Welsh House Prices Set to fall in 2013

At Rooms in Cardiff we aim to provide landlords, home owners and property investor’s detailed analysis of the property market in Cardiff, Wales and across the UK.

The latest House Price report from Knight Frank bears grim reading for UK home owners and property investors in Wales and across the UK as Knight Frank predict house prices to fall across the UK with Welsh house prices predicted to fall a further 3.8%.

Key headlines of the Knight Frank report include:

  • UK house prices will not reach their 2007 peak until 2019: the longest housing market recovery on record, according to Knight Frank’s new forecast
  • UK housing transactions to rise 2% in 2013, but to remain well below peak levels for the rest of the decade
  • Tax changes forecast to weigh on prime central London prices, with no price movement expected in 2013.
  • 5 years since start financial crisis and UK housing market is not fully functional
  • Transaction levels 50% lower than in 2007 and 35% below 20 year average
  • House prices being supported by unusual economic conditions, ultra-low interest rates
  • Further correction in house prices is needed as relationship between average earnings and average house prices is well above long term average.

 

UK Regional Market House Price Growth

  20 Year Average to 2011 2007 2008 2009 2010 2011 2012 2013
East Anglia 5.8% 5.7% -16.6% 4.5% 3.4% 1.4% -2.4% -0.7%
East Midlands 5.5% 2.8% -14.2% -2.5% 1.7% 0.7% -1.6% -1.0%
London 7.4% 12.8% -15.1% 7.0% 2.5% 5.4% -0.2% -0.6%
North East 4.9% 3.7% -11.0% -2.0% 0.6% -1.0% 0.5% -2.3%
North West 4.9% 3.5% -14.4% 2.7% -1.9% -1.1% -1.8% -2.6%
Scotland 5.3% 10.1% -8.1% 1.0% -2.1% -0.8% -3.6% -3.2%
South East 6.4% 7.9% -15.7% 6.0% 2.4% 1.6% -0.9% -1.1%
South West 6.3% 6.4% -14.9% 3.8% 2.1% 0.8% -1.0% -2.2%
Wales 5.6% 4.2% -12.1% -0.3% -1.9% 1.6% -3.6% -3.8%
West Midlands 5.2% 4.4% -14.0% 2.1% 0.6% 0.4% -1.3% -2.1%

Read the full Knight Frank report here

The figures above suggest home owners, landlords and property investors across Wales should expect further house price drops so what can you do to weather the storm and shelter yourself from falling house prices.

At Rooms in Cardiff we are able to provide financial security to those of you with negative equity or landlords with empty homes by providing a guaranteed rental income for period of 12 months or more.  Rooms in Cardiff guaranteed rental income scheme is a great solution to landlords and homeowners across Cardiff and South Wales as we can help lighten the financial burden by providing a rent guarantee ensuring a monthly payment with no void periods, no set up fees and often with no maintenance costs.

Rooms in Cardiff are a specialist multi let and House of Multiple Occupancy (HMO) landlord service provider and can provide a HMO Rent Guarantee as well as providing a guaranteed rental income for apartments, bungalows, flats and homes across Cardiff and South Wales.

To discuss how Rooms in Cardiff can help relieve the financial burden of a house in negative equity or a rental property that is left empty and provide a guaranteed rental income, why not email info@webletz.co.uk or call 0845 496 0000.

Landlords lure Students with iPads & More

Yesterday a post appeared on Property Tribes “London landlords lure students with iPads as university fees bite”.  The article was first published by Reuters news agency highlighting the incentives London landlords are offering to attract student tenants as student numbers are dropping in the capital due to introduction of university fees and tighter restrictions being imposed on the number of non-EU being able to obtain a Student Visa.

Student accommodation as always be looked upon as a safe property investment with excellent annual returns but is student housing reputation looking a lot more shaky?

The problem isn’t just affecting small landlords it’s proving problematic for corporate organisations too.  Irish owned O’Flynn Group, Carlyle Group’s Pure Student Living and Quintain Estates are among developers who have struggled to fill student rooms in London this year after the British government tripled maximum university fees to 9,000 pounds ($14,400), triggering a 12 per cent fall in numbers from Britain and the EU.

Investment in student housing has risen from 350 million pounds in 2009 to some two billion pounds in the first nine months of 2012, data from CBRE Group showed. Investors are attracted by high occupancy rates and stable income streams.

Read the full article from Reuters >>> here.

Back in September Rooms in Cardiff published a post titled “Cardiff Student Housing or Professional House Share?” which highlighted the fall in student numbers across the UK, Wales and Cardiff with the aim of providing an alternative use for large family houses, Multi Let property and House of Multiple Occupation (HMO) in the Welsh capital.

The aim of the post was to draw landlord’s attention to professional house share a real alternative to Cardiff Student housing.  There is huge demand for professional house share in Cardiff as well as fantastic annual returns as professional tenants require your House of Multiple Occupancy (HMO) 12 months of the year.

As a landlord and owner of a House of Multiple Occupancy (HMO) in Cardiff you are ideally placed to utilise your property more efficiently and take advantage of the growing professional house share market.  So if you are interested in moving away from Cardiff Student housing have Rooms to Rent in Cardiff why not contact Rooms in Cardiff to discuss how we can help you find professional tenants for your professional house share with our low cost, fixed price £120 tenant finder service.

We can also provide landlords with a complete HMO Rent Guarantee scheme taking the complete hassle out of HMO and Multi Let management, with no void periods, no set up fees and no maintenance costs; we can provide a guaranteed rental income for a 12 month plus period.

Contact Rooms in Cardiff on 0845 496 0000 or email info@webletz.coc.uk to discuss how you can diversify into the professional house share market in Cardiff and across South Wales.

Guaranteed Rental Income Cardiff

The buzz around the property world at present seems to be “Rent to Rent” or as we like to call it Rent Guarantee.  Do not confuse this with Rent Guarantee Insurance as with our Rent Guarantee Scheme there is no set up costs and no excess charges and no small print which stops claims being made for the 90 days of the policy.

Our Guaranteed Rental Income Cardiff scheme is simple to understand and guarantees landlords in Cardiff and across South Wales piece of mind that they will receive a guaranteed rental income each month with no void periods and no hassle.

How Does Rent Guarantee Work

The flow chart on the left explains it best.  For “Rent to Rent” or Rent Guarantee to work three separate parties are needed:

The landlord this is the party who is looking for a guaranteed rental income for their property investment.

 Rooms in Cardiff: We provide The Landlord with a true rental market appraisal of their property investment as well as providing a Rent Guarantee figure we can provide each month of the contract term whether your property is tenanted or not.

 Tenant(s): If The Landlord agrees to Rooms in Cardiff Rent Guarantee figure and enters into a Rent Guarantee agreement then it is Rooms in Cardiff job to proactively search for professional and referenced tenants, set up tenancies and manage the property investment at no expense to The Landlord.

The contract between The Landlord and Rooms in Cardiff is a commercial Agreement or Management Agreement which outlines when the Rent Guarantee Scheme will commence, its duration and the Rent Guarantee figure The Landlord will receive.

Once a professional Tenant or Tenant(s) have been found and they have successfully completed Landlord Referencing, Employment Referencing and Credit profiling Rooms in Cardiff will enter into an Assured Shorthold Teancy (AST) for a 6 month period with the tenant(s) as well as conducting a thorough inventory and lodging tenant deposits with The Deposit protection Service as required by the Housing Act 2004.

If you are looking for a Guaranteed Rental Income Cardiff our no fuss and easy to understand Rent Guarantee Scheme is the perfect solution whether your property investment is an apartment, flat, bungalow, family home or house of multiple occupancy (HMO).

For a no obligation Rent Guarantee appraisal please email info@roomsincardiff.co.uk or call us on 0845 496 0000 to speak with one of our team.

Accidental Landlords

Research by the Association of Residential Letting Agents suggests that 43% of its members have seen an increase in the number of accidental landlords, home owners who have to rent out their homes as they are unable to sell.

If you are an Accidental landlord in Cardiff or across South Wales and would like piece of mind and a guaranteed rental income we can help.  Our cost effective Rent Guarantee Scheme has not set up costs, no management fees and no void periods providing accidental landlords with a hassle free alternative to using a traditional letting agent.

Whether you are an accidental landlord with a flat, house or bungalow why not contact us to discuss how we can provide you with a guaranteed rental income in Cardiff and across South wales.

Email info@webletz.co.uk

Telephone 0845 496 0000