Fabrik Invest reveals property investors’ top concerns as they navigate Covid and Brexit

Fabrik Invest reveals property investors’ top concerns as they navigate Covid and Brexit

by Louise United Kingdom
  • Post-pandemic market projections occupying investors’ minds
  • Big wins for tertiary cities already beginning to play out
  • Local migration patterns and employment fluctuations being carefully monitored

Property investment agency Fabrik Invest has shared insights into the top concerns that property investors are expressing as they navigate the dual complexities of the pandemic and Brexit. The company works with investors from more than 20 countries and has been monitoring their top property-related concerns for the past year.

“The impact of the pandemic on the UK property market is, naturally, top of investors’ minds right now. They are even more keen than usual to see the latest data on price movements both nationally and locally. There’s also a lot of interest in what’s next for the market – what’s the landscape going to look like in the future, post-Brexit and post-Covid?”

Dale Anderson, Managing Director, Fabrik Invest

The stamp duty holiday – now extended to the end of June – has done much to not just keep the property market moving over the past year but to accelerate transactions significantly. Prices have risen as a result, with Nationwide’s February house price index showing annual growth of 6.9%.

Of course, the question on property investors’ minds is whether or not a crash is on the cards. Yet key industry analysts think not. Savills is projecting 4% growth in prices in 2021, followed by 5% in 2022. In fact, in the five years to 2025, the firm is anticipating price growth to total 21.1% across the UK, led by growth of 28.8% in the North West. The figures reflect the measures in the spring Budget, including the introduction of a government guarantee on 95% loan-to-value mortgages. The scheme is set to provide further stimulus for the housing market.

The fact that the Office for Budgetary Responsibility now expects, “a return to pre-Covid levels by the middle of next year, six months earlier than first thought,” according to Chancellor Rishi Sunak, is further good news for investors’ looking at the UK property market’s potential for growing their capital.

Quantitative easing and the recently announced Corporation Tax hikes will also play into the UK’s overall economic picture over the coming months and years, as will migration patterns driven by the pandemic and by local fluctuations in employment levels.

“I expect a short-term dip in prices in certain parts of the country – specifically the prime London and Manchester city centre markets. We’re likely to see homeowners and investors looking for better value outside of these areas instead. Third tier cities should make for the most attractive prospects.”

Dale Anderson, Managing Director, Fabrik Invest

Preston, in Lancashire, is one such example. With a rapidly growing population and £434 million worth of investment schemes underway, plus a further £19.9 million from the Towns Fund announced in the spring Budget, the city has plenty going for it.

The fact that Bishopgate Gardens, a 130-home residential scheme in Preston, is seeing a surge in interest right now speaks to the appeal of tertiary cities in property investors’ eyes. With shared social spaces including a stylish lounge area, a coffee pod café, show-stopping rooftop gardens and a shared working space, plus seven ground-floor retail units, the development offers a lifestyle experience designed to level up choices for Preston’s renters – and for its investors.

“What we’ve also heard over the past year is investors’ need for significant reassurance over the online nature of their transactions. This has been a direct result of the pandemic. Investors want to know how they can be sure they’re making the right decisions when everything is done virtually.”

Dale Anderson, Managing Director, Fabrik Invest

Fabrik Invest has fared well in this respect. The firm’s knowledge-based approach has seen it partner with leading financial and mortgage advisors as it works to provide investors with an honest approach to their investment options. That means not only providing deeply researched information on each investment location, but also being upfront about the risks associated with off-plan investment. The company’s consultants, all of whom have a minimum of a decade’s experience in the sector, host personal strategy meetings online, working to understand each investor’s goals at an individual level. 

It’s an approach that clients have found reassuring in the face of the adversity created by the pandemic – and by Brexit too. It means that, while the market is changing in terms of localised demand, property investors are still keen to be a part of the UK’s economic future. They’re just keen to know which cities will provide the best returns and the best potential for capital growth – so while the questions at the top of their minds have changed, their fundamental needs remain the same.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

Only My Share raises concerns over students struggling with rent, as claims rise 300%

Only My Share raises concerns over students struggling with rent, as claims rise 300%

by Louise United Kingdom
  • 50% of students struggle with their rent and 47% borrow to pay it (Save the Student)
  • Alarming number of renters unaware of their liability for their housemates’ rent
  • Only My Share sees 300% increase in number of claims during pandemic

Has there ever been a more complex and convoluted time for student renters than the past year? The latest Save the Student survey has revealed some interesting insights into the relationship between students and their accommodation, a year into the pandemic.

One of the most worrying statistics is that 50% of students report struggling with their rent. The financial burden that young people take on for their accommodation while at university has seen 60% report a resulting negative impact on their health in the past year. 45%, meanwhile, say that their studying has been negatively impacted by issues around paying rent.

“Young people come under enormous financial pressure when it comes to affording higher education in the UK. For many, the affordability of their accommodation is a near-constant worry. Parents and guardians also come under pressure to provide financial support, from acting as guarantors to helping out with rent payments.”

Jeremy Robinson, Group Managing Director, Only My Share

Save the Student reports that 47% of students borrow money to pay their rent, most notably from parents (27%) and banks (22%). On average, parents contribute £2,288 per year towards student rent.

Rent arrears protection service Only My Share points out that this is a major source of stress for furloughed parents and those who’ve lost their jobs or are facing financial insecurity as a result of the pandemic. The situation is exacerbated by tenancies that include joint and several clauses, under which students are responsible for their housemates’ share of the rent, as well as their own.

“Many student renters – and their guarantors – are unaware that they are liable for the rent of housemates who fail to pay under joint and several clauses. Consider that one in three students don’t even read their rental contract before signing it and the scale of the problem quickly becomes apparent.”

Terry Mason, Group Operations Director, Only My Share

Covid-19 has made the situation more complicated, with lockdowns and online learning raising question marks over students paying for accommodation that they aren’t using. Yet despite the pandemic, Save the Student reports that 28% of students have already signed a contract for their accommodation for the 2021/22 academic year. 

Only My Share, which is part of the Housing Handfamily, saw sales numbers for its joint and several liability cover rise by 82% between March and September 2020, compared to the same period a year before. It was also seen claims rocket, with an increase of 300% as a result of the pandemic. Group Operations Director Terry Mason observes:

“As the uncertainties stemming from the pandemic continue, it is encouraging that an increasing number of families are realising that they can take steps to mitigate their risk in terms of rental liabilities.”

The company’s advice to any students currently considering their rental options for 2021/22 is to first and foremost read the contract in detail. Secondly, Only My Share suggests asking for a break clause in the contract, if one isn’t already included. Naturally, the company also recommends that students take out rent arrears protection, to limit their liability to only their own share of the rent. By doing so, students are as protected as they can be in the face of continuing uncertainty ahead.

For more information, please contact Only My Share today on +44 (0) 204 579 5891 or visit https://onlymyshare.com/

Is a buying a Spanish ghost town the ultimate social distancing project?

Is a buying a Spanish ghost town the ultimate social distancing project?

by Louise Spain
  • Rural hamlets and unfinished developments provide plenty of choice for buyers looking for a project
  • CostaLuz Lawyers warns of the importance of checking legal and practical details before committing to buy
  • Planning permission, licences and zoning all need careful attention

The Covid-19 pandemic has made many city dwellers reassess their relationship with all things urban. In June and July 2020, buyer inquiries to Rightmove from those living in cities shot up by 78% compared to the previous year. The number of people considering properties in village locations, meanwhile, was up 126%.

It’s not just villages in the UK that are attractive to buyers looking to escape city life right now. According to the property experts at CostaLuz Lawyers, Spain has much to offer when it comes to escaping the pandemic, particularly for those looking to detach from urban life in a more substantial way.

“Spain is home to around 1,500 abandoned hamlets due to significant rural depopulation over the past couple of decades. These offer a fascinating opportunity for property buyers who want to opt out of city life and reconnect with the land. And with so many hamlets available, the prices can be really quite attractive.”

Keith Rule, www.costaluzlawyers.com

Rural depopulation is a big issue in Spain, where over half the country has a population density of under 12.5 inhabitants per square kilometre. Prime Minister Pedro Sanchez reports that, “Half of Spain’s municipalities have fewer than 1,000 inhabitants, and a large part of our territory is at risk of depopulation.” As such, abandoned hamlets – of ‘ghost towns’ can be found dotted across the country.

But buying your own Spanish ghost town isn’t just about ancient farmhouses that are slowly crumbling in idyllic rural locations. When the global financial crisis hit, a swathe of developers across Spain went bust, leaving housing projects of all shapes and sizes unfinished. Some have little more than foundations in place, but others are almost finished. Most are now owned by the banks that took them on from bankrupt developers. As the sites are too expensive to demolish, most are just sitting unfinished, with nothing having happened since workers downed tools when the financial crisis began to bite.

“There are various options available if you want to purchase multiple properties in Spain at a majorly discounted price. In most cases, you’ll be taking on a project rather than a completed set of dwellings, but for buyers who are looking for something unusual some of the opportunities are really interesting.”

Keith Rule, www.costaluzlawyers.com

The CostaLuz Lawyers team warns, though, that it’s important to examine both the legalities and the practicalities of your purchase before committing to anything. First and foremost, there are matters around planning permission, licencing and zoning to consider. Many rural properties, for example, may have been built without the correct permissions in place. This means you might be ordered to tear them down. Others will have restrictions in place on the scale of renovations that you’re allowed to undertake due to protections on the character or nature of the dwellings.

Zoning has its own quirks. You might have a country spa or a glamping business in mind, but if the land is zoned for rural use then you might find yourself needing to run a farm instead. Even residential use might be out of the question without keeping a few sheep or growing a couple of crops on your land.

In terms of practicalities, the CostaLuz Lawyers team warns buyers never to make assumptions. It’s all too easy to take utilities – water, energy, broadband – for granted, but some abandoned hamlets don’t provide access to all of these. Some don’t even come with the potential for such connections.

There are other risks too, so it’s essential to look at the property transaction from all angles. Getting seven or eight houses and various outbuildings for under €100,000 may seem attractive initially, but if the legal and practical details don’t stack up, the potential can quickly unravel.

“The final element to consider is your exit strategy. Owning a village that’s a major project might be your dream right now, but what happens if you need to sell it suddenly or unexpectedly? With an estimated 3.4 million unoccupied properties in Spain, it could take years to find another buyer. It really is essential to check every aspect of such a purchase before committing. That said, if you find the right property and enjoy a challenge, buying a Spanish ghost town might just be the ideal social distancing project.”

Keith Rule, www.costaluzlawyers.com

For more information, please contact CostaLuz Lawyers’ UK office on +44 1908 635 111 and speak with Keith. To speak with Maria in the Spanish office, call +34 956 092 687 or you can visit www.costaluzlawyers.es

Taylor Wimpey España reports surge in Brits seeking Spanish Golden Visas

Taylor Wimpey España reports surge in Brits seeking Spanish Golden Visas

by Louise Spain ,
  • Buyers with €500k to spend can pick up residency along with their property
  • Brexit pushing more Brits to consider the Golden Visa route into the Schengen Zone
  • Working from home on the terrace ‘infinitely more desirable’ due to pandemic

Leading Spanish home builder Taylor Wimpey España has reported a surge in enquiries from British families seeking Spanish residency through the country’s Golden Visa scheme. The firm believes that both Brexit and the pandemic are playing a role in the rise.

“A Spanish Golden Visa provides not just residency in Spain but also access to the rest of the Schengen Zone. It’s something that Britons haven’t had to worry about previously, but Brexit has driven a notable rise in enquiries from families seeking to use a residential property purchase to maintain access to the Eurozone. The fact that working from home on a terrace in Spain has become infinitely more desirable due to the pandemic is also likely to be pushing some families down the Golden Visa route.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

The Golden Visa scheme allows an individual investing €500,000 or more in either residential or commercial property to obtain a one-year resident visa in order to purchase a home in Spain. They must travel to Spain at least once during that year. Next, they can apply for an investor’s residence authorisation, which is granted for two years and can be renewed for a further five. After five years, the buyer can apply for a residency permit.

The buyer must maintain the property investment throughout this period/process and comply with a number of other requirements. These range from a lack of criminal record to having health insurance that can be used in Spain. They also need to have enough funds to cover the person applying and their family for the term of the residency.

Family members included in the Golden Visa scheme include the property buyer’s spouse, any children under the age of 18, any adult children classed as dependents for physical or mental health reasons and any dependent elderly parents.

“The breadth of the definition of ‘family’ under the Golden Visa is particularly generous. This is another reason why so many property buyers are keen to find out more about whether they are eligible and how they can access the scheme.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Sterling’s rise in value against the euro is playing into the situation as well, with buyers at the time of writing able to get significantly more for their money than they could at the start of 2021.

One interesting element of the Spanish Golden Visa is that the investor can split their purchase across multiple properties. They could, for example, purchase a home for themselves and one to use as a source of income.

Key-ready homes at Sun Valley, for example, at the Costa del Sol’s hugely popular La Cala Golf Resort, are available from €251,000 plus VAT. This means that a buyer purchasing two of the apartments, which come with panoramic golf and sea views, spacious terraces and use of a lovely communal pool, would be eligible for the Golden Visa scheme.

The same is true for buyers of more than one property at Pier 2, in Cadiz. Taylor Wimpey España’s Marc Pritchard reports multiple buyers at the development purchasing two homes, in order to transform them into one giant apartment, with flexible space that can be used for anything from home offices to guest rooms. Key-ready homes at Pier are available from €342,000. The properties enjoy superb views of Sotogrande’s marina, while the private, gated community also provides pools and garden areas.

Golden Visas in Spain were launched in 2013 and more than 24,500 were granted between then and early 2020, including over 8,000 in 2019 alone – a 22.6% increase on the year before.

“The Golden Visa scheme was conceived as a means of attracting non-EU foreign investment into Spain. It’s interesting to see that it is now serving the additional purpose of providing a route into the Eurozone for British families. This is certainly a key consideration for a rising number of our clients from the UK.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK you will need to call 00 34 971 706 972.

Balancing commercial and residential developments is key to keeping town centres alive post-pandemic

Balancing commercial and residential developments is key to keeping town centres alive post-pandemic

by Louise United Kingdom
  • Just 29% of high street addresses are retailers (Office for National Statistics)
  • 1 in 12 shops closed in 5 years to 2018 (Ordnance Survey)
  • Blending retail units with new homes is key to city centre survival (Fabrik Invest)

Property investment specialists Fabrik Invest have spoken out about the importance of balancing residential development in city centres with commercial premises in the post-pandemic world. City centres have been hit incredibly hard not only by successive lockdowns but also by the reduced footfall resulting from a far higher incidence of home working throughout the pandemic. According to Fabrik Invest, this puts an onus on developers and investors to take an active role in keeping urban centres alive.

“Our town and city centres were already struggling when the pandemic struck, with one in 12 shops closing in the five years to 2018. Yet town centres do so much to help communities connect. That’s something that has become infinitely more valuable as a result of the prolonged isolation of the pandemic. Developers have plenty of scope to help nurture our towns’ and cities’ growth and this needs to be a key focus moving forward.”

Steve Jacob, CEO, Fabrik Invest

By March 2020, just 29% of high street addresses were retailers. Squeezed salaries and the shift to online shopping have been two of the key reasons behind this, both of which have been significantly exacerbated by the pandemic. The closure of offices and the shift to students studying online has intensified the problem, due to the huge drop in the number of those passing through town and city centres. For retail units, footfall is everything

People’s changing preferences have also had an impact on town centres in recent years. While the pandemic has served to push people towards country living, that followed a boom in demand for city centre homes, which is likely to pick up once more as the vaccine roll-out continues and we look forward to a post-pandemic return to relatively normal life.

“People increasingly want everything on their doorsteps – to live within walking distance of excellent restaurants, a selection of shops and the best leisure facilities available. The relaxation of planning laws meant that many old office spaces could be converted into residential buildings, but we need to balance that with keeping commercial premises in urban centres too, as those are a key part of the reason that people want to live centrally.”

Steve Jacob, CEO, Fabrik Invest

The planning law relaxation allowed people with B1 office space to convert it into residential accommodation without the need for a full planning application, provided they stuck to national framework guidelines. The move led to a lot of unused office space being turned into homes and continues to do so to this day. Fabrik Invest regularly offers such developments for investment.

Bishopgate Gardens in Preston is a prime example of this. The office block, which had stood vacant since early 2019, is being converted into 130 one-, two- and three-bedroom apartments, with shared social spaces including a stylish lounge area, coffee pod café, shared working space, reception area with 24/7 concierge and show-stopping rooftop gardens on the eighth and eleventh floors.

Bishopgate Gardens will also be home to seven retail units on the ground floor, including a deli, barbers, beauticians and florist. Budding entrepreneurs to take over the high-spec shops, which face onto the development’s impressive plaza, are currently being sought.

“With commercial to residential conversions, there’s often plenty of scope for developers to provide retail space on the ground floor. This will be key to the long-term survival of our town and city centres as places where individuals can connect with local businesses and with the wider community. In the post-pandemic era, this will be more important than ever in keeping the commercial heart of our cities alive.”

Steve Jacob, CEO, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

Domestic student demand for rental guarantor services up 12%, reports Housing Hand

Domestic student demand for rental guarantor services up 12%, reports Housing Hand

by Louise United Kingdom
  • 30% of students housed in private rented accommodation (HESA)
  • Non-EU student enrolments up 59,000 (2019/20)
  • Student accommodation sector needs to expand while remaining affordable

It’s been an interesting couple of years for the UK in terms of its international student numbers. The government’s International Education Strategy has a target of hosting 600,000 international students by 2030, despite the current complexities of the Covid-19 pandemic and Brexit. Hitting the target would mean the industry’s economic impact reaching £35bn annually, making it an attractive aim.

The 2019/20 academic year was certainly a good one for non-EU student numbers, with enrolments shooting up by 59,000 students, taking non-EU total enrolments to 556,625.

So, what does this mean for pressure on student accommodation? UK rental guarantor service Housing Hand has been working with both domestic and international students since 2013, helping them to secure accommodation in their university town or city by acting as their guarantor. The market has changed a great deal since then, with a major boom in Purpose Built Student Accommodation (PBSA), although figures from Glenigan show that planning consents for such properties have dropped every year since 2017.

Nor are PBSA homes suited to all students. Many prefer to live in halls, while figures from the Higher Education Statistics Agency show that around 30% of students opt for private rented accommodation.

“The UK has an interesting spread of student accommodation, with some university cities suffering from a deficit of suitable homes and others a sizeable glut. The fluctuations in student movement patterns that the pandemic has created is further complicating this picture. However, the long-term view is a positive one for student numbers, particularly those from overseas. This means that the accommodation sector needs to prepare to house increasing numbers of talented young people over the years ahead and to do so in an affordable way.”

Jeremy Robinson, Group Managing Director, Housing Hand

Affordability is a key concern for many students and especially so for those without a rental guarantor. At a time when many parents and guardians have been furloughed, have lost their jobs or face the prospect of losing their jobs, signing up to guarantee a child’s rent becomes a far more dauting prospect.

This is one of the reasons that Housing Hand has seen such a sharp rise in the number of domestic students using its services. Between November 2019 and November 2020, demand from UK students increased by 12%. While international student numbers dropped over the same period, in line with trends across the sector as a whole, the long-term prospects remain bright.

“International demand for university education in the UK has necessarily been curbed by the pandemic and its associated travel restrictions but the longer-term outlook is one of growing demand. We need to ensure that appropriate accommodation is in place, therefore, for the growing body of students that the UK will be housing. That includes an emphasis on affordability, to ensure that young people can focus on their studies, rather than having to find several months’ rent upfront because they don’t have a guarantor.”

Terry Mason, Group Operations Director, Housing Hand

For more information please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/

Pandemic drives changes in landlord behaviour/buying patterns

Pandemic drives changes in landlord behaviour/buying patterns

by Louise United Kingdom
  • Investors increasingly seeking additional bedrooms and on-site co-working spaces
  • Outdoor space to remain at a premium over the longer term
  • City homes in particular being scrutinised by landlords looking for ideal amenities

Property investment company Fabrik Invest is reporting longer-term changes in landlord behaviour and requirements, as the continuing impact of the pandemic is felt across the UK’s private rented sector.

“There’s still plenty of interest from investors looking to become landlords. Indeed, the Bank of England putting banks on notice to prepare for negative interest rates in the next six months is doing much to fuel a shift of liquid assets into bricks and mortar. Many of our investors are already moving to do this. What’s interesting is the sustained shift in the types of property that they are seeking.”

Dale Anderson, Managing Director, Fabrik Invest

This shift in demand has put a spotlight on properties such as Bishopgate Gardens in Preston. Priced from £120,000 and due for completion in September this year, Bishopgate Gardens’ 130 apartments have been designed to deliver an exceptional living experience. Residents of the one, two and three-bedroom homes will have access to a shared working space (‘The Common’) and on-site coffee pod café, as well as a stylish lounge area and reception with 24/7 concierge. The show-stopping rooftop gardens on the eighth and eleventh floors, meanwhile, more than tick the oh-so-important outdoor space box.

It is the shared working space, as well as the outdoor areas, which Fabrik Invest has found that investors are increasingly focused on. Home-based working has flourished of necessity during the pandemic, but over the longer term it will continue out of choice for many.

“The increase in home working is driving interest in on-site co-working spaces like never before and it’s not stopping there. Many investors are now looking to put their cash into properties with an additional bedroom that can be used as an office. Landlords are adapting their behaviours and approach to the new normal.”

Dale Anderson, Managing Director, Fabrik Invest

It is city centre homes in particular that landlords are scrutinising through a new Covid-lens. People aren’t using city centres in the same way they used to. Many behaviours are expected to return to normal as the vaccine rollout reaches the masses. However, the fact that Covid-19 may well move from pandemic to endemic in the human population means that some changes will be for good. This means, according to the Fabrik Invest team’s experience, that landlords are hedging their bets by investing in homes with on-site facilities that make localized living easy. In Preston, Bishopgate Gardens’ seven ground floor retail units are a case in point, with residents enjoying easy access to a barber, hair salon, beauty shop and grocery store, among others.

Location-wise, it’s all eyes on the North West. Savills’ latest mainstream residential market forecast pegs the North West as leading the UK for house price growth over the next five years, projecting growth of 27.3% for the region (compared to 20.4% for the UK as a whole). This is already unfolding, looking at recent figures. Zoopla’s latest House Price Index shows that the highest house price growth since April 2017 is being led by northern cities, with Liverpool house prices climbing by 6.3% over the past year, followed by those in Manchester at 6%. But that’s not to say that landlords are looking in precisely the same locations within these cities that they were pre-pandemic, according to Fabrik Invest.

“In big cities like London, Birmingham and Manchester, we are seeing investors looking at areas further out, such as the home counties and commuter belt towns for London. Kent is a good example of this – it has the good transport connections for those who need to commute into London, as well as plentiful green space and more affordable prices than the capital. In Manchester, it is Salford Quays that is turning heads. Tenant demand is strong there and investors are racing to meet that demand.”

Dale Anderson, Managing Director, Fabrik Invest

As 2021 unfolds, all eyes will be on the UK housing market to see what happens after the stamp duty holiday ends. Ultimately, though, the country has a sustained imbalance between its supply of rental homes and the demand for those homes. With the prospect of negative interest rates also coming into play, demand from investors doesn’t look to be dropping off any time soon.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

Housing Hand warns of increasing unsustainability of using landlords to support non-paying tenants

Housing Hand warns of increasing unsustainability of using landlords to support non-paying tenants

by Louise United Kingdom
  • 700,000 tenants and landlords could be dealing with rent arrears by end of 2021 (LSE London/Trust for London)
  • Eviction ban well intended but fails to protect increasingly desperate landlords and letting agents
  • Clock is ticking for government to step in

UK rental guarantor service Housing Hand is speaking out on behalf of landlords who are suffering at the hands of the government’s eviction ban. The legislation has been designed to protect tenants who have suffered financial loss as a result of the Covid pandemic. However, in so doing, it is creating an increasingly difficult situation for many landlords. Some are facing not just losing their investment properties but their homes as well.

“The intentions of the eviction ban to protect individual tenants are excellent, but the situation unfortunately doesn’t take all those involved in the rental transaction into account. The financial impact of tenants who can’t afford to pay on landlords is devastating.”

Jeremy Robinson, Group Managing Director, Housing Hand

The clock is certainly ticking. According to research by LSE London and Trust for London, the number of private tenants in rent arrears in England could treble in the coming year. That could mean as many as 700,000 tenants – and their landlords – in financial difficulty.

Housing Hand points out that letting agents, too, are suffering Letting agents receive a percentage of a property’s rent as a management fee, but 15% of £0 is £0. This means that there is a limit to how long agents, as well as landlords, can continue to operate with a reduced income. Client Money Protect reported at the end of 2020 that lettings agencies were closing at a rate of ten per week. Housing Hand believes that around 4% of all letting agencies closed their doors for good during the year.

The eviction ban is currently due to run until 21 February but has the potential to be extended in line with continuing lockdown restrictions. Such a move would mean that landlords, and the letting agents whose businesses they support, could face further weeks or even months of financial struggle. For those with mortgage payments to cover, the situation is increasingly unsustainable.

“The government must stop using private landlords to house tenants who are unable or unwilling to pay their rent. These are difficult times for all concerned and a new solution is needed – one that supports all those involved in the rental sector.”

Terry Mason, Group Operations Director, Housing Hand

The situation highlights the value of professional rental guarantor services, which guarantee landlords will receive their rental payments, even when tenants cannot afford to pay. Housing Hand has covered £587,626,099 in rent to date, working with over 3,000 accommodation providers.

“Those without a guarantor company in place are likely to see landlords increasingly turning to their personal guarantors for payment over the difficult months ahead. It’s a role that parents often fulfil, but how many of those acting as guarantors are also finding that their income has been reduced or lost entirely? The government needs to do more to step in and prop up the private rented sector in these truly exceptional times.”

Terry Mason, Group Operations Director, Housing Hand

For more information, please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/

Pent up demand from British tourists ready to give Spanish golf sector a major boost

Pent up demand from British tourists ready to give Spanish golf sector a major boost

by Louise Spain ,
  • Buyers looking for golf homes with private outdoor space, pools and flexible internal areas (Taylor Wimpey España)
  • Single-family homes account for record-breaking 20.43% of transactions (Q3 2020)
  • Palma Tourism Board “confident” that British visitors will be some of earliest to return

Popular tourism destinations such as Spain have been hit hard by the COVID-19 pandemic, but hopes are high that pent up demand from British holidaymakers will provide a significant boost this summer.

Spain’s golf industry, in particular, is eyeing up demand from British golfers. The sector is responsible for 120,000 jobs (direct and indirect) and the generation of nearly €13 billion, including €777 million in direct income from golf courses and €4,640 million in spending by golf tourists. As such, golf is a major player in Spain’s tourism offering, with 1.2 million golfers travelling to enjoy Spain’s fairways each year (2020, obviously, being a notable exception).

“Think of Spain and you immediately picture sunny beaches, great food and wine and world-class golf courses. Being able to spend time on the fairways year-round is an intrinsic part of Spain’s appeal. Not being able to visit Spain and play has been distressing for all those who enjoy golf as a way to stay fit and healthy and to spend time outdoors in beautiful natural surroundings.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

British players are certainly missing golf – so much so that design and build firm Oakbridge Bespoke recently reported an increase in interest from clients wanting golf simulators in their own homes. Of course, even the fanciest of simulators can’t beat the feel of being out on the fairway, but it is hoped that British golfers won’t have to wait too much longer to do so. According to Pedro Homar, Director of the Palma Tourism Board,

“With the rate in which the UK is rolling out the vaccination, we are confident that the UK market will be one of the first to return to Palma… In terms of timings, we expect the UK market to return from around May onwards.”

Golf in Spain comes with a surprisingly affordable price tag. Indeed, the Golf Travel Centre recently worked out that the average Brit doing Dry January would save £343 from missing nights out (pandemic aside). That’s enough for a long weekend at the Costa del Sol’s stunning La Cala Golf Resort.

For many golfers, though, the odd weekend here and there just isn’t enough. They are looking for golf properties where they can play golf all year round, enjoying the lush greenery, sea views and abundant sunshine that are so good for mental as well as physical health. As such, many seek to buy golf properties that they can use whenever suits them.

The pandemic has, of course, impacted the kind of homes that golfers in Spain are seeking. According to leading Spanish home builder Taylor Wimpey España, buyers are looking for spacious terraces, communal areas and swimming pools as their top priorities (alongside access to first-rate golf facilities, of course). Open, flexible spaces within the home are also important, with many buyers now incorporating working from home in their plans for the way they will use their golf property. The option to practice other outdoors sports has also moved up buyers’ priority list, with socially distanced outdoor activities holding even more appeal than previously.

As in the UK, demand for rural and coastal area homes has increased, while more densely populated cities have fallen out of favour. Not only that, but buyers also looking for individual villas and townhouses, rather than apartments. The Association of Property Registrars, Movable Property and Mercantile of Spain report that the sale of single-family homes accounted for 20.43% of total transactions in Q3 2020 – the highest recorded percentage for this type of property.

“Single-family homes in quiet locations, with easy access to golf and other outdoor sports are experiencing strong demand right now. Buyers are looking for plenty of their own outdoor space, in addition to communal areas and shared pools.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

In the Costa Blanca, where prices increased by 2% in 2020 despite the pandemic, according to Fotocasa, it is newly built, private developments that are turning buyers’ heads. At Kiruna Residencial, for example, just one key-ready home remains for sale, priced at €191,000 plus VAT. A further development in the area, Kiruna Hills, has properties available off-plan, priced from €193,800.

The three-bedroom, two-bathroom home at Kiruna Residencial boasts a 50 m2 roof terrace, a 26 m2 garden and a further terrace of 14 m2. The development offers views of the spectacular Sierra de las Aguilas Mountains, as well as Elche’s Alenda Golf, in which the property is located. Residents also benefit from a communal swimming pool, an array of landscaped gardens, a supermarket and a club house. There’s even a bilingual English/Spanish school for families looking to settle more permanently.

The Costa del Sol is, of course, renowned for its golf courses and Taylor Wimpey España’s Green Golf has everything that buyers are looking for there. Available from as little as €299,000 plus VAT, the frontline golf townhouses face southwest to make the most of the plentiful sunshine. The three bedroom, three-bathroom homes, which are ready to move in to, have large terraces that are ideal for outdoor dining, and make up a private, gated community with communal gardens and pools at Estepona Golf.

With Palma’s tourism director ‘confident’ that UK holidaymakers will be some of the first to return to Mallorca, many golfers are also eyeing up properties there as both potential second homes and main residences. One popular development is Canyamel Pins, just a few minutes’ walk from the beach at Canyamel and the Canyamel golf course. The two- and three-bedroom homes, with have large terraces for enjoying the unbeatable Mediterranean climate, are available from €335,000 plus VAT.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK you will need to call 00 34 971 706 972.

How to buy a home in Spain safely during lockdown

How to buy a home in Spain safely during lockdown

by Louise Spain
  • British appetite for holidays and second homes in Spain remains strong
  • CostaLuz Lawyers walks buyers through safe online buying practices
  • Pre-foreclosure purchases deliver savings of up to 60%

The Covid-19 pandemic has done little to quell the long-term British love for Spain. In fact, the idea of lounging on a beach in the sunshine holds a great deal more appeal when it is so far out of reach. As Spanish tourism board officer in London, Javier Piñanes, recently pointed out:

“There is a strong desire to travel on the part of the British and they emphasize that Spain is the destination they want to travel to, it is their top destination for holiday.”

Nor is it just holidays that Brits are dreaming of during lockdown. Recently reported figures from Taylor Wimpey España observed an increase of 39% in website traffic during the first week of 2021, compared to the same week a year earlier.

But with travel restrictions in place that, currently, have no end in sight, how can British buyers turn their dream of holiday home ownership into reality?

According to CostaLuz Lawyers, with the right safeguards in place, it is perfectly possible to buy a Spanish property safely online during the lockdown. While buyers can’t visit the property and the local area in person, they can research to their hearts’ content online. Key to doing so safely is to engage an independent lawyer early in the process.  

 “The right lawyer can be invaluable in terms of helping you choose a Spanish property. They can help you to work with reputable, honest and reasonably priced agents, arrange a surveyor, check all required paperwork is in place and do the conveyancing and post-sale work. Not only that, but your transaction will be covered by the law firm’s professional indemnity insurance and title insurance, for added peace of mind.”

Keith Rule, www.costaluzlawyers.com

Locating the right agent through whom to buy is half of the battle. Plenty of British buyers have been burned attempting to buy property in Spain before now. The CostaLuz Lawyers team can attest to this. They have won almost 850 claims from Spanish property developers and banks, with many cases brought by buyers who paid substantial deposits during the pre-crash years, but never received a completed property. Many of these cases are still working their way through the courts now, some 10 to 15 years after the deposits were lost – in 2020, CostaLuz Lawyers won 51 cases for a total of 76 clients, despite the shutdown and reduced operation of the Spanish legal system for extended periods during the year.

These cases highlight how essential it is to find the right agent, which is something that an independent property lawyer can assist with. Not only that, but the right legal representation can also open doors to potential cost savings. CostaLuz Lawyers, for example, operates a service that connects British owners of negative equity homes in Spain – those who are facing foreclosure in the near future – with buyers in the UK. The service enables the seller and buyer to agree a below market value price that avoids foreclosure, keeping everyone happy (including the bank). In some cases, this service has seen buyers pick up homes for around 60% of the price paid for them back in 2007.

“Buying during the pandemic means finding new ways to view properties and engage with the purchase process. It can also deliver some excellent bargains. And what better way to finally celebrate the lifting of travel restrictions, whenever that may be, than to visit your new holiday home?”

Keith Rule, www.costaluzlawyers.com

For more information, please contact CostaLuz Lawyers’ UK office on +44 1908 635 111 and speak with Keith. To speak with Maria in the Spanish office, call +34 956 092 687 or you can visit www.costaluzlawyers.es