PropVestment launches Princess Road West : 35 Luxury Apartments in Leicester

PropVestment proudly presents the launch for sale to the public of 35 luxury apartments in the heart of Leicester.

Converting the former University of Leicester offices in to contemporary apartments, and retaining the character of period buildings in central Leicester.

For pricing and inquiries email: info@propvestment.com

 

Starting from £95,000

LOCATION

The site is strategically positioned in the heart of Leicester City. It falls under the authority of Leicester City Council.

The site is a few minutes’ walk to the railway station, De Montfort University, Leicester Royal Infirmary, University of Leicester and the pedestrianised Leicester Town Centre.

IBMs new offices that are creating 300 new job is a one-minute walk from the site.

Rail links from Leicester Station offer services to London St Pancras of just over an hour, and about 50 minutes to Birmingham.

 

 

 

 

 


 

 

 

Stamp Duty rise won’t kill property investment

On the 1st of April 2016, the “Landlord Tax” or stamp duty surcharge comes into affect of a 3% surcharge for anyone buying a second home or an investment or buy to let property.

However what will be the impact for the property investor? Will it reduce prices or first time buyers? Will the extra cost be passed on to renters? Will the UK property market crash?

Today the ONS released statistics that property prices are rising 6.7% year on year in 2015, and that is 9.4% in the UK. So in effect and extra 3% is the same as if you delay the purchase of your property in London by 4 months, or alternatively you will cover the cost by the increase in prices within 4 months.

Stamp duty increaseWell this is not exactly the case as usually a buy to let investor puts in about 25% deposit, and stamp duty is not covered by the mortgage value, so really the buyer needs that much extra cash available.

In this case an investor may try to pass on the additional cost to the renter. This will be a completely possible strategy and the property market will allow it. However will this make up the difference. For example a residential property yielding 6%, there for a 3% stamp duty surcharge would mean 6 months rent. If the Landlord increases rents by say 10% then it will take 5 years to recover the surcharge.

But, and its a big but, with the FTSE being volatile and the interest rates not likely to rise anywhere near enough to compete with property, an investors best place to invest is still property.

In conclusion the stamp duty surcharge will not really put investors off, it will just increase rents and increase the tax revenue.  

Stamp duty

Do you want to avoid the stamp duty surcharge?

Look into other options for property investment. Contact us we have a number of opportunities where you can invest in property development deals, with profit shares or fixed incomes. Contact info@propvestment.com

 

Sources:

BBC Article

 

Office to residential conversionx

Office to Residential Conversion made permanent

The Prime Minister announced today that the Permitted Development Rights that enabled office to residential conversion without full planning permission is set to be made permanent. The scheme with initially ran from 2013 to May 2016 will be extended indefinitely.

In other boosts for house building today, the PM is also announcing that a temporary rule introduced in May 2013 allowing people to convert disused offices into homes without applying for planning permission will be made a permanent change – after almost 4,000 conversions were given the go ahead between April 2014 to June this year.

This is great news for potential buyers of homes as well as property developers and all professionals connected to the industry. It will mean an flood of new development sites to the market and an increase in available housing stock. This should start to be realised within 12 to 18 months, the usual length of time required to convert a building.

Office blocks are usually in inner city location or near transport links making them ideal locations for residential units. Perfect for young buyers who rely on these links. Furthermore converted building are typically cheaper than new builds and many often come with a character that new builds just do not.

We at PropVestment are actively looking for office sites to convert into residential units, please email nirav@propvestment.com.

Office to residential conversionx

CDM

CDM Regulations 2015

From 6th April 2015, the Construction (Design and Management) Regulations 2007 were replaced by the Construction (Design and Management) Regulations 2015 (the “Regulations”).

The Regulations are intended to be less bureaucratic than the previous regulations and to improve the planning and management of projects from the start.

CDM changes

The Regulations brought about key changes, which include:

  • Introduction of Principal Designers to replace CDM Co-ordinators
  • Inclusion of domestic clients
  • Clients having to undertake more duties
  • Changes in notification thresholds
  • Requirement for all projects to have a written Construction Phase Plan
  • Abolition of the Approved Code of Practice
  • Contractors and designers are to ensure that they have the necessary skills, knowledge and experience to fulfil their roles and the person appointing them has to satisfy themselves of this also

CDM 2015 creates a new duty holder, the Principal Designer (PD) 

In many cases this will be the architect who on the majority of projects is appointed first by the client but not always. The HSE think that some designers will not want to take on the functions of the PD and many would not be capable of doing so for all but the smallest of projects.

The PD must be a designer as defined in the Regulations, i.e., anyone who as part of their business (a) prepares or modifies a design; or (b) arranges for, or instructs any person under their control to do so.
A “design” is widely defined to include specifications, bills of quantities and calculations prepared for the purposes of a design.

The HSE consider that “Chartered Surveyors and Technicians” are also “designers” under CDM 2015. Equally, anyone who selects a product for use or develops a detailed design which is then manufactured for a project is also treated as a designer according to the guidance.

A six-month transitional period is in place from 6 April – 6 October 2015.

What does this mean for current construction projects during this transitional period?

In this period, special provisions will apply before the Regulations take full effect across the board. Such provisions apply during the transitional period as follows:

  1. Projects where as at 6 April 2015, the Construction Phase has started, no CDM Co-ordinator is in place and where there is more than one contractor:
  • a Principal Designer may be appointed in writing by the Client (but this is not obligatory);
  • a Principal Contractor must be appointed in writing by the Client as soon as reasonably practicable;
  • the Principal Contractor must draw up a Construction Phase Plan, or make arrangements for one to be drawn up as soon as reasonably practicable;
  • where the Client has not appointed a Principal Designer, the Principal Contractor must also prepare the Health and Safety file as soon as reasonably practicable and ensure that it is reviewed, revised and updated from time to time;
  • where a Client has failed to appoint a Principal Contractor, in commercial projects, the Client must fulfil the duties of Principal Contractor and in domestic projects, the Principal Contractor is deemed to be the contractor “in control of the construction phase”.
  1. Projects where as at 6 April 2015, a CDM Co-ordinator has been appointed by the Client and where there is more than one contractor:
  • the CDM Co-ordinator appointment continues until a Principal Designer is appointed by the Client;
  • the deadline for the Client to appoint a Principal Designer is 6 October 2015 (unless the project comes to an end before that date);
  • until such appointment is made, the CDM Co-ordinator will take on additional duties as set out in Schedule 4(5) of the Regulations which largely cover the role of the intended Principal Designer;
  • where the Client fails to appoint a Principal Designer by 6 October 2015, the Client is to take on the responsibilities relating to the Health and Safety Plan and must assist the Principal Contractor in preparing the Construction Phase Plan.
  1. Projects with only one contractor:
  • there is no requirement for the appointment of a Principal Designer;
  • the contractor must draw up a Construction Phase Plan or make arrangements for one to be drawn up as soon as reasonably practicable.

Make sure you are CDM 2015 compliant. These regulation changes effect the smallest projects to the largest. At PropVestment we can advise and recommend professionals who can ensure you are compliant and can take on the Principal Designer role for you.

 

 

UK Property - Budget 2014

#Budget2014 – impact on UK property market

Chancellor George Osborne today showcased the UK Budget for 2014. The main question is how will it impact the UK property market and effect you, the investor. Points of interest are Stamp Duty, Help to Buy, new housing, savings and taxes.

 

Stamp Duty

Stamp Duty Budget 2014Nothing much changes for the average private homeowner, or small time landlord. The big announcement and change comes to close a loophole that many foreign investors used to avoid stamp duty by buying their properties through company ownership. Now there is a 15% stamp duty on purchases over £500,000. This will severely target foreign owned properties in particular in London and South East.

THOUGHTS – Will foreign investors now just flood the UK commercial property market? So is it a good time to get in now and sell in the near future?

Help to Buy

The equity loan scheme known as Help to Buy has been extended on new homes until 2020, with the aim to fill the shortfall in housing and encourage lending from banks and building societies.

In reality this will mean that the construction industry will be boosted until 2020 at the expense of young buyers, who end up buying an inflated prices, and find themselves in a lot of debt. This will keep pressures on house prices up until 2020 too. For the investor it means, get on the property ladder today or expand your portfolio, and if you want an exit do it before 2020. It also means new builds that are eligible for the scheme will be considerably higher priced than old builds, however this will drag the prices of old builds along too.

No mention of any extension to Help to Buy 2, the scheme that was available for non new builds up to £600k.

Housing supply

Ebbsfleet Garden City – 15,000 new homes to be built near the Ebbsfleet international rail terminal, to create a commuting hub. As PropVestment advised a few years ago Ebbsfleet was an investment hot spot and it will only increase more now. With great transport links it will become a thriving part of Kent. However we think the area will now be priced in.

Brent Cross and Barking Riverside in London will also receive new developments and improvements to help aid the capitals housing problems.
UPDATE – There will be 11,000 new homes in Barking Riverside and up to 10,000 in Brent Cross. The regeneration of the infamous Grahame Park estate near Brent Cross will also be brought forward. 

Right to build – New scheme to help people build their own homes. £1.5m allocated, that is pittance really, how many can be supported through this? Although it does sound like an interesting concept.

The chancellor’s target is 200,000 new homes to be built, however many critic suggest that this is still not enough and the housing supply deficit will keep growing. This means by simple economics demand will continue to out strip supply and prices will keep on rising.

Savings & Taxes

A few points are that the zero rate and 40p rate thresholds will rise, increasing affordability. ISA thresholds are increased to £15,000 per person and there are a few other measures to encourage savings. This could have impacts either way, one way is that it will encourage savings so people will be able to build up deposits for buying a property. On the counter if they have saved into ISAs that they do not want to break, it could mean that people will be more reluctant to invest into property. It will depend on person to person.

How will #Budget2014 impact the PropVestor?

UK Property - Budget 2014For the traditional investor it is a fairly positive budget and it will help discourage corporates and foreign investors with the Stamp duty ruling. This will leave more opportunities for private UK based investors.

Help to Buy is contentious but it will keep pressures on house prices until the end of the decade.

PropVestment’s top tip

Get on the property ladder today, do not wait until tomorrow

Buy to Let mortgages

UK Property Market Update – Winter 2013

The UK property bubble is building

  • The average family home is up £5,583 and London properties have increased by more than £7,000.UK property prices went up by £7,430 in October
  • Average sale price in London is now £404,199
  • Help to Buy scheme is inflating prices
  • Rents increase 11% to £785pm, 41% of the average UK wage.

UK rents

UK property Sale prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average UK Property Prices In London, where the average sale price is higher than ever, 14 people compete for every property.

Mortgage applications rose by 6% in October, and almost double 2012 numbers. It comes as the Council of Mortgage Lenders said last week the number of homes sold this year will be more than one million for the first time since the financial crisis began in 2007.

The government Help to Buy scheme is pushing prices up.

Out of the 5,375 sold so far, the highest number of Help to Buy sales have been in Leeds, Wiltshire, Milton Keynes and Reading.

The average price of a UK property bought under the Help to Buy scheme was £194,167, with an average equity loan of £38,703.

UK property transactions

Critics warned the UK-wide second phase of the scheme, which began last month and is not restricted to new-builds, would cause a housing bubble.

It guarantees 15 % of the value of the home loan.

After almost coming off the market, Buy to Let mortgages are also being approved strongly. Landlords and investors are buying up and completing deals to keep up with the increasing rent demand and to cash in on the rental increases. This is a very encouraging sign for property investment.

However as the final graphic shows there is still not enough supply in the market, especially in London where there are almost 3 offers for every sale.

PropVestment’s thoughts

Offers and Sales

Yes the UK property market is picking up and in fact picking up a little too fast. But this is mainly due to the Help to Buy scheme which is resulting in unrealistic implications on price and the market. The only ones to benefit are the banks and house builders. First time buyers, buying under the scheme face higher interest rates compared to traditional mortgage products.   
The market right now is too competitive and sellers can take advantage. We do however have concerns that many first time buyers under Help to Buy will suffer from negative equity in years to come once the Government pulls the plug on the scheme and prices fall back to their realistic, natural and sustainable level.

Buy to Let mortgages

Source: Daily Mail

PropVestment 2013 – UK Property Market Outlook

UK Property 2013 – House Prices, Lending, Supply, Rents…

There is always much speculation about how the UK property market will fair when we start a new year. How will the market correlate to the economy as a whole, and the biggest question of all is whether its recovering from the credit crunch?

  • House Prices
  • Lending
  • Supply
  • Rents

UK House Prices in 2013

House prices are low currently and the advise from PropVestment is that property prices will not stay low forever. Simple demand and supply, population is growing faster than new supply, together with smaller family units means shortage. Further lending is still tight but there is major pressure to improve. If you can afford to buy now, do it.

Today Rightmove are claiming that sellers are pricing 0.2% higher in 2013

UK Property Lending in 2013

Investment property services

Lending to first time home buyers in the UK increased 11% in 2012 compared to 2011, however this is still considerably lower than pre credit crunch. There is constant pressure on lenders to lend more but the criteria remains tight. Hopefully 2013 will mean more realistic and universal schemes rolled out by lenders, with more scope than last years NewBuy and FirstBuy.

Read more

UK Residential Commercial

Happy Diwali Property Investor

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Tesco Mortgage Buy to Let

Supermarket Tesco launches 1.99% Mortgage – every little helps

Tesco Bank launches fixed 1.99% Mortgage

Tesco Mortgage Key Facts

  • Tesco Mortgage Buy to Let1.99% Fixed until end 2014
  • 4.24% There after
  • 4.00% APR
  • £995 Arrangement Fee (£195 Booking Fee, £800 Product fee)
  • 60% Maximum LTV (Loan to Value)
  • More suited for Remortgages than First Timer Buyers

 

Tesco Bank 1.99% Mortgage

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Below market value investment property london

What the Change to Squatters Rights Law Means for Property Owners

Below market value investment property london

The controversial and much debated Squatters Rights Laws have, as of 31st September 2012, been amended to offer more protection to property owners.  First introduced in section 6 of the Criminal Law Act 1977, the laws were designed to prevent landlords from evicting tenants by use of violence or force.  They dictate that anyone gaining entry to a property against the wishes of the occupier, including the owner of the property, is in most instances committing a criminal offence.

Whilst the intentions of the Squatters Rights Laws may have been honourable, they have meant that the homeless have been able to take advantage of unoccupied properties and a report by charity Crisis in 2011 revealed that 39% of homeless people had resorted to squatting at some point.  In order to lawfully remove squatters, landlords have been left facing a legal process that can costs thousands and take months.  Until now that is.

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