Investors Blog
2013-05-16 10:49:00
Buy-to-let property investment has hit the headlines of property blogs quite a lot over the last few days - and the stories have been about more than the likes of new mortgage rates.
In fact, writers have urged potential landlords to exercise caution when it comes to choosing the correct mortgage product for an investment and to find a trustworthy financial adviser. At this time, landlords-to-be are falling prey to deals that quite simply sound too good to be true, offering them an investment without having to pay a deposit. What happens then quite often involves applying for a mortgage stating a higher property value than what is actually being paid.
If the deal goes ahead, the landlord effectively defrauds their mortgage provider. If you as the landlord are then audited at a later date, you may well be in for bigger problems?
So how do you prevent falling victim to this and similar scams? First of all, you cannot invest in property without having money to put down a deposit. There are no 100% buy-to-let mortgages available; in fact, lenders tend to look for higher deposits for a buy-to-let property. Second, insist on transparency throughout the purchase process. Use a reputable solicitor and financial adviser and ask for recommendations if you're unsure.
Perhaps the most important thing to consider before investing is that you do actually have the funds available to buy the property using a sensible method of finance. Repossessions among buy-to-let landlords have remained steady at around one in five repossessions for a few years and this year's figures suggest the same.
However, with numbers of first-time landlords continuing to rise and more people considering long-term renting a viable alternative to getting a foot on the property ladder, it will be interesting to see how these figures change in the future.
In fact, writers have urged potential landlords to exercise caution when it comes to choosing the correct mortgage product for an investment and to find a trustworthy financial adviser. At this time, landlords-to-be are falling prey to deals that quite simply sound too good to be true, offering them an investment without having to pay a deposit. What happens then quite often involves applying for a mortgage stating a higher property value than what is actually being paid.
If the deal goes ahead, the landlord effectively defrauds their mortgage provider. If you as the landlord are then audited at a later date, you may well be in for bigger problems?
So how do you prevent falling victim to this and similar scams? First of all, you cannot invest in property without having money to put down a deposit. There are no 100% buy-to-let mortgages available; in fact, lenders tend to look for higher deposits for a buy-to-let property. Second, insist on transparency throughout the purchase process. Use a reputable solicitor and financial adviser and ask for recommendations if you're unsure.
Perhaps the most important thing to consider before investing is that you do actually have the funds available to buy the property using a sensible method of finance. Repossessions among buy-to-let landlords have remained steady at around one in five repossessions for a few years and this year's figures suggest the same.
However, with numbers of first-time landlords continuing to rise and more people considering long-term renting a viable alternative to getting a foot on the property ladder, it will be interesting to see how these figures change in the future.
Posted by Cullen Property
2013-05-07 11:14:00
Since the beginning of April, the financial services industry is being regulated by a new government agency, the Financial Conduct Authority (FCA).
The FCA supercedes the Financial Services Authority (FSA) and regulates companies providing financial services in the UK. Their remit is to advise customers on which providers to trust, allowing you to conduct your financial affairs with confidence.
Their website, www.fca.org.uk, currently holds information for consumers as well as companies, highlighting spams and explaining complaints and compensation procedures.
Just as the new body gets up and running, its Practicioner Panel, which is headed up by nationwide Chief Exec Graham Beale, has warned that the new body should not over-react to market problems, but also needs to improve communications with the firms it regulates.
It'll be interesting to see how the new agency develops over the next few months.
The FCA supercedes the Financial Services Authority (FSA) and regulates companies providing financial services in the UK. Their remit is to advise customers on which providers to trust, allowing you to conduct your financial affairs with confidence.
Their website, www.fca.org.uk, currently holds information for consumers as well as companies, highlighting spams and explaining complaints and compensation procedures.
Just as the new body gets up and running, its Practicioner Panel, which is headed up by nationwide Chief Exec Graham Beale, has warned that the new body should not over-react to market problems, but also needs to improve communications with the firms it regulates.
It'll be interesting to see how the new agency develops over the next few months.
Posted by Cullen Property
2013-05-01 15:56:00
Four bedroom properties have come top in Edinburgh in Citylets' Quarterly Rental Report, from an investor's point of view.
Those properties, often rented out to students, are proving to be in high demand with 36% rented within one week and 80% rented within one month of coming onto the market. Rents for those larger flats increased by 6.9%, well above the national average of 1.7% which is in line with inflation.
Are Edinburgh rents exploding, possibly as much as data we analysed yesterday is suggesting? Not necessarily. The developments are a reflection of Edinburgh's continued popularity with students (numbers have been growing for a few years) and their demands for high-quality flats.
At the same time, more and more landlords have realised that high-quality properties will attract more interest and will therefore be let more quickly. And whilst we have seen an increase in this report, the laws of supply and demand will help ensure that flats remain affordable.
Posted by Cullen Property
2013-04-30 14:58:00
A report published today suggests that rents rose by over 3% over the last quarter whilst tenant incomes appear to have risen by less than 1% over the same period. The data was collected by HomeLet for the company's quarterly rental index, but let's have a look beyond the headline.
According to the story, the rental increase is less than it has been in previous years, which suggests a slow down in the development of rents for private rented property. However, the authors also hint at a decrease in the number of private rented properties available.
They may have a point here, especially when you add the news from the Land Registry which today announced a decrease in house sales between October and January. Not exactly the same period, but relatively similar nonetheless.
What's our take on it? It's quite simple, really. Prime residential property available for rent will always relatively high rents. However, tenants need to be able to afford the property they live in in the longer term - both when it comes to the rent as well as other monthly outgoings such as utilities. As a landlord with prime property, it is essential - and only fair to both parties - to check that you are renting the property to someone who can afford it.
Will rents continue to rise? This depends on supply and demand and will vary dramatically between different cities. In Edinburgh, demand for high quality lets for students and professionals continues to grow year on year which suggests that rents may continue to rise. However, more properties are becoming available, meaning supply is growing at the same time as demand.
The conclusion? At this point it looks like there's no need to panic just yet - at least not in Edinburgh.
According to the story, the rental increase is less than it has been in previous years, which suggests a slow down in the development of rents for private rented property. However, the authors also hint at a decrease in the number of private rented properties available.
They may have a point here, especially when you add the news from the Land Registry which today announced a decrease in house sales between October and January. Not exactly the same period, but relatively similar nonetheless.
What's our take on it? It's quite simple, really. Prime residential property available for rent will always relatively high rents. However, tenants need to be able to afford the property they live in in the longer term - both when it comes to the rent as well as other monthly outgoings such as utilities. As a landlord with prime property, it is essential - and only fair to both parties - to check that you are renting the property to someone who can afford it.
Will rents continue to rise? This depends on supply and demand and will vary dramatically between different cities. In Edinburgh, demand for high quality lets for students and professionals continues to grow year on year which suggests that rents may continue to rise. However, more properties are becoming available, meaning supply is growing at the same time as demand.
The conclusion? At this point it looks like there's no need to panic just yet - at least not in Edinburgh.
Posted by Cullen Property
2013-04-24 15:48:00
Research conducted by HSBC is showing that Southampton is the top spot for buy-to-let investment in England and Wales. Shame the bank didn't include Scotland in their study, but nonetheless, the results are good news for Edinburgh.
Looking at the top five cities in the survey, they all produce rental yields between 7 and 8%, have a lot of private rented accommodation available and the initial outlay for the investment is not too high.
Comparing this to Edinburgh, it's obvious that the city is even better placed than its competitors 'down South'. Depending on the property purchased, net yields regularly break the 7% mark, with some of them as high as 12%.
Properties available for investors include highly sought after traditional tenements, some of which may be in need of refurbishment. For investors, this is often an advantage, allowing them to unleash the property's full potential as a private let.
What's more, Edinburgh has a large population of students and professionals who are keen to rent high-quality properties and are specifically looking for good value rather than the cheapest monthly rate.
And how about the initial investment? Edinburgh may not be cheap, but it certainly offers easier access to investors than London does. Looking at London's affluent boroughs of Hammersmith & Fulham and Kensington & Chelsea, which generate returns between 3 and 3.5% respectively, there is simply no comparison.
For more information about investment properties in Edinburgh, contact us directly.
Looking at the top five cities in the survey, they all produce rental yields between 7 and 8%, have a lot of private rented accommodation available and the initial outlay for the investment is not too high.
Comparing this to Edinburgh, it's obvious that the city is even better placed than its competitors 'down South'. Depending on the property purchased, net yields regularly break the 7% mark, with some of them as high as 12%.
Properties available for investors include highly sought after traditional tenements, some of which may be in need of refurbishment. For investors, this is often an advantage, allowing them to unleash the property's full potential as a private let.
What's more, Edinburgh has a large population of students and professionals who are keen to rent high-quality properties and are specifically looking for good value rather than the cheapest monthly rate.
And how about the initial investment? Edinburgh may not be cheap, but it certainly offers easier access to investors than London does. Looking at London's affluent boroughs of Hammersmith & Fulham and Kensington & Chelsea, which generate returns between 3 and 3.5% respectively, there is simply no comparison.
For more information about investment properties in Edinburgh, contact us directly.
Posted by Cullen Property
2013-04-10 12:21:00
Edinburgh student property continues to prove a solid, reliable investment with (nearly) all of Cullen's managed properties for the student market letting within weeks of being released. In fact, many of the flats in the most desirable areas such as Marchmont and Bruntsfield were let within hours of the first viewing. So what makes student property in Edinburgh so popular?
From an investor's and landlord's point of view, the obvious draw is the rental yield which can reach up to 12% and is typically in the region of 7%. What's more, the capital required to invest makes the city a lot more accessible to investors than, say, London. Add to that an ever-growing student population and it's easy to see why the market is looking good.
Does that mean anything rents? No, definitely not. Buying 'any old property' and hoping students will live in it, won't work. It's about knowing the most sought-after areas, often closely located to universities as well as amenities, shops, bars and cafes, and the most sought-after property types. Many Edinburgh students are keen to share a spacious, traditional tenement flat with their friends, making three to five and even six bedrooms popular.
Edinburgh students want and can afford quality, so it pays to refurbish and furnish a property to make it attractive for prospective tenants. It would be hard to decide whether the city is a tenant's or a landlord's market - it really is a bit of both.
From a tenant's point of view, the city ticks even more boxes, including a choice of highly regarded universities, paired with unparalleled cultural offerings in a beautiful city setting. Then there is the availability of desirable traditional properties in great locations and while there is no shortage of student properties there is certainly room in the market for more high quality flats in popular areas.
From an investor's and landlord's point of view, the obvious draw is the rental yield which can reach up to 12% and is typically in the region of 7%. What's more, the capital required to invest makes the city a lot more accessible to investors than, say, London. Add to that an ever-growing student population and it's easy to see why the market is looking good.
Does that mean anything rents? No, definitely not. Buying 'any old property' and hoping students will live in it, won't work. It's about knowing the most sought-after areas, often closely located to universities as well as amenities, shops, bars and cafes, and the most sought-after property types. Many Edinburgh students are keen to share a spacious, traditional tenement flat with their friends, making three to five and even six bedrooms popular.
Edinburgh students want and can afford quality, so it pays to refurbish and furnish a property to make it attractive for prospective tenants. It would be hard to decide whether the city is a tenant's or a landlord's market - it really is a bit of both.
From a tenant's point of view, the city ticks even more boxes, including a choice of highly regarded universities, paired with unparalleled cultural offerings in a beautiful city setting. Then there is the availability of desirable traditional properties in great locations and while there is no shortage of student properties there is certainly room in the market for more high quality flats in popular areas.
Posted by Cullen Property
2013-03-28 11:39:00
If you followed news about the city of Edinburgh last year, you may have come across stories about the Property Conservation Department at the City of Edinburgh Council.
Charged with managing repairs that applied to all flats in traditional tenements or any other shared properties, the department was found to have been favouring certain contractors as well as overcharging owners and much more. The wrongdoing was so substantial that it was decided to get rid of the whole department.
However, we felt strongly that Edinburgh residents and landlords needed some kind of authority to co-ordinate repairs, as it would simply be unrealistic and unfair to leave this work to individual home owners. Ironically, it is the council that is best placed to deal with co-ordinating those repairs as it holds data of registered landlords, council tax payers (i.e. tenants) and council tenants alike and should therefore be in a position to contact all involved easily.
Be that as it may, it is the council that has now announced its Shared Repairs Service is due to launch on Tuesday tasked with providing "advice and information to owners through the process of organising repairs from finding a contractor to arranging payment".
The council also retains its powers of statutory notice, maintaining the current 24/7 emergency repairs service. Plus there is talk about expanding the council's responsibilities once more over the next few months.
So what does it mean for you? As a landlord, we will look after your property, including any liaison with other landlords in the same stair. As a home owner in Edinburgh, you have an instance for support once more and it will hopefully prove to be more accountable than its predecessor.
However, we felt strongly that Edinburgh residents and landlords needed some kind of authority to co-ordinate repairs, as it would simply be unrealistic and unfair to leave this work to individual home owners. Ironically, it is the council that is best placed to deal with co-ordinating those repairs as it holds data of registered landlords, council tax payers (i.e. tenants) and council tenants alike and should therefore be in a position to contact all involved easily.
Be that as it may, it is the council that has now announced its Shared Repairs Service is due to launch on Tuesday tasked with providing "advice and information to owners through the process of organising repairs from finding a contractor to arranging payment".
The council also retains its powers of statutory notice, maintaining the current 24/7 emergency repairs service. Plus there is talk about expanding the council's responsibilities once more over the next few months.
So what does it mean for you? As a landlord, we will look after your property, including any liaison with other landlords in the same stair. As a home owner in Edinburgh, you have an instance for support once more and it will hopefully prove to be more accountable than its predecessor.
Posted by Cullen Property
2013-03-19 12:06:00
It's the property story of the day - re-mortgaging activity has perked up by 17% in February, according to the Mortgage Advice Bureau.
After seeing increased activity in the first-time-buyer and buy-to-let markets for a few months now, re-mortgaging finally appears to be catching up. The source of the change appears to be the continuing drop in interest rates, which many believe is due to the introduction of the Funding for Lending scheme last August.
Similar to previous months, those looking for a better deal are keen to secure a fixed rate mortgage with more than 90% opting for two-, three- and five-year rates.
Good news also for buy-to-let investors where Aldermore have given mortgage distributors 3mc access to a deal starting from 4.8% interest at up to 70% loan-to-value. It's available on loans between £50,000 and £500,000. Certainly one to consider if you are planning on investing in property at the moment.
Whilst our team doesn't directly arrange finance for you, we are happy to put you in contact with one of our trusted partners to help find the best solution for you.
After seeing increased activity in the first-time-buyer and buy-to-let markets for a few months now, re-mortgaging finally appears to be catching up. The source of the change appears to be the continuing drop in interest rates, which many believe is due to the introduction of the Funding for Lending scheme last August.
Similar to previous months, those looking for a better deal are keen to secure a fixed rate mortgage with more than 90% opting for two-, three- and five-year rates.
Good news also for buy-to-let investors where Aldermore have given mortgage distributors 3mc access to a deal starting from 4.8% interest at up to 70% loan-to-value. It's available on loans between £50,000 and £500,000. Certainly one to consider if you are planning on investing in property at the moment.
Whilst our team doesn't directly arrange finance for you, we are happy to put you in contact with one of our trusted partners to help find the best solution for you.
Posted by Cullen Property
2013-03-12 10:40:00
We've come across a couple of interesting stories on the property market, both in Edinburgh and further afield this morning.
It's mixed news for the Scottish capital where house prices have fallen by 5% on average. Having said that, a number of properties are not only retaining their value but have actually increased in price over the past six months. There's also some good news for first time buyers as starter flats in a number of areas are becoming more affordable. Buy-to-let properties have grown in popularity, too, thanks to a strong rental market driven by both students and professionals.
Across the UK, house sales have hit a two and a half year high in February, according to the RICS. The organisation's members have seen sales gradually increasing over the last few months.
We believe the good news are down to a number of factors coming together: potential buyers are ready to snap up a deal now, many potential sellers have re-evaluated their expectations and are willing to accept a more realistic sales price. Crucially, however, the banks have started lending at more accessible rates, bringing mortgages within easier reach of more potential buyers. It's a great start to the year and should mean more good news for potential investors over the coming months.
It's mixed news for the Scottish capital where house prices have fallen by 5% on average. Having said that, a number of properties are not only retaining their value but have actually increased in price over the past six months. There's also some good news for first time buyers as starter flats in a number of areas are becoming more affordable. Buy-to-let properties have grown in popularity, too, thanks to a strong rental market driven by both students and professionals.
Across the UK, house sales have hit a two and a half year high in February, according to the RICS. The organisation's members have seen sales gradually increasing over the last few months.
We believe the good news are down to a number of factors coming together: potential buyers are ready to snap up a deal now, many potential sellers have re-evaluated their expectations and are willing to accept a more realistic sales price. Crucially, however, the banks have started lending at more accessible rates, bringing mortgages within easier reach of more potential buyers. It's a great start to the year and should mean more good news for potential investors over the coming months.
Posted by Cullen Property
2013-02-12 16:27:00
If you felt that last year brought a lot of contradictory news about property, mortgages, first time buyers etc, this year seems to be shaping up to bring us even more stories.
According to LSL properties, the number of homeowners in Britain has dropped to a 25 year low. Despite remaining in a majority of just over 65% over long and short term renters, apparently owning a home has got further out of reach for many, often due to the high deposits required.
At the same time, there are green shoots as usual - according to e.surv, part of LSL, the number of mortgage approvals this past month are predicted to be hitting a four year high. The prediction is based on the company's own workload. Whilst it is good news, e.surv believe that the increase is due to borrowers signing on the dotted line of high loan-to-value mortgages, so will still not spell good news for first time buyers.
Confirming the observations above, the Mortgage Advice Bureau even talks of a 'fixed rate mortgage war' having been declared in the 60 - 65% LTV bracket. Good news for those with cash available for this kind of deposit.
What does it all mean for property investors though? What reads like bad news for potential first time buyers, means that there continues to be a substantial number of people who will be looking to rent in the long term.
So, this is a good time to invest in property and become a landlord. Having said that, it is worth investing in quality property and maintaining it well, as these properties will stand the test of time - no matter what tomorrow's news may bring.
According to LSL properties, the number of homeowners in Britain has dropped to a 25 year low. Despite remaining in a majority of just over 65% over long and short term renters, apparently owning a home has got further out of reach for many, often due to the high deposits required.
At the same time, there are green shoots as usual - according to e.surv, part of LSL, the number of mortgage approvals this past month are predicted to be hitting a four year high. The prediction is based on the company's own workload. Whilst it is good news, e.surv believe that the increase is due to borrowers signing on the dotted line of high loan-to-value mortgages, so will still not spell good news for first time buyers.
Confirming the observations above, the Mortgage Advice Bureau even talks of a 'fixed rate mortgage war' having been declared in the 60 - 65% LTV bracket. Good news for those with cash available for this kind of deposit.
What does it all mean for property investors though? What reads like bad news for potential first time buyers, means that there continues to be a substantial number of people who will be looking to rent in the long term.
So, this is a good time to invest in property and become a landlord. Having said that, it is worth investing in quality property and maintaining it well, as these properties will stand the test of time - no matter what tomorrow's news may bring.
Posted by Cullen Property
2013-02-05 17:26:00
Interesting news on the Tenancy Deposit Scheme side of things - TDS has only been mandatory for a few months in Scotland and the schemes are now being launched across the water in Northern Ireland.
Having officially been launched last November, deposit protection will become mandatory across the province from 1 April 2013. Like in Scotland, the aim is to protect tenants from rogue landlords and making it easier and safer to store and return deposits.
Whilst many tenants in Scotland are still unaware of the (not so) new legislation, Northern Irish The Dispute Service are planning a roadshow over the next few months to inform landlords of their new obligations and tenants of their rights.
Having officially been launched last November, deposit protection will become mandatory across the province from 1 April 2013. Like in Scotland, the aim is to protect tenants from rogue landlords and making it easier and safer to store and return deposits.
Whilst many tenants in Scotland are still unaware of the (not so) new legislation, Northern Irish The Dispute Service are planning a roadshow over the next few months to inform landlords of their new obligations and tenants of their rights.
Posted by Cullen Property
2013-01-29 16:01:00
Over the past year, many stories on landlords and buy-to-let property investors dealt with newly introduced regulation, aimed to help 'good landlords' and prevent so-called 'rogue landlords' from operating. Do we need more regulation? No, we don't. What we need is proper enforcement of the existing regulations as opposed to more registration, regulation and landlord-related schemes.
The idea of finding and getting rid of 'rogue landlords' is a bit old hat: looking back over the past decade or so a few examples come to mind. In 2006, the Scottish Government introduced the Landlord Registration Scheme (LRS), making it mandatory for landlords to register their properties. Ongoing changes to Scotland's Private Rented Housing Panel (PRHP) are another example.
Figures obtained by the Scottish Conservatives now show that over the past two years, only 11 rogue landlords were 'found out' under the LRS regulations. Since the scheme started, 200,000 landlords registered successfully, whilst 40 'rogues' have been revealed. Hardly an impressive success rate. All of this comes at a cost of £11.2m to the registered landlords. Annual running fees for the scheme's website alone are estimated to be around £300,000.
The Scottish Conservatives call the scheme "farcical" - and I have to admit I agree. There is simply no benefit in tight regulations when there is no provision for policing and enforcing the scheme. To a degree, this is where the new Tenancy Deposit Scheme comes into play.
In theory, only registered landlords can place their tenants' deposits with one of the approved schemes. If the deposit hasn't been placed by a landlord within a set timeframe, tenants have the right to take their landlord to court and may be awarded up to three times the value of their deposit. In theory, this should encourage landlords to register, or should it?
As with so many other bits of regulations in our industry, there is no system of policing the regulation. In fact, the system relies on the tenant to (a) know about the regulations and their existing rights and (b) take the initiative and do something about them. It's unrealistic and not very fair on the tenant.
What do we need? We do need regulation, but just as much as that, we need the Scottish Government, local councils or an independent body to enforce the rules they make. Otherwise, all regulation is just a waste of money.
Posted by Cullen Property
2013-01-24 10:10:00
We're proud to announce that Cullen Property has been chosen wo provide a full management service to the newly launched ESPC Lettings division. Click here for more information.
Posted by Cullen Property
2012-12-12 12:55:00
A recent survey found that almost 20% of landlords are not properly ensuring their rented properties, instead relying on standard home insurance policies. It seems like a simple way to cover yourself, but there are a number of pitfalls.
Read the small print and you will see that not only do most of those policies specifically exclude properties permanently rented out, but they're also missing a few areas of cover essential to landlords.
One of the most likely issues with rented property is water ingress or flooding which may require a tenant to be housed elsewhere until the problem is fixed. This is something landlord policies will cover, but ordinary home insurance usually doesn't.
A solid landlord insurance policy will also cover public liability insurance for the landlord. Why do you need that? It covers injuries sustained on your property and damage to neighbouring property. In practice, the Cullen Property team has seen claims varying from a tenant attempting to pull cupboards of a wall, which fell onto him and hurt his back to a postman slipping and falling in a communal stairway and claiming against every flat in the stairway.
As a worst case scenario, regular home insurers may refuse claims outright when they discover a property has been rented out without their permission.
Looking on the bright side, there are plenty of great deals available as it's a very competitive market. Shop around for a good deal - it won't take too long.
Read the small print and you will see that not only do most of those policies specifically exclude properties permanently rented out, but they're also missing a few areas of cover essential to landlords.
One of the most likely issues with rented property is water ingress or flooding which may require a tenant to be housed elsewhere until the problem is fixed. This is something landlord policies will cover, but ordinary home insurance usually doesn't.
A solid landlord insurance policy will also cover public liability insurance for the landlord. Why do you need that? It covers injuries sustained on your property and damage to neighbouring property. In practice, the Cullen Property team has seen claims varying from a tenant attempting to pull cupboards of a wall, which fell onto him and hurt his back to a postman slipping and falling in a communal stairway and claiming against every flat in the stairway.
As a worst case scenario, regular home insurers may refuse claims outright when they discover a property has been rented out without their permission.
Looking on the bright side, there are plenty of great deals available as it's a very competitive market. Shop around for a good deal - it won't take too long.
Posted by Cullen Property
2012-11-14 13:25:00
Are you ready to change how you deal with your tenants' deposits?
As of today, Scottish landlords are obliged to place their tenants' deposits in one of three approved tenancy deposit schemes.
These schemes, which have been the norm in England and Wales since 2006, are said to offer tenants the security of knowing their deposit is kept safe for the duration of their stay in a property. Should disputes arise when a tenant moves out, they provide an independent person to decide what repairs need to be done following 'ill treatment' of a property and what constitutes fair wear and tear.
In Scotland, landlords have so far been obliged to keep their tenants' deposits safe, but it was up to them how they dealt with deposits in practice.
The Scottish Government has approved three tenancy deposit schemes and as of today, all landlords need to have transferred their deposits into a scheme of their choice.
It's come as a surprise to us how little information has been made available about the impending changes, especially as consequences for landlords could be drastic and they could be fined up to three times the value of the deposit for missing today's deadline.
A recent ruling has shown that the courts are prepared to be strict on the issue, imposing the maximum penalty on a residential landlord for 'minor' omissions.
We're not about to start scare-mongering. However, this is a huge change for landlords, so if you do need additional information, please contact us directly.
As of today, Scottish landlords are obliged to place their tenants' deposits in one of three approved tenancy deposit schemes.
These schemes, which have been the norm in England and Wales since 2006, are said to offer tenants the security of knowing their deposit is kept safe for the duration of their stay in a property. Should disputes arise when a tenant moves out, they provide an independent person to decide what repairs need to be done following 'ill treatment' of a property and what constitutes fair wear and tear.
In Scotland, landlords have so far been obliged to keep their tenants' deposits safe, but it was up to them how they dealt with deposits in practice.
The Scottish Government has approved three tenancy deposit schemes and as of today, all landlords need to have transferred their deposits into a scheme of their choice.
It's come as a surprise to us how little information has been made available about the impending changes, especially as consequences for landlords could be drastic and they could be fined up to three times the value of the deposit for missing today's deadline.
A recent ruling has shown that the courts are prepared to be strict on the issue, imposing the maximum penalty on a residential landlord for 'minor' omissions.
We're not about to start scare-mongering. However, this is a huge change for landlords, so if you do need additional information, please contact us directly.
Posted by Cullen Property
2012-11-06 14:28:00
Today, the Co-op has announced it's preparing to make 90% LTV mortgages available to first time buyers. Part of the Co-operative's commitment to lend £360million to first time buyers this year, it's also another definite step forward for the mortgage market.
Is it a step in the right direction, though? A lot of that will depend on how first time buyers are assessed and how conservatively the properties they are interested in are valued. Add to that the length of the mortgage deal, the security of the buyer's job etc and it only becomes harder to make an assessment.
If today's news from Castle Trust are anything to go by, first time buyers are still being rigorously assessed and 60% have been turned down for a mortgage. Good news for landlords to a degree as people continue to stay in the rental market.
Also in mortgage news, HSBC has increased its share of the mortgage market by nearly three percent over the first nine months of this year. Altogether, whether it's in residential or buy-to-let mortgages - and we've said this in this blog before, raised activity across the property industry can only be good for all of us.
Is it a step in the right direction, though? A lot of that will depend on how first time buyers are assessed and how conservatively the properties they are interested in are valued. Add to that the length of the mortgage deal, the security of the buyer's job etc and it only becomes harder to make an assessment.
If today's news from Castle Trust are anything to go by, first time buyers are still being rigorously assessed and 60% have been turned down for a mortgage. Good news for landlords to a degree as people continue to stay in the rental market.
Also in mortgage news, HSBC has increased its share of the mortgage market by nearly three percent over the first nine months of this year. Altogether, whether it's in residential or buy-to-let mortgages - and we've said this in this blog before, raised activity across the property industry can only be good for all of us.
Posted by Cullen Property
2012-11-01 20:55:00
Whether you've bought a rental property as an investment from day one or are now finding yourself a more or less reluctant landlord, who do you trust with your property?
We're predicting that there will be a bit of a change in the lettings & management 'scene' following new legislation that outlaws any premiums charged to (prospective) tenants - except deposit and rent.
What that means for lettings agencies is that they need to look at covering their costs elsewhere - or cutting their service to you. Whilst higher charges to you as the landlord might not sound like a great option, don't forget the alternative may be that your property is less well looked after.
Scare mongers, I hear you say! Far from it, but now is the time to ask your lettings agent how they are adjusting to the situation. To find out about our solution, visit us at the National Landlord Day at Edinburgh's Our Dynamic Earth on Tuesday, 6 November or drop us a line.
We're predicting that there will be a bit of a change in the lettings & management 'scene' following new legislation that outlaws any premiums charged to (prospective) tenants - except deposit and rent.
What that means for lettings agencies is that they need to look at covering their costs elsewhere - or cutting their service to you. Whilst higher charges to you as the landlord might not sound like a great option, don't forget the alternative may be that your property is less well looked after.
Scare mongers, I hear you say! Far from it, but now is the time to ask your lettings agent how they are adjusting to the situation. To find out about our solution, visit us at the National Landlord Day at Edinburgh's Our Dynamic Earth on Tuesday, 6 November or drop us a line.
Posted by Cullen Property
2012-11-01 14:52:00
It's less than a week until the doors open to the Scottish Association of Landlords' National Landlord Day next Tuesday, 6 November.
There's hardly ever been a better time for the UK's largest national landlord conference: whilst the private rental market continues to grow, a few new developments and regulations mean landlords have got to make sure they have the right information available to them.
Over the next few days, we'll be highlighting some of those developments in the market. If you'd like more information, please just come and see one of our team at the National Landlord Day on Tuesday.
The biggest change facing Scottish landlords are the new Tenancy Deposit Schemes (TDS). Introduced over the summer to safeguard tenants' deposits, many landlords have not had to act on TDS until this month, when placing deposits with your chosen TDS operator becomes mandatory for all deposits received from 7 March 2011 to 2 October 2012.
If your tenant has moved in since then, the deposit must be placed within 30 working days of the lease commencing. But where to place it? Three schemes have been approved by the Scottish Government, each offering different benefits.
If all this sounds somewhat confusing, please contact us or see us on Tuesday and we'll be happy to advise you on your specific situation.
There's hardly ever been a better time for the UK's largest national landlord conference: whilst the private rental market continues to grow, a few new developments and regulations mean landlords have got to make sure they have the right information available to them.
Over the next few days, we'll be highlighting some of those developments in the market. If you'd like more information, please just come and see one of our team at the National Landlord Day on Tuesday.
The biggest change facing Scottish landlords are the new Tenancy Deposit Schemes (TDS). Introduced over the summer to safeguard tenants' deposits, many landlords have not had to act on TDS until this month, when placing deposits with your chosen TDS operator becomes mandatory for all deposits received from 7 March 2011 to 2 October 2012.
If your tenant has moved in since then, the deposit must be placed within 30 working days of the lease commencing. But where to place it? Three schemes have been approved by the Scottish Government, each offering different benefits.
If all this sounds somewhat confusing, please contact us or see us on Tuesday and we'll be happy to advise you on your specific situation.
Posted by Cullen Property
2012-10-23 14:48:00
Hot on the heels of our recent stories about movement in the mortgage market and more finance available to landlords, it looks like these green shoots were far more than one-off good news stories for property investors and other buyers.
First of all, the number of house sales and purchases seems to be increasing steadily. Over the last couple of days alone, the British Bankers' Association, Lloyds TSB and The Land Registry have published statistics for England and Wales. Whilst the individual numbers vary, all report an increase in mortgage approvals and the number of transactions.
According to the Council for Mortgage Lenders (CML), remortgaging figures are on their way up as well. The CML published its estimate for September which shows a near 10% increase on August. Having said that, remortgaging is still noticeably lower than it was this time last year. However, CML do expect the upwards trend to continue.
And in more upbeat news, Halifax has joined the ranks of banks and building societies who have recently dropped their mortgage interest rates for first time buyers and remortgaging, offering up to 90% LTV for first timers.
We've said it before in this blog - whilst the good news in the mortgage market have only spread slightly into the buy-to-let side of the market, they are showing a trend towards more choice in mortgage finance, which can only be good news.
First of all, the number of house sales and purchases seems to be increasing steadily. Over the last couple of days alone, the British Bankers' Association, Lloyds TSB and The Land Registry have published statistics for England and Wales. Whilst the individual numbers vary, all report an increase in mortgage approvals and the number of transactions.
According to the Council for Mortgage Lenders (CML), remortgaging figures are on their way up as well. The CML published its estimate for September which shows a near 10% increase on August. Having said that, remortgaging is still noticeably lower than it was this time last year. However, CML do expect the upwards trend to continue.
And in more upbeat news, Halifax has joined the ranks of banks and building societies who have recently dropped their mortgage interest rates for first time buyers and remortgaging, offering up to 90% LTV for first timers.
We've said it before in this blog - whilst the good news in the mortgage market have only spread slightly into the buy-to-let side of the market, they are showing a trend towards more choice in mortgage finance, which can only be good news.
Posted by Cullen Property
2012-10-16 13:54:00
One of the UK's newest banks, Shawbrook, has not only broken even after just one year in business, but they have also teamed up with The Loan Engine to offer short term secured loans.
Buy-to-let investors are among their key target markets and among the products specifically developed for this audience are: loans for investors looking to buy, refurbish or release equity from the after-works value of a property as well as short-term loans for acquisitions such as at auction. Light refurbishment work can also be financed through one of the bank's loans.
After a number of stories on mortgage funding becoming more easily available to home buyers, this may be the beginning of further good news for the BTL market. Watch this space!
Buy-to-let investors are among their key target markets and among the products specifically developed for this audience are: loans for investors looking to buy, refurbish or release equity from the after-works value of a property as well as short-term loans for acquisitions such as at auction. Light refurbishment work can also be financed through one of the bank's loans.
After a number of stories on mortgage funding becoming more easily available to home buyers, this may be the beginning of further good news for the BTL market. Watch this space!
Posted by Cullen Property
2012-10-11 14:12:00
If the mortgage market is anything to go by we should expect movement across all of the property market soon. By movement, we mean an increase in the number of transactions per month, year etc.
What makes us think that? Quite simply, an astonishing amount of new mortgage deals have been introduced into the market recently and yesterday's announcement by HSBC is just one recent example. Without a doubt it appears that the 90% mortgage is back - HSBC is following Nationwide in offering one - at least for those buying to live in a property.
At the same time, mortgage interest rates seem to be falling, not only for HSBC clients but also for ING Direct customers.
In further mortgage news, intermediary lender Precise has launched a range of prime mortgages and Tesco Bank are extending their range of mortgage products, to name just a couple.
Meantime in the buy-to-let market, rental yields have increased almost across the board in the third quarter of this year, mostly due to high tenant demand and still falling property prices in some locations.
The high demand is certainly something we are seeing in Edinburgh this year. With students just back at university and the holiday season over, virtually none of our clients' properties are empty. On the contrary, we've been able to source properties to buy for investor clients which are now successfully let and we envisage this trend to continue.
What makes us think that? Quite simply, an astonishing amount of new mortgage deals have been introduced into the market recently and yesterday's announcement by HSBC is just one recent example. Without a doubt it appears that the 90% mortgage is back - HSBC is following Nationwide in offering one - at least for those buying to live in a property.
At the same time, mortgage interest rates seem to be falling, not only for HSBC clients but also for ING Direct customers.
In further mortgage news, intermediary lender Precise has launched a range of prime mortgages and Tesco Bank are extending their range of mortgage products, to name just a couple.
Meantime in the buy-to-let market, rental yields have increased almost across the board in the third quarter of this year, mostly due to high tenant demand and still falling property prices in some locations.
The high demand is certainly something we are seeing in Edinburgh this year. With students just back at university and the holiday season over, virtually none of our clients' properties are empty. On the contrary, we've been able to source properties to buy for investor clients which are now successfully let and we envisage this trend to continue.
Posted by Cullen Property
2012-09-25 13:44:00
We've come across a couple of interesting stories on the rental market today: Shelter are asking for new, long-term rental contracts to be created in England. The objecive of those contracts would be to offer tenants stability in their (temporary) home.
These contracts would be valid for a period of five years, and Shelter's request comes on the back of research by Jones Lang showing that this 'Stable Rental Contract' could create better returns for landlords. However, according to this story there are no opinions from lenders yet.
However, Shelter's suggestion has been thrown out in a survey of flatsharers conducted by website Spareroom. Out of 1,000 users surveyed a whopping 82% said they are against extended contracts, fearing being tied in for longer and having less flexibility to move and change location. Tenants also feared landlords being more 'choosy' when it comes to selecting potential tenants in the long term.
At Cullen Property we believe both long and short term contracts have benefits for both tenants and landlords, depending on the individual's situation. Most students are keen to rent for the period of one academic year at a time as their plans may change, including study abroad years, changing course or taking time out.
These contracts would be valid for a period of five years, and Shelter's request comes on the back of research by Jones Lang showing that this 'Stable Rental Contract' could create better returns for landlords. However, according to this story there are no opinions from lenders yet.
However, Shelter's suggestion has been thrown out in a survey of flatsharers conducted by website Spareroom. Out of 1,000 users surveyed a whopping 82% said they are against extended contracts, fearing being tied in for longer and having less flexibility to move and change location. Tenants also feared landlords being more 'choosy' when it comes to selecting potential tenants in the long term.
At Cullen Property we believe both long and short term contracts have benefits for both tenants and landlords, depending on the individual's situation. Most students are keen to rent for the period of one academic year at a time as their plans may change, including study abroad years, changing course or taking time out.
Posted by Cullen Property
2012-09-19 13:59:00
There's movement in the property market and some of it is upward, too.
The Office of National Statistics (ONS) has published figures today that state property prices have risen in England, although they are still trailing in Scotland, Northern Ireland and Wales. Overall, property prices are up 2.3% in the 12 months to June 2012.
Looking at Scotland in more detail, as LSL Academetrics have done, shows that things are also looking up for property sales in Midlothian and the city of Edinburgh, where average sales prices have risen by £17,000 and £14,000, respectively, since July 2011. Over the same period the number of loans to new buyers has risen by 1,100.
According to the same figures, finance appears easier to come by for first time buyers north of the border, too.
Time to get excited? Not quite yet. Whilst the figures are definitely a reason to be hopeful, especially in a double-dip recession, it's not yet time to open the Champagne. However, they do show that the market is stabilising.
Geographically, the upward trend can be linked to regions of high employment and prosperity, where buyers are more likely to have equity and require less finance. At the same time, with mortgage providers starting to offer a larger number of high loan-to-value products, the property market appears to be moving in the right direction.
For a more detailed assessment, contact our team.
The Office of National Statistics (ONS) has published figures today that state property prices have risen in England, although they are still trailing in Scotland, Northern Ireland and Wales. Overall, property prices are up 2.3% in the 12 months to June 2012.
Looking at Scotland in more detail, as LSL Academetrics have done, shows that things are also looking up for property sales in Midlothian and the city of Edinburgh, where average sales prices have risen by £17,000 and £14,000, respectively, since July 2011. Over the same period the number of loans to new buyers has risen by 1,100.
According to the same figures, finance appears easier to come by for first time buyers north of the border, too.
Time to get excited? Not quite yet. Whilst the figures are definitely a reason to be hopeful, especially in a double-dip recession, it's not yet time to open the Champagne. However, they do show that the market is stabilising.
Geographically, the upward trend can be linked to regions of high employment and prosperity, where buyers are more likely to have equity and require less finance. At the same time, with mortgage providers starting to offer a larger number of high loan-to-value products, the property market appears to be moving in the right direction.
For a more detailed assessment, contact our team.
Posted by Cullen Property
2012-09-11 14:36:00
It may still be a few months' time until Christmas, but with retailers starting to stock chocolate Santas, it may be time to consider what would be on a property investor's wish list this year.
Judging by some of the most recent news pieces tidy tenants would be top of most investor's wish list. Whilst few would concern themselves with teh day-to-day running of the household, investors and landlords like to see their properties returned to the initial state when tenants move out.
And many tenants - keen to receive their deposit back - return their flat in perfect condition. However, approximately five percent hand over 'complete wrecks'. Nearly four in ten landlords have had to fully refurbish a flat after tenants moved out and ten percent said their repairs bill topped £2,500.
Joint second on our wish list are flats and terraced houses, as Paragon Mortgages reports that 16% of landlords are looking to increase their portfolio. According to their survey, flats and terraced houses appear much more popular than HMO properties which are typically shared by students. 58% of landlords are looking to invest in the former, with only 6% interested in the latter.
It's an interesting figure, especially considering the substantial returns achieved by well placed student flats in Edinburgh which have historically outperformed one and two bedroom flats for rental growth and occupancy.
Therefore, for Edinburgh property investors we'd like to add traditional four and five bedroom flats popular with students to our wish list, followed by a good choice of competitive finance products.
Judging by some of the most recent news pieces tidy tenants would be top of most investor's wish list. Whilst few would concern themselves with teh day-to-day running of the household, investors and landlords like to see their properties returned to the initial state when tenants move out.
And many tenants - keen to receive their deposit back - return their flat in perfect condition. However, approximately five percent hand over 'complete wrecks'. Nearly four in ten landlords have had to fully refurbish a flat after tenants moved out and ten percent said their repairs bill topped £2,500.
Joint second on our wish list are flats and terraced houses, as Paragon Mortgages reports that 16% of landlords are looking to increase their portfolio. According to their survey, flats and terraced houses appear much more popular than HMO properties which are typically shared by students. 58% of landlords are looking to invest in the former, with only 6% interested in the latter.
It's an interesting figure, especially considering the substantial returns achieved by well placed student flats in Edinburgh which have historically outperformed one and two bedroom flats for rental growth and occupancy.
Therefore, for Edinburgh property investors we'd like to add traditional four and five bedroom flats popular with students to our wish list, followed by a good choice of competitive finance products.
Posted by Cullen Property
2012-08-23 16:37:00
Mortgage lending and remortgaging appear to have gone through a busy few weeks.
With a number of lenders starting to offer under-3% interest rates for four to five year terms, home owners have submitted a rather large number of remortgage applications in late July and August, according to conveyancing specialists LMS.
Whilst experts had expected the Olympic Games to take precendence and deter home owners for a few weeks, it seems like shopping for a mortgage deal has still been high on the agenda.
Overall, July has proven to be a busy month for mortgage lending. The British Bankers Association (BBA) reports that high street banks' lending increased by 0.8% in July - maybe not a huge jump, but possibly showing a trend?
With a number of lenders starting to offer under-3% interest rates for four to five year terms, home owners have submitted a rather large number of remortgage applications in late July and August, according to conveyancing specialists LMS.
Whilst experts had expected the Olympic Games to take precendence and deter home owners for a few weeks, it seems like shopping for a mortgage deal has still been high on the agenda.
Overall, July has proven to be a busy month for mortgage lending. The British Bankers Association (BBA) reports that high street banks' lending increased by 0.8% in July - maybe not a huge jump, but possibly showing a trend?
Posted by Cullen Property
2012-07-31 14:42:00
... for unprepared landlords.
It sounds like a fairly basic statement, but after weeks of stories highlighting how bou-to-let mortgages were leading the market, we've come across a number of more troubling news today.
Specialist broker Mortgages for Business reports that one in ten residential landlords has been asked by their lender to move on to another lender, mainly due to RBS and Brandford & Bingley wanting to reduce their exposure to the property market or - as is the case for Bradford & Bingley - looking to exit the market completely.
At the same time, UK Asset Resolution (UKAR), the state-owned lender, reports 100,000 customers in danger of defaulting on their mortgage. Many of them are landlords whose interest-only mortgages are due to mature by 2020 and who have no idea how to pay off the loan, according to UKAR.
On Friday, BDRC Continental reported that single-property landlords were struggling to keep on top of payments.
All doom & gloom? Not necessarily. As with much of the news we've had on property investment since the recession started, it goes to show that well-prepared landlords with solid finance models and well chosen properties can weather a storm.
At the same time, the current recession will hopefully serve as a cautionary tale to those looking to invest in property in the future - and here are a few things to consider no matter what the economy is doing: ensure you have the funds and finance in place, don't fall for deals that look too good to be true (they usually are) and select your property(ies) wisely.
It sounds like a fairly basic statement, but after weeks of stories highlighting how bou-to-let mortgages were leading the market, we've come across a number of more troubling news today.
Specialist broker Mortgages for Business reports that one in ten residential landlords has been asked by their lender to move on to another lender, mainly due to RBS and Brandford & Bingley wanting to reduce their exposure to the property market or - as is the case for Bradford & Bingley - looking to exit the market completely.
At the same time, UK Asset Resolution (UKAR), the state-owned lender, reports 100,000 customers in danger of defaulting on their mortgage. Many of them are landlords whose interest-only mortgages are due to mature by 2020 and who have no idea how to pay off the loan, according to UKAR.
On Friday, BDRC Continental reported that single-property landlords were struggling to keep on top of payments.
All doom & gloom? Not necessarily. As with much of the news we've had on property investment since the recession started, it goes to show that well-prepared landlords with solid finance models and well chosen properties can weather a storm.
At the same time, the current recession will hopefully serve as a cautionary tale to those looking to invest in property in the future - and here are a few things to consider no matter what the economy is doing: ensure you have the funds and finance in place, don't fall for deals that look too good to be true (they usually are) and select your property(ies) wisely.
Posted by Cullen Property
2012-07-26 14:18:00
While we were all enjoying yesterday's sunshine, 'our' trees in Teaghlach Wood in Perthshire would have breathed a sigh of relief when today turned out to be a little cloudier.
Believe it or not, when the whole country was complaining about the never-ending rain over the past couple of weeks, our trees couldn't have been happier. Trees4Scotland's Angus Crabbie explains: "Trees really do love rain as it helps them grow, especially when they're young."
And while we were rejoicing about finally dusting off the barbecue again, forests are looking forward to the next rainy day to continue to develop.
There is a more serious side to this story as well: While trees need rain to grow, reforestation in general is one way to prevent landslides etc as the roots help avoid soil erosion - a natural contribution to our flood defences.
Cullen Property has teamed up with Trees4Scotland to offset the carbon footprint of our managed flats. To find out more or to get involved, please email us.
Believe it or not, when the whole country was complaining about the never-ending rain over the past couple of weeks, our trees couldn't have been happier. Trees4Scotland's Angus Crabbie explains: "Trees really do love rain as it helps them grow, especially when they're young."
And while we were rejoicing about finally dusting off the barbecue again, forests are looking forward to the next rainy day to continue to develop.
There is a more serious side to this story as well: While trees need rain to grow, reforestation in general is one way to prevent landslides etc as the roots help avoid soil erosion - a natural contribution to our flood defences.
Cullen Property has teamed up with Trees4Scotland to offset the carbon footprint of our managed flats. To find out more or to get involved, please email us.
Posted by Cullen Property
2012-07-24 12:00:00
Summer time lets in cities with large events tend to be popular and increase rates well above and beyond average rentals achieved. Edinburgh's Festival season is a great example.
This summer, with the Olympic Games due to start at the end of the week, a number of landlords in London and other Games locations were looking to cash in on their properties. However, while Buy-To-Let mortgages continue to be in demand, Olympic lets simply are not flavour of the month and many remain available.
Research by online publication Landlord Today has shown that Olympic lets in Chelsea and Stratford remain available, to name only two locations. One of the reasons may be the rates offered which are in some cases nearly triple the rate that would normally be achieved in the area and landlords are now facing voids.
On the other hand, there are positive Olympics-related property news as well: Lloyds TSB reports a 33% increase in property prices in the 14 postal districts closest to the mains sites of the Olympic and Paralympic Games in London's East End. In March 2012, average properties sold for just over £270,000 whilst the going rate was just over £205,000 in July 2005 when London was awarded the Games.
This summer, with the Olympic Games due to start at the end of the week, a number of landlords in London and other Games locations were looking to cash in on their properties. However, while Buy-To-Let mortgages continue to be in demand, Olympic lets simply are not flavour of the month and many remain available.
Research by online publication Landlord Today has shown that Olympic lets in Chelsea and Stratford remain available, to name only two locations. One of the reasons may be the rates offered which are in some cases nearly triple the rate that would normally be achieved in the area and landlords are now facing voids.
On the other hand, there are positive Olympics-related property news as well: Lloyds TSB reports a 33% increase in property prices in the 14 postal districts closest to the mains sites of the Olympic and Paralympic Games in London's East End. In March 2012, average properties sold for just over £270,000 whilst the going rate was just over £205,000 in July 2005 when London was awarded the Games.
Posted by Cullen Property
2012-07-12 13:18:00
Accidental landlords have been one of the property industry's buzz words for a few years now. However, there appears to be a new breed of landlord out there now.
An insurance company has looked at thousands of applications from new landlords and noticed a distinct trend towards pensioners renting out property.
One of the reasons will be the slowdown in the property sales market, making it harder to sell up and downsize - especially when renting out and downsizing are a great alternative. Whether these more mature accidental landlords are willing to stay in the market for the long run or will take the first exit when it becomes available remains to be seen. In any case, accidental landlords are here to stay until the economic climate changes.
An insurance company has looked at thousands of applications from new landlords and noticed a distinct trend towards pensioners renting out property.
One of the reasons will be the slowdown in the property sales market, making it harder to sell up and downsize - especially when renting out and downsizing are a great alternative. Whether these more mature accidental landlords are willing to stay in the market for the long run or will take the first exit when it becomes available remains to be seen. In any case, accidental landlords are here to stay until the economic climate changes.
Posted by Cullen Property
2012-07-06 15:38:00
Over the past few months, there's been any number of stories about buy-to-let mortgages buoying up the property market. Interestingly, Moneyfacts.co.uk has now published research that shows the number of BTL mortgage products on the market has dwindled from over 2,000 in 2007 to just over 400 today.
What looks like bad news at first is actually a sign of improvement compared to 2009 when the number of mortgage products dropped to less than 200 for those looking to rent out that home.
On a daily basis, therefore, what does it mean for our investor clients? On average, buy to let mortgages are still easier to arrange than residential mortgages, especially when it comes to those with smaller deposits.
However, if you are looking to invest in property, being able to put down a sizeable deposit will give you a much bigger choice of mortgage products and access to better deals. As a consequence, it may be worth looking at a slightly smaller buy-to-let property - three or four bedrooms rather than six, for example.
One thing to bear in mind, though, is the fact that you should not compromise on the location. It's the one thing that can't be changed.
What looks like bad news at first is actually a sign of improvement compared to 2009 when the number of mortgage products dropped to less than 200 for those looking to rent out that home.
On a daily basis, therefore, what does it mean for our investor clients? On average, buy to let mortgages are still easier to arrange than residential mortgages, especially when it comes to those with smaller deposits.
However, if you are looking to invest in property, being able to put down a sizeable deposit will give you a much bigger choice of mortgage products and access to better deals. As a consequence, it may be worth looking at a slightly smaller buy-to-let property - three or four bedrooms rather than six, for example.
One thing to bear in mind, though, is the fact that you should not compromise on the location. It's the one thing that can't be changed.
Posted by Cullen Property
2012-06-29 19:53:00
In a recent poll by Knight Frank, Paris just topped London for the title of best place to invest in student property, closely followed by Vienna, Dublin and Barcelona. So where does that leave Edinburgh? Should we take our eyes off the city and look for investment opportunities elsewhere?
Not so fast. First, the Scottish capital comes fourth in Knight Frank's UK-wide student property report - after London, Kingston and Brighton - and is far ahead of St Andrews and Glasgow. No other Scottish city made the top 20.
Second, the UK student property market has been a safe investment throughout the credit crunch, not just according to our own findings which have seen Edinburgh properties delivering constant high rental yields. Knight Frank's Head of Student Property James Pullan agrees that student accommodation has delivered solid and consistent returns throughout every year of the economic downturn.
Third, property investment in Edinburgh is by far more accessible than in London: there's a larger number of suitable properties available and they can usually be purchased at more reasonable prices. Another advantage is the capital's size - whilst it offers all the amenities of a large cosmopolitan city, it's also easily navigated on foot or by bike, making Edinburgh more accessible and affordable for future students. The growing applicant numbers across Edinburgh's universities prove the city's popularity even further.
So, while Paris might have topped this survey, Edinburgh is certainly more than second best when it comes to student accommodation.
Posted by Cullen Property
2012-06-28 15:30:00
Last week, we introduced our partnership with Trees4Scotland, aiming to neutralise the carbon footprint of all 320+ properties managed by us.
We've done our figures and here are some of them: initially, we'll be investing over £1,600 on behalf of three clients which will buy us 232 trees. Those trees will also offset the carbon footprint of our office and the company vehicles.
The properties are rated depending on their size: a 2 bed flat with kitchen, bathroom and living room would need 5 trees whereas a 5 bed flat with 2 bathrooms and a combined living kitchen would need 9 trees in total.
So far, so good! Over the next couple of weeks, the team will be hands-on at Teaghlach Wood, planting trees and we're delighted to be joined by a couple of clients based locally.
We can't wait to see with our own eyes what our contribution will mean to Trees4 Scotland's project and pictures will follow.
We've done our figures and here are some of them: initially, we'll be investing over £1,600 on behalf of three clients which will buy us 232 trees. Those trees will also offset the carbon footprint of our office and the company vehicles.
The properties are rated depending on their size: a 2 bed flat with kitchen, bathroom and living room would need 5 trees whereas a 5 bed flat with 2 bathrooms and a combined living kitchen would need 9 trees in total.
So far, so good! Over the next couple of weeks, the team will be hands-on at Teaghlach Wood, planting trees and we're delighted to be joined by a couple of clients based locally.
We can't wait to see with our own eyes what our contribution will mean to Trees4 Scotland's project and pictures will follow.
Posted by Cullen Property
2012-06-26 13:36:00
Normally, we're blogging about topics close to home, especially Edinburgh properties. There are some intriguing news from China today though which made a digression worthwhile. Chinese construction company Broad Group is poised to break a few records over the next few months, creating the world's tallest building in record time at less than half the price of the world's current tallest building, Dubai's Burj Khalifa Tower (pictured).They've vowed to achieve their goal in 90 days. Sky City One's 220 stories will be 838 metres high, 10 metres taller than the Dubai property. The tower will accommodate 100,000 people in a mixture of offices, apartments and shops. It's not the first time Broad Group have broken records for speedy building, so we'll be watching closely.
Posted by Cullen Property
2012-06-21 11:18:00
No matter what industry a business is in, each will have an impact on the environment. At Cullen Property, we're well aware that our responsibility stretches beyond our offices and company vehicles to the over 300 managed properties we look after in Edinburgh.
To do our share for the environment, we've set an ambitious goal - to offset the carbon footprint for all of our managed properties.
It's not something we'll be able to achieve on our own, so we've teamed up with Trees4Scotland, a fantastic initiative to restore native Scottish woodlands. For each property, Angus Crabbie of Trees4Scotland will help calculate the amount of trees we need to plant to offset its carbon footprint.
We're starting with three clients initially, but all of our investor and landlord clients will be invited to join us with their properties and go carbon neutral.
In our blog we'll follow the progress of the project, i.e. the growth of the trees quite literally and will keep you updated on how it all goes.
Let us know if you have any questions at all!
Posted by Cullen Property
2012-06-19 11:31:00
A story posted by Rightmove yesterday suggests that property asking prices are now higher than they were in August 2007 - before the Northern Rock crisis.
Does that mean that property values are increasing as well and are now higher than they were in 2007? Not necessarily. First off, Rightmove's figures for asking prices are still far higher than the Nationwide's and Halifax' average house prices. In fact, the difference is over £70,000.
However, it's certainly an investor's market out there, with sellers keen to move properties on at reasonable prices and landlords looking to increase portfolios. The statement we agree with most in Rightmove's story, however, is that it is a 'very local market' were property values are more than ever determined by location and demand specific to that location.
Does that mean that property values are increasing as well and are now higher than they were in 2007? Not necessarily. First off, Rightmove's figures for asking prices are still far higher than the Nationwide's and Halifax' average house prices. In fact, the difference is over £70,000.
However, it's certainly an investor's market out there, with sellers keen to move properties on at reasonable prices and landlords looking to increase portfolios. The statement we agree with most in Rightmove's story, however, is that it is a 'very local market' were property values are more than ever determined by location and demand specific to that location.
Posted by Cullen Property
2012-06-14 14:14:00
We're featured on property website myiproperty.co.uk with an update on the soon-to-be-launched Tenancy Deposit Schemes in Scotlands. It's less than a month until 2 July when the schemes become mandatory. Find out what landlords and investors with Scottish properties need to know now here
Posted by Cullen Property
2012-06-07 19:43:00
During the week of the Diamond Jubilee, statistics wizards at Lloyds TSB have looked at what's happened to the private rental market over the past sixty years. Whilst their findings are specifically for England, it's a similar picture in Scotland showing that not only do 41% of households now have a second toilet - but also reminding us that renting a home was very popular in the 1950s. The number of home owners grew in the 1970s and 1980s, but now renting's on the up once again.
And as renting is getting more expensive overall, landlords are being warned that they can't increase rents much more as affordability is becoming a problem. Having said that, one residential lettings agency is seeing a decline in rents today. Overall though, rents are still on the up, especially for high quality properties. What's important, both in the interest of the tenant and the landlord, is to ensure that the tenant can afford the property long term and while checks on income and employment status may feel intrusive, they benefit all parties in the long run.
Posted by Cullen Property
2012-05-15 16:03:00
We've come across a few interesting stories on house prices this week which we thought we'd share.
In Scotland, property owners looking to sell have had to settle for less than their asking price, although Lindsays Solicitors have noticed an increase in closing dates, suggesting more properties are being sold. So whilst prices may not yet be back to what they used to be, it looks like there is more activity in the property market, particularly in the city's most popular areas.
It's a different story south of the border. Here, the slowdown of property sales has now created a shortage of properties on the market, leading to increased house prices.
Whilst Edinburgh isn't currently showing any such trend, there has certainly always been competition for properties that are well placed and - especially for investors - bound to generate great yields. Contact the team for more information
Posted by Cullen Property
2012-05-08 12:21:00
Posted by Cullen Property
2012-05-04 11:23:00
Posted by Cullen Property
2012-05-01 13:16:00
The last few days have seen quite a number of stories related to lettings and buy-to-let finance being published. Some of those are especially interesting to those considering property investments in Edinburgh: while the Association of Residential Letting Agents reports a decline in demand for rental property, we've seen evidence that the opposite is the case and are still enjoying over 99% occupancy rates throughout the year.
Mortgage providers are starting to see an increase in buy-to-let investments, suggesting that overall confidence is growing. Where Edinburgh is concerned, we have seen the city continuously outperform UK averages where rental yields are concerned. The city's secret? Its universities are attracting larger numbers of students each year, but as always with property it's choosing the right flat in the right location to ensure maximum returns.
Posted by Cullen Property
2012-04-18 09:46:00
Is there a negative trend for rents achieved by private property in Edinburgh? Some property managers seem to feel the pressure of more property becoming available and rents not continuously growing anymore.
In our experience, rents in the capital are stable or growing, depending on the type of property on offer. On average, our larger (3 bedrooms and more) properties achieved a 3% growth in rent while one and 2 bedroom properties stayed at the same rate or showed a smaller increase.
Watch this space for Citylets' quarterly figures which are due out shortly..
Posted by Cullen Property
2012-04-17 15:10:00
The Scottish government is today embarking on a review of the private lettings market with a view to creating a more long-term culture, both for tenancies and for property investors and landlords. Germany has been cited as an example. Over the next few weeks, property managers such as Cullen will be consulted and we look forward to contributing our views and sharing our experience to help the process.
Click here for more information and follow our blog for regular updates.
Posted by Cullen Property
2012-04-11 14:40:00
The Cullen Property team is off to London later this month for the Property Investor Show. We'll be the only independent Scottish exhibitor at the show at London's ExCeL centre on 19 and 20 April. If you're in town and have any questions, please join us at stand 82. You can also make an appointment in advance by phoning the team on 0131 221 1818 or emailing Operations Director Steve Coyle.
Posted by Cullen Property
2012-04-04 15:04:00
As a landlord, safeguarding your property investment starts by making sure rent is paid each month. A good letting agent will ensure tenants set up regular payments such as standing orders or ideally direct debits, but in reality the work starts much earlier - by making sure the new tenant(s) can afford the flat.
At Cullen Property, we operate some of the industry's most stringent checking procedures before a tenant signs a lease:
At Cullen Property, we operate some of the industry's most stringent checking procedures before a tenant signs a lease:
· Professionals must earn at least three times their share of the annual rent of the property
· Students have to provide a UK-based guarantor or pay the equivalent of three months' rent as a security rent
· All prospective tenants must provide solid employer and previous landlord references as a minimum and everyone is subject to a credit check
The result? No tenants in arrears, no evictions - and happy landlords.
Whilst across the industry problems with arrears are growing - mostly due to economic circumstances - our managed properties are experiencing continuously high demand from reliable tenants.
Posted by Cullen Property
2012-03-30 19:43:00
Well-placed student properties in Edinburgh are giving investors the edge over buy-to-lets throughout most of the UK and Scotland.
While there's no question over the growing demand for rental properties in general, both experienced by our team on a daily basis and highlighted by recent Savills research, it's once again about location. And here's where Edinburgh comes up trumps: the city's excellent universities continue to attract higher numbers of applicants each year and the majority of students know exactly where they want to live - in the likes of Marchmont, Bruntsfield and Newington.
The growing demand has lead to an average increase in rent of 3% over the past year, more than four times the figure noted for Scotland overall by BM Solutions. A more detailed review of the areas popular for investment in student flats highlights that even within the growing private rental market of Edinburgh, properties in those parts of the city are the top performers.
For more information, just contact one of our team.
Posted by Cullen Property
2012-03-22 15:47:00
Keeping up to speed with the new TDS (Tenancy Deposit Scheme) Regulations and how landlords and agents should be preparing, we attended a very informative seminar by Lindsays Solicitors today. The likely launch date for the TDS is 2nd July which doesn't leave much time for landlords to ensure their policies, leases and tenancy processes and procedures are sufficiently robust to avoid being caught out - and the penalty could be up to £50k.
To quantify this, all deposits will have to be paid into a scheme and the scheme will ask for the landlords registration number at the point of entering the tenants information. The TDS scheme operators are duty bound to report the Landlords who answer 'no' to the 'are you registered' question and the maximum fine for not being registered is £50k.
More likely is that the tenant would sue the landlord if the deposit was not put into the scheme and Sheriffs can award up to '3x deposit amount' payable by the landlord to the tenant in such cases.
Lindsays have provided excellent advice and guidance on the subject of TDS as well as some other advice on recent regulation changes.
Posted by Cullen Property
2012-02-02 15:46:00
Good news for Edinburgh as the European Invesment Bank has granted a £50m loan to the University of Edinburgh for the Edinburgh Centre for Carbon Innovation.
The Centre is being built in association with Napier University and Heriot Watt University and is aimed at developing solutions to reduce carbon emissions, as well as provide professional skills training and Masters courses.
To view the full article please click below:
http://www.studentnewspaper.org/news/1212-edinburgh-targets-low-carbon-future
The Centre is being built in association with Napier University and Heriot Watt University and is aimed at developing solutions to reduce carbon emissions, as well as provide professional skills training and Masters courses.
To view the full article please click below:
http://www.studentnewspaper.org/news/1212-edinburgh-targets-low-carbon-future
Posted by Cullen Property
2012-01-18 17:12:00
Cullen Property have seen a fantastic start to 2012 by letting 6 properties within just the last week!
All the properties were very competitively priced and we are delighted that the letting season has started so quickly and with such gusto!
If you would like information on our Landlord Services contact Susan@cullenproperty.com or alternatively, on our Investor Services contact Malcolm@cullenproperty.com or Steve@cullenproperty.com
All the properties were very competitively priced and we are delighted that the letting season has started so quickly and with such gusto!
If you would like information on our Landlord Services contact Susan@cullenproperty.com or alternatively, on our Investor Services contact Malcolm@cullenproperty.com or Steve@cullenproperty.com
Posted by Cullen Property
2011-12-20 11:01:00
Everyone here at Cullen Property wishes you a very Merry Christmas and Prosperous New Year!
All the best for 2012!
All the best for 2012!
Posted by Cullen Property
2011-12-07 10:08:00
Scotland's Tenancy Deposit Scheme has moved a step closer to completion after it was announced that the consultation paper is available with a series of consultation events to take place in Edinburgh and Glasgow.
The Scottish Government announced that the consultation events are designed for stakeholders to listen to proposals from Letting Protection Scotland and SafeDeposits Scotland.
A representative from Cullen Property will be attending, however please see the attached link for further information on the events, as well as information on the proposed schemes.
http://www.scotland.gov.uk/Topics/Built-Environment/Housing/privaterent/government/SGTD1
We will continue to update using this blog on the outcome of the proposals.
The Scottish Government announced that the consultation events are designed for stakeholders to listen to proposals from Letting Protection Scotland and SafeDeposits Scotland.
A representative from Cullen Property will be attending, however please see the attached link for further information on the events, as well as information on the proposed schemes.
http://www.scotland.gov.uk/Topics/Built-Environment/Housing/privaterent/government/SGTD1
We will continue to update using this blog on the outcome of the proposals.
Posted by Cullen Property
2011-11-22 16:46:00
Cullen are pleased to announce the appointment of two new members of staff to join the existing team to help ensure the company can deliver a premier service to it's Landlords and tenants.
Alexa Wilson has joined to take up a new post of Reception/Property Administrator and will be the first point of contact for all incoming enquiries to the office. Alexa has worked in the Edinburgh property sector for seven years and has experience in both the letting and estate agency elements of the property industry.
Hana Petrie has also joined the Cullen ranks to increase the maintenance department and is also an experienced property professional. Hana has a building and estate management degree which will be put to good use as the maintenance dept continues to provide a first class service for both Landlords and Tenants.
They have both received a warm welcome from the rest of the Cullen team who wish them well in their respective new roles.
Alexa Wilson has joined to take up a new post of Reception/Property Administrator and will be the first point of contact for all incoming enquiries to the office. Alexa has worked in the Edinburgh property sector for seven years and has experience in both the letting and estate agency elements of the property industry.
Hana Petrie has also joined the Cullen ranks to increase the maintenance department and is also an experienced property professional. Hana has a building and estate management degree which will be put to good use as the maintenance dept continues to provide a first class service for both Landlords and Tenants.
They have both received a warm welcome from the rest of the Cullen team who wish them well in their respective new roles.
Posted by Cullen Property
2011-11-16 15:23:00
The implosion of the mortgage market in the UK following the worldwide economic downturn after the collapse of Lehman Brothers in 2008 has meant that potential first time buyers have not been able to buy their first property due to the high deposit levels demanded by the lenders.
The lenders were as uncertain of the future economic trends as the rest of us so increased the deposit levels required to safeguard their own equity in a mortgaged property to ensure they'd get their money back if everything went wrong.
However, we now seem to have reached a plateau, or more accurately a plain, where everyone accepts that the economy will be flat for the next year or so, but is unlikely to collapse, and the slow growth will commence thereafter. Sir Mervyn King, Governor of the Bank of England has predicted this scenario in his recently released quarterly bulletin.
The lenders appear to have gained comfort from this and are now offering mortgages with much lower deposit levels, particularly to first time buyers. For example Lloyds TSB now have a product at 95% Loan to Value, at an interest rate of 3.94%, fixed until January 2015, with an arrangement fee of £1,094.00. (source; http://www.moneysupermarket.com/mortgages/ )
On a property valued at, say, £150,000.00 the repayments on an interest only basis on the above mortgage would be £468.00 per month.
Most first time buyers who are renting because they can't afford to buy are paying more than this for a rental property anyway and so they now have a motive to purchase instead. They have also been saying that they could afford the mortgage payments each month but few had saved the £60,000.00 (40% of £150,000.00) for the deposit being asked for by the lenders until just recently.
If the bottom end of the property market starts moving again then prices will start to rise again slightly and it will create a natural market stimulation upwards into the housing market as well.
If this is the case, then rents may adjust back down slightly in the smaller property sector of the rental market but the offset for landlords would be a return to some capital growth once again, albeit slowly for the next couple of years yet.
The lenders were as uncertain of the future economic trends as the rest of us so increased the deposit levels required to safeguard their own equity in a mortgaged property to ensure they'd get their money back if everything went wrong.
However, we now seem to have reached a plateau, or more accurately a plain, where everyone accepts that the economy will be flat for the next year or so, but is unlikely to collapse, and the slow growth will commence thereafter. Sir Mervyn King, Governor of the Bank of England has predicted this scenario in his recently released quarterly bulletin.
The lenders appear to have gained comfort from this and are now offering mortgages with much lower deposit levels, particularly to first time buyers. For example Lloyds TSB now have a product at 95% Loan to Value, at an interest rate of 3.94%, fixed until January 2015, with an arrangement fee of £1,094.00. (source; http://www.moneysupermarket.com/mortgages/ )
On a property valued at, say, £150,000.00 the repayments on an interest only basis on the above mortgage would be £468.00 per month.
Most first time buyers who are renting because they can't afford to buy are paying more than this for a rental property anyway and so they now have a motive to purchase instead. They have also been saying that they could afford the mortgage payments each month but few had saved the £60,000.00 (40% of £150,000.00) for the deposit being asked for by the lenders until just recently.
If the bottom end of the property market starts moving again then prices will start to rise again slightly and it will create a natural market stimulation upwards into the housing market as well.
If this is the case, then rents may adjust back down slightly in the smaller property sector of the rental market but the offset for landlords would be a return to some capital growth once again, albeit slowly for the next couple of years yet.
Posted by Cullen Property
2011-11-11 09:41:00
Cullen Property enjoyed another fantastic day taking part in exhibiting at the National Landlord Day at Dynamic Earth, organised by the Scottish Association of Landlords.
There were around 400 landlords attending the day, which featured guest speakers discussing the upcoming Tenancy Deposit Scheme, tax improvements for landlords, and the future of the lettings market in Scotland.
There were also a number of different exhibitors for landlords to meet and discuss services with, such as Jobs in Lettings, Bank of Scotland, TC Young, Alan Boswell Group and Fire Prevention Works Ltd, to name a few.
Cullen Property have attended the past four National Landlord Day's. The aim of the event is to bring together landlords in Scotland, for them to meet similar individuals and discuss the ups and downs of letting a property in Scotland.
We will be uploading photos shortly to let you see how it went.
There were around 400 landlords attending the day, which featured guest speakers discussing the upcoming Tenancy Deposit Scheme, tax improvements for landlords, and the future of the lettings market in Scotland.
There were also a number of different exhibitors for landlords to meet and discuss services with, such as Jobs in Lettings, Bank of Scotland, TC Young, Alan Boswell Group and Fire Prevention Works Ltd, to name a few.
Cullen Property have attended the past four National Landlord Day's. The aim of the event is to bring together landlords in Scotland, for them to meet similar individuals and discuss the ups and downs of letting a property in Scotland.
We will be uploading photos shortly to let you see how it went.
Posted by Cullen Property
2011-10-28 09:59:00
There has been little mention of this topic since it was launched a year ago by the Scottish Housing Minister, Alex Neil, at last year's Scottish Association of Landlords annual conference.
The Tenancy Deposit Schemes (Scotland) Regulations 2011 became law on 7 March 2011. This law set out the requirements that any prospective scheme would need to meet in order for it to be approved by the Scottish government.
Once a scheme has been approved and is fully in place then all landlords and agents would need to move, within six months, any deposit funds already held into the scheme. Any new deposits taken would also need to be placed into the scheme within 30 days of the start of the tenancy.
To date, only three schemes have been presented to the government by companies looking to operate Tenancy Deposit Schemes in Scotland. One has only just been received, but the first two are currently being assessed and will then be given to ministers for review. This will then be followed by a consultation period of around six weeks during which time the terms of the scheme will be considered by all stakeholders who will be affected by the introduction of the schemes.
The findings of the consultation will then be analysed and recommendations given to ministers before a complete proposal can be presented for approval by the government.
This all takes time and it is likely to be spring 2012 before any scheme has actually been approved to the point where it can begin operating. The company would then need to set up their offices and systems before any funds could be placed under their control. This is likely to be in summer 2012.
This all assumes that the schemes will be able to work through the approval process and that the companies concerned will be willing to adopt any changes required by the government. Given that the profit from running such a scheme has to come from the bank interest received on the funds held, and taking into account that interest rates are at an all time low, then it could well be some time before we see any TDS up and running in Scotland.
Watch this space!
The Tenancy Deposit Schemes (Scotland) Regulations 2011 became law on 7 March 2011. This law set out the requirements that any prospective scheme would need to meet in order for it to be approved by the Scottish government.
Once a scheme has been approved and is fully in place then all landlords and agents would need to move, within six months, any deposit funds already held into the scheme. Any new deposits taken would also need to be placed into the scheme within 30 days of the start of the tenancy.
To date, only three schemes have been presented to the government by companies looking to operate Tenancy Deposit Schemes in Scotland. One has only just been received, but the first two are currently being assessed and will then be given to ministers for review. This will then be followed by a consultation period of around six weeks during which time the terms of the scheme will be considered by all stakeholders who will be affected by the introduction of the schemes.
The findings of the consultation will then be analysed and recommendations given to ministers before a complete proposal can be presented for approval by the government.
This all takes time and it is likely to be spring 2012 before any scheme has actually been approved to the point where it can begin operating. The company would then need to set up their offices and systems before any funds could be placed under their control. This is likely to be in summer 2012.
This all assumes that the schemes will be able to work through the approval process and that the companies concerned will be willing to adopt any changes required by the government. Given that the profit from running such a scheme has to come from the bank interest received on the funds held, and taking into account that interest rates are at an all time low, then it could well be some time before we see any TDS up and running in Scotland.
Watch this space!
Posted by Cullen Property
2011-10-20 11:26:00
With all the negative press and documentaries focusing on Edinburgh recently, it is important to focus on the positives of the City.
Take for example the tram situation; there have been numerous articles claiming how the project has been a disaster from start to, well rather than 'finish', to now.
However, it appears that the project is now 'back on track' (parden the pun) and once finished; Edinburgh will be provided with a fantastic tram system that will allow people to get around the City easily.
In addition, there has always been an issue with traffic congestion and the trams are another way of reducing this problem.
Another positive to come out of a disaster is the recognition of Edinburgh's excellence in the financial industry. While this sector has taken a particular thrashing in terms of cutbacks and loss of staff, there is a light at the end of the tunnel; Tesco Bank and Virgin Money.
Both these companies are setting up financial headquarters in Edinburgh and this will most certainly have a positive impact on the employment levels, as well as the subsequent expenditure and investment in the City.
Perhaps Edinburgh isn't such a bad place to be afterall.
Take for example the tram situation; there have been numerous articles claiming how the project has been a disaster from start to, well rather than 'finish', to now.
However, it appears that the project is now 'back on track' (parden the pun) and once finished; Edinburgh will be provided with a fantastic tram system that will allow people to get around the City easily.
In addition, there has always been an issue with traffic congestion and the trams are another way of reducing this problem.
Another positive to come out of a disaster is the recognition of Edinburgh's excellence in the financial industry. While this sector has taken a particular thrashing in terms of cutbacks and loss of staff, there is a light at the end of the tunnel; Tesco Bank and Virgin Money.
Both these companies are setting up financial headquarters in Edinburgh and this will most certainly have a positive impact on the employment levels, as well as the subsequent expenditure and investment in the City.
Perhaps Edinburgh isn't such a bad place to be afterall.
Posted by Cullen Property
2011-10-06 17:27:00
The Herald published an article this week confirming that the student buy to let market is performing well for investors, with Edinburgh's yields ranked fourth in the UK.
If owning a buy to let property with a high performing yield is something that you would be interested in, we have a number of investment properties that are currently on our website at www.cullenproperty.com/properties_to_buy.asp. Alternatively contact Steve@cullenproperty.com or Malcolm@cullenproperty.com.
http://www.heraldscotland.com/mobile/news/home-news/best-returns-on-student-property-1.1127183
Posted by Cullen Property
2011-09-22 16:16:00
The City of Edinburgh represents a picture of historic buildings and beautiful architecture, however it is due to these assets that has driven the city into the limelight of a shadowy affair.
During the past year it was brought to the attention of the press that so called Statutory Notices were at the center of fraud and corruption on the council's part. Since then, nearly half the department in the property conservation department at the council have been suspended, albeit under 'precautionary' measures.
Members of this department were supposedly given bribes by contractors to make sure the work was allocated to them. On top of that, the contractors overcharged as well as in some cases provided such poor quality of work resulting in the works to be carried out again by another contractor.
For residents of the city of Edinburgh, they can't help but feel betrayed and dismayed at the whole situation; as the reason behind introducing statutory notices was to protect Edinburgh's precious architecture with due care and diligence on the council's part.
BBC1 Scotland screened a documentary detailing their own investigation and the amounts of money being exchanged over statutory notices is frightening.
http://www.bbc.co.uk/iplayer/episode/b0154z83/BBC_Scotland_Investigates_2011_Scotlands_Property_Scandal/
For anyone that is concerned about their own position regarding statutory notices from the past 6 years should contact the council whilst the police and Deloitte carry out their own investigations into the corruption claims.
During the past year it was brought to the attention of the press that so called Statutory Notices were at the center of fraud and corruption on the council's part. Since then, nearly half the department in the property conservation department at the council have been suspended, albeit under 'precautionary' measures.
Members of this department were supposedly given bribes by contractors to make sure the work was allocated to them. On top of that, the contractors overcharged as well as in some cases provided such poor quality of work resulting in the works to be carried out again by another contractor.
For residents of the city of Edinburgh, they can't help but feel betrayed and dismayed at the whole situation; as the reason behind introducing statutory notices was to protect Edinburgh's precious architecture with due care and diligence on the council's part.
BBC1 Scotland screened a documentary detailing their own investigation and the amounts of money being exchanged over statutory notices is frightening.
http://www.bbc.co.uk/iplayer/episode/b0154z83/BBC_Scotland_Investigates_2011_Scotlands_Property_Scandal/
For anyone that is concerned about their own position regarding statutory notices from the past 6 years should contact the council whilst the police and Deloitte carry out their own investigations into the corruption claims.
Posted by Cullen Property
2011-09-14 16:26:00
The unfolding story on what Student Fees will mean for the University of Edinburgh has developed further this week.
It is now thought that the funding gap caused by the Scottish Government's funding level of £5,000.00 per Scottish student versus the 'open market' price of £9,000.00 per annum for 'Rest of UK' (RUK) students is likely to cause a two-tier system of entry. In short, it could mean that a lower achieving RUK student could effectively out bid a Scottish student with better exam results so that the university will receive more cash.
We are also likely to see more Scottish students wishing to study at Scottish universities as opposed to south of the border where they would have to pay fees for their courses. This may result in increased competition for places at Edinburgh which is ranked 20th in the world.
We could also see some students wishing to come to Edinburgh purely for the kudos of it being the one of the most expensive universities to study in the UK.
More info on this hot topic can be found here... http://www.guardian.co.uk/education/2011/sep/12/scottish-universities-uk-students-fees
Posted by Cullen Property
2011-09-07 15:26:00
So, Edinburgh University has shown it's hand on the subject of student fees, stating that it will charge students £9k per year, up to £36K for a four year course.
This is only chargeable to English, Welsh and Northern Ireland students under the present policy, but means that Edinburgh would be the most expensive University in the UK for these students. Scottish students would continue to study for free.
This will either mean that Edinburgh becomes a University for predominantly Scottish students, or becomes a 'must study there' destination for the wealthiest of the UK student population. Time will tell and it remains to be seen what if any reaction comes from the Scottish Government in its future policy decisions on this subject.
http://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-14784810
This is only chargeable to English, Welsh and Northern Ireland students under the present policy, but means that Edinburgh would be the most expensive University in the UK for these students. Scottish students would continue to study for free.
This will either mean that Edinburgh becomes a University for predominantly Scottish students, or becomes a 'must study there' destination for the wealthiest of the UK student population. Time will tell and it remains to be seen what if any reaction comes from the Scottish Government in its future policy decisions on this subject.
http://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-14784810
Posted by Cullen Property
2011-09-02 10:10:00
Scottish Universities likely to be taken to court over student fees!
Aberdeen University has become the first Scottish University to declare that from 2012 it will charge students £9,000 per year for the first three years of their courses, with the fourth year free. However, this does not apply to Scottish or EU students, but does affect those from England, Wales and Northern Ireland.
It is expected that the other Scottish Universities will make similar statements in the following weeks.
Unsurprisingly, this move is likely to be challenged by various students from England, Wales and NI. The current Scottish Govt stance is seen by many to be illegal under European Law and contravenes the human rights of those students affected.
It seems probable that the differences north and south of the border will be resolved to bring about a fair system for all.
For property investors in Edinburgh, it is likely to mean that there will be an increase in student demand for Edinburgh properties as Scottish Students will have to compete in an 'open market' with those from England etc. And with the University having more revenue it is likely to mean that they will look to offer more courses and be able to develop further infrastructure for future growth too.
Aberdeen University has become the first Scottish University to declare that from 2012 it will charge students £9,000 per year for the first three years of their courses, with the fourth year free. However, this does not apply to Scottish or EU students, but does affect those from England, Wales and Northern Ireland.
It is expected that the other Scottish Universities will make similar statements in the following weeks.
Unsurprisingly, this move is likely to be challenged by various students from England, Wales and NI. The current Scottish Govt stance is seen by many to be illegal under European Law and contravenes the human rights of those students affected.
It seems probable that the differences north and south of the border will be resolved to bring about a fair system for all.
For property investors in Edinburgh, it is likely to mean that there will be an increase in student demand for Edinburgh properties as Scottish Students will have to compete in an 'open market' with those from England etc. And with the University having more revenue it is likely to mean that they will look to offer more courses and be able to develop further infrastructure for future growth too.
Posted by Cullen Property
2011-08-24 14:02:00
Finding suitable residential properties for investment purposes over the last 4 years has not been easy. The main problem has been the high deposit requirements fom many of the lenders during this period.
There have certainly been good properties around at reasonable prices but the high cash input requirements have pushed the 'net returns on cash invested' down to typically 3.5 - 5.5%.
However the global economic turmoil we are currently witnessing has had a potentially positive effect on the buy to let market. The reduction in the U.S. Credit Rating, the various ongoing problems with the Euro, and the tough stance on spending by the U.K. government have all lead the Bank of England to indicate recently that the base rate is going to sit at 0.5% for some time yet, possibly even until 2014. The global bad news has also caused uncertainty in the share markets and the old favourites of gold and bricks/mortar in troubled times have been buoyed.
All of this has meant that the banks have been able to lower their risk margins when calculating their mortgage product offerings with some attractive deals now coming to the market.
The RBS, Northen Rock and Skipton B/Soc have all released deals in the last few weeks with 70% Loan To Value (LTV) rates at interest rates of between 3.69 - 4.9%, with varying, but reasonable, arrangement fees.
This has had the effect of pushing the 'net returns on cash invested' up to much more attractive figures of between 8.0 - 11.0% due to the reduced amount of cash now needed to acquire a property than was previously the case.
We will be searching for these types of properties in the coming months and will be circulating them to our clients.
Posted by Cullen Property
2011-07-29 14:14:00
Cullen Property have provided some quick links for anyone wishing information on what is taking place during August in Edinburgh.
http://www.eif.co.uk/
http://www.edfringe.com/
http://www.edbookfest.co.uk/
http://www.eif.co.uk/
http://www.edfringe.com/
http://www.edbookfest.co.uk/
Posted by Cullen Property
2010-12-10 15:00:00
We are still open as usual, despite the weather causing problems.
If you do happen to visit the office, please take care on the pavements as they are very icy still.
If you do happen to visit the office, please take care on the pavements as they are very icy still.
Posted by Cullen Property
2010-08-10 10:24:00
Landlords could be set to benefit from increased rental income thanks to rising student numbers combining with a shortfall in suitable property in Scotland but, as tempting as this may sound to potential property investors, there are many legal implications of owning a House in Multiple Occupation (HMO) - which is where HMO Scotland can help.
HMO Scotland manages licence applications and removes the potential stress of owning HMO properties, which are regularly subject to change. As well as guiding and advising landlords, HMO Scotland is responsible for monitoring the council approved methods for upgrading HMO properties, so has its finger on the pulse where legislation and the resulting implications for HMO landlords are concerned.
So, click here for our Ten Top Tips for stress-free navigation of the HMO landscape.
HMO Scotland manages licence applications and removes the potential stress of owning HMO properties, which are regularly subject to change. As well as guiding and advising landlords, HMO Scotland is responsible for monitoring the council approved methods for upgrading HMO properties, so has its finger on the pulse where legislation and the resulting implications for HMO landlords are concerned.
So, click here for our Ten Top Tips for stress-free navigation of the HMO landscape.
Posted by Cullen Property
2010-06-22 16:41:00
So the new Chancellor has stood up on the bridge and pushed on the big lever labeled "Capital Gains Tax", moving it forward to read "28%", but hasn't pressed the "taper relief" button. So what's going to be the effect down in the engine room?
Well from the property point of view, probably not that much. The rise in CGT is less than the intimated hike of 40-50% being suggested just a few weeks ago and with the change being effective from midnight tonight, there won't be many sales being completed to try to beat the deadline. If anything, the deadline is more interesting than the rate change. If George Osborne had introduced a time delay then we may well have seen some speculative investors looking to offload their properties thereby increasing the supply of properties available to buy and putting downward pressure on housing inflation. This is something the new government had suggested in it's manifesto but this part of the budget doesn't tally with that.
Nevertheless, a steadily increasing housing market is good news for the majority of investors who plan to hold their property assets for a longer term. And history tells us that this new rate will most likely change again. Why? Because CGT is less than 50 years old, but since it's inception in the 1960s the regime has been changed a number of times.
It has been at the same rate as income tax, lower than income tax, inflation allowances have been introduced, inflation allowances have been withdrawn, "taper" relief given according to the time an asset is held and different rules applied for different assets. So if you're not planning on selling before April 2015 (just after the next pre-general election budget!) then today's announcement may well be somewhat irrelevant to you.
What this new rate does tell us if we read between the lines is that this government seems to be moving towards a self-funding pensions system. Chancellor Osborne opted to keep £10,100 per year CGT-free allowance, despite concerns that this would be cut dramatically. And prior to the flat CGT rate of 18% rate introduced in April 2008, the lowest rate you could hope to pay was 24% for assets held longer than 10 years, with the top rate at 40%. So a flat rate of 28% which is supposedly part of one of the toughest budgets seen in years seems comparatively low.
Perhaps the most interesting outcome of today is John Redwood's recommendations for CGT. In a letter to Mr Osborne, the ex-cabinet minister and Chairman of the Economic Competitiveness Group who is also one of the key tory tax advisors to the new chancellor, has urged for a taper relief system to be introduced which would see assets held for five or more attracting a CGT rate of "zero"!
If you had any thoughts about selling, this particular snippet might just cause you to re-assess your strategy. It may also cause many investors to enter the private renting sector to take advantage of the rising market, especially if there is strong speculation that the profits from doing so could soon be tax free. HMS Goverment's course and speed is certainly a little less foggy than it was this morning!
Well from the property point of view, probably not that much. The rise in CGT is less than the intimated hike of 40-50% being suggested just a few weeks ago and with the change being effective from midnight tonight, there won't be many sales being completed to try to beat the deadline. If anything, the deadline is more interesting than the rate change. If George Osborne had introduced a time delay then we may well have seen some speculative investors looking to offload their properties thereby increasing the supply of properties available to buy and putting downward pressure on housing inflation. This is something the new government had suggested in it's manifesto but this part of the budget doesn't tally with that.
Nevertheless, a steadily increasing housing market is good news for the majority of investors who plan to hold their property assets for a longer term. And history tells us that this new rate will most likely change again. Why? Because CGT is less than 50 years old, but since it's inception in the 1960s the regime has been changed a number of times.
It has been at the same rate as income tax, lower than income tax, inflation allowances have been introduced, inflation allowances have been withdrawn, "taper" relief given according to the time an asset is held and different rules applied for different assets. So if you're not planning on selling before April 2015 (just after the next pre-general election budget!) then today's announcement may well be somewhat irrelevant to you.
What this new rate does tell us if we read between the lines is that this government seems to be moving towards a self-funding pensions system. Chancellor Osborne opted to keep £10,100 per year CGT-free allowance, despite concerns that this would be cut dramatically. And prior to the flat CGT rate of 18% rate introduced in April 2008, the lowest rate you could hope to pay was 24% for assets held longer than 10 years, with the top rate at 40%. So a flat rate of 28% which is supposedly part of one of the toughest budgets seen in years seems comparatively low.
Perhaps the most interesting outcome of today is John Redwood's recommendations for CGT. In a letter to Mr Osborne, the ex-cabinet minister and Chairman of the Economic Competitiveness Group who is also one of the key tory tax advisors to the new chancellor, has urged for a taper relief system to be introduced which would see assets held for five or more attracting a CGT rate of "zero"!
If you had any thoughts about selling, this particular snippet might just cause you to re-assess your strategy. It may also cause many investors to enter the private renting sector to take advantage of the rising market, especially if there is strong speculation that the profits from doing so could soon be tax free. HMS Goverment's course and speed is certainly a little less foggy than it was this morning!
Posted by Cullen Property
2010-04-29 14:51:00
The Nationwide building society has reported that house prices increased by 1% during the month of April, with the cost of the average home now being £167,802. According to the building society this increase means that UK house prices have risen by 10.5% in the year to the end of April.
The following link provides a full summary of the Nationwide's latest house price figures:
http://news.bbc.co.uk/1/hi/business/10090047.stm
The following link provides a full summary of the Nationwide's latest house price figures:
http://news.bbc.co.uk/1/hi/business/10090047.stm
Posted by Cullen Property
2010-04-15 13:56:00
Tuesday saw the first of this year's Edinburgh Chamber of Commerce Golf Club outings which was held at Dunbar Golf Course. All those that participated had a great day and found the course to be in excellent condition considering the damage that had been caused by the recent storms. The winner of the days outing was our very own Chris Laidlaw.Our last Investor Newsletter offered the opportunity for our clients to join us for a game of golf on one of the Chamber outings. So, if you'd like the chance to test your skills at some of the best courses that Scotland has to offer, please email steve@cullenproperty.com giving your first second and third choices from the following table:
Events are organised by the Edinburgh Chamber of Commerce Golf Club so you will need to be a member at a recognised club and have a handicap of 18 or less. The round is followed by a meal and prize giving and is a thoroughly enjoyable day out so we hope you'll be able to join us on the first tee in 2010!
Please note: we only have two guest invitations available per event and will unfortunately have to apply a "first come, first served" policy.
Please note: we only have two guest invitations available per event and will unfortunately have to apply a "first come, first served" policy.
Posted by Cullen Property
2010-04-09 16:46:00
Yesterday the Bank of England's Monetary Policy Committee (MPC) announced that interest rates were to remain at a record low of 0.5% for a fourteenth consecutive month.
It is likely that as a result of this descision, mortgage rates will remain as they are and we will continue to see buy to let rates of between 4.5% to 6% with a minimum deposit of 30% being required.
This week also saw the Halifax Building Society announce that the average house price in the UK has risen by 1.1% for the month of March. Martin Ellis, economist for the Halifax said: "An increase in the number of properties available for sale is begining to reduce the imbalance between supply and demand. This should help to contain the upward pressure on house prices."
We have seen first hand an increase of properties being offered for sale within the Edinburgh market. As a result we are seeing an increase in properties that are offering a good investment oppotunity.
To read more regarding the outcome of the MPC's meeting, the link to the following BBC article provides an overview: http://news.bbc.co.uk/1/hi/business/8609259.stm
The minutes from the Bank of England's Monetary Policy Committee meeting held on the 7th & 8th of April will be available as of the 21st of April and can be viewed by using the following link: http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2010/index.htm
Posted by Cullen Property
2010-03-23 15:42:00
The City of Edinburgh Council is contacting all landlords in the City whose Landlord Registration is coming up for renewal in May 2010. Many landlords have not done this before since, if you are a HMO landlord, Council Officials will have done the entry for you.
Need help? Contact Malcolm at malcolm@cullenproperty.com.
Posted by Cullen Property
2010-03-12 15:20:00
February saw the introduction of our new company branding which was presented at a launch party for clients and friends along with our new web-site www.cullenproperty.com. Malcolm our MD gave a talk on the current market place, the full script of which can be viewed at new web page Investment Article.
You may have been confused lately by the many conflicting news articles analysing the property market; Bill Jamieson at the Scotsman has written an article which we feel gives a very useful summary: click for article.
We are now into the third month of 2010 and hopefully winter will soon be behind us. Certainly one would think that spring is with us judging by the rush of properties coming onto the market. Time will tell how the market will cope with the change but well presented properties in good locations are selling very well now and will continue to do so. There never was a serious downturn in value in the City; Edinburgh's property market handled the downturn by a severe reduction of quality property coming to the market and, as a result, a drop in values never really established itself. Most vendors had a choice and many chose to wait for better times. So, here's to a successful spring!
You may have been confused lately by the many conflicting news articles analysing the property market; Bill Jamieson at the Scotsman has written an article which we feel gives a very useful summary: click for article.
We are now into the third month of 2010 and hopefully winter will soon be behind us. Certainly one would think that spring is with us judging by the rush of properties coming onto the market. Time will tell how the market will cope with the change but well presented properties in good locations are selling very well now and will continue to do so. There never was a serious downturn in value in the City; Edinburgh's property market handled the downturn by a severe reduction of quality property coming to the market and, as a result, a drop in values never really established itself. Most vendors had a choice and many chose to wait for better times. So, here's to a successful spring!
Posted by Cullen Property
