Lettings Market Updates & Property Advice!

Welcome to the June edition of the Greenstone newsletter.

First up this month we update you on eviction notice periods, as from June these have been reduced to four months to help protect tenants over lockdown.

We're pleased to say cities are making a comeback with buyers and tenants, as urban living now takes the lead. Further into our newsletter, we take a look at what's changed to safeguard both homeowners and renters, following new laws being announced.

Finally, with intense activity in the market continuing to rise, what is the outlook for the housing market over the next few months?

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.

Best regards

Lewis Green, Director

Your stamp duty and mortgage holiday questions answered

undefined

Eviction notice periods now at four months

From June, eviction notice periods have been reduced to just four months for landlords, instead of the six months they were previously set at to protect tenants over lockdown.

In cases of extenuating circumstances or anti-social behaviour, notice periods will be lower.

After a year of restrictions and economic uncertainties, the change is part of a phased approach from the government to help the country regain normality.

Before the changes, there had been a ban on bailiff-enforced evictions to protect tenants during the ‘stay at home’ instructions.

The UK’s housing minister, Christopher Pincher, has continued to pledge support from the government for tenants, whilst balancing the needs of landlords.

He stated that crucial financial support will continue to be available, with the furlough scheme and universal credit uplift currently in play.

Many people in the property sector have agreed with the changes, stating that now is a sensible time to roll-back the measures as restrictions come to an end.

Whilst the ban on evictions has caused financial distress to some landlords, it seems to be regarded as a success in the wider picture.

We are committed to helping our landlords and tenants with their every property need.

If you have any questions regarding the reduced notice periods, or a general query or concern, get in touch.

What is the outlook for the housing market?

Compared to this time last year, the value of homes being sold in the UK has practically doubled in the first 15 weeks.

During this period, around £149 billion pounds worth of property transactions have taken place, with industry sources predicting this to climb even higher for the rest of 2021.*

How busy is the housing market to date?

Intense activity has led to there not being enough available homes on the market to keep up with demand, with supply in April nearly 30% below the levels recorded in 2017 and 2019.

How has this affected house prices?

Annual house price growth was at 4% in March, nearly double the 2.1% recorded for the same period last year.

The greatest increases have been seen in the northern regions, in particular: Manchester and Liverpool at 6.5% and 6.3%, closely followed by Leeds, Nottingham and Sheffield with a 5% increase.

However, in London – which is the region with the highest average house price – annual growth was only 2%.

What could this mean for you?

With the search for space remaining a top priority, three and four-bedroom homes are in high demand, with many being sold over their asking price.

This means that homeowners selling a family home have been in a prime position to receive offers in record time, often leading to a shortage of choice for those still looking to buy.

Are you on the lookout for a new property, or just curious to see how much your home could be worth?

Get in touch with a member of our team who will be happy to assist you further.

*Zoopla

What's changed to safeguard homeowners and renters?

New laws have been put in place to place to protect homeowners, landlords and tenants. Here's a breakdown of what has changed.

1. Ground rent ban

Ground rent is money tenants pay their landlord to occupy the land a lease property is built on. You don’t have to pay any ground rent unless the landlord has formally asked for it.

Due to loopholes in some new build lease contracts, landlords can increase ground rent without offering any benefit to the tenants.

One of the new laws being put in place means ground rent charges are to be banned on new builds.

Tenants may still have to pay a small fixed amount of ground rent, but this fixed rate would not increase at any point during their lease.

2. Eviction notice periods reduced to four months

During the pandemic, notice periods were extended to six months as an emergency measure to safeguard tenants unable to keep up with rental payments.

This has been reduced to four months as the government look to balance support for renters and landlords.

For serious cases involving anti-social behaviour or a build-up of high rent arrears, this timeframe will be lower.

Because 45% of private landlords own just one property, they are extremely vulnerable to rent arrears, especially when they rely on tenants’ payments to pay their own bills.

3. More rights for pet owners

Previously, it was seen as the default option that rental properties did not allow pets. Updates to the modal tenancy agreement mean that this is no longer the case.

Consent for pets will be assumed and landlords will have to object to a written pet request within 28 days. To reject the tenant's pet request, a valid reason must be given.

This may include property size or surrounding issues, such as the property being in a block of flats.

4. Mandatory electrical checks for tenants

Mandatory electrical checks ensure that the property is safe for tenants to live in.

These inspections must be carried out every five years by law.

Once carried out, the electrical installation condition report will highlight any urgent work needed to ensure the property is safe.

Landlords who don’t carry out any repairs highlighted in the report will face a fine of up to £30,000.

5. Lifetime deposit

Ministers are considering introducing deposit passports to make renting easier.

This would mean renters could 'passport' deposits electronically, instead of having to pay a deposit for their next property while waiting for a refund from their former landlord.

Passporting would allow a direct transfer of funds from the previous landlord to the new one on the day of the move.

The previous landlord would still be able to claim part of the deposit for any damages, if necessary.

For more information or guidance, contact our team.

Cities are making a comeback with buyers and tenants

The pandemic took a toll on the UK's previously bustling cities, with empty streets and closed down businesses becoming the new norm for many residents.

Due to changing lifestyles, it wasn't long before buyers and tenants turned their attention to rural living, with increased enquiries and searches for properties in more remote, tranquil locations.

In fact, for most of 2020, demand for rural properties outweighed demand for city properties, with countryside searches on Rightmove up 69%.

With the easing of lockdown restrictions and the prospect of the UK getting back to normal, we've now seen that interest reverse once more, with urban living now taking the lead.

What are buyers and tenants looking for?

From January 2021, flats located in major cities have seen a 39% increase in demand, says Rightmove.

This shows a strong contrast from 2020 trends, where ‘larger family homes’ were the most popular choice.

But what are the reasons for the sudden switch in demand?

As well as the lockdown roadmap, another huge factor behind the spike in interest for cities is the UK's vaccination program and successful rollout, as this has led to optimism for the housing market and consumer spending in general.

With a range of stunning properties available with us, why not discover your next home?