Richard Carr talks about 3 things you need to know about the UK housing market in 2018

Since the Brexit referendum has happened, the UK housing market has been experiencing some instability in certain areas. It has been facing major difficulties in the recent months in properties at the higher end of the spectrum and in certain geological areas. This, in turn, has resulted in uncertainty from buyers. Since 2016 the average price in the UK has gone up to over £220,000 per dwelling. Although this pricing has gone up between 2012 and 2017, the earnings growth hasn’t corresponded to this, making it extremely difficult for people to buy houses. Richard talks to us about 3 important aspects of the housing market that you could take advantage off.

A fixed rate mortgage might be the best option for you

• You remain stable for consecutive years.
• Can be used with buy-to-let properties too.
• More properties are being built and are expected to come to the market this year.
• First-time buyers can take advantage of schemes like Help to Buy to further augment choices.

Buy-to-let is still a viable option for investors

• Tax reforms left uncertainty for buy-to-let investors.
• Liverpool has increased in rents at 6.2% PA.
• Nottingham increased in rents at 6.2% PA.
• Cardiff increased in rents at 6% PA.
• Southampton increased in rents at 5.9% PA.
• Greater Manchester increased in rents at 5.9% PA.
• University towns remain a good place to invest in buy-to-let.

Affordable homes are available
• Local councils are working with private developers to make housing assessible for all.
• Shared ownership allows you to part-own or rent part of a home.
• Government schemes including Help to Buy.
• Areas such as the west of the UK are cheaper to live.
• Stamp duty has been abolished for first-time buyers if the property they are buying is less than £300,00.

 

 

 

Richard Carr talks to us about the current property market in London

Some years ago, London property investment was perceived as very stable. For example, back in 1998, the average price of the property was £115,00. 20 years later in 2018, that residential price would be somewhere around 300% higher. But just because something is dependable, it doesn’t make it resistant to change.

In 2017 experts started warning about a UK housing market downturn in London within the coming year, which was demonstrated in the last half of the year and has continued during 2018. This is led to a lowered buyer demand and house prices flattened. Mortgage lender Halifax said that London housing prices are dropping at their quickest rate in nine years. Prices have dropped 3.2 %, which is actually the biggest decline since the financial crisis. But from property investors perspective Richard Carr explains that this is a good time to buy. So the question is, what has caused these changes?

UK leaving the EU
• Inflation rose to around 2.5 %.
• Brexit impacted the housing market the most
• Affordable housing has plummeted
• People are not selling
• Home-owners are buying abroad

Stamp Duty Land Tax
• Has become 2.3 % higher over the past 5 years.
• Is on a constant rise.
• London is a prime area for high stamp duty.
• Has made buy-to-let housing investment less attractive.

So, is it a good time to invest in property?
The key to succeeding in the housing market is staying ahead of the market as much as possible, it’s about knowing when and where to buy and to sell. There are some signs that point towards what could happen in 2019, but to go beyond, it takes a real expect to understand all the factors affecting the housing market right now. No matter your situation, whether it’s buying your first home, or buy-to-let, or even considering buy-to-leave properties, all these routes need experts to advise. See what Fortitudo has to offer today for your current situation, to identify the right opportunities for you. It is my opinion that when we exit the EU there will be a boom in property and the UK, this is because many large corporations have held back on their capital expenditure, we will become the Hong Kong of Europe which will lead to a flood of inward investment.

Richard Carr’s top tips for aspiring first time buyers

Buying your first home can be one of the most daunting decisions to make in ones lifetime. To rent or to buy is one of the key questions for many. The whole process is long and complicated and can seem initially fairly confusing to younger generations with no guidance, but it doesn’t have to be with the help of Fortitudo.

Richard Carr, Chief Executive for property development company Fortitudo, specialises in properties for first time buyers. Richard would like to share his top 5 tips for first time buyers looking to get a foot onto the property ladder.

1. Look into schemes and mortgages with the lowest rates
Over time the government has tried to make home owning more assessable for first time buyers with many different schemes. The Help to Buy scheme is part of most of Richard Carr’s developments, and allows you to purchase properties with a deposit as little as 5%. It aims to make more mortgages accessible for those who cannot afford a large deposit. The Help to Buy ISA pays first time buyers a government bonus, which is interest free for the first 5 years, leaving you enough time to get you on your feet!
Low interest rates with long term fixed rate are hard to come by, that alone is enough to put some people off. Also household circumstances can change, and no one wants to be in a contract that they cannot afford after 5 years. However many banks are starting to realise that this is a problem for many. Recently Virgin Money Mortgages have lowered there interest rates and increased their fixed rate to 10 years, in time many other competing banks will do so too!

2. Know your area
A good location is key, it can make or break your first home, so research needs to be done imperatively. Learn about the job opportunities that could arise, see what schools are in the area, check out the leisure and hospitality facilities. Visit the area at different times of the day; find out how busy your morning commute could be. Test out transport links – how long does it take you to catch a train or a bus? What bus stops are nearby? The number one rule is: never commit to an area unless you could imagine yourself living there.

3. Save your pennies
We all know that buying a home for the first time is a huge financial commitment. Don’t forget that its not just the deposit that you need to save for. Make sure you have thought about all the added extras that come with buying a property; mortgage arrangement fees, solicitor fees, council tax, utility bills and insurance. This might mean tightening the purse away for a little while. Try and cut down of day-day spending and invest into a Monzo card, which can help track your spending and saving. Did you know: the average Brit spends over 2,000 a year in coffee shops!

4. Check your credit report
These days your credit report is more crucial than ever when it comes to being accepted for a mortgage, as lenders will want to see a squeaky clean history of previous borrowing. Clearscore offers a free credit check and tracker and gives you tips and tricks on how to improve your rating, to get the most suited loan to you! 

5. Love move in day
You’ve done your research and saved your money – now is the time to enjoy your new home and make It your own. Packing and moving boxes may feel like a bore, but moving day is a time for celebration! Keeping up spirits with on the day will be sure to get you through. Once the hard work is all over, why not head over to your new neighbours with a glass of bubbly. It’s time to make the most of your very first home.

Property Vs Pension investment – this weeks debate

“Assuming that property prices continue to increase over the coming 20 years in the way they have in the past 20 years, a property of today’s average value of 235,000 will be worth 1 million by 2038.”

Says James Davis the founder of letting agent Upad. Jamie has 20 buy-to-let properties and his confident that they will see him through his retirement. Property investment is a secure way to build your retirement fund. Even with the worst-case scenario of not making any monthly profit from your property (which you will), you will still have a significant amount of capital appreciation.

But what type of person are you?

Property and pension are two completely different entities. Depending on circumstances, lifestyles, strategy and risk, depends on which one a person may choose. As an investor you need to ask yourself how much disposable income do you actually have? When purchasing a property, you need to think about the initial costs and post-cost which refer to the renovations and management fees. Securing these investments are time consuming which can be enough to put someone off this strategy. With pensions you can save for a retirement through achievable monthly payments over a much longer period.

Property Investment

• Property will almost certainly over perform with return on investment
• Beware of stamp duty and taxation on buy to let income
• Government schemes available to get you on the property ladder like Help to Buy
• You can cash in when you want and at any time
• Monthly income, without waiting until retirement age
• Increased risk and time consuming with managing the properties
• House pricing keeps rising
• You can re-mortgage to reinvest
• Property is a tangible asset, which gives people comfort and security

Pension Investment

• Tax-efficient way of saving, government offering tax relief on pensions
• Many different ISA’s to help you gain pension interests
• Pensions are not enough to live on throughout your retirement period
• You will need to wait till the requisite age to get hold of your funds

Richard Carr house purchase

Richard Carr discusses how Help-to-Buy could get you on the property ladder

Over recent years it has become increasingly difficult for first-time buyers to find a house and secure a mortgage that is feasible. First-time buyers are being priced out of the property market in around the UK, where nine out of ten houses are too expensive for locals, according to reports. However with government schemes in place like Help-to-Buy, it has made it possible for younger generations to own their first home. 

Help to Buy: everything you need to know

Are you trying to get onto the property ladder? You could be closer to saving your deposits than you think, move into your new home, with just a 5% deposit using Help to Buy. You no longer need a large sum of money sitting in the bank to buy a property. Keep reading for the latest initiatives and ideas to help you get on the property ladder in the UK.

Help to Buy is a popular Government encourage scheme that gives you an interest free loan, aiming to make more mortgages more accessible for those who cannot afford a large deposit. It is becoming increasingly difficult for the younger generations to get themselves onto the property ladder or even for existing property owners to move up the property ladder. But with government schemes in place like Help to Buy, can give you the right steps to owning your own home The Help to Buy ISA pays first time buyers a government bonus, which is interest free for the first 5 years, leaving you enough time to get you on your feet!

About the Help to Buy scheme
• A deposit as small as 5 % is the minimum required
• Available on most of Fortitudo developments in England up to £600,000
• Help to Buy loan is only available on new build properties
• No household annual income limit
• The government will lend you an interest free loan up with 20 % of the property value for five years. This equity loan can be repaid at any time, or on the sale of your home.
• You will only need to secure up to 75% of the mortgage
• Help to Buy also gives you direction on getting you some of the best mortgage rates at the time

How to apply?

Check your eligibly for your first home with Help to Buy

Which of our property developments are likely to have Help to Buy?

Fareham
Petersfield Road, Havant 
30 Tower Road,  Branksome
West Quay Road
• Labour club, Wimborne Road
• Dolphin Carpark
101 – 107 Commercial Road, Poole  

Richard Carr in the Archives: Allied Leisure

Richard Carr is a former business owner and entrepreneur, with one of his first business ventures being with Allied Leisure.

About Allied Leisure

Richard Carr Scoops Marketing Award for Allied LeisureBorn in 1983, Richard Carr built a business of Counter Service Fast Food Restaurants predominately in London and the M3 corridor.

The business was floated on the USM in 1987 before being sold to Grand Metropolitan for £13m in 1990 and re-named Allied Leisure PLC.

Richard left the company in 1994 to pursue a career in private ownership; this was after the business had been listed on the London Stock Exchange.

Allied Leisure scoops marketing award

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Richard Carr in the Archives: Tycoon gets £163,000 rise

During the early 1990s Richard Carr was a regular on the front page of the Evening Echo as a result of his business ventures. In late October in 1991, he was pictured on the front page under the headline ‘Tycoon gets £163,000 rise’.

“I’m worth every penny”

Richard Carr Tycoon gets riseWas Richard Carr’s response. Described as a flamboyant local business tycoon, the paper reported that his pay rise took his annual salary from £99,000 to £262,000.

Richard, who are the time was running his self-made business Allied Leisure, left school without a single O-level and went on to run a major public company employing over 1,000 people.

He defended his pay rise, telling the Echo: “I am very good value and worth every penny. I am not in the slightest bit embarrassed about the rise.

“Company executives in this country are grossly underpaid. I believe in paying people well and that goes for all my directors and staff.”

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Richard Carr in the Archives: Battle for Cage and Zoo

Richard Carr operated in the nightlife economy for a number of years, owning and running a variety of nightclubs and bars. He also created the hugely popular ‘Slinky’ brand, which saw huge events hosted across the globe with some of the world’s biggest DJs.

Carr wins Cage and Zoo battle

Richard Carr Battle for Cage and ZooRichard Carr made the front page headline of the 1992, March 3rd edition of the Evening Echo after the police dropped their objections to his £2million nightspot.

He won his battle to build one of the country’s biggest nightclubs in Bournemouth despite the Police’s fears that it may lead to trouble in the streets.

However, Bournemouth magistrates gave Richard Carr the go-ahead to create the 2,000 capacity club in the town centre. Although the police had dropped their objections they told the court that if trouble ensued, they would object to the club renewing its operating licence.

A £2million project

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Richard Carr in the archives: Allied Leisure on the rise

Allied Leisure was one of Richard Carr’s first business ventures and one that saw him combine fast food counter restaurants, bowling alleys and a leisure complex.

Looking back at the company’s rise under Carr, we look at an archive article regarding Allied Leisure’s profits rise.

Entertainment company announces 20% profit increase

Richard Carr Allied Leisure on the rise

Richard Carr in the Archives

Despite announcing 20% profit increases, Richard Carr explained that the rise was below expected at the time and that plans to expend the business into Germany have been shelved for the moment.

Allied Leisure, which ran a ten-pin bowling alley, nightclubs and theme pubs, including the Tower Park complex in Poole, revealed pre-tax profits of £3.1 million compared to £2.6 million the previous year, a 19% rise.

Allied Leisure adapting with the times

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Richard Carr aids Dorset businesses

In the latest of our articles looking into the working career of Richard Carr, we look at a newspaper article highlighting the rise of one Carr’s first business ventures, Allied Leisure.

Richard Carr now operates as a commercial and residential development consultant for Jacob Carr Homes Ltd. He uses his expertise and knowledge of the industry to achieve planning permission for his employer’s clients.

Examples of his planning grants can be found on his website under the ‘Development’ page.

Richard Carr aids local firms

Richard Carr aids local firms

Carr aids local firms

In the early 1990s, Carr was Chairman of Poole based Allied Leisure, a leisure business which comprised nightclubs, bowling alleys and fast food counter restaurants.

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