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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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Major HMO licence shake up in Brighton & Hove

We have been informed that from the 1st of March 2023 the additional licencing scheme for HMO across Brighton and Hove will be scrapped.

Currently, if 3 or more tenants from more than 1 ‘household’ occupy a property, then the property will require a HMO licence. In this instance, a couple and a friend would not be permitted to rent a 2 bedroom flat without one.

Brighton will be reverting to standard HMO licence rules, whereby 5 or more tenants are living together as more than 1 household, or if the property is 2 or more stories, may require a HMO licence.

What does this mean for landlords?

In short, if you own a 2 or 3 bedroom property with no licence, renting it will be a lot easier. If you currently hold an additional HMO licence, you may not be required to renew it.

What does this mean for tenants?

As a tenant searching for a house or flat to rent you will have more options of who and where you can rent!

While we have had confirmation from the council, we are still awaiting the full details of the update in policy so watch this space!

Here at MyHaus property, we provide expert letting agent services in Brighton & Hove, give us a call today on 01273 286788 or email us at info@myhausbrighton.co.uk

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Should You Work With a Letting Agent as a Landlord?

Two people disvussing the letting of a property, could be alternative document.

Are you wondering whether you should work with a letting agent as a landlord? Depending on your situation, working with an agent can be a great way to save time, money and stress.

If you’re wondering what a letting agent does and whether you should work with one, here’s everything you need to know to help you decide.

What Do Letting Agents Do?

Letting agents can do different things for you depending on the package you pay for. You can give an agent a portion of the property management responsibilities – or the entire thing!

Typically, letting agents can:

Find tenants for you: A letting agent can market your property and find the right tenant for you.

Arrange the let: From collecting references and running credit checks to securing deposits and drawing up tenancy agreements, they can arrange everything to get the tenancy in place.

Collect rent: A letting agent can collect rent from your tenants each month and chase up any late payments according to the lease.

Manage queries: A letting agent can answer tenant queries, handle issues and deal with any maintenance or repair work that needs to be scheduled.

Why Should You Manage a Property Yourself?

The decision to manage a property yourself should be carefully considered. It can be time-consuming, and you’ll need to be up to speed on all the latest legal developments to ensure you’re renting in line with the law.

There are benefits to managing a property by yourself – but only if you like being a ‘hands-on’ landlord. Managing a property yourself can be ideal if:

You want to minimise costs

You have lots of time to deal with queries/issues

You have connections with good tradespeople

You’re up to speed on the latest legislation

You live nearby

You enjoy the management side of being a landlord!

What Are the Benefits of Working With a Letting Agent?

Managing a rental alone isn’t for everyone. Plus, if you have more than one property to let, being a landlord can quickly become a full-time job.

Here are four of the top benefits of working with a letting agent instead of managing things yourself.

1.   Saves Time

Working with a letting agent undoubtedly saves you time. Since they deal with tenant queries, rent collections, administrative tasks, and everything else in between, you’ll no doubt have more time on your hands if you work with a letting agent.

2.   Let’s You Be a Hands-Off Landlord

If marketing your property, dealing with tenant calls and having to visit the property when issues arise isn’t the life for you, working with an agent lets you be a hands-off landlord. This is ideal if you live far away from your rental property.

3.   Keeps Things Legal

One of the biggest reasons to work with a letting agent is that they can keep your property in line with the law. It’s a letting agent’s job to stay in the loop about the latest developments in legislation, so you don’t have to. If you’re a new landlord or you don’t have time to spend learning what’s right and wrong, a letting agent can help you keep things legal.

4.   Maintains Professional Connections

Sometimes, things go wrong. Whether it’s the boiler breaking or a leak in the kitchen sink, your tenants will need a tradesperson at some point. Letting agents will maintain professional connections with plumbers, electricians and other tradespeople that may be needed in an emergency, so you don’t have to worry about finding someone right for the job.

Interested?

If working with a letting agent sounds like the right choice for you, we’ve got you covered! Here at MyHaus property , we provide expert letting agent services in Brighton & Hove, so you can be as hands-on or hands-off as you like.

Give us a call today on 01273 286788 or email us at info@myhausbrighton.co.uk to learn more about our services for landlords.

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The Conveyancing Process Explained

Home Selling Tips

Selling a property can be a very confusing and lengthy process but having a good solicitor or conveyancer will help it to run as smoothly and efficiently as possible. Here is an easy step by step guide to the whole conveyancing process.

Find a Conveyancer

The conveyancing process formally starts when you’ve accepted an offer on the property.

However, it’s recommended that you have a conveyancer in place before accepting an offer so that they can get the process started immediately and avoid delays.

When it comes to choosing a conveyancer, speak to two or three and get some quotes before deciding who to go with. Speak with our team at MyHaus as we will be able to recommend too. Alternatively, if you have friends or family who have recently moved, find out who they used and if they were happy with them.

Don’t just go for the cheapest option, it could cause major issues further down the line if they cut corners!

Sign the Conveyancer’s Letter of Engagement and Verify Your Identity

Once you’ve chosen a conveyancer and discussed the fees involved, you’ll need to sign their letter of engagement. It’s only at this point that you commit to using their services. You will also need to verify your identity and address in the form of a passport or driving licence and supply a mortgage statement or utility bill for example.

Complete Questionnaires

Your conveyancer will send you some forms to complete, including a Property Information form and a Fittings & Contents form.

It’s vital that you complete these honestly, as failure to do so could lead to delays later in the process.

The Property Information form is where you tell the buyer about any changes that have been made to the property, such as extensions, solar panels or a loft conversion. You’ll also need to provide any supporting documents you have, so if your double glazing is still under warranty or you have paperwork to show that your boiler has been serviced in the last 12 months, you will need to provide copies.

When it comes to fittings and contents, you don’t need to decide what you’re leaving behind at this point, you can confirm later or leave it open to negotiation. Your conveyancer will be able to advise how to complete the form if you get stuck.

Speak to Your Mortgage Provider

Assuming that you have an outstanding mortgage on your property, you will need to contact your mortgage lender and inform them that you’re in the process of selling. They’ll be able to advise you about paying off your outstanding balance when the sale goes through, or porting your mortgage, which essentially means transferring it to your new property.

Draft Contracts

When your conveyancer has received your completed forms, they’ll draw up a draft contract to send to the buyer’s conveyancer.

The contract will outline which fixtures and fittings are to be included, along with copies of all the supporting documents you’ve provided.

It will also give a date for completion, which is typically around two to four weeks after the exchange of contracts.

The draft contract stage is usually the point where most of the negotiations take place, including the final price of the property.

It’s also at this stage where you’ll need to allow for the buyers to have a surveyor come in and inspect the property. Depending on the answers you’ve given in the questionnaire the buyer may also want other professionals to come in and carry out inspections, such as a plumber or electrician.

They may also request that you pay for the costs of any further inspections or repairs, but you will be under no obligation to agree to this. However, it’s at this point that a buyer may try to renegotiate on the final price of the property to take the extra costs into account.

Exchange of Contracts

Once the buyer is satisfied with the condition of your property and a final agreement has been reached on the price, including all fixtures and fittings, your conveyancer will exchange contracts with the buyer’s conveyancer.

Between Exchange and Completion

At this point both you and the buyer are fully committed to the sale of the property. You’ll receive the buyer’s deposit and if either party pulls out, they’ll open themselves up to legal action.

Completion

This is the day on which you hand over the keys to your property. The completion date is usually around two to four weeks after the date of exchange, but you can ask for this to be extended, or in some cases, shortened.

The date of completion is also the date on which you’ll receive the outstanding balance for the property from the buyer.

If you are planning on selling in the Brighton & Hove area soon, why not telephone us on 01273 286788. We’ll be happy to advise you and help with your conveyancing needs.

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4 Simple Home Staging Tips That Can Help Sell Your Flat Quickly

Interior of a room, blue walls, brown desk and lamp. MyHaus Brighton Estate Agency

Sometimes, it’s the little things that make a big difference when you’re selling a flat. While it’s easy to spend a fortune staging your home for viewings, you don’t have to splash the cash to freshen up your space.

By maximising the assets your apartment already has and doing a few simple things to spruce up the overall appearance, you can make your home look more attractive to buyers and be on the right track to getting a quicker sale.

In this article, we’ll share our best home staging tips for apartments that can help you sell your flat quickly.

1.  Declutter

One of the best things you can do to stage your flat for a quick sale is to declutter. A messy flat can easily make the space appear smaller than it is.

Before viewings, minimise your belongings and put things away in cupboards to maximise your floor space and show off shelving areas.

Remember, it’s best to depersonalise as much as you can, but never make your flat feel empty. Buyers want to see open space, but too much emptiness can have a negative impact and make your home look cold.

Strike a good balance and stick to decluttering the clutter, not everything.

2.  Accentuate Natural Light

Natural light is one of the best features a home can have. If you have many windows in your flat, accentuate the natural light as best you can.

When viewings are booked in, make sure your window ledges are clear and your blinds/curtains are opened all the way. If you have time, give your windows a quick clean, too.

These changes may be small, but they can make a huge difference in how bright your apartment feels.

3.  Wash Rugs & Upholstery

Sometimes, it’s the little things that make a big difference! If you want to make your apartment look brighter, give your rugs, upholstery and sofa cushions a clean.

You may not notice it yourself, but these items can become dirty over time. With a quick wash of the essentials, you can make your space look fresher and cleaner. Plus, your apartment will smell fab when buyers walk in!

4.  Refresh Walls

Your apartment walls are likely one of the first things buyers will notice. With a bright, neutral colour, your flat can easily appear bigger and cleaner.

To stage your apartment for a quicker sale, giving it a fresh coat of paint can go a long way. However, we know not everyone can spare the cash or the time to paint.

Instead, you can simply wipe walls down with a magic eraser. With just a quick spruce, dirt and blemishes can disappear entirely.

Need Help Selling?

If you’re selling your Brighton & Hove apartment, we’d love to talk! MyHaus are your local property experts. Our friendly team are happy to arrange a valuation of your flat and provide personalised home staging tips.

Give us a call today on 01273 286788 or email us at info@myhausbrighton.co.uk to learn more about our services and how we can help.