Low entry costs and flexible lifestyles bring renters into BTR
Build to Rent continues to dominate the rental property market in our region. Last week, the Northwest Insider event looked at issues around housing supply and demand. Life by Ringley MD Sam Hay was there, so for those of you who are interested, here are a few of the key takeaways.
When it comes to rental values, build to rent property continues to command a premium. Pounds per square foot does not come into BTR, instead it’s all about quality of product. Rental growth for July was around 1.13% but Andrew Cook from M&G commented that there will be pressures on pricing as more schemes come onto the market.
Low entry costs on BTR flats are making things much easier for renters. Increasingly, people want a transient way of life and easy entry and exit and they are likely to try different buildings before they settle longer term. Lifestyle choices are changing fast and renting is no longer frowned upon. Renters react positively to being viewed as customers, not tenants; maintenance issues are dealt with fast, and longer term leases are expected to take off. As a result, BTR is a huge growth area with 1.4 billion total investment this year in Manchester alone. Manchester is currently at the hub of BTR and is very much being used as a test case. Manchester city council thinks there will be an undersupply but at this moment in time, due to Section 106 requirements, consents are slowing down.
According to Tim Heatley from Capital and Centric, one downside of the BTR explosion and the high demand for one-bedroom homes is that Manchester city centre is not ready for families. Chris Shaw from Urban Splash agrees. He thinks offers in our town centres need to change, and there should also be schemes in rural areas, maybe with new ways to sell being considered, such as pre-approved mortgages where you turn up and pick your home. At the moment it is easiest to develop BTR schemes in city centres and building an investment case in other locations can be difficult.
Lambert Smith Hampton told the Northwest Insider audience that 54% of all housing investment in the North East is now for ‘alternative’ homes, such as BTR and student accommodation. The success of the latter in Manchester and other university towns has provided a model for new developments in the region. Diversification and a huge undersupply of high quality residential housing are now driving investment in residential portfolios as opposed to the standard commercial property investment model. There is even an argument in favour of BTR as a separate asset class.
As of June 1st, landlords and letting agents will not be able to charge any upfront fees for facilitating the granting, renewal, continuation or termination of a tenancy.
This guide is essential for all landlords as it helps you to further understand the changes in the law that could impact on your rental property and could even save you from receiving a hefty fine.
For tenants, it helps you to gain some basic knowledge of the change and what you can and cannot be charged for, this will ensure that is no miscommunication and your lettings process will run as smoothly as possible
This guide includes…
If you would like to download our FREE guide, simply click the button and follow the instructions on the screen.
Download hereOn April the 15th, the government announced they were going to abolish the Section 21 notice. The reason for this was going to be to stop landlords being able to remove tenants from properties with simply eight weeks’ notice and no reason was given. Now, what they proposed, is they’re actually going to tighten up the Section 8 notice, and if you have a legitimate reason, such as you’re selling the property or you have to move back in it yourself, then you will still be able to serve the tenant with notice.
We don’t really know the finer details of this, it’s all just been recently proposed, but it is something that you need to think about in the future. And landlords, I would suggest that you check online, and you also make yourself aware of the situation, what’s happening with the proposals, and what’s going on, and think about how it’s going to affect you.
Over future episodes of our Landlord TV series, we will be keeping you updated with what happens with this, and any more news that we have, so make sure you are subscribed to our social media channels to keep up to date.
The government has decided to take action and abolish Landlords ability to serve a section 21 notice. This has come in light of many claims from various tenant support groups, suggesting that 46% of tenants received a notice to leave the property within 6 months.
Removal of the section 21 could cause landlords to leave the already struggling property market and would mean many landlords wanting to rent out their property short term will no longer be able to do so, leaving them no choice but to rent indefinitely Unless sufficient grounds were given, of a similar kind to those that have been issued in Scotland.
As of December 2017, Scottish landlords were no longer allowed to serve section 33’s (their version of a section 21) for a no-fault possession, however the government have added a few extra grounds for possession if a landlord has “reasonable cause” for example, needing to sell, refurbish or move back in. Scotland now have open ended tenancies meaning there is no end date, like the “assured tenancy” and it’s looking like it will be that way here also.
The end of the section 21 comes after many campaigns from various organisations claiming that it causes tenants to ‘live in fear’.
Many tenants and support groups see this as a victory, however this abolishment will more than likely lead to landlords driving up the cost rent causing tenants to suffer as a result. This will also lead to Landlords that ‘need’ their properties back to cause an even larger decline in the already diminishing housing stock unless additional provisions are put in place. In reality, the government need to listen to landlords and give them the ability to obtain their property back when ‘needed’ as this is what happens the majority of times anyway.
Buy-to-let investors could soon fill the HMRC with stamp duty surcharge refund requests. This is following on from a potential precedent set at a recent tax tribunal that saw a couple acquire a neglected building and were able to refute the additional 3% stamp duty charge on purchases of second homes.
It was revealed at the tribunal, held in Bristol, that potentially, buy to let investors could avoid paying the 3% stamp duty surcharge. This instance could cause many more landlords who have already paid the surcharge, to demand a refund from HMRC and suggests that many property purchases could fall short of the additional 3% surcharge and just consist of the standard rate stamp duty.
Paul and Nikki Bewley acquired their uninhabitable bungalow in Western-super-Mare and made the decision to bulldoze the original build in order to make way for a new property, thinking they would not accountable for the 3% charge for Taking on the additional property.
HMRC argued this view, believing that the 3% charge was applicable, as the property was capable of being used as a dwelling sometime in the future.
However, a recent tax tribunal ruled against the HMRC and in favour of Paul and Nikki Bewley, stating that they are only able to charge the 3% if the home is in an acceptable living condition right away.
HMRC has yet to decide on an appeal, stating: “We’re considering the judgment carefully.”
But, this ruling suggests that many buy-to-let landlords could be exempt from the 3% surcharge, when buying a property that is uninhabitable at the time they purchased it.
Commercial Trust Limited, a specialist buy-to-let broker, considers that this ruling could represent an opportunity for past claims from buy-to-let investors who have paid the additional 3% charge on properties that were uninhabitable at the time of purchase.
It is no secret that the UK is facing a massive housing shortage. The recent North West Future of Housing conference, hosted by The insider, provided the perfect opportunity to discuss future housing provision in our region.
With a major strategic plan in place for the North West, there is plenty of good news around housing, particularly in the cities, but new homes are still coming on line too slowly. Over the last 10 years the region has only achieved 74% of the target for housebuilding. To improve on this we should surely be working to bring existing and unused properties back into use instead of only placing the emphasis on new build.
Manchester and Liverpool have really come forward with development and regenerated areas such as the Northern Quarter in Manchester, which used to be really run down, are now very popular. Rochdale is seeing the fastest pace of housing delivery in Greater Manchester – which is badly needed to help keep local skilled and professional people in the area rather than losing them to Manchester where the standard of living has historically been higher. Family build to rent is now coming on line in a big way with PRS provider Sigma Capital Group making this a key part of their offer in the North West.
In Bolton and Warrington modular construction is bringing new homes on to the market fast – some have been erected within 8 weeks – but there aren’t enough of them. Feeding into this is the government’s drive to encourage the manufacture of components in factories using the latest digital technology before being sent for assembly on construction sites. The Government has committed to increasing use of these methods in publicly-funded projects. If this is successful it will no doubt be taken up by the wider property market. So could modular be the solution we’re all looking for? Maybe. The main problem with modular building is that developers have to fund up to 60% of the upfront costs as opposed to obtaining finance, so the challenge around developer equity makes bringing multiple sites forward difficult. Some clever solutions will be needed here if modular is going to be the future.
Land supply also remains an issue. There is build to rent family housing now being produced on local authority land and slowly but surely more greenbelt land is being released for development. However, developers won’t risk putting in a plan for a development on greenbelt land for risk of rejection. When conditions are set with planning they can move forward with the framework much faster. There also needs to be a greater availability of land choice and flexibility around local authority-owned and private land And what about green construction? We were all told last month that we only have 12 years to save the planet, so it seems wrong that, currently, there are no regulations in place to ensure our homes are built to be environmentally friendly. This could be an opportunity for build –to-rent developers, but first they would need to find out whether people are willing to pay more rent for a home with lower utility bills as a result of greener buildings. There has to be a commercial advantage – or clear regulation – to make this happen.
The verdict from the conference was ‘could do better’ but there is certainly the will among housing providers and property specialists to tackle the problems that are holding the North West back. We need to be clear on what we are trying to achieve with future housing. The public and private sectors must then work together to make it happen.
Today I have been talking about the rental market at this year’s sold out National Residential Investment Conference, held each year in London.
Among other topics, in the spotlight during the course of the day was JLL’s recent research on the institutional (non-Housing Association) sector. Here are some key facts and figures. Having analysed seven residential developments comprising 911 units with an average scheme size of 130 homes, JLL reveals that average gross to net is 26.6% with an average rent premium of 9% for high quality build-to-rent developments and 3% rental growth.
The average tenant age across these schemes was 31 years old, achieving circa 30% more than the mean UK salary. Tenants were prepared to pay to be in a BTR or multi -family scheme and were not over extending themselves with rent to income at 28%, compared to the UK over-burdened rate of 40%.
JLL also identified these net initial yields:
Urbanisation remains the trend 4bn of world’s 7.5bn now living in cities.
The conference also threw up some interesting statistics on the changing nature of UK households.
The number of people getting married is on a downward trend. In tandem with this, the average number of children per couple is reducing and people continue to start their families later than previous generations. The knock-on effect of all this is that two thirds, or 17 million, of UK households do not contain children.
In terms of future property provision, this means that what the will UK need are more homes suited to the couples with no children, retirees and single sharers. As a result, we anticipate that micro-living solutions and co-living will get more air space coming forwards.
So what is micro-living, I hear you say. Isn’t that just an HMO? Rightly or wrongly, for most of us HMOs tend to conjure up badly converted, poorly maintained housing stock – not the purpose-built, thoughtfully designed new spaces now coming on line. The Collective at Old Oak is a good example, although arguably it could be termed student accommodation for grown-ups!
So the answer is surely not more HMOs, but well-designed spaces concerned largely with common, outside-the-apartment-space. This puts me in mind of 1930s mansion blocks with their own restaurant and no individual kitchens to speak of. At Ringley we manage some of these, which – without all the original amenities which have gradually been lost over time – are now just cramped flats. I trust in future these shared spaces will be better designed and the ‘outside-the-home’ spaces will be more about living than eating.
This weeks blog is all about inspections and how often they should be carried out. At JP Hay, we’ll first visit the property at the initial six-week period when a new tenant has moved in. We’ll then continue to visit the property every 12 weeks.
Now, if you’re doing it yourself, you should keep it up as often as I’ve just said, but if you do have an agent, just ask them and find out how often they go in to visit the property, and how many property inspections are included in your management agreement.
When we go and do a property inspection, we have an app. We will take photographs of the property, we will list any problems that we find there, and these problems can be from the landlord side or from the tenant side. What you’re doing is compiling a record, so that when it gets to the end of the tenancy, you can clearly establish anything that should be fixed, or repaired, or replaced by the tenant, and anything that is your problem as a landlord and you have to repair, or you have to fix.
Inspections are extremely important, especially when it comes to doing deposit return process because if the tenant says that they don’t owe any money, or they don’t want you to take any money out of their deposit, the deposit protection service will ask you for proof of all of your inspections during the time of the tenancy. We do know from experience that if you don’t have inspection reports, and you can’t prove that anything is down to the tenant it’s unlikely that you will be awarded any of the deposit.
Also, it’s a good time to just pop along, and speak to your tenant, find out how things are going, if they have any issues that they may not have brought to light, or they may just not have phoned you about, and just check that everything in general is okay.
The weeks blog is all about Section 21s, what they are, and when you can use them.
A Section 21 is a notice that you would serve on your tenant, to say that you required possession of the property. Now, you can’t serve a Section 21 until the tenancy has been running for four months. For example, if they’re in a six-month tenancy, you can serve a Section 21 notice at the four-month point, because you must get them a clear two months’ notice.
Generally, if we need to serve a Section 21 here, what we do is, we’ll serve them at the 10-month period, if they’re in a 12-month contract. Therefore, it gives them a clear two months’ notice to find another property. Now, it may be the fact that they don’t always move out, but then, that moves on to court proceedings, etc.
You don’t actually need a reason to issue a Section 21 notice. All you’re asking for is your property back. You’re just saying you don’t want to let it to that person, or you don’t want them to go on a rolling contract.
Do always bear in mind that you can’t serve it until the tenancy has been running for four clear months.
Now, landlords may not know this actual piece of news, but at the start of every tenancy you should always provide your new tenant with a How to Rent Guide. You can find the How to Rent Guide on the internet. Always ensure that you get evidence from them to state that they’ve received it.
The reason that you need to provide them with this guide is one, it’s a legal requirement, and two, if you do need to remove them from the property via a Section 21, you need to prove that you provided them with the How to Rent Guide.
At JP Hay we upload them to an app that the tenant has, so, we have the proof that it’s been uploaded, that they have received it and we also get them to sign a check sheet to show that they’ve received the documentation. But you must always ensure that you do this. As stated before, it is a legal requirement. If you do need to remove them from the property, you will need to provide proof to the judge that this document was handed to them at the start of the tenancy.
Now you may or may not know that the government is planning to bring it in as legislation that all people who work in the lettings industry must have a qualification. I personally think that this is a great idea and at JP Hay we’re all trained in the National Federation of Property Professionals Standards and my team are expected to pass the exams in regards to the technical qualification for lettings and property management.
Now hopefully what this will do will ensure that there are a lot less mistakes made in the lettings industry when it comes to agents, but the question for you is, how well trained are your current letting agent? Do they go through any formal qualifications? Or do they just kind of learn on the job? It can be a mind field, there are over 400 legal regulations when it does come to the lettings of property. It’s always best when you’re choosing an agent, make sure that you choose one that does train their staff really well and if preferable to the ARLA qualifications and the National Federation of Property Professionals Standard.
So, don’t always go for those that are the cheapest. I know sometimes as a landlord this may be the easiest option. If you are looking for a cheap agent it can often mean, not always, but it can mean that their staff aren’t trained correctly, and it could mean that they put you at jeopardy when it comes to the legalities of letting your property.
Stamp duty abolished for some first time buyers – and rates relief for retail.
Yesterday’s Budget speech didn’t include many dramatic new measures to boost the property sector but we certainly welcome the Chancellor’s first time buyers’ stamp duty abolition on shared ownership homes valued at up to 500,000. This is a good way to get normal working families into secure accommodation as an alternative to rent. With the huge increase in numbers of homes for sale and/or part ownership developed by housing associations we see HAs very much as the developers of the future. With a red tape tick-box-based planning system and some developers guilty of land banking sites to maintain prices – stimulus for social housing must be the answer to the housing crisis.
With the London property market cooling we also welcome the extension of the government’s ‘help to buy’ initiative, which supports many developers and ensures that UK purchasers can buy UK property – without that ability there is a serious risk of the remote or overseas landlord problem getting out of control. It is absolutely vital that we don’t alienate young buyers by pushing them out of our cities in favour of yields-driven landlords who overcrowd properties that were originally designed as family homes. The good news for renters and sharers is that increasingly there are quality purposefully designed build-to-rent homes coming onto the market in pure rent environments.
Accidental landlords – those who, say, rent out their batchelor pad got no comfort yesterday as tax relief and claimable allowances continue to be phased out.
We hope that the promised 400M for schools will be in part directed into ‘fit for work’ measures. On a day-to-day basis at Ringley we remain challenged by the lack of employability skills in many of the youngsters we support. We estimate the employer burden on filling those gaps is costing us up to 3,500 per employee.
Having been an Ambassador for Apprenticeships from the start, we welcome the 695M to develop apprenticeships. However, we remain concerned and are working with training providers on a number of challenges, in particular the fact that we cannot truly offer to take apprentices through to degree level in some disciplines such as IT and that, for example, IT apprenticeships often reflect old technologies and need updating fast.
The budget did provide much-needed help for the retail property sector. Landlords of our beleaguered high streets and retail centres should be able to hold their rents and reduce the uncertainty of void units with the announcement that rates for small business are to be cut by 1/3rd over next two years. This is a much needed reduction and some relief from the pressures of a changing landscape and digitalisation, which falls particularly unequally on break-even small businesses. Not sure we are ready to open our lavatories to the entire general public quite yet though!
We hope that the money local councils will receive to revive their high streets will inspire creative thinking as the reason for having a town centre continues to shift. More on this soon…..
As we all know in this day and age, many people do lots and lots of things online, as opposed to back in the day when they used to go strolling around the estate agents’ looking for properties to rent or to buy.
Now it’s all predominantly done by their mobile phone, or it’s done at home when they’re on the PC. With the likes of Rightmove and Zoopla, you always need to ensure that your property looks pristine on their platforms.
Whether you are promoting your property yourself or you have an agent, it’s always a good idea that when your property is uploaded to all the property portals, you do go online and have a look on there. Now, ideally you want to be getting professional photography. At JP Hay, this is something that’s a given, and something that we do for all our properties, because it makes a real difference when it comes to getting the inquiries through from the portals for people who want to view.
Always make sure you have great photographs, make sure that your property inside is clean and tidy. There’s no point in taking pictures if there’s going to be clothes everywhere, or just disarray in general. You want to get your photographs correct.
Make sure it’s not say a photograph of your toilet or your bathroom that’s the main photograph. You can either have one of the outside of the property if it’s a house for sale, or one of the room either the kitchen or the living area that stands out and looks great. Have that as the main photograph. What you want to do is to get people to stop scrolling, to click on the property, and to look further through it.
The next thing you need to do is write a great description, so you need one that sells to the senses, tells them what it will be like living in the property, how nice it will be to live there, what their lifestyle will be like, what’s within close proximity, transport links, and things to do such as restaurants, bars, etc. Make sure that it’s all made clear so it’s not just a generic kind of description that says, “The bathroom’s this,” or, “The living room’s that.” It tells them what their lifestyle would be like.
If you are using an agent, always make sure that you do go online, check your property out yourself, and make sure that it’s up to your standards, and if you were scrolling through there, would it make you stop, and would it make you want to look at that property further?
Online is extremely, extremely important. Always make sure that your property looks great, and it stands out amongst all the others on there.
This week’s blog is about Airbnb, and an issue that we’ve recently had with one of our own landlords.
So, what happened was a tenant took the property, as normal, they sent through all the checks, they signed a tenancy agreement, and then ultimately, what they’ve been doing since then is providing the apartment as an Airbnb apartment. This has been happening on several weekends, and it’s caused issues in the building and also to the other residents. It clearly states in the tenancy agreement that they’re not allowed to do this, and this is a breach of contract.
If this happens to you, what you need to do is catch them at it. You need to have proof that they are doing Airbnb. The first thing to do is to look on the Airbnb platform if you do suspect this, have a look through it, see if there are any apartments on there, if you are an agent, that you are managing yourself or, indeed, if you’re a landlord, look for your specific building, etc.
Once you find the apartment on there and you have the proof, you need to approach the tenant, have a chat with them, find out if this is a situation. Of course, see if they admit to it. It’s highly unlikely that they will because what they’ll be doing it for is they’ll be making a lot more money off Airbnb than they will if they were just paying the rent themselves. They’ll probably be making double the amount.
What you need to do is issue them with a Section 21 in order to move them out the premises because they are breaching the contract. Do ensure that you follow everything up with letters, you have plenty of telephone calls, and keep plenty of evidence.
Now, because we’ve been on top of this, we’ve managed to be able to get him right out of the property, and to be honest, he left the property without even doing a checkout with us, or being present at any point, or even answering our telephone calls.
I think once you catch them, the general consensus is that they tend to move on, but it isn’t unusual, especially in city centres, people are often thinking about doing this. You cannot tell from someone’s credit check whether this is their intention or not. They may be professional at it, or it may just be the fact that a friend has given them the idea.
What you must always do is follow the legal rules and regulations. I know it’s not ideal for a landlord but ensure that you don’t put yourself in legal jeopardy by going along, and say, just automatically changing the locks because you want to get them out. Always follow the process correctly as if you were going to evict a tenant anyway, and just make sure that you inform them they have breached their tenancy agreement, and make sure you follow the correct rules and regulations, issue them with a Section 21, and get them out the property as soon as possible, or it could have implications for you as a landlord if you are breaking the terms of the head lease of the property.
Whilst we are all in agreement that void periods should be kept to a minimum, it is extremely important that your property is a place where your next tenant walks into and it feels like home.
I do appreciate that cost can play a factor when it comes to the renewal of a tenancy and sometimes landlords may want to spend the smallest amount in between tenancies but if you make sure that your property is as near to perfect as you can get it before move in then three things will happen.
For most landlords the letting of their properties is an investment / a business and it must be treated as such. Just like when you go to a hotel, you would not expect to pay a high price for a mediocre room that looks a bit run down so you should thick about your rental properties in the same way.
In our experience at JP Hay the better the quality of the property the better the quality of the tenant. If the landlord doesn’t care about the property that they are letting then likewise why should the tenant care that much and they will often view the landlord as someone who is money hungry and doesn’t care.
So here are our following bits of advice as to what we feel should be taking place as soon as the tenant moves out.
At JP Hay we have had situations, where tenants presume that they can leave the property at the end of the tenancy and use the deposit as their last month’s rent. This is despite the fact of clearly explaining to the tenant what the deposit was for at the beginning of the tenancy.
Unless pre agreed at the start of the tenancy tenants should pay their last months rent on the last rent payment day before they move out, and the deposit is for any dilapidations that need to be taken in respect of any damage to the property. For example if you have fully painted the property before they went in, and they put marks on the walls, etc (that are beyond the scope of fair wear and tear). They should then be paying to have those marks repaired and the walls repainted.
When your tenant has decided to move out and it comes close to the end of their tenancy you should have a polite conversation and make it clear to your tenant that they should be paying their last month’s rent in full. Then what will happen after they leave the property is if there’s no money to be deducted from the deposit, you will then be able to return all their deposit back to them.
If they do not pay the last months rent and try to use this as the final months payment it can create a difficult situation for the landlord who is now without the last month’s rent, a mortgage payment looming and possible damages that need to be repaired before the next tenant moves in. Leaving the landlord out of pocket whilst they wait for the deposit release process to be completed.
Unfortunately when it comes to the law you can’t really pursue a tenant legally for non-payment of rent until they’re in two full months worth of arrears, but what you can do is pursue them personally. You can find out where they live via certain companies that will trace your past tenants for you, and then you can serve them with some court documents and issue them with a county court judgement if they don’t pay that last month’s rent.
If you are managing your property yourself, always ensure that you speak to your tenant. You must be clear with them and tell them that you will be expecting their last month’s rent and that you won’t be taking the deposit in lieu of this. If you have got a managing agent, they should also be making that clear to the tenants. Often tenants are not educated in this area and if they know someone who has done this before then they will take it that this is the process when it comes to the final months rent.
There are many advantages and disadvantages to offering a long term tenancy (i.e. longer than 12 months)
If you do decide to offer your tenant a long term tenancy agreement, it should only be for a maximum of three years. Anything longer than a three year period, and the tenancy goes from an Assured short hold tenancy (AST) to a lease, and there are a lot of different rules and regulations that are involved in a lease rather than an AST.
If you do decide to only offer your tenant a 12 month tenancy, the main advantage to this is at the end of that fixed term period you can review the tenancy agreement and its terms. Technically you are beginning a brand new contract with brand new terms. You can look at the market rate in relation to the current market values and the most recent current rental payments. You can then decide if you want to increase the rent for the term of the new tenancy.
This is often the reason why a lot of landlords do tend to stick to the 12 month term because it does give them the advantage of being able to control the tenancy.
Also if you are not sure how long you want to keep your rental property or if you are looking to sell then a 12 month agreement may be the best way to go as you may require possession earlier.
If you opt for a much longer term tenancy i.e. anywhere between six months and three years than this also can have its own advantages. It means that you have got the same tenant in your property for a fixed period of time. They are also tied into that contract for the term, and you have the piece of mind knowing that you are more than likely going to be getting your rent for the set period that the tenant is in the property.
With a longer term tenancy you must decide when it may be the correct time to impose a rent increase (i would suggest every 12 months) and to do this you must ensure that you have written into your tenancy agreement the procedure that you’re going to enforce for increasing your rent and you must stick to this. You also need to get the tenants to agree that they are going to be happy with increasing their rent at a certain point. You may want to think about putting wording in there such as “increasing the rent to the current market value” rather than just having a set fee that you’re going to increase it to at that time. The reason for this is if it is above market value then of course the tenant can refuse the rent increase on the grounds that it is unfair. You must always ensure that the rent increase is fair and realistic and is in line with the average local rents.
The final point to make is that if you do have a longer term tenancy, it is even more imperative to maintain a good relationship with your tenant as it could be harder to remove them from the property when they have a fixed term contract for a 2 or 3 year period.
Castlefield is one of the most sought after areas in Manchester, due to it being located within close proximity to the luxurious and happening Deansgate.
Yet its peaceful tranquil and green which attracts thousands to live there.
It is an inner city conservation area of Manchester bounded by the River Irwell, Quay Street, Deansgate and Chester Road. It was the terminus of the Bridgewater Canal, which was the world’s first industrial canal, built in 1764.
Castlefield is the home to landmarks such as the Granada Television Studios and the now re opened Granada Television Tour (Where you can look around the Coronation street set). It is also the perfect place for people to visit to drink and eat at the likes of Dukes 92, Alberts Shed, Choice Bar & Restaurant and Lava Bar, all of which are located within the Castlefield basin and many with water views. Dukes 92 is one of the perfect places for hundreds of people to flock to on a lovely summer’s day in Manchester. Where you can enjoy a drink in the sun by the water or eat from the sumptuous huge outdoor BBQ where the chef will cook your steak to your liking before your eyes.
The plans for Castlefield in terms of the area have always been to keep it more relaxing and green than the City Centre and this reflects within the developments planned and currently under construction. One developer in particular, currently has 3 projects based in Castlefield which comprise of One Ellesmere Street, The Roof Gardens and Sky Gardens. All of which are set to be some of the most luxurious developments to live in, with 1, 2 and 3 bedroom apartments and townhouses. The plan is to create a community within the City and attract families back to the city!
The current rental prices for the area for a 1 bed are around £800-£850pcm and for a 2 bed around £975pcm. The sales in the area for a 1 bed currently are around £180000 and for a 2 bed we are currently looking at an average price of around £285000.
With the Northern Quarter being the most up and coming place to live in Manchester City Centre, it was only a matter of time before plans for thousands of new homes fell into place. The Northern Quarter is known for its cool and trendy vibe, attracting music lovers from across the country with its many DJ record shops, music venues and nightlife. It is also the home to some of the trendiest designers, photographers, agencies and clothing wholesalers tucked away in the quirky back streets giving it the character that everybody loves. It was not until the mid-1990s that the Northern Quarter became its own distinct area. A group of like-minded parties came together to create a name and brand for the area which has led to where we are today. It has now become one of the most sought after places to live, not only for its many mill conversion properties with lots of character, but also for the new developments,which have been building up the area for many years and even more set to come.
In just the last year or so, the Northern Quarter has seen plans for over 2000 new homes to hit in 2017. Great Ancoats Street, which is one of the major links into the City Centre from outside, is set to see new 8 to 14 storey tower with 134 apartments with a scheduled completion of summer 2017. With the development of the area increasing every day, areas just beyond the boundaries such as NOMA (home to the coop head offices) are now becoming just as much a part of the Northern Quarter. Angel Gardens is one of the newest developments scheduled for completion early 2018, it will be located directly next door to the coop building. The developers have included features such as cinema rooms, business meeting spaces, rooftop gardens, BBQ Zones, gym and sports courts which are major attractions. Rental and sales values have both seen a huge rise in the last couple of years, with the current prices for a 1 bed around £850pcm and 2 bed £1100pcm. Sales prices are currently around £165000 for a 1 bed and £250000 for a 2 bed. As well as a major increase in the amount of housing coming to the Northern Quarter, the area is being developed in other industries such as bars and restaurants. We are seeing an increase every day in the amount of new eateries and fancy bars. The newest set for the Northern Quarter is a sister venue to the Dusk til’ Pawn and NoHo bars, which will begin renovations in the grade II listed Sevendale House on Dale Street and is set to be named ‘Cooper Hall’ which will offer a range of European beers, IPAs craft ales, wines and cocktails. We love the Northern Quarter here at JP Hay, the vibe and the quirky character makes it one of the most fantastic places to live and enjoy time in Manchester. That’s why we based our office here!
Landlords and tenants have busy lives and they need things to be made simple when it comes to contacting their agent. Who wants to be using their lunch break or leisure time in the evening to be contacting their letting agent to ask how the latest viewings went or when the next rent on their property is due and how annoying is it when you may be on a lunch break yourself and the person that you want to speak to is also on theirs?
At JP Hay Sales & Lettings those days are now long gone and we now have the ability to allow our tenants and landlords to communicate with us via their My Property app.
For landlords this means that from the moment that we place your property on the market you will have a full overview of what is happening 24 hours a day 7 days a week. You are able to see what viewings have taken place, what the feedback was from those viewings. The offers on your property will be visible, along with move in dates etc. Then once the tenancy has begun you will find all of your documents relating to the tenancy including inspections and inspection dates as well as when your rent is due and how much alongside any statements that you may wish to duplicate and maintenance that is currently being undertaken or has been completed.
For tenants the app is also a great time saving device and allows them to also see documentation relating to the tenancy including tenancy agreements, inspection reports, when their rent is due and any progress with maintenance. The most convenient aspect of the app for the tenants is the ability to report maintenance to the team via their smartphone or PC. The app will also inform tenants if this is an issue that is their responsibility such as changing the battery in a smoke detector and gives them small guide notes on how to do this.
Both landlords and tenants will also receive alerts straight to their smart phone when it comes to all stages of the letting of the property and also the management. What this should eliminate is members of the team having to call and disturb landlords and tenants and also eliminate them from having to call the office back for an updates.
So far we have had some fabulous feedback from both landlords and tenants who are finding the app amazing and so helpful with comments like
“This app really is fantastic and I love the fact that I have full access and visibility for my tenancy” (T Vukasinovic landlord)
We really are proud of the new addition to the JP Hay technology family and we know it is a step in the right direction when it comes to technology and making the lives of both our tenants and our landlords much easier.
Sam Hay (MD/OWNER)
Have a great day
When it comes to deposit disputes it can be a tricky and often painful process for some landlords.
Tenants now have the right to dispute the amount that a landlord wishes to deduct from their deposit. To combat this landlords, have to be extra vigilant during tenancies and ensure that they keep up to date and be detailed when it comes to their interim inspections.
Many landlords especially those who self-manage often forget about the importance of good detailed inspections and prefer to leave the tenant to it as long as they are paying the rent. Whilst I can understand this as many landlords have very busy person lives this can cause an issue at the end of the tenancy when they wish to retain some or all of the deposit for damages.
The day comes for the tenant to move out and the landlord or agent will state what they feel is fair to deduct from the deposit (being sure to take into account fair wear and tear). The tenant then disagrees with what the landlord has to say and they are adamant that they are not responsible and they will be taking the matter to dispute. They then raise a dispute with the deposit disputes committee and the decision is now left in the hands of an impartial body to look over the evidence provided and make a decision as to who should be awarded what. The decision is then legally binding on both landlord and tenant (should a landlord wish to dispute this further the only way to do this would be to take the matter to court at their own cost).
What you need to do in order to be able to retain the maximum deposit from the tenant is ensure that you have all of your evidence to support your claim. This will mean keeping all of your receipts for any items or maintenance carried out before or during the tenancy and that means ANY receipts at all no matter how small and the larger ones are even more important.
What some landlords provide and what the dispute committee will simply not accept is the landlords or agents word that a piece of furniture or maintenance was carried out at a certain cost or that a property looked a certain way when the tenant first moved in. They will need receipts and as much information as possible. They will also require a copy of the original inventory (this must be professional, detailed and include pictures and dates) copies of inspections that have taken place throughout the tenancy (again these must have pictures and dates) and a well worded and clear document showing the breakdown of costs that the landlord wishes to retain from the tenant with every bit of evidence you can get to support your case.
Without the above your case will be lost and the dispute committee will favor the tenant. This happens very often and landlords can only see the issue through their eyes and are upset when they are not awarded what they feel they should be.
For a case to go to dispute it can also take time (often around 8 weeks) which means that in the interim the landlord has to pay for any repairs or replacements that are needed at the property so that the next tenancy can commence and you may not even receive the full amount back.
Finally, please remember that evidence is king and just like any other case being put before a jury without it you have lost before you have even started.
So my advice is:
If you have any further questions, feel free to email me at info@jphaylettings.co.uk with the subject line Question for Sam
With Christmas just around the corner you may be thinking of selling or letting your property.
A lot of people tend to think “Oh i will just leave it until after Christmas and get it advertised then” but this is the wrong way to think.
What happens over Christmas is that a lot of people are in wind down mode and they sit at home in front of the TV and they start to browse the internet.
They may have the thought in their mind that they want to move next year and that could coule be either renting or buying and Christmas may be the only time that they have got to sit down, chill out without thinking about anything else and reaally take the time to browse the property portals.
This is the perfect time to get your property seen. Last year Rightmove had over 1 million visitors to their website on Christmas day alone which is much higher than average.
So what you really need to do is get your property out there now and get it seen by millions whilst they are enjoying a mince pie or a mulled wine.
Have a fabulous Christmas and New Years
As a landlord it can be a costly affair to keep your property and maintenance up to date but it really is worth it?
In my experience, if a property is well maintained and looks fresh and homely it will achieve the highest rents. The thing to remember is that if you are having work completed on your property, whether it be at the start of a tenancy or during. Or if you purchase new items for the property such as furniture or kitchen items. You should always keep a record of when maintenance was completed or when items were delivered and always keep your receipts and invoices in a safe secure place.
The main reason for this is if at the end of a tenancy you need to make any deductions from the tenant’s deposit. The deposit dispute service will need the original costs to make a good informed decision. You may say that for example a sofa is new at the start of the tenancy but if the tenant causes damage to the sofa and they then claim that it wasn’t new you will have the receipt to prove it.
The same goes for any maintenance, for example painting of the property. If your property has been freshly painted before the tenant moved in and they then cause damage that goes beyond fair wear and tear you will need the invoice as proof that you had the work completed in the first place.
Things like painting are not very easy to see when you are taking pictures and although you may know that the walls were freshly painted and free from marks a tenant may suggest otherwise leaving you out of pocket.
My advice is to keep a log of everything that is completed in the property and the receipts to reflect this. Hopefully you will have great tenants who never cause you any problems but it’ is always better to be safe than sorry!
It has now been announced by the home office that the expected roll out of the immigration act will be February 1st 2016.
What this means is that all landlords and letting agents in England who allow the tenancy to take place in the UK will be required to complete ID checks on all of the occupiers over the age of 18 years.
As of February 1st 2016 it will be mandatory for the provider of the property to see and make a copy of the evidence, which states that the tenant has the right to rent in the UK, be this for a continuous period or for a limited timescale.
Landlords or agents who fail to complete these checks could face a fine of up to £3000.
We will keep you updated of the changes we will be making in regards to our procedures and how we will be checking future tenants.
At this moment in time the property market in Manchester City Centre is very hot, properties are moving faster than ever and there just doesn’t seem to be enough stock to meet the demand. Agents everywhere are screaming out for new properties to sell or to let.
Looking at our own current experience we just don’t seem to have a property on the market for more than two weeks before it is snapped up, and this is usually a purchase as a buy to let investment.
Some say it is due to London becoming far to overpriced and that when something comes on the market in the city it’s literally snapped up within hours. So it seems that the investors are now turning their attentions to Manchester. In our office we receive tons of phone calls and enquiries from overseas clients who are looking to put their money into the Manchester market, and many of them are on the lookout for not just one property but two or three or even a whole floor of an apartment building.
Manchester itself is growing in popularity. It has always been a vibrant city but even more so lately with the opening of so many new fabulous restaurants and bars and the popularity of areas such as the Northern Quarter growing steadily. The city has really become somewhere that the people of all ages want to live, hang out and experience. This is the reason for current rentals being so buoyant, when a property comes on the market for rent it often takes a maximum of 48 hours before it is re-let.
The good news is that all of this interest is pushing up the prices for both sales and lettings and leaving the investment landlord very happy when it comes to their profit margin, but what about the people of Manchester?
We already know that there is a housing crisis and that many of us can’t get on the housing ladder due to the cost of properties rising consistently. With sales and rental costs rising is this going to price our own people out of their own city? Or are we heading for a further property crash? Only time will tell but for me personally I am really enjoying watching the city grow, expand and I am looking forward to see what the future holds for this great city of mine.
We have often been asked the question when a landlord buys a property, if they should furnish the property or not. There are many reasons for and against both and there are a lot of things that should be considered before a decision is to be made and I will attempt to explain a few of these in more detail.
There are many other arguments for and against furnishing rental properties and I have attempted to state some of the obvious.
Do remember that if your property is fully furnished you will get an allowance in regards to tax, which can be a great asset for some landlords.
We recently had an issue with a landlord who let his property unfurnished and when we asked if he would like an inventory for the property his answer was no as he was letting the property without any furniture and did not need one.
We cannot stress how important it is to have an inventory even if the property is to be let on an unfurnished basis. The most expensive damage that a tenant can do is to the structure of the property and if a landlord does not have a full colour picture inventory to support the state of the property when the tenancy first began and the tenant damages the structure by placing holes in the walls, damaging doors etc. then I’m afraid he has no other option but to pay the bill himself. His debate will not be supported when it is placed before the deposit protection dispute service. Nor will it have any weight if it is placed before the court as there is no evidence showing the property when the tenant first moved in.
This is also very important when it comes to things such as white goods, for example. If the landlord has spent money on a decent washing machine, fridge etc. in the property and the tenant decides that they are going to take these when they leave the landlord will have no evidence to support that there were any white goods in the property when the tenant moved in.
If carpets, curtains bathroom flooring have been supplied with the tenancy and the tenant puts a hole in them or burns or dirties them then an inventory will support the landlord being able to withhold money from the deposit in order to replace these items.
The cost of having a professional inventory compiled will far outweigh the cost of having to put things right and my advice is to always have a full colour picture inventory completed by a professional alongside regular inspections which will support your defence when the tenancy comes to an end should you need to withhold any of the deposit or claim any further costs for damages.