Buy To Let Property Archives - National Residential

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Buy To Let Property

The Beginnings of Buy To Let Property

The percentage of property sold as Buy To Let property (BTL) has risen steadily since the mid 1990s following the deregulation of the rental market in the 1988 Housing Act which introduced the Assured Tenancy; the widening of its definition in 1996 with the Assured Shorthold Tenancy; the availability of 100% mortgages and the rise of subprime lending that led to the introduction of Buy To Let Mortgages that do not require the property buyer to live in the property being bought.

Buy To Let Favourites

The type of homes being bought as  buy to rent property and the percentage of buy to let loans compared to owner occupier mortgages  vary depending on location but in general, London has had a significantly higher rate of buy to let property (i.e. bought with buy to let loans) than anywhere else in the UK and the most common types of buy to let property  are flats and terrace houses.

Short Term Gains of Buy To Let Property 

The decline in the number of new homes being built in the decades leading up to the rise in the popularity of the buy to let property – especially in the number of local authority homes which reached its lowest point since the 1950s in the mid 1980s and all but ceased in the mid 1990s with less than 1,500 new local authority builds per year since (compared to its peak in the late 1960s of 400,000+) – and the shortfall between supply and demand for new builds since resulted in property prices tripling between 1996 and 2006 making property investment seem like a guaranteed way to make money through short term investment and the further rise of the buy to let property market as people bought property with the intention of renting it for a short while to avoid household running costs then selling it a relatively short time later for a significant profit.

With high consumer confidence and a rise in property development TV  shows, demand for property also came from investors looking to make profit through short term ownership and home improvements.

As a result of rising property prices and investment interest, fewer people could afford to buy  property as their home and the rental market continued to grow, strengthening the position of buy to let landlords.

Long Term Gains of Rental Income

Stagnant wages and increased living costs led to record breaking levels of repossession from 2008 – 2010 which resulted in taxpayers money being used to bailout banks and tighter restrictions on mortgage loans marking an end to the common availability of 100% mortgages, in turn making home ownership even more implausible for young people and first time owners, again strengthening the demand for buy to let properties from property investors looking at monthly income rather then short term gain.

The number of buy to let loans raised by 10,000 from 1999 to 2000 and more than doubled that rising by over 24,000 in the year 2000 to 2001

The Future of Buy To Let Property?

Buy to let lending has traditionally been more concentrated in London where the transient nature of some of its inhabitants together with exceptionally high property prices have resulted in a huge rental market.

Nationally, more than 2 million UK households rent through the private sector but in some areas the popularity of buy to let investment has resulted in a surplus of rental properties available meaning stagnant or even lowered rents, longer periods of unoccupancy and looser checks on tenants.

The Royal Institute of Chartered Surveyors has described the situation as “too many landlords chasing too few tenants”.

Recent government initiatives including less tax relief on mortgage interest, tighter control on rents, a bigger rate of stamp duty for second homes and higher rate of tax on capital gains have reduced the profit in rental properties financed by buy to let mortgages.

Added to the new regulations and the possibility of a smaller population with the effects of Brexit on the work options of EU nationals plus dips in the housing market and a slow down in the increase of property prices, some mid-term investors are now looking to reduce the risk of an uncertain market and cash in on their investments by selling their residential rental properties and/or move their investment to commercial properties that are exempt from some of the new legislation.

Rental property types are likely to change and and the buy to let market is likely to continue to shrink and/or transform but high demand for rental property while there is continued confidence in the long term investment opportunities in the UK property will ensure a buoyancy of the rental market.

For more reading on the history and influences on the buy to let property market, please see the following links.

Portfolio Landlords: Now is the time to sell your properties for the best price

House prices are predicted to fall following the end of the stamp duty holiday and tax bills are high. If you’re a portfolio landlord, now is the perfect window to sell part or all of your buy-to-lets, from the experts who know exactly how to do it, for the best price.

We’re all in the same boat, having built up a handful of properties in our portfolio, we’re now facing higher tax bills than ever before, and the fear of our portfolios losing their value when the stamp duty holiday ends. As a private landlord myself, I understand all the challenges landlords are facing right now. It’s why I believe we have the best team in the business to help, with over 20 years of experience behind us to solve every landlord problem, no matter what the problem. I’ve personally got 2,500 houses over the line and sold, even with tenants still in the properties. There’s no issue myself and my team can’t overcome, delivering win-win solutions for landlords, so they can sit back and relax knowing everything is in hand.

A study conducted by landlord insurance provider Simply Business found that over a quarter of landlords have already made the decision to reduce the size of their property portfolios. That number is set to increase as landlords cash in whilst they can still get the best prices before the 30st June. You need a company you can trust, who will take away the hassle, and make sure you get the best price, fast. That’s where we come in.

Continue reading Portfolio Landlords: Now is the time to sell your properties for the best price

Capital Gains Tax Explained

Who Pays Capital Gains Tax (CGT)?

Capital gains tax on property Capital gains tax is payable on the sale of second homes and buy-to-let property. You generally won’t need to pay the tax when selling your main home (unless you have developed it to use parts of it for business)- however, you may also need to pay CGT if your home is partly used as a business premises, or you lease out part of your property.

Continue reading Capital Gains Tax Explained

Landlord overjoyed as he sells his tenanted property portfolio with National Residential for half a million in just 26 days

Helping Landlords Sell

For a landlord from Wandsworth who responded to our last email, that’s exactly how he celebrated his week when we sold his entire portfolio of 5 tenanted properties in less than a month, releasing over £500,000 in cash with zero hassle, worry or stress while we sorted out any problems on his behalf.

Established in 2006, it’s just one example of why we pride ourselves with our “any problem we can fix” formula, led by myself, founder and industry expert, David Coughlin.  

Continue reading Landlord overjoyed as he sells his tenanted property portfolio with National Residential for half a million in just 26 days

Mentoring Opportunities With David Coughlin

My journey from modest beginnings to a Cambridge postgraduate owning a 100-property portfolio landlord is one of the private rental market’s more extraordinary journeys and one you can read here in full in Landlordzone’s spotlight feature on experts in the industry.

Now for the first time ever, I have decided to share my journey and expertise.

David Coughlin, CEO National Residential

Continue reading Mentoring Opportunities With David Coughlin

National Residential solve any problem to sell buy-to-lets for the best possible price.

If you’re a landlord, and you haven’t yet heard of us here at National Residential, there’s a good chance you’ll want to. Established in 2006, we pride ourselves with our “any problem we can fix” formula, led by myself, founder and industry expert, David Coughlin.


Helping Landlords Sell

Being a private landlord myself, with 100 properties in my portfolio, I first-hand understand the issues and challenges facing landlords today. It’s about overcoming solutions fast, but also in a way that means both the landlord and the tenant are happy. With National Residential, we’ve found the sweet spot when it comes to helping landlords sell, so we’ve become experts in taking away the stress. We know how to solve every barrier that landlords come up against, even for example when they can’t gain access to their own properties.

How do I get the best price for my buy-to-let?

This is where I and my team at National Residential go above and beyond to get you the highest price for your buy-to-let, no matter what challenges you need to overcome. Be that negotiating with your tenants, sorting out repairs, and even helping tenants relocate, we have the best team to do it all and have the track record to prove it.

The result? We deliver you the best price possible, fast, no problems.
Continue reading National Residential solve any problem to sell buy-to-lets for the best possible price.

Helping Landlords Solve Problems No Other Estate Agents Can Manage

Landlords face many problems, most relate to property and/or tenants however ongoing economic and legislative changes have added a lot more things for landlords to worry about. Shrinking returns, increased costs, more rules, more penalties and the prospect of fewer options to end tenancies have resulted in more and more landlords selling some or all of their rental properties.

New Rightmove research indicates 24% of landlords are planning to sell at least one property from their current portfolio, 13% will be selling more than one and 11% report they wish to sell their entire portfolio. This is despite rents being at record levels having increased by 2% in the last year.

We take a look at some of the common problems forcing landlords to sell and how we can help landlords wanting to sell up because of them.

landlords tax forcing landlords to sell up Continue reading Helping Landlords Solve Problems No Other Estate Agents Can Manage

House Prices After Brexit


What Will Happen To House Prices After Brexit?

A lot of people have speculated about what will happen to house prices after Brexit. The uncertainty has had a dire affect on the housing market with fewer buyers, fewer sellers and sales taking longer to complete. Despite the smaller volumes of trade and slowed growth rate, house prices have largely remained the same with only Scotland showing a small fall in house prices in the months immediately running up to the first withdrawl deadline in March 1, 2 so why is the market so affected by the uncertainty over Brexit?


Stark Warnings About House Prices After Brexit Have Excited Buyers

There have been stark warnings from the Bank of England’s governor Mark Carney that house prices could fall by up to 30% from their pre Brexit level if there is no deal. He also said that is his job to plan for the worst case scenario suggesting that the pessimism is based on possibility rather than probability. While most industry experts do predict some sort of drop in price following a no deal Brexit, although there are also those who predict no change and those who predict slight increases 3.

Gauged by the reduced activity in the housing market it seems as though a significant number of buyers are delaying their plans to buy property until after Brexit due to the fear of negative equity if the property values drop significantly.

The buyers most tempted by the prospect of a drop in property costs are those who are not also selling during the same period – i.e. first time buyers, second home owners and buy to let landlords. They represent a significant percentage of the housing market buyers.


Will House Prices Drop After Brexit?

The simple answer is that nobody can know until a plan has been agreed and even then the extent of any affect on house prices after Brexit will also depend on a range of other economic factors including Secton 24, aka The Landlord’s Tax.

The following information gathers together some relevant factors and attempts a logical understanding of the situation. It is NOT intended as any sort of advice.


Continue reading House Prices After Brexit

Selling Tenanted Property

NB. National Residential are pleased to announce our new Joint Venture funding opportunities for anyone planning to re-invest their capital in property development. Please see Property Development Funding

selling tenanted property

As we previously documented in Complications & Problems Selling Rental Property,  there are A LOT of decisions to be made and a lot of laws to be considered when landlords decide they want or need to sell their rental property and a lot of it depends on factors that are usually unknown at the start of the process – such as, whether the buyer you haven’t met yet is looking for a private residence or a rental property and whether they would prefer a sale with sitting tenants or vacant possession.

If landlords selling tenanted property choose to leave tenants in situ during the sale it could cause problems showing the property but if they vacate the property too soon, it could cost them thousands in lost rent.

The best option, of course, is to leave sitting tenants in situ as long as possible but not so long that it causes problems. Timing, speed and legal advice are all crucial to getting the best results for landlords selling tenanted property.

National Residential specialise in selling tenanted (& sub-tenanted) property, often with additional complications like short leaseholds or absentee freeholders.

Continue reading Selling Tenanted Property

Complications & Problems Selling Rental Property

Problems Selling a Rental Property With Tenants In Situ During The Sale

Selling a rental property with tenants in situ can be difficult in any circumstance because it can add cost (sometimes in the form of losses), risk and complication throughout the process to both the buyer and the seller.

For home owners selling property while tenants are in situ, the potential for problems range from showing interested parties around the property without infringing a helpful tenant’s legal right to ‘quiet enjoyment of the property’; to trying to arrange access to the property with ‘unhelpful‘ tenants; to ‘bad’ tenants putting buyers off through sabotage, unkempt surroundings and resentment; to collapsed sales through problems with mortgage conditions; to the compliance of any tenant to fulfil any state of occupancy at completion agreed between the buyer and seller.

In other words, some buyers might want the tenants to stay while other buyers want them to leave. They can refuse to do either. It’s a risky business.


Added to all that, with the legal implication tenancy types have on eviction options and thereby sales options it’s easy to understand why more sales can fall through selling a property with a sitting tenant and why property with tenants in situ can be difficult to sell.

Continue reading Complications & Problems Selling Rental Property

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