22nd November 2021
What Has The Pandemic Taught Us and How Has The Market Changed?
It’s an exciting time when you first venture into property investment, but beware there are a number of things to consider so you avoid the dreaded rookie mistakes. Research, Research and a little more Research! I would always recommend you purchase your first buy to let in a location you know well, subject to suitability. Don’t be afraid to talk to local agents about what types of property they have the best demand for as these are likely to also have the best returns. What type of tenants do you wish to attract and what would their main criteria be? Take the rental value the selling agent gives you with a pinch of salt as it is in their interests to sell you the property. Get at least 2 more valuations. Take the lowest rental value to do your calculations and you will not be disappointed. Try and also pick local independent agents as their local knowledge is normally far superior to the big corporate agents. Location, Location, Location! A well-used phrase I know but never truer than when you buy a rental property. Rental properties must be near all facilities such as transport links, shops, gyms, parks etc. etc. People who rent will always make practical decisions and properties must ‘tick their boxes’. Tips. Do not make emotional decisions! A stunning conversion flat or Victorian cottage may take your breath away, but it may also take your profit away! Older properties will take a lot more looking after and these costs are always going to be yours! If they have been recently refurbished, then great but you must look long term. Do not be put off by ugly...
The Ministry of Housing, Communities and Local Government have now introduced their guidelines to the new Electrical Safety Regulations that come into force on 1st July 2020. I have included a link to the Governments websites, but what follows is an overview of the key takeaways from the new legislation. When do I need to do an Electrical Safety Inspection? Any new tenancy agreement signed after 1st July, 2020 will require an Electrical Safety Inspection. NOTE: A certificate must be provide to the tenant prior to occupation. What if I have an existing tenancy signed prior to July 1st, 2020? You have until 1st April, 2021 to comply with the new legislation. NOTE: if you renew a tenancy agreement anytime between 1st July 2020 and 1st April 2021 (even to the same tenants) an electrical inspection will become due at that point. Do I need to provide the tenants with a copy of the Electrical Safety Certificate? Yes. Within 28 days of the inspection on an existing tenancy and prior to a tenant moving in on a new tenancy. What will the inspection cover? The inspection will investigte if any electrical installations are overloaded. That is, if there are any potential shock risks, or fire hazards, any defective electrical work and if there is a lack of earthing or bonding. How often do they have to be done? Every 5 years. What happens if my property fails? You will have 28 days to rectify any issues and supply your tenants with a certificate. What if my property is brand new, or has just been rewired? If this...
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...
What Has The Pandemic Taught Us and How Has The Market Changed?
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