Tag Archives: Property

Rental Yields Are Rising

As a landlord, there is a lot to consider, even before you invest in rental property. At Just Lets Peterborough, we are here to help landlords at every stage of the letting process.

Rental yields are one of the most important factors to consider, and if you are looking for positive news regarding yields, we are here to assist you.

The importance of the rental yield

The Natwest offers this guidance on why rental yields are so vital for landlords; “The rental yield calculation is particularly useful for comparing how different properties are likely to perform. If a flat in one area has a realistic expected rental yield of 8% while an alternative on the other side of town is set to return 6%, you’re probably better off with the former – provided that you can afford to buy it and there are no differences in terms of how likely you are to find tenants.”

There will always be exceptions to the rule, but generally, the higher the rental yield, the better. If you are looking to enter the rental market, or you are keen to improve your property portfolio, you must consider the rental yield.

English rental yields are rising

Therefore, information from Fleet Mortgages which indicates rental yields are rising will be welcomed by many landlords.

Rental yields on residential buy-to-let properties rose 0.4% on the 6% yield achieved in the third quarter of 2019. Seven regions across the country have all experienced increases in rental yield. While these are challenging times, these figures offer some cause for optimism for landlords. Certainly, the rental market looks more positive than it did at the height of summer.

There will be many fresh challenges for landlords to face, but anyone looking for a reassuring sign about the current rental market can take comfort in a rising rental yield.

Steve Cox is the Distribution Director of Fleet Mortgages, and he spoke about these figures. Steve Cox said; “It’s clearly positive to see the majority of regions in England posting increases in rental yields, and those regions which have shown a very slight dip were already at relatively high levels, to begin with. We learnt from the post-Credit Crunch period over a decade ago that rents are not as susceptible to a recession as property prices, with many occupants more willing to opt for the shorter-term financial commitment offered by renting than longer-term property ownership.”

Demand for rental property is unlikely to diminish

One thing that landlords should consider is demand for rental property is unlikely to diminish. Even with the stamp duty holiday encouraging market activity, there is still going to be sizable demand for rental accommodation.

Also, some landlords are capitalising on the stamp duty holiday to expand their rental property portfolio. You still have to pay the additional stamp duty charge for an additional property, but the overall cost of buying property is lower.

Steve Cox also said; “Demand for rental property is clearly holding up in most regions and the underlying demographics suggest that property investment will remain a good choice in the years ahead. Within a shorter time-frame, the fact that – in England at least – the stamp duty holiday is available to landlord borrowers has undoubtedly been a factor in the increased interest in property investment purchases, with both new and existing landlords looking at the opportunities available, and seeking to secure the savings that are available from the holiday.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

 

EPC Changes Proposed – What Landlords Need To Know

One of the most challenging aspects of being a landlord is staying in touch with legislation. At the start of 2020, English landlords had more than 150 pieces of legislation to comply with. With this guidance being updated regularly, and new legislation being passed, it is often a full-time job keeping up with the administrative side of being a landlord.

At Just Lets, we understand the challenges of being a modern landlord. We are pleased to say we help many landlords in and around Peterborough, and we want to ensure you make informed decisions.

Your rental property must comply with MEES regulations

Not only do we keep our landlords up to date with current legislation, but we also ensure they receive an early warning about proposed changes. While there is no need to act now, landlords should be aware of proposed changes regarding the Energy Performance Certificate (EPC), Minimum Energy Efficiency Standards (MEES) and the standard of your rental property.

If you let property, you must hold a valid EPC. Also, the rental property must be classed as an E or better. If your rental property is classed as an F or a G, it is not suitable for letting purposes. (As always, there are some exemptions, but the vast majority of rental property must meet these standards.)

There is no denying energy efficiency is an important topic, and it is an issue that tenants are interested in. When a rental property has a good standard of energy efficiency, it is easier to heat. This lowers energy bills, making the property more appealing to tenants.

In the long-term, landlords also benefit by improving the energy-efficiency rating of a rental property, but most focus falls on the tenant.

Are changes coming to energy efficiency in rental property?

The new proposal comes from the Department of Business, Energy and Industrial Strategy. It is looking for the EPC standard on private rental properties to be a Band C or better by 2025 for all new tenancies, and by 2028 for all tenancies.

Paul Offley, the compliance officer at The Guild of Property Professionals, has spoken about the proposed EPC changes.

Paul said; “Following the recent reports in some of the industry press, I have received a number of concerns relating to the proposal to introduce a new minimum energy efficiency rating for the Private Rental Sector (PRS) in England at level C, which would apply for all new tenancies from 2025 and all existing tenancies from 2028. As you can imagine there are a number of properties where this will impact significantly on landlords in some areas where the cost of energy improvements could be high.”

Paul continued by saying; “Landlords may also be concerned at the increased costs they may face, especially as some may have issues with rent arrears from their tenants who have been impacted by coronavirus – but ‘don’t panic’ is my clear message. At this stage the government has announced its intention and issued a consultation process, everyone involved with the PRS has until the end of December 2020 to have their say and submit a response to the consultation; so don’t suffer in silence this is your opportunity to have your say on this topic.”

If you feel strongly about this matter, you have time to voice your opinion. You can email PRStrajectoryConsultation@beis.gov.uk, or visit the website at https://beisgovuk.citizenspace.com/energy-efficiency/improving-energy-performance-privately-rented-home/.

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Landlords – Top Tips On Maintaining Property In Cold Weather

With the temperatures falling, we are moving to the end of autumn and into winter. While many people appreciate nature at this time of year, there is a lot to be said for creating a warm and cosy environment to make the most of staying indoors.

As a landlord, you should consider the importance of maintaining your rental property in cold weather. Your initial focus should be on providing tenants with a pleasant experience. However, in the long-term, you benefit from maintaining your property.

We can help local landlords prepare for winter in Peterborough

At Just Lets Peterborough, we are on hand to ensure you receive all the support you need in maintaining rental property. We are pleased to say we work closely with landlords in and around Peterborough. This ensures we know the key local issues, and that we offer relevant guidance.

We also stay in touch with guidance from leading names in the rental sector. ARLA Propertymark has recently issued a seven-point guide for landlords to maintain property in cold weather, and we are more than happy to share these points with you.

The seven points are:

  1. Clear out the gutters at your rental property
  2. Impress the importance of opening windows from time to time
  3. Bleed radiators
  4. Watch out for trip hazards associated with winter such as icy paths
  5. Review the boiler
  6. Review safety aspects such as security alarms, external lights and good practice in ensuring properties are secure
  7. Review your insurance policies

These are all important steps to consider when preparing your rental property for winter. Some of the tips are solely aimed at the landlord, such as reviewing the insurance policies relating to the property and reviewing the condition of the boiler. Some of the tips are aimed at tenants, but as a landlord, you should look to impress the importance of some of these tips.

At this time of year, communication is crucial between landlords and tenants. Tenants should feel comfortable about raising problems, and landlords should provide clear instructions on how to best care for the rental property.

Get help in managing your rental property

Of course, when you have a property management service, you don’t have to worry about liaising with your tenant, or carrying out these tasks. At Just Lets, we offer a range of property management services in and around Peterborough. If you want to take the stress out of maintaining your rental accommodation in time for winter, we are here to assist you.

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Busiest Time For Rental Market – Even In 2020!

Information provided by ARLA Propertymark suggests private rented sector tenants are looking for a property than ever before in the United Kingdom. However, landlords are also entering the market in more significant numbers, as there has been an increase in the number of rental properties available.

The organisation’s Private Rented Sector Report suggests there was an average of 97 newly registered tenants in July. This was a significant increase on the 79 new tenants per branch in June of this year. Back in January 2020, which seems a lifetime ago, the highest figure was 88 prospective tenants per agency, so the increase is also real when reviewed alongside pre-COVID figures.

The Private Rented Sector Reports also indicates there was a record high for managed properties per branch in July. An average of 208 rental homes were available per agency branch.

Phil Keddie, president of ARLA Propertymark, said: “Our latest figures show the rental market still continues to gather momentum following the reopening of the housing market in May. We have seen a record-breaking level of rental stock, and demand from tenants continues to grow, providing a positive outlook for the future of the private rented sector.”

It is hard to look at 2020 figures alongside other years, as this is a year like no other. However, it is helpful for landlords to familiarise themselves with what are the traditionally active times of year in the rental market.

Between April and June, enquiries rise in the rental market

As a rough rule of thumb, most landlords experience an increase of enquiries between Easter and the May Bank Holidays. There is a number of factors which might explain this, but the number of Bank Holidays on offer at this time of year, providing many people with three- and four-day weeks, might justify why many people find it easier to arrange rental property at this time.

July and August represent the peak months in the rental market

July and August are recognised as the peak months in the rental market. This ties in with the 2020 figures announced by ARLA Propertymark, and it is easy to justify why this is a busy time of year.

People might have more spare time in the summer months, moving in better weather is easier, and families want to be settled before the start of a new school year.

September is a busy month for towns and cities with a student population

The student market is critical in many buy to let areas, which means the start of the new academic year is a busy time for landlords. While it is best for students to arrange their accommodation in advance, it is no surprise to learn it is a “last-minute” thing for many students.

From October onwards, there are fewer enquiries in the rental market, but there is often an increase in the quality of tenants.

Also, it must be remembered that 2020 is not your standard year. With the UK in recession, and various economic forces in play, there might be a greater than usual level of demand for rental property. Job changes and people re-evaluating their finances often leads to greater demand for rental property.

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property or tax requirements, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Opportunity for BTL Landlords

The stamp duty holiday will hopefully help buying a home more affordable for many people. However, there is criticism for the measure, with many industry experts stating it does very little, if anything at all, for first-time buyers.

There is a suggestion the stamp duty holiday is more beneficial to existing homeowners looking to upscale their home. Many industry experts have also suggested buyers in London and the South East of England will enjoy a greater benefit than buyers in other parts of the country.

Stamp duty holiday lowers cost of buying property

It should be remembered though that the stamp duty holiday also provides an opportunity for buy-to-let landlords. There is an opportunity for landlords to lower the amount of money they spent on rental property.

If you have been considering expanding your property portfolio, the next few months might provide you with an ideal opportunity to do so. This is the case being made by Mortgages for Business, who implore landlords to at least consider the possibilities offered to them by the stamp duty holiday.

Steve Olejnik is the Managing Director of Mortgages for Business and he said; “Clearly, landlords need to take advantage of the stamp duty holiday before the window closes in March next year. Property investors are in a better position to qualify for a mortgage now that reduced stamp tax allows them to wield a larger deposit. Furthermore, if the measures Rishi Sunak has put in place underpin property values, the cut will help those looking to remortgage as well.”

Steve continued by saying; “Less obviously, landlords may not appreciate they need to act while they are well-placed to move in a way that owner-occupiers are not. We know property investors have been remortgaging with a view to picking up some bargains. Owner-occupiers have not been doing the same. Landlords have been preparing since the start of the lockdown, remortgaging to enlarge potential war chests with an eye on bagging bargains in the future. First Time Buyers don’t have that flexibility and owner-occupiers haven’t been remortgaging in the same way.”

Are you ready to expand your property portfolio?

Not every landlord will feel the stamp duty holiday is an opportunity for them to expand their business. With the UK being in a recession, many landlords will prefer to sit and wait for more clarity before making a monumental business decision.

There is uncertainty in the economy, but this is a situation where demand for rental property increases. It is very unlikely that demand for rental property will diminish at any point in the near future, and demand is already outstripping supply.

Landlords who are in a position to further invest in their business have a chance to set themselves up for further success in years to come. This is also the opinion of Steve Olejnik; “That means landlords are currently very well-placed to seize the day. But that advantage won’t last forever. That’s why smart investors will start expanding their portfolios immediately, rather than waiting and then scrambling to try to do deals at the last minute.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property or tax requirements, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.