This year is proof that life as a landlord is not as simple as it used to be. Reforms for tenants along with new laws and legislation will make it a bit more complex. That said the great news is that demand for rented properties is still extremely strong. There is a chance you could pick up a bargain as property prices slow. These changes help protect landlords and tenants so it should be another good year where standards across the industry rise.

 

Better protection for tenants

The renter's reform bill could become legislation this year if the government have their way. Giving more rights to tenants will also force unscrupulous landlords to up their game and stop cutting corners. This will raise standards and rights for renters and stop your properties to let potentially suffering from bad landlords undercutting you.

 

Higher capital gains tax

The tax-free allowance for landlords selling a property will be reduced significantly from April. This means you could pay more capital gains tax, so if you want to avoid it, and you are thinking of selling, better to sell sooner rather than later. There will be further cuts in 2024, meaning your tax relief when you decide to sell will be halved.

 

Buy-to-let mortgage rates

Mortgage rates while higher than they used to be, are now much more stable than last year. This means you can plan for the future once again and calculate costs more accurately.

 

Higher demand

In 2022 demand for rented accommodation was huge. This year demand is still very strong.  Fewer people can afford to buy due to the cost-of-living crises and the hike in interest rates. It’s expected that landlords will increase rents in order to cover costs but also to reflect the huge demand and get a better rental yield.

 

Add to your portfolio

With house prices levelling out and falling now is the time to add to your portfolio. Rental yields are good, and demand is very high. Some landlords will choose to sell, while savvy investors will seek new properties to develop as buy-to-let businesses. Asking prices are much more open to lower offers than last year so you might just acquire something that before was not as good as an investment.

 

Financial help for energy efficiency upgrades

Landlords who meet certain criteria might be eligible for government assistance with £1bn to help homeowners to insulate their properties. The aim is to improve energy efficiency which will help landlords with providing energy-efficient, appealing homes.

 

Outlook

There is a lot going on in 2023, and if you are a landlord you are most likely to incur more costs. With rental demand growing now is the time to invest while providing great places to live for tenants. As the industry becomes more regulated, standards rise in so many ways, elevating the industry and creating a more stable investment prospect.

 

Tennant demand has never been better. Browse our properties.

 

Emergency property issues aren’t good for tenants or landlords, and the best way to safeguard against these potential nightmares is to take preventative measures before they arise. Then you can sleep soundly at night in the knowledge that you have done everything you can to drastically decrease the odds of a costly, dangerous, or life-threatening emergency. 

 

Carry out these safety checks regularly 

 

Gas: A Gas Safety Certificate is a legal annual requirement. It's perhaps the most obvious and well-known of all home safety certificates, but it's less known that it applies to all gas appliances, not just your gas boiler. 

 

Electrical: All fixed electrical appliances need to be inspected and tested every five years by a qualified electrician. 

 

Don’t forget the fuse box: If you are letting your property, you might find that the existing fuse box is obsolete and does not meet current safety standards, so it's best to check this with a qualified electrician. 

 

Smoke alarms: It's not expensive, and it's a legal requirement that there's one installed on every floor. The potential damage caused without them can be catastrophic, cause death, and if fitted and not correctly maintained, can affect insurance coverage. A carbon monoxide alarm should be installed in every room which is used as living accommodation containing a fixed combustion appliance (excluding gas cookers).

  

Plumbing 

 

Drains: Blocked drains cause flooding, which in some cases leads to costly repairs and uninhabitable homes. Prevention is simple – all you need is a bottle of drain cleaner, which you can buy from any supermarket. 

 

Pipes: Insulating pipes is another inexpensive way to prevent a potentially hugely costly disaster. In winter, pipes contract in the cold and then heat up once in use. This repeated process can cause them to crack, leading to an even bigger leakage of money! 

  

Regular inspections 

It’s always a wise move to have a clause in your tenancy agreement that, with written permission requested, you can inspect your rental property within 24 to 48 hours. You can’t legally enter the property without the permission of the tenant, and this allows you to regularly check the state of your property should you feel the need to do so. 

  

Landlord insurance  

Differing greatly from conventional house insurance, a private residence policy will not cover you if you let your property. A good landlord insurance policy is worth every penny in the face of devastating risk; it covers damage, loss of rent, and legal expenses, plus almost anything else you feel could be a risk. A good conversation with a reputable insurance company is time well spent in order to find the right level of cover to protect your investment property. 

  

Make it happen 

Taking these measures now will keep your rental property safe and keep you informed of any maintenance or repair issues that may be on the horizon before they become major issues, so in terms of investment, they are no brainers! The good news is that all of this can be carried out by professionals, from insurance brokers, gas engineers to electricians. Getting in touch now with the right people won’t take long and could save you a lot of money! 

  

Need help finding the right tenants for your property? Contact us today. 

 

 

Average house prices in the UK have since the pandemic risen by £42,000.* The value of your home has increased rapidly in recent years, and this puts you in a great place even if there has been a bit of a slowdown, but then you could be forgiven for asking: What slowdown? House prices are stable and, at times, increasing, and to gauge the market by the unpresented growth in the past few years is a little unfair. Nonetheless, most of the value gained, or in some cases, the continued increase in value still exists as equity in your home. Even if you have lost a little value, you are still in a good place. A little bit of market cooling leaves more scope for getting your hands on the keys to a better home with a bigger discount without the frantic price bidding of past years.

The home improvement boom
It’s no secret that many homes had thousands spent on them during the pandemic. Many people, due to travel restrictions, chose to spend money on their homes instead of holidays. As a result, many homes are now in beautiful condition. Freshly decorated with external and internal renovations, resulting in homes with great work-from-home spaces and outdoor living areas that are ready and waiting to be lived in. This really does make a huge difference in the quality of your home and work-life balance. Homes with kitchens that inspire you, gardens that take your breath away, and bathrooms boasting cutting-edge design.

More mortgage choice
Mortgage choice is returning to the market, with thousands of options now available. So in essence, you will have a lot of decisions to make when it comes to what home you want and what mortgage you require. In many ways, all of this makes the prospect of moving very interesting compared with past years. Some home buyers are choosing to take interest-only mortgages, knowing they can overpay their mortgages, which releases some of the pressure on financial commitments.

Interest rates
Mortgage interest rates are falling, and the recent announcement of the IMF (International Monetary Fund) suggests that interest rates could return to pre-pandemic levels. ** The suggestion is that the high interest rates that many of us are paying at the moment are not a long-term deal. It could be the case, and it’s accepted by many analysts, that in the not-too-distant future, we will be paying less for our mortgages.

A bigger selection of homes
Compared to last year, the stock of homes for sale in the UK has been boosted by 60%.* The spring market is rapidly becoming the summer market. And perhaps the enticing thought of moving to a perfect home in time for summer is too much to resist for some home movers. As home movers take the plunge, they put their homes on the market, adding to the splendid choice for you to explore. The market is in a better place than last year in many ways, but at last you can enjoy it without being flustered by a frantic rush to get your hands on the home you truly love.

Live the life you deserve by finding the home you love living in! Start your search now and browse our properties.

Zoopla*
IMF BLOG**

 

Mortgage interest rates have been falling slowly, and with the recent announcement from the IMF (International Monetary Fund) that inflation rates are predicted to fall towards pre-pandemic levels, analysts suggest that UK fixed-rate mortgage rates could reduce significantly. The really good news is that this could take effect in a matter of months. Forecasts have predicted that interest rates were due to start falling in 2024, with a further reduction in 2025, and this announcement simply speeds up that process.

Why are mortgage interest rates falling?
In the later stages of 2022, interest rates rose significantly, and the recent increase of 0.5% is believed by economists to be the peak of the rise. This creates confidence in the banking sector, so much so that mortgage interest rates are falling below 4%.* Economists are also predicting inflation to fall in the coming months, which will also help reduce interest rates.

House prices up to now
Average house prices increased by 5.5% in the year to February 2023.** This is a very healthy growth rate, as it is stable and not too fast. While there have been upward and downward fluctuations and rapid growth in recent years, house prices have spiralled upward due to extremely low interest rates and high demand.

What impact will lower interest rates have on house prices?
With house prices predicted by many analysts to start increasing in 2024. And in light of the IMF’s recent announcement, it stands to reason that house prices should start rising sooner rather than later. The good news is that if this happens, it should be at a moderate rate, and with a bigger choice of homes on the market and with a remaining overall shortage of homes, the housing market is built upon good foundations. But this begs the question: Should all of this encourage you to move now?

Is now a good time to buy?
The evidence suggests that now is a great time to buy. House prices are stable. And are set to rise sooner rather than later. There is a beautiful choice of homes on the market in stunning condition. Starter homes are holding their value really well, and if you want something bigger, the chances are you will get a good discount on a large home. Add to this the rapid accumulation of equity in recent years and the buoyant spring market that will remain so through the summer. This further increases the variety of properties coming to market.

Ask yourself, What's more important to you: money or happiness?
It’s easily done! You get tempted and swayed by all the talk in the media about interest rates, the cost of living, and so on, and you end up sitting on the fence. You think you will either save a fortune or make lots of money by waiting to see what happens. The truth is, there are so many more important reasons for moving. Your motives will be unique to you. Maybe you need more space for a growing family, maybe you fancy a change, downsize, or love the idea of living in a certain location. Ultimately, it comes down to finding your happy place. Can you really put a price on that?

Are you interested in your perfect home finding you? Browse our properties today.

Zoopla*
GOV.UK**

 

Summer is not all about the garden, although for most homeowners in the UK, it’s hugely important. The garden is as important – and for many, more important – than any room in the house. Outdoor living spaces are right up there in the ranks of what makes an amazing home. A good outdoor living area can add £10,000 to the value of your home.* The trick is to seamlessly blend the outdoors with the indoors. In many ways, it’s like adding another room to your home, and you have real freedom to create something special that adds to the quality of life in your home. Increasing feelings of wellbeing and providing an ideal place to relax, outdoor living spaces are what you make of them.

Design your outdoor living area your own way
There are no rules when it comes to creating your perfect outdoor living space. But there is one principle you should follow, no matter what your property plans are. Create it your own way. And today you are spoiled for choice. From outdoor heaters, pizza ovens, beautiful fire pits, decking, aluminium structures, and outdoor tiles to traditional paved-style patios and stones and gravel seating areas. That’s just for starters; you also have the little details that, once you have decided on the fundamentals, will embellish and elevate your newfound space. From candles to lighting – the planted kind, post lights, and lanterns—mirrors, garden sculpture, hammocks, outdoor stoves, and more.

Think outside the box
Are you a film buff? Buy a projector and set it up on a whitewashed wall! Perhaps you are more sporting and love the idea of watching the footy or the F1 on an outdoor screen. Invite your friends over and make a night of it. Everyone has their own unique tastes, and maybe you would rather grow flowers or grapes on a veranda.

Don’t worry about adding value
It’s so easy to become obsessed with the value of your property. Don’t think about this too much; if you create an outdoor space with an air of quality, then this will take care of itself. It’s also important not to overspend. If you are creating a path to the garden from the decking and you are on a budget, use stones; they are cheaper and require less labour.

You can have more than one!
Who’s to say you can’t have more than one outdoor living space? Build decking and a patio near the rear of your home, with a path leading to tables and chairs and a stove for the winter at the bottom of the garden. Then you have a place to soak up the sun and another to hide from the rain. Add heaters, and you can have an outdoor work-from-home space!

Hire the right help and build it to last
Maybe you can do some of the work yourself; perhaps you need to hire help for it all. Whichever approach you take, build your outdoor space to last. It will help when it comes to retaining the added value of your home. And it will look good and be a nicer place to enjoy. So if you lay decking and install trellises, treat them so they look good for years. Fusing your garden with outdoor spaces is easy, but remember that your garden will have to be maintained, so plan its design with maintenance in mind.

Leave a little scope for new ideas!
Perhaps this will become a long-term project, so do it in stages. There is always a new trend and new ideas, and leaving a little space to perfect, improve, or build on what you have leaves a little potential for buyers to add their own mark.

Browse our properties to find a home with your perfect outdoor living space, and you could be moved in time for summer.

Eliteoutdoorliving*