Buy-to-let investments down 80%
You often hear that ‘property is the safest investment’, and many consider rental opportunities as the gold-standard of investing – yet the latest figures show an 80% drop in UK buy-to-let mortgages. So, why are landlords turning their backs on what has traditionally been a cornerstone of property investment?
Many would-be landlords worry that they will be faced with difficult tenants, nightmare evictions and expensive maintenance bills, which are substantial risks in return for often modest profits. This, in addition to the numerous financial changes made to buy-to-let investment, have changed the entire UK rental landscape for 2018:
IMLA, the mortgage lender trade body, report that new money invested in buy-to-let properties has fallen by 80% since 2015
Property Hub have named their top investment hotspots for the year, and they’re all up North! As property prices in London continue to slow, cities such as Manchester, Liverpool and Leeds are enjoying record levels of investment and interest.
Tenants are no longer liable for any referencing or renewal fees, and the government is launching an Ombudsman service to mediate tenant-landlord disputes
How else can I invest in property?
If you’ve decided against a buy-to-let property but are still looking for investment opportunities secured against UK property, you’ll be pleased to know that there are other options. Sign up to Kuflink today for exclusive deals offering up to 7.2% interest pa gross* without all the hassle!
Invest from just £100
Earn up to 7.2% interest pa gross*
Interest paid monthly
Secured against bricks and mortar
Invest for typically 3 to 12 months
No account management fees
FCA Authorised
*Capital is at risk. Rate correct as of March 2018. Independent financial advice is recommended.
5 Key Points from the Spring Statement
Chancellor Philip Hammond gave the first ever spring statement this Tuesday, which outlined key financial forecasts for the year ahead. Kuflink was delighted to learn that UK technology is being hailed as one of the most promising avenues for continued economic growth, with the Chancellor stating that “our best days lie ahead of us”. Key points from the Spring Statement included:
The Spotlight Was Firmly on FinTech
In his opening address, the Chancellor spoke about the UK’s ‘world-class’ technology, including apps such as TransferWise. This shows just how impressive our home-grown FinTech innovations are and sets a great tone for the future of Kuflink!
The UK is preparing for a digital economy
One of the Treasury’s most recent consultation papers suggested that, in light of the clear move towards a cash-light economy, we may soon say goodbye to 1p and 2p coins. There will also be research conducted to ensure that those who favour cash are not excluded by the fast-approaching digital economy.
Support was announced to help struggling businesses perform better
In an economy where small businesses face many challenges, the Chancellor announced a review to establish how those in difficulty can learn from their more productive counterparts. To further support business growth, the 2022 business rate review has been brought forward to 2021.
New housing initiatives announced
The last full budget announcement centred around how the government planned to deliver more affordable housing, and the Chancellor was pleased to announce three new housing initiatives in his speech. Projects for the year include investment in to the Housing Infrastructure Fund, and a further £1.67 billion made available to fund new homes in London.
2018 growth forecast raised to 1.5%
Overall economic growth forecasts have been increased from 1.4% to 1.5%, which Hammond described as ‘a light at the end of the tunnel’.
Kuflink are proud to be part of the UK’s technology boom! To find out how we combine our expert financial knowledge with cutting edge technology, sign up to our award-winning online investment platform today!
Are Ifisas worth the risk?
Innovative finance individual savings accounts (Ifisas) were introduced two years ago to allow investors to hold more unusual assets such as peer-to-peer (P2P) loans, loan notes and crowd-funded unlisted corporate bonds within a tax-efficient wrapper.
Top tips for transferring your ISA
If you’re in search of an ISA with higher returns for the 2018/19 tax year, then why not consider a transfer to Kuflink’s IF-ISA?
Should Young Home Owners Buy New Build Homes?
For young buyers, getting onto the property ladder can be a long and difficult struggle. Just saving for the deposit alone can be a trying feat, taking the average first-time buyer 8 years. Then there is the process of finding the right property, negotiating on the asking price, and dealing with legal matters – all of this assuming the house-sale does not fall through.
For this reason, new builds can be very appealing for young homeowners, because they can select a house and plot without fear of the seller pulling out. But are new build homes really all they are cracked up to be?
The Pros
Energy Efficient: New build homes are well insulated, have double glazing, and new central heating. As such, they typically have a higher EPC rating and are warmer, as well as cheaper to heat.
High standards: Incorporating modern safety concerns, new builds are constructed to a high standard, providing buyers with peace of mind.
Low maintenance: Completed just before a buyer moves in, everything in a new build home has never been used before. This means that there is little maintenance required.
10-year warranty: Guaranteed by the National House Building Council (NHBC), new builds in the UK have a 10-year warranty. This covers structural issues and major repairs, so there are no costs to buyers if something goes wrong.
Personal style: One of the biggest appeals of a new build is choosing the finishes and styling. You can select everything to suit your tastes, meaning there is no worry about having to redecorate or carry out major work – it is move-in ready.
No onward chain. There is no need to wait for the buyer to find a new home. Instead, as soon as the home has been built, you can move in.
The Cons
More expensive: Often, new properties carry a higher price tag than older properties of the same size and calibre. Being brand new, they carry a premium.
Characterless: New builds are often described as ‘boxy’ as they lack any traditional features. However, this depends on personal preference.
Smaller: Builders want to fit as many plots on a piece of land as possible. As such, rooms and gardens can be smaller than in older properties.
As you can see, there are more pros than cons to new build properties. However, no two buyers are the same, so consider what you want from your new home to help you decide if you would prefer a new build or an older property.
This is a guest article, written by Allsop.
Should You Consider Investing in Property Within Southern England?
When you’re looking to buy a house, choosing the location where you want to move to can be pretty challenging. Today’s housing market isn’t as booming as it once was. Therefore, it’s crucial buyers are smarter about where they do invest their money.
The South of England has proven to be a great area of the country to buy a property. Although London will obviously be the most expensive area to invest in, there are some areas which offer some pretty awesome deals. Here, you’ll discover why location matters when you’re investing in property and which areas you’ll want to consider when looking for your next home.
Why does location matter?
The location of the property is extremely important. It not only determines the cost of house prices, but it also determines quality of life.
How much crime is in the area? How much work is available and are there local schools, doctors and hospitals nearby? These are just some of the things you need to consider when looking at the right location to invest in. Buying a property is a major life decision so you obviously want to be 100% certain you’re investing in the right place.
If you are looking to invest in property within the South of England, one place you’ll want to consider for example, is Bristol.
What does Bristol have to offer?
On the border of South Gloucestershire and North Somerset, Bristol is a city with plenty to offer. Although it isn’t widely recognised, the city has actually ranked as the number one place to start a business. Its business opportunities are fantastic and even the cost of business premises is considered to be really affordable. So, in terms of business investments, Bristol is an excellent place to start up.
It’s not just business which draws people to this great city. The quality of life is also really high. It was even voted as the best place to live in the UK in 2017. So, you can be sure you’ll enjoy living in this vibrant city. You’ll find a range of low cost, high-quality properties available locally through companies such as Andrews.
Bristol is just one example of why southern England is the place to invest in. The quality of life is fantastic, there’s a wealth of business opportunities available and you’ll also find plenty to see and do in whichever area you choose to settle down in.
This is a guest article, written by Andrews.
ISA Season: Get More for Your Money
What’s the first thing you think of when somebody mentions an ISA?
For most people, it’s the tax-free benefits! Although this is a fantastic feature, it’s not the only benefit you should consider when choosing your ISA – the returns, terms and flexibility can vary greatly.
The wide range of ISAs can get a little confusing, although as some accounts offer in excess of five times the average interest rates, it’s definitely worth checking that you’re making the most of your tax-free allowance. The good news is that it’s simple to switch accounts if you find something better!
Think of your ISA in the same way as a new relationship – it’s a big commitment and you may be tied to your decision for several years. With this in mind, the Kuflink experts have put together five top tips to ensure the next ISA you meet is ‘the one’!
What’s your type?
As the saying goes, each to their own! There are many different types of ISA to choose from, including Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, Lifetime ISAs and Help-to-Buy ISAs. Each ISA offers a unique set of features and benefits, so whether you’re saving for a specific purpose or just want to ensure you’re getting the best return on your money, it’s important to do your research.
There will be highs and lows
Interest rates are a deciding feature for many ISA holders, but with average ISA returns now sitting at just 1.03% (that’s below inflation!), it’s more important than ever to shop around for the best deal. Why allow your hard-earned cash to underperform when you could earn up to 5.35% with Kuflink’s IF-ISA? *
Are you looking for a long-term relationship?
Although a longer ISA term often means a higher interest rate, there are a number of things you should consider before deciding on a long-term ISA relationship! Account terms generally range from 1 year to lifetime options, and although some ISAs offer flexible access to your cash, many are fixed-term – make sure your commitment suits your own financial needs.
Be wary of expensive break-ups!
It’s crucial that you check your exit fees before switching ISAs – your existing provider may charge you to transfer out, and your new provider may charge you to transfer in. If you’re looking to switch to an Innovative Finance ISA that doesn’t charge a fee for transfers in, check out the Kuflink IF-ISA. What’s more, Kuflink doesn’t charge any ISA management fees, so you keep every penny you earn!
Know your boundaries
Each tax year, HMRC set an annual ISA allowance, which increased from £15,240 in 2016/17 to £20,000 for the current tax year, and will remain at £20,000 for 2018/19.
This is the maximum you’ll be allowed to save across your entire ISA portfolio for the year, so if you have more than one ISA, you’ll need to keep an eye on your total savings amount to ensure you don’t exceed the tax-free limit.
Kuflink’s IF-ISA at a glance…
If you’re in search of an ISA with higher returns for the 2018/19 tax year, then why not consider a transfer to Kuflink’s IF-ISA?
Earn up to 5.35% interest pa*
Tax-free interest on P2P investments
1, 3 or 5-year fixed term
Kuflink does not charge you to transfer in**
HMRC-approved ISA Manager
*Capital is at risk. Rate based on a 5-year fixed-term investment. You should seek independent financial advice. Tax treatment depends on individual circumstances and may be subject to change in future.
**You may be subject to exit fees from your existing ISA provider.
Ultimate guide to Innovative Finance ISAs: Part Four
Copy the link below if the Read More link expires.
P2P Business Lending Up 51%
A new study has shown that UK SMEs (Small and Medium-Sized Enterprises) are now seeking finance from a more diverse range of sources than ever, with peer-to-peer business lending up 51%.
Many choose P2P finance for its speed and flexibility although, given less than half of SMEs feel confident they’d be approved for a bank loan, alternative finance solutions are fast becoming an essential lifeline for many small businesses.
Peer-to-peer business loans enable growth and stability, whether the goal is to start-up or scale-up!
The value of P2P business lending is up 51%
Faith in high street banks is at an all-time low, so it’s no surprise that P2P lenders have seen a huge rise in business customers. In many cases, P2P lenders offer a more attractive proposition – to date, more than £14 million has been invested with Kuflink, with £0 investor losses!
The value of SME asset finance deals is up 12%
Not only are more business owners choosing P2P platforms than ever, the value of asset-backed deals is also increasing – whether you’re looking to borrow £50,000 or £500,000, speak to Kuflink today.
47% of SMEs said they were aware of P2P platforms
In stark contrast to just 24% in 2012, an impressive 47% of SMEs are now aware of peer-to-peer platforms. This shows that peer-to-peer finance is now a well-established, mainstream option for many businesses. The Kuflink community is already full of thousands of savvy peer-to-peer investors, but there’s always room for more to join!
Kuflink is already helping SMEs to achieve their goals
Click on the case studies below to see Kuflink’s fast and effective finance solutions in action!
Had enough of putting your business plans on hold whilst you wait for a decision from the bank? Kuflink offer quicker, more reliable and more flexible finance options than many traditional ways of raising funds – get in touch today to find out how we could help make your dreams a reality!
