Tag: letting

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How to Decorate a Rental Property for Christmas

How to Decorate a Rental Property for Christmas

For many renters, the festive season is an exciting time to bring warmth and cheer into their homes. However, working out how to decorate a rental property for Christmas can sometimes be a bit tricky. Unlike homeowners, tenants often face restrictions on how much they can alter their living space, and the last thing anyone wants is to risk losing their deposit over a few seasonal decorations. That said, just because you’re renting doesn’t mean you can’t enjoy a beautifully festive home!

With a little creativity and some renter-friendly ideas, you can transform your rental into a cosy, Christmas wonderland. Whether it’s a splash of colour, twinkling lights, or the comforting aroma of cinnamon and gingerbread, small changes can make a big difference.

To help you this season, the team at City Realtor has come up with some clever ways to add Christmas spirit to your rental property in Tower Hamlets without breaking the rules.

7 Ways to Decorate a Rental At Christmas

Here are seven rent-friendly ways to decorate for Christmas. Whether you’re entertaining guests, enjoying cosy nights in, or just want to create a joyful atmosphere, these tips will help you embrace the season in style.

1. Create a Festive Window Display

While you may not be able to hang lights on the exterior of your property, that doesn’t mean you can’t light your home up like a Christmas tree from the inside! Using solar lights, holly garlands and pinecones, you can create a festive window display that makes your rental look Christmassy inside and out. Add some frosted window stickers or paper snowflakes for an extra magical touch. A festive window display is not only a treat for you but also for your neighbours and passers-by!

2. Wrap Garlands Around Staircases

No nails, blu-tack, or screws, is the key to decorating a rental for Christmas. By wrapping a festive garland full of ribbons, holly and winter berries around your staircase, you can make your hallway look warm and cosy from the moment you walk in! If you need to secure the garlands to the stairs, use invisible string so it’s unnoticeable and doesn’t leave any marks. Consider incorporating fairy lights into your garlands for an extra glow!

3. Go All-Out With Your Dining Room Table

If you can’t do much with the interior walls of your rental, make your dining room table the cosiest it’s ever been! Create your own festive centrepiece with candles, holly or scattered baubles and set the table with crackers, napkins, chargers, champagne glasses and other Christmassy accessories. Think about layering your tablecloth with a festive runner, adding name cards for guests, and incorporating seasonal colours like red, gold, and green for a stunning table setting.

4. Use Floor Space

One of the best ways to decorate a rental for Christmas is to use your floor space to add some Christmas cheer. Forget about hanging garlands on the walls and instead add freestanding ornaments like twigs with twinkling lights, piles of dried kiln logs or oversized lanterns to your floor space. Place a cosy Christmas rug or a basket of seasonal throws in the living room to add to the festive vibe.

5. Add Festive Smells

Nothing makes a home feel more like Christmas than the smell of fresh cookies, warm gingerbread or sweet cinnamon! A great rent-friendly way to decorate for Christmas is to invest in candles or essential oils that make your home smell merry. When lighting candles, never leave them unattended, or opt for battery-operated alternatives. You could also simmer a pot of mulled wine or spiced apple cider to fill your home with seasonal aromas.

6. Switch Up the ‘Normal’ Things

Another easy way to decorate a rental at Christmas is to switch up the normal things in your home for something jollier. Add red covers to your cushions, change your bedspread to a festive duvet, and drape white blankets over your sofa for a snowy look. Don’t forget about the bathroom too! A festive hand towel or soap dispenser can add a fun touch. Accessorising can add a warm, cosy and Christmassy vibe! 

7. Use Sticky Hooks

If you really need to hang things on the walls, use command strips or hooks that stick to the wall and leave ‘no mess’. Just make sure you’re using them on recommended surfaces that won’t create any damage to the walls. Sticky hooks are perfect for hanging lightweight decorations like fairy lights, stockings, or small wreaths.

Easy Renter-Friendly Christmas Decoration Ideas

  • Festive Door Mats: Place a Christmas-themed door mat at your front door to welcome guests!
  • Decorative Bowls: Fill decorative bowls with sweets, ornaments, or pinecones for an easy, festive touch.
  • Hanging Paper Decorations: Use paper snowflakes or stars to hang from ceilings with removable hooks.
  • Festive Ribbon Accents: Wrap festive ribbons around lamp bases or curtain ties for subtle Christmas flair.
  • Christmas-Themed Kitchenware: Swap your usual mugs, tea towels, or plates for festive-designed ones.

Looking For a New Rental Property in Tower Hamlets?

Are you looking for a new rental in Tower Hamlets? At City Realtor, our friendly team can help you find a rental you’ll love living in all year round.

View our listings or contact us on 0207 790 7702 for a chat about your requirements.

In the meantime, we’ve answered your common questions about decorating a rental property for Christmas.

Frequently Asked Questions About Decorating a Rental Property for Christmas

Can I hang decorations on the walls of my rental property?

It’s generally advisable to avoid hanging decorations on the walls of your rental property to prevent damage. Consider using floor decorations, window displays, or removable hooks for your Christmas decorations.

How can I create a festive atmosphere without drilling holes or damaging the walls?

Use floor decorations, window displays, garlands wrapped around staircases, and festive table settings to create a Christmas atmosphere without damaging the walls.

What are some renter-friendly Christmas decorations?

Renter-friendly Christmas decorations include floor ornaments, artificial trees with stands, festive tablecloths, candles, and essential oils.

How can I make my rental home feel cosy and inviting during the holidays?

Incorporate festive colours, textures, and scents into your décor. Use soft lighting and cosy blankets to create a warm and inviting atmosphere. Consider adding festive touches to your dining table and living room to make your rental feel more festive.

What Next?

Do you require a valuation or no-obligation advice on renting or letting a property in Tower Hamlets? Please contact our expert property team at City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, watch our YouTube Videos!

Good luck if you are buying a home, or considering putting your property in Tower Hamlets on the market. We’ve answered your FAQ’s here.

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November 2024 Property Market Update

November 2024 Property Market Update

As November comes to an end, the UK property market reveals key trends that shape buying, selling, renting, and letting activities. Shifts in the economy, regional differences in house prices, and changes in rental demand are shaping the property market in Tower Hamlets. This months update looks at the key trends and insights to help you stay ahead in the market.

Market Overview

The Office for National Statistics (ONS) reported that average UK house prices increased to £293,000 in August 2024, reflecting a 2.8% annual increase from the previous year. This growth is driven by consistent demand, with regional variations: England’s average price was £310,000 (up 2.3%), Wales £223,000 (up 3.5%), and Scotland £200,000 (a notable rise of 5.4%).

Meanwhile, private rent inflation remains high, with average UK private rents rising by 8.4% in the 12 months to September 2024. Average monthly rents in England reached £1,336, with London seeing the highest growth (9.8%). 

*Data from ONS October 2024 Bulletin

Navigating the Market as a Buyer

The Bank of England recently adjusted its base interest rate to 4.75%, improving mortgage affordability for many buyers. This adjustment has made mortgage rates more competitive, offering prospective homebuyers in Tower Hamlets an opportunity to access lower monthly payments and enhanced affordability compared to the peak rate levels seen in previous months. Lower interest rates can also boost buyer confidence, encouraging more first-time buyers and existing homeowners to consider entering the market or remortgaging for improved terms.

Tip for Buyers:

Securing a mortgage pre-approval before beginning to search for property in Tower Hamlets not only demonstrates your commitment to proceed but also gives you a clear understanding of your budget. This proactive approach makes you stronger in a competitive market, particularly when competing against cash buyers or those without mortgage pre-approval. 

You can use our mortgage calculator to work out what your up-to-date monthly mortgage payments will be.

Maximising Your Sale Success

Sellers are seeing increased market activity. Recent Rightmove data indicates a 27% rise in sales agreed year-on-year, reflecting strong demand, though buyers remain price-conscious due to economic factors including cost-of-living pressures and mortgage rate fluctuations. For sellers, this means striking the right balance in pricing is critical to capturing buyer interest while remaining competitive. 

Not on the market yet? City Realtor is your local estate agent in Tower Hamlets. To request a valuation please call 0207 790 7702.

Tip for Sellers:

Setting the right price for your property in Tower Hamlets is crucial for attracting serious buyers quickly. We will expertly value your home so that you achieve the price you deserve for your property. Additionally, you may wish to consider staging your home for viewings. Decluttering, making necessary repairs, and enhancing kerb appeal can all elevate buyer interest, potentially leading to faster offers at or above the asking price.

Landlord Strategies for a Changing Market

The rental market remains buoyant, with average UK rents climbing significantly over the past year, driven by strong demand and limited supply in many regions. Rising rental costs have made it increasingly competitive for tenants, especially in high-demand areas such as Tower Hamlets. However, landlords need to be mindful of policy changes, such as the 2% increase in Stamp Duty Land Tax on additional properties. This adjustment may affect long-term investment strategies, potentially prompting a reassessment of portfolio growth, returns, and the viability of new property acquisitions.

Landlords: We can take control of all moving parts and liaise with the appropriate parties to make the letting process as smooth as possible. Our team of experienced managers will complete every step in preparing your property for let. Contact us here.

Tip for Landlords:

Understanding compliance and legislative changes is critical for maximising rental yield in Tower Hamlets. Regularly review your rental portfolio with a property tax advisor to assess the implications on tax relief, deductions, or changes in tenant rights. Consider investing in energy efficiency improvements, as government incentives and tenant demand for greener homes may lead to longer tenancies and reduced void periods. Communication with tenants about their expectations and maintenance needs can also build stronger relationships, minimising costly turnover.

Securing Your Next Home as a Renter

Renters face a highly competitive market, characterised by strong demand for available properties and rapidly shifting rental prices. The government is working to make housing more affordable by expanding social housing options and giving tenants more rights, aiming to ease the pressure on renters struggling with rising costs. However, while these measures offer hope, the market remains difficult for many renters, particularly in high-demand areas where supply remains constrained.

Tip for Renters:

Begin your search for rental properties in Tower Hamlets well in advance to increase your chances of finding a suitable home. Ensure you have necessary documents, such as identification, proof of income, and references, ready prepared for quick submission. A solid credit score and positive rental history can give you an advantage over other applicants. If negotiating with landlords, emphasise your stability and reliability to potentially secure more favourable lease terms. 

Oldest, Largest, Smallest!

Did you know that the UK’s oldest surviving house is over 11,000 years old and located at Star Carr in North Yorkshire? The dwelling offers insight into Britain’s early settlement patterns, illustrating how the evolution of housing has shaped today’s market landscape.

From the oldest to the largest! The UK’s biggest private residence, Wentworth Woodhouse in South Yorkshire has over 300 rooms and spans 250,000 square feet. Its grand Baroque and Palladian architecture is an incredible example of Britain’s rich historical legacy and reflects how luxury and scale remain a unique part of the property market.

In stark contrast, one of the UK’s smallest detached houses, at just 290 square feet, was recently marketed for £1.2million in Chelsea, West London, which highlights the creativity and premium pricing often found in high-demand urban areas.

Looking Ahead

The UK property market is expected to remain stable as 2024 closes, with potential growth of 2.5% to 4% predicted over the next two years. Economic shifts, interest rate adjustments, and evolving housing policies will continue to shape market trends.

What Next?

City Realtor brings you all the latest property market news each month. For more localised property news in Tower Hamlets, please contact the team at City Realtor on 0207 790 7702 or admin@cityrealtor.co.uk.

Do you require a valuation or no-obligation advice on buying or selling a home in Tower Hamlets? Please contact our expert property team at City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, watch our YouTube Videos!

Good luck if you are buying a home, or considering putting your property in Tower Hamlets on the market. We’ve answered your FAQ’s here.

Note: The information in this article is based on data as of November 2024 and may change. Always seek professional advice for specific circumstances.

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What is an AST?

What is an AST?

An AST, or Assured Shorthold Tenancy, is the most common type of tenancy agreement between landlords and tenants in the UK. It is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of renting a property.

At City Realtor, we believe that understanding an AST is crucial to protecting both renters’ and landlords’ rights and obligations, ensuring a smooth rental experience.

Whether you’re a first-time renter or an experienced tenant, navigating the details of an AST can sometimes feel overwhelming. That’s why City Realtor is committed to breaking down the complexities of these agreements, so you can approach your tenancy with confidence.

By knowing your rights and responsibilities upfront, you can avoid common pitfalls and ensure you have a positive relationship with your landlord from the start. Let’s explore the key features of an AST and how they affect tenants.

Key Features of an AST

Fixed-Term vs. Periodic Tenancy

An AST can be set for a fixed term, typically six months or a year, or it can roll on a periodic basis (usually monthly) after the fixed term expires. During the fixed term, both the landlord and tenant are bound by the terms of the agreement. After this period, the tenancy can continue unless either party gives proper notice. At City Realtor, we can help you navigate these terms, whether you’re dealing with a fixed-term or periodic tenancy.

Rent and Deposit Protection

The AST agreement will specify the rent amount, when it’s due, and how it should be paid. Additionally, any deposit taken must be protected in a government-approved tenancy deposit scheme, such as the Tenancy Deposit Scheme (TDS), Deposit Protection Service (DPS), or MyDeposits. When working with City Realtor, we ensure that all deposits are securely protected in line with legal requirements.

Landlord’s Responsibilities

Under an AST, landlords must maintain the property in a good state of repair, ensure it meets health and safety standards, and provide necessary certificates, such as the Energy Performance Certificate (EPC) and Gas Safety Certificate. Our team at City Realtor ensures that all landlords meet these responsibilities, safeguarding your living conditions.

Tenant’s Obligations

As a tenant, you are expected to pay your rent on time, keep the property in good condition, and adhere to the terms of the agreement. This includes not causing nuisance to neighbours and seeking permission before making any alterations to the property. City Realtor assists tenants in understanding their obligations and ensures that communication between landlords and tenants is clear and effective.

What Happens When the Tenancy Ends?

When your AST reaches its end, there are a few possible outcomes:

Renewal of the Tenancy

If both parties are happy, the tenancy can be renewed for another fixed term, often with the same terms or with new conditions agreed upon. City Realtor can handle the renewal process, ensuring everything is in order for both parties.

Rolling Tenancy

If no action is taken, the tenancy automatically becomes periodic. This means that it continues on a month-to-month basis until either the tenant or landlord decides to end it. City Realtor provides clear guidance and support during this transition.

Ending the Tenancy

If you wish to end the tenancy, you must provide written notice to your landlord, usually one month for a periodic tenancy or as stated in the agreement for a fixed term. Similarly, landlords need to give at least two months’ notice if they want to regain possession, usually through a Section 21 notice. City Realtor is here to assist with the notice process, making it stress-free for both landlords and tenants.

Can the Rent be Increased During a Fixed-Term AST?

Rent increases during a fixed-term AST are usually only allowed if both parties agree or if the contract includes a rent review clause. In periodic tenancies, landlords can increase rent annually by providing the tenant with proper notice, usually one month in advance. At City Realtor, we ensure that any rent adjustments are fair and compliant with current regulations.

What Rights Do Tenants Have Under an AST?

Protection from Unlawful Eviction

Under an AST, tenants are protected from unlawful eviction. Landlords must follow the correct legal process, and you cannot be forced out without a court order, even after your tenancy ends. If you’re renting a property in Tower Hamlets, City Realtor ensures your rights are fully respected.

Right to Peaceful Enjoyment

You have the right to live in your rental property without unwarranted interference from the landlord. While landlords can inspect the property, they must give you at least 24 hours’ notice and visit at a reasonable time, unless it’s an emergency. City Realtor liaises between tenants and landlords to ensure that this right is upheld.

Repairs and Maintenance

If something breaks down, such as the heating system or plumbing, it’s the landlord’s responsibility to fix it in a reasonable time. Always report any issues promptly and in writing to ensure they are addressed. We provide a reliable maintenance service for all properties to rent in Tower Hamlets, ensuring that repairs are handled quickly and efficiently.

What Are the Consequences of Breaking an AST?

Breaching the terms of your AST, such as by failing to pay rent or damaging the property, can lead to serious consequences, including eviction. However, landlords cannot simply evict you for minor issues without following the proper legal process. If there’s a dispute, we can help resolve it through mediation or by guiding you through the legal process.

Understanding your Assured Shorthold Tenancy (AST) agreement is key to a successful and stress-free renting experience. At City Realtor we’re here to guide you through every aspect of your tenancy, from understanding your rights to managing communication with your landlord.

Whether you’re renting for the first time or looking to renew your tenancy, we’re committed to making the process as smooth as possible.

What Next?

Looking for a property to rent in Tower Hamlets? City Realtor is here to support you every step of the way.

Landlord looking for help with property management? With our expert services, you can trust us to handle everything from AST agreements to maintenance and legal compliance.

Contact us today at City Realtor and let us take the stress out of finding or managing a rental property in Tower Hamlets. As property management experts in Tower Hamlets, we’re on hand to make your life as a landlord easier and more profitable!

If you’re a landlord thinking about working with a letting agent to help manage your property, our friendly team at City Realtor would love to hear from you.

Require a valuation, or searching for property management services in Tower Hamlets? Contact us on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

In the meantime, here are the answers to the most frequently asked questions on this topic.

Frequently Asked Questions About AST’s

1. Can I leave my AST early?

Yes, but only if your landlord agrees or if there’s a break clause in your tenancy agreement. Otherwise, you may be liable for rent until the end of the agreed term. We can assist you in negotiating an early termination if necessary.

2. What should I do if my landlord isn’t protecting my deposit?

You can raise a dispute with a tenancy deposit scheme or take legal action. It’s a legal requirement for landlords to protect your deposit. City Realtor ensures that all deposits are correctly handled, providing peace of mind for tenants.

3. Can my landlord enter the property without permission?

No, your landlord must give you at least 24 hours’ notice and visit at a reasonable time unless it’s an emergency.

4. What happens if I can’t pay my rent?

Speak to your landlord immediately. They may offer a payment plan or some leniency. Persistent non-payment could lead to eviction, but this should be the last resort.

5. What is a Section 21 notice?

A Section 21 notice is used by landlords to regain possession of the property at the end of an AST without having to provide a reason. They must give you at least two months’ notice.

6. Can I make changes to the property?

You usually need written permission from your landlord before making any alterations, even minor ones. Check your AST for specific clauses related to changes.

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September 2024 Property Market Update

Property Market Update September 2024

September has brought a mix of developments in the UK property market, impacting buyers, sellers, landlords, and renters. With mortgage rates beginning to stabilise and significant legislative changes underway, it’s essential for everyone to stay informed.

In September, UK house prices surged by nearly £3,000, as reported by Rightmove. The average asking price for a home increased by 0.8%, reaching £370,759. This rise is notably higher than the long-term average increase for this time of year, which is typically around 0.4%.

Factors contributing to this boost include the recent drop in mortgage rates, an increase in available properties, and faster growth in household earnings relative to inflation and house prices.

Here’s an overview of the key trends shaping the market, along with some practical tips for navigating these changes.

Buying: A Time for Cautious Optimism

For prospective buyers, there is some relief as mortgage rates are falling and the market is slowly adjusting. First-time buyers, in particular, might now find more affordable entry points. However, despite this positive trend, there are still some uncertainties ahead. These include potential changes in the Bank of England’s base rate and upcoming announcements in the October Budget.

Tips for Buyers:

Shop Around for Mortgages:With more competitive mortgage products becoming available, it’s wise to compare offers and speak with a mortgage broker. Fixed-rate deals can provide peace of mind, especially with economic uncertainties still lingering. 

Negotiate Carefully: Sellers may be more open to negotiations, given that the market has cooled slightly. This could be the time to negotiate a better price or ask for certain conditions, like repairs, to be included in the sale.

Check Your Long-Term Affordability: Ensure your monthly mortgage payments will be manageable, even if your circumstances change. While interest rates are decreasing, affordability checks by lenders remain strict, so plan conservatively.

View our current properties for sale in Tower Hamlets on our website.

Selling: Setting Realistic Expectations

The time to sell a property has increased, according to Rightmove, with average homes now taking around 60 days to sell. Buyers are being more deliberate in their choices. This means sellers need to be patient and make sure their properties stand out in a competitive market.

Tips for Sellers:

  • Focus on Presentation: Staging your home well can significantly improve its appeal. Invest in minor repairs, fresh paint, and professional staging if possible. First impressions count, and well-presented homes tend to sell faster.
  • Price to Market Conditions: Avoid overpricing. Properties that are priced too high can languish, leaving you frustrated.
  • Be Flexible with Viewings: Make your property accessible for viewings by accommodating various schedules. The easier it is to view your home, the faster you’re likely to attract serious buyers.

For sellers interested in tracking house prices, several sources provide valuable insights:

  • Halifax publishes a monthly house price index based on its mortgage data.
  • The Office for National Statistics (ONS) uses data from the Land Registry to offer the most accurate measure of house prices, though it has a three-month delay.
  • Nationwide and Zoopla also track house prices. Nationwide reported a 0.2% decrease in August but a 2.4% annual increase, with average prices at £265,375. Zoopla’s data showed a 0.5% rise in July, with average prices now at £266,400.

Each of these sources uses different methods to track prices, so it’s beneficial to consider them all for a comprehensive overview of the market.

For property in Tower Hamlets, City Realtor is best placed to offer information on house prices, tips and advice. Please do call us on 0207 790 7702 or email admin@cityrealtor.co.uk.

Landlords: Preparing for New Regulations

September 2024 is a key period for landlords, with the Renters’ Reform Bill expected to significantly alter the landscape. The abolition of Section 21 no-fault evictions, along with stricter rent regulations, will reshape how landlords manage their properties.

In addition, landlords need to start preparing for the 2030 requirement for all rental properties to meet a minimum Energy Performance Certificate (EPC) rating of “C.”

Tips for Landlords:

  • Stay Informed: Make sure you understand the implications of the Renters’ Reform Bill. Joining a landlord association or investing in property management could help you stay on top of legal updates.
  • Plan for Energy Efficiency: Begin upgrading your rental property to meet the future EPC requirements. Energy-efficient properties will not only comply with regulations but could also be more attractive to eco-conscious tenants.
  • Retain Good Tenants: With increasing tenant rights, focusing on tenant retention is more important now than ever. Offering longer tenancies or incentives like minor upgrades can help maintain a stable rental income.
  • Consider Professional Management: With the legislative environment becoming more complex, it may be worth hiring a professional property management company to handle compliance and day-to-day operations.

For landlords considering property management in Tower Hamlets, call us on 0207 790 7702 or email admin@cityrealtor.co.uk for information on our services.

Renters: Higher Costs, More Rights

While renters face rising rents and high demand for properties, the Renters’ Reform Bill brings new protections. The abolition of Section 21 evictions is a major win for renters, offering more stability. However, this could also lead to landlords being more selective.

Tips for Renters:

  • Know Your Rights: With the introduction of the Renters’ Reform Bill, tenants will have more power. Educate yourself about your rights, including how landlords can and cannot evict you and what standards they must meet.
  • Be Prepared to Act Fast: Competition for rental properties remains fierce. Have your documents and references ready to move quickly when a property becomes available.
  • Consider Flexibility: If you’re struggling to find a rental in a competitive area, consider expanding your search radius or being flexible with your preferred moving date. Being adaptable can open up more options.

View our latest properties for rent in Tower Hamlets on our website.

The Renters’ Reform Bill: Major Changes Ahead

The Renters’ Reform Bill is one of the most significant pieces of legislation affecting the private rental sector in decades. Aimed at giving tenants more protection, the bill is expected to abolish Section 21 no-fault evictions, introduce stricter rent increase controls, and enforce higher standards of accommodation.

Key Provisions:

  • Ban on No-Fault Evictions: Landlords will no longer be able to evict tenants without providing a reason, making it harder for them to reclaim properties. This brings more stability for renters but could lead to landlords being more cautious in selecting tenants.
  • Limits on Rent Increases: Landlords will be allowed to increase rents only once a year, and any increase must reflect market rates.
  • Stricter Housing Standards: Landlords face penalties of up to £7,000 for properties that fail to meet a minimum standard.

For more information on the Renters’ Reform Bill, please speak with a member of our lettings team at City Realtor . We ensure we are always up to date with the latest legislation and developments and can assist landlords and tenants efficiently.

September 2024 sees a mix of cautious optimism and continued challenges in the UK property market. Falling mortgage rates provide some relief for buyers, while sellers need to adjust to longer sale times.

Landlords, in particular, must navigate an evolving regulatory landscape, with the Renters’ Reform Bill set to bring about major changes. Renters, meanwhile, can look forward to stronger protections, but with higher rents and increased competition.

What Next?

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch.

For no-obligation advice on buying, selling, renting or letting a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

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August 2024 Property Market Update

August 2024 Property Market Update

The UK property market continues to evolve, with significant developments affecting buyers, sellers, landlords, and tenants. August 2024 has brought a fresh wave of changes, driven in part by the recent reduction in the Bank of England’s base rate. This latest property market update looks at the latest trends, and expert insights, offering an overview of what to expect in the coming months.

A Cooling Market Amid Economic Shifts

The UK property market is experiencing a period of moderation after several years of rapid growth. According to recent data from HM Land Registry, the average house price in the UK is currently just under £286,000, reflecting a 1.2% annual increase. While prices remain high, the pace of growth has decelerated slightly, signalling a more balanced market.

The Impact of the Bank of England’s Base Rate Reduction

A key development this month is the Bank of England’s decision to reduce the base rate to 5.00% (Bank of England – Monetary Policy Report). This move, is likely to have a significant impact on the property market. Lower interest rates generally make borrowing cheaper, which could encourage more buyers to enter the market and may provide some relief to those with variable-rate mortgages.

However, the impact of this rate cut may be tempered by the ongoing cost-of-living crisis. Inflation has eased and sits at the Bank’s 2% target, but household budgets are still feeling some pressure. As such, the market may see a cautious response to the rate cut, with buyers weighing the benefits of lower mortgage rates against broader economic uncertainties.

Buying: A Mixed Outlook

For prospective buyers, the market presents a mixed outlook. On one hand, the reduction in the base rate will lower mortgage costs, making property more accessible, especially for first-time buyers. Additionally, the slowing rate of house price growth may create more opportunities to purchase at lower prices.

Follow our step by step guide to buying a house

Buying Tips:

  1. Shop Around for Mortgage Deals: With the base rate reduction, lenders may offer more competitive mortgage deals. It’s advisable to consult a mortgage broker who can help you find the best rates tailored to your financial situation.
  2. Consider Fixed-Rate Mortgages: Given the current economic uncertainties, locking in a fixed-rate mortgage could provide stability in monthly payments, protecting you from potential future interest rate hikes.
  3. Focus on Affordability: Ensure that your mortgage repayments are affordable even if your circumstances change. Lenders are increasingly stringent with affordability checks, so it’s wise to budget conservatively.

View our properties for sale in Tower Hamlets here

However, high living costs and tighter lending criteria continue to pose some challenges. Lenders have become more cautious, particularly in assessing affordability. The Bank of England’s latest data shows that the average mortgage approval rate has dropped by 10% year-on-year, reflecting a more stringent lending environment.

Selling: Adjusting to New Realities

For sellers, August 2024 brings a need for realistic expectations. Zoopla reports that the average time to sell a property has increased to 60 days, up from 45 days a year ago.

Selling Tips:

  1. Price Competitively: In a cooling market, pricing your property correctly is crucial. Overpricing can lead to your property sitting on the market for longer, which may deter potential buyers. Contact us for a realistic valuation.
  2. Enhance Kerb Appeal: First impressions matter. Simple improvements like a fresh coat of paint, tidy landscaping, and minor repairs can significantly increase your home’s attractiveness to buyers.
  3. Stage Your Home: Consider professional home staging to make your property more appealing. Well-staged homes often sell faster and at a better price.
  4. Be Flexible with Viewings: The more accessible your home is for viewings, the more potential buyers you can attract. Being flexible with scheduling can help attract offers faster.

Sellers are advised to price their properties competitively. With more properties available on the market, buyers have greater choice. It’s also important for sellers to be mindful of the condition of their homes; properties in good repair and presented well are more likely to attract serious offers.

Landlords: Navigating New Regulations

Landlords are facing a challenging landscape in August 2024, with new regulations and rising costs. The Renters’ Reform Bill, expected to come into effect later this year under the new Labour government, is one of the most significant changes. This bill aims to abolish Section 21 ‘no-fault’ evictions, strengthen tenants’ rights, and improve the quality of rented accommodation.

Additionally, the Energy Performance Certificate (EPC) requirements are tightening, with all rental properties needing to achieve at least a C rating by 2030. This means that landlords may need to invest in energy-efficient upgrades, which could be costly. On the flip side, the reduction in the base rate may provide some financial relief for those with mortgages on their rental properties.

Read 8 Things Every Landlord Should Know

Landlord Tips:

  1. Stay Ahead of Regulatory Changes: With significant legislative changes on the horizon, landlords should stay informed and ensure compliance. Consider joining a landlord association for updates and support.
  2. Invest in Energy Efficiency: Upgrading your property to meet the new EPC requirements not only ensures compliance but can also make your property more attractive to tenants. Government grants and incentives may be available to help offset some of the costs.
  3. Review Your Financing: With the recent reduction in the base rate, it may be a good time to review your mortgage arrangements. Refinancing could improve your cash flow and profitability.
  4. Focus on Tenant Retention: In a competitive rental market, maintaining good relationships with existing tenants is key. Consider offering incentives such as flexible lease terms or minor property improvements to encourage long-term tenancies.
  5. Consider Professional Management: If managing the increasing complexities of being a landlord becomes overwhelming, consider hiring a professional property management company. They can handle everything from tenant screening to maintenance, ensuring your property remains compliant and profitable.

Lettings: A Strong Demand but Pressured Supply

The lettings market remains robust, driven by strong demand and a limited supply of rental properties. According to data from Rightmove, average rents across the UK have increased by 6.8% over the past year. The shortage of rental properties, coupled with landlords exiting the market due to increasing regulation and costs, has led to intense competition among tenants.

For tenants, this unfortunately means higher rents and more competition, making it sometimes challenging to secure affordable accommodation. For landlords, the high demand presents an opportunity, but it also comes with the responsibility to comply with the new regulations and maintain properties to a high standard.

View our properties to rent in Tower Hamlets

Stay Informed and be Prepared to Adapt

This is a period of transition for the UK property market. The reduction in the Bank of England’s base rate offers potential benefits, particularly for buyers and landlords, but it is set against a backdrop of economic uncertainty and regulatory changes. Whether you’re buying, selling, or renting, staying informed and being prepared to adapt to these changes will be key to navigating this evolving market successfully.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch.

For no-obligation advice on buying, selling, renting or letting a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

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What Insurance Should I Have As A Landlord?

What Insurance Should I Have As A Landlord?

Becoming a landlord comes with its share of excitement and challenges but protecting your investment is crucial. The right insurance can be a game-changer, ensuring that you’re covered for unexpected events like property damage, tenant issues, or legal troubles.

We are often asked ‘what insurance should I have as a landlord to safeguard my rental property in Tower Hamlets?’ So, let’s break down the essentials every landlord should know.

Landlords in Tower Hamlets with Buy To Let mortgages will usually have adequate building insurance in place. Even those who own outright usually insure their property for its rebuild cost, with cover in place for damage caused by floods, fire, and storms.

However, there are other risks involved in renting out a property. As well as your building insurance, it makes sense to put suitable protection in place so you’ll be financially covered if something goes wrong.

At City Realtor, sadly we have seen landlords take a significant financial hit when something unexpected has happened to their property.

To avoid this happening to you, you should consider taking out insurance to cover the following:

5 Essential Types of Landlord Insurance

1. Your Property Contents

If you’re letting a property and it’s fully furnished, good home contents are essential. However, even if you’re renting your property out as unfurnished, you will probably still have contents such as curtains, carpets, white goods, and light fixtures and fittings in the property.

The final bill could be very high if everything had to be replaced, so consider whether you need additional contents cover.

2. Damage Caused By A Tenant

Whether deliberately or accidentally, if your tenant causes damage to your property and you can prove it, it’s usually possible to retain their deposit to pay for the repairs.

But what happens if the final cost to repair the damage is higher than the deposit amount? Malicious damage insurance will cover your repair bill in this eventuality.

Read ‘Maintenance Tips For landlords’ here

3. Public Liability Cover

If any tenant, visitor, or contractor is injured in the property and thinks it was your fault, they could take you to court for compensation.

Public liability insurance covers both any compensation that is awarded plus your total legal costs.

4. Costs For Alternative Accommodation

Should the rental property be so severely damaged that the tenants need to be relocated while repairs are completed, you could incur additional costs to cover alternative accommodation. This insurance will ensure you won’t take a financial hit.

5. Legal Expenses And Rent Protection

If you’ve never taken out insurance for legal expenses and rent protection, then this is something you should consider.

If your tenant defaults on their rent, your income will be protected. Not only that but the expense of evicting the tenant will also be covered.

Giving yourself as much protection as possible against any unexpected costly bills makes sense.

Unfortunately, some landlords in Tower Hamlets find that they end up out of pocket because they failed to consider the potential risks.

With adequate landlord insurance, you can enjoy peace of mind knowing your income is safe and you won’t get any unpleasant financial shocks.

Read ‘8 Things Every Landlord Should Know’ here

Need Help With Your Rental Properties?

As property management experts in Tower Hamlets, we’re on hand to make your life as a landlord easier and more profitable!

If you’re a landlord thinking about working with a letting agent to help manage your property, our friendly team at City Realtor would love to hear from you.

Require a valuation, or searching for property management services in Tower Hamlets? Contact us on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

In the meantime, here are the answers to the most frequently asked questions on this topic.

Frequently Asked Questions About Landlord Insurance

What is landlord insurance and why do I need it?

Landlord insurance provides financial protection for your rental property and your income as a landlord. It typically covers damages to the property, loss of rent, legal expenses, and liability claims.

What does landlord insurance cover?

Landlord insurance policies can vary, but they generally cover:

  • Building insurance to protect the property structure
  • Contents insurance for any belongings you provide
  • Landlord liability insurance to protect against claims for injuries or property damage
  • Rent guarantee insurance to cover unpaid rent
  • Legal expenses insurance to cover legal costs related to tenancy disputes

How much does landlord insurance cost?

The cost of landlord insurance depends on several factors, including the property’s value, location, the number of tenants, and the level of cover you choose. It’s essential to compare quotes from different insurers to find the best deal.

Is landlord insurance mandatory?

While landlord insurance isn’t legally required, it’s highly recommended. It provides essential protection for your investment and can help you avoid significant financial losses in case of unexpected events.

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July 2024 Property Market Update

Property Market Update July 2024

The UK property market continues to be a topic of conversation, with July 2024 seeing a mixed picture. In our latest property market update, we’ll look at the latest trends for buyers, sellers, landlords, and renters, and of course we are keeping an eye on the potential impact of the recent general election and the incoming government.

Property Market Overview: Steady Growth with Regional Variations

Nationwide house prices saw a modest 0.2% rise during June 2024, bringing annual growth to 1.5%. This is quite a significant shift from the heady days of double-digit growth in 2023. However, it’s important to remember that the market can vary significantly depending on location.

Buying: A More Balanced Market

For potential buyers, July has seen a more balanced market. Rightmove reports a rise in available properties, easing intense competition and making for an altogether calmer buying experience and considered decision-making.

The best mortgage rates are hovering around 4.7% and recent cuts to the base rate offer hope for even more improved mortgage deals in the coming months, with Oxford Economics still predicting a Bank of England base rate cut in August.

Tips for Buyers:

Do your research: Understand your budget and target areas thoroughly. The experienced team at City Realtor can help you with buying a property in Tower Hamlets. Simply call us on 0207 790 7702 for advice.

Be prepared to act quickly: Great properties can still attract multiple offers so it’s important to have a mortgage agreement in principle to help you secure your new home.

Consider working with a mortgage broker: With a complex mortgage landscape, a broker can secure the best possible deal for your circumstances, ensuring you get the most out of your budget. City Realtor is happy to recommend a mortgage adviser. Please just ask.

Selling: Strategic Timing Can Be Key

Sellers may need to adopt a more strategic approach in July’s market. There are still plenty of buyers around, however, the number of properties for sale dropped off slightly following the election announcement in May. With a new government now in place, it will be interesting to see whether this picks up again. July and August can be quiet months for sales, but a well-presented property with a competitive asking price, will likely attract interest.

Tips for Sellers:

Price realistically: Get an accurate valuation of your property to attract serious buyers. Remember that the highest valuation is not always the way to go! Always consider an estate agent who you feel you can trust to market your property in the best way and achieve the price your property is worth. For a free valuation, call City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk.

Presentation is key: Invest in decluttering, staging, and kerb appeal to make your property stand out. First impressions matter, and potential buyers often make snap judgments during viewings.

Landlords and Lettings: Adapting to Changing Regulations

Landlords are still navigating a period of significant change. In The Kings Speech on Wednesday 17th July, The King announced that the Government would introduce legislation to “give greater rights and protections” to those renting – including “ending no-fault evictions”, with draft legislation published on leasehold and commonhold reform.

In a further statement from Downing Street, the Government said: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions…The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

Tips for Landlords:

Stay informed: It’s crucial landlords keep up-to-date with changes in regulations and legislation by following resources like the National Landlords Association (NLA). If in any doubt speak with a member of our lettings and property management team at City Realtor on 0207 790 7702.

Consider tenant retention rather than rent increases: A reliable tenant who takes good care of your property can be more valuable than a small increase in rent. Building a positive relationship with your tenants can lead to long-term stability and fewer void periods.

Maintain your property: Regular upkeep ensures your investment remains attractive to tenants and minimizes the risk of costly repairs later.

The General Election and the Property Market

The recent general election has added another layer to the property market. The incoming government’s policies on housing, taxation, and infrastructure spending will undoubtedly impact the sector in the long run. However, the immediate effect is likely to be muted and the established nature of the UK property market suggests it will continue to function even during a period of political change.

Looking Forward: A Market in Transition

The UK property market is in transition. Modest growth, regional variations, and the influence of the new government are key factors to consider. However, while there may be adjustments ahead, the fundamental strength of the UK property market is likely to endure.

For buyers, sellers, landlords, and tenants this period offers an opportunity to be informed, strategic, and adaptable. By understanding the current trends, staying informed about future developments, and seeking professional advice when needed, you can navigate the UK property market with confidence.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month.

For no-obligation advice on buying, selling, renting or letting a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

Posted on

June 2024 Property Market Update

June-2024-Property-Market-Update

During June we’ve seen the UK property market continuing on its path of cautious optimism. While the fast growth seen in previous years has eased, a sense of stability is emerging, underpinned by rising buyer demand and a potential shift in interest rates.

Let’s delve into the key trends shaping the market this month.

Market Recovery Gathers Momentum

The good news for buyers and sellers is that the property market is experiencing a steady recovery. After a period of uncertainty, house prices are showing signs of growth again. According to Nationwide Building Society, May 2024 saw a 0.4% increase in average house prices, bringing the annual growth rate to 1.3%. This indicates a market that’s found its footing and is on an upward trajectory.

Regional Variations Remain

While the national picture is one of growth, it’s important to remember that the UK property market is a patchwork of regional variations. Scotland continues to lead the pack with a significant 6.7% annual increase in house prices, while England and Wales are seeing more modest rises of 1% and 1.3% respectively. Northern Ireland has also shown steady growth of around 4%. Understanding these regional differences is crucial for both buyers and sellers when making informed decisions. If you would like to know more about the Tower Hamlets region, please call us on 0207 790 7702 to discuss.

The Interest Rate Question

A significant factor influencing the market is the ongoing speculation around interest rates. With inflation falling closer to the Bank of England’s 2% target, a potential base rate cut is on the horizon. However, in June, The Bank of England made the decision to keep interest rates the same – at 5.25%, meaning the rate has now remained static for the past 10 months. An interest rate drop could be a game-changer for the market, making mortgages more affordable and potentially boosting buyer demand. Some economists predict the first cut could come as early as August 2024, while others think we may have to wait until December! The impact of this on house prices remains to be seen, but it’s likely to contribute to a more vibrant market.

Election Jitters or Business as Usual?

The upcoming general election in July has caused some to wonder if it will stall market activity. However, experts suggest this is unlikely to happen. In contrast to past elections with significant policy shifts, the current political landscape doesn’t propose drastic changes impacting the housing market. The first interest rate cut, however, is expected to have a more significant impact on market activity this year.

Supply and Demand: Finding Balance

The good news for buyers is that there are signs of a healthy increase in the number of properties coming onto the market. This increased supply is expected to keep house price inflation in check throughout the year. While significant price hikes might be off the table for now, the steady flow of properties ensures buyers have more options in a balanced market.

What Does This Mean for You?

Landlords: The rental market continues to see high demand, with rents rising at a slower pace than the previous year. Zoopla reports an average increase of 6.6% for new lets in April 2024. While this presents an opportunity for stable returns, it’s important to remember tenant retention is key. Focusing on good communication, responsive maintenance, and ensuring your property remains competitive in terms of rent and amenities will be crucial for attracting and keeping quality tenants.

Buyers: With a potential interest rate cut on the horizon, affordability might improve in the coming months. However, with increased competition due to rising demand, it’s still a seller’s market in many areas. Being prepared with a well-researched offer and a strong financial position will be key to securing your dream property in Tower Hamlets.

Sellers: While significant price rises are less likely, the market conditions remain favourable for sellers. At City Realtor we suggest focusing on presenting your property in its best light through minor improvements, home-staging and competitive pricing to attract buyers quickly in a market with more options.

The Bottom Line

The UK property market is moving towards cautious optimism. House prices are showing signs of growth, with regional variations offering opportunities for both buyers and sellers. The potential for a base rate cut later this year could be a major driver of market activity. With an increased number of properties coming to the market, a sense of balance is emerging. Whether you’re a buyer, seller, or landlord, staying informed and seeking expert advice will be crucial for navigating the market effectively.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month.

For no-obligation advice on buying or selling a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

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How To Choose A Letting Agent In Tower Hamlets

How to Choose A Letting Agent in Tower Hamlets

Working out how to choose a letting agent is an important decision. Your property is a valuable asset, and entrusting someone else to manage it for you isn’t something to be taken lightly.

Working with an expert letting agent can help save you time and money. Plus, you can rest assured that you’re managing your property in the right way and leaving yourself less open to risk.

If you’re thinking about working with a letting agent, here are our tips on how to choose a letting agent in Tower Hamlets and the best questions to ask before you commit.

Seven Questions to Ask Letting Agents About Rental Properties

So let’s jump straight in with the seven key questions you must ask any letting agents, especially once you have a rental property in mind.

1. Are You Regulated?

One of the first things you need to check when speaking to a potential letting agent is whether they are registered as part of a government-approved letting agency redress scheme and the national approved letting scheme. Working with an unregistered letting agent can result in fines for landlords, so it’s always best to check. Working with an accredited agent like City Realtor can provide you with the expertise and professionalism you need to achieve your goals. City Realtor has Propertymark accreditation. They collaborate with members to establish professional standards through regulation, recognised qualifications, industry-leading training, and mandatory Continuing Professional Development. Propertymark ensure that all landlords, tenants, buyers and sellers receive professional services.

2. Are You Part of a Client Money Protection Scheme?

Just like the previous question, you also want to ensure the agency is part of a client money protection scheme – particularly if they will be handling tenancy deposits and dealing with rent collection and other property management tasks for you. City Realtor is fully compliant as members of The Property Ombudsman and The Tenancy Deposit Scheme.

3. What Are Your Fees?

Of course, asking about fees is a given and it’s a question we expect you to ask. When enquiring about fees, make sure you ask about all charges you could be liable to pay – not just the standard stuff. A professional letting agent will be completely transparent with these numbers, and that will allow you to compare agents which is crucial. We are totally transparent about our fees and display them all on our website. However, at City Realtor, we recognise that every landlord’s needs are unique. That’s why we offer customisable packages to fit your specific requirements.

4. What Marketing Strategies Do You Use?

A good letting agent is always on the hunt for new ways to market their rental properties. Depending on who your target market is, modern forms of marketing (like blogging and social media) can be highly effective.

Make sure you ask how your letting agent will market your property to see if it’s the right fit for you. At City Realtor, we believe in a rounded approach to marketing, and are happy to discuss our process with you. Call us on 0207 790 7702 for a chat!

5. Do You Know the Local Area?

Naturally, having a local letting agent in Tower Hamlets has its benefits. Someone who knows the area well can market your property to potential tenants much more effectively. Our dedicated and knowledgeable team have years of experience in the area – and the industry!

6. How Long Does it Take to Fill Vacancies?

Every landlord wants to fill voids as quickly as possible, but finding a good tenant usually takes time.

Regardless, a good letting agent will have the facts on the average time it takes them to fill vacancies, so make sure you ask for the figures. Here at City Realtor, we are completely transparent with these figures, and you can speak with us about them at anytime.

7. What Are Your Opening Hours?

When your letting agent is available to talk is much more important than you might think. You need someone who can work around your lifestyle and be ready to answer your questions when you have time to speak.

While most letting agents in a local area have standard opening hours, some may be open or available out of hours, too. The City Realtor team work specific hours, but we are always willing to be available when called upon by our clients and answer all queries promptly.

You may also be interested to read 8 Things Every landlord Should Know

Need expert landlord advice?

If you’re a landlord thinking about working with a letting agent to help manage your property, our friendly team at City Realtor would love to hear from you.

Require a valuation, or searching for property management services in Tower Hamlets? Contact us on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

In the meantime, here are the answers to the most frequently asked questions on this topic.

Frequently Asked Questions About Letting Agents in Tower Hamlets

What factors should I consider when selecting a letting agent as a landlord?

When choosing a letting agent, consider their reputation, experience, and fees. Look for agents with positive reviews, a proven track record in your local area, and transparent fee structures.

Are there any regulatory requirements I should be aware of when hiring a letting agent in the UK?

Yes, ensure the letting agent is a member of a recognised redress scheme and complies with the law, such as deposit protection regulations. This helps safeguard your interests and those of your tenants.

How can I assess a letting agent’s ability to find suitable tenants for my property?

Evaluate their marketing strategies, tenant screening processes, and vacancy fill rates. A reliable letting agent should have effective advertising methods and thorough tenant vetting procedures to secure quality tenants for your property.

What services do letting agents typically offer, and how do I choose the right level of service for my needs?

Letting agents offer various services, including tenant find, rent collection, and full management. Assess your preferences, time availability, and budget to determine which service level aligns best with your requirements as a landlord.

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May 2024 Property Market Update

Property Market News May 2024

With headlines in the news about stagnating house prices and rising mortgage rates, May has been a challenging month, with the cost-of-living crisis still biting homeowners. However, it’s not all doom and gloom! Owning a home is still beneficial, offering long-term living and financial stability.

General Election News

Prime Minister Rishi Sunak has announced that we’re heading to the polls on Thursday, July 4th, 2024. This forthcoming general election could bring some stability to the property market, which is great news for buyers and sellers who’ve been dealing with a shaky few months. With inflation nearing the Bank of England’s target and a potential interest rate drop on the horizon, things are looking up. Expect a busy second half of the year for property deals!

How Can First Time Buyers Get on the Property Ladder?

The end of April saw the release of the BSA (Building Societies Association) report which confirmed that first-time buyers currently face the most challenging conditions in seven decades to get onto the property ladder, with an increasing reliance on the Bank of Mum and Dad, or having two high incomes.

The report highlights that home ownership among young adults has been declining for twenty years but, while saving enough money to put down a deposit has long been difficult, the squeeze has been tightened in recent months because of mortgage interest rate increases.

It’s not hard to see why more young people are opting to move back in with their parents, with this now being the most commonly reported living arrangement for those aged 18-34. This is in stark contrast to the figures for 1997 which showed that those in the same age bracket were most likely to be living as a couple with children!

Many first-time buyers are undeterred though, with recent Bank of England figures showing that over the past three years, over a million mortgages extending beyond the state pension age of the borrower have been taken out. Many of those loans have been approved for applicants under the age of 30 as high mortgage rates lead people to opt for extended repayment periods to keep their costs affordable.

Twice the number of homeowners under 30s with ultra-long mortgages can be seen today when compared with two years ago, while the number of under 40s has also seen a 30% increase. It’s also clear that first-time buyers are adapting to higher borrowing costs by targeting smaller, more affordable properties. This adjustment is helping to maintain activity levels in the market with a steady flow of new buyers entering the market.?

Base Rate Held at 5.25% – Good News or Bad News?

The Bank of England most recently held the base rate at 5.25%, despite predictions that there would be a cut.

Meanwhile, three of the UK’s top lenders announced they would be raising their rates on fixed deal mortgages. NatWest, Santander, and Nationwide are the latest three to follow their rivals who increased mortgage rates after expectations about the speed and extent of Bank of England interest rate cuts were scaled back. That’s the bad news!

However, a rate cut is expected, followed by further cuts later in the year. That’s the good news!

A Month of Ups and Downs!

May 2024 was a month of ups and downs in the UK lettings market! The rental market remains robust, with high demand pushing average rents to record levels which is positive for landlords and investors. However, some tenants are still struggling with the impact of the cost-of-living crisis and its knock-on effect on the number of homes available to rent.

Some good news for landlords has been released in Propertymark’s latest insights report , which shows signs of the rental market beginning to stabilise after a rocky period towards the end of 2023 which saw the percentage of arrears peak at 4%.

This month’s report reveals that since the start of the year, the number of tenants in arrears has been falling, and has now reached a low point of 2.5%, indicating that landlords can start to breathe a sigh of relief and look forward to less frustration over rent collection.

Has There Been An Increase In Landlord Confidence?

In a recent report from PayProp, their latest Rental Confidence Index r evealed that an astonishing 54.5% of the landlords involved in their survey were going through the process of selling their properties!

It’s not surprising, then, that half of all tenants who have moved during the last year have done so because their landlord took the decision to sell up. By contrast, the percentage of tenants who left their homes due to eviction stood at under 12%.

However, the announcement of amendments to the Renter’s Reform Bill has led to positivity amongst UK landlords. In a further poll commissioned by PayProp, the number of respondents who reported a negative view of the private rental sector fell compared with those asked the same question in 2022. Over half of landlords are now feeling more positive about the sector’s future.

In a smart move by first time buyers, 66.7% of properties being sold by landlords are being snapped up by first timers. But this does mean that the number of private rentals is dwindling – an issue that is now seeing prospective tenants fiercely competing to offer on properties.

Did You Know?

This year we are already seeing increased demand for sustainable homes. Energy-efficient features and eco-friendly designs are becoming more sought-after, alongside smart security, energy management tools and automated heating systems.

What Next?

We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch with us at City Realtor on 0207 790 7702 or email admin@cityrealtor.co.uk

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!