, 20 Mar 2015 00:00:00 GMT <![CDATA[Biggest rise in rents in nearly two years]]> https://www.earnestknight.com/7ways2.html/Biggest_rise_in_rents_in_nearly_two_years/Blog24 https://www.earnestknight.com/7ways2.html/Biggest_rise_in_rents_in_nearly_two_years/Blog24 Biggest rise in rents in nearly two years 20/03/2015 The average rent across England and Wales is now 3.1 per cent higher than a year ago This shows the biggest annual rise seen in nearly two ye

Biggest rise in rents in nearly two years

20/03/2015

 

The average rent across England and Wales is now 3.1 per cent higher than a year ago

This shows the biggest annual rise seen in nearly two years from the most recent LSL Property Services report.

 

The result is the average residential rents in England and Wales are now £766, compared to £763 in January 2015 and £743 in February last year.

 

The gross rental yield on a typical rental property in England and Wales now stands at 5.0 per cent.

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charles@earnestknight.com (Charles Brittain)
Tue, 10 Mar 2015 00:00:00 GMT <![CDATA[Property prices rising - Supply, Demand, Pensions and BTL]]> https://www.earnestknight.com/7ways2.html/Property_prices_rising__Supply_Demand_Pensions_and_BTL/Blog22 https://www.earnestknight.com/7ways2.html/Property_prices_rising__Supply_Demand_Pensions_and_BTL/Blog22 Property prices rising - Supply, Demand, Pensions and BTL 10/03/2015 According to reports there has been a growing number of retirees looking to cash in their pension pots for a secure Property prices rising -  Supply, Demand, Pensions and BTL 

10/03/2015

According to reports there has been a growing number of retirees looking to cash in their pension pots for a secure steady income from buy-to-let properties.

Further information within these reports suggest property buyers need to get their tactics right to benefit fully from property investment. Given that there is limited stock of property in the UK this is proving harder than ever before resulting in increased demand for professional property sourcing services.

For decades now, the supply of property has been inadequate to meet the demand and this is resulting in a shortage of quality property. Due to the shortage of suitable property supply, Rightmove data shows property sellers are contributing to an uplift in prices across all regions in the UK . The UK national average is now up by £5000 (+£5,729/+2.1%).

However owner occupancy is down to 65% from 71% in 2003. This shows that despite there being a rise in new build property of 11%, it is currently outstripped by the 31% increase of housing transactions in England and Wales caused by private rental buyers. Buy to let owners tend to have long term investment strategies so do not sell their properties as frequently as owner occupiers adding further strain on the supply.

This rapidly growing buy-to-let sector has increased since 1996 by 2.6 Million homes adding long term resale availability issues to the lack of available housing and new build shortage for residential buyers.

“Rightmove statistics show that the average available stock for sale per estate agency branch for the last two months (57 and 58 properties) has never been lower at the beginning of the year. New seller numbers this month are also 4% below those recorded in the same period in 2014.”

 

The outlook : There simply is not enough property, more people are looking, further price increases could be seen from the supply and demand issue, exasperated by under performing pension owners self investing into property, all adding further demand to an overstretched property supply.

Buy property now while the prices still allow great profit to be made.

Earnest Knight can be instrumental in assisting with all aspects of building and growing a successful portfolio.

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charles@earnestknight.com (Charles Brittain)
Fri, 06 Mar 2015 00:00:00 GMT <![CDATA[10 top points to consider when investing in Buy-to-Let]]> https://www.earnestknight.com/7ways2.html/10_top_points_to_consider_when_investing_in_Buy_to_Let/Blog21 https://www.earnestknight.com/7ways2.html/10_top_points_to_consider_when_investing_in_Buy_to_Let/Blog21 10 top points to considerwhen investing in Buy-to-Let 06/03/2015 Buy to Let properties have proved to be a great investment. Firstly you earn money in two ways, Rental Yields (rent paid less mainten 10 top points to consider when investing in Buy-to-Let

06/03/2015

Buy to Let properties have proved to be a great investment. Firstly you earn money in two ways, Rental Yields (rent paid less maintenance and running costs) and Capital Growth (over time the values of property rise, capital appreciation is how you will profit from your property at a later date). Favourable financing conditions have meant that investors have used their paper profits (equity) from capital growth to borrow additional funds to expand their property portfolio.

Successful investors find that the most important but basic things to look at to guarantee their success were as follows:

  1. Investigate the chosen property, transport links, employment levels, local schools
  2. Make sure you do your research and compare prices for rental prices of the property and look at the average prices.
  3. Find out all your options when getting a mortgage. A whole of market broker can be instrumental in gaining the best deal for you.
  4. Have a look at what properties were sold in the area for either on Land registry, Rightmove and the like
  5. One way to measure the demands for tenants is through placing an ad on a classified advertising site
  6. Have a good idea of who you would like your tenant to be.
  7. Make sure that there are quality letting agents available in the area.
  8. Confirm your findings of comparable properties through speaking with the letting agents in the areas.
  9. Some estate agents unlike investment companies will not take the property off the market, leaving you in a position of being gazumped. So, its worth completing as soon as possible.
  10. Confirm if the property was previously owned by a buy to let landlord, It may be possible to purchase with a tenant already in place avoiding any void period.
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charles@earnestknight.com (Charles Brittain)
Thu, 27 Nov 2014 00:00:00 GMT <![CDATA[Scotland rents are fastest rising in the UK]]> https://www.earnestknight.com/7ways2.html/Scotland_rents_are_fastest_rising_in_the_UK/Blog19 https://www.earnestknight.com/7ways2.html/Scotland_rents_are_fastest_rising_in_the_UK/Blog19 Scotland rents are fastest rising in the UK 27/11/2014 Annual rents in Scotland are increasing more rapidly than in England and Wales, according to lettings agent network Your Move. Scottish rent

Scotland rents are fastest rising in the UK

27/11/2014

Annual rents in Scotland are increasing more rapidly than in England and Wales, according to lettings agent network Your Move.

Scottish rents went up 2.2 per cent in the past year to an average of £537 a month, compared to 1.5 per cent across England and Wales

 

Source Independent : Read More

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charles@earnestknight.com (Charles Brittain)
Mon, 13 Oct 2014 00:00:00 GMT <![CDATA[Oxford Economics 5 Year Property Growth prediction]]> https://www.earnestknight.com/7ways2.html/Oxford_Economics_5_Year_Property_Growth_prediction/Blog18 https://www.earnestknight.com/7ways2.html/Oxford_Economics_5_Year_Property_Growth_prediction/Blog18 Oxford Economics 5 Year Property Growth prediction table below: 13/08/2014 (average house prices) http://www.oxfordeconomics.com/Media/Default/landing-pages/rightmove/Rightmove-and-Oxford-Economics Oxford Economics 5 Year Property Growth prediction table below:

13/08/2014

(average house prices)

http://www.oxfordeconomics.com/Media/Default/landing-pages/rightmove/Rightmove-and-Oxford-Economics-TRADE-FINAL.pdf

[start quote]

“The report claims to be “the most comprehensive house price forecast of its kind ever created, based on property and economic data rather than opinion and short-term market factors. It takes into account both asking and sold prices, surveyor valuations and analytics from the Oxford Economics’ global, industry and regional forecasting models.”

[end quote]

 

Rightmove/Oxford Economics forecasts

Region

2014

Growth

2019

London

£539,903

32.5%

£715,267

East

£252,111

35.6%

£341,791

East Midlands

£138,787

25.0%

£173,503

South West

£198,050

31.8%

£260,938

North West

£140,163

24.3%

£174,289

South East

£275,842

37.3%

£378,636

West Midlands

£152,256

26.5%

£192,644

Wales

£140,294

25.9%

£176,695

Yorkshire and the Humber

£146,440

27.9%

£187,247

North East

£121,852

25.0%

£152,363

National

£244,192

30.2%

£317,967

 

 

 

 

Fastest forecast growth areas (Rightmove/Oxford Economics forecasts)

Region

2014

Growth

2019

Southampton

£224,856

42.9%

£321,399

Luton

£197,678

41.0%

£278,734

Brighton

£256,189

40.6%

£360,254

Swindon

£182,159

40.4%

£255,769

Enfield

£381,119

39.5%

£531,483

 

 

 

 

Slowest forecast growth areas (Rightmove/Oxford Economics forecasts)

Region

2014

Growth

2019

West London

£935,694

13.6%

£1,063,066

Carlisle

£136,720

17.4%

£160,541

Lancaster

£155,183

18.1%

£183,343

Manchester

£144,535

18.8%

£171,744

Northampton

£153,876

20.5%

£185,379

 

 

More about the specific report here >>

http://www.oxfordeconomics.com/recent-releases/new-forecast-house-prices-to-rise-30pc-in-england-and-wales-by-2019

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charles@earnestknight.com (Charles Brittain)
Mon, 13 Oct 2014 00:00:00 GMT <![CDATA[“House prices will rise by 30% in five years, Rightmove says”]]> https://www.earnestknight.com/7ways2.html/House_prices_will_rise_by_30_in_five_years_Rightmove_says/Blog17 https://www.earnestknight.com/7ways2.html/House_prices_will_rise_by_30_in_five_years_Rightmove_says/Blog17 Article: House prices will rise by 30% in five years, Rightmove says Published: Friday, October 10th 2014 Source: THE GUARDIAN Excerpt: UKs biggest property website believes market is not slowi Article:           “House prices will rise by 30% in five years, Rightmove says”

Published:       Friday, October 10th 2014

Source:           THE GUARDIAN

 

Excerpt:

UK’s biggest property website believes market is not slowing down but predicts largest growth will be outside of London.

 

Britain’s biggest property website has rebuffed claims that the housing market is heading for a slowdown, with a forecast that prices will soar by 30% over the next five years to average £318,000 in England and Wales and more than £715,000 in London.

 

But for the first time in more than a decade, it will be markets outside the capital that lead the way in price rises, Rightmove said.."

 

Read the full story here:         http://www.theguardian.com/business/2014/oct/10/rightmove-house-prices-rise-30-per-cent-five-years-outside-london?utm_source=IA+March+2014&utm_campaign=3a9bc2a741-NewsupdateOctweek2_BA_List10_12_2014&utm_medium=email&utm_term=0_d65f7566cb-3a9bc2a741-114301113    

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charles@earnestknight.com (Charles Brittain)
Mon, 13 Oct 2014 00:00:00 GMT <![CDATA[“UK Landlords Yields Soaring as Buy to Let Loans Flood Market”]]> https://www.earnestknight.com/7ways2.html/UK_Landlords_Yields_Soaring_as_Buy_to_Let_Loans_Flood_Market/Blog16 https://www.earnestknight.com/7ways2.html/UK_Landlords_Yields_Soaring_as_Buy_to_Let_Loans_Flood_Market/Blog16 Article: UK Landlords Yields Soaring as Buy to Let Loans Flood Market Published: Friday, October 10th 2014 Source: INTERNATIONAL BUSINESS TIMES Excerpt: Landlords across Britain are seeing bump Article:           “UK Landlords Yields Soaring as Buy to Let Loans Flood Market”

Published:       Friday, October 10th 2014

Source:           INTERNATIONAL BUSINESS TIMES

 

Excerpt:

Landlords across Britain are seeing bumper yields on their properties amid the market being flooded with Buy to Let loan products.

 

According to Mortgages for Business' Complex Buy to Let Index, gross yields on buy to let properties which only have a single tenancy agreement, stands at 5.9% as of third quarter 2014. However this is a slight fall from 6.3% in the second quarter this year.."

 

Read the full story here:         http://www.ibtimes.co.uk/uk-landlords-yields-soaring-buy-let-loans-flood-market-1469390?utm_source=IA+March+2014&utm_campaign=3a9bc2a741-NewsupdateOctweek2_BA_List10_12_2014&utm_medium=email&utm_term=0_d65f7566cb-3a9bc2a741-114301113     

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charles@earnestknight.com (Charles Brittain)
Fri, 11 Jul 2014 00:00:00 GMT <![CDATA[Base rate remains low and Office for Budget Responsibility says: house price rises likely to outstrip pay rises for up to a deca]]> https://www.earnestknight.com/7ways2.html/Base_rate_remains_low_and_Office_for_Budget_Responsibility_says_house_price_rises_likely_to_outstrip_pay_rises_for_up_to_a_deca/Blog15 https://www.earnestknight.com/7ways2.html/Base_rate_remains_low_and_Office_for_Budget_Responsibility_says_house_price_rises_likely_to_outstrip_pay_rises_for_up_to_a_deca/Blog15 Base rate remains low and Office for Budget Responsibility says: house price rises likely to outstrip pay rises for up to a decade 11/07/2014 Earnest Knight important market News Roundup Last Base rate remains low and Office for Budget Responsibility says: house price rises likely to outstrip pay rises for up to a decade
11/07/2014
 
315052213_588d3a64fc_o
 
Earnest Knight important market News Roundup
Last updated: Friday, 11th July 2014
 
The Bank of England has again maintained the base rate at 0.5% at yesterday’s lunchtime meeting, with many being left confused by inconsistent messages emerging from the Bank's chief, Mark Carney, about when rates may increase.
In a further worrying move by banks, borrowers are now also being advised by their lenders that they cannot change existing high-rate variable mortgages to lower rates, and blaming new affordability rules that were backed by the Bank of England.
 
Mr Carney started his tenure as Governor last Summer, with the prediction that unemployment falling below 7% would trigger a review of the historically low rate, which wasn't expected to happen until 2016. The comment was quickly re-qualified in January this year, when the unemployment figure dropped faster than expected, down to 7.1%, with the Bank of England making reference to wage growth being muted and therefore the timing not being right to increase rates any time soon.
 
Since then UK house price reports have steadily increased, particularly in the capital, threatening to derail the UK economic recovery. As a result, warnings were issued by senior international economists, like Christine Lagarde, Chief of the IMF, to warn that the biggest threat to a UK economic recovery was unsustainable house price inflation. Carney reacted to this, and made moves to further tighten regulation on the banks around mortgage lending.
 
Following the launch of the Mortgage Market Review in April 2014, the biggest shake-up of existing lending rules for over a decade, the Bank of England enforced lending caps on the banks, with a multiple of no more than 4 times income for large loans in excess of £500,000. This was expected to curb London prices in particular, where a lot of the larger loans were being granted. RBS and the Lloyds Banking Group, both majority owned by the Government, launched these lending caps within days of each other.
 
But, as we can see from the national press, this is not having the effect of reducing the property prices as the demand remains high and in our opinion the basics of economics continue to work in our favour in the UK market. Supply and demand is positioned perfectly for us to keep enjoying the benefits of investing in UK property market.
 
On this note, from the recent article, as published in The Telegraph, UK property funds continue to see an increase in investors with the recent statistics from the Investment Management Association (IMA) showing that more than £491million was poured in to property funds by British savers in May alone, making property funds “back in fashion” again. According to The Telegraph, not since December 2009 has so much money been allocated to property in a single month.
 
In other parts of the UK we have seen excellent reports concerning the rental market and consistent increases over the previous periods. Namely, in Scotland, according to Lettingweb and their latest quarterly report on Scotland’s private rented sector (PRS) there is a notable increase in demand, that is now outstripping supply, in areas such as Aberdeen and Edinburgh showing that Scotland’s PRS is thriving at the moment, with a few localized issues that are caused by a lack of supply.
 
Another thought on many investors’ minds was the situation with the possible Scottish independence and its effect on the property market, but from what we have seen in the press recently that issue, in our opinion, still sits favourably towards the property investors. As evidenced by one of the BBC News recent articles, there is a planned £1billion of investment from the UK and Scottish governments going into the Glasgow and surrounding areas alone over the next period.
 
Furthermore, according to the Office for Budget Responsibility (OBR), soaring house prices are likely to outstrip pay rises for at least the next 5 Years and possibly for decades to come, as the government’s official forecaster warned. OBR says only “historically unprecedented” housebuilding activity can prevent loan-to-income ratios rising year after year.
 
 
Based on all of the above, Earnest Knight position remains logically very bullish on the UK property market as we continue to see excellent statistics and results providing for great medium to long term gain possibilities when investing in this market wisely.
 
For more info or an informal chat about your own circumstances or approach to investing in the UK property market at the moment please do not hesitate to contact Earnest Knight Consulting direct on either 0208 6109 472 or our Freephone number 0800 3689 317 or alternatively emails us at: enquiries@earnestknight.com
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Tue, 10 Jun 2014 00:00:00 GMT <![CDATA[Property Investors Focus Head North]]> https://www.earnestknight.com/7ways2.html/Property_Investors_Focus_Head_North/Blog14 https://www.earnestknight.com/7ways2.html/Property_Investors_Focus_Head_North/Blog14 Property Investors Focus Head North 10/06/2014 One of the influencing factors that Investors consider when looking for the optimal property investment is the exit strategy or ease of sale. Given th Property Investors Focus Head North

10/06/2014

One of the influencing factors that Investors consider when looking for the optimal property investment is the exit strategy or ease of sale.

Given the recent tightening of mortgage checks on affordability the price to local earnings ratio is more important than ever to consider.

This has a two fold impact as the lower the ratio the more affordable property is making it easier to exit. It also suggests there is more room for capital growth in these areas which is the major of the two returns made from a property investment.

Lloyds Banking Group produced an Affordable Cities Review recently that showed the north-south divide still remains.*

The top 15 most affordable cities are in the north of the UK and the next five are in the Midlands and Wales.

17 of the top 20 least affordable cities are all in southern England.

This amongst other reasons have seen the attention of investors, especially those heavily invested in the south, look to the north to enhance and protect their returns and the flexibility of their portfolios as a whole.

Find out more by speaking to your Earnest Knight Consultant.
*(http://www.lloydsbankinggroup.com/media/press-releases/2014/lloyds-bank/over-four-in-five-uk-cities-see-home-affordability-improve-since-2009/)

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Tue, 29 Apr 2014 00:00:00 GMT <![CDATA[18 years of BTL returns - Good, Great & Astounding]]> https://www.earnestknight.com/7ways2.html/18_years_of_BTL_returns__Good_Great__Astounding/Blog13 https://www.earnestknight.com/7ways2.html/18_years_of_BTL_returns__Good_Great__Astounding/Blog13 18 years of BTL returns - Good, Great Astounding 29/04/2014 A report has been created and released by The Wriglesworth Consultancy in association with Paragon on the returns from BTL over the past 18 years of BTL returns - Good, Great & Astounding

29/04/2014

A report has been created and released by The Wriglesworth Consultancy in association with Paragon on the returns from BTL over the past 18 years. This is not the most productive period in property history for returns and you will still find the results impressive.

 

Good - Cash only

 

A straight cash property purchase in 1996 would have seen every £1,000 invested grow to £4,791 by the end of 2013.

This equates to a good compound annual return of 9.7%.

 

Great - Geared / Leveraged

 

If you used other peoples money and gained a 75% LTV mortgage from the bank, for every £1,000 invested in 1996 would have been worth £13,048 by the end of 2013.

This equates to a great compound annual return of 16.3%.

 

Astounding - Highly Geared / Leveraged

 

An investor who massaged the situation for optimum gain by remortgageing to release equity and expanding their portfolio more quickly would have turned each £1,000 into an astounding £33,051.

This equates to an astonishing compound annual return well in excess of 20%.

 

For more information on this and the comparables to other investment classes or to learn more about how to create these returns for your self get in touch with Earnest Knight today.

 

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Fri, 21 Feb 2014 00:00:00 GMT <![CDATA[Why are property investors reinvesting?]]> https://www.earnestknight.com/7ways2.html/Why_are_property_investors_reinvesting/Blog10 https://www.earnestknight.com/7ways2.html/Why_are_property_investors_reinvesting/Blog10 Why are property investors reinvesting? 21/02/2014 If you can borrow at half the rate...... Latest best buy mortgage deals Provider Rate Type 1.59% Fixed Why are property investors reinvesting?

21/02/2014

If you can borrow at half the rate......

 

Latest best buy mortgage deals

Provider Rate Type
HSBC 1.59% Fixed
Post Office 1.63% Fixed
Yorkshire BS 1.66% Fixed

 

That property is rising......

 

London effect: While the effect of house price rises in London was boosting the overall annual increase to just over 5 per cent, even if London were taken out of the equation house prices around the country have risen substantially since last summer. 

 

And you can borrow 75% of the property value, your money is working far harder for you in property than savings

 

£20,000 starting capital Property bought using £20,000 as a deposit growing at last years rate of 3.5% p.a.

Bonds @ 3% p.a.

(locking your money in without access)

Best Savings Account we could find now @ 1.6% p.a.

(again locking your money in)

Best Instant Access Savings Account

@ 0.25% p.a.

Average annual inflation in the UK over last 5 years is 3.06% p.a.
Value now £100,000.00 £20,000.00 £20,000.00 £20,000.00 £20,000.00
Value Year 1 £103,500.00 £20,600.00 £20,320.00 £20,050.00 £20,612.00
Value Year 2 £107,122.50 £21,218.00 £20,645.12 £20,100.13 £21,242.73
Value Year 3 £110,871.79 £21,854.54 £20,975.44 £20,150.38 £21,892.75
Value Year 4 £114,752.30 £22,510.18 £21,311.05 £20,200.75 £22,562.67
Value Year 5 £118,768.63 £23,185.48 £21,652.03 £20,251.25 £23,253.09
          Required return to keep up with inflation over 5 years

Estimated 5 year gross ROI

93.84% 15.93% 8.26% 1.26% 16.27%

 

Traditional savings products are not keeping up with inflation.

Property leveraged with a mortgage is anticipated to provide in excess of 9% return per annum over inflation.

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Thu, 13 Feb 2014 00:00:00 GMT <![CDATA[27% growth by 2018, 57% of buy-to-let landlords want more this year]]> https://www.earnestknight.com/7ways2.html/27_growth_by_2018_57_of_buy_to_let_landlords_want_more_this_year/Blog9 https://www.earnestknight.com/7ways2.html/27_growth_by_2018_57_of_buy_to_let_landlords_want_more_this_year/Blog9 27% growth by 2018, 57% of buy-to-let landlords want more this year 13/02/2014 BTL lending rates are now back to their lowest levels since before the recession. Some rates are fixed as low as 2.4% 27% growth by 2018, 57% of buy-to-let landlords want more this year

13/02/2014

BTL lending rates are now back to their lowest levels since before the recession.

Some rates are fixed as low as 2.4% for lower LTVs.

Couple this with the Government's preferring think-tank, The Office for Budget Responsibility, forecasting house prices will rise by 27% by 2018 it is obvious why 57% of buy-to-let landlords wanted to buy more properties this year alone to profit from that growth. *source Mortgages for Business

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Mon, 03 Feb 2014 00:00:00 GMT <![CDATA[How does inflation dropping to 2% affect your money?]]> https://www.earnestknight.com/7ways2.html/How_does_inflation_dropping_to_2_affect_your_money/Blog7 https://www.earnestknight.com/7ways2.html/How_does_inflation_dropping_to_2_affect_your_money/Blog7 Hurray, inflation is reported to be down to 2% *source BBC 03/02/2014 Well, what does this really mean to you? This means that the value of your money sitting idle in your bank account lowers Hurray, inflation is reported to be down to 2% *source BBC

03/02/2014

london night view Big Ben London Eye

 

Well, what does this really mean to you?

 

This means that the value of your money sitting idle in your bank account lowers by 2% equivalent per annum as you can buy less things for the same amount of money.

 

Here is a very rough but real example:

A loaf of bread today is say £1

1 year from today, this new low inflation figure suggests, that same loaf of bread will cost £1.02

 

If you have any savings and you were one of the very lucky individuals to have found a very high interest savings account (let’s use for example a staggering 3% interest rate for your savings) then this savings account is finally making you a 1% profit.

Let’s assume you have £30,000 in your savings.

Inflation/cost of living increasing at only 2% means for you to just keep the same standard of living and buy same things you would need your savings to grow to £30,600 in the next year just to keep up with inflation. This is assuming that the inflation of only one month (December 2013) is going to stay for the whole year. Consider the real picture, since 1989 the average annual inflation is 2.8%. 2013 annual average is 2.5% and annual average in UK over the last 5 years is actually 3.06%.

The underlying problem is that most of us will still have savings in accounts that are not beating inflation, which is not ideal. The majority of standard UK savings accounts are giving you only 0.25% interest. Meaning the example £30,000 of your savings are likely to bring your savings balance only to £30,075 in total by next year. Making you only £75 per annum!

In real terms this means you lose money as the inflation and cost of goods has increased more than the interest gained to the tune of £525 in that first year of ‘saving’ alone.

Hmmm.... Does a savings account still look like a good choice after looking at it from a realistic life point?

 

So, what is better?

We are strong believers that property and owning property is.

This wise asset backed investment choice is also preferred by a good number of millionaires in “The Times rich list” as well as the everyday saver wishing to make a return on their savings.

Here is why:

(using the same assumptions as above but investing your money in property rather than a low return savings or bank account)

The current average annual UK property value growth for all years since 1952 is 8.1% *source Nationwide

Just by assuming the very simplest form of property investment, buying a property outright in cash, without any benefit of taking out a mortgage and boosting your income even further, this is how you could potentially gain over the next 10 years:

Buying 1 property:

£30,000 @ average 8.1% per annum growth over 10 years results in your estimated property value being £65,369.96 in 10 years.

Profit £35,369.96

And this is assuming you keep your property EMPTY for the whole 10 years and gain no rental return at all.

Your Capital Pot Total        

£65,369.96

 

Average Value of money after 10 years with assumption of average annual inflation being 3.06% like it was for the last 5 years in the UK

£40,552.97

 

Average Property Capital Growth at 8.1% per annum since records started in 1952 (*source Nationwide)

 

The best Savings Bond we could find today is 3% interest rate locking your money in for 3 years, NOT guaranteed (*source Moneysupermarket)

Best Savings Account we could find gives 1.6% interest rate with limit to savings at £1mil (*source Moneysupermarket)

A Cash ISA was found just under the savings account interest at 1.5% per annum

 

 

 

       

 

 

Property

Bonds @ 3%

Best Savings Acc we could find @ 1.6%

Bank Acc @ 0.25%

Average annual inflation UK over last 5 years is 3.06% per annum

Enter price now

£30,000.00

£30,000.00

£30,000.00

£30,000.00

£30,000.00

Year 1

£32,430.00

£30,900.00

£30,480.00

£30,075.00

£30,918.00

Year 2

£35,056.83

£31,827.00

£30,967.68

£30,150.19

£31,864.09

Year 3

£37,896.43

£32,781.81

£31,463.16

£30,225.56

£32,839.13

Year 4

£40,966.04

£33,765.26

£31,966.57

£30,301.13

£33,844.01

Year 5

£44,284.29

£34,778.22

£32,478.04

£30,376.88

£34,879.64

Year 6

£47,871.32

£35,821.57

£32,997.69

£30,452.82

£35,946.95

Year 7

£51,748.90

£36,896.22

£33,525.65

£30,528.95

£37,046.93

Year 8

£55,940.56

£38,003.10

£34,062.06

£30,605.28

£38,180.57

Year 9

£60,471.74

£39,143.20

£34,607.05

£30,681.79

£39,348.89

Year 10

£65,369.96

£40,317.49

£35,160.77

£30,758.49

£40,552.97

 

       

The inflation adjusted

value of your money

           

***comparisons and assumption used in the table 1 above based on research conducted in January 2014

 

Buying a BOND:

£30,000 in a Bond @ 3% for 10 years adding the interest into the savings to compound and get higher return, results in £40,317.49

NOTE: To get 3% interest rate you need to lock in your money for a minimum of 3 years and buy a BOND which is not 100% guaranteed.

Profit £10,317.49

Your Capital Pot Total        

£40,317.49

(not accounting for any taxes that apply, just comparing Gross)

Average Value of money 10 year (with assumption of average annual inflation being 3.06% like it was for the last 5 years in the UK)

£40,552.97

Your future purchasing balance estimate  = -£235.48

 

Leaving money in High Interest Savings Account:

(absolutely highest rate we could find is from Kent Reliance and is 1.60% per annum. All the other accounts have restrictions, maximum deposits being low and a lot of restrictions on withdrawal) link: http://www.moneysupermarket.com/savings/search/results/?goal=SAV_EASYACCESS&wom=true

£30,000 in the best savings account @ 1.6% for 10 years adding the interest into the savings to compound and get higher return, results in £35,160.77

Profit £5,160.77

Your Capital Pot Total        

£35,160.77

(not accounting for any taxes that apply, just comparing Gross)

Average Value of money 10 year (with assumption of average annual inflation being 3.06% like it was for the last 5 years in the UK)

£40,552.97

Your future purchasing balance estimate  = -£5,392.20

 

Leaving money in your Current Account:

(majority of UK High Street Banks are giving 0.1% if anything, so we are being generous here assuming 0.25%. Of course this is all under current assumptions of everything remaining the same including inflation and interest rates)

£30,000 in your Current Account @ 0.25% pa for 10 years adding the interest into the savings to compound and get higher return, results in £30,758.49

Profit £758.49

Your Capital Pot Total        

£30,758.49

(not accounting for any taxes that apply, just comparing Gross)

Average Value of money 10 year (with assumption of average annual inflation being 3.06% like it was for the last 5 years in the UK)

£40,552.97

Your future purchasing balance estimate  = -£9,794.48

 

The Property Comparison:

(Using the average Property Capital Growth at 8.1% per annum since records started in 1952 (*source Nationwide))

£30,000 in a property bought outright for cash @ 8.1% p.a. for 10 years adding the interest annually, results in £65,369.96

Profit £35,369.96

Your Capital Pot Total        

£65,369.96

(not accounting for any taxes that apply, just comparing Gross)

Average Value of money 10 year (with assumption of average annual inflation being 3.06% like it was for the last 5 years in the UK)

£40,552.97

Your future purchasing balance estimate =  £24.816.99

 

So, what would you choose from the above?

Ohhh, let’s just throw into the equation the average rental returns to our property income.

and also the potential of “gearing” (using mortgages to control higher value of property with your cash pot)

and our unrivalled search and selection in acquiring properties at best prices in the first place.

Result : The returns can increase dramatically to over £200,000!

 

Think about it for yourself, as it is your life and your money after all.

Let us know what would you prefer and how you could imagine your future with what you currently have.

If you want to just barely keep up with inflation, get a savings account (if you find a great one and are lucky).

If you want to make significantly more and profit from an inflation beating investment speak to Earnest Knight today.

Our Consultants and Portfolio Managers are here to do their utmost to try and assist you, so please do not hesitate to either

 

CALL:            0208 6109 472 or

EMAIL:           enquiries@earnestknight.com

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Fri, 31 Jan 2014 00:00:00 GMT <![CDATA[2014 off to a great start for growth]]> https://www.earnestknight.com/7ways2.html/2014_off_to_a_great_start_for_growth/Blog5 https://www.earnestknight.com/7ways2.html/2014_off_to_a_great_start_for_growth/Blog5 2014 off to a great start for growth 31/01/2014 UK house prices increased by 0.7% in January, and were up 8.8% from the same month in 2013, according to the Nationwide Building Society. For the ful 2014 off to a great start for growth

31/01/2014

UK house prices increased by 0.7% in January, and were up 8.8% from the same month in 2013, according to the Nationwide Building Society.

For the full article click here

To make money from property growth call 02086 109 472

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Mon, 20 Jan 2014 00:00:00 GMT <![CDATA[Rightmove Reports Strength]]> https://www.earnestknight.com/7ways2.html/Rightmove_Reports_Strength/Blog3 https://www.earnestknight.com/7ways2.html/Rightmove_Reports_Strength/Blog3 Rightmove Reports Strength 20/01/2014 The lastest Rightmove figures show the strongest start to the year reported ever. 1% rises in asking prices are seen this month alone and a total of 6.3% above Rightmove Reports Strength

20/01/2014

The lastest Rightmove figures show the strongest start to the year reported ever.

1% rises in asking prices are seen this month alone and a total of 6.3% above this time last year, resulting in the most remarked about rise sice 2007.

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Mon, 20 Jan 2014 00:00:00 GMT <![CDATA[Over £3 Trillion worth of Property]]> https://www.earnestknight.com/7ways2.html/Over_3_Trillion_worth_of_Property/Blog2 https://www.earnestknight.com/7ways2.html/Over_3_Trillion_worth_of_Property/Blog2 Over 3 Trillion worth of Property 20/01/2014 Savils and Wealth-X have released intelligence on UWNWI (Ultra High Net Worth Individuals) that shows the top 200,000 UHNWI's have a fith of their in Over £3 Trillion worth of Property

20/01/2014

Savils and Wealth-X have released intelligence on UWNWI (Ultra High Net Worth Individuals) that shows the top 200,000 UHNWI's have a fith of their invested wealth in property.

These 200,000 investors own around 3% of all property on the planet which total worth is over £3 Trillion.

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Wed, 11 Dec 2013 00:00:00 GMT <![CDATA[Earnest Knight Launches New Website]]> https://www.earnestknight.com/7ways2.html/Earnest_Knight_Launches_New_Website/Blog1 https://www.earnestknight.com/7ways2.html/Earnest_Knight_Launches_New_Website/Blog1 Wednesday, 11th December 2013 Earnest Knight have updated the website and office technology to further serve our clients needs. Register for the full benefit on the about you page. Wednesday, 11th December 2013

 

Earnest Knight have updated the website and office technology to further serve our clients needs. Register for the full benefit on the about you page.

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