Landlord Newsletter - November 2016


The lettings market here at Hunters has been busy & buoyant over the Spring & Summer months with demand levels at an all-time high! Negativity in the media is not how we see the market and our lettings offices are reporting that tenancy levels have increased by nearly 20% in comparison to 2015. It is not doom & gloom; Rightmove also report that enquiries from potential landlords and investors are now up 30% since May, following a short-term dip as additional stamp duty changes came in on 1st April highlighting that confidence in the rental market is back on track.

Our Yorkshire region has reported some interesting facts too on rent levels with rents being achieved by a number of our offices in excess of the regional average as reported by Homelet* of rents being achieved on a daily basis by 100’s of their other clients.

*Homelet Rental Index



Landlord survey

Thank you to those of you who took part in our first ever landlord survey. The response from you was fantastic and gave us a real insight in to how you, the customer, feels about the lettings market and about our service. We will take on board your feedback and always strive to improve on customer service.

We constantly read reports in the media about what landlords (and tenants think) but let me share some key points with you!


• When choosing an Agent, does Accreditation matter? (Eg; ARLA, NALS, SAFEagent)
80% of you said that it does.  We are really pleased with this – over 50% of our Network are members of an accreditation with more applying weekly – we know how important it is to act as a professional agency.

• What is the most important issue to you as a landlord?
Rental Price, Void Periods and Damage were equally split at 27% each, the “other” comments included, in order of multiple mentions; Tenant quality, regular inspections, communication, agent doing their job, legal compliance.  We found this useful and interesting as many people made mention of tenant referencing – we use the UK’s biggest Referencing agents and know that this can give an insight to the potential tenants.  We also as part of the fully managed service carry out management visits during the tenancy to keep an eye on your investment.

• Are you looking to invest in more lettings properties in the next 12 months?

Over a quarter of people said they would be!  This is a clear indication that you too have confidence in the letting market and this is fabulous news.  Are we talking to you about this?  Our Sales Teams will have a variety of properties for sale in your area or throughout the UK so why not get in touch?  We also have a dedicated Business Development Manager Maryam Bham, who looks after investor landlords who might be able to help.  She can be contacted on 07808 329 157,


• Do you have Warranty cover for non-payment of rent?
60% said no you do not.  This % is rather high and ideally we want all landlords to have correct protection should the tenant not pay the rent – what would you do if the tenant didn’t pay rent for 4 months due to a change in personal circumstances?  We can offer a solution for this so please get in touch with your local office who can advise if you can still apply for this now or get it on standby for your next let.  (Rent Recovery Warranty can only be applied for within 14 days of the tenancy start date with no exclusions).  Protecting the income from your investment is so important.

• How do you make sure your properties meet new legislative requirements? Eg; Gas Safety, Legionnaires, Smoke & CO Alarm checks?
79% of people responded that they would speak with their agent. 11% said they’d research themselves.
This is interesting and we are really pleased that you come to us for our expert advice.  Via these newsletters we try to keep you updated on new legislation and we work hard to keep up to date with what you are responsible for.  We have stringent processes in place so we can carry out the necessary checks and will keep in touch with you about what is needed and when.  Some people search online for information which is readily available but being able to talk to someone about the requirements is quite often more helpful.
 



Wear and Tear allowance!

The Wear and Tear allowance for fully furnished properties has been replaced with a new relief that enables all Landlords of residential properties to deduct the cost of ‘like for like’ or the nearest modern equivalent on such things as;

- Furniture
- Furnishing 
- Appliances (including white goods) 
- Kitchenware 

This new relief also includes any cost incurred by Landlords for disposing of the old item.

Records need to kept to record the actual expenditure and exclude elements of improvements to the property.

All of this information can be provided by Hunters Accounts for you on your monthly statements. Should you, when submitting your tax return require addition copies please visit our landlord portal; Registration is easy – please follow the link; http://www.hunters.com/register-as-a-landlord and select the “Landlords Statement Online” button* 

This new wear and tear allowance came in to play for the tax year 6th April 2016. If you have any questions regarding the change please contact HMRC wearandtear.replacement@hmrc.gsi.gov.uk

*Only applicable for certain branches



Post Brexit – It’s not all doom and gloom for Landlords/ Investors

Despite Brexit and the Governments introduction of 3% Stamp duty Tax on 2nd homes we can reveal that our* investor registration grew by 80% in comparison to last year. This comes on the back of the Office of National Statistics data showing that the UK economy has grown faster than expected in the wake of Brexit, at 0.5%. 

More interestingly, our landlord survey suggested that 1 in 4 landlords would like to re-invest in properties, and so with this in mind we have gathered a sample of properties offering fantastic returns with excellent growth potential giving investors safe and simple investment opportunities that deliver outstanding returns.

For more information on the below properties or free advice on how to grow or start your property portfolio contact our Business Development Manager, Maryam Bham on 07808 329 157.

    

McClintok, Clarence Dock, Leeds, LS10 
Attractive 1 bed riverside apartment currently tenanted            
Price: &119,750
Ground rent: &250 (per annum)
Service charge: &974.52 (per annum)
Current rent: &675 pcm
Net return: 5.7%                                                                


    

Riverside House, Blackfriars Road, Manchester, M3 7FU
High standard student accommodation located extremely close to
Manchester City Centre 
Price: &62,950
Potential rental income: &325 pcm
Guaranteed net return: 6%


    

Invicta Court, York, YO24                             
1 bed end town house in need of modernisation within easy reach
of York City Centre
Price: from &100,000
Freehold property
Potential rental income: &550 pcm
Net return: 6.6%

*Hunters Property Group branches: Bingley Lettings, Easingwold, Harrogate, Leeds Lettings, Manchester, Wetherby and York,  . 

These particulars are believed to be correct and have been verified by or on behalf of the Vendor. However, any interested party will satisfy themselves as to their accuracy and as to any other matter regarding the Property or its Leasehold charges. Prospective purchasers are always advised to commission a full inspection and structural survey of the Property before deciding to proceed with a purchase. 

 




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