Finding a new home to rent can be exciting, but it can also be daunting. It’s a big financial commitment and one you don’t want to get wrong. To help renters check that they’ve found the right property, here are five things to look out for before signing on the dotted line.

Five things renters should consider

1. Is the furniture in good condition?

It’s important to check that furniture in the property is in good working order and meets fire safety standards. Furniture that comes under fire safety rules should have labels attached to confirm they meet the required standards. Any furniture, including sofas, beds, cushions and mattresses that don’t meet fire standards, is broken or needs replacing through wear and tear should be replaced at the landlord’s expense. It isn’t your responsibility to replace the furniture in furnished property.

2. Is the property secure?

Different properties have different security needs, but it’s essential to know that your home is secured properly. You need to feel safe in your home, so ensure that locks are fitted properly and of good quality. Windows should also be checked to ensure they close properly and can be locked. It may also be necessary to consider security lighting and an alarm system.

3. Are there signs of dampness?

Damp and mould create uncomfortable living conditions and can be a health risk. Look in the corners of rooms and around widows for dampness and condensation. Signs of mould, flaking paint or wallpaper coming away from walls are all warning signs.

4. Are safety alarms in place?

There are specific regulations around smoke & CO alarms and CO2 monitors in rental properties, and you need to ensure that any property you are looking at has the required alarms in place and that they work. If not, this is a breach of the law and needs to be addressed before you can move in.

5. Check there’s an inventory

A comprehensive property inventory can save you from difficult conversations and disputes at the end of the tenancy. It should list all furniture, appliances, etc. and their condition, and you must agree that the inventory accurately represents the property’s contents and condition. If you don’t have one, you could find yourself bearing the cost of repairs and replacements you weren’t expecting when you come to leave the property.

Don’t rush in, only to pay for it later.

A few checks before you decide to rent a property could save you a lot of heartache and unforeseen costs down the line. Understanding what you and the landlord are responsible for when you look at a property can help you ask the right questions if you are unsure of anything.

Taking time to read a letting agreement can help you feel confident that you and your landlord are starting off on the right foot from the beginning of your tenancy.

No Letting Go

If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, streamlining your costs, reducing your workload and ensuring that both you and your tenants are well protected, then contact No Letting Go today.

Short term lets have had a significant role to play in the rental market over the past year, performing better than other sectors, and the good news is that this trend looks set to continue in 2022.

What’s driving the growth in short term lets?

Although the short-term rental market has not been immune to the challenges presented by the past couple of years, it has weathered the storm well for three key reasons:

The rise of the “staycation”: Many people are choosing to avoid foreign travel and remain in the UK for their holiday, with the increase of “staycations” driving demand for short-term holiday lets. People’s desire to explore the UK and enjoy the convenience of holidaying while avoiding airports indicates that demand for short-term lets for holidays is here to stay. BuyAssociation reported that 47% of families looking for holiday accommodation were interested in finding a cottage or villa rather than staying in a hotel.

Nomadic workers: Another trend driving the demand for short term lets is that of the nomadic worker. For many people, working from home looks set to remain a long-term work option; it doesn’t matter where they are based if they can continue to work. This has seen a rise in people taking on short term lets they can work from but also use as a base to explore a new area, allowing them to combine travel and work.

Modern rental options: We recently discussed how the build-to-rent sector continues to grow and the increasing availability of purpose-built rental properties specifically designed for the rental market. They offer an attractive proposition with great facilities, easy access to wi-fi, and high-spec interiors. Unlike many traditional rental properties, they offer flexible rental solutions, including short-term lets. These types of properties speak to those who don’t want to rent, and as the number of build-to-rent properties increases, it will also help attract more people to the short-term rental market.

How can landlords adapt?

As the short-term rental market is likely to continue performing well, landlords and letting agents may want to look to their own portfolios to see how they can benefit from the trend. In this case, the ability to be flexible and manage regular changes in tenants will be essential, and technology will play a vital role.

We’ve already seen how technology such as keyless entry, digital property guides, and an array of communications tools can smooth the onboarding process for new tenants. But there’s also an array of technology that supports the quick transition of tenants. Online inventory tools, check-in services, and end-of-tenancy checks all make property management efficient and easy while still protecting your property and keeping operational costs low.

There are plenty of opportunities for landlords and letting agents in the rental market, but you may need to examine how you apply tech to manage your properties to keep pace with change.

No Letting Go

If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, applying high-tech solutions to streamline your cost and reduce your workload, then contact No Letting Go today.

Will changes in the Model Tenancy Agreement and the proposed Dogs and Domestic Animals Accommodation Bill make renting with pets the new norm? It could make life easier for pet owners looking for rented accommodation, but it may not give tenants the absolute right to keep a pet they were hoping for.

Renting with pets is in demand.

Rightmove reports a 120% increase in the demand for pet-friendly rental properties. This is in stark contrast to the PDSA report that only around 7% of privately rented accommodation is advertised as pet friendly. It reflects that finding a rental property if you have a pet isn’t straightforward.

In a move that may address this, the government is taking steps to make it easier for anyone with pets to find somewhere to rent by changing the default position of landlords on pet ownership.

So what’s changing?

The Model Tenancy Agreement is the government’s recommended contract for landlords to use with tenants, and it has been updated to be more pet friendly. There’s no longer a blanket ban on tenants having pets, and landlords are being encouraged to allow them.

Renters must still seek written consent from landlords to keep pets on the property, but landlords must respond within 28 days, giving a good reason for objecting. However, they still have no legal obligation to accept pets.

In addition, the Dog and Domestic Animals Accommodation Protection Bill is seeking to add further assistance for responsible pet owners to find rental properties. While this bill is still awaiting approval, it proposes that pet owners with a ‘certificate of responsible animal guardianship’ would be able to demonstrate to landlords that they are responsible owners, making the landlord more comfortable with leasing to a pet owner.

Neither of these measures gives tenants the legal right to keep pets in rented accommodation, but they change the default position of pets in rented accommodation. The Model Tenancy Agreement states that landlords must not withhold or delay consent to refuse a pet. The Dog and Domestic Animals Accommodation Protection Bill would require landlords to have a certificate of exemption if they want to prohibit pets, for example, religious objections.

What does this mean for landlords?

Many landlords may wish to support their tenants having pets but are cautious about the potential challenges this can present. These include additional damage and wear and tear a pet may incur at a property or the risk that it may be loud and become a nuisance to other residents.

In our article Should I allow pets in my rental property? we look at the pros and cons for landlords of accepting pets and ways in which they can mitigate potential loss by ensuring that their tenancy agreement stipulates clear guidelines on pet ownership and ways to mitigate any additional costs.

It seems inevitable that demand for pet ownership in rental properties will increase. To keep pace with the change and tenant needs, landlords and agents mustn’t put this on the back-burner. Being prepared for change is the best way to ensure that you have the right solution that works for all parties.

No Letting Go

If you would like to discuss how our local support or national network at No Letting Go can become your inventory partner, protecting your property and its contents while streamlining costs and reducing your workload, then contact No Letting Go today.

We’ve seen rises in the cost of food, fuel and energy recently, but this may not be the end of it for renters. It seems that rents are also set to continue going up in 2022.

What’s happening with rents at the moment?

Since the end of 2021, rental prices have been on the increase. In the 12 months to March 2022, private rental prices paid by tenants in the UK increased by 2.4%, which is the most significant annual growth rate since July 2016.

London is the exception to the recent increase in rent prices, with private rental rates increasing by 0.4%. So if you exclude London, national rental prices across the rest of the country increased by 3.3% during that period.

What’s causing the rise in rents?

The rise in rents is driven by two key factors: a rise in demand for rental properties; and not enough supply to meet the demand. Both the Association of Residential Letting Agents (ARLA) and the Royal Institute of Chartered Surveyors (RICS) report a growing demand for rental properties.

This is an ongoing trend, as the Rightmove rental price tracer for Q4 of 2021 reported:

· Tenant demand is 32% higher than the same time the previous year
· The number of available properties is 51% lower than the same period in the previous year
· Competition between tenants for available properties is at 94%, compared to the same time the previous year

With demand for rental homes increasing by 76% in the New Year period of 2022, compared with the same time in 2018 to 2021, there seems to be no let-up in sight.

What happens next?

Rightmove predicts rents will rise by 5% in 2022 as the struggle between supply and demand continues, whilst Zoopla predicts a rent rise by 4.5% across the UK in 2022, excluding London, where the surge is likely to be a little lower, at 3.5%.

Renting dynamics are expected to change over the coming months as city workers return to the office and want to relocate near their workplaces to avoid commuting. Students return to their places of study, including many from overseas.

Tenants who remained in situ during the pandemic may also be looking to make the move they had put off.

The rental market is expected to move quickly over the coming year, and competition for properties will be fierce. Renters need to move rapidly to secure the property they want. Yet, they could also face the additional challenge of increasing living costs that will squeeze their budgets. This means that many renters will have to reassess what they can afford.

High demand should mean landlords can secure a good return on their rental properties and reduce empty periods. However, it’s still important to maintain properties to a good standard if they want to attract their ideal tenants.

No Letting Go

If you would like to discuss how our local support and national networks at No Letting Go can help you to secure the tenants you want by acting as your inventory partner while streamlining your costs and reducing your workload, then contact No Letting Go today.

The Renters Reform Bill White Paper is expected in 2022 and will outline wide-ranging reforms proposed for the private rental sector. Landlords need to be prepared to make changes to ensure that they meet the new obligations when they are introduced.

What is expected to be in the Renters Reform Bill?

There are several fundamental changes proposed in the Bill that will directly impact landlords:

• Abolishing Section 21 “no fault” evictions: Landlords will need to provide tenants with a valid reason for eviction at the end of the tenancy, which is not currently required.
• A lifetime tenancy deposit: This will ease the financial burden for tenants when moving between tenancies as deposits will be transferred with each move, rather than having to save for a new deposit for the following property while waiting for the last deposit to be returned.
• Improved standards in rented accommodation: To ensure all tenants have a right to redress and stop criminal landlords from unscrupulous practices to improve the standard of rental properties.
• Strengthening repossession grounds for landlords: When the landlord has a valid reason to repossess the property, the Bill will ensure they can do so.
• Introduction of a landlord register: This will improve how they are held to account so tenants can be assured they are renting from a landlord who meets their legal duties.
• Improved eviction process: Making the process easier and quicker for landlords and tenants and providing mediation services to avoid the courts.
• Greater powers for local authorities: To enforce the rights of tenants.

Why are the changes being introduced?

The Renters Reform Bill is seeking to make changes to offer greater security for tenants while also ensuring that the rights of landlords aren’t unfairly diminished, allowing them still to take appropriate action when there’s justification.

The Bill will also elevate some of the financial burdens on tenants regarding managing deposits. These changes should improve standards for tenants with greater clarity on all sides over what their responsibilities are.

How will the proposed reforms affect landlords?

Landlords must make themselves up to speed with all the changes the Bill introduces so they don’t miss any of the new obligations. This could mean updating tenancy agreements, deposit and rental processes, including eviction notices, to reflect new regulations.

To remain competitive and attract the tenants you want, all landlords and agents should already be keeping their properties maintained to a high standard. A robust inventory procedure can help you achieve and maintain standards in your rental properties. If not already in place, landlords and agents should consider this as a tool to meet their new obligations under the Renters Reform Bill.

At No Letting Go, we will be working proactively to ensure that our inventories are ready for any changes the Renters’ Reform Bill introduces and will work with landlords and letting agents so that our services continue to help them meet their regulatory obligations.

No Letting Go

If you would like to discuss how our local support or national network at No Letting Go can become your inventory partner, keeping you compliant with the law, streamlining your costs and reducing your workload, then contact No Letting Go today.

The Covid-19 pandemic created an unprecedented shift to working from home when many offices were forced to shut. This significantly impacted the rental market as tenants reassessed what they needed from their home property to support their new working style.

What changes did tenants want when working from home?

Working from home had an impact on how people looked at their homes, whether owned or rented, in three key areas:

• Space to work
• Outdoor space to enjoy
• Location

There was a need for working space for more than one family member for many. Extra space was needed by many to enable them to work from home. Workers desired an extra room to accommodate a home office, but even the ability to set up a specific work area or desk in an existing room made a big difference.

In addition to extra indoor space, people craved outdoor space. A garden, or even a balcony, became important to enable people to get outdoors when they weren’t allowed to leave home. Even after restrictions were lifted, being able to grab a break and some fresh air while spending a long day at a home desk is essential for physical and mental health.

Finally, where people were able to live also changed. They were no longer tied to cities or commuter suburbs to be able to get to the office, saving on travel time and expenses.

They could, and did, choose to live further afield as their homes became their workspaces, especially more flexible renters. This saw many people leaving city and town centres to find cheaper accommodation in the country or market towns where they could afford the extra indoor and outdoor space they desired.

What’s happening after lockdown?

Hopefully, we’ve seen the end of lockdown, and there’s an expectation that things will return to how they were pre-pandemic, including tenants’ expectations. But according to YouGov, 60% of British workers would still prefer to work remotely sometimes, so the need for space and desire to live in more remote locations could be here to stay.

However, there does seem to be some shift back to cities as offices begin to reopen. Last month, the BBC reported that some workers’ gradual return to the office and a winding down of covid restrictions led to increased demand in the urban rental market. In January, demand was up 76% compared to an average January in each of the previous four years.

This is encouraging news for landlords with properties in cities and larger towns. However, they still need to consider that working from home is likely to continue for many tenants and will still influence their choice of property.

Tenants’ rising lifestyle expectations.

We recently spoke about continued growth in the build to rent sector, and part of this boom is the focus on delivering facilities that support modern lifestyles. Popular properties have dedicated working areas, offer access to good broadband and amenities and maintain a high standard of living that accommodates the changing expectations of renters who consciously decide that renting is better for them than homeowning.

A complete return to the pre-pandemic world is unlikely, and landlords who can adapt and keep pace with the changing needs of tenants will continue to see a healthy demand for their properties.

No Letting Go

If you would like to discuss how our local support or national network at No Letting Go can become your inventory partner, ensuring that your property remains desirable to today’s tenants, contact No Letting Go today.

With so many people feeling the pinch and substantial rises in the cost of living predicted to continue into 2022, we’re all looking for ways to save money where we can. One area tenants could look to do this is in their monthly rent charge. If you’re looking to move home, where are the cheapest areas to rent?

 

Average monthly rent in the UK by region

According to a Statista survey of average rents in December 2021, the average UK monthly rent was £1,060. Starting with the cheapest average rent, the costs across the country were:

  1. The Northeast (£580)
  2. Northern Ireland (£724)
  3. Wales (£736)
  4. Yorkshire and Humberside (£737)
  5. Scotland (£738)
  6. East Midlands (£742)
  7. West Midlands (£786)
  8. Northwest (£844)
  9. Southwest (£983)
  10. East of England (£1,031)
  11. Southeast (£1,123)
  12. Greater London (£1,752)

While the Northeast was the cheapest area for rent, there are vast regional differences in average rental prices. Although the London area has seen some challenging times, with many tenants choosing to leave the capital during lockdown, the average rental cost is over £1,000 per month, more than the top six cheapest places to rent.

 

What is happening to rental prices?

As we start to see the worst of the Covid-19 pandemic in the UK, 2022 still looks like it could be another year of uncertainty as we continue to adjust to the post-pandemic era and manage the financial impact.

According to early indications from the ONS, in the UK, private rental prices rose by 2% in the 12 months to January 2022, increasing from 1.8% in the 12 months to December 2021. The East Midlands saw the most significant increase in rental prices of 3.6%, and London the lowest of 0.1%. In the Northeast, the area with the lowest average rent per month, there was an annual rental price growth of 2.2%.

 

What does this mean for the rental market?

RICS reported a supply versus demand imbalance in the rental market in January as tenant demand increased. Still, the number of new listings fell, leading to over half of respondents to their survey anticipating rent increases in the next three months.

With the expectation that remote or hybrid working will continue, tenants will continue to have greater flexibility to decide where they live and work so that they can make the most of regional price variations. But as rents are expected to increase further, it will mean that tenants and landlords will keep a close eye on the market and stay flexible as even the cheapest areas see prices rise.

 

No Letting Go

If you would like to discuss how our local support or national network at No Letting Go could make your property more attractive to rent, streamline your costs and reduce your workload by becoming your inventory partner, then contact No Letting Go today.

This year marks the biggest ARLA conference to date, as the 25th event in the conference’s history is taking place in London on the 24th of March.

As one of the most important property events in the calendar of professionals working in the private rented sector, we’re excited to be there flying the flag for our network of property inventory experts.

Find out what the event has to offer…

 

What is the ARLA Propertymark Conference and Exhibition?

The ARLA Propertymark conference is an annual event dedicated to the private rental sector. In 2019, attendees reached the 1000 mark and this year is set to be even bigger.

This year’s keynote speakers include:

  • Mary Portas, High street retail expert
  • Dido Harding, Digital business leader
  • David Cox, ARLA Propertymark chief executive
  • Julian Worricker, Conference moderator and BBC broadcaster

In addition to insightful talks and presentations, there is a full agenda of debates, property industry roundups, exhibitions and the chance to network with fellow professionals.

 

When is the ARLA Propertymark Conference Taking Place?

The ARLA conference 2020 is taking place in London’s Excel on the 24th March.

 

Why attend ARLA Propertymark Conference?

If you’re an estate agent, letting agent or supplier wishing to network, this event provides an essential opportunity to network with the best in the business.

The conference is the place to catch up on the latest innovations in the sector, debate important industry issues and hear from some of the leading figures in lettings.

The event also provides the opportunity to explore new products and services that could help your business thrive.

 

No Letting Go at the ARLA Conference

As the exhibition celebrates 25 years, you’ll find us at stand D13 where we’ll be sharing our franchise offering and specialised services.

Find out about our:

  • Property inventory services to landlords, letting agents and property professionals
  • Property visits
  • Property conditions reports
  • Check in/check out services
  • Estate and block management audits
  • Our cutting-edge property technology and software
  • Becoming a franchisee
  • And lots more…

 

Other ARLA Events to Watch Out For

ARLA Propertymark put on several regional and national events throughout the UK, including:

  • Northern Ireland National Conference
  • Scottish National Conference
  • South Coast
  • South West
  • Welsh National Conference
  • East Anglia
  • South-East
  • North West
  • Midlands

Other annual events include the NAEA Propertymark National Conference which is dedicated to estate agents.

 

Tailored Property Inventory Services

Need some help streamlining your property business? We’re the UK’s largest provider of inventory management services with over 65 offices across the UK.

Spanning residential and commercial property, our extensive list of services are all designed with you, the client in mind.

Get in touch today or start browsing our full list of property inventory services.

A new year brings with it fresh opportunities to maximise the potential of your property portfolio and grow your business. It also brings new changes to the private rental sector.

So, what will the rental sector look like in 2020? And how can landlords, letting agents and property professionals keep abreast of changing regulations? Our rental property predictions 2020 looks ahead to key events in the industry.

From an overview of regulatory changes in the past year, to upcoming developments, we’re looking ahead to what 2020 will bring to the rental industry.

 

What Happened in the Rental Sector in 2019?

Before we start looking ahead, let’s catch up on some of the most important changes and updates to the private rental sector over the last year and what effects they’ve had on the industry;

 

Making Tax Digital

In 2019, the government announced that they would be helping small businesses convert to a new digital tax system to be fully implemented by the end of 2020 called Making Tax Digital.

From April 2019, VAT tax records and returns went digital, affecting landlords with an annual rental income of over £10,000. This change required landlords to use software or apps to keep track of tax records and to update HMRC through a new, digital tax account, if they weren’t already. Hopefully, this has made doing taxes more accurate and efficient for the majority of property professionals.

 

Letting Agency Fees Ban

February 2019 saw the introduction of the Tenant Fees Act 2019, prohibiting many of the fees required by letting or estate agents. From 1st June, letting agencies were no longer able to demand fees for;

  • Security deposits over five weeks rent
  • Holding deposits over one weeks rent
  • Change in tenancy costs over £50

The Letting Agency fees ban raised alarm among some parties, with ARLA claiming that a blanket tenant fee ban would ‘put additional pressures on landlords, with fewer tenant checks and a lower quality of service’.

 

PropTech Innovation

In 2019 PropTech became the buzzword on the lips of almost everyone in property. But what does the term actually mean? Put simply, PropTech or Property Technology is all about the digital transformation of the property industry, from big data to VR.

Moving tenant checks online and Apps that help landlords manage their property maintenance have been making everyday tasks faster, easier and more secure for professionals in all areas of the property industry.

For example, Kaptur is a digital property inventory system that allows users to manage work flows, reports and inventories all in one place.

This trend for digitalisation shows no signs of losing momentum as we move into 2020.

Woman wearing a virtual reality headset

What’s New for 2020 in the Rental Industry?

Now, let’s turn our attention to upcoming changes that could have an effect on the private rental sector in 2020;
Abolishing Section 21
The new Conservative government has announced plans to abolish Section 21 repossessions in order to protect tenants. This change is likely to be implemented by the end of 2020.

This proposition has caused alarm amongst several landlord bodies, including ARLA, who are concerned that it will make it harder for landlords to regain possession of their properties if needed.

Good or bad, this will result in changes to the way landlords and tenants can legally end tenancy agreements. For landlords, this means following the Section 8 possession process set out in the Housing Act 1988.

 

Changes to Mortgage Interest: Section 24

By April 2020, tax relief for buy-to-let landlords will be reduced to the basic rate of income tax and landlords will no longer be able to deduct any mortgage interest payments from their rental income.

In addition to paying more tax on rental properties, this change could even move some landlords up into a higher tax bracket.

 

Making Tax Digital

The scheme to completely digitise the tax system by the end of 2020 aims to make taxes more accurate, efficient and easier to manage.

But what does this mean for landlords and rental property businesses?
In addition to minimising the chance of error, a digital system should allow landlords with multiple properties to stay on top of their taxes more easily. With all the information accessible on a mobile device, you will be able to see how much tax you owe ‘as you go’ rather than waiting to find out at the end of the tax year.

However, if you’re not naturally tech-savvy, the new system might take a little getting used to – so you better get started!

 

Brexit and the Rental Industry

Regardless of your opinion on Brexit, landlords and property professionals may take some comfort as uncertainties regarding the effects on the housing market begin to stabilize.

Although a lot is still up in the air, it looks like we are definitely leaving the EU so landlords can start making long-term plans to grow their portfolio.

The effect of Brexit on the rental industry could even be a positive one, with an increasing number of first time buyers delaying getting onto the property ladder while agreements are being finalised.

 

Continued Demand for Rental Properties

On the whole, 2020 looks set to be an exciting and prosperous year for the private rental sector.

The number of people living in rental properties in the UK has been steadily growing over the last few years, and this looks like a continuing trend as we move into 2020. Clearly, this is good news for those working in the sector who are likely to enjoy relatively stable returns on investment.

Adults signing tenancy agreement at a desk

Protect Your Property Investment in 2020

Keen to maximise the potential of your property portfolio in 2020? That’s where we come in.

Ensure your investment stays protected, attract the right tenants and encourage long-term tenancies with the help of our varied property services including;

  • Property inventory reports
  • 360 virtual photography
  • Right to rent checks
  • Mid term reports and inspections
  • Property appraisals
  • CO and Smoke reports
  • Check in/check out reports
  • Digisign

Want to find out more? Browse our property inventory services to get started.

With Brexit looming, it’s unclear what the state of the UK economy will look like in a few months’ time, let alone the private rented market.

While it’s right to be wary, Brexit doesn’t necessarily spell disaster for landlords. In fact, there may even be some positive developments. Here, we look at how Brexit will affect the rental market, what it might mean for landlords and how to protect your investment in this unsettling period.

 

Will Brexit Affect Right to Rent?

Since February, 2016 it has been a legal requirement for landlords to ensure that their tenants have the right to rent in the UK. If landlords are found to be letting to an illegal immigrant, they could face fines of around £600 per tenant.

However, Brexit brought new uncertainties as guidance on the new regulations after leaving the EU were unclear, particularly in regard to the status of EU national renters.

For now, the Home Office have confirmed that during this transitional period, EU nationals will still have the right to remain in the UK and will be able to use their current passports or ID as proof of legal status. According to the Home Office, the European Union settlement scheme will provide legal EU citizens with digital documents to make these checks easier for landlords.

However, longer term this could cause issues, especially if longer term tenancy agreements are signed, as the legal status of some tenants may change post-Brexit.

The most recent update from the government confirms that the right to rent check regulations will stay the same until January 2021, regardless of whether a deal is made. Similarly, the requirements for Irish citizens will not change.

 

How to Stay Protected

One of the easiest ways to stay on top of essential document checks is to enlist the help of a professional reporting service.

No Letting Go clerks can verify right to rent documentation at check in, to determine whether they match the tenant’s appearance as part of our right to rent service. This is particularly helpful for landlords who aren’t able to meet with tenants personally.

 

Unstable House Prices: Good News for Buy-To-Let Landlords?

Brexit uncertainty has caused the UK housing market to slow down, with average UK house prices falling by £5000 at the beginning of this year.

This could be seen as a positive for buy-to-let landlords who can take advantage of this lull in the UK property market. For landlords looking to expand their portfolio, it could be your chance to buy for less.

However, a lack of stability is understandably putting some people off;

  • Recent changes to stamp duty have meant that landlords have to pay an extra 3% on each band on new buy to let properties, significantly increasing outgoings.
  • While the reduction of tax relief for buy-to-let mortgages means landlords will be paying more in tax by 2020 and may even find themselves in a higher tax bracket.

Combined, these changes are making landlords think twice about investing in buy-to-let as it may be harder to enjoy the same rental yields as before.

 

How to Improve Your Rental Yield

If you do decide to take the plunge, you may find a real buy-to-let bargain!

To minimise the risks, it’s worth doing your research to find the best place in the UK for rental yields.

 

Brexit and Mortgages

Depending on what happens to Bank of England interest rates, mortgages could be affected by Brexit. It has been suggested that the base rate may rise after Brexit, which could make buy-to-let mortgages more expensive. One way around this could be to re-mortgage your property now, before the economy shifts.

Nonetheless, if this is the case, mortgages will be equally difficult to obtain for prospective house buyers, adding to the increase in those looking to rent.

 

The Impact of Brexit on the Rental Market

The instability of the UK housing market could put off potential home buyers from taking any risks in the near future. With less people buying, this could be good news for letting agents and residential landlords, as more people will be looking to extend their lease.

Shortages in social housing could also result in a rise in rental demand, placing landlords and property professionals in the private rental sector in a good position.

Bearing this in mind, it looks like the rental market should stay secure for the foreseeable future.

One thing to think about is that the location of your rental property could have an impact on the number of prospective tenants looking for housing. For example, some No Letting Go regional branches in which a higher level of EU nationals reside experienced lulls after the referendum due to uncertainty surrounding legal status.

 

How to Stay Protected

Providing quality rental properties that people want to live in will help minimise the risk of any void periods as we prepare for this transition. Staying on top of essential property maintenance and providing an appealing home for tenants will help to ensure you don’t lose out.

 

Property Renovation and Build to Rent

If you’re thinking of renovating your rental property or building property to rent, Brexit could make things a little difficult.

As much of the construction materials and labour resources used are imported from around the EU, tariffs and ease of supply could be affected. So, if you’re thinking or extending or renovating, you may need to save up more than you originally planned for to be on the safe side.

Thankfully, the government has confirmed that those with EEA qualifications, such as EU architects will still be able to work in the UK, even in the event of a no deal Brexit. Therefore, there shouldn’t be any disruption to ongoing work.

 

Brexit for Landlords: Stay Protected

To sum up, Brexit may not be the blow some private landlords thought it might. Although it’s hard to predict what might happen in the coming months, unstable house prices and rising mortgage rates could even drive the demand for rental properties.

To make sure you don’t miss out when the time comes, it pays to have a solid plan in place. And that’s where we come in.

Our professional property inventory services provide you with the essential reports you need to stay on top of the latest legislation. Covering everything from right to rent to property appraisals, our teams of experts are here to help protect your investment and give you peace of mind.

Browse our full list of property services to find out more about our individually tailored services.