Property Focus - Issue 3 (Nottingham)

ISSUE 3

The magazine for property professionals

Jan - Mar 2016

Nottingham - see inside ‘the Queen of the Midlands’ Hot Topic

What does 2016 have in store for property investors?

Plus!

All the latest news, stats and gossip from the property market.

H

appy new year to you all and welcome to issue 3 of Property Focus – our quarterly magazine for landlords, letting agents and property enthusiasts.

In this packed edition, we venture to the Midlands to cast our spotlight on the city of Nottingham, as well as rounding up all the latest industry news, stats and gossip.

Plus, for a chance to win £50 to spend at Amazon, simply answer the following question: According to Property Focus, what is the average rent for a one-bedroom property in Nottingham?

Email your answer to propertyfocusmag@gmail.com or tweet it to @rentguard for a chance to win!

One lucky winner will be chosen on 31st March – good luck!

Richard Williams – Editor propertyfocusmag@gmail.com

antiquemapdrawer.co.uk

OUR SURVEY SAYS...

UK landlords own an average of six buy-to-let properties, survey reveals

The landlord insurance specialists asked customers the question, ‘How many Buy-to-let properties do you own?’

30% of landlords revealed that they owned 5-7 buy to let properties, while 23% said they owned more than seven properties.

A further 23% of respondents revealed that they owned between 2-4 buy to let properties.

A final 23% said that they owned only one buy to let property.

A new survey by the RGA Insurance group has revealed that landlords own an average of six buy to let properties.

“The results show that landlords own a mixed number of properties. There is likely to be a surge in the amount of buy-to-lets bought by landlords in the months coming up to April 2016 as landlords try to avoid the tax changes that will come in to effect,” says James Castell, director of RGA.

NOSY NEIGHBOUR

In each issue we take a sneaky look at what’s been going on in rental properties across the UK Brighton landlords fined a total of £34,000 for unregistered HMOs

Landlord ordered to pay £3,000 after illegal eviction

Two landlords from Brighton & Hove have been prosecuted for failing to license their properties as Houses in Multiple Occupation (HMOs).

A Cornish landlord has been fined £1,000 and ordered to pay £2,000 in costs after illegally evicting a tenant.

One landlord was fined £20,000 plus £750 costs, while the other was fined £14,000 and £750 in costs, meaning total fines of £34,000. Neither defendant was present for the hearing and neither were represented in court.

The tenant and her son had been illegally evicted from a self-contained flat in Truro, Cornwall, revealed an investigation undertaken by Cornwall Council’s private sector housing team. The former tenant was deprived of her accommodation and her belongings had been removed and left in the garden outside the address.

One of the landlords had made multiple attempts to avoid licensing and once fined, submitted a plea of guilty by post, although no mitigation was submitted.

Both landlords were ordered to pay a criminal court charge of £150 and £120 victim surcharge after being prosecuted under the Housing Act 2004 at Eastbourne Magistrates Court.

The locks to the accommodation had also been changed with the tenant having to gain access to the property with the assistance of a locksmith.

The investigation also led to the discovery that the self-contained flat was formerly a garage which had been recently converted into a separate dwelling without planning permission or building control consent being sought.

January 2016

brought to you by

RENTING Cleaning is the biggest cause of disputes between

BUYING

landlord and tenants at

58% House prices in London are predicted to (Imfuna Let)

increase by

34%

by 2025, to reach an

average price of £931,000

Half

of tenants are unable to save a penny towards a deposit, while a quarter can only put by £100 a month or less

(Rentify)

Tax changes mean that a stamp duty bill (Shelter)

for a £270,000 buy to let will rise to

£12,000 from the current £3,750 (Rentify)

Renting is expected to rise with the proportion of private renters in the UK to increase from 20% to nearly

29% by 2025

62% of the working population currently own their own home but this figure is expected to decrease to

(Housing 2025 Repot - ARLA)

55%

in the next 10 years

(Housing 2025 Repot - ARLA)

HOT TOPIC In each issue we look at both sides of the industry’s hottest topic.

Will 2016 be a good year for landlords and property investors?

Yes

Much has been made of recent tax and stamp duty changes which are likely to eat into landlords’ profits, but there is still reason enough for landlords to remain optimistic about 2016.

No let-up in demand Demand from tenants remains strong across the UK, and market rate rents and property prices continue to rise.

A recent study by flatsharing website SpareRoom. co.uk found that 45% of landlords were in the position to raise rents in 2016 as demand continues to outstrip supply.

Capital gains Average house price growth increased more than expected in December 2015 to experience the largest monthly rise in eight months, a trend which looks set to continue in 2016. Overall house prices also increased 4.5% year-on-year, all of which happened against a supposed backdrop of uncertainty.

Rents and asking prices have flourished in the South East in particular and a chronic shortage of homes being put up for sale has meant that property prices in the UK’s key cities have increased by 10.1% year on year, according to recent figures from Hometrack.

Healthy yields In terms of return on investment, Manchester is currently showing yields of around 6%, with Liverpool and Cardiff showing around 5%, all of which look set for a strong 2016, as does the micro-climate of the London market, where higher property values mean yields of around 4%.

Good position Concerns about how potential interest rate rises could affect buy-to-let landlords may also have been over-played, with new research published

by YouGov finding that the majority of landlords are financially secure and in a good position to cope with unexpected borrowing costs.

Indeed, three quarters of landlords said that they would have no problem paying their mortgage if the Bank rate rose by 1.5%.

“2015 has undoubtedly been a good year for landlords, with tenant demand seemingly unrelenting. We expect more of the same in the new year, with rents likely to be pushed upwards in all parts of the country” Emma Wells, Leaders estate agents

No

Property investors were hit with a ‘double blow’ by the Chancellor George Osborne in his recent Autumn Statement, as he announced changes to stamp duty and taxation which are likely to affect end of year margins.

So much so that the Council of Mortgage Lenders forecasts that the number of new buy-to-let loans will dip substantially, from 116,000 in 2015 to 90,000 in 2017.

From April 2016 anyone buying a second home or buy-to-let property will pay a 3% surcharge on their stamp duty bill as the Government aims to stop investors ‘squeezing out’ first time buyers.

As a result, the tax bill on a buy-to-let property costing £250,000, for example, will jump from £2,500 to £8,800.

The Chancellor plans to slash the tax relief that private landlords receive on their mortgage interest payments, cutting it from 40% or 45% to 20% by April 2020. There have also been a tightening of ‘wear and tear’ allowances.

Rent arrears on the rise The number of tenants seriously behind on their rent has risen by 13.8% on a quarterly basis to 84,200 and is now approaching 2013 highs, according to new figures from estate agency chain Your Move.

“In the current climate, optimism feels increasingly reasonable. Most households are beginning to earn more, the cost of living is stable and the chance of falling into unemployment is diminishing. For the majority of tenants, paying the rent is becoming easier rather than harder.

“But beneath this rising tide there are inevitably some households and individuals who are not yet feeling any new economic buoyancy. As others bid rents higher there will be a minority who are still struggling to keep up. Landlords and tenants have a mutual responsibility to be aware of this small but significant risk,” says Adam Gill of Your Move.

Right to Rent As of 1st February, the controversial Right to Rent scheme is to be rolled out in full across the country.

As such, landlords will be responsible for checking the immigration status of potential tenants and could be fined up to £3,000 for failing to comply.

Many landlords are agitated by what they perceive as increased ‘red tape’ and only time will tell if the scheme proves successful or whether it puts some would-be landlords off the buy-to-let trail.

Time to sell up?

Perhaps tellingly, Britain’s most controversial landlord Fergus Wilson sold his property empire of around 900 homes in Kent last year, saying that the “boom days are over,” although he does think that new investors can still make money from buy to let.

The halcyon days of buy-to-let may be beginning to wane, but property still seems a safer bet than many for where to put your money.

“Many landlords are finding this (Right to Rent) a rather frightening prospect and are talking of giving up as result” Henry Pryor – property commentator

CITY SPOTLIGHT

CITY SPOTLIGHT

(Nottingham) – 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.

Nottingham

he midlands city of Nottingham is located around 30 miles south of Sheffield and 30 miles north of Leicester. With a population of approximately 310,000, it is a popular tourist destination, and has an annual tourist spend of around £1.5 billion.

T

than two hours.

Nottingham was named the UK’s City of Sport in October 2015, playing host to two football clubs, Nottingham Forrest and Notts County, Trent Bridge International cricket ground, as well as the National Waterports Centre.

Education

You can get around the city using Nottingham Express Transit Tram System, as well as an award-winning bus service.

Connections

Nottingham Trent University and the University of Nottingham have campuses all over the city and attract over 61,000 students combined. This figure is increasing rapidly, making it a firm favourite for landlords in the private rented sector.

Nottingham is well connected by road and rail, with the M1 motorway passing to the west, and trains from London taking less

The city’s oldest educational establishment is Nottingham High School, which was founded in 1513.

Nottingham

Employment Nottingham is home to the headquarters of several large companies, including Boots Chemists, Pedigree pet food, GM (cricket bats), and the credit agent Experian. The bicycle manufacturers Raleigh were also founded in the city.

The metropolitan area’s economy is the seventh largest in the United Kingdom with £50.9bn GDP in 2014.

Architecture In the centre of Nottingham is the Old Market Square, the largest city square in the UK. To the south lies Broadmarsh Shopping Centre and further south adjacent to Nottingham railway station are many 19th century industrial buildings, reused as bars and restaurants.

To the east of the city centre is the Victoria Shopping Centre, built in the 1970s on the site of the demolished Victoria Railway Station.

Nearby is Hockley Village, home to Nottingham’s unique, independent shops, as well as two alternative cinemas.

DID YOU KNOW? Nottingham’s name comes from a man called Snot – seriously. Snot, an Anglo-Saxon chief, gave his name to a group of settlements built around 600AD – ‘Snotingham’ is literally ‘the town of Snot’s people’ and later evolved to the name Nottingham.

CITY SPOTLIGHT

DID YOU KNOW? Nottingham is home to the world’s oldest professional football club, Notts County, which was formed in 1862.

Where to Invest Property in the city is moderately priced, with the average home costing just over £200,000.

Combined with average rents of over £1,000 per month, this gives landlords the opportunity to gain good yields.

The meandering River Trent is flanked by plenty of green space, making the area a popular choice for families and young professionals.

Savills recent 5 year forecast predicts Nottingham house prices to experience 13.9% in growth, making it the fourth best performing district in the UK.

Developments Plans are afoot to improve the Broadmarsh area.

At the centre of the council’s new proposals are plans to redevelop the current car park and bus station into a 21st century facility.

Opportunities will be created for cafes and commercial units on the ground floor, as well as providing 1,150 improved parking spaces on the upper floors, and other improvements to better serve thousands of bus passengers who use the station each day.

It is estimated that the plans will boost the local economy by £1.1 billion per annum, creating 2,900 more jobs.

Nottingham

Nottingham – the facts and figures Get the lowdown on the city with our handy infographics

PROPERTY RENTS BY BEDROOMS (source: home.co.uk) 1 BEDROOM

£498 pcm

2 BEDROOM

£675 pcm

3 BEDROOM

£834 pcm

AVERAGE RENTS BY PROPERTY TYPE (source: home.co.uk) ROOM

FLAT

£425 pcm

£1,256 pcm

HOUSE

£1,914 pcm

AVERAGE YIELD (movingquotecompare.com January 2016) 7.7%

AVERAGE ASKING PRICE (Source: home.co.uk) £207,254

CITY SPOTLIGHT

Twinned with Nottingham is twinned with the below cities:

Karlsruhe

Minsk

Ghent

Ningbo

Germany

Belarus

Belgium

China

Business Nottingham is home to a number of big companies, including Boots Chemists, Pedigree pet food, Experian, E.ON and Gala Group.

Population = 310,837 (Office of National Statistics)

Nottingham’s population has grown steadily upwards from approximately 275,000 in 2001.

Did Yo u Know?

N otting ham is also hos t to the UK’s fir s t and only local authority-o w ne d and not-fo r -profit en ergy co mpany Robin Ho o d Energy.

Nottingham

PLACES TO VISIT

Nottingham is a vibrant, friendly city - where the past and present harmonise perfectly to create a unique destination, offering something for everyone.

Wollaton Hall and Park Nottingham, NG8 2AE

Wollaton Hall was designed by Robert Smythson and built

by Sir Francis Willoughby between 1580 and 1588 for his family. Now a prominent Grade One listed building, the stunning Hall houses the city’s Natural History Museum along with reconstructed room settings. www.experiencenottinghamshire.com/discover/wollaton-hall-and-park-p354961

Nottingham Castle Lenton Road, NG1 6EL

The city’s most popular attraction offers great panoramic views of the city, with plenty of history and the famous Robin Hood statue. http://www.experiencenottinghamshire.com/discover/nottingham-castle-p357581

CITY SPOTLIGHT

Getting Around Nottingham has an award-winning public transport system, including the largest publicly owned bus network in England and the Nottingham Express Transit tram system. Visit: http://www. experiencenottinghamshire.com/plan-a-visit/travel/getting-around to plan your journey around the city.

Clumber Park Nottingham, S80 3PA

If you’re looking for a gentle stroll along the longest avenue of Lime Trees in Europe, then Clumber Park is the place to be. A National Trust property, Clumber Park is open daily all year. The park covers over 3800-acres (1500 hectares) and was once the seat of the Dukes of Newcastle. www.experiencenottinghamshire.com/discover/clumberpark-p353541

City of Caves Broadmarsh Shopping Centre, NG1 7LS

Many people are unaware that Nottingham is built upon numerous man-made sandstone caves, and the City of Caves attraction enables you to explore and learn about them. www.cityofcaves.com/

Galleries of Justice The Lace Market, NG1 1HN

If you’re interested in England’s history of crime and punishment, then Galleries of Justice is a great place to visit. The museum uses actors, audio guides, guide sheets & boards, lighting, sounds, set dressing and exhibitions. It’s the only museum of its kind in Europe, entrance costs £9.95 for Adults and £7.95 for children. www.experiencenottinghamshire.com/discover/galleries-of-justice-museum-p356131

Nottingham

Famous Residents Nottingham has a rich heritage of television, film and fashion personalities, as well as historical figures. Here are a few of the city’s famous residents over the years.

dailymail.co.uk

Torvill & Dean

fashion.telegraph.co.uk

Paul Smith

dailymail.co.uk

Robert Lindsay

CITY SPOTLIGHT

Olympic, European and World Ice Dancing champions Jayne Torvill and Christopher Dean were both born and raised in Nottingham.

At the 1984 Winter Olympics the pair became the highest scoring figure skaters of all time - receiving twelve perfect 6.0s and six 5.9s (including artistic impression scores of 6.0 from every judge).

Men’s fashion designer Smith was born in Breeston, Nottinghamshire in 1948. He is known for his modern take on British stylings, coining the phrase ‘classics with a twist’. Smith was knighted in 2000 for his services to British fashion.

Lindsay studied theatre in Nottingham in the 60s before going on to become one of British television’s most recognisable faces.

As well as starring as Ben Harper in the BBC sitcom My Family, he also appeared as delusional revolutionary Wolfie Smith in the 70s show Citizen Smith.

19th Century poet Lord Byron is buried at the Church of St. Mary Magdalene in Nottinghamshire.

A leading figure in the Romantic Movement, he was born in London and studied at Aberdeen Grammar School.

Lord Byron

The comedy actress and singer is best known for her role in the sitcom Hi-de-Hi!. As a singer, she scored a UK No.2 hit in 1986 with the song Starting Together. She is famous for her broad accent and flamboyant dress sense. Pollard is a staunch supporter of Nottingham Forest Football Club.

BAFTA award-winning film director and screenwriter Shane Meadows, moved to Nottingham from Manchester when he was 20 years old. The majority of Meadows’ films are set in the Midlands area, most notably 2007’s This is England which won best independent British film and spawned a spin off Channel 4 television series.

sofeminine.co.uk

Su Pollard

theguardian.com

Shane Meadows

Robin Hood One of the many historic figures to be associated with Nottingham is Robin Hood. The county’s most famous son and the world’s favourite folk hero has had his adventures retold down the generations, from medieval ballads to Hollywood blockbusters.

The legend of Robin Hood

Forever associated with Nottingham and Sherwood Forest, Robin Hood (spelt Robyn Hode in older manuscripts) is a heroic outlaw in English folklore.

He became famous for supposedly robbing from the rich and giving to the poor and was assisted by a group of outlaws known as his “Merry Men”. People have long argued the origin of the legend with some saying that it stemmed from actual outlaws, while others say it is only from ballad and story.

A highly skilled archer and swordsman, Robin Hood is typically seen as a supporter of the late 12th century King Richard the Lionheart. While King Richard is away on a Crusade, Robin is driven to becoming an outlaw under the misrule of Richard’s brother, John.

Sherwood Forest

The people of Nottingham have a special affinity with Robin Hood and he is often claimed as the symbol of the county.

There are many specific sites linked to Robin Hood such as the Major Oak tree located in Sherwood Forest Country Park which is said to have been used as a hideout by the outlaw.

The Church of St. Mary in the village of Edwinstowe is where Robin and Maid Marian are historically thought to have been married!

Real or not real?

Early ballads of Robin Hood link him to real places and many people in Medieval England had the name Robin Hood or something similar, some of whom were known to have been outlaws.

However, as a result of not many documents surviving from those periods of time, it is very difficult to know for sure if Robin Hood was a real person.

Modern Day

The legend of Robin Hood lives on in Nottingham to this day!

An annual festival called the Robin Hood Pageant is held at Nottingham Castle in October. ‘The Robin Hood Way’ runs through Nottinghamshire and the county is home to literally thousands of places, roads, inns and objects which are named Robin.

In addition to the regular tours, storytelling sessions and events throughout the year, BBC Radio Nottingham also uses the phrase “Robin Hood County” regularly on its programmes!

Nottingham

SALES & RENTAL INDEX Average Rent per Region Overall UK average (excluding London) = £739 (+4.9%) North East = £531 (+1.9%) North West = £622 (-5.1%) Yorkshire and Humber = £623 (+3.1%) East Midlands = £638 (+6.4%) West Midlands = £666 (+1.7%) East Anglia = £799 (+5.7%) Wales = £599 (+2.3%) London = £1523 (+8%) South East = £936 (+7%) South West = £840 (+5.5%) Homelet Rental Index: December 2015 (Year on year change)

Average House Price per Region Overall UK average = £186,325 (+5.6%) North East = £100,046 (+1.3%) North West = £115,491 (+3.1%) Yorkshire and Humber = £122,183 (+1.3%)

East Midlands = £136,893 (+4.1%) West Midlands = £140,772 (+2.9%) East Anglia = £214,491 (+9.8%) Wales = £122,433 (+3.7%) London = £506,724 (+11.2%) South East = £258,137 (+8%) South West = £194,809 (+5.6%) UK Land Registry: November 2015 (Year on year change)

“Rome wasn’t built in a day. But I wasn’t on that particular job” Brian Clough (former Nottingham Forest football coach)

Words

Richard Williams

Design

David Puddicombe

Priya Gill

Miao Yu

We hope you’ve enjoyed the third 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.