This week has been a momentous one for all those invested in a greener future, with the most powerful wind turbine ever created switched on in Orkney, Scotland. This amazing project is set to generate enough energy to power 2000 homes for 15 years. Landlords are well-aware of the government’s plans to make housing more energy-efficient and will be happy to see its commitment to the environment extending to more than just boiler and insulation regulations!
Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.
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- Controversial Pay-Per-View Company Seeking Investors – Founder of the controversial ViewRabbit company, which proposes to charge prospective buyers and tenants for viewing properties, has stated that they will soon be opening the doors to investment fundraising for their company. He hopes to attract UK-based investors but has not ruled out seeking international interest. Considering the huge shortfall in housing and subsequent high level of competition for viewings, the ethics of such a scheme, which will inevitably charge many people to view a house they will never be able to get, have to be fully scrutinised. I can’t see this taking off quickly. Would you be happy and willing to pay for a viewing?
- Could Allowing Pets Make Buy-to-Let More Successful? – Moneyfacts, a respected Buy-to-Let monitor, has suggested that landlords may be more successful in letting out and retaining tenants if they allow pets. They even suggest that extra costs such as pet-proofing properties and pet insurance may be mitigated by the benefits of letting to wider audiences and encouraging high-quality tenants to stay. However, allowing pets is not without its risks. Many landlords will know firsthand the impact even one unruly pet can have on a property and will remain unwilling to risk their time and energy fixing the damage
- Mortgage-Lending to Reach Highest Level in Over a Decade – An increase in gross mortgage lending has now been revised to £285billion, according to the Intermediary Mortgage Lenders Association. This is a staggering £32billion more than last year and is the highest level of mortgage-lending since 2007. This is a testimony to the current strength of the UK property market. Buy-to-Let lending has also risen in the past 5 months, with 2021 predicted to be the best year for Buy-to-Let since 2016. With demand in all mortgage sectors expected to continue rising, this is a very hopeful signal of market recovery from the pandemic.
- Holiday Let Businesses Surge During Pandemic – Individuals who seek to capitalise on tax advantages for holiday lettings have resulted in a surge of holiday let businesses, which are up 83% from 2019. Those who let properties as furnished enjoy even more financial benefits. With the tax band difference between those buying in their own name and those buying through incorporated businesses being a stark 26% favouring businesses, it is unlikely that this trend of increasing holiday let businesses will cease any time soon.
That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected] – if not, see you next week.