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New regulations proposed for Estate Agents set to transform the industry

The government has published far-reaching proposals which, if put into place, will truly transform the practice of estate agency into a more regulated and rigorous profession. The proposals should give confidence to buyers and sellers, and for agents themselves, there is the opportunity to be recognised for their expertise.

The report from the Ministry for Housing, Communities and Local Government (MHCLG) is based upon recommendations from the Regulation of Property Agents (RoPA) working group – established a year ago by the ministry. In it, the report focuses heavily on the regulation of the industry, training of those that work in the industry and the process of licensing in order to keep on raising professional standards in such a key industry.

Mark Hayward, the Chief Executive of the National Association of Estate Agents, welcomed the news from the RoPA:
“This is a significant moment for those in the property industry and a huge leap forward in stamping out bad practice. We have long called for Government intervention to ensure everyone in the industry is licensed, adheres to a strict code of practice and holds at least a Level 3 qualification (A-level). Following the extensive considerations by the working group, it is now for the Government to create the structures for a properly regulated industry, whose professional knowledge and skills are trusted and respected by all.”

Key Recommendations:
• All agencies operating a residential property business should be licensed
• All customer-facing staff employed within such residential agencies should be licensed and agree to adhere to a Code of Practice
• For specific activities, mandated by the government, a Level 3 or above qualification will be necessary
• A regulator will be appointed to oversee compliance
Whilst recommendations from a working group may not seem immediately relevant, the report which has been produced will form the basis of fresh government legislation on the subject, with the working party’s Chairman, Lord Best, stating that some of the key proposals will be realised in the next two years.

Click here to read the full RoPA report

Which type of property brings in the best rental yield

With rents increasing by 1.3% on an annual basis in May, it is clear that there is plenty of room for solid returns in the lettings market. If you are thinking of investing in a rental property, or you are a portfolio landlord looking to increase your selection of properties, then a key factor will be the potential yield that the property could return. Read on to look at our breakdown of properties and potential rental yields, and if you need any further advice then please feel free to contact us.

In terms of rental yields, Houses of Multiple Occupancy (or HMOs) are becoming ever more popular as investment properties and are widely viewed as the future of the rental market. HMOs were in previous years solely a staple of the student lettings market; however, this is now changing, and young professionals are now part of a growing tenant population favouring this rental configuration. For landlords, the mathematics is simple; multiple tenancies operating independently in one property increases rental yield significantly and means that void periods are far less of a problem.

According to the National Landlords Association, average rental yields sit at 6.9% for HMOs, some 1.3% higher than other properties. However, there are other considerations if you are thinking of buying a property with a view to let it out to multiple independent occupants; bedroom sizes must be at least 6.51 square metres and some HMOs will require a license, obtainable from the local council.

Properties in city centres are proving to be extremely popular and demand is rife for centrally located homes on the rental market. With that in mind, purchasing a flat or apartment could prove to be a shrewd move if you are looking to maximise your rental yield potential; with competition amongst renters keeping the prices of well-located properties high and avoiding those dreaded void periods of non-occupancy.

Houses with two bedrooms or more are by far and away the most popular choice amongst renters, whether they are detached, semi-detached or terraced. With the average age of the first-time buyer now at 30, more and more families are renting up until this point, so multiple bedrooms are a must. Appealing to this family and young professional market will help you to achieve your desired rental values and could potentially secure you longer tenancies with tenants willing to sign up to three-year contracts.

Fundamentally, there is no one single property which is guaranteed to give you a specific rental yield. Investing in property remains one of the most stable investment classes, and despite periods of ups and downs, in the long term it is difficult to find a more lucrative venture.

Fife Properties Lettings Director, Richard Cook commented: “One size does not fit all but we do find that 2 bedroom + semi detached/detached or terraced houses an extremely popular among tenants. Equally they give landlords a good return and provide a better exit strategy to flats if you need to sell later on”

Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the rental value of your property but gives extremely useful advice on maximising the returns. To book click the link: https://www.fifeproperties.co.uk/property-valuation/

Buy to Let remains a solid property investment opportunity

Since 2016, there have been several changes to the property market across the United Kingdom – predominantly to the lettings sector. Despite these alterations to taxation, stamp duty and bureaucracy around rental properties, most buy-to-let investors are still finding the market to be lucrative, with stable returns.

With a number of landlords departing the market when initial government changes took place in 2016, competition in the marketplace is greatly reduced and the professionalism of the sector has blossomed.

Chris Baguley, Commercial Director at buy-to-let lender Together, said: “As casual owners exit the sector, buy-to-let is becoming ever more professionalised, as individuals and companies adopt a more rigorous approach to acquiring the right properties in the right areas, and getting them ready to rent within a limited time frame on a tight budget. Perhaps most notably in the housing sector, the balance of today, there is therefore notably less competition than there was before.

“Even if we don’t see the capital growth which has been evident over the past two decades, the income available from property investment can still be attractive compared to other asset classes.”

With rental incomes increasing – the Office of National Statistics announced this month that private rents rose 1.3% on an annual basis in May, increasing once more from April – the opportunities for buy-to-let investors are evident. Additionally, financing your properties has become easier with specific buy-to-let mortgages now offered by a plethora of lenders, who are fiercely competing with one another to keep their market share, providing investors with an opportunity to obtain extremely attractive rates.

A recent survey of more than 5,000 investors found that almost three-quarters of those surveyed considered buy-to-let to be the best, least volatile long-term investment. Indeed, some 83% of buy-to-let investors who were questioned stated that it was either unlikely or very unlikely that they would sell their property over the next year, with almost 60% going on to state that they had no intentions of selling for the next five years.

Fife Properties Group Office Owner, Jim Parker commented: “The term Safe as Houses still applies today. The returns from investment property are still as attractive as it was several years ago for the reasons stated above. However, getting the right property, whether to go sole trader or ltd company, the taxation implications regarding income tax and capital gains later are all extremely important to get right in the beginning. I’ve been involved in this as an active investor and landlord for over 26 years and learning by someone else’s experience is always the best way to go. It’s not the first time I’ve helped first time landlords get started and I still offer this service today.”

Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the rental value of your property but gives extremely useful advice on getting started. To book an appointment click the link: https://www.fifeproperties.co.uk/property-valuation/

How to sell your property quickly in Summer

With plenty of buyers motivated to move before the winter months set in, summer can be the perfect time to sell your property. If you’re selling, or considering selling, then read some of our pointers to help you sell quickly this summer…

Kerb appeal
As is always the case with selling properties, a first impression can make or break a sale with a poorly presented property often putting off buyers before they have even set foot in the home. In the summer this is especially important as buyers will often drive or walk past a property before they decide to book a viewing. With the summer sun shining a light on any less-than-perfect parts of the exterior of your property, you should ensure that flowers are planted, weeds are pruned and lawns are mowed. Extra attention to details, such as ensuring that the front door has been cleaned and the windows are streak-free will pay dividends in your selling process.

Accessories
A neutral interior will appeal to a mass market and increase the scope of your property in terms of potential buyers, but if you are looking to make the most of the summer then don’t be afraid of colour. Using accessories to add pops of colour around your home that reflect the brighter summer season – such as burnt orange and lemon – will make your property stand out from the crowd in those all-important photographs.

Lights
When we think of summer, we all first think of sunshine and brighter evenings – so make the most of this light when presenting your home for sale. Get rid of heavy curtains and dark blinds, which can make a room feel smaller and prevent the light from entering a room. Buyers want to feel that rooms are bright and spacious, so if possible, have windows and doors open throughout the house to create a light, airy feeling (as well as bringing in those fresh summer scents).

Set dress
Set dressing refers to the arranging of a room or space in order to paint a picture of the kind of lifestyle which could be enjoyed in your property. Never is it more important to set dress your garden than throughout the summer months, with potential buyers wanting to know that they will be able to enjoy the outdoor space which your home provides. Tempt potential buyers by showing off your outdoor spaces with garden furniture, fire pits and barbecues.

Viewing times
During the summer months, many people like to start work early and leave early in order to benefit from the longer evenings; make sure that you can accommodate as many viewings as possible by being flexible with your viewing times. Allowing people to view your home early in the morning, as well as in the afternoon will help bring more people through the door as well as showing off your property in a favourable light.

Fife Properties Managing Director, Jim Parker commented: “Summer is certainly a lot faster when selling as people can now view in the evening because of the lighter nights. All these tips can add real value to your property and often get more than the home report value as people can see themselves moving in easily with not much to do. Now is the time to sell while the going is good”
Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/

Traditional estate agents found to be good value for money

With recent changes to the landscape of estate agency, including online-only providers and new fee structures, it may come as a surprise to some to see that traditional estate agents are considered good value with regards to fees and value-for-money, estate agent comparison site GetAgent has found.

The review site has found that 84% of home sellers who purchased a property over the last year decided to use a traditional estate agent, with 69% of those feeling that the fee which they paid was good value for money. It would seem, therefore, that when making one of the biggest decisions that many of us will ever make, the traditional method of building a relationship with an agent who then leads you through the buying or selling process is still heavily favoured.

Colby Short, founder and chief executive of GetAgent, said: “We’ve seen some big changes to the sector over the last decade through the rise and fall of the online agent and this consumer learning curve has led to an adjustment in opinion when it comes to the fee charged to sell a home.

“While a low fixed fee may have seemed like the future of home selling and many may have sold successfully via that model, a number of high-profile company collapses along with a consistent string of customer service failures has seen the market share of online agents fail to live up to expectation.

“Previously, the commission fee charged by traditional agents was seen as too high, I think the consumer is now starting to realise that you get what you pay for.

“To pay a few thousand pounds in commission to achieve a higher sold price while securing a buyer in current market conditions is ultimately much better value for money than a few hundred up front and no sale achieved at the end of it.

“Of course, the current lethargy plaguing the market is not ideal and has evidently had an impact on the price achieved and the time it’s taking to sell, but I think it has helped demonstrate the worth of a good estate agent which is a silver lining for the industry at least.”

Fife Properties Group Office Owner, Jim Parker commented: “I agree. Choosing an Estate Agent to sell your house will probably be one of the most important things you will ever do. While fees are important what is equally important is the end result. Having an Estate Agent that can demonstrate the ability to achieve more than the asking price on consistent basis could far outweigh trying to save a few hundred pounds in fees at the beginning. We have that track record”

Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/

Property transaction numbers increase by 4%

A key indication to the health of the property market is always transaction numbers, with healthy transactions pointing towards a strong marketplace with serious buyers. In April this year, there were an estimated 64,000 transactions which represents a 4% increase in transactions from the same point last year, according to LSL and Acadata.

With a marked increase in transaction numbers, the market is proving to be extremely resilient in a turbulent political landscape. Strong first-time buyer activity in the marketplace, with many taking advantage of the Government Help-To-Buy scheme, as well as the changes to Stamp Duty encouraging purchases. Indeed, only 65% of transactions were reported as liable for Stamp Duty during the first quarter of this year.

Supporting this increase in transaction volumes is an extremely solvent mortgage market, with more money being injected into the housing market in May 2019 than at any point since 2017. In May this year almost £9bn of home-purchase mortgages were approved by banks and lenders, which is 6% higher than the previous month and an 11% increase on the same time last year.

“April’s marked rise in mortgage approvals suggests that housing market activity may well have got at least some temporary support from the avoidance of a disruptive Brexit at the end of March,” said Howard Archer, chief economic adviser at EY ITEM Club, an economic forecasting group.

It seems that the sentiment in the market is that both buyers and sellers are somewhat fed up of waiting for a Brexit resolution, and are therefore eager to carry on with their property transactions in the present rather than biding their time.

Fife Properties Managing Director, Jim Parker commented: “It is business as usual as the public cannot hold on forever to see what Brexit brings. I am not convinced that it will have any further adverse effects as these have already been factored in when people are deciding. The reality is you have to move for circumstances and not because you feel like it so my advice is always to do it now if you need to, as you don’t know what will change later.”

Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/

How to become a buy-to-let landlord (3 min read)

Bricks and mortar have always been a bolthole for people looking to invest their money in a safe place and, despite recent changes to the lettings market, buy-to-let remains a popular investment avenue. If you are looking to become a buy-to-let landlord, then the results can be fruitful – follow our five tips below to start your journey!

Mortgage Matters
The first port of call if you are considering becoming a buy-to-let landlord is the mortgage market; either with your current mortgage provider if you are looking to convert a current mortgage into buy-to-let, or to the general marketplace if you are looking to buy a new property for lettings purposes. Ensure that you shop around for your buy-to-let mortgage as the marketplace is currently extremely competitive in terms of lending, which should help you to obtain favourable rates. If you are converting your mortgage, ensure that your lender has granted you “Consent To Let” before you move any tenants into the property.

Managed or Unmanaged?
With the recent surge in tenant and landlord legislation, managing your own property may seem like a daunting prospect. If this is the case, then look for a reputable estate agent who will manage the lettings process for you – this will take a lot of the stress out of letting a property for you. If you are more confident, then you may want to work with an agent to list your property and find tenants, but then manage those tenants independently – if this is the case then seek as much advice as possible and keep legislation at the top of your list as a landlord.

Landlord Insurance
When it comes to buy-to-let properties, you will need to make sure that you are covered for every eventuality. Specialist landlord insurance is a must, as well as buildings insurance, and if you have furnished a property then contents insurance may also be required. Speak to your chosen estate agent about their recommendations in terms of insurers and remember that spending a little on comprehensive cover may save you a lot in the long run.

Financials
Once you have your buy-to-let mortgage in place, you have your tenants in a fully-insured property and you are reaping the rewards, one of the key steps will be filing your taxes correctly. With buy-to-let being an investment source, you will have to pay specific taxes regarding the property and the profit which you are making from that; speaking to an accountant will help you to get your finances in order. Further to this, you will be able to offset some of your expenses and costs against tax – don’t miss out on these opportunities.

Target Market
It would be easy once you have your investment property in place to then sit back and relax. One of our recommendations would be to keep your finger on the pulse of the lettings market and adapt your property accordingly. Currently, the student lettings market is extremely popular and the potential rental yield extremely high, therefore it could be a good market to position your property within currently. As the economy changes, families may be the driving market in lettings, or indeed young professionals, therefore stay flexible with your offering and you may well be able to increase your portfolio.

Fife Properties Lettings Director, Richard Cook commented: “This is a market that we are leading in and with over 50 years of combined experience and track record it speaks for itself. Letting a property is not for the faint-hearted because it is not about getting the tenant in the property it is making sure you have the right tenant that has undergone proper vetting and after this, it is the 50 pieces of legislation you have to contend with next to make sure you are doing it right. If you are not sure then it pays to get the best advice first on all of the points about and more. This is where we excel.”

Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current rental value of your property but gives extremely useful advice on maximising your return of investment when renting. To book click the link: https://www.fifeproperties.co.uk/property-valuation/

The best ways to add value to your property

When we decorate our properties, it is often driven by personal preferences in order to make a space fit into our own idea of what is stylish. However, if you are not just looking to decorate a space but to maximise the potential value of your property, then read our guide which explores the best ways to add worth to a home.

Solve existing issues

If you’re thinking of adding value to your property then don’t jump straight to improving the aesthetic of particular rooms in order to gain the much-lauded “wow factor”; instead, make sure that your property is structurally sound. It may have less cosmetic impact, but a house with a leaking roof, subsidence or damp will be severely hindered in achieving a strong asking price due to the perceived costs and effort in fixing the issues. Take the time to assess your property and ensure there are no major defects, and this will give a solid foundation for your property to achieve the best price on the market as buyers will not be scared away by problems, nor will they be able to barter the price down.

Central issue

Take a look at the central heating system in your house – does it look modern and fit-for-purpose or is it on its last legs? If your central heating isn’t quite up to scratch, then replacing this is a sure-fire way to add value to your property as it is another issue which has the potential to put off potential buyers. Although the initial outlay for the central heating refit may seem high, you should more than recover these costs when selling the property as it is another key point which will assure buyers that your property is well-cared for.

Extra space

Adding additional living space will always attract potential buyers as this offers them versatility in the way in which they will use the property; however, before you convert that loft or garage then we would recommend doing a little research. A converted loft can add thousands to the asking price of your property, so it is certainly something to consider – before you undertake this do take a look at similar properties in your area and do some investigation as to what the top selling price has been lately. There will be a ceiling price to the properties in your area, and therefore before you add a room, make sure that there is the potential to recoup the cost in the asking price of the property.

Decoration

If you’re looking to add value to your property without any major outlay, then picking up the paintbrush could be the answer. Freshen up any paint that has seen better days around the house and do the same in the bathroom, checking on any sealants to ensure they are crisp and clean. Clean up a few simple defects and potential buyers will see your property in an entirely different light, willing to pay more for a home that they perceive to be in excellent condition. This should extend to the frontage of your home, so ensure lawns are mowed and outside areas look cared for.

Kitchens and bathrooms

That old saying that homes are sold due to their kitchens and bathrooms is true, to an extent. Having a modern kitchen and bathroom will add considerable value to your property, as well as generating much more interest from potential buyers. If you don’t want to invest in a brand-new kitchen and bathroom, then update your current spaces in order to make them more sellable. Kitchen cabinets can be painted to modernise them, and changing the door handles to something sleeker will also help to create the feeling of a newer space in the kitchen. In the bathroom, refresh the paint on the walls, keeping it as neutral as possible, and ensure that the space is bright and airy – add mirrors to make the space feel bigger, and use accessories to add colour into the space.

Fife Properties Group Office Owner, Jim Parker commented, “A different take on the typical advice and some of these top tips can be done at an inexpensive price which can completely revitalise your property so it’s often worth doing when selling to enhance the buyer experience as it often translates to a higher offer” Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/

Fife Properties Estate & Letting Agents wins ‘Best in County’ award at The ESTAS

Fife Properties Estate & Letting Agents wins ‘Best in County’ award at The ESTAS again for the 9th year, the most prestigious estate & letting agent awards in the UK

The Glenrothes, Leven and Cupar based agency received the ‘Best in County’ title for the Kingdom of Fife at the prestigious ESTAS 2019. The award was announced by Phil Spencer, the TV property expert at a lavish luncheon & ceremony at the Grosvenor House, Park Lane London attended by 1,000 of the UK’s top property professionals.

The awards, celebrating their 16th year determine the best estate and letting agents in the UK based purely on feedback from customers who are asked a series of questions about the service they have received from their agent, over 45,000 surveys were completed by customers during the competition.

Phil Spencer, who has hosted the ESTAS every year since their inception in 2003 said: “The ESTAS encapsulates what your typical agent is trying to do, which is to provide honest, transparent service for their clients. These awards are special because shortlisted and winning firms are selected purely on the service they deliver. Real feedback from real customers experiencing real service, I don’t think there can be a greater honour in the industry than to receive an award based on that mantra.”

Estate and letting agents were recognised in counties around the UK. Regional and national Grand Prix Awards were also announced for the Best Single Agent Office in sales and lettings.

Simon Brown Founder of The ESTAS said: “At The ESTAS we’re proud to say we believe in old fashioned values like customer service. We know how hard it is to deliver it and that’s why we put the spotlight on property firms who are committed to providing excellent service. The ESTAS review and awards platform brand help agents generate consumer trust.”

Richard Cook, Lettings Director of Fife Properties said “We are absolutely thrilled to be recognised at this year’s ESTAS again and this is the 9th time we have been Fife’s No.1 Letting Agent. It means so much to us as we know it’s our customers who have judged our performance over all our offices in Fife. We take our levels of customer service very seriously because we know clients have a choice. We have always been very proud of the personal service and this proves we are delivering what we promise.”

Jim Parker, Managing Director of Fife Properties said “It’s a great achievement to be awarded the top letting agent for the 9th time by our customers but over 95% of the ones that voted in the Estate Agents category rated us as excellent or amazing. Again, confirming why more and more customers recommend us to their friends and family.”

The UK has the cheapest agent fees in Europe

For most of us, the purchase of a property will be the biggest single expense which we ever have to cover, and the fees associated with this are often touted as expensive. However, a recent report has shown that fees in the UK are the lowest in Europe and therefore the old myth of expensive fees has been debunked, with other parts of Europe up to five times more expensive than the UK.

The average commission paid on the sale of a property in the United Kingdom is 1.2%, according to analysis from GetAgent, which is lower than all other European countries, with Denmark and Ireland next cheapest at 1.25% and 1.75% respectively. On the other end of the scale is Romania with an average fee of 6% – five times more than the UK.

“I think it’s fair to say that estate agents in the UK have a tough time of it when it comes to justifying their fees, with the predominant opinion being that they charge too much for the service provided,” said Colby Short, GetAgent’s chief executive officer.

“This really isn’t the case and as this research shows, the UK is actually home to the lowest estate agent fees in the EU and therefore you could argue, the best service as well. Of course, the price of property means there is a degree of relativity and the 6% commission you might pay in Romania will be a lot lower due to the lower cost of getting on the ladder,” he pointed out.

“So while you consider if three to four thousand pounds is a justifiable spend when selling a property for hundreds of thousands, remember you could be paying upward of ten thousand if you were to live in another area of Europe,” he added.

Fife Properties Group Office Owner, Jim Parker commented, “Choosing an Estate Agent to sell your house will probably be one of the most important things you will ever do. While fees are important what is equally important is the end result. Having an Estate Agent that can demonstrate the ability to achieve more than the asking price on a consistent basis could far outweigh trying to save a few hundred pounds in fees at the beginning.”

Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/

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