August 2017 Property Market / Rate Update

Following story from the BBC prompted a quick update on the state of play as we head in to Autumn 2017 http://www.bbc.co.uk/news/business-41523941.

Please email us at info@carbonfc.com to ask for more information and ensure you keep on top of market dynamics. A few topical observations below.

• BTL rental calculations are starting to improve from early part in the year as BTL lenders realise they aren’t lending enough money! Still very hard to get +65% LTV unless you earn significant income.
• As of Sept 1st Landlords with large portfolios are now being treated differently to clients with just 1-4 units. Watch this space are we see how punitive lenders will be but proper research is essential.
• Residential rates still all-time low although mutterings of base rate increases have started momentum of the most lucrative products being pulled. Now is the time to take advantage and secure the lowest rates.
• Clients are still unsure if she should be fixing in for 2, 3 or 5 years. Brexit outcome being a large factor in current client confusion.
• Development funding increasing at pace in 2017 as investment liquidity in the market increases with investors/institutions looking to get higher return from their money. To this end we are seeing new entrants into development funding space with more choice for consumers.
• Following from taxation changes, BTL investors looking at Ltd company as purchase vehicle opposed to personal name. HMO/Student lets are also proving more popular due to their higher yield and lower purchase entry cost.