Andy Kerr, Founder at BOXT has commented:

“The cost of living crisis coupled with the race to Net Zero has resulted in increased demand for solar panels. That’s why we wanted to answer some of the most common questions consumers have about solar panels and their maintenance to help anyone considering making the switch to more renewable and sustainable energy.”

The experts at BOXT have put together a guide on solar panels, sourcing the most commonly asked questions about solar panels by analysing Google search data from July 2022 – July 2023, as well as revealing how to maintain solar panels to maximise their energy output to help anyone considering installations.

1. How do solar panels work? 

Solar panels absorb light energy using photovoltaic cells. These cells are sandwiched between layers of semiconducting material, usually silicon. When light hits a solar cell it sets the electrons in motion causing an electric current called the photovoltaic effect. This effect creates a flow of electricity that can be used to power your home.

2. Do solar panels work all year?

In short, yes. With 16,680 Google searches for the question “Do solar panels work in winter?” in the last year alone, one of the biggest concerns about solar panels is whether they work throughout the year. 

Solar panels capture their energy from light, not heat, meaning they will still function in winter months. A cold bright day actually means solar cells will produce more electricity than on warmer bright days due to the contrast in energy between the photons from sunlight and the solar cells’ electrons. The higher the difference in energy between the two particles, the more power is produced, and during colder weather the difference between the two particles is greater, resulting in increased power generation within the solar cell when the light hits it.

In addition, solar cells absorb diffused light, including light that has been dispersed by particles such as rain clouds. This means panels do not need direct sunlight to function and can generate electricity even on cloudier days. 

3. Do solar panels need to be cleaned? 

Between July 2022 – July 2023, consumers asked Google the question ‘Do solar panels need cleaning?’ 15,360 times, and the answer is yes. Solar panels convert light into power, so it is important to have a clear panel that will allow as much as light as possible to pass through. Whilst solar panels require minimal maintenance once installed as they have no moving parts, keeping them clean will optimise their efficiency and ensure long-term benefits. 

4. How often should I clean solar panels?

With a 33% increase in Google searches in the last three months alone, the frequency of solar panel cleaning is a question on consumers’ minds. 

On average, solar panels should be cleaned every six months but this depends on their positioning and location. For instance, if you live in a more built-up area where more dust, exhaust fumes and dirt can build up, wooded areas where droppings can accumulate, or your solar panels are located on a shed where leaves will need to be cleared more frequently it may be better to clean them every three to four months.

5. What is the best way to clean solar panels?

The question “What is the best way to clean solar panels?” has seen a 21% increase in Google searches in the past year. Luckily, cleaning solar panels at home is not a difficult task and can be completed whilst on the ground.

First, you need to switch off the entire solar system to ensure your safety when cleaning the panels. Next, remove any loose dirt and leaves with a soft brush with a long handle. Use a soft brush or wet a soft rag with biodegradable soap and attach this to a long-handled wiper, wiping away any residue that may have built up. Never use an abrasive soap or sponge as you risk scratching the glass. Rinse a hose over the panels for a final clean, but keep on a low setting to avoid damaging the glass. 

Most window cleaners have extendable cleaning poles which they will use to clean Velux windows and an easy way to clean your solar panels would be asking your regular window cleaner to clean your panel along with your window visit.

Before starting the process, remember the best time to clean any panels is in the early morning, late afternoon or on overcast days. When the sun is shining, any water or cleaning products used will evaporate quickly, leaving behind residue which can decrease your panels’ efficiency as much as dirt and dust.

BOXT have also shared 6 tips for maintaining solar panels:

1. Minimise potential shading

Even small amounts of shade can significantly reduce the efficiency of solar panels. Trim any nearby vegetation, remove any overhanging trees or branches and check there are no potential shading objects to ensure the biggest possible surface area of the panel is exposed to light.

2. Clean throughout the year

The more light a solar panel can absorb, the greater the electric current. Rinse down with a hose every few months, or wipe them down with a damp rag to reduce any contamination which could reduce the electricity yield. Another option is to install an automatic cleaning system which comes equipped with sprinklers to keep the surface of the panel clear.

3. Regularly inspect your panels

While rainwater is great at washing away dust from your panels, it may not be sufficient enough to remove heavier, more stubborn dirt and can cause grime to accumulate at the bottom of the panel. Check for any major blockages or debris that may have gathered on your panels at regular intervals throughout the year to make sure they are in optimal condition to generate electricity.

4. Carry out inspections after more extreme weather conditions

Solar panels are built with durability in mind and are designed to withstand extreme weather conditions. However, recording the state of your solar panels before a more significant weather event will allow you to identify any damage that may occur. This will mean you will be able to get suitable repairs to ensure your system can get back to its best.

5. Monitor performance

Solar panel systems often have monitoring software that allows you to track your system’s energy production to ensure your solar panels are functioning optimally. Monitor the data regularly so you can quickly identify any declines in performance that may suggest your panels need maintenance or cleaning.

6. Schedule a service

Small signs of wear and tear can be hard to spot for the untrained eye, but will eventually slow down your panels. Schedule a professional to inspect your solar panel system every year or two to guarantee your system is in optimum condition.

The post Solar Panel Guide: The Most Asked Questions Answered by Experts first appeared on Property Insider.

Property Sale Watchdog is committed to helping homeowners at risk of repossession to understand their position, the rights and what they might be able to do about it. Repossession is not an inevitable outcome and Property Sale Watchdog has created a guide to enable, empower and educate people about their options.

The Property Sale Watchdog Guide to Repossession has been tirelessly researched and represents the definitive guide on the subject of repossessions. Information and guidance included in the guide will help homeowners understand how they can stop the repossession of their home in a step-by-step process that sets out what they can do and who they can speak to. It makes it clear that there are options available and it clearly sets out the different parts to the repossession process to show what actions can be taken and when.

In addition to signposts to where you can find more information about repossessions, the guide offers concrete steps for those who are potentially facing a deeply traumatic experience. The guide takes you through the support on offer from debt charities and, maybe surprisingly, from lenders.

Rajul Chande, Founder of Property Sale Watchdog, said, “We are pleased to offer this resource to those who are under threat of repossession. It is a stressful time and there’s not always a lot of independent advice out there for people to understand what they can and can’t do. Our Guide is also designed to clearly set out the repossession process so that they could put measures in place that might help you address any issues earlier.”

The Guide, as with all guides on Property Sale Watchdog, are free and openly available for use.

The post Property Sale Watchdog helps struggling homeowners with definitive guide on repossessions first appeared on Property Insider.

Home sellers in the SW3 (London) postcode dropped their prices by an average of £-145,480 (-5.21%) secure a sale

Professional we buy any house firm Property Solvers has revealed the areas in England where home sellers have been reducing their prices the most.

Tracking 72,982 property transactions between October 2020 and October 2021, the monthly updated asking vs. sold price difference tool shows the average differences between asking prices on Rightmove and their actual sold prices lodged at the HM Land Registry.

The data therefore monitors the entire house sale process from initial listing, viewings, negotiation, offers, agreement through to the survey process, conveyancing, exchange and finally completion.

Taking a minimum average of 15 property sales (to not skew the results), some of the biggest price discounts in England were seen in the SW3 (London) postcode.  Across this region, 26 sellers were knocking off an average of £-145,480 (or -5.21%) from the initial asking price in the 12 months to October 2021.

Over the same period, the lowest hits on price were seen in B37 (Birmingham), where 21 home sellers reduced their properties by an average of £-2,030 (or 1.06%) to get the sale going.

Based on a minimum of 15 average sales, the tables below show some of the more interesting trends.

Co-founder at Property Solvers Ruban Selvanayagam says: “despite what has been a very active market, homebuyers are still, by and large, able to negotiate down on prices.  There is also wider evidence of surveyors down valuing properties that are misaligned with the realities.  This means that properties end up selling for lower than the original estate agent price estimation.”

It’s relative of course, a more expensive property is likely to see a wider price difference.  Nonetheless, when buying, it’s worth checking how much prices are being reduced in your area using our tool.”

“For sellers, before listing, we always suggest looking at the widely available free data from HM Land Registry which tracks the prices properties are sold for and not what they are advertised for.”

Selvanayagam concludes: “This tool will be updated on a monthly basis so sellers can see how realistically homes are being priced in their own postcode.”

The post England’s Widest Asking vs. Sold House Price Differences Revealed first appeared on Property Insider.

Gardens and outdoor space

Throughout the pandemic, there has been increased demand both within prime Central London, and further afield across the UK, for homes with substantial outdoor space and gardens. Savills recently reported that domestic buyers and London-based international buyers have focused their attention on houses with outside space in a bid to upsize during the recent ‘race for space’.

According to Astons, the W1K postcode of Mayfair and St James’s is the greenest area of prime Central London, as an estimated 36.5% of the postcode area presents open outdoor spaces for high-end homebuyers.

Similarly, the areas of Knightsbridge and Belgravia offer considerable outdoor space to buyers, making these regions highly appealing too.

A ‘village’ feel

With more people than ever working from home, and many continuing to undertake flexible working arrangements for the foreseeable future, prime areas such as Holland Park, Hampstead Heath and Notting Hill which offer a more laidback ‘village’ feel, have become increasingly attractive with high-net-worth individuals (HNWI).

These affluent leafy neighbourhoods offer an improved quality of life for many, boasting gorgeous streets lined with spacious family townhouses, as well as high-end shopping and some of London’s top schools.

Period features

Steeped in rich historical charm with quintessentially English features, Central London’s prime period properties have always been popular for HNWIs, particularly those from overseas.

Savills recently predicted that London’s prime central property market is set to grow 21.5% over the next five years, because of a “huge pent-up demand from those who have been restricted by travel over the past year.” In particular, the recent easing of travel restrictions between the UK and UAE will result in an uplift from overseas buyers, many of whom are drawn to London’s timeless allure.  

Prime Central London is home to an array of iconic institutions and landmarks, with stunning architecture to match, making living within these desirable postcodes all the more appealing. From Victorian to Georgian, these properties offer a unique sense of character that can’t be replicated, and this is something that will always continue to attract both local and international buyers.

Many of our clients are interested in well-restored classic period features such as intricately designed cornices, decorative ceiling roses and high-quality original parquet floors that have stood the tests of time. High ceilings are also incredibly sought after, as they offer much more volume to a room. Clients love the idea of having something that is truly unique to them – that’s what makes their home fascinatingly different.

However, it’s vital to strike the balance between lovingly restored period features and modern touches, as clients are increasingly looking for homes with updated appliances and stylish, renovated rooms such as sleek marble bathrooms. These contemporary, high-spec requirements are just as important to my high-net-worth clients.

Light, bright spaces

Extended periods of time spent bound to the home during the last 18 months have encouraged buyers to consider their interiors more than ever. Demand for key features such as large windows and high ceilings have increased, as buyers seek bright, airy spaces which evoke a more relaxed and uplifting environment for them to eat, work and host loved ones.

A recent study by money.co.uk highlights how “the living areas which were once seen as cosy are now considered dark and claustrophobic, and people are wanting lighter and higher living spaces” as natural light remains a priority for buyers beyond the pandemic, as they consider the impact of their homes upon their mental and physical wellbeing during their search for the perfect property.

By Edward Aldersley

For more information on Aldersley London visit www.aldersleylondon.com

See also: What Can We Expect From The Prime London Property Market?

The post Top Features for Prime Central London Buyers at the Moment first appeared on Property Insider.

Of course, building a property portfolio demands a lot of research and planning, but what worthwhile investment doesn’t?

Property is often considered a more flexible investment asset in comparison to others, with it typically requiring less maintenance than stocks and cryptocurrency, while offering a lot more flexibility. Property investment provides a wealth of different avenues to suit each and every financial goal, whether that be through a single property or an established portfolio.

But how long does it take to build a property portfolio? Leading UK property developer, SevenCapital, discusses how investors could achieve a successful property empire in just five years:

Where to Start?

Investing in property is usually relatively straightforward, despite any worries you might have as a first-time investor. However, as we mentioned, there are a lot of different routes you can go down to build your property empire, including investing with equity, a Real Estate Investment Trust (REIT) or property crowdfunding.

Investing in property doesn’t always require you to have a spare £50,000 readily available, with alternative routes, such as releasing equity being common for a lot of investors. Releasing equity through either remortgaging or getting a second loan will give you a good basis for a deposit, and is especially helpful for those who are ‘asset rich’.

Equity is a great avenue if you want to single-handedly build a property portfolio, but for those who don’t have the time (or resources) to do so, REITs are also an option. Defined as a collection of shares in property, either residential or commercial, these assets add up to create a portfolio.

Investing in a ready-made portfolio without having to do all the research, what’s not to like? At face value, this might seem a simple, yet effective, way of building an empire, but on closer inspection, it isn’t. Due to the nature of a REIT, 90% of all rental profits will need to be split between all stakeholders, meaning any returns are considerably lower than if you were to build your own portfolio. 

Property crowdfunding is pretty self-explanatory, but is essentially a group of investors pooling their money together to own shares of a property’s equity – which can be done either with the profit upon sale, or with the monthly rental income. While this investment route can allow you to gradually build a portfolio, much like REITs, the returns are generally fairly low. 

Knowing where to start can be one of the most difficult parts of building a property portfolio, but being aware of your options makes the process much more manageable. For those looking to build a successful property empire, you’ll want to pay particular attention to rental income and capital growth, as opposed to splitting your profits.

Scale, Scale, Scale

Imagine this, you’ve decided on your financial approach and have your first buy-to-Let property, but how do you turn this into an empire?

One word – scale.

In the grand scheme of things, five years isn’t a great deal of time, but with a clear plan and goal in place, building a successful property empire is achievable. With this in mind, the property market can fluctuate a lot within this time period, bringing with it both highs and lows.

Building a property empire over a five-year period is feasible by scaling on an annual basis, adding a new off-plan property every year. After starting with a single property and adding one per year, assuming your previous investments see capital growth, you can quickly put together the foundations of a high-quality, long-term property portfolio.

The third year of your investment journey will likely see your first property complete, which in turn, will mean you start paying mortgage repayments. However, rental income on the property should equate to around 125% of this repayment, covering these monthly costs with relative ease. As you see your first two properties continue to grow in profit, this third addition to your empire will also allow you to benefit from staggered off-plan completions.

By the fourth year and fifth year, your properties should have gradually completed and continue yielding a passive income, one of which could be used towards a deposit for your final two properties. Once you have your fifth property under your belt, it should mainly be a case of maintaining your rental income.

On a long-term basis, your rental income will continue covering your mortgage repayments and once these are cleared, you’ll be left with all profit – minus any payable service charges and general maintenance costs. If you’re investing in properties of around £200k, this could see each asset grow by double the original price within 20 years, which when expanded across all five properties could mean an empire worth close to £2,000,000 – all from an initial investment of £250,000 over five years.

What next?

Building a property empire within five years can be challenging, despite the straightforward example we have given, but once you’ve reached this point you can choose to simply focus on sustaining your portfolio. Whether you choose to be a hands-on or hands-off investor, managing your time in the market will be crucial.

Although you should probably have an idea of your intended holding pattern at the beginning of your investment journey, it’s not uncommon for investors to decide on a specific period while they establish their portfolio. However, this holding pattern will largely depend on your financial goals, and whether you’re looking for short-term returns, or a long-term investment based on capital appreciation.

Regardless of how long you choose to stay in the market, during this hold period, it’s often recommended that investors build up a financial ‘safety net’. All investments come with their risks, but buy-to-let property comes with the possibility of void periods. Although research can usually give investors an idea of what tenants are looking for in a rental property, void periods across a portfolio of numerous properties can cripple a portfolio, especially with mortgages to consider.

So, can you build a property empire in five years?

If you have an accessible route to start you off, an appetite for hard work, as well as potentially lucrative investments, this avenue could be your answer to financial freedom. While there is a lot to consider, the possibility of having multiple passive incomes on a monthly basis, as well as significant capital growth in the long-term, is often enough to encourage investors to consider building their property empire.

*Article intended as a guide. As with any investment plan, always seek advice from a qualified Financial Advisor.

The post Can You Build A Property Empire in 5 Years? first appeared on Property Insider.

Anyone living in the UK knows it rains. A lot. Residents deal with bad weather daily and are prepared for it. But Britain’s damp climate and constant showers also wreak havoc on UK houses. Damp, condensation, and mould are issues that can lead to property damage and may even affect the health of occupants.

While the Met Office has plenty of data on the UK areas that receive the most rain, in which areas are you most likely to find damp indoors? The team at Allerton Damp Proofing have analysed a year of Google searches for damp solutions across the UK to reveal the areas where residents have the most issues with their property and damp.

Using the content research tool Ahrefs, the team found the most common questions online relating to damp, condensation and mould. They then analysed these in Google Keyword Planner to calculate the number of people who searched for damp-related problems and solutions over the past year across the UK.

There have been 12,636,555 damp issue queries in the UK this past year.

Over 12 million people experienced damp issues this past year. The majority of these were located in England, where 10,999,963 people had damp housing issues. This is followed by Scotland, with 758,473 people experiencing damp issues, then Wales with 637,398 searches. Northern Ireland had 227,646 damp problems, while the residents of the Isle of Man only searched for damp issues 13,075 times.

Where are the majority of people experiencing damp issues?

Over the past year, 1,266,656 people searched for damp issues and solutions in the capital. With a population of 9,304,000, almost 1 in 7 Londoners are experiencing damp, mould or condensation.

The top ten mouldiest cities:

1. London (1,266,656 searches)

2. Birmingham (227,537 searches)

3. Bristol (152,955 searches)

4. Liverpool (110,354 searches)

5. Sheffield (98,355 searches)

6. Manchester (96,657 searches)

7. Glasgow (95,294 searches)

8. Edinburgh (91,549 searches)

9. Leeds (87,953 searches)

10. Bournemouth (76,314 searches)

All of these cities have high populations so may naturally have more residents experiencing damp – but tenth spot Bournemouth has a population of just 198,296, with 76,314 people searching for damp solutions. Therefore 4 in 10 residents may have experienced issues with damp, mould and condensation in their homes.

Why might a property have damp issues?

There are many reasons why a property becomes mouldy. Joe Trivett, Damp Expert at Allerton Damp Proofing, walks us through the potential causes:

Renovation pushing in water

“In cities with high property prices such as London, every inch of space is valuable to the homeowner. Some popular ways to make the most of exterior space include patios, paving, concreting, and walls to shield the garden from onlookers. However, water will always take the path of least resistance, so solid surfaces and building work can push water into the property, where it once soaked through the ground.

“Another renovation that could cause issues are neighbouring basements or cellars being built or converted. If neighbours dig down into basements, there is less area for water to drain into, so the natural level that water sits at moves closer to the surface. In turn, if your property is already below ground, the amount of pressure the water exerts on your basement is increased. This heightens the chances of a leak.

“If a neighbour’s basement is being waterproofed or tanked, this can also push water into your basement. It’s worth checking the work neighbours are having done, especially if your property shares a wall with theirs.”

Outdated building techniques

“If the property is a Victorian-era or older build, it may have a few issues that could cause dampness. The walls and floors of properties soak up water from the ground. Most houses are built with a damp proof coursing layer just above ground level to combat this process, stopping water at the building’s base from moving up the walls. However, this often breaks down or isn’t installed in old properties, which is why Victorian houses might have damp problems that can cause mould and rot to develop at the bottom of walls and on skirting boards.”

Lack of ventilation

“Humans sweat and exhale water droplets, while daily activities such as showering and boiling water produce additional humidity. This water condensates on windows and walls, providing the perfect damp surface for mould to grow on. Plenty of ventilation is key for humid air to leave the property and allow walls and windows to dry.”

Poor Maintenance

“If you suddenly see water pool through the roof or in patches on the wall, a leak is the most likely cause. Broken guttering, lost roof tiles or a broken pipe in the wall are common causes of a sudden leak.

“If the floorboards are damp or rotted, ventilation blocks that allow air to run under the house might be blocked by debris or building work, preventing floorboards from drying out.”

Here are some tips for preventing condensation, damp and mould:

• Keep your heating on low and continuously, rather than at high temperatures that cycle between on and off.
• Ventilate rooms, opening windows in humid rooms for short periods, especially if the windows don’t have any vents.
• Install and turn on extractor fans in high humidity rooms, such as the kitchen and bathroom.
• Check the ventilation blocks which allow a light draught to flow through the property or under the floorboards aren’t blocked.
• Check guttering and roof tiles aren’t broken or missing.
• Allow space between furniture and walls, so moisture isn’t trapped and can instead dry.
• Dry clothes outdoors, or use a tumble dryer that can pump humid air outside.
• As a property buyer, get a full property survey, especially when buying an older home. 

Joe Trivett, Damp Expert at Allerton Damp Proofing, adds: “Blocking up ventilation blocks and using draught blockers can be a quick way to heat your home, especially during the colder months. But the work required to treat damp may eventually swallow up the money saved on heating. A more energy-efficient approach that allows the property to ‘breathe’ and stay dry is installing more loft insulation and double glazed windows.

“In older properties, the use of a fireplace can help the building stay dry – as material combusts, the air is drawn from other areas of the house, creating a natural, warm draught that encourages drying of surfaces.”

About Allerton Damp Proofing

Allerton Damp Proofing are qualified damp proofing specialists serving Yorkshire, including Leeds, York, Hull and Sheffield. With more than 35 years of experience, they specialise in property surveys, basement conversion proofing, timber joinery and preservation, and mould and damp treatment/proofing.

As members of the Property Care Association, all surveyors and technicians have the suitable qualifications and skills needed to take good care of your home. Allerton Damp Proofing is certified by the Contractors Health and Safety Assessment Scheme, Trustmark and Which? Trusted Trader, ensuring your damp and wood treatments are in safe hands.

The post The UK’s Mouldiest Cities first appeared on Property Insider.

However, research by SevenCapital has found that in recent years, the majority of investors have recognised the potential of off-plan property. They say that 75% of their investors have chosen this investment route over the past three years.

Not only have more investors been completing on off-plan developments, but the last three years have also seen these enquiries dominate over those for completed properties. While 42% of SevenCapital enquiries over the same period have been for completed developments, the remaining 58% have been for off-plan properties, signifying this rising demand.

What Is Off-Plan Property?

Despite this rising popularity, many people are not familiar with off-plan property investment, which has impacted its addition to many portfolios. In a nutshell, investing in off-plan property essentially means investing either before – or during – the construction period. This way of investing is typically more common with apartments but can also be possible with alternative property types.

With the nature of the investment process, off-plan property isn’t for everyone. The typical timeline associated with off-plan property means that your money will be tied up during the build phase, but it is this period that has made off-plan investment more favourable against completed property.

Why Are Investors Choosing Off-Plan?

The opportunities that come with off-plan property are at the root of this demand, with more potential for capital gains. It’s understandable that having your money tied up in an intangible asset doesn’t fit with everyone’s financial goals, but the time taken for the development to complete can see your investment grow in value before it’s even been built.

The average time for an off-plan property to complete is around two years and a lot can change in this time. During this period, provided you’ve done your research, the surrounding areas can undergo some form of development and encourage natural capital growth within your property. Upon completion, this could mean the development is worth more than you initially paid.

This is where the location of your off-plan investment can propel your returns even further. Emerging locations are those that are undergoing some form of resurgence, usually due to a significant regeneration scheme, which we are seeing across Berkshire with the likes of Bracknell and Slough. As the property is developed alongside these regeneration projects, the overall area will increase in both value and popularity.

Tenant demands are constantly evolving, and with an increasing focus on modernity and tech, off-plan developments can meet these priorities, arguably more so than completed property. The promise of a brand-new apartment often means new fixtures, fittings and furnishings, which upon completion, is more likely to appeal to a wider pool of tenants.

Should I Consider Off-Plan Property?

Like with any investment, nothing should be off the table until you’ve done your due diligence. Whether you choose stocks and shares or property, all investments come with their risks, but if you find yourself considering off-plan property, there are several considerations.

Many of the opinions surrounding off-plan developments stem from it being ‘riskier’ than completed property. As with any investment, there is an element of risk but this can often be minimised in the early stages of your research. With the nature of investing pre- or mid-build, there are often concerns surrounding whether or not the development will actually complete.

However, choosing a trusted developer with a strong track record can significantly reduce the chances of the property not completing. So, what should you look for? During your research, keep a look out for testimonials, previous developments and completion times, which will then give you an idea of their reputability.

If your investment goals are more short-term, off-plan property may not be for you. As the property won’t be immediately available to let, you won’t be able to yield a passive income straight away. This doesn’t necessarily mean your investment won’t be making money during this period, it just means that you won’t be able to touch it.

Presenting opportunities for capital growth and increased future tenant demand, it is no surprise that off-plan property investment is on the rise. When compared to investing in completed property, off-plan developments can offer many benefits, from modern designs to contemporary fixtures and fittings. As the demand for these features inevitably continues to grow, it’s possible that more than 75% of investors will opt for this investment avenue in the years to come.

The post Investing In Off-Plan Property first appeared on Property Insider.

With this in mind, it is no surprise that the number of overseas landlords is at a five year high, now surpassing 184,000. This climbing amount of investment is a significant driver behind UK property prices, which have surpassed £300,000 for the first time in history.

However, all good things must come to an end, and with the Stamp Duty holiday concluding in September, will the recent surcharge change perspectives amongst overseas investors?

What is the Surcharge?

Since April 2016, on top of standard Stamp Duty Land Tax (SDLT), investors have been required to pay a further flat 3% Stamp Duty on the full value of all additional properties worth more than £40,000.

However, the UK government has also implemented a 2% surcharge for overseas investors. This surcharge will be in addition to the current Stamp Duty rates and will be applicable for the majority of international buyers, including both overseas investors and international companies. The government has been clear as to who will be exempt from the surcharge, predominantly those involved in Real Estate Investment Trusts and other collective investment vehicles.

The surcharge is largely being introduced in response to UK property’s upward trajectory for the past 20 years, the majority of which has been underpinned by international investment. This level of growth – bar momentary dips – has made it increasingly challenging for first-time buyers in the UK to get on the property ladder, hence the surcharge. 

What Does this Mean for Overseas Investors?

When this additional surcharge was announced in 2016, many experts anticipated a surge in overseas buyers investing in UK Buy-to-Let property, followed by a sharp fall. While international investment remained strong in the years leading up to 2020, the additional uncertainty surrounding Brexit and the pandemic was almost guaranteed to discourage overseas investors.

However, the Stamp Duty Holiday has not only propelled the UK property market, but also dissolved the majority of concerns surrounding Brexit. With the relatively positive results we’re seeing across post-Brexit Britain, combined with the continued growth arising from the Stamp Duty Holiday, the potential growth of UK property could significantly outweigh the overseas Stamp Duty surcharge.

But as government incentives end and the full effects of the Stamp Duty surcharge are felt in full effect, will UK property remain a long-term investment choice for overseas investors?

Opinion

Andy Foote, director at SevenCapital, comments: “Although we’ve known about the surcharge since 2016, the whirlwind of 2020 overshadowed it to some extent. But now it is in full swing, investing in UK property will inevitably be more expensive for non-UK investors.

“Considering the standard rate, combined with the surcharge, overseas investors could face extra payments they hadn’t considered within their property investment planning.

“That said, the performance of the property market over the past year, combined with its forecasted growth, still positions the UK as a high-performing, affordable property hotspot in comparison to alternative countries.

“Not only has the average property price surpassed £300,000, but rental yields are creeping up across the country. While the average UK rental yield currently sits at 3.53%, emerging areas, such as Bracknell, are reaching 4.80% for two bed apartments.

“Offering a passive income of up to £1,103 a month and £13,236 annually, it’s unlikely that this Stamp Duty surcharge will deter overseas investors, with the potential for 14.5% growth in prices by 2025 only offering more incentive to invest in UK property.”

Between Brexit, a global pandemic and extensive tax changes, the UK property industry has seen it all. The market’s resilience alone offers investors the reassurance that property is a sturdy investment, and with this growth forecasted to continue, the Stamp Duty surcharge is seemingly a small price to pay for a potentially lucrative asset.

The post Overseas Investors: Will UK Property Remain a Long-Term Investment Choice? first appeared on Property Insider.

Thankfully, the vaccine roll-out is bringing falling rates of infection and hospitalisations, and many landlords and investors may now begin looking to expand their portfolios. Restrictions are gradually being eased, and major lenders such as Barclays, Accord Mortgages, and Skipton International have already cut rates and raised their lending ceilings. So, for investors looking to bounce back from COVID-19,  where’s the best place in London to look at the moment?  

According to Portico’s data-analysis and interactive rental yield map, east London offers the best rental yields in the capital.  

Within east London, Barking has one of the lowest median house prices across Greater London – at just a shade over £300,000 and the best current rental yield in the capital at an impressive 5.9%. Barking has enjoyed significant redevelopment in recent times, and that’s being reflected in demand from tenants. Regeneration of the town centre has brought new retail and business spaces, along with more new homes.  

You don’t have to travel far in east London to find the next best rental yields on Portico’s chart. Upney is to the east of the same borough, and the tube station provides easy access to the city. While property prices are slightly higher than in other parts of the district, landlords can still find investment bargains, and a yield of 5.8% certainly helps. 

Third on the east London table comes Wall End, also boasting a 5.8% yield. The neighbourhood sits within multicultural East Ham, near the River Roding. It has good transport links and benefits from many older, lower-priced properties. 

Across the rest of the capital, north London’s Brimsdown offers a healthy yield of 5.6%. The best yield in the west is 5.1% in Hayes and Harlington, and in the south, Mitcham offers 4.9%. The top performers in the north and west of the capital share an ongoing transformation from their more commercial or industrial pasts and the future arrival of Crossrail trains. Mitcham, in the south,  has long been popular with retirees. 

As a comparison, according to Zoopla, London’s average gross rental yield was 3.8% in December 2020, down from 4.2% in February and 5.9% at its September 2012 peak. At the end of last year, the UK average was 5.3%.

Portico CEO Robert Nichols says: “Landlords and tenants have both changed their thinking in recent years due to a combination of factors. While property prices rose overall during the first half of the last decade and climbed 74% between 2010 – 2020, rents largely followed modest wage rises, and rental yields suffered somewhat as a result – especially in areas around central and West London. Heading into the new decade, coupled with Brexit, the global health crisis heaped further uncertainty on an already subdued property market, and that has carried into the current year. 

“Despite this, our research shows that there are still healthy rental yields to be found in London – if you know where to look. Outer London areas are actually seeing rent increases between 1-3% as tenants – now spending a lot more time at home – migrate from more central areas to the suburbs looking for more space. East London is still a buy-to-let hotspot – and we expect demand from tenants to increase as lockdown restrictions ease.”  

Landlords will regard the Government’s recent announcement of a plan to emerge from lockdown to be a positive sign, and they’ll be further buoyed by the fact that there are still strong rental yields to be found in London. However, while that improved economic outlook offers some opportunities elsewhere, the road out of lockdown still appears to point toward the east of the capital for London investors. 

To find buy-to-let hotspots across the capital, landlords can use Portico’s rental yield map to instantly drill down within individual postcodes and identify the neighbourhoods, and even streets, representing the highest return on investment.

London’s Top Rental Yield Hotspots in Q1 2021

The post The Neighbourhoods in the East Topping London’s Rental Yield Table first appeared on Property Insider.

But for investors in particular there’s another element that is equally important and that is future capital growth. One sure-fire way to try and maximise the potential of your property is through investing in a good property in an area which is subject to significant urban regeneration – with plans that are sustainable over the long-term.

Research previously carried out by CBRE discovered that homes close to regeneration zones attract an average 3.6% more price growth per year than properties in the wider local authority area.

So for those whose strategy for 2021 and beyond is investing in areas with the best urban regeneration programs, where should they be looking?

Leading UK developer SevenCapital has done some of the research for you to bring you its top five urban regeneration hotspots:

Birmingham

Birmingham has undergone an incredible transformation over the past 15-20 years, led by the Big City Plan, seeing £billions ploughed into infrastructure, retail, real estate and the core central area of the city.

First the Bullring had a complete revamp in the early 2000s, completely transforming the main central area of the city and establishing it as one of the best retail destinations in the UK. Since then the city’s momentum has continued to gather pace – and so have its house prices.

With ongoing major infrastructure projects – notably HS2 and the Midlands Metro Extension in the pipeline, along with the £1.5 billion Smithfield redevelopment and the upcoming 2022 Commonwealth Games, this city still has an abundance of potential still to untap.

Price growth past five years: 31.2%

Price growth past ten years: 49.2%

More about Birmingham.

Leeds

Currently one of the most exciting buy-to-let hotspots in the UK, Leeds also has a fantastic record of regeneration to thank and with £millions of investment still in the pipeline this city isn’t slowing down anytime soon.

Significant projects include a £3 million revamp of Leeds City Station, and a £270 million, 2.8-acre development in the ‘west end’ of the city – Lisbon Square, which is set to play a major role in doubling the size of the city-centre, providing a mix of residential, hotel and commercial space plus public realm.

With an increased focus on green space as we emerge from the pandemic, its circa £8 million set aside for the transformation of City Park and a further £7.4 million for redeveloping Temple Green Park and Ride are set to intensify the city’s attraction further.

Price growth past five years: 29.9%

Price growth past ten years: 49.2%

Slough

The only location in the South East in our top five, Slough was once viewed as an underdog however since work started on Crossrail in 2009 many an investor and Londoner’s attention has been drawn to this now popular commuter town – nearly 46% of homes are reportedly let to those leaving the capital.

With around £3 billion investment in the pipeline, Slough in the coming years is going to see an incredible facelift.

Key projects in the pipeline include a complete transformation of the town centre, including the Queensmere Shopping Centre which will be redesigned to include residential, 1 million sq.ft of office space and 500,000 sq ft of retail.

Whilst price growth over the past five years isn’t as high as the others on this list, with so much in the pipeline, its fantastic proximity to London and better affordability for London leavers, Slough’s prospects are set to continue an upwards trajectory.

Price growth past five years: 10.4%

Price growth past ten years: 65.1%

More about Slough.

Manchester

Manchester has seen a vast array of regeneration over the last 20 years or so which has seen investors flock to the city for affordable investments.

Already counting its £1.5 billion Spinningfields regeneration project, dubbed the ‘Canary Wharf of the North’, the city has plenty more in the development pipeline to keep investors interested.

In the pipeline is an £800 million NOMA project in the north of the city. This is followed by the Northern Gateway redevelopment – a 155 hectare site north of the city-centre that will undergo a transformation worth nearly £1 billion.

Finally, Manchester Mayfield is set to be Manchester’s first city-centre public park, integrated into a ‘world-class urban neighbourhood’ that will house both residents and small-to-medium scale independent startups.

Price growth past five years: 38.2%

Price growth past ten years: 67.6%

Sheffield

Sheffield’s major regeneration began largely with The Heart of the City masterplan, which helped regenerate Peace Gardens, the Winter Garden and St Paul’s Tower – the city’s tallest residential building.

Since then, with footfall, and demand increasing, it now has a £470 million Heart of the City II masterplan, which will focus on the retail sector, delivering a new destination for the city with ‘long-awaited commercial, leisure, retail and residential focal points’.

The 1.5 million sq.ft redevelopment will transform this area of the city into an agile, mixed-use district designed to bring in new jobs and higher investment.

Certainly a city to watch!

Price growth past five years: 26.5%

Price growth past ten years: 44.4%

Andy Foote, director at SevenCapital said: “Since London began to lose some of its shine, it’s done wonders in helping to spotlight alternative key towns and cities across the UK, kickstarting numerous significant regeneration and investment programs.

“Whereas once upon a time, most investors’ go-to might have been the capital, now there’s much more choice it can be quite difficult to work out where best to invest your money if you’re looking for the newest ‘hotspot’, because as you can see from our top five, there are multiple locations that would be worthwile.

“What is important however, and which is how SevenCapital identify certain areas, is looking for those areas which have demonstrated sustainable growth over a long period of time, which still have significant regeneration and investment plans in the pipeline.

“Birmingham always take our top spot, not for the highest growth, but for sustainably high growth, its central location and major infrastructure projects – HS2 and the fact that there is still so much investment and development in the pipeline.

“Similarly Slough, whilst its growth has been more modest over recent years, with its major revamp in the pipeline and already great connections to London only set to improve further with the imminent arrival of Crossrail, will continue to be a top choice for London leavers looking for a more affordable lifestyle without compromising on access to the capital.”

For more information on SevenCapital visit www.sevencapital.com. 

Connect with us: Twitter: @sevencapital  Facebook: SevenCapitalPlc  LinkedIn: SevenCapital

The post Top 5 Urban Regeneration Hotspots first appeared on Property Insider.