It’s never easy being a buy to let landlord. By keeping up with some of the latest UK property news headlines, though, we aim to make your job just that little bit easier.
So, let’s briefly review what’s currently making the news.
Landlord Alert: beware of long-term third-party energy contracts
An article in Landlord Today recently warned against long-term energy contracts with third parties – a temptation for anyone worried about escalating bills.
With the high cost of energy these days, it’s hardly surprising that both landlords and tenants want to cut the cost of electricity bills. To make their let property more attractive to tenants and with the possibility of it increasing in value, landlords may be attracted by the sustainability of solar-power panels. However, they can be so expensive to install.
A way around that capital outlay is a long-term contract (typically 20 to 30 years) with a third party that owns the building’s roof for a solar panel – or PV – system that is then leased to an asset manager.
But the very long-term nature of such contracts – which typically bind the property owner into paying compensation for any loss of income if the system ever needs to be switched off – exposes landlords to risks greater than any apparent savings in time and money.
Think twice before entering any such contract, warned Landlord Today.
The Northern Powerhouse comes out as top investment spot in England
If you’ve ever wondered where the best location is to make your investment in property, the Buy Association on the 18th of February may have the answer.
The lobby group revealed that it is in the two Scottish powerhouse cities of Edinburgh and Glasgow that investors are likely to reap the greatest returns. But the best place in England for residential investment is Manchester.
According to financial analysts, the city boasts a local economy valued at more than £80 billion, has transport links around the globe, can tap into the education and skills of the biggest student population outside London, offers high-quality commercial property, and attracts finance from some of the world’s best-known international brands.
House prices edge up as buyer choice hits 10-year high
There is typically a surge in house transactions come springtime. This year is no different, though the increase in activity is somewhat lower than usual, explained the online listings website Rightmove last month.
Instead of the usual 0.8% seasonal increase, prices rose by a more modest 0.5% in February.
The reasons are two-fold, suggest Rightmove:
- more sellers are wanting to get in early before an upcoming increase in Stamp Duty that will leave buyers with a greater tax liability; and
- an overall increase in the number of homes on the market – great news for buyers, but sellers therefore face greater competition and must tailor accordingly the asking price of properties for sale.
Developer wins appeal over golf course homes plan
Despite strong opposition from local residents, housebuilders Barratt David Wilson Homes has won a planning appeal to build 214 dwellings on a part of the Abbey golf course at Hither Green Lane, in Redditch, south of Birmingham.
On the 18th of February, the BBC reported the planning inspector’s reasoning that the proposed 200 or so new dwellings will help to address the prevailing shortfall in new homes, while also bringing an estimated £5 million of investments into the locality.
