Leasehold Extension

I have an article in today's "Daily Mail"on lease extension.
It's worth looking at as it covers the key issues and explains why, in come circs, it can be better than buying the freehold.
Unfortunately, there is no link to Mail articles, so you will have to go out and buy it.
In the next week, I'll put something on this on the main site www.lettingfocus.com in the articles section.

Factors Driving Buy to Let - Migration

The biggest factor driving population growth is net inward migration into the UK with anywhere up to 500,000 new immigrants coming into Britain every year. And for them renting is the natural default option.
And despite the government sounding a tougher note on this recently, I can't see it stopping any time soon because economists have said it keeps inflation down by as much as between ½ and 1 per cent. And that’s an important thing for the Government – of whatever political hue.

Factors Driving Buy to Let - Housing Supply Shortages

Obviously, we have long known that housing supply is not keeping up with housing demand and I don’t see this changing too much soon. Kate Barker’s report for the government showed just how far behind the UK is at providing enough accommodation for all the people who want to live here.
And the UK population is growing rapidly – having just passed the 60m mark a few months ago. There is basically not enough housing to meet this increasing population.
This factor on its own will push up house prices beyond the reach of many people who will then be forced to rent.
In addition to the overall lack of supply of housing, the wrong kind of properties continue to be built as planning policies and constraints mean that developers will build more apartments - whereas what will be needed in the future as a result of demographic changes are more family homes.
In most areas in our main cities capital growth on houses (and rental yields) are now beating that on flats and I think this will continue to be the case in the next 3 to 5 years at least.

Half of all UK property could be second homes or rented out by 2026

It was nice to see today's London "Evening Standard" featuring my quote that half of all UK homes could be second homes or let out to tenants in 20 years. (Page 34 of the Home and Property Section, if you are interested.)
Actually, to be honest I think this is probably a bit on the high side. I think the actual figure will be more like a third... but a half is not an impossible figure.
There are 8 main factors that will drive this process forward and I will look at each of these over the next week or so in this blog.
But before I start, do I think it is a good thing for society?
No, not really.
Ideally, it would be good if everyone could have a chance of owning their own home.
But the economic forces that exist today are I think unstoppable unless there is a major turn around in government housing policy.
So, keep checking the blog each day as I start to look at the forces that are driving buy to let and growing second home ownership.

Why You Should Think Twice Before Putting Rent Up

Buy to let investors often ask me is it worth putting the rent up? My view is if you have got good tenants who are paying only slightly under market rent then the answer is "No" If you put it up, chances are they will leave - which will result in more costs for you in finding new tenants and carying out repairs and redecorations. There may also be a void period. Why give yourself the hassle.

Buying Off Plan

If you are a buy to let investor looking at off plan, bear in mind that most lenders now want you to put in at least 25% equity. Also, before you go ahead, bear in mind that most of the smarter more experienced investors I know are now rarely buying new property now. They see better value in existing build! So do I.