Will we be a nation of tenants?

Norland Place W11

“The largest mortgage regulation change in history”

That quote summarizes recent attention grabbing headlines across the property news spectrum. This is of course the now not news that both lenders and their customers are facing much tighter restrictions when applying for a mortgage. This is in a bid to curb the pre-recession extravagances in the mortgage lending  market.

The new  mortgage lending rules have changed the way in which lenders will be making affordability assessments delving deeper into the lifestyles of their clients in order to make more rigorous assessments under the new guidelines. This includes a stress test based on the future affordability of the mortgage and further probing questions on your weekly shopping questions that could mean that many more first time buyers seeking a mortgage could be turned away.

This has led to the CML to update its mortgage marketing review, with its guide Working TogetherPaul Smee, director general at the CML, had this to say: 

“This collaborative approach in working jointly with the IMLA and AMI demonstrates the effectiveness of joint engagement in driving good practice within the industry to deliver good outcomes for customers.”

So whilst this does mean there is a tightening of industry standards on the whole, there is as always a silver lining, which could see benefits to London rental properties and London Letting Agents.

So with all this pulling up of socks in the industry, are we seeing a tenancy future? Its almost certain that this is not a future most people will be looking forward to, as over a third of rental properties are declared non decent. Some landlords enjoy an unsavory amount of control over their tenants, with claimed property damage going beyond what you can or can’t put up on a magnolia walls.

So what is the attraction of buying? It may simply be that old saying  ” An Englishman’s home is his Castle” or perhaps (more likely) it may be  how often we see a property bubble in the UK. As our previous article pointed out there has been a significant bubble across the UK but none more so than in London, with a massive 18% increase in recent months.

Compare this then (as we often do) with our German counterparts. The German property bubble reported in an FT article in February pointed out that there hadn’t been a property price bubble since 2003. That is since the time the Bundesbank had been recording such fluctuations.  Compare that with the UK where in the past, the common advice on property development programs was generally not to rent but to wait for price fluctuations in the UK property market and then sell.  Fast forward to these pre recession times and even today we are still a nation determined to buy. Now might be the time to start considering the benefits of a rental future.

In Germany where lending restrictions have been tough since the year dot there is much greater variety in rental properties,  as Savills researcher Lucian Cook put it [in a recent telegraph article

“Government policy needs to become less fixated on home ownership and urgently address the need to substantially increase rental supply and encourage long term landlords. That would create more competition among landlords and consequently improve the standards and choice of rental accommodation and reduce the pressure on rents,”

Or in lay persons terms, the more milk supply you have and the greater the demand for milk on the shelves – then the cheaper the milk, and the more choice you have.  Knowledge worth more than a bowl of cornflakes.

So perhaps “an Englishman’s home is his castle”  is a dead phrase, the latest lending restrictions could work in favor of the UK rental market and perhaps even make more sense.  Perhaps the phrase we are searching for is something more German like; “Alles ist seinen Preis wert”  or the English equivalent, which  is; “Everything is worth its price”

You are of course welcome to browse our Mews property rentals.

 

Sell your home this spring

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We’ve just come out of a long wet and dreary winter, but we’re having a nice spring so far despite the rain and the surprise smog. With all that pollution and British rain lashing your windows your property might not be looking at its best which could potentially be turning people out of the door. Read More >>

London Property Investment: Why a Mews is a good investment

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The Savils 5 year forecast for the UK residential market would indicate that prime real estate in London is a good future investment as far as property price increases are concerned. Whilst the London property bubble has created a significant gap in house prices growth in the capital is set to increase exponentially. Read More >>

You Should be Investing in residential property in London: Here’s Why

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The residential market survey (RICS 2014)  indicates that the imbalance between supply and demand is the main catalyst for growth, by creating a greater upward pressure on the price of residential property. In particular the strongest gains in residential properties were in London and the South East. This is perhaps also attributed to low supply, so whilst the rest of the UK see’s an increase of roughly 4%, the growth in London is much higher.

regional breakdown of prices RICS Residential market survey 2014

There is a rise in London property prices and the South East. Regional breakdown of prices, Residential Market Survey [RICS March 2014]

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London Officially Becomes the Property Investment Capital of the World (Again)

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London has become the official property investment capital of the world. The ranking comes as a result of a survey carried out by the Association of Foreign Investors in Real Estate that asked expert global investors from 21 countries to rank cities based on variables such as investment stability and their level of returns.

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Tips For Selling Your Home In Winter

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With Christmas only just around the corner (how fast has it come this year?!) and the longest day not too far off either we really are falling into winters cold grasp. It’s during these dreary days that your house may sometimes not look at its best, which can be frustrating and even financially damaging when you are trying to sell it. But how can you turn the characteristically dark and slightly depressing days to your advantage when it comes to selling your home? Here are our top tips for selling your house in winter.

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What makes a good estate agency excellent?

trustworthy estate agent
  • Uniquely, we do not regionalise offices. Crucially, a mews buyer is not always a local buyer. Our negotiators have the freedom to show properties all over London and often a mews buyer’s main search criteria is the style of the property/or the mews itself as opposed to its postcode!
  • We pride ourselves on our excellent communication skills
  • We pride ourselves on managing expectations fairly
  • We pride ourselves on qualifying our buyers (and tenants!) comprehensively
  • We pride ourselves on having buyers as passionate about mews as we are!

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K.I.S.S. – Keep It Simple Sweetheart

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K.I.S.S. – Keep It Simple Sweetheart

Sales and Lettings are often considered to be very different but the key similarity is how do we help our Clients to maximise the returns on their properties. The key is to consider the market you are aiming to attract, our advice is easy to remember: KISS – Keep It Simple Sweetheart. Fashions may come and go but when it comes to investing your money wisely you must remember that Location, Price and Potential are timeless.

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Too much of a good thing is bad for you. – have up to 3 agents but never more

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The single most important thing you need to decide when selling or letting your property is which estate agent to instruct? The choice is wide and varied and despite popular pre-conceptions, fuelled mostly by the wider media, not all agents are the same. Unfortunately estate agents regularly feature in polls of the ‘top 10 most hated professions in the UK’ alongside bankers, politicians and bailiffs to name a few.

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Welcome to the new Lurot Brand Blog!

Lurot Brand Welcome To Blog Header Image

As recently appointed Public Relations Manager for Lurot Brand, I will be bringing you a regular insight into our business – some of it will be anecdotal and some of it will be updates on the Residential Sales and Lettings market in central London. Estate agency is exciting and with over 40 years of experience we are best placed to give you updates on what is hot and what is not in the property world.

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