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Mar 19, 2020
GOVERNMENT MEASURES ON EVICTIONS AND BTL MORTGAGES
The Government last night announced a radical package of measures to protect renters and landlords affected by Coronavirus. As a result, the mortgage payment holiday provided to owner-occupiers will be extended to buy-to-let landlords and no new possession proceedings through applications to the court can start during the crisis. PACKAGE ANNOUNCED 18 MARCH INCLUDES: Emergency legislation to suspend new evictions from social or private rented accommodation while this national emergency is taking place No new possession proceedings through applications to the court to start during the crisis Landlords will also be protected as three-month mortgage payment holiday is extended to Buy to Let mortgages Yesterday ARLA Propertymark informed members that emergency legislation would be taken forward as an urgent priority so that landlords will not be able to start proceedings to evict tenants for at least a three-month period. LANDLORDS EXTENDED ALLOWANCE EQUIVALENT TO OWNER OCCUPIERS Recognising the additional pressures, the virus may put on landlords, the Government has confirmed that the three-month mortgage payment holiday announced earlier in the week will be extended to landlords whose tenants are experiencing financial difficulties due to Coronavirus. This important step on buy-to-let mortgages ensures parity of support, further to the announcement that the government made for private mortgage holders. BUSINESS RATES David Cox, ARLA Propertymark Chief Executive said: We are very conscious of the plight of tenants in these difficult times and appreciate any Government action to help those affected by the current situation. Letting agencies rely on rental payments and therefore Government must help to ensure agents can maintain their current service levels during any period where rent is not being paid. Specifically, we are calling on Government to extend the retail discount on business rates to estate and letting agents. Government Guidance will be issued which asks landlords to show compassion and to allow tenants who are affected by this to remain in their homes wherever possible. HOUSING SECRETARY ROBERT JENRICK SAID: The government is clear – no renter who has lost income due to Coronavirus will be forced out of their home, nor will any landlord face unmanageable debts. These are extraordinary times and renters and landlords alike are of course worried about paying their rent and mortgage. Which is why we are urgently introducing emergency legislation to protect tenants in social and private accommodation from an eviction process being started." At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances. To support this the government has worked with the Master of the Rolls to widen the ‘pre-action protocol’ on possession proceedings, to include private renters and to strengthen its remit. This will support the necessary engagement between landlords and tenants to resolve disputes and landlords will have to reach out to tenants to understand the financial position they are in.
Dec 22, 2019
Our Christmas & New Year Period Opening Times 2019/2020
The holiday season is finally upon us, in case you need reminding! Here's a quick notification of our Christmas opening times: Tuesday 24th December 2019 (Christmas Eve) - Closed Wednesday 25th December 2019 (Christmas Day) - Closed Thursday 26th December 2019 (Boxing Day) - Closed Friday 27th December 2019 - 10:00am to 1:00pm Saturday 28th December 2019 - 10:00am to 1:00pm Sunday 29th December 2019 - Closed Monday 30th December 2019 - 10:00am to 1:00pm Tuesday 31st December 2019 (New Years Eve) - Closed Wednesday 1st January 2020 (New Years Day) - Closed Thursday 2nd January 2020 - 9:30am to 5:30pm Remember, if you're a tenant of one of our managed properties and have a maintenance issue you need to report, this can still be reported 24/7 right here on the website. Simply click 'services', then 'report a maintenance issue'. We'll be able to respond accordingly.
May 1, 2018
Property Genius & South Manchester Flat Agency (SMFA) come together
We're excited to announce that from the 1st May 2018 Chorlton based "South Manchester Flat Agency" (SMFA) have joined forces with Property Genius to bring further benefits to our new and existing clients. This is a very exciting moment for both companies, for our employees and of course our clients. Our greatest assets have always been our people, and by joining forces we have just made a huge increase in the quality of talent. We hold similar values and philosophies on doing business, with a particular focus on being responsible, affordable and efficient. Though moving forward, we will operate as one company called "Property Genius", you can rely on the same personal working relationships that you have had in the past. You will still be dealing with the same people and you can depend on the same quality of work. The coming together of our two companies will provide a stronger presence covering the Manchester, Stockport and East Cheshire region, further strengthening our position in the market. Our merger will create a more comprehensive infrastructure with faster response times and even greater efficiency in how we deal with Lettings, Sales and Property Management. WHAT THIS MEANS FOR EXISTING PROPERTY GENIUS CUSTOMERS You will still be dealing with Graeme & Vicki for your Property / Tenancy New office location bringing an all-new High Street presence Increase in brand awareness and visibility Increased number of in-house staff to improve our efficiency Evening viewings and later opening times for Saturday WHAT THIS MEANS FOR EXISTING SOUTH MANCHESTER FLAT AGENCY CUSTOMERS You will still be dealing with Carly, Kane, James, Rufus and Anita for your Property / Tenancy Jacob Hughes will be replaced by Graeme Miller as the new Director and Branch Manager SMFA will be rebranded as Property Genius. All new website promoting our available properties and online resources to explore many of the current big issues related to Lettings & Property Management Implementation of quality systems for managing the portfolio more effectively New Accreditation and Client money Protection with ARLA PropertyMark In addition to Rightmove & Zoopla, properties will also be listed with OnTheMarket.com Introduction of Property Sales
Oct 5, 2017
Number of First Time Buyers On The Rise
First time buyers are on the rise in the UK according to new data, a development that is causing commentators to be cautiously optimistic about where the housing market is heading. THE NUMBERS A monthly report released by Connells Survey & Valuation in July found that first-time buyers were behind roughly 50 per cent of all purchase valuations on properties in the UK. That's a 6% rise over the five-year average. The news followed directly on reports from UK Finance that in June the first-time buyers market was "soaring", having risen 26% on the previous month and 9% on the figures for the same month a year earlier. It was the highest rate in over ten years. All this points to a steady uptick in the numbers of families, couples and individuals who are taking real steps towards becoming property owners for the first time. CAUTIOUS OPTIMISM Despite what sounds like a promising trend in what has been a relatively troubled UK housing market for the past few years, the experts are not completely ready to celebrate just yet. John Bagshaw, Connells Survey & Valuation’s corporate services director, points out that when prospective property owners show interest in purchasing a home by getting a valuation carried out, it does not automatically indicate that they have the means to do so. He explained that, while the market has had a significant boost in demand from those eager to become homeowners, encouraged by a solid employment situation and low mortgage rates, purchasing a home may not actually be feasible at this point for many would-be buyers. "Economic conditions are still tough," Bagshaw said. He added that the problems that have plagued the UK housing market in recent years – including skyrocketing property values and ballooning general cost of living – still make it difficult for the average person to save for a deposit. Bagshaw pointed to the fact that house prices are roughly eight times higher than average earnings, and going up nearly twice as fast, at a rate of about £10,000 a year. He indicated that first-time buyers could use some help achieving their dream of becoming property owners, and suggested that they might be given a pass when it comes to stamp duty. WHAT THIS MEANS FOR THE BUY-THE-LET MARKET The seemingly healthy signs in the private market are also hiding some not so healthy figures when it comes to commercial real estate. The number of new buy-to-let landlords entering the market has declined. The Connells Survey & Valuation report points to recent government policies that have dealt a blow to incentives for entering the rental market. These policies include the increases in stamp duty and the reduction in mortgage relief for buy-to-let landlords. Bagshaw said that the trend does not mean that the buy-to-let sector has collapsed, but that it is increasingly dominated by existing landlords rather than new ones. He pointed to the stamp duty surcharge, as well as the recent policy blows to tax relief on mortgages for buy-to-let investors as the main culprits that could be preventing new landlords from setting up shop.
Jun 21, 2017
Banned 'Tenant Fees' Part 2
More doom and gloom and yet another own goal for the government We were told this would be happening in November last year (see Banned 'Tenant Fees' good for tenants?) but that there would be consultation with the industry into what the impact such a ban would have. Research conducted by Capital Economics for ARLA Propertymark earlier this year carried out surveys with agents across the country to determine what impact the ban would have on a range of aspects, from jobs, to rent prices, to property availability. The report produced showed a ban on letting agent fees will cost the sector jobs, make buy-to-let investment even less attractive, and ultimately result in the costs being passed on to tenants. The Research shows that referencing checks undertaken by agents take, on average, eight hours to complete. It is therefore right and proportionate that the industry is recompensed for this work, which benefits tenants. The research also showed that letting agents stand to lose around £200 million in turnover, costing the sector 4,000 jobs. Landlords themselves would lose £300 million, meaning they may seek to cover their losses by increasing rents to tenants. On average, rent costs will go up by £103 per tenant, per year, ultimately meaning tenants who move more frequently will reap savings on their overall costs but longer term tenants, who are usually lower-income families, will see a loss as their rents rise year-on-year. The ban, therefore, contradicts the Government’s stated aim to encourage longer term tenancies, as tenants who stay in their homes for the long-term will end up shouldering the costs of those who move more frequently. THE IMPACT OF RECENT EVENTS During the time period this report was being conducted, Teressa May decided to call a snap election resulting in a hung parliament with a majority government still to be had. In addition, there have been three terrorist attacks in the UK, the tragic fire in Grenfell Tower and negotiations have started on Brexit. Therefore it's unlikely the Government had enough time to analyse all of the responses from the consultation, as it only closed 12 working days ago, on the 2nd June. It appears they had already made their decision and therefore the consultation was no more than a ‘tick box’ exercise and they haven’t appropriately taken the industry’s views into account. A bit like the general public's attitude to the Tory manifesto! QUEEN'S SPEECH ANNOUNCEMENT The Queen's Speech states: Tackling unfair fees on tenants will make the private rental market more affordable and competitive. The draft Bill will bring forward proposals to: ban landlords and agents from requiring tenants to make any payments as a condition of their tenancy with the exception of the rent, a capped refundable security deposit, a capped refundable holding deposit and tenant default fees cap holding deposits at no more than one week’s rent and security deposits at no more than one month’s rent SECURITY DEPOSITS In response to the consultation document, it made clear that security deposits should be set at a level that ensures that tenants have a meaningful stake in paying the rent and maintaining the condition of the property. In setting the figure at no more than one month's rent, the Government are failing to take into account any damage that can be incurred while a tenant is simultaneously defaulting on the rent. Experience has shown that for agents and landlords that have asked for a deposit equal to a month's rent in the past, some unscrupulous tenants default on the last month's rent and simply forfeit their deposit. With no additional funds to cover any cleaning or delapidations that may inevitably arise (especially likely if they are the sort of person to default on rent), the landlord is left out of pocket, paying for cleaning or damages caused by the tenant. Landlords and letting agents throughout the country will inevitably have to work out how to manage the risks involved and recover the difference in costs, the most obvious being, agents increase fees to landlords, and landlords increase the rent to cover extra costs and damages which a deposit otherwise would have satisfied. FINAL WORD It would have been great if the Government had scrapped this, like they have done with the Dementia Tax, like they have done with the scrapping school meals, like they have done with potentially bringing back fox hunting, like they have done with grammar schools, but sadly no, this piece of legislation has stayed, from a consultation that was ignored. Legislation that is going to have the exact opposite of what it set out to do. Good job!
May 16, 2017
Changes to Capital Gains Tax — How are Landlords Affected?
The 2016 budget inaugurated some major changes to the capital gains tax, which could have some major implications for buy-to-let landlords – especially those with diversified investment portfolios, and other companies. WHAT ARE THE CHANGES? Effectively, there has been a decrease in the capital gains tax on most "chargeable gains": The 18% rate became 10%, and the 28% rate became 20%. One exception, however, is those chargeable gains that accrue on residential properties that do not fall under the relief umbrella for private residences. The former 28% rate was generally applied to higher-rate taxpayers, trustees and companies, whereas the 18% rate covered anyone not in those categories (generally lower rate tax payers). The residential property exception under the new law is pretty stringent. Under the banner of "residential property", the measure includes any land that has had a dwelling on it at any point during the current ownership. WHY WERE THEY IMPLEMENTED? The idea behind these policy changes is to promote business growth and investment activity. The general wisdom is that low capital gains rates mean companies are freed up to do what they need to; essentially, to expand their capacities and create jobs. The idea behind the exception with regard to residential property is to encourage investment in companies, rather than properties. The new rates will be affecting all relevant gains realised since 6 April 2016. WHAT WILL THE IMPACT ON THE ECONOMY BE? The changes will significantly decrease the amount flowing into the Exchequer coffers, to the tune of £600-700 million per year over the next five years, according to the Office for Budget Responsibility. On the other hand, it will significantly bolster company coffers, giving businesses the capital they require to grow and open up new jobs. It will also have a major effect on those individuals and families with significant capital holdings, and those who make multiple investment transactions throughout the year. With new lower capital gains tax liability, they will now have more room to play with when it comes to managing and growing their investments. Of course, things will not change quite so much for those holding residential properties, unless of course they opt to switch some of their investments from properties to enterprises. However, the changes are designed so that they do not disproportionately affect any particular income group. The government holds, in addition, that there will be no negative impact on businesses or other organisations, as the changes are aimed primarily at individuals with capital gains tax liabilities, personally or professionally. WHAT SHOULD I DO IF I AM AN UNINCORPORATED BUY-TO-LET LANDLORD? This is the question many people are asking, and unfortunately there’s not a perfectly clear answer. One possible option is to incorporate, which also allows you to avoid private income tax rates, and take advantage of corporation profits taxes, which decreased in April 2017. However, there are of course other costs to consider involved in running a business, including administrative costs and those related to renegotiating mortgages.
Apr 3, 2017
Rents to Rise as Demand Outstrips Supply
Rises in rental prices in the United Kingdom are predicted to pick up their pace in the next five years, according to a new survey by the Royal Institution of Chartered Surveyors (RICS). While property values are expected to grow by less than 20% in that period, RICS predicts that rental prices will go up by over 25 per cent. This could mean good news for landlords who may be able to get more out of their rental portfolio. MORE AND MORE DEMAND, LESS AND LESS SUPPLY The last three months of 2016 saw the demand for rental properties among tenants continuously increasing. In addition, the ARLA Propertymark group reported that the number of prospective renters who were newly registered with letting agents increased by as much as 31% in January. At the same time, RICS predicts that landlords will continue to shrink their portfolios over the course of 2017, giving fewer properties for tenants to pick from, and pushing rental prices up. The last quarter of 2016 was the fourth in a row that saw a drop in new listings on the rental market, according to RICS. This is because many buy-to-let investors are selling properties, with house prices in general at all-time highs, and in light of some of last year’s unfriendly legislation. For more information read: Claiming of tax relief on Mortgage Interest over the next few years The Government's Housing White Paper: What does it mean for Landlords? Hammond's Autumn Statement: What It Means for Landlords Banned 'Tenant Fees' good for tenants? Among these are Fergus and Judith Wilson, the biggest landlords in the country, who pointed to the increased stamp duty as putting a pinch on their rental operations. They said that this, and newly tough rules on mortgage lending, meant that the prospects of landlords will be increasingly grim in the UK. This all means that rental prices will continue to increase, with letting agents reporting rental rises of as much as 23% in January, according to ARLA Propertymark. POSSIBLE ENCOURAGEMENT FOR LANDLORDS? While the RICS survey’s outlook was relatively gloomy for landlords, the government’s housing white paper, which was released shortly thereafter, seemed to promise some encouragement for the buy-to-let market. The government put emphasis mainly on getting developers to invest in large-volume rental properties and "family-friendly" tenancies. RICS’ head of UK Policy, Jeremy Blackburn, said that some sort of "turbo-boost" for build-to-renters would be necessary. He called for an end to "punitive measures" that work against landlords who are making an effort to increase the country’s rental stock. He added that the government needs to avoid enacting conflicting legislation, like pushing the ban on letting agent fees while also trying to force longer tenancies. Blackburn pointed out that moves like these were sending mixed signals – and therefore creating uncertainty in the sector. The RICS survey found that 25% of surveyors saw house prices rise in January. This trend is expected to continue in the next year across the country, with the exception of the capital. All in all, things continue to be uncertain for the buy-to-let market, as Brexit and last year’s policy changes begin to take full effect. It remains to be seen what’s in store for landlords in the year to come. If you would like to discuss you indivdual circumstances, why not give us a call.
Mar 20, 2017
What are Landlords' Biggest Concerns for 2017?
The job of landlords has been getting increasingly complicated as the housing crisis persists, and various plans of action have been proposed in response. While the high demand for housing makes it a good time to let your property at attractive rates, there is an ever-changing (and growing) number of policies with which landlords need to comply. There’s no doubt that the rental sector is transforming rapidly. That's why the landlords' insurance company Homelet has conducted a survey of over 4,000 landlords from all over the country, to find out what their biggest concerns are for 2017. Here are the broad strokes: (MORE) NEW LAWS Many of the biggest changes in the past few years have not been a result of market forces, but rather of the government’s reactions to these. From 3% stamp duty to the ban on agents charging letting fees, housing- and letting-related legislation has been plentiful, dramatic, and often worrisome for landlords. With that in mind, many landlords are both fearing and hoping for new legislation in the coming year. 31% of the landlords responding to the Homelet survey list new laws as their biggest concern for the next year. RESTRICTIONS ON LENDING AND TAX RELIEF FOR INTEREST Two closely related issues that have major implications with regard to financing rental properties are restrictions on mortgage lending, and on interest tax relief. Each category was listed as a concern by 29% of respondents in the Home Let survey. While the restrictions on tax relief will largely affect those landlords in the higher tax brackets and may decrease their returns, limitations on lending will affect those landlords looking to acquire new properties and expand their portfolios. BREXIT AND THE FALLOUT With the recent activation of Article 50, Brexit has officially begun, but the full implications of it have yet to become clear. Many landlords (roughly 19% of survey participants) are therefore still understandably concerned about what it will mean for them. The biggest issue here relates to supply and demand with regard to rental properties. A large percentage of London landlords, for example, may be worried about a depletion of the EU migrant tenant population in the famously diverse capital. HOUSING PRICES While the general trend in housing price values has been up, up, up in the past few years, most predictions foresee a general slowdown in 2017. This has around 14% of survey respondents worried. Rental values are, of course, also a concern, but landlords tend to like to see the overall value of their portfolio grow as well – and that’s why it makes sense that a slowdown would cause some concerns. RENT ARREARS Finally, over half of respondents to the Homelet survey said they had had a bad experience with a problem tenant. This is an age-old problem when it comes to rental properties, which goes to show that even in a time of rapid transformation, some things never change!