22nd November 2021
What Has The Pandemic Taught Us and How Has The Market Changed?
Recent research suggests that 1 bedroom apartments have the best rental yield, 2 bedroom flats are a close second and 3 bedroom flats/houses in third place. There are, of course, regional variations, but in general I would concur with these findings. So, does that make 1 bedrooms the best buy to let option? I have given advice to hundreds of Landlords looking to invest in buy to let properties, and as long as you follow the basic rules, every type of property has its advantages and disadvantages. There is no hard rule, it comes down to usage, location and market conditions. 1-bedroom properties will, in general, give you the best rental yield, but a 2 or 3 bedroom property will grow more in value delivering a better return in terms of capital growth. This evens things out over the medium to long term. If the housing sales market goes through a dip and you need to sell an asset, then 2- or 3-bedroom properties will often sell before a 1 bedroom. There are many variables in play and when it comes to buying the best property to maximise your return will be greatly affected by factors such as area, budget, local demand etc. If you need any advice, and cannot find the answers on my website, then please feel free to call or email me with any questions you may have. My advice is free of charge and comes with no strings attached. ...
The Rental Market In general, the rental market seems to be recovering well with some of the big Portals like Rightmove and Zoopla reporting record high activity levels. However, there is still a lot of available property with central London hardest hit. Stamp Duty Holiday A specialist Buy to Let Mortgage Broker has advised Landlords to take advantage of the new Stamp Duty ‘holiday’ and buy now before it finishes on 31st March 2021. Investors will still pay the extra 3% but with properties under £500,000, but that is all you will have to pay! It’s a great time to add to your portfolio. Capital Gains Tax The Chancellor has ordered a review of CGT and many Landlords are worried that they will once again be a target of the governments need to recoup some of their huge recent pay outs. PropertyMark, which includes the NAEA (National Association of Estate Agents) and ARLA (Association of Residential Lettings Agents), have asked the Government to think very carefully before disincentivising Landlords. Eviction Ban The eviction ban ends in August which will be great news for some Landlords. However, if you started a case before August 3rd, 2019 then you must ‘reactivate’ it. You must inform the courts that you still wish to proceed, or the case will simply be discarded. The courts will have an enormous backlog and will prioritise Domestic Abuse cases and Anti-Social Tenant cases. It always has been PPM’s advice that you try, wherever possible, to resolve a dispute without going through the courts. Please feel free to ask my advice on any tenancy issues you...
Having extended the eviction ban for a further month at very short notice the government have issued further guidelines that come in from the 1st September. You will only have to give 4 weeks notice of intention to repossess your property on grounds of anti-social behaviour; with just 2 weeks notice for tenants who have committed acts of domestic violence, and 4 weeks notice for tenants who have built up 6 month rental arrears. Whilst this is a (very) tiny step forward, you will still need a court order to evict, and with courts likely to be almost a year behind due to the current restrictions, you are still in for a long and painful process. Should Landlords Manage Their own properties? With all the current legislation changes, and the Governments determination to protect the tenants from Landlords (I'm not entirely sure what they think Landlords are like) it's a nightmare trying to keep up! You say, or do one thing incorrectly, and you could see yourself in a year plus long ride through the court system. Scaremongering aside, Landlords need to remember that renting your property is a business, and all personal feelings have to be set aside. In a recent survey of Lettings Agents 90% of them said that tenants, at the viewing stage, always ask ‘who is managing the property?’ With 70% of those saying that, given a choice of properties, they would go with the property managed by an agent. I believe tenants feel that dealing with an agent is less personal, they feel that any repairs will be done quicker and that if things go wrong they are better protected when dealing with an...
What Has The Pandemic Taught Us and How Has The Market Changed?
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