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Landlord Confidence Increases
Wednesday 3rd November 2021
The number of landlords who are feeling optimistic about the rental market is at its highest level for five years.
The latest survey of over 600 landlords from Paragon Bank questioned landlords on their expectations for rental yields, the future of their lettings portfolio, capital gains, the private rental sector and the wider UK financial market revealed that the outlook was more positive than levels seen in the previous survey in 2016.
Landlords with the outlook to be either “good” or “very good” has been consistently rising following record low levels seen in the first quarter of 2020.
The survey also highlighted a link between optimism and portfolio size, with landlords who manage larger portfolios more positive about the prospects for their own lettings business. The survey found that 56% of landlords with 11 or more properties felt “good” or “very good”, falling to 46% for those with between one and 10 properties.
Confidence in landlords can affect their purchasing decisions with 63% of landlords who have recently bought a property having a positive outlook, compared to 48% of the total of landlords surveyed. In addition, 78% of landlords who plan to expand their lettings business in the next 12 months are optimistic, whereas confidence was seen in a lower proportion, 26%, amongst those looking to divest.
Landlord confidence dropped sharply in the Q1 of 2020, as the extent of the pandemic became more apparent. However, it appears that optimism has bounced back which shows that the sector is strong with plenty of opportunities for landlords.
Demand remains at historic high
According to Arla Propertymark, the average number of people looking for a property to let fell from 107 per letting agent branch in August to 83 in September. This is higher than the 82 recorded per branch this time last year – making it the highest number registered in September.
The number of properties managed per letting agent branch went up slightly on a monthly basis, from 196 to 199, which is higher than September 2020’s figure of 193. In addition, the number of tenants who saw their rent go up in September stood at 75%, down slightly from August’s figure of 79%.
Despite a slight easing over the short term, in September 2019, 58% of tenants saw their rent rise and this year’s figure is the highest for September on record.
If you have a property that you are considering letting out, talk to us at Newton Letting. We believe that every rental property is different and so is every landlord. As a result, we have several different options for landlords who want to manage their property through Newton.
Whatever package you choose, you will work with a property manager who understands the local market and maximises your investment.
Talk to us today for a letting valuation for your property. The number of landlords who are feeling optimistic about the rental market is at its highest level for five years.
The latest survey of over 600 landlords from Paragon Bank questioned landlords on their expectations for rental yields, the future of their lettings portfolio, capital gains, the private rental sector and the wider UK financial market revealed that the outlook was more positive than levels seen in the previous survey in 2016.
Landlords with the outlook to be either “good” or “very good” has been consistently rising following record low levels seen in the first quarter of 2020.
The survey also highlighted a link between optimism and portfolio size, with landlords who manage larger portfolios more positive about the prospects for their own lettings business. The survey found that 56% of landlords with 11 or more properties felt “good” or “very good”, falling to 46% for those with between one and 10 properties.
Confidence in landlords can affect their purchasing decisions with 63% of landlords who have recently bought a property having a positive outlook, compared to 48% of the total of landlords surveyed. In addition, 78% of landlords who plan to expand their lettings business in the next 12 months are optimistic, whereas confidence was seen in a lower proportion, 26%, amongst those looking to divest.
Landlord confidence dropped sharply in the Q1 of 2020, as the extent of the pandemic became more apparent. However, it appears that optimism has bounced back which shows that the sector is strong with plenty of opportunities for landlords.
Demand remains at historic high
According to Arla Propertymark, the average number of people looking for a property to let fell from 107 per letting agent branch in August to 83 in September. This is higher than the 82 recorded per branch this time last year – making it the highest number registered in September.
The number of properties managed per letting agent branch went up slightly on a monthly basis, from 196 to 199, which is higher than September 2020’s figure of 193. In addition, the number of tenants who saw their rent go up in September stood at 75%, down slightly from August’s figure of 79%.
Despite a slight easing over the short term, in September 2019, 58% of tenants saw their rent rise and this year’s figure is the highest for September on record.
If you have a property that you are considering letting out, talk to us at Newton Letting. We believe that every rental property is different and so is every landlord. As a result, we have several different options for landlords who want to manage their property through Newton.
Whatever package you choose, you will work with a property manager who understands the local market and maximises your investment.
Talk to us today for a letting valuation for your property.
The latest survey of over 600 landlords from Paragon Bank questioned landlords on their expectations for rental yields, the future of their lettings portfolio, capital gains, the private rental sector and the wider UK financial market revealed that the outlook was more positive than levels seen in the previous survey in 2016.
Landlords with the outlook to be either “good” or “very good” has been consistently rising following record low levels seen in the first quarter of 2020.
The survey also highlighted a link between optimism and portfolio size, with landlords who manage larger portfolios more positive about the prospects for their own lettings business. The survey found that 56% of landlords with 11 or more properties felt “good” or “very good”, falling to 46% for those with between one and 10 properties.
Confidence in landlords can affect their purchasing decisions with 63% of landlords who have recently bought a property having a positive outlook, compared to 48% of the total of landlords surveyed. In addition, 78% of landlords who plan to expand their lettings business in the next 12 months are optimistic, whereas confidence was seen in a lower proportion, 26%, amongst those looking to divest.
Landlord confidence dropped sharply in the Q1 of 2020, as the extent of the pandemic became more apparent. However, it appears that optimism has bounced back which shows that the sector is strong with plenty of opportunities for landlords.
Demand remains at historic high
According to Arla Propertymark, the average number of people looking for a property to let fell from 107 per letting agent branch in August to 83 in September. This is higher than the 82 recorded per branch this time last year – making it the highest number registered in September.
The number of properties managed per letting agent branch went up slightly on a monthly basis, from 196 to 199, which is higher than September 2020’s figure of 193. In addition, the number of tenants who saw their rent go up in September stood at 75%, down slightly from August’s figure of 79%.
Despite a slight easing over the short term, in September 2019, 58% of tenants saw their rent rise and this year’s figure is the highest for September on record.
If you have a property that you are considering letting out, talk to us at Newton Letting. We believe that every rental property is different and so is every landlord. As a result, we have several different options for landlords who want to manage their property through Newton.
Whatever package you choose, you will work with a property manager who understands the local market and maximises your investment.
Talk to us today for a letting valuation for your property. The number of landlords who are feeling optimistic about the rental market is at its highest level for five years.
The latest survey of over 600 landlords from Paragon Bank questioned landlords on their expectations for rental yields, the future of their lettings portfolio, capital gains, the private rental sector and the wider UK financial market revealed that the outlook was more positive than levels seen in the previous survey in 2016.
Landlords with the outlook to be either “good” or “very good” has been consistently rising following record low levels seen in the first quarter of 2020.
The survey also highlighted a link between optimism and portfolio size, with landlords who manage larger portfolios more positive about the prospects for their own lettings business. The survey found that 56% of landlords with 11 or more properties felt “good” or “very good”, falling to 46% for those with between one and 10 properties.
Confidence in landlords can affect their purchasing decisions with 63% of landlords who have recently bought a property having a positive outlook, compared to 48% of the total of landlords surveyed. In addition, 78% of landlords who plan to expand their lettings business in the next 12 months are optimistic, whereas confidence was seen in a lower proportion, 26%, amongst those looking to divest.
Landlord confidence dropped sharply in the Q1 of 2020, as the extent of the pandemic became more apparent. However, it appears that optimism has bounced back which shows that the sector is strong with plenty of opportunities for landlords.
Demand remains at historic high
According to Arla Propertymark, the average number of people looking for a property to let fell from 107 per letting agent branch in August to 83 in September. This is higher than the 82 recorded per branch this time last year – making it the highest number registered in September.
The number of properties managed per letting agent branch went up slightly on a monthly basis, from 196 to 199, which is higher than September 2020’s figure of 193. In addition, the number of tenants who saw their rent go up in September stood at 75%, down slightly from August’s figure of 79%.
Despite a slight easing over the short term, in September 2019, 58% of tenants saw their rent rise and this year’s figure is the highest for September on record.
If you have a property that you are considering letting out, talk to us at Newton Letting. We believe that every rental property is different and so is every landlord. As a result, we have several different options for landlords who want to manage their property through Newton.
Whatever package you choose, you will work with a property manager who understands the local market and maximises your investment.
Talk to us today for a letting valuation for your property.
Featured Stories
Landlord Confidence Increases
Wednesday 3rd November 2021
The number of landlords who are feeling optimistic about the rental market is at its highest level for five years. The latest survey of over 600 landlords from Paragon Bank questioned landlords on their expectations for rental yields, the future of their lettings portfolio, capital gains, the private rental sector and the wider UK financial market revealed that the outlook was more positive than levels seen in the previous survey in 2016. Landlords with the outlook to be either “good” or “very good” has been consistently rising following record low levels seen in the first quarter of 2020. The survey also highlighted a link between optimism and portfolio size, with landlords who manage larger portfolios more positive about the prospects for their own lettings business. The survey found that 56% of landlords with 11 or more properties felt “good” or “very good”, falling to 46% for those with between one and 10 properties. Confidence in landlords can affect their purchasing decisions with 63% of landlords who have recently bought a property having a positive outlook, compared to 48% of the total of landlords surveyed. In addition, 78% of landlords who plan to expand their lettings business in the next 12 months are optimistic, whereas confidence was seen in a lower proportion, 26%, amongst those looking to divest. Landlord confidence dropped sharply in the Q1 of 2020, as the extent of the pandemic became more apparent. However, it appears that optimism has bounced back which shows that the sector is strong with plenty of opportunities for landlords. Demand remains at historic high According to Arla Propertymark, the average number of people looking for a property to let fell from 107 per letting agent branch in August to 83 in September. This is higher than the 82 recorded per branch this time last year – making it the highest number registered in September. The number of properties managed per letting agent branch went up slightly on a monthly basis, from 196 to 199, which is higher than September 2020’s figure of 193. In addition, the number of tenants who saw their rent go up in September stood at 75%, down slightly from August’s figure of 79%. Despite a slight easing over the short term, in September 2019, 58% of tenants saw their rent rise and this year’s figure is the highest for September on record. If you have a property that you are considering letting out, talk to us at Newton Letting. We believe that every rental property is different and so is every landlord. As a result, we have several different options for landlords who want to manage their property through Newton. Whatever package you choose, you will work with a property manager who understands the local market and maximises your investment. Talk to us today for a letting valuation for your property.
Landlords – Protect Your Property This Winter
Thursday 21st October 2021
As we head into the cold Scottish winter months, it’s important to prepare your property to protect it from any problems that will lead to void periods or expensive repairs. New research from Propertymark has revealed that the void time for rental properties has decreased month on month since May 2021 to 2.1 weeks. In addition, the average tenancy time is rising which means that here has never been a more attractive time to be a landlord. As the market remains fierce, Propertymark is advising landlords to avoid unwanted issues to make it more appealing to tenants. The more you do now, the more likely you are to save time and money in the winter. Given that the average length of a tenancy is increasing, you are more likely to have a good tenant in situ when not only using a good agent, but ensuring your property is well-maintained. Here are some tips on how to avoid problems with your rental property this winter: Keep the property warm It’s a good idea to carry out regular maintenance as well as your legal safety obligations. Bleed your radiators regularly, keep on top of services rather than responding to problems, limit draughts by installing sealing around window frames, under doors and on the letterbox. Insulating the loft can make a big difference in preserving the heat within your home and lagging the pipes will prevent them from freezing and bursting. If you have any void periods, make sure you keep the home at an eco temperature if it looks like we are going to experience freezing conditions. External maintenance It’s important to maintain the exterior of your property to avoid any expensive repairs. Check and clean all guttering to prevent any blockages and subsequent water damage. Repair any windows and sills and check that the roof doesn’t have any missing tiles. Maintain the garden area and get it ready for the winter by storing away any furniture and ask your tenants to carry out regular garden tidies to keep on top of it before spring.
Saving Energy When Renting an Apartment or Flat
Friday 8th October 2021
Recent reports indicate that our energy bills are set to rise over the coming months as utility providers look to pass on the rising cost of fuel to its customers. If you’re renting a flat, it’s difficult to make any major changes to the property to help make it more energy efficient and even simple changes could be in violation of your letting agreement. If your rental property isn’t energy efficient, you could be spending over the odds to keep it warm during the winter. However, there are some changes you can make that will help to reduce your bills.
Talk to your landlord
Talk to the property owner to find out if there are some upgrades they would be willing to make to improve the energy efficiency – not only will it help to keep your bills down, but it will make it a more attractive rental property in the future should you move on. Make sure you report anything that needs to be taken care of including leaks or faults with appliances that could be causing you to use more gas or electricity - malfunctioning appliances will bump up your energy bill.Water and heating
If you can, try and turn down your water temperature setting as this can really reduce your costs. If you live in an apartment and can’t access the water heater on your own, ask your landlord or letting agent for help. If you leave for work every day, make sure you aren’t paying to heat an empty home. If you have any control over the type of thermostat, choosing a smart thermostat can allow you to program the temperature in advance so you don’t have to do it manually every day. Making small adjustments to your thermostat can really add up. Finally, cutting back on how long you shower can lower how much electricity your water heater uses. You can also save energy by investing in an energy efficient shower head.Energy efficient lighting
Make sure you’re using LED light bulbs, especially for light fixtures and lamps that you use often. These use up to 90 percent less energy and last 15 times longer than standard bulbs. You can also cut down on energy costs by turning off lights in unused rooms.Avoid energy guzzling devices
Some devices and appliances consume energy even when they aren’t in use – be careful of phone chargers left plugged in and televisions and gaming consoles on standby. Unplug them or use power strips so you can turn everything off at once. If your kitchen is unfurnished, ask your landlord if they would upgrade to energy-efficient appliances – for example a refrigerator with a high energy rating could make a noticeable change to your bills.Laundry
If you can, use a low temperature to wash your clothes as this can greatly reduce the electricity usage – in addition do larger loads less often and rather than using a tumble dryer try and line dry. Check wither you are on an Economy tariff as it could be cheaper to use appliances at night.Weatherstrip windows
You won’t be able to replace windows but weather strips are effective in keeping the heat in.Radiators
Don’t cover your radiators with clothes that need drying or put furniture in front of them otherwise the heat will be absorbed the airflow restricted.Flooring
If you have hardwood, laminate or vinyl flooring use thick rugs to provide additional insulation. What’s Happening in the UK’s Student Rental Market?
Thursday 7th October 2021
Research carried out by Manor Interiors has revealed that the cost of renting for a student has increased as much as 26% in some areas of the UK but have actually fallen by 2% in Scotland. Manor Interiors, specialists in built-to-rent furnishing solutions, has found that the average student in Britain pays £132 to rent a student property, reaching £152 in London. However, London and Scotland are the only two regions in the UK where rents have gone down – 16% down in London and 2% in Scotland. In Scotland students now pay an average of £127 per week. Students in the East Midlands have seen the largest increase, paying an average of £129 per week which is a 26% in crease in just five years. There were also increases in the North West up 20%, Yorkshire and the Humber up 23% and the Humber up 21%. For students, every penny counts and any rise in rental payments could seem significant and affect where they choose to study. However, this hasn’t dampened the appetite for a university education and a record number of students have looked to secure a place at University this year.
Scotland Student Accommodation in Crisis?
According to a BBC report this week, Scotland is facing a housing emergency driven by a shortage of suitable student accommodation and rising rental costs. NUS Scotland has issued a warning that unprecedented demand has left some students without any suitable lodgings and have resulted in some students considering dropping out of their university course. Some landlords have reportedly requested six months rent upfront, while others are waiting until COP26 is over as they can command high short-term rental fees during the climate conference. With life getting back to normal for students and a return to in-class learning, the housing situation is causing concern for students and the NUS who has revealed that they have never experienced as many requests for support to help people find places to live. NUS Scotland president Matt Crilly has written to the Scottish government to highlight these concerns and says: "For many students, particularly those studying in the central belt of Scotland, there is currently a lack of safe and affordable accommodation, with purpose-built student accommodation full, shortages in the private rented sector, and landlords holding off to make a profit from COP26, I am concerned we have a student housing emergency." John Blackwood, chief executive of the Scottish Association of Landlords (SAL), said: "We are seeing a chronic shortage of private rented accommodation across Scotland, partly as a result of landlords leaving the sector over the past couple of years which has reduced supply. In addition, landlords warned in 2017 that an unintended consequence of the Private Residential Tenancy (PRT) could be a reduction in accommodation available to students as landlords were no longer able to offer fixed-term leases which matched with term times. As a result, properties which landlords would hold back and market specifically for students are now rented by people as their primary home on a longer-term basis. One of the key aims of the PRT has been achieved but it is students who are suffering." Buy-to-let Options Rise
Tuesday 28th September 2021
Amid the news that buy-to let is now 25 years old, it appears that the number of buy-to-let products on the market is higher today than the number available in March 2020 according to Moneyfacts.
Buy-to-let is 25 years old
In the 1990s when house prices were low, homeowners were reluctant to sell and instead turned to renting out their properties and essentially becoming an accidental landlord. At the time mortgage agreements prevented them letting their property and so ARLA worked with a small number of lenders to develop buy-to-let mortgages to support the private rented sector. When prices went up, these accidental landlords sold their homes creating a void for tenants and more buy-to-let mortgages were made available. Now, according to Savills, the UK’s private rental sector is worth around £1.338 trilion and the number of homes in the sector classed as ‘decent’ has gone from 53.2% in 2006 to 76.7% as of 2020, and the sector has almost doubled since 1996 with almost 13 million private renters in UK the market.Buy-to-let options
According to Moneyfacts, the number of buy-to-let product options has risen above pre-pandemic levels. The number is currently higher today than available in March 2020 – 2,968 today compared to 2,897 before the pandemic. This is also the largest number recorded since October 2007 when there were 3,350 products available to landlords. However, whilst the number of products is increasing, lenders are less likely to provide products to those with a low level of equity in their property. In March 2020 there were 32 products at 85% LTV, today there are 19. In addition, for this type of mortgage, the two-year fixed rate has increased from 4.7% to 5.61%. What’s Happening with House Prices?
Thursday 23rd September 2021
The latest figures from HM Land Registry show that the average UK property value was 8% higher in the year to June to £255,535 – but a 3.7% monthly drop. Is this a sign that house prices are stabilising or starting to fall? This is the first sign of a house price decline in over 18 months, but it’s important to note that property values have been rising at a record pace for a sustained period of time, so this stabilisation is inevitable. With mortgage affordability remaining at record lows, the housing market will continue its buoyancy well into autumn and beyond. This slight readjustment in the market, which has been fuelled by a partial slowdown in activity in some parts of the country, is not unexpected but with an uneven balance between demand and supply in many regions, demand will continue for the rest of the year especially as desperate buyers who want to get in the market as soon as possible will be willing to pay more to outbid other buyers. Since the property market opened at the end of last year in June, no one could have predicted the rise in house prices that we have seen across nearly every region in the UK – with some of the highest price rises and selling times in Scottish regions. The pandemic resulted a re-evaluation of buyers’ priorities towards more space to accommodate the new normal of home working. There was a move away from city centres in favour of rural areas with access to a garden or local parks. This, combined with pent-up demand during lockdown, a stamp duty holiday, and the re-introduction of high LTV mortgages and low borrowing rates, resulted in one of the busiest periods we have seen in the housing market. We have seen a strong annual rate of growth with no real let-up in demand. Stock in scarce and this has pushed up property prices.
The autumn is traditionally one of the busiest times of the year and we could also see a return of overseas buyers as the travel industry opens up once more. If you are considering purchasing an investment property in Glasgow, there are still some great options especially with rental demand high and apartments still relatively affordable compared to three and four bedroom family homes. If you want to find out about rental values and locations - talk to us at Newton Letting.
What is Britain’s Dream Home?
Thursday 16th September 2021
A new study has revealed what Britain’s dream home looks like. Rightmove has carried out research to reveal what the nation’s favourite home would be, with practical rooms taking over luxuries such as gyms and swimming pools - with home offices, utility rooms and garages top of people’s wish list.
Property type
The pandemic resulted in an increase in demand for larger detached family homes in more rural settings. A cottage by the sea was the second most popular property type after a detached home. Two living rooms were the most popular request – one for guests and one for every day. In addition, a garage and garden were in high demand, with a garage used for either an additional room or storage space rather than somewhere to park the car. A utility room was a must-have rather than walk-in wardrobe, gym or swimming pool showing that people have practical rather than luxurious requirements. Working from home as a result of the pandemic has meant that people have a home office on their wish list and so require an extra room, whereas a conservatory is only popular among those aged 65 and over with this age group also desiring a bungalow rather than a large detached home. The youngest age group of 18-24 of those surveyed wanted a dining room to entertain friends and in the next age group (24-44) a third bathroom was the most desirable feature.Amenities
Surprisingly, Tesco has overtaken Waitrose as the most popular supermarket to live close to – although there were regional variations with more people in the south wanting to be close to a Waitrose and Sainsbury’s in the North. When it comes to property listings on Rightmove, Tesco is the supermarket that is mentioned most by estate agents in listings, followed by Waitrose. The most popular establishment to be near to the home was the humble pub followed by a local corner shop, coffee shop and a local market. Bakeries and restaurants were next on the national list, with local greengrocers and butchers being more popular than a local takeaway given the popularity of delivery companies such as Just Eat and Deliveroo. The pandemic has resulted in a real shift in what people want from their homes - if you're considering moving, talk to us at Newton Letting and register for property alerts. Energy Efficiency in Rented Homes
Thursday 9th September 2021
According to the latest survey from Direct Line, energy efficiency is hot topic for renters. In fact, 80% of potential renters responded that they would ask their landlord what measures they have implemented to improve the energy efficiency of a property before moving in. In fact, 75% of respondents said that energy efficiency is important to them, and 60% felt that landlords aren’t taking the issue seriously enough. A small number of people reported that they would take a hard-line approach with 25% going so far as turning down a property or even moving out if the energy efficiency wasn’t up to scratch. The survey also questioned landlords. It found that 83% of landlords have made positive changes to their properties and 73% believed that they had a good understanding of the importance of energy efficiency in appealing to renters. Landlords reported that they had made improvements to the property out of their own concerns for the environment (39%). The most popular change that landlords have made is to improve the lighting and appliances within their property (48%) while 33% added new insulation and 22% installed a smart meter. The survey is encouraging to both renters and landlords, demonstrating that there is a rising number of people who understand the importance of energy efficiency, ensuring that homes are both sustainable and affordable to run. It appears that a high number of UK landlords are taking positive action to make sure their property is greener, and that tenants’ costs can be kept to a minimum. If you are making improvements to your property – check you have the appropriate insurance to reflect these changes.
Biggest Buy-To-Let Gains Seen in Scotland
Wednesday 1st September 2021
According to recent research, the average buy-to-let property gained £15,000 in value during the pandemic with Scotland seeing some of the biggest price rises. The typical value of a rental property went up by 6% from March 2020 to March 2021, but in Scotland this figure was 11%. It’s believed that these increases are a result of people moving out of cities in search of more space. Across the UK, the value of the private rented sector has grown 5.8% to £1.4trillion due to the housing market boom we have seen over the last 18 months. Although the value of the buy-to-let sector went up, the number of available properties for sale fell. Mortgage lender Shawbrook Bank carried out research into the effect the pandemic on UK landlords. Scotland, along with the North West of England and Wales, saw the most dramatic increases. Scotland was highest at 11%, North West 10.7% and Wales 9.5%. In addition, according to the latest Nationwide index, residential house prices jumped by 10.5% in the year to the end of July. According to the survey, over 30% of landlords planned on a more rural location for their next investment property and were attracted by features that would attract tenants as a result of the pandemic such as a garden, space for home working and more internal space.
LBTT holiday
The LBTT (stamp duty) holiday resulted in a 25% increase in those who purchase a buy-to-let property, rising to 43% for landlords with a portfolio of four or more properties. In addition, 46% of landlords said that they would not have purchased a buy-to-let property had it not been for the LBTT holiday. The tax break, along with rising house prices, attractive yields and high demand from tenants, has resulted in this spike.Scotland best for rental yields
The survey also found that Scotland was the best for rental yields, with an average yield of 5.8% closely followed by the North West at 5.5%.A fall in supply
While the value of the buy-to-let sector increase, there was a marked decrease in available rental properties as landlords exited the market. The number of private rented properties fell by 2.6% in the year from March 2020. Figures from the National Residential Landlords Association show that the number of landlords planning to purchase a property fell from 19% in this year’s Q1 to 14% in Q2. By contrast, the number of those selling up was 20% higher. Two thirds of landlords surveyed were confident about the market in the coming year. Are Property Asking Prices Starting to Fall?
Thursday 26th August 2021
According to the recent reports from Rightmove, asking prices in the UK have fallen for first time in 2021 following a continued period of price rises. There was a drop of just over £1,000 from the average asking price of a home here in the UK. Although this can seem alarming to those who are looking to sell and maximise the value of their property, analysis from Rightmove shows that the average asking price has only fallen for larger homes, typically those with five or more bedrooms as well as four-bedroom detached houses. Those looking to buy and sell this type of property have been impacted the most by the recent LBTT/Stamp Duty savings. In addition, as we approached the summer and saw restrictions ease off with a promise of normality returning (with many people still taking a holiday albeit closer to home), they were put off moving home and we saw the typical August quietening of the market. Across the rest of the property market, first time buyers and second-steppers are seeing the average asking prices of houses and flats with one or two bedrooms, and houses with two, three or four bedrooms reaching record highs again this month, as buyer demand shows no sign of abating. These movers weren’t moving to take advantage of the stamp duty (LBTT) holiday and instead the market was correcting itself following a period of inactivity whereby movers were putting their plans on hold due to the restrictions.
Looking ahead
Rightmove predicts that, given there are a record number of people still looking to move, the autumn will see a buoyant housing market with more sellers listing properties for sale and strong demand pushing asking prices further upwards. With high buyer demand, the number of properties for sale is still currently very low and properties are selling at the fastest pace ever – within an average of 36 days and the fastest selling time here in Glasgow. However, the number of properties for sale is still at a record low, with buyer demand hoovering up new supply. We’re seeing more properties selling, and quickly. For those wanting to take advantage of strong selling prices and complete on a new property in time for Christmas, the advice is to sell now. For those looking to buy a home or rental property, you could be facing strong competition so make sure you have everything you need to proceed with a purchase. Tenant Arrears at Lowest Level in Ten Years
Thursday 19th August 2021
It’s good news for landlords as tenant arrears have fallen to the lowest level in ten years. According to new research, this fall in tenant arrears has been fuelled by landlords providing essential help during the pandemic including rental discounts over the last 18 months, in a bid to provide vital assistance to their tenants. The survey demonstrates the reliability of landlords during the pandemic as they acted quickly to support their tenants during an extremely challenging time. The report from Paragon Bank found that from April to June this year, the number of renters who fell behind on their rent was 1.3 per landlord – in the first quarter of this year this was 1.6 per landlord. The current rate is the lowest figure in a decade. Tenants with rent outstanding was 2.1 per landlord between April and June last year when the pandemic started to hit residents’ finances. In the first quarter of this year, the typical tenant owed £2,376, and in the second quarter this was £1,781. The good news is that this figure has been on the decline and the current average amount of outstanding rent is at a four-year low, falling by £595 per tenant over the last three months. This is the lowest amount of rental payments owed to landlords since December 2017. The research also shows that 17% of portfolio landlords missed out on income compared to 12% of single property landlords. It's worth noting that the current low arrears levels are a result of landlords providing tenants with rental discounts or payment holidays in a bid to help their finances during a difficult time. A separate survey of landlords and tenants by Shawbrook Bank found that 46% of landlords reduced monthly rent payments at some point during the pandemic. In fact, 28% gave a payment holiday, while 18% gave their tenants a reduction in rent. In addition, 38% of landlords changed their tenants rent and landlords lost an average of £7,500 as a result of payment holidays and £6,500 as a result of rent reductions. Rental payment holidays lasted an average of three months and rent reductions lasted on average four months. These figures demonstrate the reliability of landlords during the pandemic as they acted quickly to support their tenants during a global crisis.
A good time to invest?
With arrears currently at low levels and requests for financial support on the decline, now could be a good time to invest in rental property. There has been a significant number of landlords exiting the buy to let market over the last few years, but it appears that there are signs of confidence returning to the lettings market. Rents are increasing across the UK (with the exception of London) as demand for rental property increases, and banks are increasing their buy to let mortgage offering with rates as low as 1.9% there has been a relaxation of the tightened lending criteria we saw during the pandemic. Creating a Calming, Inexpensive Garden for Tenants
Tuesday 3rd August 2021
Over the last year we have all learned the importance of outside space. We have been through lockdowns which caused anxiety and uncertainty. For some, not having a garden or terrace to retreat to meant that they felt cooped up and the end of lockdown represented a need to find a new home, leading to a busy housing market especially from renters who no longer wanted to be restricted by only having local parks for fresh air. If you are considering buying a rental property and want to maximise the appeal, how about a garden that will provide your tenants with the ideal place to calm down, relax and retreat in the sunshine.
A great garden can help you to relax and take stock, away from the stress of the outside world. What's more it can be more effective and appealing when it's uncomplicated, simple, and paired back. A simple abundance of flowers and colours using just a few varieties can give the space clean lines and a refreshing simplicity.
One of the key elements of a simple garden is to use fewer types of plants in greater numbers. This works well in gardens of all size – by using pots on balconies, raised beds, and hanging baskets you can create a calm and inviting space especially if you keep a larger garden as simple and as uncluttered as possible.
Ornamental grasses are a great addition to this style of garden. They are natural, easy (and fast) growing. Try Miscanthus and Pampas grasses (Cortaderia) to cover ground. Bamboo is a beautiful plant too – but grow this in pots rather than in the ground so it is easier to control.
Consider healing aromatic plants to boost your wellbeing and create a sense of calm. Lavender, thyme, mint, lemon balm and echinacea are beautifully scented and look beautiful - they grow fast and are inexpensive to plant.
If the garden is overlooked by neighbours you might want to create a shaded area by screening it off with shrubs, hedges, wall panels or even a pergola with a climbing plant over the top.
Finally, choose plants and flowers that will provide a splash of colour. Silver and grey foliage can offset the colour of flowers beautifully including Senecio ‘Angel Wings’ or ‘Brachyglottis ‘Sunshine’ which produces bright yellow, daisy-like flowers which look stunning against grey and silver.
By using lighting to highlight your steps, paths and water features you’ll create a wonderful atmosphere and can highlight your favourite features throughout all of the seasons.
A Zen garden actively encourages wildlife and. Add flowering periennials, use wild flowers to attract bees and butterflies. Consider a bird feeder, nesting box and bird bath to attract different species of birds. You could also install a squirrel feeding box which can’t be opened by birds.
Last but not least, make sure you have a comfortable seating area for your tenants to relax and enjoy your their garden space - and it will look great in marketing photos!
UK House Prices Rise by £10,000
Wednesday 28th July 2021
We are currently experiencing a period of exceptionally high demand for houses in the UK – and with a shortage of homes available, this has pushed up prices and made it the fastest-moving housing market in five years. According to the latest Zoopla House Price Index, house prices have soared by more than £10,000 since March 2020 and the scramble for homes is only slightly easing. This increase has resulted in the sharpest rise in house prices since October 2016 with the average home costing £229,300 in May. This has pushed 1.8 million properties into a higher stamp duty bracket. What’s more, high demand for homes with more space has meant that the average time to sell a property is just 22 days – almost half the number of days in May 2019. House prices are up by 3% in Glasgow and 2.9% in Edinburgh – the UK average was 4.7% - last year this was 2.2%. House prices are rising fastest in the most affordable markets. The demand is being driven by a combination of a re-evaluation of priorities and people wanting more inside and outside space. In addition, there is greater mortgage availability for first-time buyers with the re-introduction of 90% and 95% mortgages after the widespread withdrawal of these mortgage products last summer. Unfortunately, these first time buyers are flocking to the housing market without having a home to sell, meaning that stock levels aren’t being replenished. With competition for the homes that are available exceptionally high, many people are missing out. That’s why it’s important to be in a strong position to make an offer – this includes having a mortgage offer in place, your deposit easily accessible with proof of its origin, your credit score in good order and all paperwork such as tax returns and payslips available. If you’re looking to sell – now is a great time to maximise your sale price and you’ll be in a particularly strong position if you don’t have a property to sell.
Property Renovation Advice - Replacement Windows
Thursday 15th July 2021
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. Creating a Lush Garden in a Small Space
Thursday 15th July 2021
If you're renting a property with a balcony, roof terrace or small garden, you might want to consider a vertical garden to help your walls come alive with greenery. Living walls are one of the hottest gardening trends to emerge in recent years, increasingly making their way into residential gardens. Living walls are vertical gardens, where plants are rooted into a structure that is attached to a wall – creating a lush wall of foliage. What's more, if you install it in the right way, you can take it with you when you move. A living wall is fantastic for transforming any limited area outside – a balcony, terrace or patio garden. It also looks great when creating a more secluded area in a larger garden. If you have a small garden, it’s an ideal space for a living wall making it appear more ambient, covering up unsightly walls or fencing. Greens and soft floral colours can make a limited outdoor space feel enriched and closer to nature. Ideally you want to keep the area looking unstructured and as natural as possible. Use long grasses to add depth, ivy to provide coverage and foliage plants and annuals to create an abundance of green. Incorporate colourful bedding plants will provide an array of colour. Make sure you deadhead flowers to encourage new blooms and keep the colours thriving. When planting up the side of a wall of the home, make sure you use a waterproof membrane first to prevent damp. If you want a simple solution choose pre-planted panels with living wall planters. This requires minimal effort as all the hard work is done for you. As an alternative, you don’t have to fill an entire wall – you could create a gallery wall with hanging baskets and pots attached – this will provide coverage and greenery without the commitment, and you can pots and baskets with you should you move home. However, check with your landlord if you will need to drill any holes as you may need to make them good before you move. A living wall is easy maintain and simply requires watering around every two- three days in the summer. No garden? A living wall isn't just for outside - you can also achieve this look inside too. 
Avoiding Potential Void Periods
Wednesday 14th July 2021
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.
Average Rents on the Rise
Wednesday 7th July 2021
According to the latest research* published this week, the average rent across the UK has risen by 5.9% over the past 12 months reaching £1,007 per month – a record high. Every region in the UK reported an increase in rents. When London is excluded, the average UK rent is currently 8% higher than this time last year and 10% higher than pre-covid levels in 2019. Here in Scotland, we saw the most significant month-on-month growth in rents with an increase of 4.4% to £738 from May to June this year. With tenants looking for more space and access to a garden or balcony/roof terrace, the average rents have been pushed up. Many industry experts believe that even though measures were put in place during the pandemic to help tenants, there wasn’t enough help and protection for landlords. However, increased costs for landlords led to increased costs for tenants and the stock level has been impacted by landlords exiting the market. The private rented sector is critical to the UK’s housing market and it’s essential that affordable housing is available for tenants. This is the first time that the average UK rental price has topped the £1,000 mark – but supply and demand has continued to drive prices upward and this trend looks set to continue. *Homelet
What is Happening in the Property Market?
Monday 5th July 2021
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. Building Relationships to Protect Your Investment
Friday 18th June 2021
The last 15 months have been extremely challenging for tenants and landlords alike. Landlords have experienced problems with properties featuring cladding, people leaving cities, and university accommodation no longer being required, as well as falling rental yields in some areas. Meanwhile, tenants have struggled with falling incomes and increased living costs. According to the recent Building Financial Resilience Report - around 20% of British households now live in privately rented housing and ONS data shows that these tenants spend around 33% on rent. Affordability has been challenging – increasing the risk of rental arrears. Vulnerability among renters may continue over the next couple of years as a knock on effect from the pandemic, so for landlords who want to protect and support their tenants during difficult times, and ultimately protect their investment, it's important to consider making your tenants aware of the financial protection available to them.
Financial protection
As a landlord, it’s important that your tenants have some financial protection in place so that your assets are protected if they are unable to work due to illness or injury. Income Protection insurance doesn’t cover unemployment but will cover accidents and long-term illnesses and can pay out until retirement age. It is therefore wise to make your tenants aware of the protection available and even introduce your tenants to a trusted and respected financial advisor who can outline the policies available and the associated costs. Although not all tenants will take out a policy, some will. In fact, Rental Income Protection Research carried out by Savanta for Legal & General found that 20-30% would take out a policy if introduced this way.Available products
According to a recent report by Hymans Robertson, which highlights the hidden dangers of ‘generation rent’, is estimated that fewer than 10% of tenants have insurance that would cover their rent if they were unable to work due to illness. This is compared to 42% of homeowners, putting renters at considerably more financial risk than homeowners. Therefore, people who rent have an even more pressing need to protect their incomes. The majority of renters have admitted that they would have to rely on savings, benefits or their partner’s or parent’s income should they find themselves unable to earn due to illness. Many renters are unaware that the same kinds of protection used by mortgage holders are also available to those who rent. Income protection and/or critical illness insurance can cover a period of lost earnings due to ill health, whereas life insurance is ideal for families. The monthly cost of renting is often higher than mortgage repayments, but they will require the same basic financial protection. This type of insurance is more affordable than many people seem to think. The Hymans Robertson report asked renters what they would be willing to pay for a certain level of protection, and nearly 40% were willing to pay up to £20 a month. This would be more than adequate for a good level of cover. The good news is that insurance providers are starting to catch up with the growing demand, with policies designed to suit the specific needs of renters. This is certainly something that we believe landlords should consider. Should Your Property be Smarter?
Wednesday 9th June 2021
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.
Current Eviction Rules in Scotland
Wednesday 2nd June 2021
As an emergency measure across the UK in response to the coronavirus pandemic, the government temporarily banned bailiff-enforced evictions and eviction notice periods were extended from two months to six months. This ban put in place in March 2020 was intended as a short-term measure and in England has now come to an end. It has been extended several times to help tenants who have fallen into arrears with their rent payments during the pandemic.
Scotland
The eviction ban in Scotland has been extended until 30 September 2021 for areas that fall under level 3 or level 4 coronavirus restrictions. The situation is subject to review every three weeks. For areas in level 0, 1 or 2, evictions can be enforced. As a tenant, your landlord is required to give you six months’ notice, or 28 days’ notice if there has been a breach of the tenancy agreement. If your landlord has decided to move in to the property themselves, the notice period is only three months. In December 2020, the Scottish Government introduced the Tenant Hardship Loan Fund. If your employment or your ability to pay or rent has been affected by the pandemic and you are unable to pay your rent, you could be eligible for an interest-free loan. The amount of the loan will cover a maximum of nine months’ worth of rent arrears and is subject to an affordability assessment. The repayments will be deferred for six months and can be repaid over a five-year period. The Pandemic & the Rentals Market
Wednesday 26th May 2021
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.
Getting Your Rental Summer-Ready
Wednesday 12th May 2021
Propertymark has released its guidance on how you can prepare your rental property for the summer lettings market. It has been a challenging year for the property market with lockdowns, restrictions on movement and our ability to view or move into new homes. The residential and student lettings market is starting to get back to normal – with a significant easing of restrictions from Monday May 17th. As a result, a significant number of people are currently seeking a new home especially those who require more inside space to accommodate home working, and more outside space as overseas holidays are still out of reach for many. If you are advertising to rent out your property in the spring and summer months, there are some steps you can take to make your property more appealing and to mitigate any danger of having to make repairs once your tenants have moved in.
Insurance
It’s essential that you have suitable insurance to protect your investment should anything happen. In Scotland in particular, we suffer from wet and damp weather that can take its toll on buildings. Check that your policy provides protection for any weather-related damage and find out if there are ways to reduce your premium such as more secure windows and locks, CCTV or a house alarm. You should also consider insurance against non-payment of rent as the economy still recovers from the pandemic.Décor
Your best bet is to give your property a neutral décor so that they can envisage their belongings in your property and can picture themselves living in the space. Remove anything personal such as unique furniture, pictures on the wall, loud colours or patterned wallpaper. Keep the windows clean and use tie backs on curtains to maximise the natural light. Keep the décor simple, plain and tasteful so that they don’t feel they are living in someone else’s home.Maintaining the garden
Over the last year tenants and homeowners have realised the importance of outside space as we were not only locked down in our homes but only allowed to socialise outside for a long period of time. This has led to a once-in-a-generation shift in priorities with tenants looking for homes with additional space to work from home and either a balcony or garden to enable them to enjoy the outdoors. These properties are high in demand can command higher rents. Now is the time to ensure your garden is well-maintained and that any gardening equipment is in good working order so that your tenants can continue with the upkeep. You could also consider elevating the garden space with nice furniture, lighting and a barbeque to make your property even more appealing to potential renters.General maintenance
Falling leaves over the winter can cause a build-up of water in your guttering and over time cause water damage or broken gutters. Make sure they are cleared of all debris and ensure your property doesn't have any cracks or holes in the facings or to avoid birds or squirrels nesting. Lastly make sure all of your utilities and any electrical items meet current regulations. Tips for Novice Landlords
Wednesday 5th May 2021
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. Which Properties Make the Most Money?
Friday 30th April 2021
As a landlord it is important that you invest in the right property in the right area in order to minimise your void periods and maximise your income. According to the latest research from Paragon in association with LandlordZone, HMOs produce the best yields at 7% followed by flats at 6.1%. This is followed by bungalows, terraced houses and semi-detached houses all at 5.9%, detached houses at 5.7% and flats that were individual units at 5.1%. There 800 landlords surveyed – some with one property and others with a portfolio with several. It appeared that the larger the landlord’s portfolio the better the yield. In fact, those with 20 properties or more had a yield of 6.7% whilst those with one property had a yield of 4.2%. this demonstrates the importance of diversifying an investment portfolio. In terms of landlords’ experiences of how Covid had impacted their business, just over 30% reported that they had experienced problems from the pandemic, but this wasn’t exclusively due to rent arrears. Rental income had been reduced the most by those who held a larger property portfolio. The report also showed that terraced houses were the most popular property type among landlords with all portfolio sizes. This is followed by flats and semi-detached properties. Larger portfolios enable landlords to invest in a broader range of property types and result in the best overall yields. Talk to us at Newton Letting if you would like advice on the best properties to invest in and the rental returns you can expect to see in and around Glasgow.
Advice for New Landlords
Wednesday 21st April 2021
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. High Demand for Buy-to-Let Mortgages
Thursday 15th April 2021
According to a recent report from Paragon, buy-to-let business among mortgage brokers is currently at a seven-year high. In a survey of almost 200 intermediaries, over half confirmed that they were expecting higher levels of buy-to-let business in 2021 compared to last year, with 21% of those surveyed expecting an increase of 10% or more.
Indicating an upturn in optimism compared to 2020 when we saw the UK experience unprecedented circumstances as a result of the pandemic, 2021 looks to be a fruitful year for both landlords and mortgage brokers in terms of buy-to-let mortgage activity.
Demand for buy-to-let mortgages is currently high, with just under half of brokers stating that the current demand is strong or very strong. Only 12% of those surveyed stated that demand was weak – this is the lowest number since before the start of the pandemic.
Brokers have an excellent grasp of current demand and seem to be able to predict how things will go over the coming months. This high level of optimism could be, in part, due to the stamp duty/LBTT holiday that was introduced in June but with the tax break ending recently in Scotland, high demand in the buy-to-let mortage market is underpinned by the longer-term demand for rental homes.
Latest House Price Index
The latest data released by Halifax has revealed that on a monthly basis, house prices in March were 1.1% higher than the previous month and over Q1 of 2021, they 0.3% higher than in Q4 of 2020. Year-on-year, house prices were 6.5% higher than in March 2020.
There was a fairly subdued start to the year but in March the housing market saw a resurgence with prices 1% higher compared to the previous month. Back in March 2020, no one could have predicted how well the property market would fare given the backdrop of the pandemic. It is expected that the high levels of activity will be maintained over the coming months with consumer confidence given a boost by a successful vaccine programme and buyer demand for larger properties with outside space.
Buy-to-Let Mortgages Flood Back to the Market
Wednesday 7th April 2021
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.
What are Renters Looking For?
Wednesday 31st March 2021
Following the pandemic last year, there was a re-evaluation of renters’ priorities. Instead of looking for homes close to transport links, restaurants, bars and amenities, people were turning their attention towards properties that enabled them to adapt to the lockdown lifestyle. This included additional space for working from home, outside space by way of a private garden, balcony, terrace or shared garden, being within close proximity to outside space for exercise and a good broadband connection. To find out what renters were looking for from their homes Zoopla has released the top search terms for those looking at new homes on the portal. The number one search term is Garden followed by Parking and Garage – indicating that people are relying less on public transport and access to their office. The fourth term was Balcony and given that many renters have bought pets to keep them company over lockdown, Pets was also a popular search term as people seek pet-friendly rentals properties. Aside from the location and outside space available, flooring was another search term - as was rent that included bills and an ensuite bathroom with the property. There was also evidence of demand for homes close to university with Student the 10th most popular search term.
| Renters’ top 10 most-searched terms | ||
| 1 | garden | |
| 2 | parking | |
| 3 | garage | |
| 4 | balcony | |
| 5 | pets | |
| 6 | flooring | |
| 7 | bills included | |
| 8 | ensuite | |
| 9 | rural | |
| 10 | student |
Rented Garden Ideas
Wednesday 24th March 2021
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. Property Appetite Among Landlords Remains Strong
Friday 19th March 2021
Despite the LBTT holiday ending at the end of this month here in Scotland, the latest research has shown that appetite for property among landlords is still high. The research carried out by Foundation Home Loans has shown that landlords have indicated that they will remain active in the rental property market from April onwards when the stamp duty holiday is due to end. It was predicted that Scotland would follow England and Wales in extending the holiday for another three months, but the Scottish government has confirmed that the LBTT holiday will end as planned, on March 31st. The research from Foundation Home Loans and data group BVA BDRC revealed that 48% of buy-to-let property owners will remain active in the first quarter of the year but 41% of landlords would buy in the second quarter, 28% in the third quarter and 29% in the final quarter of 2021. The survey involved questioning nearly 1,000 landlords in December 2020 and January 2021. The research showed that overall, 16% of landlords would buy and additional property this year and only 14% would abandon the purchase if completion didn’t look likely before the end of March. When asked if the government would extend the LBTT relief in Scotland, 31% believed that the deadline would remain and only 4% were buying property because of the stamp duty holiday. This indicates that landlords have a continued intention to keep purchasing property to let, regardless of the stamp duty holiday being extended which is positive news for the sector.
Residential Property is Still the Investment of Choice
Wednesday 10th March 2021
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’.
Spring Budget 2021
Friday 5th March 2021
This week Chancellor Rishi Sunak outlined the Spring Budget. He announced a range of measures that will affect the property industry following a challenging year. The Furlough scheme has been extended until September 2021, the stamp duty in England and Northern Ireland has been extended to September (with a tapered system brought in from July), and there is a new government-backed mortgage guarantee scheme to help reintroduce low LTV mortgages.
Furlough
This is the most significant announcement for the private rented sector for the short term. This extension of the furlough scheme, combined with the uplift in Universal Credit, will provide additional support for many tenants across Scotland and safeguard the finances of landlords and letting agents by helping to prevent rent arrears. That said, when the furlough scheme comes to an end there could be some redundancies which could affect tenants’ ability to pay their monthly rent. Private tenants have been the hardest hit by the pandemic – and have found it difficult obtaining emergency housing from local authorities - whereas homeowners have been able to take a 6-month mortgage break which would be added to their loan. As yet, there have been no plans to offer financial support for those who need to pay off rent debts that have built up as a result of the pandemic, and therefore face the prospect of damaged credit scores and being able to find somewhere to live in the private sector.Stamp duty
The stamp duty holiday has been extended until July 31st, when a tapered payment system will be introduced until the tax holiday ends in September. This applies to stamp duty in England and Northern Ireland, with the news that Wales will follow suit with LTT. However, in Scotland those in the middle of a property purchase will lose out as Kate Forbes, the Finance Secretary, has stated that LBTT will end as planned. We expect there will be pressure from within the industry for the Scottish government to change its stance on this.Mortgage guarantee scheme
A new mortgage guarantee scheme aims to bring back low deposit mortgages that have been largely withdrawn by UK lenders since the start of the pandemic. This policy now gives people a chance to buy their own home with just a 5% deposit. The mortgage is available from some of the UK’s largest lenders including Barclays, Santander and Lloyds and can be used for properties up to the value of £600,00. The scheme is open to all buyers, not just first-time buyers, and is not limited to new build homes. It will run from April 2021 to December 31st 2022. Landlords Snap Up Properties
Thursday 25th February 2021
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.
Renting in 2021
Wednesday 27th January 2021
We believe that renters and landlords should be optimistic for the coming year. As the vaccine programme is rolled out, there is an increase in confidence here in Scotland resulting in a rise in renter-demand. It’s a renter’s market and landlords offering quality homes to those tempted into rental through market uncertainty will benefit this year. Outside space There has been an increase in demand for properties with outside space and Insta-worthy interiors. Searches for property with a garden or roof terrace was higher than ever – it was even Rightmove’s top search term for those looking for a new home in 2020 alongside ‘parking’ and ‘garage’. With outside space in high demand, this year could see more people reconnect with nature, with the emphasis on gardening - whether it’s a large plot or small balcony. City location Although there has been a marked increase in those moving away from cities to more rural areas following a re-evaluation of what people want from their homes, Glasgow is unique in that the West End in particular will never lose its appeal. With plenty of access to parks and green space, great bars and restaurants, boutiques and, of course, the university close by, demand will always be high. People want great properties close to Glasgow city, especially if it has additional space to accommodate home working and some access to outside space. Working from home Demand from single occupancy residents looking to increase their living space to allow working from home and extra bedrooms from young professionals has resulted in demand for larger properties especially three-bedroom houses, but there are a large number of people who will want to save money by living in smaller properties in a great area - especially in an uncertain job market. Pets Last year there was a surge in demand for properties that allowed pets with a record rise in the number of Google searches for pet friendly homes. As professionals gear up to blended home/office working, it is believed that renters will want access to green open space, parks and trails and pet-friendly services. Talk to us at Newton Properties if you are looking for a rental property to suit your lifestyle.
Make a House a Home!
Sunday 17th January 2021
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. Eviction Ben Extended in Scotland
Saturday 9th January 2021
A temporary ban on evictions in Scotland has been extended until the end of March 2021. There will be regulations presented to the Scottish Parliament on the 14th January 2021 which will outline an extend the current ban, which is in place until the 22nd January. This extension to the ban will apply to all evictions with the exception of serious anti-social behaviour, including domestic abuse. The terms are subject to review every three weeks to ensure it remains necessary to protect against the spread of coronavirus and will remain until 31 March 2021. This means that renters will retain a safe home during the pandemic, reducing the burden on local authorities, who have a duty to re home those who have been made homeless following an eviction. It will also make it easier for people to follow the guidelines during the current lockdown. Housing Minister Kevin Stewart said: “Extending the temporary ban on the enforcement of eviction orders in the private and social rented sectors in areas subject to level 3 and 4 restrictions will support tenants, and offer people protection from transmission of the virus by being able to stay safe in their homes. "It will also prevent additional burdens being placed on health and housing services during a time where they are already working hard due to the impact of the pandemic. This is a proportionate response to an extremely challenging set of circumstances. In the case of serious anti-social or criminal behaviour – including domestic abuse – eviction orders can still be enforced. “We have been clear that no landlord should evict a tenant because they have suffered financial hardship due to the pandemic. Tenants in difficulty should engage with their landlord and seek advice on the options open to them.” This ban which has been formally extended for two months is expected to be repeated in England. First Minister Nicola Sturgeon said: “It has become even more important to stop people from needing to find a new home or perhaps from having to move in with a different household. For that reason the regulations to prevent the enforcement of eviction notices will be extended until March 31 in all Level 3 and Level 4 areas, which of course right now is the entirety of Scotland. And if necessary the regulations can be extended further after that date.” Talk to us at Newton Letting if you have any queries regarding your rights and responsibilities as a landlord during this time.
What's in Store for Rental Demand in 2021
Saturday 2nd January 2021
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.
Maximise Your Income Through Your Rental Portfolio
Tuesday 15th December 2020
If you have a property portfolio, the success of your rental properties will depend on several factors – all of which you are in control of. Here are some ways to ensure you are maximising your income through your rental portfolio:
Due diligence
It’s important to do your due diligence when purchasing a rental property, but how do you do this effectively? You need to carry out thorough investment property analysis and calculate the capitalisation rate, cash-on-cash return and profit margins to understand your return on investment (ROI). You need to ensure your property is cash flow positive. Use an online ROI calculator to make sure you will earn the maximum amount from a chosen rental property and talk to a good lettings management company and financial advisor to get to grips with the numbers.Tenants
Regardless of the predicted ROI, this is moot unless you actually have a tenant who will pay the rent, on time, every month. The best thing to do is use a letting agent that will carry out all the necessary checks before offering a tenancy agreement, ensuring they are in a position now and in the future to pay their rent. Make sure you carefully consider your tenants to avoid any potential void periods.Positively geared property
A positively geared property (or positive cash flow property) is an investment property that makes more money in rental income than the outgoing costs put together. Talk to an advisor regarding the figures to ensure you are investing wisely.Understanding tax
When you invest in property you can take advantage of several tax benefits. Make sure you are aware of all tax deductions that apply to your property whether they are profitable or you experience losses. Talk to a good financial advisor to make sure you understand your rights and responsibilities.Don’t include utility costs
The rent you set should exclude all utility costs as this will help you to maximise your income and make as much money as possible through your investment.Insurance
Make sure you get a top-rated insurance policy when investing in rental property. This will give you a safety net should your property experience any damages. You could also consider cover for non-payment of rent and any associated legal costs – something that has been an issue during the pandemic. Talk to an independent broker who can find the best policy and who is aware of all the small print with exclusions. It’s important to equip yourself with the right knowledge and advice to make sure you can maximise your income. Talk to us at Newton Letting if you would like advice on your property portfolio. How to Scale Your Property Portfolio
Friday 4th December 2020
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. What Are Renters Looking For?
Friday 27th November 2020
According to recent research from Zoopla, renters have changed what they are looking for from a home as a result of the lockdown and the subsequent restrictions we have been placed under. Zoopla's advanced property search tool revealed that over the last 12 months renters had specified 'garden' at the top of their wish-list along with ‘balcony’ and ‘rural’ showing a shift towards renters seeking outside space both within their living space and in their surroundings. ‘Garage’ and ‘parking’ also topped the list – perhaps demonstrating a shift towards less reliance on public transport. Also on renters’ wish-lists was ‘pets’ showing the surge in renters looking for pet-friendly homes. Here are renters’ most searched for terms: 1 garden
2 parking
3 garage
4 balcony
5 pets
6 flooring
7 bills included
8 ensuite
9 rural
10 student The lockdown back in March and the recent tier system seeing the Glasgow area being placed in the highest level of restrictions until December 11th has resulted in people placing importance on having access to outside space. In addition, with many people working from home, living close to public transport is less important and so there’s a shift towards people looking for rural properties. There has been an increase in the demand for houses over flats with people looking to rent bigger properties for longer, which is in turn increasing average tenancy lengths. The demand for family homes in the rental market has continued to rise over the last ten years and this looks to continue given the challenges around first-time-buyers, particularly those with young families. This reassessment combined with government incentives has triggered a mini housing market boom and a flurry of activity in the buy to let sector.
Tier 4 - Guidance for Landlords
Wednesday 18th November 2020
This is an uncertain time for many landlords and tenants. On November 2nd 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.
Landlords Eligible for Mortgage Holiday
Monday 9th November 2020
It has been announced that the mortgage holiday introduced in March is being extended with applications open until January 31 2021. This mortgage repayment holiday scheme enables people to put a hold on mortgage repayments for up to, and not exceeding, six months. Over 1.2m people have already taken advantage of mortgage payment holidays after banks were instructed to offer them to customers. It was part of a package of measures to help people affected by the pandemic. Initially borrowers could take a three-month holiday and this was then extended to 6 months. The take up was huge – with UK Finance reporting one in nine mortgage customers have benefitted from this scheme. It enabled a vast number of people to take a break from what is usually their largest outgoing, giving them breathing space if they were on a lower wage, for example on Furlough, or have lost their job. Landlords have been reassured by the Government that they can benefit from the new extended mortgage holiday scheme. The Financial Conduct Authority (FCA) and the Ministry of Housing have updated their websites to clarify that buy-to-let borrowers are also covered by its new guidance during the pandemic. This means that landlords can ask their lender for a payment break for up to 6 months and applications will be open until the end of January. If you have already taken a three-month mortgage break this means that you can extend it for another three months. If you have already taken a six-month break, you have reached the maximum and will be unable to take a further repayment holiday. The FCA says: “Borrowers, including those with a buy-to-let mortgage, who have been impacted by Coronavirus and have not yet had a mortgage payment holiday will be entitled to a six-month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.” You should only ask for a payment holiday if you need one as interest will accrue and when the repayment holiday ends your monthly amount will go up and you’ll have more to pay off in the long run so the option should only be utilised by those who really need it. The increase will be to pay for the three or six months’ worth of missed payments plus the additional interest. It’s important to note that if you want to take a holiday you MUST talk to your bank and apply for the holiday. If you simply cancel your direct debit this will be seen as non-payment and will affect your credit score.
Tenanted Properties in High Demand
Sunday 1st November 2020
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.
Houses are in High Demand
Thursday 22nd October 2020
Following the re evaluation of tenants’ priorities following lockdown – and a continuing of restrictions on those of us living in the central belt of Scotland – it appears that houses are currently in higher demand than flats or apartments both in Glasgow and across the rest of the UK. According to research from Howsy which looked at rental data across 22 major cities across the UK, demand for houses is currently at 29% whilst demand for apartments and flats is an average of 26%. Here in Glasgow the demand for houses is currently 59% with flats and apartments at 41%. The overall tenant demand currently stands at 42%. Regional variations show that Belfast was as much as 69% as tenants look for more inside space to accommodate home working and spending more time at home, and a need for outside space as for many people socializing in the garden is the only way they can see friends and family at home. However, there were some cities where flats and apartments remained the most popular option with Manchester showing the highest demand at 57% so for some major cities, the demand for apartments remains robust. As Scotland returns to some form of normality – which looks like next year at the earliest – demand for flats and apartments should increase, especially in university towns and cities. This will be welcome news for landlords. If you are looking for a house to rent register for property alerts.
Supporting Tenants in Scotland
Wednesday 7th October 2020
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 30th) 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.
Covid19 Update - Property Viewings
Monday 28th September 2020
Here at Newton Letting we are keeping a close eye on Government guidelines and have implemented all requirements to ensure the safety of our landlords, staff and tenants.
Anyone looking to view a property with Newton Letting, will need to adhere to the following rules and guidance in line with the Scottish Government.
All viewers must be registered to attend a viewing with Newton Letting and a register will be taken at the viewing prior to going into the property and only the registered viewer will be able to attend.Personal Protective Equipment (PPE) MUST be worn at the property including gloves, mask and hand sanitizer. Please note that Newton Letting will NOT provide this. An allocated time slot will be given for you to attend. If you are late, it’s at our Viewing Representatives discretion on whether or not they will allow you to view. Only one person will be permitted to view the property at a time so please do not bring family members or children with you to the viewing as they will not be able to enter the premises.
Whilst you are in the property we politely request that you limit touching any fittings or furnishings and refrain from opening doors, cupboards and drawers. We would ask that you view the property and ask us any questions after you have left the premises. For further guidance/information on Covid-19, please see the following link:
We appreciate your cooperation at this unprecedented time and if you have any questions prior to viewing, please don’t hesitate to contact a member of our team.
Investing in Buy to Let During a Recession
Friday 18th September 2020
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.
Renting Your Property In A Recession
Saturday 5th September 2020
It was announced last week that the UK is officially in a recession, so how can you successfully operate as a landlord throughout this challenging time? Prioritise good tenants over high rent It’s better to accept a reasonable offer that’s slightly lower than you anticipate, rather than experience void periods. Now more than ever, it’s important to retain good tenants so carefully weigh up the risks of increasing your rent if you have a great tenant in-situ. Rent insurance During an economically difficult time, make sure you are proactive and take out rent guarantee insurance to protect your income during times of increased risk. Talk to a broker who can look at the whole of the market and find a policy to suit your circumstances. Mortgage payment holiday Payment holidays are for people who need financial help – but it is worth remembering that this should be a last resort and only if you are struggling to make your repayments. Your credit file shouldn’t be impacted but lenders could still use this to make lending decisions in the future. Talk to an independent mortgage advisor for in-depth advice. Rent reduction If you decide to reduce rent to help your tenants during financially challenging times, makes sure there’s a clear agreement in place. Put an addendum in your rental contract with details of the deferred payments along with details of the repayment plan. Cutting costs Talk to us and other letting agents about our rental void periods and how we find renters in a tough market. Choose an agency that utilises social media and the latest technology to reach the right people as well as competitive fees. Help renters to find financial support If your tenants are struggling to pay their bills, help them to find assistance through Citizens Advice who can help them to budget, access financial aid and find out what benefits they are entitled to. Be aware of the ‘new normal’ In today’s ‘new normal’ outside space and an area or home office to enable working from home is now much higher on renters’ wish lists. A property with a balcony, garden and even proximity to outside space is in higher demand and people are very conscious of another lockdown and want to be prepared for the event. Is your renter profile accurate? Consider widening your reach – if you previously wanted to rent to students could you make alterations to appeal to professionals? Look at how you could adapt your property to appeal to a wider audience. Consider pets During lockdown there has been a surge in pet ownership and research and it’s worth considering that over 44% of households currently own a pet. If you buck the trend and allow pets, then your chance of attracting long-term, trustworthy tenants will increase. A tenant who is lucky enough to find a pet-friendly property is more likely to be a great tenant in order to protect their future rental opportunities. Just make sure that there is an additional clause in your tenancy agreement to ensure that any damage is paid for or fixed and that the property is left clean and in good order. Talk to us at Newton Letting if you would like further advice on renting your property during an economic downturn.
A Bright Outlook for Buy to Let
Friday 14th August 2020
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.
Understanding Capital Growth and Rental Yield
Thursday 23rd July 2020
It’s important as a property investor that you make a good return from your investment. This can be from rental yield which gives you regular income, or capital growth which is the increase in value of the property over time. Your return could be from either one or both of these things.
Capital growth
This is also known as capital appreciation and refers to the increase or decrease in the value of your property or property portfolio over time. If you purchased a property four years ago for £200,000 and the current value is £250,000 then your capital growth is £50,000. There are lots of factors that can affect your capital growth such as the economy, local regeneration, new transport links, low mortgage rates boosting demand in new homes and lack of supply. It’s important to invest somewhere that property looks set to increase in value and you can usually get this information from property experts and literature surrounding what’s happening in the general property market and also within each region.Rental yield
Rental yield is the return you make or expect to make from your property. To work out the rental yield for a particular property, you will need to know the purchase price of the property, or a current market value, and the annual rental income that you expect to receive. Take the annual rental income amount and divide it by the property value or purchase price. To convert this figure to a percentage, you will need to multiply this by 100. This percentage is your rental yield. For example, your new property purchase would give the following rental yield: Annual rental income: £10,000 Purchase price: £200,000 Rental yield: 5% A gross yield is when you take the example above and work out your rental yield. If you are trying to work out your net yield, you will need to take into account other costs such as your insurance, mortgage repayments, letting management fee and maintenance costs.Location
Each city and region across the UK differs in terms of rental yield as average rents vary. Recent research has shown that rental yields in Glasgow in particular are higher than in other regions. If you are looking to invest in a rental property, talk to us at Newton Lettings as we can advise you on the rental value of property across Central Scotland. Are You New to Property Investment?
Thursday 23rd July 2020
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. What Landlords Need To Do From Today
Monday 29th June 2020
The Scottish government has published the rules that landlords will need to adhere to from today, following the reopening of the property market here in Scotland. Although landlords will need to observe safety measures such as regular hand washing, socially distancing from clients and team members and using face masks, the testing and maintenance of gas and safety equipment has been relaxed until later on in the summer. Landlords will still need to make every effort to abide by gas safety rules, but local authorities will take a more lenient view of electrical safety maintenance and testing. Unless there is an ongoing problem or emergency with these utilities, maintenance won’t be required to be completed phase 3 of the route map out of the cororonvirus lockdown. Additional measures include not enabling house moves where any of the tenants are still shielding or self-isolating, and that physical viewings of properties should only take place if virtual viewings are not an option. Landlords should ensure that any repairs, maintenance and gas and electrical safety checks are carried out between tenancies where the property is vacant. If this isn’t an option, then appointments need to be made in advance and if possible, when the tenant is not present and give appropriate notice except in an emergency. In between the tenancies, landlords must carry out a deep clean to prevent the spread of the virus and for tenants’ peace of mind. If you would like further advice or help on your responsibilities as a landlord during this time, talk to a member of the Newton Lettings team.
Opening Back Up For Business
Wednesday 24th June 2020
The property market here in Scotland will officially open back up for business on 29th June as we move to phase two of our roadmap out of lockdown.
This means that home moves will surge ahead with stringent safety measures in place. Here at Newton Letting we believe that June 29th can’t come quick enough - we have many tenants waiting to get the keys to their new home and many more seeking suitable accommodation.
Pent up demand
According to latest reports from Citylets, letting agents have already experienced a huge spike in new tenant enquiries property, with transactions that were put on hold due to the pandemic, finally able to complete. We believe that there will be a big surge in demand as soon as the market opens and that the backlog of tenants that have been unable to move over the last 3 months will no doubt cause a ‘ripple’ effect with people looking to move over the peak summer months.
The importance of finding the right tenant for your property
We are yet to see the full effects of the pandemic on the economy, but with the Job Retention Scheme soon to be phased out, we do have some concerns that some tenants will not be able to meet their financial obligations. Therefore, securing the best possible tenant has never been more important going forward. It’s imperative that tenants stay as long as possible to minimise any void periods and that they are in a secure position to ensure that they can pay their rent month to month.
Keeping clients safe
The Scottish Government has issued new home moving guidance and virtual viewings should take place wherever possible and if viewing in person, virtual tours should be used prior to visiting the property to minimise the time spent at the property. In addition, it’s important to develop effective contactless tenancy moves and to keep any measures in place until the risks are negligible.
Could the market have opened sooner?
Whilst we are all relieved that the market will re open in less than a week, we also question whether the market could have opened sooner, in line with England. We believe that with the correct procedures in place to protect everyone from the risks, the market could have already reopened.
Coronovirus – A Landlord’s Guide
Thursday 4th June 2020
The buy-to-let market has been put under pressure with the financial implications making it difficult for tenants to pay their rent. But how can you navigate your way through this crisis? If your tenant has lost their job, they may struggle to pay their rent. You may be confused as to what your obligations are to your tenants during the pandemic and what financial support they can claim to stop their income from halting. Here are some of your obligations during this time:
Maintenance
Your repair obligations have not changed – as long as you practice social distancing works can still be carried out. You may have difficulty in finding contractors to do the work required, which could make it difficult to ensure your property meets the legal requirements. If you can’t resolve any issues due to the pandemic keep a record of the issue and what you have tried to do to solve it. Government advice states that you should take a pragmatic approach to any non-urgent issues and if you have taken appropriate steps, you won’t be in breach of your duties.Rental payments
Tenants have been informed that they should continue to pay rent and abide by all other terms in the agreement if possible. If they have lost their job, there are support systems available such as Universal Credit and help for the self-employed. Benefits payments may not be enough and so property owners could take a mortgage payment holiday and agree a schedule for the repayment of rent that has been suspended.Eviction
The Government has said that tenants can still be evicted but the notice period has been extended. The courts have also suspended hearing repossession cases for 90 days.Help for landlords
Landlords do not count as ‘self-employed’ and cannot get help from the government rescue package for the self-employed. Landlords can make use of an interest-free loan from the Government if they struggle to bring in rent during the pandemic and to be classified as self-employed would depend on the involvement they have with the management of their properties. A self-employed landlord would need to be operating multiple properties and generating enough income from this for it to be considered a business.Financial support
If you are a landlord and struggling financially you can defer the payment for your self-assessment tax return from July to January 2021. In addition, you can look to take a mortgage holiday – this shouldn’t hurt your credit score, but mortgage companies may look at this when you take out another mortgage in the future, and they could consider this in any offer they make.Landlord insurance
Some landlord insurance policies will cover any rental payment defaults, but your policy may only pay out once they have been in arrears for a certain period of time and notice has been served. Tenants failing to pay their rent during this time cannot be evicted for at least three months and you could be faced with delays on your claim.Finding tenants
If you have an empty property it can still be marketed to let, and it can be viewed via video call. If a lease has been signed your tenant may choose to delay the move in date so talk to prospective tenants to come to a solution. If the property is empty you will still need to pay council tax. If you would like further advice on your obligations as a landlord throughout this pandemic, talk to Newton Letting today. The Rights of Private Tenants
Thursday 4th June 2020
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. Fair Rents Bill (Scotland) Bill
Monday 1st June 2020
Today the Fair Rents (Scotland) Bill was introduced to the Scottish Parliament. The aim of the Bill is to change the law in Scotland by amending the Private Housing (Tenancies) (Scotland) Act 2016 and to improve the way that rents are set in the private rented sector, with further support for low income tenants and to help reduce poverty and hardship. The Bill will set a cap on any rental increases and allow tenants to apply for a fair rent to be set, which will be considered based on the condition of the property, the décor, the energy efficiency and other issues. Here’s a summary of the proposals in the Bill: Summary of the proposals in the Bill:
- A cap in Scotland on rent increases for Private Residential Tenancies (PRT) at no more than the annual Consumer Prices Index ("CPI") plus 1 %.
- Tenants will have a PRT with the right to apply for a fair rent to be determined once in any 12 month period.
- Private landlords are required to disclose the rents they charge for each property when they register or renew their registration on the Scottish Landlord Register.
- Scottish Ministers must publish a statement on the impact of the Bill within three years from the commencement of the proposed legislation.
- Scottish Ministers will be able to vary the additional percentage to be applied to CPI in the fair rent CPI cap either upwards or downwards, including a negative percentage.
- Fair rent determination by a rent officer of the First Tier Tribunal cannot be increased from the proposed rent figure that is being appealed against.
- The rents registered in the Landlord Register will be in the public domain.
Rental Demand Up By a Third
Monday 25th May 2020
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.According to Rightmove, almost 23,000 new rental listings appeared on the portal since the first day of reopening, down 10% on the same week last year. However, the total available rental stock is now up 13% since before the lockdown in March.Asking rents have risen 2.1% compared to last year, down from an annual rate of 3% before lockdown. On average they are £1,089 per calendar month across all Great Britain. This new activity on Rightmove shows that home-movers have determination to continue with their plans in the coming months. If you are looking for a suitable rental property, talk to us at Newton Letting and register for alerts.
COVID-19 - Rental Market Rebounds in England
Tuesday 12th May 2020
This week we saw a lifting of many restrictions in England. One of these was that the property market started back up again with estate agents being one of the first businesses to open following lockdown. Here in Scotland that message is to 'Stay Home' but could we learn lessons from what will happen in England over the next few weeks?
The last few months have been very difficult for letting agents across the UK with a steep decline in completed tenancy applications but these figures have given property owners hope. The level of demand is vital to agents and we will have to adapt to a 'new normal' when it comes to marketing property to let. It is predicted that over the next few weeks we will see a significant rebound for the market in England once restrictions on moving house are lifted further paving the way for how things could play out here in Scotland. Many moves are on hold at present so we believe that demand is building up each week. Sales will be hit harder than lettings, as people delay getting their foot onto the property ladder and remain renting instead to see how the market is affected over the next six months. Talk to us at Newton Letting if you would like advice, whether you're a tenant seeking a property or a landlord looking to maximise your investment.
The New Normal?
Sunday 10th May 2020
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.
Landlord Emergency Loan Scheme Announced
Tuesday 5th May 2020
On May 5th, the Scottish Government revealed details of the PRS Landlord (non-business) COVID-19 Loan Support scheme. It is now open for applications.
The scheme is open for opened for applications for members of SAL (Scottish Association of Landlords). This scheme is a repayable loan rather than a grant it will go some way to help those in need and has enabled landlords to access government support. The loan scheme is only open to landlords of five or fewer properties and the loan can be applied for just one property within their portfolio, even where more than one property has a COVID-19 related loss. The rationale behind this is based on the fact that 95% of Scottish landlords own between one and five properties and that those with more than five properties can spread the risk of non-payment of rent over the larger portfolio and are less likely to require a loan. This is a welcome first step but SAL believes the scheme should be opened up to help every landlords with portfolios of more than five properties if they are financially dependent on rental income and where their tenants are unable to pay their rent or properties are unable to be let due to the COVID-19 crisis. Without support, landlords will be forced into difficult decisions on disobeying lockdown guidance over viewings and move ins or losing their business, thus removing essential housing from an already short supply. SAL continues to make several points to the Scottish Government: Find out more.
Newton Letting
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info@newtonletting.co.uk