Published: 06/01/2020 Last Updated: 06/01/2020 11:56:16 Author: Capital Heights Press Team. Tags: Will Rents Rise In 2020?
- Will rents rise during 2020?
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.
- Will the cost of running a rental property rise?
But there is good news! CAPITAL HEIGHTS WILL NOT BE INCREASING THEIR FEES.
- Will landlord taxes increase?
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.
- Will new landlord legislation come into force?
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.
- How will the political climate affect landlords?
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.”
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:
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 email@example.com
Capital Heights Press Team.
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.
Capital Heights Press Team.
Published: 02/08/2018 Last Updated: 02/08/2018 14:29:22 Author: Capital Heights Tags: Bank Of England Rate
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
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
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.
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.”
call us on 0207 078 0077 for more information and to book in a viewing
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
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.