Lettings Market Updates & Property Advice!

Welcome to the December edition of the Greenstone newsletter.

First up this month we take a look at the new guidelines on right-to-rent to make it both easier and safer for landlords and tenants . Next up we find out what drives increased buyer and tenant interest this festive season. 

Towards the end of our newsletter we look at the EPC rules and what they mean for both tenants and landlords before answering all your stamp duty and mortgage holiday questions.

We hope you enjoy this months edition. We also provide property tips, insights, and updates on our social media channels which you can click to follow at the end of our newsletter. As always, please get in touch if you have any property queries.

From all of the team at Greenstone, Merry Christmas and Happy New Year! We look forward to working with you in 2021.

Best regards

Lewis Green, Director

Can landlords meet the new guidelines on right to rent

 

Whilst these would ordinarily have been conducted via face-to-face meetings, right-to-rent checks have temporarily been altered to make it easier and safer for landlords and tenants.

 

 

These checks can include:

– Video call checks only

– Tenants can send scanned copies of documentation via email or mobile rather than using originals

– Where unable to provide existing documents, landlords should use a checking service for prospective or existing tenants

 

 

Over this year, there have been speculations over whether landlords are able to meet new guidelines, especially in light of the fact that any new tenancies that started during the pandemic are now expected to be completed retrospectively.

 

So far, 'adjusted checks' have been performed, but this new expectation means all landlords will need to play catch up to fulfil retrospective checks within eight weeks of the COVID-19 measures ending – which may prove a very tight deadline.

 

 

Given the volume of checks this refers to, and the fact the backlog is growing daily, there are mounting concerns from industry bodies such as ARLA Propertymarket over landlords' ability to comply.

If you need help and support in preparation for the end of these measures, we can help.

 

Please get in touch for more information.

 

 

New year, new buyers

 

While Christmas is the time for overindulging, spending time with family and watching all the classics, it's also a really reflective season.

 

After the festivities have wound down, we've always found a renewed interest from homeowners and tenants in the days following New Year's Eve, with enquiries and property searches at an all-time high.

 

We've all spent more time than ever at home this year, so when everyone's gathered around the Christmas tree, you might find yourself planning what your next Christmas could look like and whether you'd choose to spend it living elsewhere.

 

Whilst it's commonly believed that spring and summer see the strongest market activity, year-after-year January has stood out as a time when online searches peak and more people are ready to make and accept offers in a fast timeframe.

 

Who chooses to move at this time of the year?

 

The new year property market usually consists of two types of people: first-time buyers and those re-entering the market after trying in the pervious year.

 

In the spring and summer, the market typically becomes much more competitive, with higher supply levels.

 

If you want to consider a fresh start in 2021 with a new place to call home, it's actually a really good idea to start the process now so you can instruct your agent, plan your property marketing strategy and be ready for the expected surge in buyer interest.

 

Whilst we all hoped the pandemic would be contained within 2020, it's now a confirmed reality that nothing will change when the clock strikes midnight on New Year's Eve.

 

For that reason, we're committed to continuing all of the safe measures and social distancing practices we've implemented this year.

 

To beat the crowd and make your home extremely visible on the property market over the peak holiday period, contact our agency today – visit our website for more information.

 

 

The EPC rules and what they mean for tenants and landlords

 

Introduced earlier this year, revisions to the Minimum Energy Efficiency Standards (MEES) on rental properties have meant that landlords are unable to let a flat or house with an EPC (Energy Performance Certificate) rating below an E.

 

In the years to come, we may even see further changes to this requirement, with plans to raise the bar to band C by 2025.

 

The aim behind this EPC regulation is to reduce bills for lower income households, provide more environmentally-friendly homes for tenants, and improve the quality of landlords' investments.

 

What does this mean for tenants?

Energy-efficient homes can be a lot more appealing to tenants, as they come hand-in-hand with the promise of lower energy bills and better insulation.

 

These properties are likely to boast a range of energy-efficient features, including: LED lightbulbs, heating controls, energy-saving appliances, high-performance windows and insulation.

 

As a landlord, how can I pay for energy efficiency improvements?

 

Whilst the financial cost of these improvements would normally be the landlord's responsibility, certain grants can provide additional funds and support.

 

The extension of the Green Homes Grant for another year – for example – offers a really brilliant opportunity for you to make drastic changes to your properties.

 

Learn more at: https://www.gov.uk/government/news/green-homes-grant-extended-for-

extra-year 

 

 

What happens if landlords break the rules?

Failure to abide by the regulations could see fines of up to £5,000 for landlords.

 

With the government's long-term proposal for band C ratings outlining a potential fine of £30,000 in the near future.

 

Can tenants request energy efficiency improvements?

Yes, tenants have the right to request consent from their landlords to carry out energy efficiency improvements to privately rented properties.

 

Landlords can only refuse consent if there are compelling reasons to do so, and they should be willing to contribute to bringing their homes up to scratch or improve their ratings on the EPC scale.

 

How long does an EPC last for rental properties?

EPCs on properties are valid for ten years.

 

If you are not sure as a landlord when your EPC needs to be renewed, then you can check on the EPC register provided by the government.

The EPC register can also be a good way for tenants to check how energy efficient a property is before thinking about renting it.

If you are a tenant or landlord and want any further information surrounding EPC rules and regulations, please get in contact with us as we will be happy to help.

 

 

Your stamp duty and mortgage holiday questions answered

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Your stamp duty and mortgage holiday questions answered

 

As we emerge from the country's second lockdown and pick back up with the tier restrictions, we're seeing yet more reports of possible job cuts and unemployment concerns up and down the country.

 

If you have questions about your mortgage, we'd like to help guide you.

 

Earlier this year, the introduction of the government's three-month mortgage scheme saw a huge uptake, with lenders granting as many as 2.5 million payment holidays.*

 

Now that they've extended it, with a deadline for deferral applications at the end of January 2021, it's possible once again for homeowners and landlords to obtain financial support.

 

If I apply for a mortgage holiday, will it impact my credit?

 

The Financial Conduct Authority (FCA) have publicly confirmed that requesting a six-month mortgage holiday or extension will not negatively impact your credit.

 

If, however, it comes to the end of the six months and a customer is still in an unstable financial situation, they are advised by the FCA to seek support from their lender.

 

At this point, a tailored support plan will need to be arranged, which could show up on your credit file.

 

Although this is a viable lifeline, it is in the borrower's best interests to only use this scheme if absolutely necessary, as you will accrue interest without making any payments for the duration of the mortgage holiday.

 

 

What's next for the property market?

 

With the stamp duty deadline looming, there has been a crying demand for the government to commit to an extension beyond March 31st 2021.

 

Thousands of property sales are currently moving through the various homebuying stages, with sellers, buyers and property investors keen to make the cut.

 

As we're seeing such high demand, there have been inevitable delays from conveyancers, lenders and other industry professionals depended on to reach completion.

 

It's imperative at this time to remain level-headed, to prepare any necessary paperwork to expediate the process, and to keep in regular contact with your agent.

 

 

 

If in doubt about your mortgage options, you should consult your lender directly, as they will provide further clarification on what is right for your personal situation.

 

To speak with our agents, contact us from our website this December.

 

*Source: Homes & Property