The property market has started to come alive in August with more activity both in sales and purchases.
However, sellers still seem to have their pick of buyers for each property and as a company, we are continuing our efforts to increase our capacity by:
• Building relationships with new agents
• Building relationships with other property professionals in the industry
• Exploring opportunities to deliver our service in another city
Buy to Let Sales Update
While there are more properties coming to the market now, it is still a seller’s market as Phase 2 of the stamp duty holiday (for purchases up to £250k) doesn’t end until 30th September.
We expect that once people come back from their summer breaks, they will start to re-consider their living situations, which will start to increase the supply of properties. However, many will be waiting until after the end of the furlough scheme, when they have more certainty about their jobs, to action the decisions they make.
As per our comments last month, we expect that those people speculating a reduction in property prices (or an all out property crash) will be sorely disappointed, especially in the £100-200k price bracket.
As a result, we continue to be bullish in our expectation of the property market’s overall performance.
Against the backdrop of high inflation, it’s time to get your money into tangible, inflation-Proof assets now.
Shiv Haria, Lifestyle Property People
Leeds Buy to Let Mortgage Update
August has seen a little bit of a return to normality in the mortgage market.
A number of lenders have re-entered the market with attractively priced products and a clear intention to lend more. Some lenders have increased their loan to values (LTV) to 80%, meaning you can borrow more, and others are loosening their criteria for applicants.
The mortgage interest rates for BTL properties are excellent! At 75% LTV, 2 year fixed rates in personal names are as low as 1.5% and around 2.6% if purchasing in a limited company (subject to status).
However, it is prudent to remember that whilst the headline rates look extremely attractive, it is prudent to consider the overall cost of the mortgage, as lender fees have crept up for limited company purchases.
*rates correct at time of article creation
Bhaven Ondhia – 1st Financial Foundations
Leeds Buy to Let Lettings Update
The Leeds lettings market is currently very buoyant and there are simply not enough properties for the number of tenants looking. Every property we list at the moment receives multiple applications and is let within a week!
Similar to June & July, the most in demand properties tend to be 2-3 bedroom family homes with a garden and a lot of families are taking the summer holidays as an opportunity to move home without disrupting the school year. We have also had an influx of working professionals moving out of the city centre in search of more space, as more and more companies normalise working from home.
Landlords that can accommodate these types of renters are in a great position and are achieving longer tenancy terms with higher-than-expected rents!
May-September is our busiest time in the Lettings industry and this year is set to be no different. We believe the market is going to remain strong into September.
Rebecca Taylor – Linley & Simpson
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