ISSUE 1
The magazine for property professionals
JUN / JUL 2015
Sheffield - ‘The largest village in England’ It’s a steel! Get yields of up to 10%!
Hot Topic
What does a Conservative victory mean for the property market?
Market Watch
Plus, get all the latest stats from the property market!
If only my referencing provider gave me an advantage over the rest… A giraffe’s neck is up to 6-foot long and weighs around 600 pounds allowing it to feed on vegetation up to 15 ft high roughly 9ft higher than its tallest competitor. It is also used as a weapon in ‘necking contests’ to establish male dominance.
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Tenant Contents
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RENTGUARD REFERENCING
W
elcome to the inaugural issue of Property Focus – our quarterly magazine for property professionals and enthusiasts.
In each issue we put a different UK city under the spotlight, looking at its property market, investment opportunities, as well as places to visit and history. In this packed edition, we venture to South Yorkshire to look at Sheffield. Also inside is our roundup of the hottest industry news, gossip and statistics. Also, for a chance to win £50 to spend at Amazon, simply answer the following question: Sheffield is twinned with which German city? Email your answer to propfocusmag@gmail.com with your contact details to be in with a chance of winning! The winner will be chosen on 31st July – good luck!
Richard Williams – Editor propfocusmag@gmail.com
Workers inside one of Sheffield’s old steel mills
OUR SURVEY SAYS...
Those in their 40s most likely to become first-time landlords, survey reveals 50+ age bracket (24%) and those aged between 30 -39 (19%). The landlord insurance specialists asked customers the question ‘How old were you when you first became a landlord?’ on the Property Eye section of their website. Perhaps surprisingly, 17% of those surveyed were aged just 20-29 when they became a landlord for the first time. “The results show that those in their 40s are thinking ahead and looking towards property as an investment for their money.” said James Castell, director of RGA.
Between 40 and 49 years old is the most common age for those becoming a landlord for the first time, according to a new survey by RGA Insurance Group. Some 40% of those purchasing a buy-to-let investment for the first time were in this age bracket. They were followed in second place by those in the
“With the recent relaxing of pension rules we expect the fifty plus bracket, and even those in their 60s, to be the biggest growing group over the next year or two.” added Castell. According to a report earlier this year by the Halifax, the average age of a first buyer of an owner occupied property was 30 years old, up from 29 in 2011. The region with the oldest average age of this type of buyer was London at 32.
NOSY NEIGHBOUR
In each issue we take a sneaky look at what’s been going on in rental properties across the UK Woking Landlord fined £7,000 for providing false documents A Woking landlord was fined £7,000, then ordered to work 200 hours of unpaid community service after he was prosecuted for providing false documents and endangering tenants. The property was not in the required condition and his tenants were put at risk due to a faulty alarm system and lack of fire safety precautions. He avoided being caught by providing the council with fraudulent tenancy agreements after being told he had to possess a House(s) of Multiple Occupation (HMO) license. “Woking Borough Council will not tolerate the actions of private landlords who put their tenants at risk or think they can provide us with false documentation.” said Housing Standards Manager Neil Coles.
Unlicensed Landlord fined £15,000 Magistrates have ordered a Manchester Landlord to pay more than £15,000 in fines for failing to license his properties. The property owner, 62, was also ordered to pay £1,823.75, along with a £120 victim of crime surcharge. He pleaded not guilty but did not attend the hearing, which continued in his absence. The landlord initially did have an HMO license but it expired in 2012, he then claimed the property was no longer licensable under HMO regulations, because the property had less than five occupants. After an investigative visit to the property, it was found that eight people were living at the property and the landlord agreed to submit an application. This never materialised and the paperwork was declared incomplete and an offence committed.
June 2015
BUYING
71,000
RENTING UK average rent has risen
FIRST BUYERS
10%
12 months from £819 to £902 in
in the first quarter of 2015 (HomeLet Rental Index) An estimated
10%
71,000 first time
buyers have been assisted so far by the ‘Help to Buy’ scheme (NAEA)
Most Expensive
House prices have increased by
1.6%
to reach an all-time high average of
than £286,000 (Right Move)
more
1.6% Rents have increased in Esher, Surrey, the most expensive area to rent in the UK, by
£286,000
4.1% this past year (RightMove)
Leicester Southall
38%
45%
Cambridge
24%
Average rental prices have climbed during the
45% in Leicester, 38% in Southall and 24% in Cambridge
past year by
(HomeLet Rental Index)
23 YEARS
23 years
It takes for the average UK home to change hands,
3 times longer than in the 1980’s (IMLA)
HOT TOPIC In each issue we look at both sides of the industry’s hottest topics.
Will the Conservative party’s election win be good for the UK property market?
Yes
a number of transactions that have stalled to come back on line,” says Michelle van Vuuren, managing director of residential development at Sotheby’s International Realty.
For many, the Conservatives’ win at last month’s election was seen as bringing certainty back to the property market. Within hours estate agents were reporting calls from buyers at the top end of the property market as the Blue victory lifted fears of a ‘mansion tax’ on £2m-plus homes.
Whilst much of the post-election movement came from foreign investors at the top-end of the market, first time buyers were also encouraged by the Conservatives decision to extend both its Right to Buy and Help to Buy schemes.
“At the top end – for the next five years at least – a cessation of the clamour for a mansion tax will see
The flagship Right to Buy scheme provides tenants in housing association properties with the opportunity to buy their home at heavily discounted prices.
Right to Buy
Would-be first time buyers will also have access to a Help to Buy Isa, which tops up £50 for every £200 saved towards a deposit (up to maximum top up of £3,000).
Help to Buy
The Help to Buy scheme itself, which aims to help many of the so-called ‘generation rent’ get a foot on the property ladder has been extended to 2020, and allows those able to scrape together a 5% deposit access to a 20% interest-free government loan. Property website Zoopla also believes that the election victory for the Conservatives should help the housing market to grow. “The Conservative victory over other potential outcomes is positive for the property market in the sense that it allows the recovery to continue ... without any significant market surprises,” says chief executive Alex Chesterman.
“Euphoria returns to the City! Lobster Thermidor is back on the menu! Buy shares in lap dancing bars! The City is safe for five years.” Nick Batsford, former city trader
No
Whilst many have heralded the anticipated ‘housing boom’ as a good thing, there are concerns that rising prices will push homes further out of reach of wouldbe first time buyers. If the Conservative Government fails to come good on its promise to build 275,000 new homes by 2020 then many areas of the UK, especially London, could reach crisis point.
Housing Shortage
Groups such as housing charity Shelter believe it will be difficult for the party to reach the levels stated: “The sad truth is that house building has been so low for so long that we still have a long way to go: at 125,110 new homes built in England in the last year we’re building less than half the homes needed each year.” Some experts are also concerned that the Conservative Party has shown minimal intent to further regulate the private rental sector, as opposed to Labour who proposed many changes, including rent controls and a national landlord register. Whilst relaxed regulations and the reduction of ‘red tape’ may be good for honest landlords, there are some fears that it will also make it easier for ‘rogues’ looking to undercut other landlords by not abiding by the law.
Sub-letting
Concern is also mounting over the Conservatives plans, buried away in the Budget’s small print, which will mean that private landlords can no longer ban sub-letting. Sub-letting is typically outlawed in tenancy agreements, but such clauses would become illegal. Residential Landlords Association (RLA) chairman Alan Ward described the move as a ‘nightmare in the making’ and said it smacked of “back of the fag packet” policy making. Sub-letting also throws up problems from an insurance point of view. Pricing for landlord insurance policies is based on the tenant type, among other factors, with insurers attributing higher risk for certain types of tenant. “It will be difficult for a landlord to disclose the details of their tenants, and answer the risk question accurately if they no longer have the final say on who occupies their property” says Steve Jones from Rentguard Insurance.
“Poorly thought out regulations and policies could have a direct effect on landlords and their investments. It is vital that landlords plan ahead to protect themselves and their properties,” Jason McClean, Property 118
CITY SPOTLIGHT
(Sheffield) – In each issue we shine our spotlight on a different part of the UK, focussing on what it has to offer everyone from property investors to casual day-trippers.
Shef field
S
heffield is located in South Yorkshire and is a large and vibrant University region known as the ‘steel city’ due to its industrial roots, but one which has grown in recent years to encompass a wider economic base. It officially became a city back in 1893, but it is thought that the area has been inhabited since the late Upper Palaeolithic period - around 12,800 years ago. The city is also home to the remains of what is thought to be Britain’s first house, dating as far back as 8000BC. The majority of private stock households in the city are owner-occupied, but around 16% of the city’s 551,000 population rent from a private landlord. CITY SPOTLIGHT
There are also around 41,000 council properties in the city.
Green spaces 61% of Sheffield area is green space, with almost a third of the city lying within the Peak District national park. There are more than 250 parks, woodlands and gardens in the city, as well as a number of nature reserves, combining to give Sheffield the reputation as one of Europe’s greenest and safest cities. Sheffield has an unique District Energy Programme to incinerate waste and convert it to electricity. The resulting hot water is distributed through 40 km of pipes to shops, restaurants and hospitals.
Sheffield Botanical Gardens
Education
Employment
Sheffield’s two universities - the University of Sheffield and Sheffield Hallam University – bring around 60,000 students to the city every year.
Steel, iron and coal have historically all been major industries for Sheffield, but nowadays employment is mainly in the services sector, with the biggest employers being the two universities, NHS, and national and local government.
Sheffield Hallam University dates back to 1843 and is the third largest university in the UK. The city also has five independent private schools including Birkdale School and the Sheffield High School. The student areas provide high tenant demand, with international students often able to pay their rent up to six months in advance.
DID YOU KNOW? Sheffield F.C - Britain’s oldest football club - formed in the city in 1857 and the first ever floodlit football match took place at Bramall Lane, Sheffield in 1878.
CITY SPOTLIGHT
Sheffield is also home to many hi-tech companies, including Boeing the aircraft giant and Sky who have a large call centre there.
Connections Sheffield is linked into the national motorway network via the M1 and M18 motorways, connecting the City to London in the south and Leeds in the north respectively. Direct trains from Sheffield take just two hours to London St Pancras. Following the closure of Sheffield City Airport in 2008, the closest international airport is Robin Hood Airport in Doncaster, which is located 18 miles from the city centre.
Where to Invest
Regeneration
A little money can go a long way when it comes to finding property in Sheffield, making it an attractive proposition for landlords looking to expand their existing portfolio.
There is also plenty of regeneration taking place across Sheffield over the next few years. From the University of Sheffield’s new £43m centre of advanced manufacturing Factory 2050, to the £400m US investment in Peak Resort – a new leisure attraction near Chesterfield – the steel city is definitely worth keeping your eye on.
The Telegraph recently named Sheffield S1 as the top postcode in the UK for buy-to-let investment, with a median asking price of £69,995 and a monthly rent of £645 - that’s a potential yield of more than 10%! Tenant demand remains consistently high due to ever increasing student retention rates, making Sheffield a true buy-to-let hotspot. Areas including Hillsborough, Chapletown and Crookes, are good investmentprospects, with HMO properties in areas such as Hunters Bar, Crookes and Broomhill, also ideal to be rented out as student houses.
“Sheffield is at a massive advantage over other major northern cities, benefiting from its location, strength of the rental market and relative undersupply of city centre residential units. The strength of the rental market can also be attributed to the limited number of high quality centrally located schemes in Sheffield, especially when compared with other regional centres across the UK,” explain Estate Agents Knight Frank.
DID YOU KNOW?
Trams were first introduced to Sheffield in 1873. In 1994, ‘Supertrams’ were introduced, giving the city one of the UK’s most advanced tram networks. SHEFFIELD
SHEFFIELD - the facts and figures Get the lowdown on the city with our handy infographics
PROPERTY RENTS BY BEDROOMS (source: home.co.uk) 1 BEDROOM
£501 pcm
2 BEDROOM
£629 pcm
3 BEDROOM
£662 pcm
4 BEDROOM
£1,046 pcm
5 BEDROOM
£1,302 pcm
AVERAGE RENTS BY PROPERTY TYPE (source: home.co.uk) ROOM
£337 pcm
FLAT
£708 pcm
HOUSE
£793 pcm
AVERAGE YIELD (Chestertons Estate Agents April 2015) Average Yield
6.3%
AVERAGE ASKING PRICE £172,289
CITY SPOTLIGHT
Twinned with The Sheffield International Linking Committee promotes Sheffield overseas, especially with its four sister cities:
Bochum
Germany
Donetsk
Ukraine
Anshan
China
Estelí
Nicaragua
Business The “UK Cities Monitor” placed Sheffield among the top ten “best cities to locate a business today”.
3rd
Population = 551,800 (2011 census) Sheffield is England’s third largest metropolitan city.
in England
Geography Sheffield is informally known as “the largest village in England” due to its isolation and stability. Estimated to contain over two million trees, Sheffield has more trees per person than any other city in Europe, and is England’s greenest city, according to Sheffield City Council. There are around 1,100 listed buildings in the Sheffield postal district, however only five are Grade-1 listed.
Did Yo u Know?
Sheffield’s name derives from the River Sheaf, which runs thro ug h the city.
SHEFFIELD
PLACES TO VISIT Sheffield is well known for its steel and sport, but also offers a range of cultural attractions, quality entertainment and shopping options. Sheffield Botanical Gardens
1
Clarkehouse Road, Sheffield
Opened in 1836 and originally designed by Robert Marnock, the gardens cover 19 acres which are home to 15 different gardens. With collections of plants from around the world showcased in restored Grade II* listed curvilinear Glass Pavilions. www.sbg.org.uk/index.asp
1
Peak District National Park
2
Peak District
One third of Sheffield lies in the Peak District and it offers lots of fun activities. It boasts stunning scenery, along with activities such as horse-riding, cycling, walking and water sports. www.visitpeakdistrict.com
CITY SPOTLIGHT
2
GO OUTDOORS
Sheffield is famous for its greenery and over 200 different parks to explore by foot or bicycle. Visit www.welcometosheffield.co.uk/visit/attractions/outdoors for more info.
CRUCIBLE 5 3
4
6 Sheffield Winter Garden
3
Surrey Street, Sheffield
One of the largest temperate glasshouses to be built in the UK, Winter Garden has won multiple awards. It’s large enough to hold 5,000 greenhouses and it’s home to over 2,500 plants from around the world. www.welcometosheffield.co.uk
Crucible Theatre Sheffield City Centre
One of the most famous theatres in the UK and home of the World Snooker Championship, here you can watch shows such as The Full Monty and Pride and Prejudice. www.sheffieldtheatres.co.uk/whats-on
The Moor Market Millennium Gallery
4
Arundel Gate
One of the major attractions in the city, learn about the history of Sheffield along with its world famous contemporary art and design exhibitions. www.museums-sheffield.org.uk
5
6
The Moor, Sheffield
Sheffield has a rich history of indoor markets and after the popular Castle Market closed, The Moor Market was built. It has over 200 market stalls with lots to offer, including Thai Ice Cream! sheffieldmarkets.com/markets/moor-market SHEFFIELD
HISTORY
of the Sheffield Steel Industry
Sheffield was the world’s most foremost steel manufacturer by the mid-19th century. The city’s bountiful natural resources contributed to its successful history in the steel industry, with coal, iron and millstone grit easily accessible from its hills. This along with the seven rivers that run through the city provided the water power to drive grinding wheels which were used by cutlers to shape metal. Back then steel used to be an expensive product that was made in small quantities and used primarily for swords, tools and cutlery. Here are some of the main players responsible for Sheffield’s booming steel industry:
Benjamin Huntsman High quality steel was developed by Benjamin Huntsman through his process of making steel with the use of a crucible. At first his steel was rejected by Sheffield cutlers who said it was too hard to work with. However, Huntsman exported his steel to France and in turn French knives were exported back. These knives began to outsell products made by Sheffield cutlers and from here on, Huntsman’s manufacturing methods were copied throughout the town and the Sheffield steel industry boomed.
Henry Bessemer Sheffield’s establishment as a major steel manufacturing centre can be partly accredited to Henry Bessemer. He developed the ‘Bessemer Process’ which involved blowing oxygen through pig-iron to remove the impurities. This made steel easier and quicker to manufacture, thus reducing the cost of steel. At this point in time many industries relied on wrought iron and cast iron alone, the latter of which was not as strong as steel. Steel began to replace cast iron as a direct result of the Bessemer process having reduced the cost of producing steel.
Stainless Steel Stainless steel was discovered by Harry Brearley at his laboratory in Sheffield in 1912. As opposed to ordinary steel, stainless steel does not corrode, rust or stain with water as easily and therefore was adaptable to use for cutlery and saucepans. Stainless steel replaced sterling silver which was expensive and not widely available. The development of stainless steel has helped Sheffield gain worldwide recognition for the production of cutlery and utensils.
Modern Day Sometimes still referred to as the ‘Steel City’, Sheffield has been subject to strong redevelopment programmes since the 1990s. The steel industry in Sheffield today focuses on specialist steel making and is now much less noticeable as it has become highly automated and employs fewer staff as a result. Since the decline of the steel industry, emphasis has been placed on education and developing the two universities in the city. These institutions are some of the largest employers in Sheffield today along with the NHS and national and local government employees. Sheffield has aimed to rebrand itself as a modern technology city. CITY SPOTLIGHT
Famous Residents Sheffield has a healthy heritage of sporting, comedy and television personalities. Here are a few of the city’s favourite sons and daughters: bbc.co.uk
Sean Bean Nick Clegg
bbc.co.uk
Although born in Buckinghamshire, Clegg is a former Member of Parliament for Sheffield Hallam. He first became interested in politics whilst studying at Cambridge in the late 80s, and has gone on to enjoy a chequered career. He has three sons with his Spanish wife and currently resides in Putney, south west London.
Born in the Hansworth suburb of Sheffield in 1959, Bean rose to fame in the ITV series Sharpe. He’s since gone on to appear in many Hollywood films such as Patriot Games, GoldenEye, Lord of the Rings, as well as the hit series Game of Thrones.
Michael Palin
telegraph.co.uk
Popular comedian, actor, writer and television presenter Palin was born in the Broomhill suburb of the city. He is perhaps best known as part of the Monty Python comedy crew in the 1970s, but has since gone on to become an esteemed travel writer and documentary maker.
David Blunkett
bbc.co.uk
Despite coming from a poor family in one of Sheffield’s most deprived districts and being blind from birth, Blunkett rose to become Home Secretary and Work and Pensions Secretary in Tony Blair’s Cabinet following Labour’s victory in the 1997 general election.
telegraph.co.uk
Eddie Izzard One of the most successful British stand-up comedians of all time, Eddie shot to fame in the mid90s through his brand of surreal humour, as well as his tendency to appear on stage in women’s clothing. He began to toy with the idea of becoming a professional comedian whilst studying at Sheffield University in the 1980s.
Anna Walker
celebritybusinessspeakers.com
Former presenter of Tomorrow’s World and Wish You Were Here, Anna was born in Sheffield in 1962. Walker is a staunch Sheffield United football fan, and has been a devoted “Blade” since the age of 10. She was also the maid of honour at the wedding of Catherine Zeta-Jones and Michael Douglas.
bbc.co.uk
Jessica Ennis-Hill Born in the City in 1986, Ennis-Hill is a former European and World heptathlon record holder and current British champion. She also has a stand named in her honour at Brammall Lane, home of Sheffield United Football Club.
SHEFFIELD
SALES & RENTAL INDEX Average Rent per Region Overall UK Average = £757 (+7.4%) North East = £520 (+3.8%) North West = £671 (+5.6%) Yorkshire and Humber = £611 (+7%) East Midlands = £605 (+5.9%) West Midlands = £643 (+7.1%) East Anglia = £769 (+6%) Wales = £577 (-0.9%) London = £1,427 (+8.9%) South East = £893 (+5.5%) South West = £851 (+13.7%)
UK Land Registry: January to March 2015
Average House price per Region Overall UK average £178,007 (+5.3%) North East = £97,444 (-2.9%) North West = £111,149 (+2.2%) Yorkshire and Humber = £120,914 (+3.3%)
East Midlands = £133,063 (+4.2%) West Midlands = £136,761 (+2.8%) East Anglia = £199,133 (+8.4%) Wales = £117,828 (+2.7%) London = £462,799 (+11.3%) South East = £243,512 (+10.1%) South West = £185,162 (+3.8%)
“When nothing is sure, everything is possible” Margaret Drabble (Novelist born in Sheffield)
Words
Richard Williams
Design
David Puddicombe
Priya Gill
Miao Yu
We hope you’ve enjoyed the first issue of Property Focus, we welcome any feedback or suggestions, please email all correspondence to propfocusmag@gmail.com. Alternatively you can write to us at 27 Great West Road, Brentford, London, TW8 9BW.
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