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Meet The Team
Meet the Team – Sally Turnbull cert CIH – Office Branch Manager
MEET THE TEAM – Sally Turnbull cert CIH – Office Branch Manager Describe your role in one sentence at Cairn ? As Branch Manager for the Glasgow Office, I oversee all Glasgow based staff dealing with the daily running of the branch and any complicated issues that may arise. What is your proudest business achievement ? My proudest achievement is going from Property Manager to the Glasgow Branch Manager within 2 years of being with Cairn. I knew at this point that I had found the career and company best suited to my skills and who I am as a person. What do you enjoy most about working for Cairn? I really enjoy working for a family run business, I have worked for more corporate companies in the past that do not have the same personal touch that makes you feel like you are part of the team and extremely valued. Give us an interesting fact about yourself ? I spent a year living and studying in Spain, I finished my final year of University in the lovely city of Alicante which was one my most treasured memories. What is the best piece of business advice you have been given ? Never doubt your own capabilities. What advice would you give your 18 year old self? It will take time to find the right career and spend more time with family. Who are your hero’s inside and outside of business ? My hero outside of business is my nephew Louie as he has brought so much joy into my family’s lives. Inside of business, I admire those that can see the bigger picture, lead by example and encourage others to grow. What qualities do you most admire in others ? I admire those that are thoughtful, hardworking, organised and positive. How do you unwind out of work ? I love to watch MasterChef with my cats, spend quality time with my partner and eat lots! Favourite book/CD/DVD? I don’t tend to read much, although I really should. My favourite film is Man on Fire or Eat Pray Love. Where is your favourite place in Scotland ? My favourite place in Scotland is ‘Mossyard Beach’. I grew up camping here for 2 weeks every year even though it was only 20 minutes away from our house!
Properties
Guest Blog // from Grant Robertson FRICS, Chairman of Allied Surveyors
Guest Blog // from Grant Robertson FRICS, Chairman of Allied Surveyors For some time now there has been an inevitability to a slowdown in the Glasgow Property Market. House price inflation has been running ahead of wage inflation for over two years and this allied to the increase in interest rates which have been brought forward by the Bank of England to tackle inflation has together with the general cost of living increases put the squeeze of household expenditure which has to have a direct effect on affordability. Whilst the new “grownups” at Westminster have steadied the financial ship and it would appear the interest rates will now peak at a level perhaps 1.5 to maybe 2% below the levels which were being intimated in September, the kneejerk reaction by the banks has driven two-year fixed rates in excess of 6% against current base rates of 3%. I expect those rates will continue to soften and allow some affordability back into the housing market. Markets are of course driven by supply and demand and supply has been at historically low levels for over a decade and it is likely that as we witness a slowdown in new house completions, the supply and demand imbalance will continue for many years to come. What we are witnessing just now is concerns over the ‘double deposit’ where purchasers having had to pay 15 or 20% over home report value as well as then finding their deposit between the valuation and their loan to value. The implications of this could be that a flat selling over the home report of the £150,000 and selling for £180,000 means the purchaser has to find £30,000 to bridge that cap and then perhaps on a 75% loan to value to find another £40,000 meaning a deposit of £70,000 for a flat that essentially valued at £150,000. This is making it very difficult to completed purchases. Home report values must reflect the current evidence of sales whether in a growth or recessionary market. Home Report values do of course naturally lag market sales because surveyors are looking at completed sales 3-6 months behind where the market works in real time. I expect the frothy prices over home report value to drop back and that the limited cash available to purchases as they offset the cost of living increases and other financial concerns. Overall, we will therefore see that the strong sales prices of late 2021 and early 2022 softened by perhaps around 10% whilst home report values themselves are unlikely to see any change for any period of time to come. As others have written in this blog, interest rates at 3% remain at half of what historic long-term rates have been and for those of us who remember the early 1990’s buying our properties at 16%, the current rates seem laughably low. Undoubtedly, it is not fun for people who have seen their mortgage payment double and perhaps even head towards triple through the last few months, but rates have to be viewed against a historic level of affordability which remains within perfectly reasonable margins in Scotland. In summary, low levels of supply against more modest levels of demand will maintain the value of properties to within 10% of the stronger values paid through 2022 and we see a freeing up of parts of the market, particularly in terms of downsizers who now can see the point of selling their property, banking some cash and helping out their children or grandchildren where over the last decade with ultra-low interest rates, there has been little or no point to do so. Sales are still happening but all involved in the transaction be that agent, solicitor, lender, surveyor buyer or seller need to be alert to the changing landscape and ensure lines of communication remain open and that trigger points are addressed well before time constraints kick in. The property world is in a state of flux and now is the time to use experienced professionals who can adapt and perform in challenging circumstances. Should you be thinking of selling in the new year for complimentary valuation our experienced team will guide you through the process. Visit Allied Surveyors Scotland online.
Property Finance
Guest Blog // West End Mortgages – Thinking of refinancing ?
Guest Blog // West End Mortgages – Thinking of refinancing ? There are various different ways and many different reasons that you may wish to release equity from an investment property. Most commonly, we see landlords release capital to purchase additional investment properties, or to fund improvements to existing properties. Applying to release additional funds from a property is commonly factored in as part of the remortgage application process. As with any mortgage, approval is subject to each lenders specific criteria. It is also important to ensure that you remain in the correct loan to value bracket, to obtain a competitive mortgage deal. A number of lenders will allow you to organise your new mortgage up to 6 months in advance of your current deal ending, meaning you can lock your new deal in as early as possible. If you are part way through a fixed rate mortgage, your lender may allow you to apply for a further advance (additional borrowing) subject to meeting their specific lending criteria. We have seen a number of lenders drop their interest rates over the last couple of weeks, meaning now could be a good time to review your mortgage options. #top .hr.hr-invisible.av-p4k55e-41f33b56717b8a07430b5c93a78d43d0{ height:20px;
Property Finance
Guest Blog // Specialist Property Finance – Open for Business ?
Guest Blog // Specialist Property Finance – Open for Business? The last few months have been challenging for landlords and property investors. With new legislation and packages introduced to protect tenants and the environment, landlords have had much to digest. Add to this the economic turmoil created by global factors and exacerbated by the mini budget, investors could be forgiven for thinking that specialist lenders are no longer keen to support this sector. Prior to setting up my specialist finance brokerage last year, I spent several years immersed in the specialist finance sector working with challenger banks and specialist funders. I have been monitoring the situation closely for the last few weeks and in my opinion, the Specialist Property Finance market is very much open for business. Yes, there was a slight pause in the wake of ex- PM Truss’s disastrous mini budget. The shock of the uncosted budget spooked the markets and this had a potentially devastating impact on the British economy. Many Banks and specialist lenders chose to temporarily withdraw their products and took a short period of reflection to understand the market impact and the knock on effect to interest rates. Almost all specialist Buy to Let lenders quickly returned to market with revised products, albeit interest rates have increased for all lenders (Ave 2.5% increase on 5 year fixed rate money). Some lenders have also tightened up their criteria to reflect the changes, whilst others have introduced new ‘tracker’ products. We have lived in a world where the Fixed Rate, at such historically low levels was an obvious choice for many, however we now see a shift in this space to some of the more competitive tracker rates available. An advantage of some tracker loans is they often do not have the high Early Repayment Charges that apply to most Fixed Rate products. Specialist Buy to Let lenders have been quick to recognise this change and have recently introduced a range of new trackers products to the market. Lenders and investors alike recognise that where there are challenges for some, there are opportunities for others. Bridging finance lenders in particular are well placed to support property investors and help them take advantage these opportunities via a range of specialist products. The following products are available to most experienced property investors. Bridge to Let A bridge to let loan provides a means for investors to buy a property quickly and then ability to refinance to a term loan. This can be used in situations where a property is unmortgageable for example where there may be a lack of kitchen or bathroom. It may also be used for auction purchases or ‘off market’ transactions where a fast turn around is important. This also works well where investors want to retain their cash reserves or do not have the cash available to buy the assets. It is especially prominent now that there is a greater focus to improve the EPC rating for each tenanted property. If investors can leverage more against the purchase price and reduce the amount they need for a deposit, they free up their reserves for property upgrades. Buy to let investors are being rewarded with better rates for more energy efficient properties. Portfolio Bridge Bridging can be useful for investors when they have an opportunity to buy a portfolio of properties. During difficult times like these, some investors decide to go in another direction and put their portfolios up for sale, and investors can often buy these ‘off market’ at a discount for buying in bulk. The investors position is enhanced if they can expedite the sale as a cash buyer or do not need a traditional mortgage, which can take time, to fund the purchase. Specialist Bridging companies are able to support experienced clients and can offer up to 90% funding against the purchase price as (if this does not exceed 70-75% of the open market value). A client contacted me recently with the opportunity to buy 6 Buy to Let units as part of a larger portfolio to be sold. Due to the volume of properties he was due to purchase, he was able to negotiate a 20% discount. I was able to provide indicative offers from two lenders on the same day, offering to fund up to 90% of the purchase price. This investor then only had to input 10% of the purchase price to secure the small portfolio. With plans to review the stock and make improvements to the energy efficiency of the properties, they will then re value and transfer the assets to a BTL term loan. By improving the condition and energy efficiency of the units the landlord may be eligible for more attractive rates on the BTL loan. The specialist lender providing this bridge is also able to refinance onto a term loan within 6 months. It is clear that there are still uncertain and perhaps challenging times ahead, however, it is encouraging to see that there is still a strong desire to support property investors with the doors to specialist property finance still very much open. If you would like to discuss any Buy to Let, Bridging or Development Finance proposal, please do get in touch directly with Peter McDermid Logic Property Finance Peter@logicpropertyfinance.co.uk Telephone: 07816497234
Buy To Let, Edinburgh, Investment, Property Investment
Edinburgh Property Investment: Is It Still Worth It in 2023?
Edinburgh Property Investment: Is It Still Worth It in 2023? Interested in Edinburgh property investment? Here, we explain why it’s still a great idea. Investing in buy-to-let in Edinburgh is a no-brainer. Scotland’s cosmopolitan capital boasts stunning properties, a thriving economy, a growing student population, and huge rental demand. In short, it’s the ideal mix for property investors. But why should you spend your money here in 2023? Let’s explore the attraction of Edinburgh in a little more detail. Edinburgh Property Investment — Why Invest in the Capital? Edinburgh Fast Facts Population: 548,000 (2022) House Price Avg: £338,000 (2022) Monthly Rent Avg: £1,327 (2022) Typical Rental Yield: 4% – 6% (the UK average is 4%) Auld Reekie: A City On the Rise It might seem odd to describe a city first founded before the 7th century AD as one “on the rise,” but in property investment terms, that’s Edinburgh in a nutshell. The (Second) Best UK City for Property Investment According to a major study by commercial property advisor Colliers, the Scottish capital came second as the best city for residential property investment in the UK — pipped to the post by Cambridge (London came fourth). The city’s house price growth, high-quality universities, and strong economic performance helped Edinburgh take silver in this particular contest. But there were a variety of other impressive points worth noting where Edinburgh property investment is concerned, including: 1. Historically Low Unemployment Rates Edinburgh’s unemployment has been historically much lower than in most other UK cities, with students and young professionals drawn to the area thanks to higher education and employment opportunities. With more people working, demand for rental properties remains high, while rental rates stay competitive. 2. A Beacon for Major Employers More and more employers are setting up shop in Edinburgh due to its large population, diverse economy, and highly skilled workforce. A powerhouse of the Scottish economy, key sectors include financial services, software and technology, tourism, and retail. 3. A Commuter’s Dream Edinburgh City is incredibly well-connected to its surrounding areas, with several major roads, train lines, and other public transport links converging on the capital. If your property investment budget doesn’t stretch to the city centre, you could still take advantage of Edinburgh’s magnetic draw by looking to the outskirts. 4. A Thriving Student Market Edinburgh is home to 6 universities and 3 colleges. The city attracts students from across Scotland, the UK, and the rest of the world — and these students need to live somewhere! Consider investing in high-quality HMO student accommodation in Edinburgh to meet the demand from student tenants and earn greater yields than standard buy-to-let properties. 5. A Population That Could Soon Rival Glasgow Edinburgh’s population has been on an upward trend since the 1990s, and it shows no signs of slowing. As of 2022, it sits at a whopping 548,000, and this is projected to grow to over 603,000 by 2035. This means it could rival — and even overtake — Glasgow at some point in the near future. And a growing population means a greater demand for housing stock. Worth keeping in mind if you’re trying to choose between the two cities! Read more: Property Investment In Glasgow: Where To Spend Your Money in 2023 So, Where to Buy? Edinburgh Buy-to-Let Hotspots We dig a bit deeper into the postcodes and places to buy in Edinburgh in this post: Buy-to-Let in Edinburgh: Where to Look? But if you want the headlines, here goes… The southwest is an up-and-coming part of the city, with competitively priced properties and fantastic transport links. Check out EH11 and Dalry and Gorgie in particular. EH16 (Liberton and surrounding areas) is consistently popular for buy-to-lets. Situated a mere three miles from the city centre, it’s ideal for students and professionals alike. The neighbouring areas of Broughton, Hillside, and Lochend also offer close proximity to the centre, but without the high costs associated with other parts of the city. Trendy bars, cafes, and restaurants make this a vibrant and sought-after locale. Ready to invest in Edinburgh? Start your property search here. Cairn: Edinburgh Property Investment Experts So, is purchasing a buy-to-let property in Edinburgh worth it in 2023? Absolutely — so long as you know where to look. That’s where we come in. Our property investment experts are ready to help you find your next buy-to-let opportunity in the capital. Get in touch to learn more.
Legislation
Scottish Property – Cairn Legislation Update ( 9th November 2022 )
Cost of Living (Tenant Protection) (Scotland) Act 2022 Following our series of blogs on the rent increase and eviction ban, we can confirm that the Cost of Living (Tenant Protection) (Scotland) Act came into force on 28 October 2022. The legislation will be in force until at least 31 March 2023 and can be extended (with parliament agreement) to 30 September 2023 and again to March 2024. Rent increase ban Under the current legislation, any rent increase notices served on or after 6 September 2022 fall under the permitted rate cap of 0%. Meaning a landlord cannot increase a tenants rent on or after this date until the rate cap is either increased or removed. The permitted rate cap does not affect increase notices issued to tenants before 6 September 2022, these are still enforceable under the legislation. There are some options still available to landlords: Landlords can increase the rent between tenancies. Landlords can still increase the rent for Short Assured / Assured tenancies which have a rent increase clause within the lease. The cap does not affect rent increases for these tenancies, regardless of the date the increase was served if there is a rent increase clause within the contract. Landlords can apply to the Rent Service Scotland for an increase up to 3% to cover increases in the ‘prescribed property costs’. Prescribed property costs Prescribed property costs per the legislation are: The interest payable on any mortgage or standard security over the rented property. Any insurance premium you pay which relates to offering the property for rent. For example, landlords’ insurance. Increases in premiums for building or property insurance are not included. Any service charges related to the rented property that the tenant pays towards as part of their rent if this was agreed between you and the tenant as part of the terms of the tenancy. Landlords can apply to Rent Service Scotland to increase the tenants rent to recover up to 50% of the increase to the prescribed property costs above. This application can only be for prescribed costs in the last 6 months prior to the application being made. If Rent Service Scotland is assured that the landlord’s prescribed property costs have increased within the last 6 months and that the increase proposed by the landlord represents no more than 50% of those costs, the rent officer must order a rent increase. The maximum increase in rent permitted through this process is 3%. To apply to increase the rent landlords must complete the government application form, which can be found here: https://www.gov.scot/publications/rent-cap-private-landlord-guidance/documents/ Landlords are required to notify the tenant of their intention to increase the rent before the landlord form is submitted to Rent Service Scotland. The government has also provided wording for this notification which can be found here: https://www.gov.scot/publications/rent-cap-private-landlord-guidance/documents/ The rent increase comes into force 3 months and a day after the landlord issued notice to the tenants of the proposed increase. This legislation has also been written into the Private Residential Tenancy agreement (PRT). Eviction ban Under the legislation, the issuing of notices to end the tenancy is not banned. Landlords are still free to serve notice to end the tenancy if they wish to do so. In most cases, tenants vacate the property during the notice period, it is only when the tenant does not vacate the property that the restrictions may come into effect. If the tenant doesn’t leave at the end of the notice period, the landlord can still apply to the Housing and Property Chamber, First-tier Tribunal for Scotland for a formal eviction order. If and when the eviction order is granted, the legislation places restrictions on Sheriff Officers from enforcing this order and recovering the property for the landlord. The legislation states that evictions cannot be enforced until restrictions are lifted, or the order has been in force for 6 months, whichever is sooner. There are some exceptions to this restriction, which are detailed below. Exempt eviction grounds: The tenant is not occupying the Let Property as his or her only or principal home The tenant has a relevant criminal conviction The tenant has engaged in relevant antisocial behaviour The tenant has associated with a person who has a relevant conviction or has engaged in antisocial behaviour Let Property to be sold by the mortgage lender. The tenancy was granted to an employee and the Tenant is no longer an employee. New grounds have also been included in the PRT under the legislation which are exempt: The Landlord intends to sell the Let Property to alleviate financial hardship. The Landlord intends to live in the Let Property to alleviate financial hardship. The Tenant is in substantial rent arrears (equivalent to 6 months’ worth of rent). The above grounds also apply to Short Assured and Assured tenancy agreements, however the notice periods differ slightly per the terms of the lease. Landlords need to provide evidence to the Tribunal of the eviction ground being used / demonstrate their financial hardship. These could include: a letter of advice from an approved money advisor, local authority debt advice service, independent financial advisor or from a chartered accountant. an ‘affidavit’ stating that you are intending to sell the let property or to live in the let property. This is a particular type of statement which is sworn under oath There are other types of evidence which landlords can provide to the Tribunal to demonstrate financial hardship, such as: Information detailing your income Details of the things you are responsible for paying Any outstanding debts or payments which you need to make Information to show that you are not able to cover the essential things you have to pay for because you do not have enough money coming in Information to show that you are often unable to make any essential payments or repayments which you are required to make Information to show that you are having to borrow money in order to pay your bills Information to show that you are only able to make essential payments by selling things you own Information to show that you are on a formal debt management plan Information to show that you are bankrupt Information to show that you are unable to meet the costs of maintaining or repairing the let property to meet the standards you are required by law to meet as a landlord The Tribunal will consider all relevant information in the case, including any evidence or information provided to them, and decide whether it is reasonable to evict the tenant. For any eviction applications submitted to the Tribunal before 28 October 2022, these should still be heard as normal, and the eviction should be enforceable under the legislation as long as notice was served on the tenant prior to 6 September 2022. Our qualified and knowledgeable staff at Cairn are always on hand to support landlords with any queries they may have regarding rent increases or evictions during this ban. With the ever changing legislation being implemented on private residential landlords, it is imperative that landlords employ reputable and qualified agents to manage their properties in Scotland. This will ensure legislation is being followed and that the most recent and correct advice on how to manage tenancies is being received. At Cairn, we have fully qualified and friendly staff waiting to assist landlords with management of their properties, we also have an in-house Compliance Manager who is both ARLA and LETWELL qualified to assist landlords with more difficult tenancy issues. Please do not hesitate to contact us to obtain further information on our management services.
Meet The Team
Meet The Team – (Fiona Herbin – Associate Director)
Describe your role in one sentence at Cairn? As Associate Director, I oversee all letting valuations for the Glasgow Branch; meeting new clients, helping our existing landlords grow their portfolios whilst also hitting our company monthly/annual targets! What is your proudest business achievement/moment? Getting promoted to Associate Director from Branch Manager has been a career highlight. Having previously managed the team, I am also very proud of our Edinburgh division’s outstanding performance and continual growth since it’s 2019 acquisition. How has your industry changed in the last decade? We’ve all felt the impact of legislation increases and the introduction of Private Residential Tenancy. These challenges have had a massive impact on Letting agencies and Landlords but have ultimately been in our client’s best interests. Give us an interesting fact about yourself. I am a keen traveller, visiting over 26 countries in the last 10 years including a three month sabbatical from Cairn to travel. What is the best piece of business advice you have been given ? Always challenge yourself and put yourself forward for opportunities. What advice would you give your 18 year old self? Wear sunscreen and take care of those teeth! Who are your heroes inside and outside of business ? My business hero is Yvon Chouinard, the owner of Patagonia who donated his entire company to fight climate change. Outside of business, it has to be my husband who safely delivered our baby boy at home under the guidance of a 999 operator on speakerphone! What qualities do you most admire in others ? Integrity and enthusiasm go a long way in my book. How do you unwind out of work There’s no better way to unwind than snuggling up to my chihuahua on the sofa and binging a crime drama series! Favourite book/CD/DVD? I don’t get to read as often as I’d like, but always enjoy a good thriller. Lewis Capaldi is currently on repeat on my Spotify and Home Alone 2: Lost In New York is a classic I love to rewatch every year. Where is your favourite place in Scotland? My family love to visit St Andrews, especially at Christmas time.
Meet The Team
Meet the Team ( Gemma Waters – Compliance & Legislation Manager )
Describe your role in one sentence at Cairn? I am responsible for ensuring our office, staff and clients meet the ever changing compliance and legislation within the letting industry. I also support both branches to ensure that our offices operate efficiently and implement procedures and systems to allow staff professional growth and development. What is your proudest business achievement? Obtaining my ARLA and CIH qualifications How has your industry changed in the last decade? The property industry has changed massively over the last decade. For lettings, the most notable change was the introduction of the PRT which removed the old SAT style of lease agreement and placed more restrictions on landlords. Landlords are still feeling the aftermath of the pandemic with changes to evictions, and more recent changes in legislation to rent increases. What’s a typical day for you? A typical day would involve checking the Scottish Association of Landlords and ARLA websites for changes to legislation, undertaking staff training, procedural updates, implementing new systems and acting as a general support to all members of staff. Give us an interesting fact about yourself? I am very passionate about animals and have volunteered for several animal charities over the years including the SSPCA. What advice would you give your 18 year old self? You get what you work for. Keep working hard, stay focused and most importantly have fun doing it! Who are your hero’s inside and outside of business? My personal hero is my gran who is the kindest, strong, and most loving women I have ever met. In business, I admire those who go over and above, have a strong work ethic and who take pride in what they do. What qualities do you most admire in others? I admire people who are selfless, honest, hard working and loyal. How do you unwind out of work? Family time, family time and more family time! Favourite book/CD/DVD? ‘All I see is you’ is my favourite book (at the moment). Tennessee Whiskey for my song and Pulp Fiction / The First Wives Club for my movie (depending on my mood!). Where is your favourite place in Scotland? Rothesay, this was a great favourite for family holidays when I was little and holds a lot of precious memories for me.
Meet The Team
Meet the Team ( David Rowand – Managing Director )
MEET THE TEAM – DAVID ROWAND – MANAGING DIRECTOR Describe your role in one sentence your role at Cairn. – As MD, I sleep eat and breathe Cairn as the owner you never switch off, my role is to ensure the business is meeting its strategic targets set out by the management team. What is your proudest business achievement ? – Proudest business achievement is surviving the financial crisis in 2008. How has the industry changed in the last decade ? – I think for all SME’s it has been a turbulent time between covid and government changes and continually biased landlord legislation it has not been easy. Give us an interesting fact about yourself ? – I am a keen rugby enthusiast though some people may not find that interesting. I played for Scotland at school level but had a head injury scree-running at school and ended up in hospital for a month, I did return to rugby thereafter, but a further knee injury put paid to my professional career. What is the best piece of business advice you have been given ? – always employ people who are better than you. What advice would you give your 18 year old self ? – I would tell myself to slow down it’s not a race it’s a marathon. Who are your hero’s in and out of business ? – Doddie Weir is real inspiration to me he has been so courageous in his fight with MND and the fact he has highlighted this awful illness is fantastic. What qualities do you most admire in others ? – Selfless caring people who go the extra mile to help to someone. How do you unwind at work ? – I truly unwind when I play golf or when I am watching rugby. Favourite Book / CD/DVD – Any easy holiday read / Anything Soul / Funk / Bond Where is your favourite place in Scotland ? – I love Dumfries & Galloway and I have a family connection to the area which makes it even more special.
