July 2021 Update
The lettings market is ramping up as we head into summer, the busiest time of the year for the private rented sector. That hasn't stopped the news cycle, however, with the government announcing how right to rent checks on EU, EEA, and Swiss citizens will be carried out from 1 July 2021. Plus, it also confirmed that virtual checks on all other nationalities will continue until 31 August 2021
While all eyes were on the sales market ahead of the June 30th Stamp Duty Holiday deadline, the lettings market recorded a strong month according to the Goodlord Rental Index, with voids continuing to decrease and rents strengthening across England.
CHANGES TO RIGHT TO RENT CHECKS FOR EU, EEA, AND SWISS CITIZENS AND EXTENSION OF "COVID-ADJUSTED" CHECKS
The government has confirmed how letting agents and landlords will check the right to rent status of EU, EEA, and Swiss citizens from 1 July 2021, many of whom will no longer be able to physically document their right to rent in England after this date. Citizens from the EU, EEA, and Switzerland who have successfully applied to the EU Settlement Scheme or for a UK visa will need to use the government's new "View and Prove" online service to share their right to rent status with landlords and letting agents.
Meanwhile, the government has extended the virtual right to rent checks on all other nationalities in England by an extra month to 31 August 2021, to reflect the extension of lockdown restrictions. The government has also dropped its requirement for letting agents and landlords to carry out retrospective right to rent checks on tenants for this period.
We check your tenants' right to rent as part of all of our services, but if you have any questions on the changes, don't hesitate to get in touch.
WIND DOWN OF FURLOUGH SCHEME BEGINS WITH REINTRODUCTION OF EMPLOYER CONTRIBUTIONS
Businesses using the Government's Coronavirus Job Retention Scheme - also known as the furlough scheme - will be required to make a contribution to the cost of their furloughed employees wages. From 1 July 2021, the government will reduce its contribution to 70% of wages, down from 80%. The level of the employer's contribution will increase to 20% in August and September, until the scheme ends on 30 September 2021. Since the start of the pandemic, more than 11.5 million employees and 1.3 million employers have been supported by the Coronavirus Job Retention Scheme. Although the number of people using the scheme has dropped significantly since the beginning of the year, the most recent government data shows that at least 3.4 million people are still relying on furlough for their income. The end of the scheme could lead to a rise in unemployment, putting some tenants' incomes at risk. Forecasters at the Bank of England, as well as the government's spending watchdog, the Office for Budget Responsibility, are "expecting a small rise in unemployment after furlough ends".
We're still keeping in touch with your tenants to ensure that we're up to date on their current situation. If you have any questions or concerns, please feel free to get in touch.
OPTIONAL: We offer Rent Protection Insurance, which pays out for up to 15 months’ worth of rent, and it will continue to pay out for 75% rental payments for up to two months after vacant possession. The policy is designed to protect you against the risk of a tenant not paying their rent, breaching their agreement or damaging the property. Get in touch if you would like to learn more.
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Apr 11, 2022
Property Market Update: March 2022
Interest rates have increased again, the government’s Homes for Ukraine scheme has launched, and one major lender has reported record annual price rises. Read on for all this and more in our March property market update. With the clocks going forward at the end of the month, lighter evenings and Easter just around the corner, the traditional Springtime boom could also be on its way! And none too soon as there is still a desperate shortage of housing stock. Here are some of our predictions for what to expect next month… Now is the time to sell Figures recently released by property portal Rightmove have revealed that the UK’s average property price saw its most significant month-on-month increase for 20 years between January and February this year. According to their stats, the average asking price of a property rose by £7,785 in the first two months of the year, as sellers have increasingly been taking advantage of a shortage of homes for sale. The figures have also revealed the startling increase in house prices since the start of the pandemic, with average asking prices having risen nearly £40,000 in the past two years, compared with a rise of around £9,000 in the two years prior. For homeowners who have been considering selling their property, now is a great time to bite the bullet. Spring is traditionally the best time to list, with the most active buyers on the market, and with COVID-19 restrictions now lifted and house prices expected to cool off over the next few months, it could be the last opportunity to take advantage of increased asking prices. Nationwide reports record cash rise The UK’s biggest building society, and one of its biggest lenders, has reported a record rise in the cost of a UK home. According to figures released by Nationwide, the cost of a typical home rose by £29,162 in the past year – the biggest cash increase in property prices since they started collecting comparable data in 1991. This means the average asking price across the UK reached £260,230 in February, with the increased cost of living appearing to have little effect on house prices. The findings are bad news for first-time buyers struggling to get onto the property ladder, although with many property experts forecasting a slowdown in house prices in the coming months, there may be some respite for those looking to take their first steps. Buy-to-let mortgages becoming more appealing for investors Research from Mortgage Broker Tools has shown that affordability for buy-to-let mortgages is at its highest point since they started collecting data. According to their figures, average maximum loan sizes have increased by 13% in the past year, with the average currently being a little over £421,000, which represents a £20,000 increase in the past two months. And in further good news for potential landlords, figures released by Moneyfacts show that there are currently 2,235 mortgage products available to first-time investors – a considerable increase on the 1,311 products available at the same point 12 months ago. Government launches Homes for Ukraine scheme In response to the war in Ukraine, the UK government has launched the Homes for Ukraine scheme, which asks people who can, to offer a room to refugees fleeing the conflict. You’ll need to confirm that your home is available for at least six months, and you’ll be entitled to a monthly payment of £350 for up to 12 months, although you won’t be expected to cover the cost of food and living expenses. To register your interest in the scheme, just visit the government website. Interest rates rise again The Bank of England has increased interest rates for the third time in four months to try and lessen the effects of the continued cost of living increases. The rise will directly impact around two million homeowners who have either a variable or a tracker mortgage, as they’ll see their monthly repayments increase again. For homeowners with a £200,000 mortgage, this will mean around a £42 increase to their monthly repayments. And Finally… Homes for under £10k While asking prices may have hit record highs and youngsters feel increasingly uncertain they’ll be able to get onto the property ladder, it’s certainly not all doom and gloom for would-be buyers. A recent post by major property portal Zoopla has revealed a list of 14 properties for sale for £10,000 or less. While some will need extensive work doing to them, and some will fetch higher at auction, it does show that there are still bargains to be had despite the significant increases in prices over the past couple of years! For more property news and updates and a more detailed overview of Greater Manchester area, get in touch with Property Genius. We are your local property experts.
Mar 21, 2022
Property Market Update: February 2022
Interest rates have increased again for the second time in quick succession, and a quiet Wiltshire town has leapt up the property hotspot list! In good news for tenants, the government has announced new reforms to protect renters. Read on for all this and more. WHAT CAN SELLERS ENTERING THE MARKET IN MARCH 2022 EXPECT? With all COVID-19 restrictions being lifted by the end of March (if not sooner), and spring just around the corner – which is traditionally a hot time of year for the property market – here are some of our predictions for what to expect next month… HOUSE PRICE GROWTH SET TO SLOW After a strong start to the year, house prices are forecast to stabilise over the coming months. The UK’s biggest building society, Nationwide, reported a sixth consecutive monthly increase in January, with prices rising 0.8% on the previous month and 11.2% annually. Competitor Halifax also announced increases of 0.3% from the previous month and 9.7% annually. However, despite these consistent increases over the past 12 months, both lenders have predicted a cooling of the housing market in 2022, with the cost of living increases and limited supplies of new housing stock coming onto the market being cited as major factors. Movers and Shakers CORSHAM NAMED AS A TOP PROPERTY HOTSPOT The picturesque country market town of Corsham in Wiltshire has been named as the UK’s newest property hotspot. The town might not be instantly familiar by name, but TV fans will recognise it, as it’s appeared in numerous period dramas, from Poldark to Lark Rise to Candleford and Tess of the D’Urbervilles. And with demand for more open spaces and work from home offices remaining strong, the town on the edge of the Cotswolds is seeing a big increase in buyer activity. Figures released by major property portal Rightmove show an increase in buyer demand of 124% compared with 12 months ago. Average prices have inevitably increased too, with a jump of 6% year on year. The majority of buyers are Londoners seeking more bang for their buck, and with average prices in the town of a little under £330,000, it’s no surprise that it’s attracting many out-of-towners. First-Time Buyer News AFFORDABILITY ISSUES REACH RECORD HIGHS One of the UK’s biggest lenders, Nationwide, has announced some startling figures which affect first-time buyers’ affordability. While it’s widely known that house price growth has outgrown wage growth, the building society has laid bare just how much price increases have outpaced wages since the pandemic began. Their figures reveal that a 10% deposit on a first home is now equivalent to 56% of total gross annual earnings, which is a new record high. Buy-to-Let News SECTION 21 TO BE ABOLISHED In a move that will protect renters, the Government has announced plans to abolish Section 21, which allows landlords to evict tenants without any reason. The plans are part of the Government’s Levelling Up White Paper, which is aiming to help poorer communities become more prosperous. Other changes that are planned include ensuring that privately rented properties meet minimum standards, and the introduction of a landlords register, with an aim to crack down on rogue landlords. Latest news for Landlords ALMOST 1/3 OF TENANTS ADMIT TO KEEPING HIDDEN PETS! A recent survey has found that 27% of tenants have admitted to hiding pets from oblivious landlords for more than three years. The most commonly hidden pets are birds and rabbits, while somewhat surprisingly, horses are in third place! We’re not sure entirely how you hide a horse – suggestions on a postcard, please! The number one way to avoid landlords discovering pets during an inspection was to take them out for a walk, which was followed closely by asking friends to look after them, and then asking a neighbour to keep hold of them during inspections. The study also revealed that the most pet-friendly landlords are in Norwich, with the least friendly being in Edinburgh. Mortgage News INTEREST RATE INCREASE FOR THE SECOND TIME IN THREE MONTHS The Bank of England has announced an increase in its base interest rate from 0.25% to 0.5% – the second increase in just three months. The increase will mean a rise in monthly mortgage repayments for around two million homeowners with variable-rate mortgages and will add around £24 per month to a £200,000 mortgage. The rise comes hot on the heels of Ofgem’s announcement that energy bills will increase by 54% this year, as millions of households face a squeeze on the cost of living. And Finally… A home with a rather unusual feature in the front garden made headlines on social media recently. The 2-bedroom bungalow in leafy Nursling, Hampshire, has a spacious back garden with views across lush green fields, but it’s the enormous telephone pylon in the front garden that really caused it to go viral. You can check it out here, but hurry – the property’s already sold, subject to contract. Property Genius are your local property experts for the Chorlton, Manchester area. Call us on 01618813028 or email contactus@property-genius.co.uk to find out how we can help you buy a new home or sell your property.