ISSUE 5
The magazine for property professionals
July - Sept 2016
York - a historic city with healthy yields Hot Topic
What does Brexit mean for the property sector?
Plus!
All the latest news and views from the property market
W
elcome to the summer issue of Property Focus – our free online magazine for landlords, letting agents and property enthusiasts alike.
In this issue we shine our spotlight on the historic city of York, as well as rounding up all the latest news, stats and views from the UK property market. Plus, for a chance to win £50 to spend at Amazon, simply answer the following question: Which famous historical figure associated with the gunpowder plot was born in York? Email your answer to propfocusmag@gmail.com or tweet it to @rentguard for a chance to win! One lucky winner will be chosen on 30th September – good luck!
Richard Williams – Editor propfocusmag@gmail.com
Guy Fawkes and his fellow conspirators
THE SURVEY SAYS... Local councils are not doing enough to deter ‘rogue landlords’ 70% of landlords feel that local councils and government are not doing enough to clampdown on rogue landlords. Landlords who own houses in multiple occupation (HMOs) have revealed that they want more to be done to punish landlords who are abusing the law and giving honest landlords a bad reputation. A survey of 500 landlords revealed that 52% of investors want to see local councils make more inspection visits in order to identify HMOs that are not maintained at an acceptable and safe standard. 48% of landlords also have urged that there should
be more severe penalties for slum HMO landlords, the survey by Multi-Let UK has revealed. A further 20% of landlords want to see more power in the hands of councils to ensure landlords are compliant with all the legislation and regulations. Additional research from the Citizens Advice Bureau shows that £5.6 billion in rent is being earned by private landlords on homes that don’t meet legal standards and £1.3 billion of this comes from state housing benefits. The body believes that 740,000 families in the English private rental sector are living in homes that present a severe threat to the occupants’ health.
NOSY NEIGHBOUR
In each issue we take a sneaky look at what’s been going on in rental properties across the UK London landlord fined £25,000 for safety failings A landlord who was letting out a property in dangerous condition is the latest in a string of landlords to be taken to court by Barnet Council. The five bedroom house located in Colindale, North London, did not have smoke detectors or flame-resistant doors. The property also did not have a valid gas safety certificate or electrical test certificate. The landlord received £20,000 a year in rent from the property but has now been fined a total of £25,000 for putting the lives of tenants at risk due to a lack of safety. A council spokesman said: “The consequences of a fire could have been catastrophic. [The landlord’s] only response to the investigation was to evict two tenants so the house was no longer covered by licensing arrangements.” As part of wider efforts to clampdown on unlicensed landlords, Barnet council has brought prosecutions totalling more than £220,000 in court costs and fines this year alone.
Landlord ordered to pay more than £9,000 for multiple offences A landlord from Wolverhampton has committed various offences in relation to a six flat property that was being let out in Telford. An inspection by Telford & Wrekin Council’s building regulation team revealed a number of breaches of fire precautions at the property. The landlord also failed to disclose homeownership information as required by law despite multiple requests from the local council. Telford Magistrates Court convicted the landlord for 10 offences in total and fined him £3,000. He was ordered to also pay £6,000 in legal costs to the Council and a £200 victim surcharge, bringing the total to £9,200.
2016 JulyApr 2016
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RENTING 79% of tenants insist they are satisfied
BUYING
with their existing landlords
The top priority for parents when buying a home is living close to a good school with
72% citing this
as important
(BDRC Continental)
The number of properties registered per letting agent have fallen year-on-year by
5%
(Redrow Homes)
25% of landlords believe one bedroom
flats would bring the best returns compared to other property types (Amicus)
(ARLA)
64% of home owners in the UK rent a property before they are able to buy
43% of landlords revealed they plan to purchase between two and three new
student properties over the next 18 months
(Clydesdale and Yorkshire Banks) (The Mistoria Group)
HOT TOPIC Does Brexit spell bad news for the Property Market? At the recent referendum the British public voted in favour of leaving the EU. Experts in favour of remaining are predicting that it will have a huge impact on the economy, we look at what it might mean for the UK property market.
Yes
There are a number of early warning signs coming from inside the property market. The Financial Times reported on the Sunday after the referendum that some property buyers were already pulling out of transactions in the aftermath of Brexit. A climate of insecurity is being felt across the market, as estate agents and analysts try to predict the consequences of Brexit. The shortage in housing supply in many areas may mean that prices will rise in the medium to long term. In an indication that traders believe the UK housing market could be set for a severe slowdown, developers are crashing on the FTSE100. Persimmon, Taylor Wimpey, Berkeley Group and Barratt Developments are all tanking in excess of 20%. Rental demand is also predicted to increase as anxious buyers and sellers adopt a ‘wait and see’ policy, reflected by a significant drop in sales market activity in recent weeks. With tenant demand sure to increase and the supply of new housing stuttering, the cost of renting will rise across many parts of the UK.
Surge in demand London is predicted to be the most affected city, where rents could sky rocket due to the surge in demand. In the capital, leading house builders believe that many residential developers will be less willing to commit to new property projects due to the uncertain economic climate. This shortage is likely to place upward pressure on house prices and rental values in the longer term. Also one of the consequences from a UK exit is the devaluation of the British pound. A lower currency rate means that the property market will be extremely attractive to foreign investors,
but worrying to domestic buyers. UK nationals who already own homes may be tempted to stay put rather than enter an uncertain market. A survey from Plentific.com of more than 1,000 adults conducted after the referendum results showed that 23% of homeowners aged between 18 and 34 said they were less likely to sell their home over the next three years.
“The immediate impact is likely to be a fall in housing turnover and a rapid deceleration in house price growth as buyers adopt a wait and see approach to the short-term impact on financial markets and the economy at large” Richard Donnell, the insight director at property consultancy Hometrack.
No
Leave campaigners asserted shortly after the results, that leaving Europe would be beneficial to the UK and promised to stabilise the stock markets.
Eurozone countries had reached eight per cent.
However, the UK property market has seen some upset in its property prices and trade sectors over the medium term due to Brexit.
London Estate Agency also said that a slump in the pound, caused by Brexit jitters, meant buyers from Eurozone countries were saving an average of £26,000 on property in the capital. “European buyers are snapping up bargains across London,” the company’s Andrew Bridges told City AM recently.
Michael Spencer, chief economist and head of research at Deutsche Bank, said that Brexit may have a negative impact on Britain’s economy over the next three to six months as its exports will suffer from rising uncertainties but that this might not be necessarily a bad thing for the property sector. The idea that a weaker pound will help the property market is also backed by Keith Pogson senior partner of Ernst & Young Asia-Pacific, “The weaker British pound may help attract hot money to enter the UK as the real estate market may become more attractive.” Politicians from the Leave camp also pointed out that even though house prices could be hit between 10% and 18% over the next two years, compared to where they otherwise would have been, this could be good news for first-time buyers.
Foreign investment Overseas buyers are saving more than £40,000 on London property prices thanks to Brexit, according to estate agency Stirling Ackroyd. The firm reported that the effective price cut for buyers from
Property prices dropping will also benefit buyers from Europe, Middle East and elsewhere looking for a bargain.
Foreign buyers of London real estate will get increased value in purchasing properties as a result of a depreciating sterling. First time buyers are also in the lucky group, the forecast of a “sharp drop” in house prices is something that will help those saving for a mortgage deposit. Economists are also suggesting that the Bank of England may cut interest rates, which would reduce the cost of lending, making mortgages cheaper.
“For overseas buyers, this big and dramatic drop in the value of sterling will effectively offset the Stamp Duty and tax adjustments and it will make prime London property a lucrative investment for overseas investors bold enough to take a punt despite the market uncertainty.” Peter Wetherell, Mayfair estate agency.
CITY SPOTLIGHT 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.
York
Introduction York is a beautiful, historic city located in the north of England. It was built by the Romans and originally named Jorvik. With a population of around 200,000, York has an almost traffic-free city centre, as well as plenty of green spaces, boutiques and quaint tearooms dotted across the city.
Connections Since the first railway line opened in 1839, York has been a major railway centre. It takes less than two hours to get to York from London by rail, with regular trains each weekday. The city was formerly the home of the headquarters of the North Eastern Railway and is a principal stop on the East Coast Main Line from London to Newcastle and Edinburgh. CITY SPOTLIGHT
“With the upper price range in York the conversation is focused firmly on London buyers and 2016 will see this focus intensifying as York continues its ascendancy and appeal to a market that extends far and wide beyond its boundaries,� says Edward Hartshorne of Blenkin and Co estate agents.
Economy In the 19th century York was known as the hub of the railway network and a confectionary manufacturing centre (see page 17 for more). In recent times the economy of York has become more service based, with the University of York and health services becoming major employers and tourism also bringing in vital money. York has a relatively low unemployment rate of around 1.9% - compared to the national average of around 5%.
DID YOU KNOW? The Shambles is believed to be the oldest shopping street in Europe, even getting a mention in the Domesday Book of 1086!
YORK
Education The city is home to three universities - University of York, Askham Bryan College and York St John University. It also offers many excellent colleges, primary schools and several private schools. The University of York was established in 1963 with just 230 students, today more than 16,000 students attend every year and it specialises in Arts/Humanities, Sciences and Social Sciences. It was named UK University of the year in 2010. The oldest higher education institution in the city is York St John University which was originally established as York Diocesan College in 1841 and provides education to 6,400 undergraduate and postgraduate students. Askham Bryan College is a specialist land-based college. Built in 1936, on a farm, it opened its doors shortly after War World II. The College specialises in Agro-engineering courses.
CITY SPOTLIGHT
Its abundance of students make York a popular location for property investors.
Green spaces Running along the city walls there are parks such as Foss Islands Road, West Bank Park, Glen Gardens in Heworth and Rawcliffe Country Park. There are campaigns from various different organisations calling for the protection and preservation of the parks in York as the city expands and new housing is created.
Where to invest? Due to its excellent infrastructure, well educated workforce and quality of life, York is one of the UK’s fastest growing economies and the city centre is fast becoming an investment location of choice
for entrepreneurs and start-up businesses. Those looking to invest in residential property should also stick close to the centre. Top addresses include Bootham, South Bank beside the racecourse, Scarcroft Road and Holgate. Other sought after suburbs include the proto garden suburb built by philanthropist Joseph Rowntree - New Earswick and Heslington near the university.
South Bank The South Bank is well located, with downtown York and the station within a 10-min walk. Local primaries Scarcroft and Knavesmire are rated by Ofsted as “outstanding” and secondaries All Saints RC and Millthorpe are both rated as “good”.
With smaller semis in the £200,000-£500,000 range and terraced three-four beds between £350,000-£600,000. You can pick up a two to three bed for £160,000£350,000, with rentals for a three-bed home fetching between £300-£1,000 pcm.
The Chocolate Works The Chocolate Works is a new development of modern homes and apartments next to York Racecourse. Built by David Wilson Homes it has plenty of nearby leisure facilities, cafés and the High Street on Bishopthorpe Road. Prices range from £334,995 to £759,995.
There are grander and older town houses and semis on and off Tadcaster Road. Large semis, detacheds or town houses will set you back £600,000-£850,000.
DID YOU KNOW? York officially has the longest and best preserved town walls in England. Around 2.5 million people walk along all or part of the city walls each year, enjoying the amazing views.
YORK
York – the facts and figures Get the lowdown on the city with our handy infographics
PROPERTY RENTS BY BEDROOMS (source: home.co.uk) 1 BEDROOM
£745 pcm
2 BEDROOM
£1,006 pcm
3 BEDROOM
£1,179 pcm
AVERAGE RENTS BY PROPERTY TYPE (source: home.co.uk) ROOM
£461 pcm
FLAT
£1,063 pcm
HOUSE
£1,059 pcm
AVERAGE CAPITAL GAINS 1.2%
(source: Lendinvest.com)
AVERAGE YIELD 5.63%
(source: Lendinvest.com)
AVERAGE ASKING PRICE (source: home.co.uk) £314,696
CITY SPOTLIGHT
Twinned with York is twinned with the below cities: Dijon
Munster
France
Germany
Tourism • In 2015 visitors spent a record breaking £608m in the city. • York Minster alone attracts around 2.8m tourists every year. • The tourism industry in York supports an estimated 20,300 jobs, which accounts for around one in five in the city.
Population = 204,439 (mid 2014 est.)
Did Yo u Know?
The Intern ational Gh os t Researc Fo undation h anno unce d in 2002 that York is officially th e ‘Mos t Haunte d Cit y in Europ e ’. There are an es ti mate d 500 g hos ts in the city, inclu d ing those of Ro man so ld iers.
YORK
PLACES TO VISIT
York is full of rich history, romantic ambience and fun activities. It is the perfect holiday destination for couples, families and groups. Renowned for its exquisite architecture, tangle of quaint cobbled streets, iconic York Minster and wealth of visitor attractions, York is a flourishing city, just two hours by train from London. Grand Opera House York Cumberland Street, York
The Grand Opera House York is the home of live entertainment in the region. The venue hosts an irresistible mix of shows for all tastes, from west end musicals to stand-up comedians. http://www.visityork.org/seeanddo/York-Grand-Opera-House-York/
RIVER
OUSE
The Original Ghost Walk of York Kings Street, York
The walk promises a unique opportunity to discover the hidden magic of the Ancient city through the real art of storytelling. Tales are drawn from the immense history of York and are told against a backdrop of haunting beauty, the group walks in the very footsteps of those who have passed before. http://www.theoriginalghostwalkofyork.co.uk/
National Railway Museum Leeman Road, York
The museum is home to over 300 years of history and over a million
of the National Railway in the UK and the world. http://www.nrm.org.uk/
The York Dungeon 12 Clifford St, York
The York Dungeon is a unique attraction designed to transport visitors back to the city’s darkest history. Tourists experience different smells, sounds and visuals that come together for their entertainment. It’s a 75 min show that tells the tale of York’s most iconic figures from Guy Fawkes to Dick Turpin. http://www.yorkshire.com/view/culture/york/the-york-dungeon-126417 CITY SPOTLIGHT
SE
photographs and other memorabilia. The collection tells the history
OU
and costume, documents, records, artwork and railway related
ER
rolling stock, 628 coins and medals, 4899 pieces of railway uniform
RIV
wonderful objects. The museum includes over 300 locomotives and
York Minster York Minster, Deangate
The Cathedral is one of the largest of its kind in Northern Europe. The minster has a very wide decorated Gothic nave and chapter house, a perpendicular Gothic quire and east end and early English north and south transepts. The nave contains the West Window, constructed in 1338, and over the Lady Chapel in the east end is the Great East Window (finished in 1408) the largest expanse of medieval stained glass in the world. In 2013 the York Minister attracted a total of 2.8 million tourists. www.yorkminster.org
JORVIK Group Attractions JORVIK Viking Centre, Coppergate
The JORVIK group attractions explores York’s extraordinary heritage, from Roman roads to the birth of the railways, the dynastic feuds of the Middle Ages and the impact of the Vikings. This impressive collection of world class attractions is all located in one place. http://www.thejorvikgroup.com/
York St Mary’s Castlegate, York
York St Mary’s is a beautiful medieval church which opened as a contemporary visual art venue in 2004. The remains of the original Saxon church are limited to stonework in the body of the church close to the chancel. The bulk of the building dates to the early 13th century, with 14th and 15th century modifications and alterations. It has the tallest steeple in York at 47 metres high. York St Mary’s was deconsecrated in 1958 and between 1975 and 2001 was a heritage centre. http://www.yorkstmarys.org.uk/about-us/history-of-york-st-marys/
Clifford’s Tower Tower St, York, North Yorkshire
Clifford’s Tower is one of the best-loved landmarks in York. It is the largest remaining part of York Castle, once the centre of government for the north of England. The 11th-century timber tower on top of the earth mound was burned down in 1190, after York’s Jewish community, some 150 strong, was besieged here by a mob and committed mass suicide. The present 13thcentury stone tower was probably used as a treasury and later as a prison. http://www.english-heritage.org.uk/visit/places/cliffords-tower-york/ YORK
Famous Residents York has a rich heritage of religious, literary, art and revolutionary personalities. Here are a few of the city’s famous residents over the years:
Guy Fawkes
telegraph.co.uk
Member of a radical Catholic group who planned the failed Gunpowder plot on parliament in1605. On November 5th, 1605, bonfires were set alight to celebrate the safety of the King. Since then, the date has become known as Bonfire Night. The event is commemorated every year with fireworks and burning effigies of Guy Fawkes on a bonfire. Fawkes was educated at St. Peter’s school in York, who to this day refuse to burn an effigy of their former pupil.
Margaret Clitherow
dowym.com
“The Pearl of York” Saint Margaret Clitherow is an English Saint and Catholic martyr. She risked her life during England’s break from the Church of Rome in late 1500s, by harbouring priests in her house. Sentenced to death while pregnant with her fourth child. In 1929 she was canonised by Pope Pius XI.
William Etty
wikipedia.org
An English architect and craftsman, best known for his historical paintings containing nude figures. He was the first significant British painter of nudes and still lifes. He also contributed to a number of other architecture landmarks around his home county of Yorkshire.
W.H.Auden W.H.Auden was a British poet, author and playwright best known as a leading literary figure in the 20th century for his poetry. Born in York, he is known for his chameleon-like ability to write poems in almost every verse form. Auden’s travels in countries torn by political strife influenced his early works. He won the Pulitzer Prize in 1948.
wikipedia
David Bradley David Bradley is a veteran of the English stage, well known for playing a cranky old-timer in the Harry Potter films and recently the role of Lord Walder Frey in Game of Thrones. Born in York in 1942, Bradley joined the Royal Academy of Dramatic Arts in London in 1966, and since then has worked steadily in mostly British productions, on stage and on TV.
inquisitr.com
Judi Dench Judi Dench is a British author and actress from York. She is well known for her role as M in the James Bond franchise movies. Dench is a multiple award winner for her acting in film and television, but developed her reputation primarily through her work in theatre, which has been her forte throughout her career. CITY SPOTLIGHT
tvguide.com
History While other British cities were built on steel, coal or wood, York’s fame and fortune have rested on chocolate for almost 300 years. Famous confectioneries such as Kit Kat, Smarties and Aero have all originated from York and the city is still known today as “the home of chocolate”. The Past York is the birthplace of Rowntree’s and Terry’s, however the rapid expansion of both chocolate manufacturers could not have occurred without the introduction of the railways. The railways brought workers into their factories and took their chocolate to markets worldwide, enabling their businesses to grow in to global empires.
Rowntree’s Rowntree’s was founded at Castlegate in York by Henry Isaac Rowntree in 1862. The company developed strong associations with Quaker philanthropy and throughout much of the nineteenth and twentieth centuries, it was one of the top three confectionery manufacturers in the UK. Although Rowntree’s Fruit Pastilles and Fruit Gums have always been very popular, Rowntree’s was unable to replicate this success with chocolate. This was becoming a major problem from 1914 onwards as the British public’s preference continued to move towards milk chocolate. In 1935, Rowntree abandoned its attempts to compete with Cadbury Dairy Milk and instead launched Aero and The Chocolate Crisp which is today known as the Kit Kat. Following the success of these products, Rowntree went on to develop numerous brands of confectionery which some may say are more famous than Rowntree’s themselves! These include Smarties, Polo, After Eights, Rolo, Quality Street and Lion! Rowntree was eventually taken-over by Nestle, however the company has kept many of its operations in York.
Terry’s Founded in 1767, Terry’s employed over 700 people at its plant during peak times to produce world-renowned delights such as Terry’s All Gold and Chocolate Orange. The company’s headquarters in York were renamed The Chocolate Works factory and are still part of the York skyline today.
Did you know? The first Terry’s chocolate ‘fruit’ to be made in York wasn’t the famous Orange, but a Terry’s Chocolate Apple. YORK
SALES & RENTAL INDEX Average Rent per Region Overall UK average = £764 (+5.1%) North East = £532 (+1.6%) North West = £659 (-1%) Yorkshire and Humber = £627 (+4.8%) East Midlands = £646 (+7.9%) West Midlands = £659 (+2.2%) East Anglia = £809 (+4.3%) Wales = £597 (+4.3%) London = £1,543 (+7.7%) South East = £963 (+5.1%) South West = £891 (+3.2%) Homelet Rental Index (Year on year change)
Average House Price per Region Overall UK average = £209,054 (+7.1%) North East = £121,719 (+0.1%) North West = £145,149 (+5.8%) Yorkshire and Humber = £146,712 (+6%)
East Midlands = £167,762 (+7.8%) West Midlands = £173,321 (+7.1%) East Anglia = £263,420 (+13.6%) Wales = £139,385 (+1.7%) London = £470,025 (+14.5%) South East = £301,689 (+12.3%) South West = £227,404 (+6%) UK Land Registry (Year on year change)
“I come from Yorkshire in England where we like to eat chip sandwiches - white bread, butter, tomato ketchup and big fat french fries cooked in beef dripping.” Helen Fielding - Author of Bridget Jones’s Diary
Clifford’s Tower
Words
Richard Williams
Design
Priya Gill
Anethe Carvalho
Miao Yu
We hope you’ve enjoyed the fifth 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.