Tag: renting

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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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7 Steps to Becoming a Residential Landlord in Tower Hamlets

7 Steps to Becoming a Residential Landlord

There are a number of reasons people consider becoming a residential landlord.

Often, it’s because someone wants to do more with their savings and sees property as a sound investment with a regular income. It might also be that a person becomes an accidental landlord after inheriting a property or moving into a house with a partner.

However, while the allure of consistent rental income is certainly appealing, there are several things you need to consider before you begin your property portfolio.

Here are seven things to think about when becoming a landlord in Tower Hamlets.

How to Become a Landlord of a Rental Property in Tower Hamlets

1. Consider set-up costs

Finances matter, the numbers have to stack up. If you’re going to obtain a buy-to-let mortgage, the mortgage lender needs to know about your income and what rent you hope to achieve.

They have to ensure that you can cover the costs. You’ll probably have to pay for surveys, too, so they can be sure the property you have in mind is worth what you think it is.

Then there are the legal fees and the search costs. Many law firms who specialise in conveyancing will be able to give you an early indication of what your final bill will be.

2. DIY or use a letting agent?

You could manage the property yourself – and many landlords consider this as it can help reduce costs. However, you must make sure you have the time to dedicate to the management of the property.

Do you want to choose a letting agency to find you a tenant and arrange the initial agreements? You can then keep on top of things for yourself. Or would you rather hand over all the property management to the agency? This will certainly reduce the pressure on you but there will be costs involved due to letting agent fees. You can view our fees here.

Read our step by step lettings guide here

3. Landlord insurance

When you are renting out a property in Tower Hamlets, you must obtain landlord insurance. This is because a home insurance policy will not cover you for what you need, and also because the right insurance will protect you, your property and your tenant.

Read ‘what insurance should I have as a landlord’ here.

If you’re taking out a mortgage to buy the property, your lender will insist that you have insurance. The costs of insurance will vary depending on the level of cover, such as personal liability, contents cover and buildings cover, and loss of rent cover, in the unfortunate event of unpaid rent. Speak with an insurer or a broker and be absolutely clear about what you need.

4. Furnished or unfurnished?

Whether you rent out a fully furnished property or one that is unfurnished is a decision you need to make early on.

If you’ve inherited a furnished property, then it might well be an easy decision. If this is the case, you might find this suits a potential tenant, and you will be able to get a higher monthly rent.

Obviously, if you rent out an unfurnished property, it means you don’t need to buy furnishings for it. Many potential tenants prefer this as they can add their own furniture and make it their home. Don’t forget; it’s best practice to get an inventory carried out as this will affect your insurance policy and could minimise any disputes at the end of an agreement with prospective tenants.

5. Paperwork

One of our top tips for being a landlord is to be well organised and up to date with paperwork from the start. It may seem daunting having a lot of documents, but organisation is key.

Not only will this ensure you don’t fall foul of any legal responsibilities, but it will also mean that if any disputes arise, you know immediately where important documents are. (It’s also particularly useful when you’re doing your accounts or checking information).

6. Legals & responsibility

There are certain legal obligations and responsibilities that need to be understood. These are in addition to the tenancy agreement that you and your tenant should be signing. For example, before a property is let, you’ll need an up-to-date Energy Performance Certificate (EPC) for it.

A gas safety certificate is required for each gas appliance in the property, each home has to have smoke alarms and a carbon monoxide detector, and any appliances or furniture must meet the required safety standards. There are also rules about a tenant’s deposit and how it is kept in a Government-approved scheme. If you need help with any of these, we can advise you. Simply call us on 0207 790 7702 or read our compliance guide.

7. Right to rent checks

A relatively new aspect of renting out a property in Tower Hamlets is the need to carry out a Right to Rent check. A landlord must, by law, check whether a potential tenant has the legal right to rent a property in the UK.

Failure to carry out the required checks could result in hefty fines so if you need advice on this, then contact us and we will be delighted to help.

For expert property advice and becoming a landlord in Tower Hamlets, contact our team of professionals on 0207 790 7702 or email admin@cityrealtor.co.uk.

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 Becoming a Landlord and Setting Up Rental Properties

Do I need a license to become a landlord in the UK?

In England, landlords may need to obtain a license for certain types of properties, such as houses in multiple occupations (HMOs), while Scotland and Wales have their own licensing systems; it’s crucial to check local regulations.

What responsibilities do landlords have regarding tenant safety?

Landlords are legally obligated to ensure the safety of their tenants by conducting regular gas safety checks, providing smoke and carbon monoxide alarms, and adhering to electrical safety standards.

How can I set a fair rental price for my property?

Speak with a local letting agent, research the local rental market, consider property features and amenities and evaluate comparable rentals to determine a competitive and fair rental price for your specific location and property type.

What steps should I take if my tenant fails to pay rent?

Follow the legal eviction process outlined in the relevant UK legislation, which typically involves issuing a notice to the tenant and seeking possession through the court if rent arrears persist.

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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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Landlords: Should You Let Tenants Decorate? 5 Things to Consider

Should You Let Tenants Decorate? 5 Things to Consider

Should you let tenants decorate?

That is the question for many landlords, as long-term tenants often start to question whether or not they are allowed to turn their rental property in Tower Hamlets into a style that suits them.

Since the number of people renting long-term is growing, more tenants are finding themselves wanting to ditch the plain décor and make a rental feel more like home. However, letting your tenants decorate a rental property is a relatively new concept for many landlords.

As a landlord, knowing how to respond to the decorating trend is tricky. There are downsides to letting your tenants decorate, but there are many benefits, too.

If you are considering whether you should let your tenants decorate, here is our advice on what the benefits are and how you can safely allow decorating.

Benefits of Letting Your Tenants Decorate Their Rented Property

Letting your tenants decorate shouldn’t always be met with a feeling of fear and dread. At City Realtor, we find that allowing your tenants to decorate can have its benefits.

1. Marketability

The number of people renting long-term is growing, so more and more tenants are looking for somewhere they can make a home. Depending on who your target market is, allowing your tenants to decorate a rental can easily make it more attractive to long-term renters. And long-term renters are the goal of many landlords.

2. Return on Investment

Decorating costs money. Even if your tenants are only buying a tin of paint or a few rolls of wallpaper, that can still be a few hundred pounds they’re spending on your property. Not only can this mean your property stays looking fresh, but you could even see a better return on investment for it.

Plus, if your tenants want to spend money on your property, it’s a good sign. It means they take pride in living in your rental and want to look after it as best they can.

Read our maintenance tips for landlords here

How to Safely Let Tenants Decorate Rental Properties

3. Set Boundaries

Stipulate very clearly in the tenancy agreement what you will and won’t allow. For example, you’re happy for them to paint, but they can’t remove any walls! Or they can put up shelves, TV brackets, and units as long as they fill in the holes afterwards.

Setting boundaries around letting your tenants decorate means you can retain a level of control over what happens with the property. This puts you in a better position if you need to re-market it in the future.

4. Discuss Plans Before New Tenants Move In

If you have a new tenant moving into your property, it doesn’t do any harm to ask them if they have plans to decorate.

Getting a feel for their style and what your tenant wants to do to the property can help reassure you that you’re not going to end up with a bad paint job or something you’d consider distasteful. It can also help you make up your mind about whether you want to let them decorate or not.

5. Take Pictures

Taking pictures of the property and undertaking an inventory before a new tenant moves in is an essential part of the onboarding process – whether you plan on letting tenants decorate or not.

If you’re allowing tenants to decorate, taking pictures is especially important. Not only will you have a record of how the property used to look (in case you want to change it back to how it was afterwards), but you can also check during inspections that the tenants haven’t renovated outside of the boundaries you set.

Need More Landlord Advice?

City Realtor are your local property experts in the Tower Hamlets area.

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 Laying Ground Rules for Tenants Painting Rented Property

Can tenants freely paint their rented property without any restrictions?

No, tenants must adhere to the guidelines specified in the tenancy agreement. If tenants paint, restrictions may apply, ensuring the property is maintained appropriately.

Are tenants allowed to hang pictures or shelves in a property they rent?

Landlords typically set guidelines in the tenancy agreement. While some may permit hanging pictures or shelves, it’s essential to check and seek approval to avoid potential issues.

Do many rental properties in the private rental sector allow tenants to decorate?

The flexibility varies among landlords, but an increasing number in the private rental sector recognize the benefits of allowing tenants to decorate within predefined boundaries.

How does setting boundaries on tenants’ decorating activities benefit future tenants?

Clearly defined boundaries in the tenancy agreement help maintain property standards, ensuring a well-preserved space for future tenants. It also facilitates smoother transitions between tenancies and protects the tenants’ deposit.

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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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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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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!

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Maintenance Tips for Landlords: Don’t Suffer The Consequences of Neglected Property Repairs

Maintenance Tips for Landlords

Owning a rental property in Tower Hamlets comes with its own set of responsibilities, and one of the most critical is ensuring regular maintenance.

That’s why we find that maintenance tips for landlords are always welcomed!

Unfortunately, many Tower Hamlets landlords neglect this crucial aspect of property management, which can lead to issues affecting both landlords and tenants.

In this article from the team at City Realtor, we’ll explore the common mistakes landlords make by failing to maintain their rental properties.

We’ll also look at why prioritising property maintenance is essential for a successful rental experience.

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

The Consequences of Neglected Property Maintenance

Neglecting property maintenance can have far-reaching consequences that affect landlords and tenants. These are some common issues, along with our maintenance tips for landlords:

Deteriorating Property Value Due to Neglected Repairs

When landlords fail to invest in regular maintenance, the property’s condition naturally deteriorates over time.

This decline can lead to a significant reduction in the property’s overall value. A poorly maintained rental property becomes less appealing to prospective tenants and can also result in lower rental income when compared to well-maintained properties in the same area.

Additionally, the resale value of the property may decrease, making it difficult to realise a profit if you decide to sell.

Tenant Dissatisfaction Due to Neglected Property

Tenant satisfaction plays a pivotal role in the success of your rental property business. A neglected property can lead to tenant dissatisfaction, and unhappy tenants are more likely to terminate their agreement early or report maintenance issues, creating additional stress and expenses for landlords.

Unresolved maintenance problems can also lead to legal disputes and potential fines if the property violates government regulations.

Increased Maintenance and Repair Costs Over Time

One of the most significant mistakes landlords make is postponing necessary repairs and maintenance tasks. When minor issues are ignored, they escalate into more extensive and costly problems. For example, a small leak can lead to water damage, mould growth, and structural issues if left unresolved. Regular inspections and timely repairs prevent costly scenarios, ultimately saving landlords time and money.

The Importance of Regular Property Maintenance

Now we’ve discussed the consequences of neglecting rental property maintenance, let’s delve into why regular maintenance is crucial for landlords. Our property management service includes the handling of maintenance and repair issues!

Longer Tenant Retention

Happy tenants are more likely to stay long-term, reducing void periods and turnover costs for landlords. Regular maintenance ensures that the property remains in good condition but also fosters positive tenant-landlord relationships.

When tenants see that their landlord is proactive in addressing maintenance concerns promptly, they are more likely to renew their tenancy agreement.

Legal Compliance Met

Landlords with rental properties in Tower Hamlets are legally obligated to provide safe and habitable living conditions for their tenants. Neglecting property maintenance can result in legal repercussions, including fines and penalties. To stay compliant with local housing regulations, it is essential to conduct regular inspections, address maintenance issues promptly, and keep thorough records of maintenance activities.

Enhanced Property Value

Maintaining a rental property’s condition and appearance attracts quality tenants and enhances its market value. Well-maintained properties are more appealing to prospective renters and potential buyers.

By consistently investing in property maintenance, landlords can secure higher rental income and achieve better resale value when the time comes to sell the property.

Tips for Effective Property Maintenance

To avoid the common mistakes associated with neglecting property maintenance, here are some tips for landlords in Tower Hamlets:

Create a Maintenance Schedule

Establish a regular maintenance schedule that includes routine inspections and preventive maintenance tasks.

This schedule should cover essential areas such as plumbing, electrical systems, roofing, and heating systems. Regularly inspect appliances and address any issues promptly.

Prioritise Tenant Communication

Encourage open communication with your tenants regarding maintenance concerns. Provide tenants with clear instructions on how to report issues and respond to their requests efficiently.

Make sure tenants are aware of their responsibilities in maintaining the property, such as reporting minor problems and promptly addressing any damages they may cause.

Budget for Maintenance Expenses

Set aside a portion of your rental income for maintenance expenses. Having a dedicated budget for maintenance ensures you can cover the costs of repairs and improvements without dipping into your personal finances.

Remember that proactive maintenance is an investment that will save you money in the long run.

Property Maintenance is a Responsibility Landlords Must Embrace

Regular property maintenance is not just a choice. It’s a responsibility that Tower Hamlets landlords must take seriously.

Neglecting rental property maintenance can lead to financial losses, legal issues, and tenant dissatisfaction.

Need expert landlord advice?

If you’re a landlord who would like more information on how to enhance your rental property value, attract and retain quality tenants, and maintain legal compliance, our team at City Realtor would love to hear from you.

Require a valuation, or searching for property management services in Tower Hamlets? Contact our team 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 Preventative Maintenance Tips for Landlords

What are essential property maintenance tips for landlords to prevent costly repairs?

Essential property maintenance tips include creating a maintenance schedule covering plumbing, electrical, roofing, and heating systems, promptly addressing tenant-reported issues, and budgeting for maintenance expenses to avoid dipping into personal finances.

How can landlords ensure a well-maintained property to attract quality tenants?

Landlords can maintain a well-kept property by conducting regular inspections, addressing minor maintenance issues promptly, and hiring professional contractors for specialised tasks, enhancing its appeal to prospective renters and buyers.

Why is it important for landlords to develop mutually beneficial relationships with tenants through property maintenance?

By prioritising tenant communication and promptly addressing maintenance concerns, landlords can foster positive tenant-landlord relationships, leading to longer tenant retention and reduced turnover costs, benefiting both parties.

What are the responsibilities of landlords regarding property maintenance in the UK?

Landlords in the UK are responsible for ensuring the property meets safety and habitability standards, conducting regular property inspections, and promptly addressing maintenance issues to comply with local housing regulations and provide a comfortable living environment for tenants.

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April 2024 Property Market Update

April 2024 Property Market Update

With the first quarter of the year now behind us, April 2024 has brought a positive forecast as some of the uncertainty of the past 12 months is starting to ebb away. Thanks to the latest developments in the economy, the property market is looking brighter for the next few months as we move forward towards summer.

Inflation Set to Impact Mortgage Rates

According to the Office for National Statistics, March saw the Consumer Price Index fall to 3.2%, taking the UK’s economy ever-closer to the target of 2% set by the government. This looks like good news for the property market, thanks to the influence it will have on mortgage rates.

The most up-to-date data from the Bank of England shows that the flurry of initial activity seen at the beginning of the year has now begun to calm. February saw a significant increase in the number of mortgage approvals as mortgage rate cuts prompted market activity. However in March, the number of agreed sales dropped to 2% above 2017-2019’s average, down from February’s 13% above.

Since mortgage rates now are almost back to the same level as seen in late December, it looks unlikely that the pace of activity seen so far this year will be maintained into the summer months.

Potential Action on Leasehold Maintenance Contracts

Homeowners locked in private new-build communal area maintenance contracts have a glimmer of hope on the horizon as over 40 Conservative MPs call for a ban. As the Leasehold Bill slowly works through Parliament, the Housing Secretary is now under pressure to include a “Fleecehold” ban to help the millions of people living under this model and facing steep estate fees.

The CMA (Competition and Markets Authority) has also recently recommended bringing an end to this model too, putting forward a proposal that local councils be required to adopt new housing estate public amenities once complete. According to the housing minister, the government is now paying careful consideration to this report, which also suggests introducing a property agent regulatory body to address leasehold issues and raise standards across the industry.

With news of homeowners facing shocking increases as high as 274% in their annual service charge bills for 2024, the prospect of the some positive change in the status quo can only be cause for cautious celebration.

Watering Down of Renter Reform

The news isn’t so good for renters, though, as the government set out changes to the planned protections in England for renters following concerns from a number of Conservative MPs that the original proposal would be too much of a burden for landlords.

The latest alterations include requiring tenants to commit to at least a 6-month contract rather than being able to end their tenancy with 2-months’ notice from day one and, most controversially, delaying the no-fault eviction ban on existing tenancies pending the outcome of the justice secretary’s assessment of the court system’s ability to handle repossession claims.

One positive proposed change, however, is the introduction of a right to local council homelessness support for tenants who find themselves evicted under the new grounds for possession.

While this watering down of the Renters (Reform) Bill is sure to be received negatively by those tenants who are aware of its existence, recent research published by the TDS Charitable Foundation shows that a surprising 83% of people who are currently living in a rental property lack any awareness of the Bill’s proposals. Of those who know about the proposed reforms, most are pessimistic about their ability to result in tangible changes. 42% believe the Bill will change little about the rental sector, while 37% believe it is unlikely to be implemented at all.

Good News for Landlords as Tenants Stay Longer

While tenants may be less than thrilled with the latest developments in the property market, things are looking up for landlords as The DPS (The Deposit Protection Service) released its research that revealed tenants are staying in their properties for a third longer than in 2020.

Today’s typical tenancy is now lasting for 924 days, a significant increase over the 706 days seen four years ago. It appears that a combination of the cost-of-living crisis, high rents, and a competitive market for new rental properties are leading to renters remaining for longer periods in their homes.

In further positive news for landlords, Octane Capital reports that the typical buy-to-let property yield has now increased to 5.8%, up from 4.9% over the last two years, and while running costs have gone up over the same period, landlords are still enjoying attractive net profits overall. This report, paired with the proposed delay in the no-fault eviction ban, is likely to encourage existing landlords to remain in the market for the foreseeable future.

As we move further into the second quarter of the year, time will tell how the property market will develop. Traditionally, spring sees more homes being listed for sale, so we will wait with anticipation to see what May has in store!

What Next?

We are delighted to bring you our property market updates each month. If you are thinking of buying or selling 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!