Nationwide Announce Reduction in Profits Following Buy-to-Let Changes

Nationwide Announce Reduction in Profits Following Buy-to-Let Changes

Nationwide Announce Reduction in Profits Following Buy-to-Let Changes

Recent tax changes affecting landlords have led to a rapid decrease in buy-to-let mortgages as the financial sting takes hold. As well as forcing many landlords to either sell their rental properties or reduce their portfolio, the affect is also hitting the profit margins of high street lenders such as Nationwide.

In a bid to create more homes for first-time buyers, the Government has introduced a range of tax changes which have hit landlords hard. Phased mortgage tax relief for high income tax payers, increased stamp duty, the discontinued ”wear and tear” allowance and more stringent buy-to-let mortgage rules have led to a massive downturn in the number of people seeking out buy-to-let mortgages.

Downturn in Buy-to-Let Mortgages

According to a recent report in the Daily Mail, the UK’s biggest building society, Nationwide, announced a £886million decrease in profit in the last three quarters of 2017, which equates to a 6% slump compared to 2016’s figures over the same time period.

In addition to fewer landlords taking out buy-to-let mortgages, it’s been revealed that more landlords were now in arrears with their mortgages. Higher house prices and lowered rents could be responsible for this downturn, with many landlords struggling to make a large enough yield on their rental properties to cover their mortgage repayments.  A slow-moving property market is also making it difficult for landlords to procure a Need a fast house sale for property they need to offload, particularly if they have tenants in situ.

Although there has been a large downturn in potential landlords taking out buy-to-let mortgages, there hasn’t as yet been a corresponding rise in the number of first-time buyers getting onto the property ladder, leaving a slew of properties of the market.

Still a Need for Privately Rented Accommodation

A combination of Brexit, low wage increases and high inflation have made many people cautious about making such a large financial commitment. However, there is still a massive need for private rental accommodation in the UK as local councils and housing associations simply do not have enough housing stock to cope with demand.

Many landlords are looking further afield to increase their property portfolio, looking at areas with lower house prices, suppressed housing markets and a greater number of people looking to sell their house fast. These types of areas usually offer very good returns on investments and are more likely to give the yields required by lenders to cover buy-to-let mortgage repayments.

Companies That Buy Houses Fast Could Help

Property buying companies that operate in areas where people are more likely to need a fast house sale are well placed to organise property sales in areas attractive to tenants and help those who want to buy property for cash.

Buyingpropertyfast.com are Approved property buyers which specialise in helping people to sell their house for cash. Selling a house fast allows both buyer and seller to move quickly with their plans, without having to worry about renovations to the property or how to deal with any sitting tenants.

A Decrease in Buy-to-Let Properties May Slow Down House Sales in Peterlee

A Decrease in Buy-to-Let Properties May Slow Down House Sales in Peterlee

A Decrease in Buy-to-Let Properties May Slow Down House Sales in Peterlee

According to the National Landlords Association (NLA), around 20% of Landlords in the UK are considering selling up or downsizing their property portfolio, which could have devastating consequences for people who need a fast house sale in areas where there are many rental properties, such as Peterlee.

Information released from the NLA, states that recent Government changes have to led to landlords paying more in tax and seeing sizable downturns in profits. The changes have meant that around one in five landlords are giving serious consideration to the future of their portfolio and many are looking to offload some or all of their buy-to-let properties. The NLA says that a record number of its members are reviewing their futures as landlords and the tax changes are likely to put off potential landlords wishing to buy property for rental purposes.

Government Tax Changes are Affecting Landlords

The Conservative government has introduced various tax changes which has harmed the buy-to-let market. Notably, these include withdrawing landlords’ “wear and tear allowance” and abolishing mortgage interest tax relief for people who pay higher rate income tax, both of which have ensured hefty dents in profit margins for landlords.

In addition, potential landlords are facing a 3% stamp duty surcharge for second (or more) properties and are now banned from charging their tenants letting fees.  This has forced many landlords in Peterlee to review the number of buy-to-let properties they have in their portfolio or to quit being landlords full stop.

Fewer Rental Properties Could Have an Effect on the Housing Market

This could have a knock-on effect in two different ways. Firstly, tenants may well be affected by increased rents and less choice as fewer properties become available for rental. Secondly, there could be a surge of smaller properties hitting the market which may adversely affect property prices in places such as Peterlee. For anyone wishing to sell their house fast, this sudden influx of similar priced properties could well hinder their progress and substantially increase how long it takes to sell a property.

If you’re in this position, you may well be concerned and thinking “how to sell my house fast?” Thankfully, there are companies that buy houses fast which can help to address this problem and help you quickly and easily sell my house fastProperty buying companies help people to navigate a fast house sale without the need for estate agents or waiting patiently for a suitable buyer to come along.

There is a way to sell your house for cash.

Buyingpropertyfast.com can help you to sell my house for cash while avoiding many of the pitfalls of the traditional route.  As Approved property buyers, we can buy property for cash regardless of the condition of the property or the state of the property market in Peterlee.

If you’re a landlord who wants to sell a property fast, then companies that buy property for cash can offer you a quick solution that will not affect your tenants and allow you to withdraw the financial investment from your portfolio.

Could Your Tenants Be Subletting?

Could Your Tenants Be Subletting?

Subletting, if not agreed by the landlord, can cause all sorts of problems and is also illegal. Landlords in Doncaster who discover that their tenants are subletting can start legal proceedings and take steps to evict if necessary.

Some of the problems encountered with illegal subletting include extra wear and tear on the property, potential debt issues with the property becoming blacklisted, and the potential to affect the landlord’s insurance policy – all of which can have a detrimental effect on profit as well as the market value of the property.

There are lots of rental properties in Doncaster, many of which may be illegally sublet. Whether this is a simple case of a person allowing their partner to move in without getting prior agreement from their landlord, or the tenants subletting out other rooms in the property or even moving themselves and renting the entire house out at a profit.  Often it can take months or even years before the tenants subletting becomes known.

Extra people in a rental property in Doncaster can cause many problems for the landlord. It many cases it leads to problems with anti-social behaviour – particularly if there’s lots of noise coming from the property. There will often be an excess of rubbish outside the property. If this is not disposed of regularly by the tenant or removed by the council in the fortnightly rubbish collections, it could lead to a vermin infestation, unpleasant odours and complaints from the neighbours.

 

More worryingly, if there’s an emergency at the property, such as a fire, the landlord or letting agency may not be able to account for all the people living there, which could have devastating consequences.

Ways to check if your tenant is subletting:

There are ways to determine if your tenant is likely to be subletting, these include:

  • Making it difficult for the landlord or letting agency enter the building
  • An excess of bedding or clothing in spare rooms
  • More toothbrushes and toiletries than expected
  • Mail addressed to people other than the agreed tenant
  • Reports from neighbours
  • Other cars frequently parked outside the property

Subletting Problems are Prompting Many Landlords to Sell

Persistent problems with subletting have led many landlords to consider selling their buy-to-let properties. However, this is often fraught with difficulties as some are unsure of how to procure a fast house sale. Very few buyers on the open market are willing to buy property for cash, particularly a buy-to-let property which may still have tenants.

Companies that buy houses fast are able to give landlords in Doncaster an easy option to sell their house for cash if they need a fast house sale.

Property buyer companies such as buyingpropertyfast.com are able to eliminate the usual stresses and worries landlords may encounter when trying to sell a property with sitting tenants. We are able to give realistic valuations for properties regardless of the condition of the property or whether it has tenants or not, saving landlords valuable time and money trying to improve their properties or give their tenants notice to leave.

 

With property buying companies, you have a strategy in place to sell your house fast

With property buying companies, you have a strategy in place to sell your house fast

With property buying companies, you have a strategy in place to sell your house fast.

When you decide to sell your house or property, you need to have a fundamental understanding of the proper procedure and strategy involved. Not having much experience in this field, could lead you to be misled by some unscrupulous middle agents or you may suffer financially if your house is valued too low.

A sound strategy can make all the difference and lead to the success of selling your home so, often the best property buying and selling strategy is to use companies that buy houses fast. This way you can be assured of a swift purchase of your property without any worry.

The strategy of property buying companies consists of:

Free Visit – We send someone from our experienced team to assess your property and give you a fair quotation.

Intense Research – We will give you the valuation after researching all of various aspects and constraints of your home and the property market in your area.

Offering the best price quickly – with Buyingpropertyfast you won’t have to wait too long for your valuation, we will give you a fair quotation in no time.

Cash Offer Property buying companies will buy your property for cash, making the process of selling your home much quicker and easier.

How to find cash buyers?

One way to search out a cash buyer is to list your house “For Sale By Owner” (FSBO). However, you’ll have to specify that you’re solely accepting cash offers, which may severely limit the number of individuals who are able to purchase the property.

Another way to attract a cash buyer is to look online for a “sell my house fast” buyer or “sell my house for cash” website and reach out to individuals who may be interested. However, there are no guarantees that the buyer will offer a fair price for the property or be willing to buy the house as fast as you would like.

Fortunately, companies that buy houses fast can assist you – we’re cash buyers with the funds available to shop for a property fast.

Here’s the way to work with a cash buyer.

When you do find a cash buyer, they’ll most likely need to determine the value your house before they can negotiate a cash offer. In some cases (such as once you work with us), there’s no obligation to accept the valuation on offer or move forwards with the sale of the property and no fees will be taken.

If you do opt to settle for the offer, then you simply tell the cash buyer and if they’re an expert property buying company, they’ll will be able to make all the necessary legal arrangements for you, saving you a lot of time and hassle.

Forget about Agent and Legal fees – There are no hidden costs and all legal fees will be covered by the property buying companies

Best professional service – Selling your home fast can be a relatively stress-free experience. Our professional and experienced team can help to take a lot of the worry and stress out of selling your home, and we will give you the price for your house.

All you need to do is contact us and we can set the wheels in motion. We will value your house and make an offer for your property. With property buying companies, you can be assured of proper planning which can lead to the quick selling of your house.