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Rishi Sunak, is he just delaying the pain?

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Published: 03/03/2021   Last Updated: 03/03/2021 14:01:07   Author: Deepak Bhopal    Tags: Stamp Duty, Buy A House, Property

Approximately just over 300,000 property purchases in England could benefit from a 3 month extension to the stamp duty holiday.
The introduction of the stamp duty holiday last year in March saw many people take advantage of this situation, especially first time buyers, being an increase of 5% in the first time buyer sector.

With much pressure from independent and governing bodies, Rishi Sunak has decided to extend the stamp duty holiday by 3 months, possibly saving 100,000 transactions from losing out on the tax break.
 
The extension is welcomed but hasn’t been made very clear. It doesn’t tell us if it will be applied to all purchases or would be on a tapered basis and apply to those individuals who agreed before an earlier day.

Saving of around £15,000 per property saw an increase in demand by 12% YTD. This has indeed put pressure on businesses involved in the home buying process therefore the call to remove the deadline has been suggested by many.

Some portals have suggested that if it is not changed, approximately 100,000 buyers who purchased a property in 2020 will have to pay tax, an additional £15,000.

If the deadline is extended then this could see an additional 300,000 transactions take place at a combined cost to the treasury of £1.75bn.

The tax break has impacted the housing market positively in some views. An increase of 8.5% in 2020 was unexpected till the stamp duty holiday was introduced. The desire to take advantage of this has seen an increase of 12% in people applying for mortgages.
 
We are all in favour for the extension however will this not create the same scenario in 3 months’ time? People will still miss out! The fear of missing out is also impacting home buyer behaviour with many skipping viewings and valuations.

If an extension is announced then it is vital that a tapering off period is also granted such as paperwork deadlines etc.

2021 and London Property. Where are we headed?

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Published: 13/01/2021   Last Updated: 13/01/2021 13:03:14   Author: Capital Heights    Tags: Property, Rental, Lettings, Sales, Home Buyers, 2021

Prime locations within central London have been impacted the most during this pandemic. We have seen many areas drop in price for the rental and some sales markets. Especially in areas we didn’t expect. This has subsequently increased demand in areas such as Hoxton and Shoreditch in East London which area far trendier. However, prices in Shoreditch for example are on par with areas such as Notting Hill now, so we should see return to normality soon.

Many people were stating that Londoners were leaving the capital for the South-West and other parts of the country. In reality many Londoners decided to remain in London and those that fled the capital are slowly returning.

The industry one works in also effects the movement of people. Individuals working in Banking, Medical and Transport services have high job security so areas with people within certain industries have not been affected as much. These people remain and demand amongst these groups remains high.

The vaccine is here and this will definitely impact the housing industry. As a matter of fact, we expect to see a complete turnaround. People will flood back to London as they experience the more open areas and yearn for a more party central location. After all lifestyle is a very important factor for most of us.

We expect demand to increase for property in London in 2021. Prices will also be affected by this increased demand. We forgot to mention Brexit, the underlying pin in our country. Brexit will open the UK up to a lot more international investors who are cash rich. London has always remained a city that is highly desirable. The London brand will continue to attract people from all over the world. This will in effect impact house prices and rental rates in the capital.

Transport links are still being developed and areas with extended reach due to these links will do well in 2021. Areas such as Battersea will become more desirable due to its Northern Line links. Other areas will also do well due to regeneration and installation of elements such as cycle routes and so on. One must realise that these problems we face are short term and people are still thinking long term.

To conclude we feel that the capital will definitely bounce back and we are already seeing the signs. By April 2021 there will be huge shift back to these prime locations as vaccine distribution accelerates.

What does this mean for tenants?
I would personally secure properties now on slightly longer terms, if you job security allows it and tie down more affordable rates.

What does this mean for buyers?
With news of extending the stamp duty holiday and demand continuing to rise for homes in and around the capital, get on that ladder.

What does it mean for landlords?
Investment opportunities are still to be had.

This slump is a temporary thing and as I am aware property investment was always a long-term strategy. If it wasn’t why did so many landlords not exit the market in 2008?

5 options for landlords to deal with pandemic problems

Published: 03/11/2020   Last Updated: 03/11/2020 16:42:43   Author: Deepak Bhopal    Tags: Landlord, Property Management, Lettings Agent, Estate Agent, Void Periods, Tenants, Pandemic Problem



5 options for landlords to deal with pandemic problems

Struggling to work out a plan for your property and rent payments over the pandemic?

Here are 4 options to help you out and ensure that there is minimal disruption to your rental income:

Option 1: Rent deferment


This option allows the tenant to not pay the rent for an agreed period of time. The missed payments are then added on to future monthly payments on top of the rent. We recommend you have a realistic conversation with your tenant and come to a plan that can work for both of you. Also it would be best to have documentation of this in place.

Option 2: Rent Abatement

An agreement between a landlord and a tenant that provides a period of free rent for the tenant. Rent abatement differs in the sense that the tenant is not obliged to pay rent at all but with an agreement he/she could cover all utility bills, service charges and any other outgoings. This is an option is the property would otherwise be empty. At least your ground costs are covered.

Option 3: Dealing with a defaulting tenant

If a tenant is defaulting you as a landlord should continue to perform your duties. The landlord should record all interactions with the tenant and have the ability to showcase they have tried to help the tenant and the situation. Courts has powers it can use at its discretion. This includes looking into how the landlord has tried to accommodate the tenant however the tenant has not cooperated at all. This will lead to success for the landlord in future legal action.

Option 4: Identify other opportunities

A tenant who was in a bad situation previously isn’t necessarily going to be in a better situation now. It would be best to cut losses and take this opportunity to empty the property and carry out some DIY. If you add some time and effort to your property you can make it a lot more desirable to a wider range of potential tenants. This could also allow you to increase your rental yield from the property too.

Option 5: Communication

Its tough out there for everyone. People have faced with furlough or job losses and the future looks uncertain too. During these tough times its good to have an open channel of communication between landlords and tenants. This will essentially avoid any hostile confrontations in the future and avoid any legal action too.

If you need further advice please feel free to phone the team at Capital Heights Estate Agents and we will be happy to help.
 

Easy Home DIY Tips

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Published: 05/10/2020   Last Updated: 05/10/2020 12:18:26   Author: Deepak Bhopal    Tags: Homes., DIY, Tips, Property, Decorate, Paint, Curtains, Lettings Agent, Estate Agents


Remove small scratches on furniture with toothpaste.

We all hate small scratches that appear on our furniture. The solution for many is to spend money on buying products that may help or send the furniture to a professional to repair or even go as far as replacing it altogether. Try using a peas sized amount of regular toothpaste and apply it to the scratch in a circular motion. Once applied clean the surface with a damp towel. Ta da!

Use a hairdryer to get crayon marks off the walls.

Kids love crayons, we like giving them crayons to get creative. Inevitably the little angels are going to somehow draw on the walls. If this happens simply heat the area that has crayon marks with a hairdryer for a few seconds. This allows it to soften the crayon wax and then wipe any marks away with a soft clean cloth.

Rub those marks away on a ceramic cooker with a rubber.

Ceramic cooktops may seem like a convenient alternative to gas ranges, but they're not always easier to clean. An item lying in the deep dark parts of your draws can be the solution. Yes, a rubber. Rub the area with your rubber and then wipe excess marks away with a warm damp cloth.

Add new door knobs

We have seen so may doors that jst make the property look so ugly. You can paint them but there is something missing. You got it, the door knobs. Get a screwdriver, your new door knob and get online and find a video to help you. You just saved probably £75 to £100 on labour costs, depending on how may door knobs you change.

Cover Up an Old Appliance

Appliances still work but they look ugly as hell? Why not just get some vinyl with a lovely design and wrap the front. This can spruce up any appliance and bring life back to your kitchen.

















Cover up your shelves

We all need storage in our homes. No matter how much space you create or shelves you install, they always get full and don’t look nice because of the clutter. Why not add curtains to the front of your storage shelves. This way you can have a nice-looking cover that compliments the room and you hide all of the things you have collected over the years.




Painted pots

We are a green bunch and like to have plants in the house and also in our gardens. Finding pots that are different is always a challenge and we end buying grey, beige, black, white clay pots. Buy some paint and paint your clay pots to bring some character.

Painted vinyl floor

Vinyl floors can be ghastly to look at but serve a great purpose. They keep your floors easy to maintain and protect the flooring underneath it. If you don’t want to replace them then add some colour to the floors by painting it. Try adding some stripes to the edges of rooms or a feature in the centre.

Add more mirrors

Do you want your rooms or home to look more spacious? Adding mirrors are strategic places around the home can give the sense of a bigger area. Also think of decorating your mirrors with paint to add some character. Here are some tips from Spruce on where to place mirrors around your home.

Window decoration

If you have a window that doesn’t require curtains, consider accenting it with metal brackets. These ones are actually shelf brackets. However, they fit the window frame perfectly.




Cabinet buckets

Create some additional storage space inside cabinets by attaching buckets to the door. The ones in the picture are simple little buckets normally used for holding utensils.



Add a frame around your TV

Adding a tv to a room is always dependant on where you are ging to place the sofa. The area where the tv goes than gets neglected and remains as a bare wall. Add a frame around your tv and then add other pictures surrounding it.
 


Door Wallpaper

You have changed the door knobs but the doors are still looking unattractive to you. Add some wallpaper to the doors to give them a new look. You can get a variety of wallpapers such as textured, fabric, vinyl and so on. Get exploring.

Add a Bed Canopy

Whether it a single bed in your daughters room or your double bed, adding a canopy make the bedroom look grand. Adding curtain rails on the ceiling is a very simple way of achieving a beautiful look. Curtains around your bed can make the areas cozy and also help block out the sunlight in the morning.




Paint your fridge

Give a worn-out refrigerator new life by covering it in vinyl tape. The tape is more durable than masking tape and often comes in various colours and patterns. If you are feeling really bold, you can use spray paint.

Painted Ceilings

Here’s a whacky idea, paint your ceiling a different colour than white. Actually, adding a dark colour to the ceilings can make the room feel more spacious. The ceiling will look much higher, especially if you paint down the walls a few feet as well. It’s a great hack for adding depth.

Coloured Door Edge

We never would have thought of adding colour to the edge of a door, however, it’s a fantastic idea. Not only is it fun, but it also makes the door more noticeable when it is open so you don’t accidentally bump into it.

Floating Bookcase

We always add book cases in areas that take ups pace we could be using. Why not use corners next to doors to tuck away a small book shelf. You get your storage and use a space that will never get used.

Pull-out Food Shelf

Most people would never think to use the space behind the fridge. There is not much that can fit back there. However, you can make a pull-out food shelf to put behind it. Its MAGIC!



Thanks for reading!!!

How to increase the rental yield on your investment.

Published: 02/09/2020   Last Updated: 08/09/2020 09:18:41   Tags: Landlords, Increase Yield, More Rent, Property, Investment, Covid19, Property Management, London, Ro




How to increase the rental yield on your investment.

Review your mortgage

If you haven't got a mortgage advisor, go get one and take some time to review the interest rate you are paying. While interest rates are low at the moment, you could find a great rate to fix your mortgage at.
 
Claim every tax deductible you can

Make sure you have an accountant who is a specialist in property investment. They will help you to claim every tax deductible you can. Get into the habit of keeping all of your receipts.
 
Rent your property furnished

Furnished property attracts higher rents as this takes a lot of the headache put for the tenant and of course presents your property in a much nicer light. Ensure you also take on the services of a property management company like Capital Heights as they will compile comprehensive property inventories and conduct regular inspections to ensure the tenant is treating your property well.
 
Add a bedroom

As you may have noticed recently, building work to homes is very popular at the moment. If it’s possible, adding a third bedroom to a two-bedroom property should increase the rent. You could achieve a rent increase of £100 to £150 per month. Before you start adding bedrooms, check the local market for rental demand and assess whether the cost of adding a bedroom will add the value you believe.
 
Decorate

A lick of paint inside the property will help to freshen it up and make it more appealing to tenants. This is a very cost-effective way to decrease those dreaded void periods and increase rental charges. Try to keep colours neutral as it will allow the tenant to add their own charm and it also makes the property look airy and spacious. Tip, silk paint reflects light really well and cleans easily.
 
Remove or renew carpets

Just as a lick of paint is important, so are the carpets/flooring. Change old carpets, polish floors. Ensure the carpet/flooring you use is easy to maintain and is hard-wearing. 
 
Spruce up the kitchen

Modernising a kitchen is one of the best ways to increase the value of a property. A new kitchen will probably add around 8% to the value of your property. However, it doesn’t have the same effect on rental prices. But a few simple and inexpensive adjustments could help you raise the rent. Consider replacing door knobs, adding chrome fittings, replacing worktops, and repainting cupboard doors – this makes a big difference to appeal.
 
Lease a variety of white goods to tenants

Washing machines, fridge freezers, dishwashers and tumble dryers are all necessities in a home. Research the prices for which tenants could rent independently, and charge accordingly. Some investors who have employed this strategy have seen negative cash flow properties reach break-even overnight.
 
Increase security

Ensure the property is as secure as possible. Things like window locks, child safety windows upstairs, outdoor spotlights and possibly CCTV are all aspects you should look into which will make the tenant feel loved.
 
Increase natural light in the property

If a hallway or other room is dark, think about ways to increase the natural light. Could a skylight be added, or door panels be replaced with strengthened glass? Natural light sells.
 
Spruce up doors

If internal doors are damaged, either repair or replace. New door handles help to create a feeling that the property is well looked after.
 
Create a private outside space

People crave privacy, and so creating a private outside space if possible adds appeal. Consider high fencing or hedges that separate gardens. Where you have invested in a buy-to-let property which fronts a busy path or road, a hedge could be best – it adds privacy without the bland outlook of a fence.
 
Add a seating area outside

An area that is designed for sitting is an attractive selling point to any property. You could deck an area or block paving. You may not see your investment repaid quickly, but such an addition also adds value to the property.

Thank you for reading    

Stamp Duty Changes, what does it mean for you?

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Published: 03/08/2020   Last Updated: 04/08/2020 09:43:17   Author: Deepak Bhopal    Tags: London Rental, Landlords, Tenants, Stamp Duty, Property Investment


The Chancellor, Rishi Sunak, has axed one of the most hated taxes known to man and woman in the UK. As a result the Stamp Duty tax for 90% of first time home buyers is now £0. Not to forget the reduction in tax for second home buyers too.

Whether you are looking for a buy-to-let, your first home or even rent a property as a tenant, the recent changes in stamp duty have affected everyone.

What does this mean for first time buyers?

Below are the rates first time buyers will now be paying.

Property Value                  Tax

£0 to £500,000                     0%

£500,001 to £925,000         5%

£925,001 to £1.5m              10%

Over £1.5m                          12%


So how much money can a first-time buyer save?

Purchase Price                       Old Rate                              New Rate

£100,000                                        £0                                            £0
£200,000                                     £1,500                                       £0
£300,000                                     £5,000                                       £0
£400,000                                     £10,000                                     £0
£500,000                                     £15,000                                     £0
£600,000                                     £20,000                                 £5,000
£700,000                                     £25,000                                 £10,000
£800,000                                     £30,000                                 £15,000
£900,000                                     £35,000                                 £20,000
£1,000,000                                 £43,750                                  £28,750



The new stamp duty rates are allowing more people to consider their first home purchase and the recent spike in demand is partly due to this factor, however demand heavily outweighs supply. as always.
 
What does the demand for properties look like?

There was a 49% increase in the number of people looking for properties between the  £400k and £500k price range week commencing 17th July.
The price bracket with the second highest rise was £500,001 to £750,000, where demand from buyers who will save £15,000 increased by 40%.
There was only an increase of 1% in demand for homes priced under £300,000.

The 5 areas with the biggest increase in enquiries were Milton Keynes, Watford, Harrow, Chelmsford and Ilford for properties priced between £400,000 and £500,000 since the stamp duty changes came into effect.

Will competition from the additional first-time buyers on the market increase competition for the landlords?

Rightmove thinks this may be the case and for once we might agree with RIghtmove on something.

"Although low deposit mortgage options are slowly coming back to the market, first-time buyers who were already exempt from stamp duty up to £300,000 may find that they will be competing with some buy-to-let investors also looking to make the most of the stamp duty savings in this sector of the market."

How does all of this affect you, the landlord?


If you're buying an additional property, a second home or a buy-to-let property, you will still have to pay an extra 3% in Stamp Duty on top of the revised rates for each band up until 31st March 2021.

Stamp Duty on second homes

Property Value                                         Tax

£0 to £500,000                                            3%

£500,001 to £925,000                                8%

£925,001 to £1.5m                                    13%

Over £1.5m                                                 15%
 

3% of buy-to-let investors are buying properties worth more than £500,000 and it is this group who may well stand to benefit from the stamp duty reductions the most. Investors in London and the South East have the most to gain from the changes as properties tend to be more expensive, closer to the £500k mark. As a result, many portfolio landlords across the UK will now be considering new buy-to-let purchases. Even though some areas have shown a huge interest in properties such as Milton Keynes, Watford, Harrow, Chelmsford and Ilford. 

Recent reports have also stated that landlords/investors are heading North to obtain better ROI on investments even more so they can purchase higher value properties with a reduced stamp duty charge.

How will this affect Tenants in London? 

The truth is at present there are more properties on the market due to multiple factors coming into effect at once such as the pandemic and the stamp duty changes. The sudden surge in buy-to-lets available has seen rental prices drop in some regions, London being one of them, with some reporting up to 10% decrease in rents.

As landlords grow their portfolios and first time buyers move onto the property ladder, this will have a direct impact on rental properties available on the market. This means more of a variety for the tenant and some properties may become in reach of your budget.
In the long term the London rental property market will remain strong.

For those tenants struggling and are worried about arrears due to the pandemic, the Citizens Advice Bureau has advised to allow these arrears to be covered by the government.

Overall the market will continue to be competitive, the new normal here for now is that competition is changing. Landlords, letting agents and tenants will all have to adapt.




 

Covid-19

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Published: 18/03/2020   Last Updated: 18/03/2020 12:39:38   Author: Capital Heights Press Team    Tags: Be Safe, Be Clean And Look Out For Others

We are following the recommendation of the WHO and various Governments and we recommend you all to do the same

10 ways to keep your Landlord Happy

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Published: 28/01/2020   Last Updated: 28/01/2020 13:12:22   Author: Capital Heights Press Team    Tags: Happy Landlords

  1. Pay the rent on time, every time.
  2. Keep the landlord informed of any problems with the property. Don’t let them pile up.
  3. Maintain the garden.
  4. Keep the noise down. Try to keep neighbours happy.
  5. Don’t complain about the small things. See if you can solve a few issues by yourself.
  6. Get permission for any repairs that are required for the property.
  7. Always be polite. Being polite takes you a long way. Everyone is more likely to listen.
  8. Listen to the landlord. For example, if they say no smoking then please listen.
  9. Tell the truth. Always be forward with any damage you as a tenant may have done to the property. Lying makes the whole process more painful for everyone involved.
  10. Treat the property with respect. Look after the home as if it were your own. Renting a home is a 2-way street. If you look after the property, the landlord will look after you.

5 KEY LANDLORD QUESTIONS ANSWERED FOR 2020

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Published: 06/01/2020   Last Updated: 06/01/2020 11:56:16   Author: Capital Heights Press Team.    Tags: Will Rents Rise In 2020?

  1. Will rents rise during 2020?
This will be the most welcomed news for 2020, rents are expected to rise in the new year especially in the capital. 
This is largely due to the lack of supply of rental properties therefore meaning demand will be high as many tenants will feel the competition amongst themselves and be willing to pay extra to secure their preferred home.

  1. Will the cost of running a rental property rise?
For every high there is a low. Many landlords will see costs of running a property rise in 2020. This is because of the tenant fee ban and section 21 changes. Many lettings agencies will pass loss of income to their landlords which will in effect increase running costs for landlords. 
But there is good news! CAPITAL HEIGHTS WILL NOT BE INCREASING THEIR FEES.

  1. Will landlord taxes increase?
Landlords have in recent year seen their tax bills increase during a period of time which has seen a reduction of tax relief a landlord can claim on a mortgage interest rate. 
Since April 2017 the rate has reduced from 100% down to 75%. Furthermore, in 2018 the tax relief available to landlords was reduced by a further 25% to 50%. In 2019 this was further reduced to 25%. 
In April 2020 things are going to become even tougher as this is set to reduce to 0%.
This is why its so important to have a lettings agent like Capital Heights as we will not pass on charges to you because of other factors in the market as tenant fee bans.

  1. Will new landlord legislation come into force?
There are further changes on the horizon in 2020 for landlords. One of the changes are in legislation surrounding new rules for Energy Performance Certificates (EPC). 
From 1st April 2020 landlords will not be able to let out a private property including existing tenants, that don’t meet the minimum E rating efficiency rules.

  1. How will the political climate affect landlords?
Brexit, Brexit, Brexit. You may have noticed that Brexit is looming in 2020. There may be further legislation changes as the UK exist the European Union.

David Cox, chief executive of ARLA Propertymark, said:

“For far too long, successive governments of all political persuasions have passed significant amounts of complex legislation for landlords.

“As a result, much of this year has dampened landlords’ appetites to invest and expand their portfolios, with many consolidating their assets, or choosing to step away from the sector altogether. This has impacted tenants most, who have restricted supply and have been faced with less choice and paying higher rents.

“Looking ahead to 2020, we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords.

“This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.”

Tenant Fee Ban

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Published: 03/12/2019   Last Updated: 03/12/2019 17:29:37   Author: Capital Heights Press Team    Tags: Tenant Fee Ban, Tenants, Property, Rental Costs


ABOUT THE TENANT FEE BAN
NOTE: This content applies to England only.

What fees can I ask a tenant to pay?

The only payments you can charge in connection with a tenancy are:
a) The actual rent owed on a monthly basis
b) A fully refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above
c) A fully refundable holding deposit which reserves a property, capped at no more than one week’s rent
d) Payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
e) Payments that are related to any early termination of the tenancy when requested by the tenant.  
f) Utilities, communication services (telephone, broadband), TV license and council tax
g) A default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement

What you can’t be charged for:
a)    Referencing
b)    Administration
c)    Credit & immigration checks

If you have been charged a banned fee you can complain to:
a)    Trading standards
b)    A letting agent redress scheme

Trading standards can fine landlord or agent who has requested a banned fee.
A redress scheme can investigate your filed complaint and tell the agent to apologise or compensate you.

Getting a fee back
If you need to obtain a fee back then you can apply to the First Tier Tribunal if you have previously paid a banned fee to your landlord or agent. If the tribunal agrees that it was a banned fee then they have the ability to order the landlord or lettings agent to pay the money back in full. If you require further assistance in applying for a tribunal then your local council will be bale to assist.

If you have signed a tenancy agreement prior to 1st June 2019
The ban on tenant fees will not be applied or upheld if you signed your tenancy before this given date even if your tenancy starts after the date mentioned. This will include charges for the following:
a)    Referencing or credit checks
b)    Admin costs for things like phone calls and postage
You can only be charged for renewing your tenancy after 1st June 2019 if a tenancy agreement signed before that date says you will have to pay a renewal fee.

How much can I be charged?
If you have signed your tenancy agreement before 1st June 2019, then there is no limit in place. However, the lettings agents must make their fee structure known to you on their website and within their premises. This information must include:
a)    The cost of each fee including VAT
b)    What exactly the fee covers
If there is any further information you require then please contact the Capital Heights team on 020 7078 0077 or email us on info@capitalheights.co.uk

Regards,
Capital Heights Press Team.



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Published: 30/11/2019   Last Updated: 30/11/2019 14:59:02   Tags: Section 21, Landlords, Property News, Tenants,

SECTION 21 ABOLISHED – Everything you need to know…
30/11/2019 
Evictions that are executed by landlords that are of no fault of the tenant are now the thing of the past. A law that was brought in by Theresa May has seen Section 21 being abolished.

The Past Legislation

The past legislation allowed landlords to evict tenants at short/limited notice period without having to provide any reason whatsoever.  Pro campaigners for the abolishment of Section 21 have largely welcomed the change that is put in place to better protect private renters. On the other hand, critics of the action claim that this will make it harder for landlords to evict/remove problem tenants through the court processes.  

What is a Section 21 notice?

A Section 21 notice allows a landlord to evict a tenant/renter without providing a valid reason. This section of the 1988 Housing Act can be used to serve an eviction order either after a fixed term tenancy has ended, where there is a written contract, or during periodic tenancy, where there is no fixed end date.
Under Section 21 laws the tenants or tenants must be given at least eight weeks’ notice and those tenants on a periodic tenancy agreement have to be provided with additional time that may be covered by their final payment. The notice provided to tenants by landlords are often used to remove them from the property to either allow them to sell the home or move into it. 
Research carried out by Citizens Advice Bureau indicates tenants who have made some form of formal complaint about a property they live in had approximately a 46% chance of being evicted from it within a 6-month period. This has been further backed by research from the Ministry of Housing, Communities and Local Government with evidence that by ending tenancy agreements via section 21 is one of the biggest causes of family homelessness.

The changes to Section 21

Theresa May pointed out a plan to end the practice of no-fault evictions in England by completely abolishing Section 21. This means that landlords will need a good reason to evict their tenants. These changes have been put into place to create more security and rights for tenants and will essentially assist in creating open ended tenancies.

How will section 21 changes affect landlords?

We can all agree this change is the biggest we have seen in this sector for an entire generation. Landlords will now be instructed to provide a rock-solid evidenced reason for evicting a tenant that is already specified in law. Looking at the other side of the coin, critics have stated that this will make the job of the landlord a lot harder if they wish to evict troublesome tenants.
The National Landlords Association (NLA) stated that Section 21 was in fact becoming “a backstop to overcome the ineffective Section 8 process, where a landlord has to go to court to regain possession when a tenant is in breach of their tenancy agreement, because it is seen as slow, costly and inefficient”.

Furthermore, the NLA states these changes will create hysteria and chaos for landlords across the country. The Government argues that landlords will now have a structured process to evict actual troublesome tenants which in turn will be more effective. The Government promises to expedite court processes so owners can regain properties from tenants swiftly in cases where they have failed to pay rent or damaged the property.

How will Section 21 changes affect tenants?

Tenants are the ones to gain the most out of this change in legislation. It means tenants will no longer have to live in fear of unlawful eviction and being given short notice periods. More importantly tenants won’t be forced to find a new place within just eight weeks’ notice period.

Groups such as Generation Rent have hugely welcomed this important change stating that evictions which are unplanned through the use of Section 21 had forced tenants into debt and added to the rising number of homeless families.

Do you have any updates on this matter? Whether you are a landlord or a tenant we would love to hear your experience.

Regards,
Capital Heights Press Team.

Interest Rate Now The Highest Since 2009

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Published: 02/08/2018   Last Updated: 02/08/2018 14:29:22   Author: Capital Heights     Tags: Bank Of England Rate

The Bank of England has today increased the base rate to 0.75%, signalling the start of the end for a period of accommodative monetary policy.

Today the rate is now at its highest since March 2009, This means several borrowers will not have experienced a base rate above 1%. In fact, more than 2.5 million first-time-buyer mortgages were issued between March 2009 and May this year.

Some who have taken out tracker mortgages, now would be a great time to look into fixing there mortgage to avoid future hikes in your repayments. If you're a first time buyer, it is absolutely worth seeing advice about your borrowing to ensure you secure the best product for your purchase.

If you have any questions on how this or future hikes may affect you, please do get in touch.

see how the interest rates have change over the last 30 years

70% Increase in price of a property in Hackney over 10 years, WOW

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Published: 18/10/2017   Last Updated: 18/10/2017 12:55:03   Author: Capital Heights     Tags: Hackney, City And Canary Wharf Price Growth

Find out how much your property is worth by clicking on the link above. 

London House Prices E1, E2, E3

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Published: 09/05/2017   Last Updated: 09/05/2017 16:40:43   Author: Capital Heights     Tags: London House Prices E1, E2, E3, Valuation

How Much Money Is Tied Up In Your Home


Being in London, demand is high, people would like to move quickly and there is a lot of uncertainty in the industry. However this has not stopped us from selling properties.


Over the last 6 months, we have sold properties across E1 Whitechapel and E2 Bethnal Green areas in a record time. The average time it took to sell a property in March was 47 days, In April it took even less 43 days.


See the graph below, its shows how the average price in your area compared to the current price which has jumped by nearly 50% over a 10 year period.

May Monthly News Letter from Capital Heights

Published: 06/05/2017   Last Updated: 06/05/2017 11:47:33   Author: Capital Heights     Tags: May News Letter, Market Knowledge

May Monthly News Letter from Capital Heights

The price of property coming to market in Greater London is now an average of 1.5% cheaper than this time a year ago, a rate of fall not seen since May 2009. The fall is mainly driven by Inner London, down by 4.2% (-£35,504), while Outer London is up 1.7% (+£9,017). Since last month, asking prices in both Inner and Outer London have fallen, though again it is Inner London with a monthly fall of 3.6% that is dragging the overall average down. Outer London remains broadly flat, down 0.2% (-£1,177) on the month.


The bottom and middle price sectors are holding up better, while the top end is still re-adjusting. Typical first-time buyer properties (two bedroom or fewer) are both up for the month (+1.3%) and for the year (+0.5%).

The typical middle market of “second-stepper” homes (three and four bed properties excluding four bed detached houses) also shows price resilience, both down only marginally month-on-month (-0.7%) and year-on-year (-0.2%).


It is the top of the ladder that continues to suffer. This sector covers asking prices at the top end of the market, with all five bed properties and above, as well as four bed detached houses. The fall of 11.9% this month reflects volatility in one month’s figures in a smaller section of the market, but the annual rate of fall of 7.3% is a more reliable longer-term indicator of the challenges that this sector is facing.


our thoughts, if you are considering selling your property or have your property on the market already, give us a call, we can help advise you on what would be the best price to market your property and what would be the best plan of action to achieve the highest price. We have had a busy March and April and believe this trend will continue this year. 

Published: 10/04/2017   Last Updated: 10/04/2017 17:02:02   Author: Capital Heights     Tags: House Price Inflation, Easter Good Time To Make Offers, Sales, News


Average house prices across the UK in the three months to March were only 0.1 per cent higher than in the previous quarter - and the annual rate of growth dipped to 3.8 per cent, the lowest rate since May 2013. 


The figures come from the Halifax.

“The annual rate of house price growth has more than halved over the past 12 months. A lengthy period of rapid house price growth has made it increasingly difficult for many to purchase a home as income growth has failed to keep up, which appears to have curbed housing demand” says Martin Ellis, the Halifax’s housing economist. 


“Nonetheless, the supply of both new homes and existing properties available for sale remains low. This, together with historically very low mortgage rates, is likely to support house price levels over the coming months” he adds.


Last week, the Nationwide said that house prices had actually fallen in the last month.


Commenting on the Halifax data, north London estate agent and former RICS residential chairman Jeremy Leaf said the figures suggested that house prices should still be rising more rapidly bearing in mind the low volume of transactions and shortage of stock. “In other words, it is not very good news” he warns.


“However, what we have found on the ground is that there is more of a general acceptance that prices are flattening and if people want to move, then Easter is the time to get on with it and be more realistic about making and accepting offers.”


https://www.estateagenttoday.co.uk/breaking-news/2017/4/annual-house-price-inflation-at-its-lowest-for-four-years

New Sales Property in E2

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Published: 27/03/2017   Last Updated: 10/04/2017 17:01:19   Author: Capital Heights     Tags: Bethnal Green Property For Sale, Meath Crescent, Two Bedroom

A perfectly presented, one double bedroom flat set in this wonderful gated development. This property is well proportioned with a lovely and very attractive large living room covering 27ft.

call us on 0207 078 0077 for more information and to book in a viewing 

Old Site

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Published: 27/03/2017   Last Updated: 27/03/2017 17:11:21   Author: Capital Heights     Tags: Capital Heights Old Site,

We write this blog to pay homage to our old site, for many years this site served us well, built our business as well as giving us a real presences on the net. The site made us real contenders within the City and surrounding area.

Our new site goes live on the 28th March 2017. God bless

Brexit

Published: 02/10/2016   Last Updated: 27/03/2017 17:00:39   Author: Capital Heights    Tags: Brexit, What Will This Mean, What Will Happen To London, Capital Heights

The Brexit victory sent economic shockwaves through global markets and UK stocks on Friday had their worst drop since the financial crisis.

But how does this effect us, you and our future. 

We are all in the dark as to what will happen over the next few weeks and months, however we at Capital Heights would like to help you plan for the future.

We not only help our clients with finding tenants for there properties, but we help with the management of their  portfolios, advising them on where to invest and what would be the best properties to  buy.

What happens to the market 

Now we have left the EU, there is an uncertainty that many foreign nationals who live in the UK may have to leave as a result of the potential sticker immigration laws, this would lessen the competition for rental properties and therefore lead to lower rents.  Around 37 % of residents being from foreign – born nationals  and around 11% of this population being from the EU.

Foreign-born nationals are three times more likely to be renters than British-born residents, according to the Migration Observatory.

Brexit may also lead to a reduction in demand for rented homes and may cause a supply crisis in the rental market:

if landlords are unable to afford higher mortgage repayments due to worse economic conditions, they may sell up.

If you would like a free no obligation chat with us with regards to the future of the property market and how we can take advantage, please do get in contact. 


New property for sale in Algate

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Published: 14/09/2016   Last Updated: 14/09/2016 11:29:04   Author: Deepak    Tags: New Property, Capital Heights,

This is our newest property for sale. A three bed home in the heart of east London.
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