New windows can not only improve the appearance of your property, they also add value, make it more appealing to renters and buyers alike. It will make the property quieter, lower your carbon footprint and improve the energy efficiency - helping your tenants to keep utilities bill down. Choosing new windows and finding a trustworthy company to supply and fit them can be a minefield. The first thing to do is to assess whether you really need new windows or if painting the window frames will suffice.

Wood windows

Do your research into which type of windows are best for your home as this can have a significant effect on the value. If you have an older property such as a tenement flat or listed building, it could be better to buy wood windows. Wood-window manufacturing has come on leaps and bounds in recent years. You can now buy windows made from wood that has been impregnated with preservatives and factory finished to a high standard. This will reduce the maintenance required and prevent water penetration and you will only need to repaint them every eight to 10 years. Find out if the window company is a member of the Wood Window Alliance and choose fully factory-finished wood windows. Good quality wooden windows can be much more aesthetically pleasing and blend in with the style of your property and should last up to 60 years. However, wooden windows are more expensive than their PVC counterparts.

Aluminium windows

If you have a modern contemporary home, you might prefer a more industrial appearance. Aluminium windows are often used on homes built in the 1930s, warehouse conversions and extensions. It’s worth noting that metal frames can be colder than wood or plastic but many providers use a‘ thermal break’, which improves insulation and prevents condensation. It is a very strong material, and the slim frames can maximise the light. You can also have them made in various colours.

PU and PVC windows

This is the most popular and cost-effective choice, and you can choose from various different opening styles and even simulated wooden sash windows. PU and PVC windows cost around 20% less than timber. With so many different options available you can find a style that will perfectly match your property. PVC windows are extremely low maintenance.

Glazing

Choosing the glass is just as important as the frame. There are several types of glass available, and a reputable window company should talk you through the options and the pros and cons of each. As a general guide, the window’s energy rating which must be between A and C to comply with current regulations – more information can be found at the British Fenestration Rating Council. You can choose a glass which has an invisible coating that reflects heat back into the room while letting in free heat from the sun. This is known as passive solar gain. You could also opt for triple glazing – this retains heat better than double glazing. However, this is expensive, and it may not be cost effective when looking at the energy savings. Unless your property is in a conservation area, your windows must be at least double glazed to comply with building regulations. If it is a listed building, there may be exemptions so it’s worth checking with your local council. If your period property isn’t allowed double glazing then consider secondary glazing. This means that an additional pane of glass or polyester film is fitted inside single glazing.

One of the most crucial elements of your buy to let property is the rental income. Not only can it cover your costs including your mortgage repayments, but it can also provide a source of income and the ability to scale your portfolio. At present, the UK average void period at the start of your investment is 20 days (Goodlord’s rental index). That’s why it may be worth exploring two options – choosing a property with tenants and choosing a new, pre-tenanted property. A property with a tenant in-situ According to recent research by Howsy, less than 1% of properties currently listed for sale across the UK have a tenant in situ, so they are a rare find. However, if you do manage to find the right one it can be extremely beneficial. By choosing a property that already has a tenant who is in a rental contract enables you to have immediate rental history which means you can better predict the return on your investment in the future. In addition, it means that the property will already have furnishings with no extras to pay for. Make sure you check how long the tenant has been paying the rent but also how long it has been since it was increased. With the current COVID situation you may choose to keep the rental fee the same depending on your tenants circumstances, but it will indicate whether they are paying the current market rate. If they are a good tenant and you want to keep them, it may be worth fixing the rent for a period of time. Remember a good tenant is worth its weight in gold – you’ll have regular income, paid on time and a property that is well taken care of. Pre-tenanted This means that the property is newly built and the developer or agent has already agreed on the tenancies ahead of completion. Although a new property won’t have a rental track record, you can still do your due diligence to find out what the rental income will be and can predict how well it’s likely to perform. One of the benefits of a pre tenanted property is that you have control over the rental income you will earn from the off. As a new property, the agents responsible for agreeing on pre-rentals will have marketed the property at the full market rate, so from the very start you should be able to make a great return. If you want to avoid the initial void period, or want to guarantee a good tenant, buying with a tenant in place can prove to be a viable solution.

Property Prices are Still Rising

At the start of last year, no one could have anticipated that we would live through a global pandemic that would turn our world and way of life upside down. What’s more, no one could have predicted the effect that the pandemic has had on house prices. When the property market effectively shut down, there were reports of people pulling out of their property purchase fearing that house prices would crash. However, since the market re-opened last June, house prices have continued to rise with a buoyant market, record selling times and asking prices at a record high in all countries and regions across the UK. According to Rightmove, for the third month in a row, the national average house price has risen to a record high of £336,073. See the latest House Price Index. The demand for property isn’t limited to those purchasing – the rental market has been equally busy as people have reassessed where and how they want to live. If you’re thinking of investing in property the market can be overwhelming given the competitive nature of purchasing property at present, especially when you are trying to maximise your profits. But it helps to understand why the market is so busy and why demand doesn't look to ease up any time soon.

Interest rates

According to Moneyfacts, buy-to-let product choice has steadily increased and the average two- and five-year fixed rates have fallen.  In fact, the average two-year fixed rate is lower now than it was in 2019. In addition, the largest number of products available has been seen at the start of July 2021 with 971 more products on the market now compared to the same time last year. Landlords with 40% equity or deposit would be able to secure a competitive deal as the average two and five-year fixed rates in this bracket remained 0.03% lower year-on-year. For those buying a new home, low interest rates have helped more people to purchase their first home or move up the property ladder. The Mortgage Guarantee Scheme was launched in March this year, offering buyers access to 95% mortgage loans in a bid to tackle the widespread withdrawal of high loan-to-value mortgages. Although not all lenders have signed up to the scheme, it has prompted a most lenders to offer 90% or 95% mortgages independently of this scheme.

A record number of movers

Demand for homes is outweighing supply. According to Rightmove, more than 180,000 new properties were listed on the portal at the start of June 2021, but this is not meeting the current demand. Homes are selling and renting faster than ever before and for those buying a new home, a record number are being sold over or at asking price. Most in demand are large, detached homes with gardens or city apartments with access to outside space by way of a balcony or terrace as many people are working remotely and commuting less. This trend looks set to continue. The sale of large family homes at the top end of the market are contributing to the biggest rise in asking prices this time of the year in six years.

Relocations

There has been a marked increase in people moving from more expensive cities and towns to more rural areas. The result is that prices in towns and villages in the most in-demand regions have risen at an incredible rate. The value of homes have risen by 8% in Scotland in the last year and it is the UK's fastest selling region at just 24 days – the next fastest region is the south west at 38 days.

LBTT

The LBTT break that ended in March along with low record interest rates have helped many people in being able to afford higher prices. The temporary reduction of LBTT offered buyers a potential saving of thousands and this contributed to the spike.

What is the outlook?

According to Rightmove’s early indication of prices and levels of buyer demand, the number of people sending enquiries to estate agents is still up by almost 40% compared to the same time last year despite the end of the stamp duty (LBTT) holiday. However, there are early signs of the market cooling as the number of sales agreed is still growing, but available properties are in short supply. High prices paired with the lack of supply is starting to impact buyers’ ability or inclination to move. The super charged activity cannot last forever but many commentators including those at Rightmove believe that the market will remain vigorous for the remainder of the year. If you are renting out or selling a property, you can be confident that you will attract a large number of enquiries, and this looks set to continue for the rest of the year.  

According to the latest research, over three quarters of tenants are unlikely to pay more for a smart home when renting a property. The study from Ascend Properties contradicts predictions from industry experts who believe that smart homes with the latest mod cons will be in greater demand and command and higher rents. The Build to Rent (BTR) sector is often seen as the future of renting, with smarter homes being presented to tenants. Smart homes feature mod cons including super-fast broadband, amenities on site, communal outdoor areas, voice-controlled technology and more. However, the latest research shows that residents aren’t too worried about smart tech integration, with only a third saying that they would be more likely to rent a home purely because it had smart tech. Only 2% of those questioned said that they would be willing to pay more than the market rate because it was smart tech enabled and the majority said they would be less likely to pay more for a rental. Those questioned who are currently renting said that the ability to save money through smart tech features including smart meters and utility management held the greatest appeal. In addition, safety features such as smart locks, surveillance technology and high-tech alarm systems was appealing – as were entertainment systems and the ability to access lighting and heating remotely appealed to tenants, but eco-friendly smart tech and voice activation features were less sought-after. In summary, while smart tech is a welcome addition to a rental property, tenants are not willing to pay over the odds for a fully automated home of the future. Instead, tenants want the basics to be spot in – including fast, reliable broadband, well maintained interiors, access to outside space and good quality fixtures, fittings and appliances.

Zoopla has released its quarterly Rental Market Report which shows that following a fall in rents before the pandemic, in the wider commuter zones of some of the UK’s largest cities rents are increasing. This is due to a rise in demand from renters who are seeking homes with more inside and outside space in response to the restrictions we have faced over the last 14 months. Since the market reopened last June, renters have been reprioritising their location and needs – with home working looking set to continue either full or part time for many, many people are seeking additional space to accommodate their ‘new normal’ with room for a home office. In addition, after being restricted to our homes and only able to socialise within the confines of our gardens for most of the last year, demand for outside space is at a premium – whether it’s a communal garden, balcony or roof terrace. Demand for rural properties close to green open spaces has also increased. Small areas of demand and rental performance have been redefined across inner and outer cities with rents in well-connected commuter areas seeing the strongest growth and across the UK as a whole, and excluding London, rents are running at 2.3% which matches pre-Covid levels, with demand increasing 21% year-on-year. Across the UK it is taking 30% less time to rent out houses and 2% less time to rent out flats as renters look for more space and as a result, many landlords are reducing their rents in order to attract tenants where there is less demand, although bucking the trend, demand in the City Centre and West End of Glasgow is seeing a stable level of demand. According to Zoopla, the outlook for the rental market for the rest of 2021 depends upon how fast the rollout of the vaccine can reduce the impact of Covid. However, the ongoing reopening of offices, shops, leisure and entertainment venues is continuing (despite Glasgow staying in level 3) has meant that many businesses are starting to get back to some normality. Flexible working appears to be continuing into the summer months which is forcing a shift in priorities and this supports the market for larger 2/3 bedroom houses and flats. Add to this the UK-wide lack of new investment in rented property by private landlords and the supply of rental properties is not rising, which in turn is supporting a general rise in rental prices.

If you're considering taking a step into the world of property investment, it’s important to understand what makes a sound investment. From finding the right property in the right location to calculating yields and finding a great letting agent, here’s what you need to consider:

Investment budget

When purchasing a buy-to-let property you’ll need a good deposit and a mortgage (unless buying outright without a mortgage). Buy-to-let mortgages are more expensive than residential mortgages with higher interest rates and arrangement fees, and you’ll need to put down at least 25% of the property value. Before purchasing the property, talk to local agents to find out how much you can expect to rent the property for. Mortgage lenders typically request that the rent covers 125% to 145% of the mortgage repayments. It’s also important that you have enough money for void periods and maintenance. Talk to a mortgage broker to work out what you can afford and to discuss the mortgage application process.

Rental yield

It’s essential that you buy a property in an area with strong growth potential as well as a healthy rental yield. The rental yield is the measure of return - or how much you’ll earn from your investment. It’s calculated as a percentage of the value of your property – and as a rule of thumb, you should achieve a yield of 5% or more. This will depend on where you buy, the type of property you invest in, and how much you can expect to rent out the property for. A rental income of £10,000 per year on a property costing £200,000 gives you a 5% yield. A rental income of £20,000 a year on the same property gives you a 10% yield. With property in Glasgow generally falling below the UK average, this means that your rental yield will typically be higher.

Investing in Glasgow property

Glasgow has the largest economy in Scotland and the fourth largest in the UK. Much of Glasgow’s shipyard areas have been regenerated including the SECC, SSE Hydro arena, Pacific Quay and the International Financial Services District with a large number of offices. It also has one of the largest student areas with 27,000 students at the University of Glasgow with the largest campus in the West End, the University of Strathclyde with 21,500 students and Glasgow Caledonian University with 16,500 students. According to Hometrack, Glasgow is one of the cheapest cities in the UK to invest in property with a fast time to let and good rental yields especially in Glasgow’s West End where demand is consistently high. The West End is one of the most popular areas in which to live – it’s ideal for young professionals due to its proximity to the city centre, with a large campus and plenty of great bars, restaurants and independent shops it’s extremely popular with students, and there are several good schools in the area along with some beautiful period properties making it a good location for growing families. With its unique character, beautiful architecture and green open spaces, demand for property here is extremely high. Byres Road is the centre of the West End and popular areas including Hillhead, Dowanhill, Kelvinside, Broomland, Anniesland, Yorkhill, Finnieston, Partick, Garnethill and Hyndland. Yields for G11 and G12 postcodes are around 5%, while in G13 they are around 6%.

Property type

Consider who you want to rent your property to – students, families or young professionals - and what they will be looking for. For example, professionals will want to be close to transport links, students will want to be close to amenities and college campuses and families will be looking at school catchments. Make sure you talk to letting agents about whether the property is suitable for your target tenants. Draw up a list of areas, take a look at area guides and the latest housing index, and current rental values.

Using an agent

A good letting agent will not only help you to set a realistic rental income, they will also advise on getting your property rental-ready and ensure you have all the documentation required. They will also advertise the property, vet potential tenants, draw up the rental agreements, handle the deposits and collect the rental payments each month. Talk to us if you are considering property investment or would like advice on letting out your property in Glasgow.

In the last few months, we have seen growing demand for rental accommodation, along with a rising number of first-time landlords. For those who have just started on their property investment journey, it can be daunting trying to keep up with the constantly evolving laws and regulations. However, with things starting to get back to normal these tips could help you to maintain some clarity surrounding your obligations as a landlord.

Obtain a license

Your starting point is to check whether you need a landlord license from your local council before your property can legally be rented out. This legislation was introduced in 2006 with the main purpose of ensuring landlords maintain their rental properties to an acceptable standard.

Furnished or unfurnished?

If you are renting out your property furnished, consider what items you want to include in the itinerary. Don’t let the property with anything valuable or sentimental and all upholstery just comply with the fire and furnishing act. If you are renting an apartment to students, you may find it easier to let with furniture as they are unlikely to have lots of belongings having just left home or previous digs, but if you have a house it’s likely that your tenants will be a family or couple and are more likely to have their own furniture, making an unfurnished property more appealing.

Fire safety

You are legally required to provide fire alarms on every floor of the property and carbon monoxide detectors in rooms where solid fuels are burnt. They need to be tested and in full working order and you will need to provide copies of the gas safety and electrical safety certificates to the tenants along with a copy of the EPC.

Tenants with pets

It’s worth deciding if you are comfortable renting to tenants with pets. With many more people with pets following the pandemic, there has been a rise in tenants seeking a property that will accommodate their new companion. By allowing pets you could have longer-term tenants, but this will need to be weighed up with the  wear and tear to the property they could cause or any disputes with neighbours should the pets be noisy.

Referencing

In order to protect your property and your rental income, it’s important that you rigorously reference new tenants to ensure they are reliable, have a good credit score with no rental payment defaults, and can make the rental payments each month. You will need to confirm that they have credit eligibility, employer checks are acceptable and that they have good landlord references. This is something a good letting agent will assist you with.

Tenancy Deposit Protection

Your tenants’ deposit must, by law, be protected in one of the Government-authorised Tenancy Deposit Protection schemes. There are three available – Deposit Protection Service (DPS), MyDeposits or the Tenancy Deposit Scheme (TDS). It will need to be placed in a scheme within 30 days of receipt and you will need to give the tenant the Deposit Protection Certificate and completed Prescribed Information. Failure to do so could result in you not being able to evict your tenant plus the full return of the deposit and a fine of up to three times the value of the deposit. Your letting agent can deal with this on your behalf.

EPC

Your tenants must have a copy of the Energy Performance Certificate (EPC). Your property must be at least EPC band E before letting it out and you could receive a fine if you try to arranging a new let without ensuring your property meets these standards.

Inspections

You should regularly inspect the property whilst adhering to all COVID-19 safety measures, and you will need the tenants’ permission in advance, and this should be stipulated in the tenancy agreement. Again, a good letting agent can carry out these checks for you.

Insurance

It’s essential that you inform your building insurer that you are renting the property out in order to maintain the validity of the policy as you will need specialist landlord insurance that will cover loss of rent, damage, legal expenses and liabilities.

Choose an agent

It’s vital that you are familiar with your role and responsibilities as a landlord before marketing your property. If you don’t comply with the rules and regulations from the very beginning of the tenancy, you may find yourself in a vulnerable position should anything go wrong. That’s why it’s essential that you choose an agent who can advise you on what you need to do and can help you vet tenants to ensure your property is in safe hands.

According to recent figures from Moneyfacts, buy-to-let mortgages have flooded back to the market in March with over 200 new products launched. As of April 3rd, there were 2,333 mortgages available to landlords. This is the highest number since the start of the pandemic when many lenders withdrew their products, and 233 more than the previous month marking a rise for the fifth consecutive month. However, two-year fixed rates are currently 0.28% higher than this time last year. Buy-to-let mortgage availability has now recovered to 81% of its pre-pandemic levels. In the residential mortgage sector, we have seen a 68% recovery. According to Hamptons International, there are currently just under two million outstanding buy-to-let mortgages in the UK. In 2016, a large number of mortgages were completed as landlords rushed to beat the 3% stamp duty rise and many of these will be looking to remortgage over the coming months as their five-year fixed deals will be coming to an end. These landlords won’t want to revert to their current lender's standard variable rate, as it will be typically higher. Landlords will also be looking to buy new properties and in Scotland recently took advantage of the LBTT deadline at the end of March, and across the rest of the UK will be looking to buy within the end of June stamp duty deadline. In the final months of 2020, around 15% of property in the UK was purchased by investors, with almost half of all investor purchases funded via a mortgage. Taking advantage of the raft of new buy-to-let deals will be existing landlords looking to refinance and those considering property investment for the first time. Against this backdrop of the rising number of deals, buy-to-let rates have continued to rise. According to Moneyfacts, the average two-year fixed rate is now 3.05%, which is 0.28% higher year-on-year and the highest average recorded since June 2019. The average five-year fixed rate deal is currently 3.415, an increase of 0.17% compared to the same time last year. There are signs that buy-to-let interest rates may be starting to fall for those buying with larger deposits, or those with a good amount of equity in their existing properties. For example, the average buy-to-let two-year fixed rate mortgage for those with 40% equity has fallen from 2.52% to 2.14% over the past month. Lenders have been wary of the effects of the pandemic on landlords as many tenants have been furloughed, leading to them withdrawing high loan-to-value lending. At present, lenders require the landlord to demonstrate that their rental income will cover between 125% to 145% of the mortgage repayments. Although mortgage rates were lower before the pandemic than they are now, they are still very low from a historical perspective and some experts feel that they are unlikely to drop further. Five-year fixed rates have been popular in recent years as there are less stringent stress tests on these deals, enabling borrowers to take out larger loans.

This month we heard the news that we will soon be able to spend time outside in our gardens and parks with friends and family. With that in mind, you might want to give your outside space a revamp. However, when you’re renting a property it can be difficult to make your home exactly how you want it to be without worrying about causing any damage resulting in losing your deposit. The latest research from Boiler Plan has revealed that Google searches for how to update a rented outdoor space has seen a big leap. Searches for ‘DIY balcony ideas’ have risen by 586%, searches for ‘garden ideas’ have increased by 167%, while ‘gardening in a rented house’ searches have gone up 29%. With that in mind, here are some great ways to put your personal stamp on your garden without causing any permanent changes – making them perfect for rented homes.

Potted plants and hanging baskets

Some well-placed potted plants can transform your balcony, deck or garden into an oasis full of beautiful flowers and greenery. Invest in pots that aren’t too big so that you can easily take them with you when you move. Hanging baskets can also make any garden look impressive, adding a pop of colour to any doorway or patio. Fill them with plants that are easy to care for.

Home furnishings

Home furnishings outside can help you to create a comfortable, cosy space. A splash of colour can transform a dull area – use rugs, seating with water-proof cushions, stand-alone hammocks and side tables with bright pots.

Grow your own

Over the last 12 months there has been a spike in people wanting to grow their own vegetables and allotments have never been in such high demand. Although your landlord is unlikely to allow you to dig up their garden you could investing in a clever planter. Using vegetable bags and pots you can grow your own food without using  the garden grounds.

Fire pit and lighting

One of the biggest trends as a result of the pandemic is fire pits and fairy lights. A fire pit enables us to enjoy the outdoors whatever the weather, especially on chilly evenings. They are freestanding and perfect for renters as they pose no risk to the garden.  Fairy lights or solar-powered lighting are an affordable way to add some ambience to your garden. Try weaving fairy lights through a garden screen or stringing them across the fence.

Garden screen

Revamp your outside space with a garden screen for a decorative feature and to cover up any unsightly areas or give you privacy from neighbouring gardens or balconies. Again this is something that can go with you when you move on to your next property.

Despite a challenging few years for landlords following tax and regulatory changes, buy-to-let continues to outperform most other asset classes. With poor returns on savings from banks and building societies following historically low interest rates, a large proportion of investors have turned towards residential property to supplement their income. Add to this the backdrop of low borrowing rates on mortgages, high demand from tenants, stable yields and rising house prices over the last year, buy-to-let remains an attractive investment option. According to UK Housing & Spatial Information Specialist, Dan Cookson, in Scotland in February 2020 there were 325,649 households in the private rented sector – 63% of these were flats and 27% houses. What’s more, 49% of private rented properties are two-bedroom properties with one-bedroom properties making up 24%. The private rented sector is estimated to be worth £46 billion and is therefore an important part of Scotland’s economy with approximately 242,000 registered landlords. With around 10 million people in rented accommodation, it is no surprise that research from Knowledge Bank has revealed a growing number of new buy-to-let investors. Knowledge Bank provides a large database of mortgage lending criteria, and the latest monthly criteria index shows the terms that brokers are searching for, which gives an indication of mortgage completions in two-or three-months’ time. This analysis of brokers’ searches in February found that intermediaries are working with a growing number of potential new landlords along with interest from first-time landlords becoming the most-searched term by brokers in February. It also suggests that those who weren’t currently on the housing ladder were looking at buy-to-let as an option due to restrictions around loan to income for residential properties. This reveals that investors, who would normally look to deal in stocks and shares, are turning their attention towards buy-to-let. Another top search term was ‘Soft footprint at DIP stage’ suggesting that brokers were carrying out searches that would not impact future applications possibly as a result of clients having a low credit score. 'Furlough' was also top of the searches along with ‘Maximum age at end of term’ and ‘Self-employed’.

According to the latest data from Direct Line, 60% of landlords have used the LBTT (stamp duty) holiday to expand their property portfolio. The research carried out by Direct Line shows that figure this rises to 79% among commercial landlords. Among landlords with several properties, 43% invested in properties outside major cities, with 82% of landlords who have done this saying they expect a large number of renters to move out of city centres following the pandemic given the increase in those who have and will continue to work from home. Half of all landlords believe the stamp duty holiday introduced last July until March 31st has kept the property market afloat while 43% have stated that it has prompted them to bring forward their plans of expanding their property portfolios. Although the tax holiday is due to end on March 31st there have been reports in the last week that the chancellor could prolong the tax break in the upcoming budget, and this could prompt Scotland to follow suit. At present it isn’t clear if this three-month extension would apply to all purchases or those that have already been agreed. According to the Direct Line survey, 45% of landlords fear that the end of the tax holiday will adversely affect the value of their property portfolio. That’s why 30% of landlords have stated that they are prepared to cut corners in order to complete their purchase before March 31st including forfeiting thorough property survey which could delay the purchase. Almost 75% of multi-property landlords will pull out of transactions if the purchase doesn’t complete before the stamp duty deadline in March.

  Whether you’ve moved into a new property or are getting your property ready to let, there are many things you can do to improve the living space and appeal of your home for the property market. With the UK in another lockdown many of us are keen to make home improvements whilst we have the time. However, it doesn’t mean you have to spend a fortune to carry out home improvements. Hitachi recently looked at the most effective home improvements when you’re on a budget.

Painting

A fresh lick of paint can transform any room and it can be done very easily and cheaply compared to hiring a professional decorator. As an estimate it will cost around £70 to paint a room and could add more than £1,400 to the value of your home when selling and make it much more appealing to any renter looking for a new home.

Kitchen

A new kitchen can be extremely costly but you can make some small changes that will make a big difference. You could replace your splashback for under £100, paint a tiled wall for under £50 or even re-tile your kitchen for around £35 per square metre.

Curtains and blinds

Freshen up your windows with new curtains or blinds. You can purchase ready-made curtains and blinds from around £50 up to £300 depending on the size and fabric chosen.

Decluttering

Decluttering your home can be done for free – what’s more you could even make money if you were to sell any unwanted items. When selling or letting your home it’s essential that you make the most of space available by removing any excess furniture and belongings so that potential renters can picture themselves living in the property.

Kerb appeal

First impressions last so take a look at the outside of your home and make sure your garden is presentable and your front door (and the path leading to it) is in good condition. Sanding down and repainting your front door can give it a fresh new look and will cost under £100 (more if you invest in new door furniture). You could also invest in some inexpensive plants and flowers to brighten up the outside of your house. Talk to us at Newton Letting if you are looking to let your property and achieve the maximum rental value.  

It has been a challenging year for many people for a variety of reasons and we have experienced a once-in-a-generation pandemic, with another lockdown currently in place. But what is the outlook for 2021 for the rental market in particular? In early December we saw the first dose of the Covid-19 vaccine administered in Scotland. This resulted in a rise in demand for rental property, in particular good quality homes with space for working from home and access to a garden, as we look towards spring and those who have delayed previously seeking accommodation. There is an increase in demand for space – much like we saw in July 2020 following lockdown when people were confined to their homes. Gardens and roof terraces were in high demand as were spare bedrooms and larger living spaces to accommodate home working. Last year’s restrictions on socialising may well push demand for homes with space for entertaining as people look to make up for lost time. Summer 2021 could see a sharp rise in people looking for larger kitchens and dining areas in which they can entertain friends and family. During lockdown the demand for pets has been unprecedented. As a result, there will be an increase in demand for pet-friendly properties. Google recently reported a record number of pet related searches – and as well as homes that accept pets, there will be a requirement for access to parks and trails. Google searches for rental properties with outdoor space has increased and allotment waiting lists are higher than ever before. This year could be a year that homeowners reconnect with nature. Recent research from Howsy has shown that houses are in higher demand than flats. However this isn't as pronounced in Glasgow which shows that demand for houses is 59% whilst demand for flats is 41%. The current pandemic has shifted tenant demand but the demand for flats in Glasgow still appears to be robust especially given the number of university students moving to the city. The average university rental yield is 4.4% across the UK, with the top three results found in Scotland. The University of Dundee came top with an average rental yield of 7.2%. Second and third were the University of Aberdeen and the University of Strathclyde with rental yields of 6.8% and 6.62% respectively. The University of Glasgow had a rental yield of 4.4%. Students will be searching for accommodation now that they have more information regarding their results and the influx in demand is positive news for buy-to-let landlords in Glasgow. Talk to us if you are considering investing in rental property in Glasgow.

Whether you are a seasoned or novice investor, it’s important to talk to the experts for the right help and advice according to your individual circumstances. In the meantime, we have put together some information that may help you to scale your portfolio in the right way. This year the UK went into a recession following the pandemic. However, unlike previous recessions this one isn’t driven by finance - instead it has been caused by a health crisis. This is a once-in-a-generation event and although many people have found this year challenging, one area that has remained buoyant is the property market. When the market re opened in June, all aspects of buying and selling property remained active even throughout the current tier restrictions. With built up demand, the news of the LBTT holiday until March 2021 and a change in buyer/tenant priorities, activity in the market has been unprecedented. Demand for buy-to-let is still high and it appears that property prices have been unaffected – in fact, house price growth predicted to sit at around 4% by the end of the year and is currently around 2% to 2.5% in Glasgow.

Location, location, location

It’s always going to be a safe bet investing in city centres and University towns. At present, houses are more in demand than apartments as people are looking for the option to work from home. According to recent research from Zoopla, five out of the top ten hotspots where landlords can find better rental returns are in Scotland. The property portal compared average rents across the UK for two-bedroom properties with how much they would typically cost for landlords to purchase and found that strong rental yields are clustered in Scotland and the north-east of England. Landlords in East Ayrshire, North Ayrshire, Inverclyde and Middlesborough can typically generate rental yields of 7.7%. In Glasgow and Stirling, typical yields were calculated at 7.6% and 7.5%. Scotland has some of the UK’s most affordable buy-to-let property, although it does depend on how big a house you’re looking for. Zoopla found that out of the top 10 affordable cities in the UK, four of them were in Ayrshire.

Diversify

It’s wise to spread your risk across different properties in order to offset any issues you may have with one of your rental properties. You could also diversify by looking at other asset classes within the property market such as HMO’s (which tend to offer very high rental yields) semi-commercial units which will help you to benefit from the stamp duty surcharge which is normally levied on investment properties. You can also consider diversify the geographical area – the location is vital and it’s worth looking at which cities and city regions are performing well.

Mortgages

Major buy-to-let lenders have launched some new products over the last few months, and increased the loan to value of their mortgages with some 75% deals available. Getting advice from an independent mortgage broker is key.

Investing through a Ltd. company

There is an increasing number of landlords who are choosing to register as a limited company to manage their portfolios. When the limited company owns the properties in a portfolio, the company also owns the profits – so as a landlord you may have to pay income tax on any money they’re paid by their limited company. Limited companies pay corporation tax, not income tax and these rates are lower. As a director of a limited company you must keep accounts detailing all income and expenditure, and all purchases using company money must have a demonstrable benefit to the business. Talk to us at Newton Letting about managing your property portfolio.

This is an uncertain time for many landlords and tenants. On November 2^nd the Scottish Government announced a new five tier system of restrictions to try and stem the spread of COVID-19. However, it has been confirmed that the property market will stay open across all tiers and property appraisals, property marketing activities, viewings and house moves can all go ahead. On November 17th it was announced that on Friday November 20th at 6pm eleven local authority areas across central and western Scotland, including Glasgow, will enter Tier 4 restrictions for three weeks.

What is the guidance for landlords, agents and tenants in Tier 4?

Lettings agents and landlords are able to access properties by appointment. All visits must follow guidance as set out by the Scottish Government with face coverings, social distancing, hand washing and additional cleaning. Agents and landlords are required to ask if any member of the household has either been asked by Track and Trace to isolate or are showing any symptoms including a new continuous cough, high temperature or loss of smell/taste. If they are isolating or have symptoms, then the appointment must be delayed for at least two weeks and they are no longer displaying symptoms. If a potential renter would like to view a property they can do so. However, virtual viewings should be carried out where possible and a physical viewing should only be undertaken if they are seriously interested in letting and they have been pre-vetted. When viewing a property, all parties must wash their hands thoroughly or use hand sanitiser as soon as they enter a property. Internal doors or cupboards must be left open, if there are several people in a room at one time, they must be two meters apart and face coverings must be worn at all times. Tenants are allowed to move into a property during Tier 4 restrictions and are permitted to move from outside their council district for the purposes of moving home. If you need to carry out repairs on a property this is permitted, and tradespeople are allowed to enter homes for purposes of repair or building/renovation works. Any visits must be carried out by appointment and with measures in place such as social distancing, face coverings, cleaning hand washing. In terms of inspections for gas, electrical and fire safety, these can go ahead as long as a tenant is not shielding, isolating or displaying symptoms. If your tenant is affected by their ability to pay, make sure you have an open communication with them to try and work out a solution. If they are in financial difficulty, they can claim Universal Credit which includes support for housing costs, and you may qualify for an interest free loan. No tenant should be evicted if they are suffering financial hardship from COVID-19. In addition, landlords can apply for a mortgage break of up to six months. Talk to your lender at the earliest convenience if you are in this position.

What are the Tier 4 restrictions?

• Restrictions on socialising will remain the same as in level 3 areas but with the advice to stay at home as much as possible.
• Non-essential shops and hospitality establishments will be closed without exception.
• Hairdressers and other close contact services will be closed.
• Homeworking is the preferred option for all sectors with the exception of essential work, outdoor work, construction and manufacturing jobs.
• Non-essential travel into or out of level 4 areas is prohibited and public transport should only be used when essential.
• Indoor gyms will be closed and outdoor sports will be restricted to non-contact games.
• Informal childcare is permitted.
• All aspects of selling, buying, letting and renting homes is permitted.

If you require advice or help with your rental property, talk to us at Newton Letting. 

There has been an increase in demand from Buy to Let property investors for tenanted properties. Tenants are increasingly renting for the longer term and regarding properties as their home rather than a stop gap or short-term arrangement. Buying a property with a tenant in situ or sitting tenant has a number of benefits to investors. There has been an increase in all areas across the UK with some areas showing as much as a 55% rise in demand. If you are purchasing a property with sitting tenants, it will be different to the usual sales process so you will need to employ the services of a conveyancer with commercial experience. You’ll need to carry out additional enquiries in all conveyancing transactions, especially with regards to the tenants. The seller will need to disclose all information about the tenants, including the Tenancy Agreement, to establish when the tenancy was created, the status of the tenants and how they may be regulated by legislation. You will also need to ensure that the property meets safety regulations and all the necessary certificates are in place, such as energy performance, gas and electrical. You will also need to inform the sitting tenants by law, and provide them with your details. When buying a property with a sitting tenant, there’s no void period or advertising costs to find a new tenant. You’ll have a trustworthy tenant with a proven payment history as soon as the property is yours. This means you’re guaranteed rental income from day one so you can budget with confidence and rely on rental income. They will already have a contract in place, so their tenancy won’t be affected by new ownership. On the flipside, when you buy a property with a sitting tenant they are entitled to continue to live in the property and this doesn’t affect their tenancy agreement or their rights. This means you can’t evict them or increase their rent until their fixed term tenancy ends. Talk to us to find out more about taking on a Buy to Let property with tenants in situ.  

There is some good news for private tenants who are experiencing financial difficulties and unable to access certain benefits or support that will help them to meet their rental payments. A sum of £10 million has been allocated to the Tenant Hardship Loan Fund with details of who is eligible and how to apply will be announced soon, with the loan set to be accessible from November. An extra £3 million is being pumped into the Discretionary Housing Payment fund, which has been implemented in order to assist tenants already in receipt of benefits. The Discretionary Housing Payment fund was originally a £60 million budget set up to mitigate the impact of the bedroom tax in Scotland. It has now been increased by £19 million including the latest £3 addition. Scottish Housing Minister Kevin Stewart believes that these measures will ensure no one is left in a position where they cannot access support to meet their rental payments. During the same announcement, the Housing Minister extended the current ban on evictions (due to end on September 30^th) to March 2021. This means that regardless of the type of tenancy, or what kind of notice is served, or for whichever reason, all eviction proceedings will be placed on hold. The only exceptions to this are cases involving anti-social behaviour or domestic abuse. Find out more: Scottish government’s support for tenants.  

Since the UK came out of lockdown there have been reports that we are seeing a property mini boom: *Sales agreed data suggests a 13 year high for the market. Year-on-year, the number of sales per branch increased by 44%. *The number of house hunters registered per estate agent branch rose by 13%, increasing from 379 in June to 428. (Zoopla) *In July 2020 in the UK 8% of properties sold for more than the original asking price and year-on-year housing demand is up by a third. (Zoopla) *Year-on-year, housing demand is up by a third. *The post-lockdown housing market rebound shows few signs of slowing despite the UK going into recession, with the number of new sales agreed in August on Zoopla running 76% ahead of the five-year average. (Zoopla) *Buyer appetite since the start of 2020 is now 34% higher than the same eight months in 2019 and, despite the summer holidays, it remains unseasonably strong. (Zoopla) *More homes are coming onto the market, with the flow of new supply over the last month 50% up on this time last year. (Nationwide) *Edinburgh house prices rose by 3% and Glasgow 2.2% *During Q2 of 2020, average rents in Glasgow rose by 1.4% year-on-year to £810. Four bedroom properties experienced the greatest year-on-year increase in rents, rising by 3.1% to £1,858. (Zoopla) *The buy-to-let mortgage market is showing signs of recovery after the number of deals nearly halved during the early weeks of the coronavirus pandemic. The average cost of two-year and five-year fixed rate mortgages have also fallen slightly compared with March, to stand at 2.72% and 3.11% respectively. (Nationwide) How is this possible when house prices crashed in the last recession? It’s possible that this is because the recession we are seeing today has been driven by a health crisis wheras the last recession in 2008 was driven by finance. The Government chose to shut down certain markets whilst implementing measures to support businesses affected by the pandemic with incentives to boost the property market such as a rise in the Stamp Duty/LBTT threshold. So why is it still a good idea to invest in property? House price predictions from Savills shows that prices are expected to grow by an average of 15% by 2024 although London will see with just a 5% increase. Alongside house price rises, rents are also set to increase. Demand for homes is exceptionally high and this supply and demand imbalance is supporting the headline rate of growth with the time to sell a property falling since lockdown. With the stamp duty holiday set to end in 2021 it’s a great time to take advantage of this – although for investors the 3% additional property rate is still in effect. Aside from the financial analysis, socially nearly 40% of millennials are still renting at age 30 and a third of the wider generation are expected to rent into retirement. It’s also believed by the Resolution Foundation that UK renters will outnumber homeowners by 2039. What’s more, the UK population looks set to reach 74 million in 20 years, a sign that the house demand is rising. At present interest rates are low so you can secure a very competitive buy-to-let mortgage rate making the investment process more accessible. Finally, for foreign investors, the weakness of the pound continues to be an opportunity to save money long-term especially where the market here in Scotland is so affordable compared to the rest of Europe. Talk to us if you would find out more about rental values in Glasgow.  

  According to the latest House Price Index from the website ‘Home’, we can rest assured that there’s an optimistic outlook for landlords and buy to let investors across the UK. Across the UK there have been reports of rising rent and lack of supply – even though many Airbnb properties have come back to the market following lockdown. For this reason, reports show that supply is up by an incredible 30% compared to the same time last year. Whilst rents are rising across the UK, rent in London is actually falling and is currently down 5.2%. The report shows that in northern regions of the UK, annualised rises are around the 10% mark and this, combined with the capital gains to be had in these sales markets, there is likely to be further BTL investments. At present the value of the pound is relatively low and the Stamp Duty holiday – with the threshold raised to £500,000 in England and LBTT raised to £250,000 in Scotland, is a significant draw to property investors and in particular for foreign investors and expats. The Stamp Duty surcharge will go back to pre lockdown levels from April 2021 and so many people considering investment will bring plans forward and invest in the next six months.

Property investment can be extremely rewarding – both on a personal and professional level. It can give you financial freedom, a flexible work-life balance and surprising returns especially here in Glasgow where they are higher than anywhere in the UK. However, it can be extremely daunting so it’s important to do your homework first.

Buy to Let

If you are going to let your property – either privately or via a letting agent, you need a buy to let mortgage on your property. If you have a residential mortgage, you’ll need to talk to your lender about your plans. As a landlord with a buy to let property, you have several legal obligations and responsibilities that you need to be aware of.

Finance

You will need to ensure your finances are in good order and in place before buying an investment property. Talk to a mortgage broker about your plans and find out how much you will need to invest and whether you will be eligible for a buy to let mortgage. They will also set out any additional costs and fees.

Time

Do you have time to be a landlord? If not, can you outsource the management of your property to a letting agent? It’s important to be realistic about not only the time you have to spare, but whether you have the experience and knowledge to undertake the running of your investment property.

Location

When buying a property to let out, it’s important to do your homework and find the right area. Are you going to buy a property where you live or are you going to buy it in a city centre, close to a university or in an area popular with young professionals. The type of property you buy has to marry with the location – there’s no point in purchasing a luxury flat in a student area nor a family home where there are no good schools. You’ll also need to decide on the type of property within that location – new build, off-plan or resale. You may even decide to visit the local auctions – but we strongly advise only doing this if you have had sound advice first. Talk to your local estate agent about rental values, the types of renters in the area, transport links, schooling and amenities. Get the advice from several agents.

Your return on investment

Rental yield and capital growth are the two ways that you can increase your return on investment. Take a look at the differences here. (link to existing blog) If you are a first-time investor, we hope you’ve found this information helpful. If you have any questions, please don’t hesitate to talk to us.

If you are a tenant here in Scotland, you have a number of rights to protect you and the property in which you live. Here are some of the things you should be aware of as a private tenant: You have the right to live in a safe property that is in good condition. You have the right to live in a property undisturbed, without any unreasonable interference from your landlord or letting agent. You have the right to know the energy performance via an Energy Performance Certificate. Your tenancy deposit will be protected in a government approved scheme. It must be registered with Letting Protection Service Scotland, Safe Deposits Scotland or mydeposits Scotland. You have the right to challenge rent increases that you believe to be unfair. There is a strict legal process that governs when landlords can increase your rent. It can be increased once per year, you will need to be served with a Rent Increase Notice which includes a three-month period before the rent is increased. If you feel it is unfair, you can apply to Rent Service Scotland. You have a right to protection from unfair eviction. If you have a private tenancy your landlord can only evict you for a specific reason as outlined here and it must be stated in writing. Your notice period depends on the reason behind your eviction but in some cases, it can be up to six months. If your landlord ends your tenancy and you refuse to move out, your landlord can only recover possession through court proceedings. If you think you’re being evicted unfairly you can defend this action via a tribunal. It is a legal requirement for tenants to receive a written tenancy agreement called the Private Residential Tenancy Agreement and all landlords are required to register with the local council that covers the area where the property is located as part of the Scottish Landlord Register. Landlords are required to provide information on themselves and the letting agent managing the property (if applicable).

Eviction during COVID-19

Updated guidance on evictions during the pandemic has been issued by the Scottish Government. This includes an extension of the notice period for evictions of 6 months. A new law has made all grounds for eviction discretionary, allowing any tribunals to consider the impact of coronavirus before issuing an eviction order or not. If you require any further help as a private tenant, or you're looking for a property to let, talk to our friendly, professional team today.

The return of the housing market has seen demand for rental property boom - with data from Rightmove showing activity in the first week since the lockdown in England eased, with rental demand on the portal registering at its highest ever in its 20 year history. There is a strong possibility that this will happen in Scotland.

The Government has issued guidance to estate agents, buyers and sellers that more activity should be done online if possible. The new guideline document states "The process of finding and moving into a new home will need to be different given those involved in the process will have to adapt practices and procedures to ensure that the risk of spread of Coronavirus is reduced as far as possible” This 'new normal' will including much of the home seeking and viewing process taken online, including virtual initial viewings. The document also states that “We encourage people to do the majority of their  property searching online … To support this agents may ask home occupiers to conduct virtual viewings.” In relation to new-build property sales it advises: “Where possible, developers should promote virtual viewings.” And for conveyancers the guidance says: “Conveyancing should aim to conduct as much of their business remotely as possible. The rest of the guidance concerns social distancing, surface-cleaning and hand-washing, including agents being requested to avoid  contact with clients showing symptoms or having been advised to self-isolate, appointment viewing systems, stopping open-house viewings, enforcing 2m social distancing between individuals, clients making their own way to appointments, providing hand sanitising facilities and increasing ventilation by keeping all internal doors open during viewings. See the full guidance. At Newton Letting we will be undertaking all relevant changes to our business practices to adhere to the new rules that will come into force here in Scotland.