…and new 5% deposit mortgages for
Rotherham first-time buyers

The Chancellor Rishi Sunak announced two initiatives to keep the Rotherham property market firing on all cylinders into 2021.

Firstly, the £500,000 zero-rate Stamp Duty band has been extended to the 30th June 2021. After then it will phase down to £250,000 for an additional three months, returning to the pre-pandemic levels on the 1st October 2021. Secondly, Mr Sunak announced a scheme that will allow Rotherham first-time buyers to buy their Rotherham home with a 5% deposit from this April. Let me look at what each initiative means to the Rotherham property market.

1. Stamp Duty Holiday extension for Rotherham home buyers

Coming out of the first lockdown in the early summer of 2020, there was a lot of apprehension that the British property market would flounder. Therefore, when the Stamp Duty Holiday was announced back in July 2020 to boost the property market, the deadline was set at the 31st March 2021. Little did anyone know of the snowball effect of people wanting to move because of the initial lockdown in the spring of 2020, the pent-up demand following the conclusion of the EU negotiations with the subsequent ‘Boris Bounce’ and then the Stamp Duty Holiday which made the perfect storm for what has been the busiest property market in Rotherham since 2001/2.

The average stamp duty paid by a
Rotherham homebuyer is £590

The reason the Stamp Duty extension is important is that many estate agents and solicitors have been warning for the last couple of months that home buyers would pull out of property deals or renegotiate if they could not complete their sale in time before the Stamp Duty Holiday ended.

So, by phasing down the Stamp Duty Holiday, this will allow some breathing space for burdened solicitors and mortgage lenders, thus decreasing the number of buyers pulling out of their property purchase because they unexpectedly have to find up to an extra £15,000 in Stamp Duty when property sales do not complete on time.

There are currently 1,439 properties that are sold STC in Rotherham alone and the vast majority of those will save money on their stamp duty because of this extension

So, what does the Stamp Duty extension mean for Rotherham house prices?

The extension has heightened confidence in the Rotherham property market. The Government watchdog ‘The Office for Budget Responsibility’, has predicted that house prices in 4 years’ time will be just over 13% higher, compared to their pre-Christmas predicted figure of 11% growth (over the same time frame).

2. 5% deposit mortgages for Rotherham first-time buyers

From next month, Rotherham first-time buyers will be able to buy Rotherham homes worth up to £600,000 with a 5% deposit and a Government-backed mortgage with a fixed rate of up to 5 years.

Rishi Sunak wants to turn the millennial ‘Generation Renters’ into ‘Generation Buyers’ and believes this initiative should be able to help two million people get on the property ladder. When we look at what that would mean for Rotherham, I estimate …

3,532 Rotherham people could be helped onto the
Rotherham property ladder with these 5% deposit mortgages

The Government backed scheme will be open to Rotherham first-time buyers for 21 months (until the end of 2022) and available from lenders including NatWest, Lloyds and HSBC (plus others to be announced soon). It will be available on all Rotherham homes new or second hand (previous schemes applied to new homes only).

5% deposit mortgages were all but withdrawn from the market at the start of the pandemic in spring 2020 with an almost default minimum deposit of 10% (even as high as 15% in the autumn just gone) putting homeownership out of reach for all but the wealthiest Rotherham first time buyers.

I must admit I found it a scandal that homeownership among the 25 to 34 year olds plummeted from 69% in 1981 to 36% by 2014, although with certain Government incentives and low interest rates since then, that had risen to 41% by last year, but it’s not enough

With so many young families paying huge sums in rent, who could effortlessly afford to make mortgage repayments on the same property, they haven’t been able to save enough for a 10% initial mortgage deposit, let alone 15%.

Yet now with these new 5% deposit mortgages, many Rotherham first-time buyers will be able to afford to buy their first home in Rotherham. Banks will typically lend between four and a half and five times the gross annual income – this means with a modest 5% deposit; many Rotherham 20 and 30 somethings will now be able to buy their first home. Just before I finish this topic, the 5% deposit mortgages will also be available to current Rotherham homeowners who don’t have the equity built up in their existing home – thus helping second or third (or more) time Rotherham buyers as well.

How do both of these changes affect Rotherham buy-to-let landlords?

I know many of you Rotherham landlords are adding to your Rotherham rental portfolio because of the Stamp Duty Holiday and with the extension, you too will save some money from it. The issue of first-time buyer mortgages does mean the demand for private rented accommodation in Rotherham might not be as strong in the coming decade.

Don’t get me wrong, tenant demand will continue to outstrip supply of Rotherham rental properties for the foreseeable future, yet the tenant/landlord balance could alter slightly in the medium term. Rotherham landlords need to take a long hard look at their properties and ascertain if they are fit for purpose both now and into the 2030’s. Tenants are becoming a lot more demanding of what their rental property offers. Wood chip wallpaper, avocado green bathroom suites and kitchens fitted in the 1990’s (or before) simply won’t cut the mustard in the next decade.

The demand from Rotherham tenants for properties with larger gardens, or the ability to keep pets or an extra reception room/garden office to allow them to enjoy their rented home more and also being able to work from home will ensure greater demand for your rental property … and the best bit, they will pay handsomely for that in higher rent.

If you are a Rotherham homeowner, buyer, tenant or landlord and you want to discuss your options on selling, buying or renting a property in Rotherham and the surrounding area, do not hesitate to contact me personally.

We take great pride in the way we treat both landlords and tenants. We feel our approach to both parties help us maintain a very low number of issues related to deposits when a tenancy ends.

Here are seven steps we’d recommend that will go a long way to ensuring neither party will be feeling despair when it comes to deposits.

1. Landlords – have the property professionally cleaned by a reputable professional cleaning firm before the tenancy starts. Not only is this a nice way to handover the property, but it is unambiguous and the tenant must return it in the same way at the end of the tenancy.
2. Have a professional inventory drawn up by a reputable provider and make sure to include the check-in and check-out service. In most cases this will remove the possibility for argument and can equally protect both landlord and tenant. Landlords: Note that without a full and detailed inventory/check-in/check-out report the tenancy deposit schemes are unlikely to find in your favour in the event that you subsequently bring a claim against a tenant’s deposit. A list on a piece of paper is simply not good enough.
3. Keep the inventory updated. As time passes by, the landlord may well be replacing things (a new washing machine, for example). Or improvements may be made (a new bathroom, for example). Attach a copy of the invoice for such items to the inventory. That way, the inventory clerk will know what to look for at the check-out.
4. Tenants – when your tenancy eventually ends, you will need to be returning it “as you found it”, less fair wear and tear. Consider using the same cleaning company that the landlord/agent used before your tenancy started. Cleaners occasionally miss things, it’s easily done – so discuss with them and your landlord/agent whether or not the cleaning firm will be allowed back in to put things right after your tenancy has been surrendered. Note: the landlord is not legally obliged to agree.
5. Tenants – also give consideration to any damage to the property. If you are not sure about anything discuss it with your landlord/agent before the check-out since it may well be possible to find a solution that you can deal with yourself.
6. Once the tenancy is over, and the check-out report received, deal with it promptly. If there are issues to be resolved then polite and professional communications will nearly always bring a swift resolution to settlement of the deposit.
7. Final tip – And this is a really important one. If things aren’t working out the way you had expected, try not to get over emotional. This will invariably make matters worse. In these situations, we’ve seen what should have been solved quickly and easily escalated to an adjudication process with one of the tenancy deposit schemes. This is very time-consuming and very stressful.

Trying to cut corners on inventories is often a recipe for problems further down the line. We always say to my landlords to begin the tenancy with the end in mind.

You need to be thinking right from the outset what you need to do to protect yourself and the property from any issues at the end of the tenancy.

A final point is to view the big picture. We’ve seen in the past disputes over £50 at the end of a ‘good’ tenancy stretching back three years.

When you take into account that the landlord had a good tenant for three years and the tenant benefitted from a very fair rent rate during that period a little common sense and give and take soon resolves the issue and means everyone parts feeling happy.

And that’s the win win situation we aim for and which most people feel good about.

Thanks for reading and if you have any other property related questions please don’t hesitate to get in touch with us – we’d love to help you.

The UK is a nation of animal lovers.

We’ve led the way on several global campaigns which have improved animal rights and welfare.

The pet business in the UK is a billion-pound industry.

In our experience, most landlords do not want to accept people who have pets. But some will consider it based on certain criteria being met.

Here are our seven top tips for landlords when considering letting their property to someone with pets.

Remember it’s your choice either way and you need to think very carefully before deciding.

1. Seek total honesty from the prospective tenant from the outset and ask for as much information as about the pet as possible.

2. Ask for references. The more the better, with the current landlord providing one if available. They’ll need to show evidence from people who can testify as to the behaviour of the pet and, therefore, the likelihood or otherwise, of the pet causing damage to your property.

3. Ensure your agreement contains a pet clause confirming what is expected from the tenants at the end of the tenancy i.e. covering cost for any damage caused by the pet.

4. Confirm upfront how long they are likely to want to live in the property for.

5. There is an option to advertise the property with two separate rent amounts, one for a tenant without pets and a slightly higher rent for tenants who have a pet(s).

In our experience, prospective tenants have become a lot more honest about having pets. Twenty or so years ago it wouldn’t be uncommon for people to try to ‘sneak’ pets in. This is much, much rarer now.

There are certain websites where you can find more information about this subject.

These include www.letswithpets.org.uk and http://www.landlords.org.uk/agents/lets-with-pets

Thanks for reading and if you have any other property related questions please don’t hesitate to get in touch with us – we’d love to help you.

What Is Involved In Letting Out A Property And Managing It?

Starting out
Renting out a property always posses a risk, and for some landlords handing over the keys to a stranger can be the cause of immense stress and worry.
Letting agents must carry out a variety of checks to ensure the property is ‘fit for human habitation’ and provides a safe and health environment. This includes possessing an understand of safety regulation such as furnishing (fire and safety) regulation, electrical equipment (safety) regulations, gas safety (installation and use) regulations, and the smoke and carbon monoxide alarm regulation for England.
Moving in
When a tenancy is agreed, the agent must ensure they provide the tenant with statutory documentation such as a current EPC, gas safety certificate etc. Failure to serve all of the correct documents at the start of the tenancy could jeopardise their chances of taking back possession of the property at a later date.
Agents are also required to provide a detailed inventory, or schedule of condition, which records all of the contents, fixtures and fittings of the property and their state of repair. It is crucial this is carried out thoroughly as any future claim on the deposit for dilapidations will rely on it as evidence.
During the course of the tenancy the letting agent will monitor the condition of the property and will liaise with the tenant over any repairs. Letting agents have a duty of care to both landlords and tenants, often acting as mediators between the two parties and calming the waters where necessary.
Money matters
All money received from the tenant must be handled correctly to protect the interests of both the tenant and the landlord, and an audit record kept.
If landlords live overseas then, as well as management of the property, there is also the Non-Resident Landlord tax to consider. Without an agent it would fall to the tenant to operate the scheme.
The agency as a whole must also comply with all of the relevant regulations, such as having client Money Protection to protect landlords and tenants’, and making sure the accounting runs like clockwork. They remove all the stress for landlords of chasing rent reconciling payments, paying contractors and tax. Agents are also on hand to guide landlords through the processes around the end of tenancy.
At the end of the tenancy there is a very strict process that must be followed to legally obtain possession of the property. The rules surrounding this process have been changing constantly over the last years.
THE ROLE OF THE LETTING AGENT HAS NEVER BEEN SO IMPORTANT, WHILE THE WORK INVOLVED IN LETTING AND MANAGING A RESIDENTIAL PROPERTY HAS NEVER BEEN SO INVOLVED.

Valentine’s Day is fast approaching and our minds (well some of us) turning to thoughts of love, relationships and romance.
During the 21 years as a letting agent and property manager we’ve seen many times when people who have decided to rent out a property can’t ‘let go of it’ emotionally.
Our advice to all landlords, especially new ones, is to totally detach their emotions from the property.
Here are ten of our top tips to run your rental property business well.
1) If you’re interested in the buy to let business for the sake of investment and financial gain, then it’s important to “keep it strictly business”. Don’t take a viewer not wanting to move in personally or get annoyed when a tenant decides to move out.
2) When making your purchase discard the things that might be attractive to you if you were going to live in the property. What matters is selecting a property that will be attractive to the masses.
3) We know you’ve heard it before but location, location, location. Tenants, especially busy professionals love a good location. It needs to be convenient to transportation (the nearer to a train/bus/motorway the better) as well as shops and increasingly cafes and coffee shops. And if it’s convenient to schools, green spaces, restaurants, cinemas and theatres then even better for when we are able to venture back out.
4) When you rent out your property ensure that it’s fitted out to a good standard. Good quality fittings will not only attract good quality tenants, they will also attract better rental values. And as the years go by you will find yourself spending less on repairs and upgrades. Be warned though we’ve seen many a landlord pay dearly for cheap fittings/materials and/or cheap labour.
5) No one loves a cheap skate. It’s fair to say that you will very likely be financially better off in the long term by spending more at the outset. It doesn’t have to be “high-end”, just reasonably good quality. For example, when buying paint go for a good brand like Dulux as opposed to your local DIY store’s own brand. A brand like Dulux will last much longer and stand up to things like cleaning off scuffs; unlike cheap imitations which will invariably wash off with the scuff!

At Bricknells we take our responsibility to our landlords very seriously.

We are proud to be an independent estate agency because that allows us to give a far more personal service to our landlords and tenants.
That’s why we’ve put our commitments down on paper and have created the Bricknells Landlords’ Care Charter. It’s our promise to our landlords and we are delighted to share it with you.

1) We will always treat you in an honest, respectful, friendly and professional way.
2) Our fees are transparent with no nasty hidden ‘surprises’.
3) We will always provide timely feedback on any rental offers your property has received.
4) We will always do our very best to accompany you on every viewing.
5) We will always respond to your questions and enquiries within a working day.
6) We are here to help you and will answer all your questions in a patient and professional way. If you need us, we are just a phone call or email away.
7) We hold all the required insurances and industry qualifications to give you total peace of mind.
8) Above all else we will always be honest, professional and friendly.

Thanks for reading and if you have any other property related questions please don’t hesitate to get in touch with us – we’d love to help you.

On November 27 (2020) the phenomena that is Black Friday will sweep the USA and more increasingly than ever – the UK and indeed many other parts of the globe.

Online giants Amazon have already started a countdown in the run up to the day which sees prices dropped, shoppers go bonkers and sales rocket.

It’s not just Amazon and other retailers, who believe that going cheap is a good way of gaining business.

We’ve seen some lettings agencies do it too. Although not themed around Black Friday we’ve come across several agencies whose fees are so low it leaves us thinking ‘how can they charge that and still give a good level of service and expertise?’

The trouble is they can’t and a ‘Black Friday’ approach to lettings and property management doesn’t work. Over the many years we’ve been in the business we’ve seen agencies try this cheap and cheerful route but become unstuck.

It’s an unsustainable business model.

Landlords and tenants both suffer from ridiculous low fees as something has to give. It could be the calibre of staff working in pile them high and let them cheap outfits. Or the level of property management, inventory or inspections that is provided.

The old adage you get what you pay for is particularly true in the world of property.

We have always been about charging a fair fee but delivering a superb, personal service and we like to think our track record and testimonials prove that approach works for the landlords we serve.

Having a successful working relationship with landlords and tenants takes time to build rather than a ‘buy now, gone tomorrow’ way of running lettings agencies.

Like everyone else we love a good bargain but some cost corners are not worth cutting.

Thanks for reading and if you have any other property related questions please don’t hesitate to get in touch with us – we’d love to help you.

PS: If you want to let your property quickly, professionally and cost effectively call our team on 01709 365584 or email: enquiries@bricknells-rentals.co.uk for honest, expert and friendly advice.

The letting agency business is a very competitive one. And with so many different agents to choose from finding the right one to let your property can be bewildering.

That’s why we came up with these tips to make our landlord’s lives easier.

Here are six things to consider before you instruct a letting agent to market and possibly manage your property.

1) Do they have a track record in renting properties like yours? Ask for evidence of properties like yours that they have let and achieved a good monthly rent on.
2) Do they have client testimonials? A good agent will always have previous clients who will vouch for them or have positively reviewed them.
3) Do you like them? You’ll be working closely with the agent you choose so it’s important that you like and trust them. If in doubt, go with your instinct.
4) Fees and costs. Remember the old saying ‘If you pay peanuts you get monkeys’? Well it’s never truer than in the world of estate agency. Those agents who offer very low fees are often desperate for instructions so they go in very low on commission fees.
5) Where do they advertise? Increasingly buyers begin searching on the internet. So, ask the agents where they advertise. It’s also worth asking an agency how its marketing strategy differs from its competitors. What makes it stand out from the crowd?
6) What kind of contracts do they offer? Ask the agents about the length of their standard contracts. Usually it’s three months.

Thanks for reading and if you have any other property related questions in addition to those above please don’t hesitate to get in touch with us – we’d love to help you.

PS: If you want to let your property quickly, professionally and cost effectively Call our team on 01709 365584 or email: enquiries@bricknells-rentals.co.uk for honest, expert and friendly advice.

There are plenty of things in life which turn out to be a waste of money.

Such as buying shares in the social networking site Friends Reunited just before Facebook rose to absolute dominance.

Or the scores of unknown footballers around the World brought for millions by English clubs and who never even graced our green and pleasant pitches.

Just a couple of examples of money going down the proverbial drain. There are plenty more.

However, in our experience landlord’s insurance isn’t one of them.

We need to qualify that last statement a little. Good landlord’s insurance is a worthwhile use of money and often very good value.

The quality of policies and what they cover vary enormously. Like many things in life the cheapest option is rarely the best and is cut price for a reason.

Insurance policies not only give you peace of mind but when they are needed can save you time, money and a lot of hassle.

There are two main types of insurance we recommend to landlords, legal and rental. Both are good investments.

Legal insurance covers you if you ever have to get solicitors involved in a dispute with a tenant. Usually these disputes involve damages or rent arrears.

There’s also rental protection. This does what it says on the tin and protects you if a tenant stops paying their rent.

Again we’ve seen this cover serve landlords well in the past especially if the monthly payments are going towards paying on a mortgage on the property.

Home emergency repair insurance is also something worth considering. It gives the landlord cover if say for example a pipe bursts or something unexpected happens.

These policies usually offer a 24/7 service which means the issue is fixed quickly in most cases.

Don’t forget buildings and contents insurance.

Even if you don’t have a mortgage on the property you’ll still need buildings’ cover.

And if you’re property is not furnished contents insurance is often still worth having as building cover does not include your carpets, curtains etc.

So when it comes to being covered it’s certainly not a waste of money.

Thanks for reading and if you have any other property related questions please don’t hesitate to get in touch with us – we’d love to help you.

PS: If you want to let your property quickly, professionally and cost effectively call our team on 01709 365584 or email: enquiries@bricknells-rentals.co.uk for honest, expert, and friendly advice.