Is Britain falling out of love with home ownership?

Across the UK the order of ‘things’ has been fairly rigid for the last few hundred years. It’s a simple pathway; get a job (and stay with the same employer until retirement); get married; buy a house. However, today’s reality is quite different - and you don’t have to be a sociologist to spot it.

The current generation are more likely to ‘job hop’ across not just employers but also careers. In fact, recent research suggests nearly half of millennials plan to leave their job within two years.

Right to Reply on the Right to Buy

Thoughts from our CEO, John Goodall

Imagine if every time you hired a car you could buy that very car at a discount to its market value, and there was nothing the car rental firm could do about it. You would likely see some enterprising folk hiring, and then purchasing, a car in this way – something that would have quite an impact on the broader second-hand car market.

Top 3 Most Desirable Property Attributes

Ever wondered what the most desirable attributes are in a property for renters? Having the right ingredients makes a huge difference to renter decisions (and landlord profits), so we researched what this could mean.

Of course, some renters are entirely driven by price, however there’s a lot more depth in terms of what renters are looking for.

Buy to Let - Why all the bad press?

Thoughts from our CEO, John Goodall

A few days ago an applicant for a software engineer role at Landbay withdrew from the interview process as he did not want to work for a buy to let lending business as he felt that it was preventing first-time buyers getting on the house ladder.

New £1bn agreement signed

Thoughts from our CEO, John Goodall

I am delighted to announce that last week we signed an agreement with a leading financial institution for them to fund £1bn of buy to let mortgages over the next few years.

This additional funding will allow us to continue to serve our intermediary partners and their clients with competitive products.

All you need to know

The FCA introduced new rules for the P2P industry earlier this month, so what will be the impact?

On June 4th 2019, the Financial Conduct Authority released its long-awaited Peer to Peer (P2P) lending final rules. The document heralds a raft of new regulations designed to improve transparency and ensure investors are better able to make informed decisions.

Our Stress Test

What would happen to your investment if the economy took a severe turn for the worst?

Deciding where to invest your money is not to be taken lightly.  As part of the decision whether to invest with us or not, you want to know how safe your investment will be and whether your returns will be stable. Ultimately, you are investing in our expertise to manage our business well and make smart lending decisions.

Partnership with a BTL specialist will reap dividends  

Partnership is a word which is often undervalued.

In the lending market, there are providers who are generalists, in the sense that they offer a wide range of products covering a multitude of likely borrowing scenarios. and this comes with an expectation that the generalists are fully dedicated to the different sectors at which their products are aimed.

Yet is that your experience?

Landlords should look north of London for rental growth

Landlords can rest assured that there is decent rental growth to be found across the UK, particularly if they look north of London. On the face of it, landlords have had a tough time in the past few years, from increased regulatory pressure to a significant increase in stamp duty costs, yet they have managed to shoulder many of these costs without passing them onto tenants.

Rental hotspots and 'notspots' in the UK revealed

Despite political and economic turmoil, the British property market has remained resilient. Rents are growing at a steady pace, and that growth is not restricted to specific regions or rental brackets. Meanwhile, house prices in England fell for the first time in seven years in the first three months of 2019. This combination is good news for first-time buyers and landlords alike.

East London speeds ahead in rental growth race

We are seeing a cultural shift in London, as demand climbs in the East and traditionally popular areas like Westminster and Chelsea slide down the league tables. While part of this is a function of affordability, other things too are at play. Rising employment and a thirst for flexible living mean renting is more attractive than ever, with a widening commuter belt in the face of developing infrastructure like Thameslink and Crossrail.

The £1.8k rental Brexit dividend

It’s hard to ignore the impact that the vote to leave the EU has had on property market in London. While tenants are better off, without necessarily realising it, uncertainty in the market has caused a conundrum for landlords.

Many landlords will have been looking to offset the Government’s punitive tax regime by raising rents, however the uncertainty surrounding Brexit has forced the vast majority to forfeit this to maintain a steady income.

Tenants spend a third of their pay on rent

Rent as a proportion of a monthly salary varies across the UK. In London, despite having higher monthly pay packets, tenants are paying as much as 61% of their gross salary on rent for the average rental property. For a one-bedroom property this drops to 47%. Other regions with tenants with higher than average rent as a proportion of their pay are the South East and East England, which pay 42% and 38% respectively of their gross salary on rent.

Rental growth across the UK showing signs of a sustained recovery

The average rent in UK has risen by 0.13%, the highest monthly increase since April 2016. The increase pushes the average rent paid for a property in the UK up to £1,209 per month, dropping to £767 if London is excluded. Rental growth on an annual basis also showed signs of a sustained recovery, with rents across the UK increasing to 0.97%, the highest level seen since May 2017.

Rental growth across the UK is stuttering. However, there are signs of a recovering market in London and stronger demand for rental properties. On the face of it, landlords have had a tough time in the past two years from increased regulatory pressure to a significant increase in stamp duty costs, yet they have managed to shoulder many of these costs without passing them onto tenants.