The market is calm and stable, with huge long-term demand and with more people renting for longer, now is a great time to invest in property. Tenants are renting for longer as it takes a bit more time to get a footing on the property ladder. Being a landlord is very much a business. The most successful businesses adapt to the times. It’s true that many tenants are feeling the pinch of the cost-of-living crisis. But for many savvy landlords, this is a great opportunity to grow and expand their property portfolio.

Increasing rents
The buy-to-let market can be highly lucrative and offer great returns on investment. Average rents increased in the 12 months from December 2022 by 12.1%.*

Supply is short
The shortfall in the supply of rental properties is still massive and will remain so for many years to come. Simply put, there are far more tenants than available properties.

The trend toward smaller homes
Smaller, more affordable homes are in demand. Flats and more modestly sized homes are appealing simply because they are cheaper to run. Tenants are a little more cost-conscious with the challenges of the cost-of-living crisis.

Energy efficiency is easier
It’s not all about size. Modernising your rental property is now becoming more essential than ever. This is much easier to achieve in more modestly sized homes. Energy Performance Certificate rules will be more stringent in 2025, with new tenancy agreements having to meet an energy rating of C. If modifications need to be carried out to meet these demands, the smaller the property, the more likely it is that they will be cheaper.

Bigger can be smaller!
Developing larger properties and then letting them out room by room is also a great way to spread the risk of your property investment. Converting terrace homes into flats can double your rental income while helping to alleviate the chronic shortage of affordable homes.

Funding efficiency
Investing in multiple properties is a shrewd move when it comes to expanding your portfolio. Instead of having all your capital tied up in one property, investing in smaller properties means the funds you receive for one can help cover the costs of the other.

The opportunity to diversify
The more property you own, the more rental markets you can pursue. Invest in the student, professional, house, flat, or holiday home markets—the possibilities are endless.

The best of both worlds
If you are not sure whether you want to develop property to sell or let property, you can enjoy the best of both worlds and adapt your investment plan more easily.

Whether you are looking to expand or create a property portfolio from scratch, get in touch to see how we can help you today!

 

 

Zoopla*

 

For some of us, home is not the same without them. For landlords, they can become a worry particularly when it comes to damage. Whichever side of the fence you stand on, the law will change soon. And this comes as a welcome relief for those tenants struggling to find affordable accommodation. As things stand currently, there is a blanket ban on pets in residential properties. That means landlords can refuse pets without justification.

Renter's Reform Bill
On the cards since 2019 and soon to become law, the Renters Reform Bill aims to improve conditions and rights for millions of renters in the UK, including pets!

The Dogs and Domestic Animals Act proposes

• Blanket bans on pets living with tenants are to be outlawed.
• Certification of the person responsible for the pet.
• Dogs must be microchipped and vaccinated.
• Dogs must also respond to commands.

Landlords can refuse your pet if:

• You don’t have a vet’s certificate for your pet.
• You are unable to take care of your pet.
• The welfare of the animal is threatened by keeping it on the property.
• If your animal is a nuisance or causes danger to others.
• Your landlord holds a certificate of exemption.

Lack of clarity!
There are still a lot of unknowns and things to work out, for example, on issues such as: Will this apply to all pets? Will the tenant be obliged to get pet insurance? The general process if a landlord refuses to accommodate your pet and a formal process of appeal.

When does this come into effect?
The house of parliament has been deliberating over this bill since 2019, delayed somewhat thanks to COVID. The bill is now becoming law. The exact date has not been released yet, but it’s expected to be later in 2023.

Your pet
Sadly, many pets have been given away or taken into care due to tenants being unable to take care of them. Finding affordable, pet-friendly places to live is a challenge.

Tenants
Many tenants will be thrilled to hear this news. The emotional impact of being forced to give away your best friend is truly devastating. Many landlords are pet owners themselves, so the better-behaved your pet, the better! And pet insurance will show your potential landlord that you are a responsible pet owner with a low damage risk.

Landlords
This bill protects landlords while protecting the rights of your tenants. If you are a landlord, it’s only right that you want to protect your investment. The last thing you want is your tenant’s furry friend ruining your renovated flat! Like many reforms, these changes will help you enforce some ground rules where before there were none.

A happy beginning for all!
With this legislation in place, the landlord-tenant-pet relationship will improve life and conditions for all, allowing everyone to live happily ever after!

Looking for a great place to rent? Are you seeking a buy-to-let investment? Browse our available properties.

 

Some people say the property ladder is disappearing. Many first-time buyers are no longer satisfied with a flat or humble two-up, two-down starter home. Starting small has traditionally been the beginning for many on their property journey. There are some great advantages to this.

Typically, smaller mortgage repayments and a general perception that it’s easier. However, sometimes doing things a bit differently can make a lot more sense and skipping a few steps wherever you are on the ladder might not be as hard as you think.

Get to know the market
Getting to know the property market in your area and beyond is important. Sometimes a three-bedroom house may represent better value than a two-bedroom home or possibly be even cheaper. Many flats, for example, can cost more than smaller homes because they are in high demand.

Buy together
Buying your first property with your partner or a friend could mean you could save a bigger deposit and increase your budget. This could mean you could buy a larger first home, skipping the first few steps on the ladder. Then you may decide to rent any spare rooms.

Buy bigger in the first place
Many people who buy their first homes have well-established careers. Choosing to travel and enjoy life before settling down and perhaps buying a home a little later in life means their earnings and deposit are healthy. When this happens, many people will choose to buy what they can afford.

A more expensive home could be cheaper!
If your plan is to buy a smaller home and then move again to a bigger home later, save on moving costs and buy bigger in the first place. You will gain more equity in your home more rapidly as you pay off your mortgage and save on moving costs and other relocation expenses.

Add value
Perhaps you are already on the ladder, and you want to buy something a few steps further up. A great way to boost your equity is to add value to your home. The trick here is to not overspend, which is easier said than done. A new kitchen or simply painting and decorating can add value. Choose tasks you can do yourself to save on labour costs.

Take on a property project
If you are determined to ascend the property ladder quickly, developing a property if you get the numbers right is a great way to gain a profit, which could be used to buy your next home. Some of the many ways to maximize returns include refurbishing, modernizing, or converting a house into flats. You may enjoy it even if you have to live in a building site! Do it a couple of times over, then find your forever home.

Broaden your search
A top tip for making your property pound go further is to simply broaden your search area. Do the research and find areas that are up and coming often; these will increase in value rapidly. Open your mind and get to know areas you might not have considered moving to. Talk to your agent; they will have a wealth of knowledge to draw on.

Be creative
When it comes to property, the possibilities are endless. You could become a developer with a group of friends and live in the home you're renovating. You could just make a smart purchase by educating yourself on the market. Perhaps you have much grander plans and want to renovate a country estate. Transforming it into apartments, a great family home, and a business all in one place. Whichever level you are at and whatever your budget, there are always great opportunities to scope out.

Do you want to find the perfect property to help you skip a few steps on the property ladder?

Get in touch to see how we can help you today!