The End of Section 21: What No-Fault Eviction Reform Really Means for South London Landlords and Tenants

Walk past the lettings boards on Abbeville Road this week and nothing looks any different. But something big has just shifted under all of them. As of the 31st of July, Section 21 - the "no-fault" eviction that has underpinned the private rented sector for the best part of forty years - is history. Every assured tenancy in England is now periodic, rolling month to month, and no landlord can any longer ask a tenant to leave simply because the fixed term has run out.

If you rent in Clapham, Balham or Brixton, that is genuinely good news: your home is no longer on a two-month countdown. If you are one of the many local landlords I speak to, it is the biggest change to how you operate since the tenant fee ban. So let me cut through the noise.

The headline is simple. Fixed terms and no-fault notices are gone. To regain possession now, a landlord has to use one of the specific grounds under the new Schedule 2 - selling the property, moving back in, serious rent arrears, or a breach of the tenancy - and evidence it. Tessa Shepperson's Landlord Law bulletin has been walking through these grounds in detail, and the short version is this: possession is still possible, but it is now a reasoned process, not a rubber stamp.

Here is the bit the national headlines miss. The worry isn't the rule itself - most good landlords in SW London were never chasing people out for no reason. The worry is what it does to supply. Propertymark reported this week that there are now roughly eight renters chasing every available property. Eight. At the same time, Property118 is reporting landlords selling up in numbers, driven by Capital Gains Tax changes, with company incorporations up an eye-watering 1,700% as the ones who stay restructure. Nationwide has rents rising 3.3% over the year even as house-price growth cools to 1.8%.

Join those dots and you get the real South London story. If more landlords take the end of Section 21 as their cue to sell into a flat sales market, the pool of rental flats around the Common shrinks further - and with eight tenants per property already, it is the renter, not the landlord, who feels that most sharply. Fewer homes, more competition, higher rents. That is the opposite of what the reform set out to achieve.

My honest take? This is a good reform wrapped around a supply problem nobody has fixed. Landlords: don't panic-sell. A well-run, well-priced Clapham flat with a good long-term tenant is still one of the most resilient assets you can hold, and the new rules reward exactly that kind of landlord. Renters: the security is real, but the market is tighter than ever, so when the right place comes up, be ready to move quickly and present yourself well.

Are you a South London landlord weighing up whether to stay in or sell, or a tenant trying to make sense of your rights under the new rules? I'd genuinely love to hear where you've landed on it - drop me a line at jeroen@claphampropertyblog.com or call me on 07837 093554.

What can and can't a landlord do in times of a pandemic?

So the question du jour is really - how to comply with our property management obligations (e.g. inspections, gas safety checks, and repairs) while respecting social-distancing and self-isolating tenants...???

Well, in all circumstances non-essential things should be avoided during a lockdown, such as routine inspections. If it's a major thing though like a leak (water or gas) it's best to get it seen to promptly but respect the social distancing guidelines as laid out on the government website. Engineers should be wearing PPE, distance themselves from occupants, and so on.

There's no get-out-of-jail card with expired gas safety certificates, unless you've made a good few attempts and you can't get an engineer in because a tenant is self-isolating and so forth. Keep written records in case of any comeback of course.

Repairs, well same thing really: "landlords remain legally obligated to ensure properties meet the required standard – urgent, essential health and safety repairs should be made" as per guidance on this page.

And what if tenants don't pay? Some have seen this rumour of payment holidays as an excuse not to pay, but thankfully government guidance states that ..."Tenants are still liable for their rent and should pay this as usual."


I think David summarised it all rather nicely with the following in this handy video from Vanessa at Property Tribes.

In summary, landlords need to keep up to speed with the guidance the government is putting out - daily reading is recommended. Act reasonably trying to follow these guidelines and be understanding with tenants who don’t want to allow access (there is a genuine fear factor to consider). If tenants really don’t wish to give access, then just let it slide as long as you have evidence to prove that you have done everything you reasonably could.


Do stay tuned for property investment tips/tricks and updates and by all means do check out the DownToSouthLondon YouTube Channel for entertaining and informative videos to help you invest with confidence! I also offer coaching on a one-to-one basis so if you are looking to get into property investing and require personal guidance then head on over to www.jeroenhoppe.com.

The merits of a periodic tenancy during a COVID Crisis

Well this is a short topic - there’s none!

As my colleague investor discovered when a portfolio he purchased (literally just a week before this all kicked off), statutory periodic tenancies allow a month’s notice from the tenants’ side, so basically it’s left him with a load of empty rooms which he can’t view during the notice period, and likely voids after this lockdown we find ourselves in.

You may need to refer to my previous video slamming periodic tenancies; personally I would never allow a tenant to go periodic because I want to retain control of when my properties might come back to the market. After all, I want the best returns. I want the easiest life, so I choose to let my properties during the peak (in terms of demand and hence price) of the year.

So what happened In this instance? A lot of these properties were let on a multi-let (room-by-room) basis, and as it happened they were initially let on a fixed term which had since expired, so they were are “holding over” on a month-by-month basis. Nightmare scenario for my friend since he received notice for about 6 rooms in various houses. All of these were young (younger than 25) professionals in Clapham and surrounds who found it a wise decision to move back home to their parents. I can’t blame them really, they have to work from home anyway, so their parents’ place is likely to be more spacious and since we can’t go out and see our friends or have to travel in to work it’s a great cost-saving exercise.

What about fixed term tenancies?
Well erm my stance (pro-fixed term) isn’t fool proof. I for one have a few multi-lets where some overseas nationals have returned home because they have no job at all, nor a prospect of finding a job in the foreseeable. I’m talking baristas, cleaners, labourers, retail employees. Thankfully this presents a very small percentage of my portfolio.

What does this mean for the market - bigger picture?
Well for one, all these professionals that have moved home - when life gets back to normal and people need to go back to the office on a daily basis all they will need to move back. Perhaps this will create an even higher level of demand this summer, especially the earlier part? That said a further, and longer-term, gap has been created by the lower skilled demographic, leading to less people in the market overall. However... these two types of tenants are unlikely to be chasing the same (type/priced) property.

So if you are renting out cheap and cheerful to the lower skilled you may well struggle - to get people in for one and secondly at the price that you want; even though historically I’ve found the cheaper it is the quicker it goes, regardless of quality. I think once people in first white collar jobs return the demand in that segment will settle back to normal. As for demand right this second - well it’s lockdown, people just aren’t moving at all really, not even viewing unless they’re absolutely desperate. Longer term, I foresee a significant decrease in demand for the lower end stuff due to the exodus of young, lesser skilled immigrants. This will pick up when the economy starts moving again; when will that be? The building/cleaning trade, retail etc - this will all take time to get going again. People aren’t going to be spending £3 on a coffee that frivolously in times of “austerity.” The word “recession” has already been mentioned on social media frequently, and let’s face it, it’s here - even though a recession is defined as a fall in GDP for two successive quarters.

So what will actually happen is anyone’s guess - I’m sure however we’re going to see demand come back this summer, to what extent is uncertain.

Do stay tuned for property investment tips/tricks and updates and by all means do check out the DownToSouthLondon YouTube Channel for entertaining and informative videos to help you invest with confidence! I also offer coaching on a one-to-one basis so if you are looking to get into property investing and require personal guidance then head on over to www.jeroenhoppe.com.

What can landlords and investors do in times of (Corona) crisis?

Wow, just wow. That’s the feeling I have at the moment. The world, not just the UK, has been taken by storm. Such incredible, drastic measures have never been seen before, with everywhere I look trade has been affected. Restaurants, bars, places of worship; everything has been forced to close and people are banished to their homes en masse. It’s for good reason that I’ve not spoken out as yet, I’m still taking it all in - and the letting landscape is changing on an hourly basis!

What does this mean for you as a landlord?
Financial - Well, for starters your tenants’ employment may be affected. Do they still have a job? Will they be able to pay their rent? I for one have sent out my sympathy to all tenants and asked to reach out in confidence if they have been affected, this to preempt any cash flow issues when mortgages need to be paid. To further preempt I have asked all my mortgage lenders for a payment holiday just in case I will need it further down the line, this to buffer my cash flow. I have received criticism for these in my circles, and really I noticed that people fell into two camps: on one hand they said I should use my own reserves to buffer any losses, and on the other hand some felt that the banks may as well buffer the cash flow, you’re paying for it after all (interest is added to the loan). I chose the latter because a)I don’t know what’s around the corner (tenants that are paying today may not do a month down the line and b)after hundreds of thousands of pounds of down valuations I’ve experienced I feel it’s the least the banks can do for me.

Repairs - I’ve knocked this down to bare essentials to comply with my obligations. Only drastic leaks and so on will be seen to, loose door handles will have to wait (and if you know me I will direct them to a screwdriver anyway)! Heating, hot water and so on are a priority, nothing else. We have since last week had some guidance as to gas safety certificates and the like - basically for the contractors to use social distancing measures- the tenant to stay in another room and so forth.
Communal cleaning on properties that I manage has been suspended to avoid unnecessary contact, as well as inspections.
Check-ins for new lettings are going to be done wearing protective gear and as remotely as possible the show must go on to some extent, but safety first. Government guidance insists that moves are kept to a bare minimum.

Longer term effects
Not just will tenants potentially lose their jobs today or tomorrow, trade will suffer massively as we enter into a large scale economic slowdown. We have only just started to see good movement return after the stamp duty surcharges and countless other things we’ve seen destroy the housing market (ahem, Brexit). Any business offering products and services that people don’t use as often when they have less disposable income - new cars, restaurants, luxury goods like watches, tailored suits (don’t need those when working from home!) will suffer for a long time yet. What about all the people employed in those sectors; they could be your tenants. They will have to pivot to another sector, but with little disposable income retail will suffer, the list is endless. In short, people with a job today aren’t certain of a job in 2-3 months’ time. Less disposable income will mean that rents are likely to come down also, landlords will be competing for those in employment as they become less abundant.

What can I do in the short term?
As mentioned above, I recommend that you have a safety cushion - if you feel that your reserves are lower than your risk tolerance allows then do apply for a mortgage holiday if that makes you feel more comfortable; do know that this will increase your payments slightly over time as the interest is added to the loan.

Speak to your tenants, ensure that they are happy and ask them to let you know straight away if your situation changes, giving you as much time as possible to plan things. Chances are they will be able to find a new job eventually, just realise that them playing catchup will be difficult. If you do have a guarantor in place then it’s worthwhile contacting them in order to talk about paying the rent for the person they’re guaranteeing. A fellow colleague investor has had a few tenants give a month notice (they were on a periodic tenancy, something I don’t advocate but that’s for another blog post!) and go home to their parents, leaving him with many voids - I suspect that “normal” level of moves won’t return overnight. I’m curious to see what will happen in the usual August/September rush!

So in summary, communication is the key! There’s more resources available online from RLA - https://news.rla.org.uk/coronavirus-frequently-asked-questions/ and widely on google. I don’t claim to be an expert in this new minefield we find ourselves in, but the key is to act with common sense and practicality in mind. Tenant can’t pay? Work out a payment plan. If they leave reletting will be tricky. Repair? Essentials only like gas safety and leaks. And so forth.

I hope you found that a useful update! Do stay tuned for property investment tips/tricks and updates and by all means do check out the DownToSouthLondon YouTube Channel for entertaining and informative videos to help you invest with confidence! I also offer coaching on a one-to-one basis so if you are looking to get into property investing and require personal guidance then head on over to www.jeroenhoppe.com.

Comparing returns on your investments - Savings, ISAs or property?

Wow it's been a whirlwind of a month. Those of you following me on LinkedIn and Facebook will no doubt have kept abreast of the various property meetings I've been going to. I've discussed at length people's strategies when it comes to getting good returns, and I must say that there is a very wide range of investments returns that people are happy with (all dependant on the risk involved).

One key thing that came up is that none of the people I spoke to considered the "rate of payback" on their investment. By and large all of them worked on the presumption that having assets was the most preferable strategy - this is why they came to talk to me in the first place, primarily because of my asset-heavy investment strategy. My desired period of holding a property is of course, forever!

Let's however consider a few things. I had mentioned in a previous post that there are various options when investing in property - it doesn't have to be by purchasing assets per se; these are, in London, often prohibitively expensive so that strategy doesn't suit everyone. However let's assume for the sake of comparison that there is £120,000 to invest and that the risk profile of the investor is OK with using leverage to increase returns.

I've made a few assumptions of course:

1. The investor is happy to purchase an HMO style property such as one of the ones I've purchased in the last few years (refer to previous articles to read more).

2. The investor is not remortgaging at the end of the initial term to release more capital (doing so will dramatically increase returns but it gives rise to too many variables and falls outside the scope of this article).

3. I've assumed that the 15 years AFTER the Savills 5 year forecast on which I relied is a bit more optimistic (not much though) at 5% per 5 years growth. I think we can all agree that normality will return to the UK housing market after the politicians have cleared up their Brexit mess (according to Savills this will take 5 years) so my predictions should be conservative.

4. I have not factored in any increase in rents over the period. Naturally this would be by at least the rate of inflation, and in London I foresee a 5-10% year on year increase in areas of good demand. Therefore returns in reality could (and probably will be) greater than I've put on paper.

5. The Return on Capital Employed figure I use for my investments is 20% so our hypothetical property investor gets this as well. That's return on money in the deal after all expenses, so invest £120k, get £24k net before tax.

6. The rental income starts coming in at month 6, assuming some building work, refurbishment and some void for getting it dressed. Again, in practice this is much quicker but let's be conservative.

Now - returns in residential property that I propose are dictated by two things: rental income and capital growth. The latter of which can only be realised upon sale, but it can also be leveraged by drawing down some of the equity by means of remortgaging. As mentioned let's keep it slightly more simplistic: Investor parks £120k in a property and pays for a managing agent to do the repairs/maintenance/running around so it's by and large as passive as putting the money in a savings account (well, as close to that as property will get).

So the numbers: Here is what Savills says will happen with capital values over the next 5 years. They don't have a crystal ball, but let's assume by and large they are right.

Source:https://www.savills.co.uk/insight-and-opinion/research-consultancy/residential-market-forecasts.aspx

Here you have it... comparing some other forms of (perhaps shorter term) property-based investments you can see that a buy to let property really outstrips any sort of investment.

Key takeaway though is that the penultimate row of the table shows that if you hang on to the property and you do not dispose of it or refinance your return on capital will never quite reach your target of 20% per annum - especially the first year where you had significant outlay/costs and you only started receiving rent after 6 months, thereby cutting your returns in half for that year. This all changes drastically of course if you refinance after your initial term, which in the current climate I would probably recommend to be 5 years. Although the market may have only risen 4.5% on average the fact that you bought cheap and added value will raise the property's value to a point where it becomes worthwhile to extract some capital. This capital extraction means that your returns will go up in this investment, and although it won't be enough (on its own) to purchase another property you can diversify and use another investment vehicle to get better returns overall.

So.... is buy to let for you? Perhaps. Bear in mind it's a long game - it's not as passive as putting money in the bank, no - but under the right circumstances you can make healthy returns - very healthy when leveraging. If you are interested in talking further then please reach out via email and start the conversation. I have helped dozens of clients over the years and demonstrated that great returns are possible in South London - what are you waiting for? 

Investing Tips - Video 17/30 - Qualifying Tenants

Have you ever done a viewing with a tenant and left facepalming yourself? Surely it's easy to remember to ask them about move date and whether they can afford it? WRONG! We all forget to do the basics sometimes but here's a video that will help!

Some may say I can sniff out a good deal. Well perhaps. If you want to know about every good buy to let property that comes my way then REGISTER HERE! My company WeSourceLondon.Properties will deliver turnkey investments straight to your inbox. I'll source. I'll manage the brokers, solicitors, builders and ultimately get the property let and managed for you at a preferential rate. But it all starts here!

Video 15/30 - All About Notice Periods

How much notice do you need to give your tenant? Vice versa? Well here's all about notice periods and how you can use them to your advantage.

Remember, if you want to learn more about property investing join me at this month's Clapham Property Meet and have a chat in person.

You need to know this if you're letting a property in Clapham (or elsewhere)

Here we go, another regulatory update. You will, as a savvy investor and landlord, know about the various bits of paper that you need to give your new tenants upon move-in. Alas this list is an ever-changing one! This month the government has launched an updated version of the "How To Rent" booklet.

In the know

(Before move-in/signing tenancy agreement you must give the tenant(s) a copy of: (and make sure they are either a pdf via email or hard copy, NOT a link)

1. EPC

2. Gas safety certificate (in date of course and it must be valid for 1 month after the date of move-in)

3. How To Rent Booklet which you can download here

4. Tenancy Agreement

Post Move-in

5. Inventory and check-in report

6. Deposit registration information (within 30 days)

Here are a few important notes:

• Take special care that you give them an updated version of the HTR booklet (link above)
• They must have seen the EPC (and if you are letting after 1st April 2018 your property must be rating E or above) before signing the tenancy agreement (so that they will have time to ascertain their outgoings based on the energy efficiency of the property)
• Not giving the tenant(s) any of the above documents prejudices your position when seeking possession of the property, so make sure that your paperwork is in order!

So there you have it, a brief list of the documents that you need to give your new tenant(s) before they take possession. Make sure that you are complying in order to prevent problems further down the line. If you'd like to read more articles head over to www.claphampropertyblog.com. If you'd like to join me and other local investors for a nice social evening of property come along to the Clapham Property Meet! Hope to see you soon.

5, no, LOTS of Reasons why you should NOT let your property in Clapham using Gumtree

Honestly I could write a book about this. Time and time again through my agency career I would have landlords calling me, desperate for advice after they've placed a "lovely" tenant in their property using a free (or low costs) DIY advertising website. The tenant presented themselves as honest, open, and above all very capable of paying the rent.

But the truth is a different matter. They got into the property by deception, and ended up costing these landlords thousands of pounds in damages, unpaid rent, and above all stress. These landlords had to cover the mortgage whilst funding the legal battle. One made very difficult because they weren't aware of all the legislation surrounding lettings. This could prejudice their position in court. Didn't serve the Prescribed Information? Didn't register the deposit within 30 days? That means the tenant could actually sue YOU for 3 times the deposit amount! And there's more...

It has been said that some 30% of the PRS is made up of accidental landlords (Source: Landlordnews.co.uk). Here lies the problem. As an accidental, or amateur (not a bad thing!) landlord, it is unlikely that they invest the time to make themselves aware of all the legislation surrounding lettings. There is a lot, but as the saying goes "you don't know what you don't know," so most are blissfully unaware - until it goes wrong, and they can do with disastrous consequences!

If you saw last night's episode of "Nightmare Tenants, Slum Landlords" on Channel 5 then you will know more. Paul Shamplina, Director of Landlord Action advocates against using such sites. I say there is a time and a place for DIY platforms. After all, there are certainly elements of the process you can do yourself - IF you are able to dedicate the time to it. After all, opening a door and doing a viewing can cost very little time and effort if you are local. If you need to travel from work to the property in Clapham and then back to your home in Finsbury Park after work it could become a very tiring process, especially factoring in the inevitable no-shows. 

There are certain elements of the process, and depending on which you can do, you can choose a service to suit you.

Presentation

This is the first hurdle where most people fail. Miserably. The average rent in Clapham is £1750pcm, or £21,000 per annum. I would suspect that if you are looking to part with over £20,000 then you would expect to see something immaculately presented and shiny. Like a car. Ever seen a dirty car in a showroom? No? I wonder why. Let's compare and contrast with letting your property. iPhone photos will not do. Unmade beds? No. In order to achieve the best result (best price in the shortest space of time with the most enquiries, viewings and offers to choose from) you want to present the property to the best of your ability. Present well, clean, and use a professional photographer. I can highly recommend a few that are reasonable and will do all the digital editing required. An investment of £100 goes a long way, if you achieve £2 per week more rent then it's paid for itself. And remember the photos last for a good number of years, you don't need to redo them.

Marketing

Where are you likely to attract a professional tenant for your £20,000 a year property? Not in a free advertising site like Gumtree that is impossible to navigate, sort any meaningful way and so forth. You want to get on Rightmove and/or Zoopla. These two portals is where 95% of home movers look. That's where you want your property. Any good quality agent will be on both of these. Beware of agents that are NOT on both of these in favour of a third platform called Onthemarket.com. In essence they are trying to compete with Rightmove and Zoopla but failing miserably and they don't want to admit it. Tenants on the whole don't look here, advertise elsewhere.

Price

This is key. Whatever you may think, it is unlikely that your property is the best property in Clapham. Harsh but true, there will be better properties out there. A good look on Rightmove and Zoopla will give you an idea of prices. Talk to a local agent that you respect - do they have good quality properties? Well-presented? Good photos? They probably know what they are doing, speak to them. And price competitively, you want it to let after all. Time is also key. If you start advertising 60 days in advance and you think "well, I'll start high because I have time" then you may miss out on those excellent tenants who plan ahead. A lot of landlords I know tend to drop their asking price with 3 weeks left on the tenancy because they know that is roughly when it really comes down to decision time for most. And indeed my experience tells me that tenants tend to make their decision 2-4 weeks in advance. I have, however, let properties long in advance but they tend to be 1bed apartments where the more organised of the couple (tends to be the female) would like to plan ahead. So they price ambitiously for 4 weeks to have satisfied themselves that they have "tried to get a better price." But what if they've missed out on an organised tenant? After all, do you want someone who makes last-minute decisions? I personally would rather have someone that is organised.

Legals

Do you know about deposit registration? Tenancy agreements? (no, not the ones downloaded for free off the internet) Repairing obligations? Gas Safety Regulations? EPC regulations? Right to Rent checks? These are just some of the things that you need to do when placing a tenant. If you don't, you could find yourself in a spot of bother. When you serve a Section 21 notice (a notice to end the tenancy) you will find that the notice is INVALID if you haven't sorted all the aforementioned! Having a professional estate agency take care of this is invaluable. A few % commission takes care of all the viewings, paperwork, legwork and numerous phone calls that comes with letting a property.

Viewings

Linking back to the beginning, time is money. If it takes you 2 hours to carry out a viewing (adding in travel) and you need to do an average of 15 viewings the 30 hours you spent to save some money becomes less valuable. Add in the legal paperwork, referencing, right to rent checks and so forth you are probably talking closer to 50 hours of your work. Say you earn £80,000 per annum. Divide by 52 weeks and 40 hours and you're earning about £40/hr. 50 hours = £2000ish. I'd argue it's worth paying a professional agent that to benefit from their time, expertise, knowledge and near guarantee of a better result.

So to summarise - free (or low cost DIY) advertising websites are fantastic for getting rid of an old desk or sofa, probably not the place to advertise for the professional tenant you want for your rental property. They are possibly professional scam artists. And they know who to target. Do you know how to avoid them? Do you have systems for referencing? Can you afford to have them know more than you, and take advantage? I certainly can't. There are many great resources you can use to educate yourself, such as joining the RLA (I have a referral code, email me for a discount) and reading blogs and listening to podcasts, but unless you immerse yourself in it fully you are likely to miss things. I've been in property in South London for nearly 15 years and I know what a minefield it can be. If you would like help and advice on letting your property in South London then get in touch via email or come down to the Clapham Property Meet on 28 March and let's talk property.

£400,000 fine for non-compliance. Are you complying when you are letting your property in Clapham?

Another day, another news article about a rogue landlord. They seem to be plentiful these days. Here's the latest one:

Click here for the article

I'll save you clicking through. In a nutshell, Mr. Landlord chopped up a house into flats and rented them out, despite planners at the council telling him "no, no no." So they took him to court and he was fined £30,000 and his rents and proceeds of £382,000.

Ouch.

That's a fairly extreme example, and let's face it - this particular landlord was a bit audacious ignoring the planners and proceeding anyway. Some say he had it coming, or so the reporters want you to believe for journalistic effect.

Relevance to your letting? A lot really. It just goes to show that landlords are being fined and punished for non-compliance. We have seen a lot of legislation change over the years, I've listed below a few examples with their penalties for non-compliance

Year	Legislation	Penalties
2008	Housing Act 1988 (amended 2008) - Deposit Registration	3x deposit amount and Section 21 can't be used to evict tenants
2014	Immigration Act 2014 - Obligation for landlords to check immigration status of tenants	Fine up to £3000
2015	Smoke and Carbon Monoxide Alarm (England) Regulations 2015	Fine up to £5000
2015	HSE revised Approved Code of Practice (ACOP) 'Legionnaires' disease	Fine up to £20,000

So as you can see, a lot is happening in the lettings sector. This is just a pick of the bunch, there will be more of course. So as a landlord it's important to comply. In addition to these regulations there will be restrictions from your lender as to what type of tenant you can let to (an how many), if you have a leasehold property there will probably be more restrictions - you may not be able to change the interior walls of the property without consent, paint the windows a different colour and so forth - you may not even be able to let it at all without asking parental - ahem - freeholder consent.

Fall foul of these regulations and plead ignorance all you like, it won't be a valid defense. You will more than likely have given some thought to handling some elements of the letting process yourself. But truth be told, when there's fines of £20,000 at risk along with the fact that you can't ask tenants to leave if you don't handle the paperwork to the letter of the law, why risk not getting a good managing agent on board to look after your compliance. It's a good insurance policy to have.

Your agent should be a competent, ARLA and NAEA qualified and member agent. They will be up to speed with the latest legislation and therefore offer you good value. In addition they will be able to help you get the most from your investments. After all, you have property in order to benefit you financially. With a little boost from good advice you may just be able to retire that little bit earlier, or buy that next property which will yield you another £500-£1000pcm. If you like the sound of that why not drop me a line: jeroen@claphampropertyblog.com and tell me what you would like to achieve. I help you get there.

So…. We’re deregulated now!

Tenancy deposits, and the adherence to the rules thereof, remains a headline topic these days. It can be a minefield! Anyone who’s heard someone talk sensibly will have heard of the “Superstrike vs Rodrigues” Case. What? Ah yes, that one…

In a nutshell if the tenancy started before April 2007 (when all these laws came into force) so the deposit wasn't protected. What happened was the court ruled the deposit should have been protected when the tenancy renewed. The court had, at the time, interpreted this as a new tenancy. Rightly or wrongly at the time, this had massive implications on every tenancy that was holding over or renewed by means of fixed term extension in the whole country! Every landlord for every running tenancy would have had to reserve the “prescribed information” (set of particulars to confirm certain details like who the landlord is and where the deposit is kept etc) upon each renewal. So every 6 or 12 months, however long the extension was for, or upon the fixed term lapsing and it becoming a statutory periodic tenancy.

“So what?” I hear you thinking… well here’s what – if you didn’t comply with these regulations to reserve the prescribed information bits and pieces you wouldn’t be able to serve S21 notice on the tenants (so you can’t make them move out). What’s worse is the tenants could sue mr. landlord for 3x the deposit amount because, even if it was registered correctly at the time of the tenancy starting, if the prescribed information wasn’t reserved it all went out the window…

"NIGHTMARE" I hear you say... Thank goodness for the Deregulation Act 2015 which fixes all these things, and then some. Read all 250plus pages of glory here if you like: http://www.legislation.gov.uk/ukpga/2015/20/pdfs/ukpga_20150020_en.pdf. To be fair only 20 points out of the 116 relate to property, but that’s still a lot to take in.

Or allow me to summarise:

• New Section 21 Notice - There will be a new prescribed notice available from this date onwards.  You will be able to download it from the Court website.
• If there is no Energy Performance Certificate or valid Gas Safety Certificate on the property, a landlord will not be able to serve a Section 21 Notice until this is rectified.  
• To prevent a landlord evicting a tenant who has complained about the condition/disrepair of the property, a landlord will no longer be able to serve a section 21 notice if the tenant has previously complained about the state of repair.
• Landlords are not under obligation to re-serve the PI nor re-register the deposit upon every renewal of tenancy or change from fixed term to statutory periodic at present.

So, all in all good changes for good landlords!

Remember if you want to talk property or run a new purchase by me please do so: I’m on 020 3637 4474 or email: jeroen@claphampropertyblog.com. 

Hot Property in Cold Weather

What has the lettings market of 2015 told us thus far?

We have found in the past that January was an extremely busy month. Up until 2013 we would say it was the busiest month of the first two quarters. This was driven by relationships made and broken over Christmas and New Year’s resolutions to find a new home. We found that one and two bedroom properties were most popular in the early part of the year leading up to Spring.

2014 and 2015 have been different. A different trend is emerging.

This year and last we have noticed that there is a much higher demand for three and four bedroom homes. These offer a lower rent per person and are being snapped up quicker than they would have been a couple of years ago. I feel the main contributing factor is that tenants are now looking for bargains to minimise their spend on rent every month. This has also led to more and more tenants pairing up through on room share sites and through flat-mating events (equivalent of speed dating for a flat mate, could lead to romance - who knows?). in summary the cheaper one and two bedroom flats will still let relatively quickly but any landlords looking to achieve a large rent increase will have to be a little more realistic or may end up being left disappointed with an unexpected void period!

And so we conclude… 2015 so far has left us hunting for bigger properties!

Excellent, a high yielding 3bed maisonette in Stockwell SW8/SW9 Borders

I came across this one this morning and it is absolutely beautiful. Financially of course. A three bedroom, split-level, maisonette in Stockwell. We have had similar properties in the past, which have achieved offers in excess of the asking price simply due to high yield. To see one available at this price is excellent, and certainly deserves attention at this price. With an asking price of £279,950 and an estimated rental of £450pw it works out to 8.4% gross yield at asking price.

Interested yet?

Remember if you are looking at this investment, or others, feel free to drop me a line either here on the blog or privately via email on jeroen@xandermatthew.com or give me a ring on 020 3397 2099.

http://www.rightmove.co.uk/property-for-sale/property-50225552.html

Buy-To-Let bargain

Just a quick one from me today - blog followers will remember this three bedroom flat in Camberwell from a couple of weeks ago. 

http://www.rightmove.co.uk/property-for-sale/property-49183244.html

The asking price has now been reduced from £335,000 to O.I.E.O £300,000. This represents a potential rental yield of up to 6.7%, a great opportunity for any buy-to-let investor. 

If you're a landlord or developer who's spotted a property with investment potential, email the web link to jeroen@xandermatthew.com and I'll be happy to give you my opinion. 

Buy-to-let with 6%+ yield

Something a bit different for the blog today, as it's the first time I've posted a property that's on the market with my own agency! Trust me, if you're a buy-to-let investor it's worth a look. The property in question is a three bedroom ex-local authority flat on the market with an asking price of £335,000, and is available chain free for a prompt sale.

http://www.rightmove.co.uk/property-for-sale/property-49079678.html

With three good sized double bedrooms and a large reception room, it would be an ideal home for professional sharers. Located in Camberwell SE5, the property is within easy walking distance of several stations as well as Kings College Hospital. It could be expected to rent for £390 per week, offering a 6% yield at asking price.

Thinking of buying, selling or letting? Why not ask my opinion with no obligation? Email me in confidence at kevin@xandermatthew.com or call me on 020 3397 2099.

Update on Queenstown Road period flat

Eagle-eyed blog followers will remember me telling you about this 3 bedroom period flat a few weeks ago http://claphamproperty.blogspot.co.uk/2014/10/period-flat-with-excellent-capital.html

http://www.rightmove.co.uk/property-for-sale/property-48777956.html

In the last 24 hours the asking price has been reduced from £565,000 to £535,000, offering a rental yield of 4.4%. The demand for period properties, ongoing regeneration of Nine Elms, and the Northern Line extension to Battersea all bode well for future capital growth prospects, and this is where you'll really see a return on your investment. 

To maximise your future profit I'd suggest testing the water with an offer below the £500,000 stamp duty threshold.

If you're thinking of buying, selling or letting and want a second opinion with no obligation, give me a call on 020 3397 2099 or email kevin@xandermatthew.com.

The best ex-local flat I've seen in a while. A stunner

Those were the words of one of my colleagues in the lettings department when he came across this property this morning. I'd have to agree.

http://www.rightmove.co.uk/property-for-sale/property-48961985.html

At almost 1,000 sq. ft. with three good size double bedrooms, a study and large reception room all finished to an excellent standard, this Brixton flat would make a superb home for professional tenants. The block itself is well maintained, as is the surrounding area, and lies just 400 yards from Brixton tube (Victoria Line). 

Available for offers in excess of £375,000, the flat would fetch £475 per week in the current rental market offering an attractive yield of 6.6%. 

If you're thinking of purchasing a buy-to-let or development property then why not ask my opinion with no obligation? Email me in confidence at kevin@xandermatthew.com or call me on 020 3397 2099.

How much? £144,000 annual salary needed to buy in Wandsworth.

I came across this article in The Wandsworth Guardian this morning and thought it was worth sharing. In order to buy an average Wandsworth property, an individual or family has to earn an annual household income of £143,534. 

Northcote Road in Battersea

The stats are perhaps slightly exaggerated. In the current sales market the average buyer usually has a deposit considerably higher than the 5% quoted, often supported by The Bank of Mum and Dad who worry that it's a case of "now or never" for their child to get on the property ladder. Regardless, the figures are still staggering.

The good news for buy-to-let landlords is that with more and more young professionals and families resigning themselves to renting for the foreseeable future, there are excellent opportunities for both high rental yield and capital growth. If you come across a property that interests you on Rightmove or Zoopla, send the link to me at kevin@xandermatthew.com and I'll be happy to give you my honest opinion. 

Location, Location, Location

Moments from Stockwell tube (Northern and Victoria lines), this 2 double bedroom apartment would be ideal for a first time buyer or buy-to-let investor.

http://www.rightmove.co.uk/property-for-sale/property-46850578.html

The property is listed with LudlowThompson for £350,000. Having recently been refurbished, and available chain free, a quick sale seems likely. Two double bedrooms so close to the tube will catch the eye of good quality professional tenants who would expect to pay up to £1,600pcm in the current rental market, offering a 5.5% yield at asking price. 

Thinking of buying, selling or letting? Why not ask my opinion with no obligation? Feel free to email me in confidence at kevin@xandermatthew.com or call me on 020 3397 2099.

Low rise Brixton flat offering high rental yield

This split-level four bedroom flat in Brixton Hill is available for offers in excess of £350,000. In a similar location to Wednesday's blog entry (http://ow.ly/Dhwmk) it offers four good size bedrooms, a reception room and a well designed kitchen and bathroom.

http://www.rightmove.co.uk/property-for-sale/property-48774170.html

Whilst it is around 200 sq. ft. smaller than the New Park Court property, it comes with a much lower asking price and judging by the photographs, appears to be immaculate inside. The property would achieve a minimum of £500 per week in the current rental market offering a whopping 7.4% rental yield if purchased for £350,000. 

Thinking of buying, selling or letting? Why not ask my opinion with no obligation? Feel free to email me in confidence at kevin@xandermatthew.com or call me on 020 3397 2099.