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5 Key Policies That Will Impact Landlords in the UK Under a Labour Government

As a landlord in the UK, staying informed about potential policy changes under a Labour government is crucial. These policies can significantly influence your property management, financial planning, and overall business strategy. Here are five key policies that are likely to have the biggest impact on landlords:

1. Rent Control Measures

Policy Overview: Labour governments often advocate for rent control to ensure housing affordability. This can involve capping rent increases, setting maximum rent levels, or implementing rent freeze periods.

Impact on Landlords:

  • Income Limitation: Caps on rent increases can limit potential rental income, affecting profitability.
  • Market Stability: While potentially reducing income, rent control can lead to a more stable and long-term tenant base, minimizing turnover and vacancy rates.

2. Enhanced Tenant Protections

Policy Overview: Labour is likely to introduce stronger tenant protection laws, including more rigorous regulations around evictions and tenancy agreements.

Impact on Landlords:

  • Stricter Eviction Processes: Landlords may face more stringent requirements for evicting tenants, necessitating clear documentation and adherence to legal procedures.
  • Tenant Stability: Stronger protections can lead to longer tenancies and reduced turnover, promoting stability in rental income.

3. Increased Property Taxes

Policy Overview: To fund public services and address wealth inequality, Labour might increase property taxes, particularly on high-value properties or those generating significant rental income.

Impact on Landlords:

  • Higher Expenses: Increased property taxes can reduce overall profitability and necessitate adjustments in financial planning.
  • Need for Financial Strategy: Landlords will need to work with financial advisors to optimize tax strategies and manage increased costs effectively.

4. Wealth and Inheritance Taxes

Policy Overview: Labour may introduce or increase wealth and inheritance taxes, targeting high-value property portfolios and estates.

Impact on Landlords:

  • Long-term Financial Planning: Higher taxes on property wealth and inheritance could impact estate planning and long-term financial strategies.
  • Advisory Needs: Engaging with financial and legal advisors to mitigate the impact of these taxes will be essential.

5. Affordable Housing Initiatives

Policy Overview: Labour is likely to focus on increasing the supply of affordable housing through incentives for new construction and regulations to encourage affordable rental rates.

Impact on Landlords:

  • Market Competition: An increase in affordable housing supply could heighten competition in the rental market, affecting demand for existing properties.
  • Opportunities for Expansion: Incentives for developing affordable housing can present opportunities for landlords to expand their portfolios and benefit from government support.

Preparing for the Impact

To effectively navigate these changes, landlords should consider the following steps:

  1. Stay Informed: Keep abreast of policy developments and proposed changes to anticipate their potential impact.
  2. Financial Planning: Collaborate with financial advisors to develop robust tax and investment strategies that align with new policies.
  3. Legal Compliance: Ensure compliance with enhanced tenant protection laws and regulations to avoid legal issues.
  4. Sustainable Practices: Consider investing in eco-friendly property upgrades to meet potential new environmental standards and attract environmentally conscious tenants.
  5. Market Adaptation: Adapt to market changes by exploring opportunities in affordable housing development and adjusting rental strategies to maintain competitiveness.

By staying proactive and informed, landlords can successfully manage the challenges and opportunities presented by a Labour government’s policies. If you have any questions or need further advice on how to prepare, please feel free to reach out.

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From Renting to Owning: 100% Mortgages for First-Time Buyers Shake Up the UK Housing Market

Hey there, aspiring homeowners! There’s a lot of exciting talk today surrounding 100% mortgages and how these could help you get the keys to your very own home! As always, there’s 2 sides to these products so we’ve put together this blog post to help you make an informed decision.

 

The Pros of 100% Mortgages:

 

  1. A Gateway to Homeownership:

Imagine this: you’re a hopeful first-time buyer, diligently paying your rent while longing for a place to call your own. With 100% mortgages, your dreams may become a reality. These mortgages eliminate the need for a substantial deposit, making homeownership more attainable for those struggling to save while covering their rental expenses.

 

  1. Revitalising the Housing Market:

The introduction of 100% mortgages could breathe new life into the post covid housing market. As more first-time buyers take advantage of these mortgages, the demand for properties will surge, leading to increased activity in the property market. This uptick in transactions can stimulate economic growth and create a ripple effect throughout the market.

 

The Cons of 100% Mortgages:

 

  1. Potential Risk for Lenders:

While 100% mortgages offer a lifeline to eager first-time buyers, they present potential risks for lenders. With no deposit as a safety net, borrowers may be seen as higher-risk applicants. In the event of a downturn in the housing market, lenders could face a greater likelihood of defaults or negative equity situations, causing financial strain.

 

  1. Inflating House Prices:

The surge in demand fuelled by 100% mortgages could inadvertently contribute to rising house prices. As more buyers enter the market, competition intensifies, driving up property values. This scenario creates a catch-22 situation for first-time buyers, as the initial affordability boost may be offset by inflated prices, making it difficult to climb onto the property ladder.

 

The Impact on the UK Housing Market:

 

  1. Enhanced Market Fluidity:

With more first-time buyers joining the ranks of homeownership, the UK housing market is likely to experience increased fluidity. Properties that were previously stagnant in the rental sector may now find willing buyers, allowing the market to adjust and properties to change hands more frequently.

 

  1. Potential for Housing Bubble:

While 100% mortgages have the potential to invigorate the housing market, there is a concern about the formation of a housing bubble. If demand significantly outweighs supply, property prices could skyrocket to unsustainable levels, posing a risk to both buyers and the overall stability of the market.

 

If you would like to talk about how a 100% mortgage could help you buy your first home, get in touch!

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Rental Reform Update For Brighton & Hove Landlords

UK Government set to introduce the Renters Reform Bill to Parliament next week

4 Minute Read

 

 

Housing Secretary Michael Gove has announced that the long-awaited Renters Reform Bill, first promised in 2019, will finally be introduced to Parliament next week. Although precise details of the Bill have not been released, it is expected to have a new name, reflecting the objectives of the government’s own White Paper on rental reform, which was released 11 months ago.

 

 

The White Paper contained a 12-point plan of action aimed at improving the private rental sector. The government’s mission is to create a Private Rented Sector that meets the needs of the diverse tenants and landlords who live and work within it. 

 

Here is a summary of the key points outlined in the plan:

 

1. The government aims to halve the number of non-decent rented homes by 2030 and require privately rented homes to meet the Decent Homes Standard for the first time. This will give renters safer, better value homes and remove the blight of poor-quality homes in local communities.

 

 

2. Quality improvements will be accelerated in the areas that need it most. Pilot schemes will be run with a selection of local councils to explore different ways of enforcing standards and work with landlords to speed up adoption of the Decent Homes Standard.

 

 

3. The government will abolish Section 21 ‘no fault’ evictions and deliver a simpler, more secure tenancy structure. A tenancy will only end if the tenant ends it or if the landlord has a valid ground for possession, empowering tenants to challenge poor practice and reducing costs associated with unexpected moves.

 

 

4. Grounds for possession will be reformed to make sure that landlords have effective means to gain possession of their properties when necessary. Landlords’ ability to evict those who disrupt neighbourhoods through antisocial behaviour will be expedited, and new grounds for persistent arrears and sale of the property will be introduced.

 

 

5. Rent increases will only be allowed once per year, the use of rent review clauses will end, and tenants’ ability to challenge excessive rent increases through the First Tier Tribunal will be improved to support people to manage their costs and to remain in their homes.

 

 

6. Tenants’ ability to hold their landlord to account will be strengthened, and a new single Ombudsman that all private landlords must join will be introduced. This will provide fair, impartial, and binding resolution to many issues and be quicker, cheaper, and less adversarial than the court system. The government will also consider how to bolster and expand existing rent repayment orders and enable tenants to be repaid rent for non-decent homes.

 

 

7. The government will work with the Ministry of Justice and Her Majesty’s Courts and Tribunal Service (HMCTS) to target the areas where there are unacceptable delays in court proceedings. Mediation and alternative dispute resolution will be strengthened to enable landlords and tenants to work together to reduce the risk of issues escalating.

 

 

8. A new Property Portal will be introduced to make sure that tenants, landlords and local councils have the information they need. The portal will provide a single ‘front door’ for landlords to understand their responsibilities, tenants will be able to access information about their landlord’s compliance, and local councils will have access to better data to crack down on criminal landlords. The government also intends to incorporate some of the functionality of the Database of Rogue Landlords, mandating the entry of all eligible landlord offences and making them publicly visible.

 

 

9. Local councils’ enforcement powers and ability to crack down on criminal landlords will be strengthened by seeking to increase investigative powers and strengthening the fine regime for serious offenses. The government is also exploring a requirement for local councils to report on their housing enforcement activity and wants to recognize those local councils that are doing a good job.

 

 

10. The government pledges to make it illegal for landlords or agents to have blanket bans on renting to families with children or those in receipt of benefits. This is a significant step towards creating a more inclusive rental sector and reducing discrimination against vulnerable groups. The government also plans to improve support to landlords who let to people on benefits, which will reduce barriers for those on the lowest incomes.

 

 

11. The government plans to give tenants the right to request a pet in their property, which the landlord must consider and cannot unreasonably refuse. This move will be welcomed by pet owners who often struggle to find rental accommodation that allows their furry friends.

 

 

12. An innovative approach to passport deposits. The government will work with industry experts to monitor the development of market-led solutions to passport deposits. This move will help tenants who struggle to raise a second deposit to move around the PRS more easily and support tenants to save for ownership.

 

 

 

In conclusion, it is refreshing to see the government taking proactive steps to address the private rental sector’s issues. The proposed Renters Reform Bill is a step in the right direction and has the potential to create a fairer and more inclusive rental market. However, it is essential to note that it will require collaboration from all stakeholders, including tenants, landlords, and policymakers, to create a lasting impact.

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Brighton First Time Buyers Guide

2 Minute Read

Buying your first home is a significant financial decision that requires careful planning and preparation. Whether you are a recent graduate or a young professional, owning your own home can be a fulfilling milestone in your life. However, it can be a daunting task, especially if you are unfamiliar with the buying process. In this guide, we will take you through the essential steps of buying your first home in the UK.

Saving for a Deposit

The first step in buying a home is saving for a deposit. In the UK, the typical deposit amount required for first-time buyers is around 5-20% of the property value. Setting a budget, cutting back on unnecessary expenses, and exploring government schemes like Help to Buy can help you save for a deposit faster.

Mortgage Pre-Approval

Mortgage pre-approval is crucial before you start searching for your dream home. This process helps you determine your budget, understand the types of mortgages available, and find the best deal for you. You can get mortgage pre-approval by chatting to an independent mortgage broker.

Finding the Right Property

When looking for your ideal home, you should consider factors such as location, size, style, and budget. You can search for properties online, through estate agents or even by attending open house viewings. During property viewings, ask the estate agent or seller questions to help you make an informed decision.

Making an Offer

Once you find a property that fits your criteria, the next step is to make an offer. This stage involves negotiations with the seller, and if successful, you will have to hire a conveyancer or solicitor to guide you through the legal process of buying a home. During this process, you will need to pay for additional costs such as stamp duty and legal fees.

Moving In

Finally, once you complete the legal process, it’s time to move in! Preparing for your move can be exciting but also stressful. You should pack carefully, book a reliable removal company, and register with utility companies. You should also update your address details with relevant parties, such as your bank, DVLA, and employer.

Buying your first home can be challenging, but with careful planning and research, it can also be a rewarding experience. By following these essential steps, you can find the perfect home that suits your budget and lifestyle. Remember, the key to success is to stay organised, seek advice from experts, and keep your budget in mind. Good luck with your house hunting!

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3 bedroom detached house in Patcham, Brighton, for Sale

3 bedroom detached house in Patcham, Brighton, for sale - view from road

MyHaus Property are delighted to present this superb 3 bedroom detached house offering immaculately presented living accommodation and a large garden


3 bedroom detached house in Patcham, Brighton, for sale - view from road


3 bedroom detached house in Patcham, Brighton, for sale - Summer House in Garden

The property is located in the highly sought after location of Patcham, just a few miles out of Brighton. The property has been extensively renovated with no expense spared on the build quality, fixtures or fittings. The property is located a 10 minute walk from Patcham primary school, with local convenience shops a few minutes walk away.

The accommodation comprises of a large living room, open plan kitchen dining area, 3 well sized bedrooms and a modern, luxury family bathroom with underfloor heating. All three bedrooms are complemented by bespoke fitted wardrobes. The property boasts a large kitchen/dining room with adjacent utility room and WC. In addition the property has a large summer house and shed at the end of the garden, providing a paved seating area and basic kitchen facilities for summer gatherings, a large garage and ample off-road parking.

For more details, or to book a viewing please contact sole agents MyHaus Brighton..

Email us at info@myhausbrighton.co.uk or call us on 01273 286788.

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30 Most Valuable Streets in Brighton

Brightons 30 Most Valuable Streets

Ever wondered how much houses cost across Brighton & Hove? Sophie is here to give you a rundown of the 30 most valuable streets in and around Brighton, visiting every street with some interesting facts about the area and properties along the way. Stay tuned to see if she is on your street next!

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A Quick Guide to Purchasing a Buy To Let Property in Brighton & Hove

If you’re considering becoming a landlord, there are many elements to consider before you purchase a property. The process of buying a buy-to-let property differs compared to buying a residential property that you will live in yourself. Of course, it’s a long-term investment that shouldn’t be made in haste, so if you’re reading this, you are probably looking for the right information.

Our team at MyHaus are experts in buy-to-let advice, so here is our straight forward guide to purchasing a buy-to-let property in Brighton & Hove.

What is Buy – to -Let?

First things first, the basics: buy-to-let is a property that is specifically purchased with the intention to rent it out to tenants. It’s an investment property that can generate a monthly income, as long as the rent being charged is higher than the monthly buy-to-let mortgage payments. 

A buy-to-let mortgage is different to a residential mortgage, and if you can’t afford to buy the property outright, you will need to apply for one. When applying for a standard mortgage, your income is taken into consideration, whereas with a buy-to-let loan, the lender considers the potential rental income as your primary income source, and considers your personal income as secondary. The interest rates tend to be lower, but they have larger upfront fees, so keep that in mind. Moreover, deposits on buy-to-let mortgages are also typically larger than the deposit needed for a standard mortgage, so expect to put down at least 25% more than you normally would. 

What kind of buy-to-let property should you buy?

The right property is important and can include factors such as the location in proximity to amenities and transport, as well as the neighbourhood and the demand in the area. Much like when you’re searching for your own place to live, you should ensure you research the area you want your buy-to-let property in. 

Consider what kind of tenant you want to target and include that in your research. If you’re trying to rent to families, your best bet is to find a property in the suburbs close to good schools. If you want to rent to students, a property near a university and good but cheap restaurants and nightlife is key. Keep in mind, the type of tenants you have renting from you can affect your mortgage, as many lenders have restrictions on student rentals, for example. 

Do you need buy-to-let insurance?

The short answer is yes; you should have buy-to-let insurance (also known as landlord insurance). It gives you coverage for the building and the contents inside and any landlord liabilities. 

Building insurance is often required by your mortgage lender in order to secure a loan and will compensate you if your property is destroyed or damaged. This will cover the repairs or rebuilding costs so you don’t have to pay huge expenses. 

Contents insurance will cover any furniture inside the property. It’s a smart idea to get contents insurance even if your buy-to-let property is unfurnished because you can choose what level of cover you require, and it can protect any curtains, carpets, and other furnishings. If you choose to rent your property unfurnished, your tenants will be responsible for their own contents insurance when they move in. 

Landlord liability is mostly your choice, but if you’re renting to students, for example, there may be a minimum level required. This covers you for any injuries or deaths of any tenants or visitors in your property. 

 Do you need to use a letting agent?

This answer is dependent on the budget you’re working with and the level of involvement you wish to have with your buy-to-let property. If you want to be a very hands-on landlord, you may not want to go through a letting agent. But, if you would rather take a more hands-off approach, it is a good idea to enlist the help of a professional, experienced lettings agency.  

Letting agents like us will carry out credit checks on your potential tenants, create a letting contract, chase late rental payments for you, help with any maintenance on site that needs to be done, and assist with mandatory safety and efficiency checks for gas and energy. 

The fees to work with a letting agent typically include paying an ongoing fee to manage the property which varies, so it’s always best to speak with your chosen letting agent to get a complete idea of costs.

Generally, utilising the services of a letting agent can take a big burden off your shoulders if you are a budding landlord!

For professional advice on purchasing a buy-to-let property in Brighton, contact our expert team at MyHaus on 01273 286788 or email info@myhausbrighton.co.uk.

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10 Tips for Buy-to-Let Success

Buying a property and letting it out can be very rewarding. Not only do you receive a rental income, but the property itself should also increase in value over time.

The property you are renting out is an investment, but you must make sure that it is looked after and well maintained.

Of course, you may also be busy with a job and family, and while buying to let is a business, it may not always be the first priority in your life.

That’s why we have put together our 10 Tips for Buy-to-Let Success guide. These tips are based on our many years of experience of helping landlords run successful businesses.

If you would like help and advice on the rental market in Brighton, email us at info@myhausbrighton.co.uk or call 01273 286788.

1. Choose Your property Wisely

You may want to invest your money and start getting a return as quickly as possible, but first, you must do your homework and consider the type of property you want and what sort of tenant you need. You might be thinking about students, but what if there isn’t a market for students in the area?

Top tip Speak to the professionals. We know the Brighton market locally and can advise you accordingly.

2. Decide how Much Involvement You Want

Decide what sort of landlord you want to be. Will you be hands-on and do a lot of the maintenance work yourself, or do you want to get tradespeople in to do the work for you?

Top Tip If you’re relying on tradespeople, ask around and develop a list of trusted contacts to be used when required.

3. Will You Manage the Property?

There are quite a few things you need to do including getting gas and electric certificates, collecting rent, dealing with maintenance and other issues, even managing the process of eviction should it come to that.

So, are you able to do much of this management yourself, or do you need an experienced lettings manager to take the strain?

Top Tip We can help you find a tenant, sort the contracts and look after the management – if you want us to!

4. Understand the Potential Net Returns

You may have money in the bank to invest in property. You may also have the desire to be a landlord and are thinking of the potential returns. But, have you actually done the maths?

Sit down with a pen and paper and do some research into all the other costs, for example:

  • Landlords Insurance
  • Servicing and gas and electric safety certificates
  • EPC certificate
  • Costs of repairs and maintenance
  • Tax
  • Void Periods
  • Tenant Acquisition
  • Utility Bills
  • Management Fees

This is to name but a few!

Top Tip Make sure you can afford it. This might sound silly, but if the returns aren’t as great as you think, and the additional costs rack up, you could be in for a surprise.

5. Be Aware that Property Prices can go Up and Down!

Property is a sound investment most of the time. We would definitely recommend being a buy-to-let landlord, particularly in Brighton, but you should be aware that property markets can go down as well as up.

Top Tip Be in it for the long run. Be patient as markets can fluctuate but a good landlord knows this and sticks with it.

6. Always get Insurance

We firmly advise that you need Landlords Insurance and Buildings Insurance and maybe even Contents Insurance too. It’s better to be safe than sorry and should anything untoward happen, you will know that you are covered.

Top Tip Speak with an experienced insurance broker. They will go through the level of cover you need and why.

7. Be Efficient and Keep Records of Everything

A buy-to-let property is best when it has a paying tenant of course. When it is empty, it costs you money. Landlords who can move quickly when they need to find a tenant are the ones who have successful businesses.

Top Tip Make sure your paperwork is organised and in order. Keep a list of preferred suppliers including plumbers and electricians so that any work can be done quickly.

8. Choose the Right Lettings Agent

A good lettings agent will advise you on which area to look at when acquiring a property, and will know the sorts of rent you could expect to get. They’ll be able to recommend tradespeople, and be able to sort the contracts out. It’s worth doing your research and getting the right team in place.

Top Tip Seek recommendations from other landlords who have used an agent in your area.

9. Don’t Fall in Love with the Property

This is an interesting one. There’s a difference between liking a property and loving it. If you love it, you may well not see it as a business and it is a business that has to make money.

Top Tip You won’t be living in the property, but you can put your stamp on it in some way, perhaps the garden design for example.

10. Plan for the Future

While you have a property to rent out, ask yourself what your future plans look like:

  • What’s your long-term goal for the property?
  • Do you know whether you want to sell it eventually?
  • Do you want to keep it and live in it at some point?

Top Tip Set your goals right at the start. That way, you will know what to do and when to make the right decisions.

We have years of experience in helping buy-to-let landlords and we can help you. Please get in touch. Email us at info@myhausbrighton.co.uk or call us on 01273 286788.

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Just give me some space!

Elon Musk and the SpaceX team definitely had their eyes set on space for quite some time. But it is not just the people of Brighton that are now looking for property with a bit of SPACE.

As Rightmove have recently reported, people are looking for extra space. With Cornwall being the most sort after location post- pandemic it no surprise that the desire to live in London has declined. With the thousands that live in the capital living with no outdoor space, or very little its no surprise that things have changed. The new in priority is ‘garden’ or ‘outside space’ when looking for a new place to live.   

So why do we need more space?

As Rightmove suggests, people are prioritising the need for more space inside and outside. This is due to the recent increase of people working from home. These desires could well just be fashionable for now but who’s to say. 

The need for an office space, which used to be known as the spare room is very popular. If your property has space, good wifi and is pet friendly you will be ticking all the right boxes.

Number two on the buyers wish list is having a garden. With over 4000 potential movers surveyed this is what they desired most from a home. Flats have also dropped out of the top five wanted list for buyers according to Rightmove’s research. Property in Brighton specifically is thriving, because while we have plenty of flats around, we have the SEA! 

Ultimately it’s no surprise that our priorities have changed, and we know they will continue to. For now, we keep hunting those properties that meet your needs and finding those perfect tenants at MyHaus Brighton.

For all lettings enquiries, whether you are a landlord or tenant, contact us on 01273 286788 or send us an email on info@myhausbrighton.co.uk.