UK Property – Can I Build to Let?

Many an accountant, marketing manager, shop assistant or graphic designer is actually a wannabe property developer. The idea of creating a "forever home" that suits the most individual needs will always have a certain charm.

But sometimes, the drive to construct is not with the intention of personal use. There are potential investors who are looking to increase monthly incomings by building a property that can subsequently be rented out. Here, Return on Investment is key. 

UK Television programs such as "Homes under the Hammer" often see inexperienced property developers who have spotted an opportunity. In many of these cases, the sensible longterm option is to rent the property. This eliminates the need for fancy furnishings and clever finishing touches – the key to profit here is practicality and functionality. But in the real world, are these "opportunities" really advisable?

Well, Dawson & Associates have a great deal of experience on this matter – and we know that, as with all things property related, sound advice and research is a must! 

Can I make a profit with Buy to Let?
It is true that the brave independent property investor has indeed been rewarded on many an occasion. Surprisingly few people can envisage the potential that a run-down townhouse has and so, with just small aesthetic changes, a poor rental marketplace can soon provide significant wealth.

BUT... (for there is always a "BUT" when it comes to property)...
there are many, many potential pitfalls.

Of course, the intended property MUST always have undergone a detailed survey from a RICS regulated chartered surveyor. Renting a property incurs many responsibilities so you must be extremely confident that your tenants will be safe and secure.
And the area of the UK in which you are planning to invest plays a huge part in the level of profit that you are likely to make.

Rental prices vary greatly in the UK from North to South and East to West. And, as always, London is an independent economy playing to its own unique rules. It was recently reported that "big-money overseas private landlords" have monopolised the market within our capital, making things extremely difficult for institutional investors looking for Buy to Let ROI.

Property development is often an issue of timing. Those who bought, built and commenced a rental plan 10 years ago are now likely to be reaping the rewards of their investment.

For more information on how to make a sound property investment in London or other areas of the UK, contact Dawson Surveyors. Initial advice is provided free of charge. 01424 882263



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My Property Survey Detected Faults...

What do I do next?

This week's Telegraph raised an interesting question. The article, 'I'm selling my home. Do I have to tell buyers about a failed survey?', discusses the undesirable situation where one potential buyer identifies structural issues with a property. This, of course, leaves the owner with a moral quandary as the house is released back to the market for other potential buyers. But whilst sympathies can be extended, there really are only two options: fix it or own up!

Any non-disclosures of essential property information could leave you in hot legal waters as it is viewed as "unfair trading". Basically, as the seller you are under the same strict ethic code as anybody selling any other product. And so, if the product is faulty, you will be held responsible.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11491506/Im-selling-my-home.-Do-I-have-to-tell-buyers-about-a-failed-survey.html

So, what do you do? Of course, the first step is to get expert advice from a professional. Dawson & Associates can quickly ascertain the severity of your situation and will be happy to discuss your options with you, free of charge. With over 40 years of experience, there isn't much that we haven't seen before and problems are often not as bad as they first appear. In fact, we say that "there are no problems, only solutions".

After a quick chat we can visit your property and we'll either provide a detailed report of what is required or, if you already have a copy of this from your previously interested buyer, we can put a plan-of-action into motion. Often, with some quick work and clever solutions, that original sale can be salvaged with little delay or inconvenience.

Over our years in the business, we have secured one of the best task forces in the UK. Therefore, not only can we provide the immediate survey requirements but also the construction team to fix or improve the property within budget. We will also be able to advise you if there is potential to make small changes that will increase the value of your home.

We can provide thorough and accurate Building Surveys, Party Wall Awards, Property Design, Construction Management & Legal Services for your property in the UK. Be assured that a team of professionals are providing the best possible results from your UK property investment/ portfolio.

For more information, visit www.dawsonsurveyors.com

What Exactly is a Structural Survey...

... and why is this different to a home buyers report?

There are several different types of structural surveys available for home buyers. It is important to understand the different types in order to gain the information that you need and avoid any unnecessary costs now and in the future.

WHAT SORT OF SURVEY SHOULD I HAVE?

A ‘Home Buyers Report’ comprises a more detailed survey including an indication of the value of the property and to note any major issues which are openly visible at the property.

The most informative study is a 'Building Survey´ but this is often confused with a ‘Structural Survey’. Building Surveys are carried out by a registered chartered surveyor and comprise an in depth study of the entire property including walls, floors, tiled & flat roofs, damp‐proofing, chimneys, lofts, basements, windows & doors, electrics & plumbing, and inform of you of all possible issues or future costs that may be associated to the property in its present condition plus offer advise about how to rectify these.

A specific 'structural survey' is normally only commissioned to address specific defects in the building’s fabric, i.e. cracks, settlement, subsidence, etc. These elements are covered within the building survey.    

Depending on the age and condition of the property in question and your plans for the future
of the property, it is possible for your surveyor to help you to determine which kind of survey
you will require. Older, Listed or unusual properties will benefit most from a full building
survey and also timber structures or properties which you plan to refurbish or extend, in order to avoid any hidden surprises and sometimes also help you to negotiate a better sale price.

WHY DO I NEED A SURVEY?
Property is generally the largest financial investment that we make, so it is important to insure that you have all of the facts to hand when considering a purchase and protect your
investment. Unless you have experience in building or construction, a professional survey will give you all of the information that you need to know about your property in advance of
buying so that you are in the best position to decide if this is the right property for you and
your investment.

At Dawson Surveyors, our surveying services will give you the assurance that you need when considering a purchase, from the very large to the very small. We can offer you advice about which type of survey would suit your needs best and also discuss any project ideas you may have. We offer a free consultation service which can help you begin. Please visit our website http://dawsonsurveyors.com/surveys.html or email us

Who is the RICS ?

The RICS (or Royal Institute of Chartered Surveyors) is an independent professional body that regulates construction and property professionals in the field of surveying to promote and enforce the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. www.rics.org

The headquarters of the RICS was founded in 1868 and is still based in London, receiving its Chartered status in 1930 and achieving its “Royal” designation in 1946. Today there are 14 regional offices and affiliates in 146 countries. The institute is dedicated to representing its clients, businesses and members worldwide in the support of professional and ethical developments, with expertise covering property valuation and management; the costing and leadership of construction projects; the development of infrastructure; and the management of natural resources, such as mining, farms and woodland; from environmental assessments and building controls to negotiating land rights in an emerging economy.

Dawson & Associates are proud to be one of the 118,000 registered professionals and qualifying members / businesses entitled to call themselves Chartered Surveyors who use the letters MRICS after their name to indicate that they have been approved to work in the industry and uphold the strict professional standards and codes.

From projects new to old,  surveyors perform a much needed role assisting clients and businesses alike to purchase, reform and construct their properties. Dawson & Associates are a RICS (Royal Institute of Chartered Surveyors) regulated practice, which means that they always maintain the high standards required by the regulatory body and are able to provide structural reports, building surveys, home buyer reports, schedules of condition and dilapidation and valuations and they also have in-house design, build and management teams. And with ongoing studies, Dawson & Associates ensure that they keep up-to-date with current technologies and legalisation (referred to as Continued Professional Development.) 

The Dawson & Associates senior personnel are highly skilled with extensive experience in all aspects of property surveying, design & management.  Please visit the website http://dawsonsurveyors.com or email at enq@dawsonsurveyors.com for further information, and/or your no obligation consultation.

Listed Buildings. Do You Know What You’re Letting Yourself in For?

As a RICS accredited Charter Surveyor with more than 40 years of property experience, Dawson & Associates fully understand the Listed Building in all of its complexity. In general, they do provide a little more character than our modern box-like property designs. Generally, they also provide a greater level space. But not only is the listed building often much older and therefore in need of more maintenance, but there are certain Listed Building statutory obligations that you may not be immediately aware of.

http://www.dawsonsurveyors.com/listedQuote.html

Before purchasing a Listed or Period Building, please do seek professional advice to be sure that you are absolutely aware of all of your environmental and build responsibilities – especially if located in a conservation area!

In addition, the banks may not be encouraging when you explain your out-of-the-box preference by not choosing the standard purpose-built box-building, that they tend to prefer. The corporate high street banks perceive brave forayers who venture into the unconventional property market of listed or period buildings as a limited breed and therefore resale potentials are lower – ergo the security of the finance loan is endangered.

Of course, it doesn’t mean that you won’t get a mortgage. It may just be a little trickier and, again, a thorough property survey will help to justify the purchase choice and security.

One more extra consideration for a Listed or Period building, may be the difficulty of insuring it. Here your insurer will almost certainly insist that a professional has surveyed the property – and this is for your own protection as well as theirs.

For example, Michael McGinty at Swinton Specialist Home recently said in an interview with the Telegraph, "If you're buying a thatched cottage, [the bank] may want to know when the thatch was last checked, and what measures you have taken to prevent fire. Some insurers may cover listed properties, but the older it is, the narrower your choice."

Basically, Dawson & Associates advises “GET ADVICE” before you set your heart on a listed or period property purchase. We can easily identify a dream property – just as easy as we can spot a property that will soon become a nightmare. If there’s extra work that is required to get the building safe/ habitable/ insurable, we can help you to put a price on it and we can recommend a reliable team of workers who can get the job done with minimal stress.

… please do contact us for more information. Our initial consultation is free. http://www.dawsonsurveyors.com/listedQuote.html

UK PROPERTY PRICES and trends 2014-2015 – An overview

If you are to make a smart property investment in the UK in 2015, Dawson Surveyors recommends careful consideration of the UK property trends during 2014.

The good news is that during 2014, the whole of the UK showed a rise in annual property prices, even during the typically quieter month of December. Following a notable rise in house prices of 8.4% during 2013, 2014 has also proved to be a year of improvement with house prices increasing on average by a further 7.2% (Nationwide building society's House Price Index).

Increases do of course vary from area to area, with London out-shining all other areas with a massive increase of 17.8%. The north of England, Northern Ireland, Scotland and Wales have shown mixed success with regards to property price increases during 2014, although average growth does continue and new developments are still emerging. Areas that remain of interest for property buyers are Brighton, Bristol, Cambridge and St.Albans (Savills report Q3-2014). These areas have shown a steady increase of 51% over the past decade.

Thanks to ongoing government investment however, London continues to grow as an international city for business and culture. The average London house price is now over £400,000 and there are emerging boroughs still to consider if you are looking to invest.  Newham saw the largest rise in property prices during 2014 – a huge 29% which must surely be attributed to the connection to the O2 arena in Greenwich. 

The permanent cable car ‘attraction’, the Trans-Thames-Shuttle, sponsored by Emirates Air Line at a construction cost of £60 million, was intended to create a much needed commuter link for locals. However, according to the Daily Mail this week, there are actually zero commuters using this service regularly yet the growth in this area seems to indicate that it is creating excitement in the property market locally even 2 years after the cable car was opened.  

Conversely, the neighbouring London borough to Newham, Barking & Dagenham, has interestingly been calculated as London’s least expensive borough on average for 2014. So, as is often the case with trends, the idea of spreading outwards from the city centre could prove to make a good property investment in London this year. 

If you are considering a property investment this year, please remember that a property survey is an essential part of the purchase process. Contact our offices on (0044) 01424 882263 to book a surveyor visit today!

Statistics from http://www.nationwide.co.uk/about/house-price-index/headlines