We woke up today to a resounding Conservative victory, so after months of economic and political uncertainty, resulting in a subdued housing market, is there now light at the end of the tunnel?

Hopefully todays result will bring confidence and certainty to the market, encouraging people to move instead of just staying put. We could now see a surge of properties come to market over and above the usual January rush as those that had been waiting around finally decide to move. Regardless, the cost of moving and borrowing hasn’t changed, wages haven’t increased so house prices can’t just ‘soar’ as who could afford to buy them – could an increase in supply then push prices down?!

Whist we talk about certainty, with such a short manifesto it isn’t clear exactly what we can expect, however what we do know is this;

Tax Changes - An extra 3% surcharge on overseas buyers

Whilst this has an impact on the London market and certain property hotspots throughout the UK (i.e. Manchester / Birmingham) I don’t think this will impact our buyers here in Gravesend (interestingly 3% is a drop in the ocean given certain countries attitude to foreign buyers, foreign buyers in Singapore for example will pay a 20% surcharge).

Money

There was no mention of Stamp Duty within the manifesto however the conservatives did previously have plans to overhaul the system. Obviously, any reductions in Stamp Duty would reduce the cost of moving and stimulate the market – fingers crossed!

Landlords

The conservative manifesto specifically mentions their pledge for a ‘better deal for renters’. They have therefore committed to abolish the ‘no fault’ eviction process (Section 21 Notices).

They have also pledged to introduce transferable, lifetime tenancy deposits – which will have little to no impact.

The reductions in tax relief for buy-to-let mortgages will continue (landlords are taxed on their turnover rather than the difference between rental income and mortgage interest)  reaching its final phase in 2020, so I predict we will continue to see Landlords leaving the market place as their investments are no longer viable.

Still, there is a silver lining, there won’t be as many landlords leaving the buy-to-let market as there could have been if Labour had come to power - Jeremy Corbyn had pledged to introduce rent controls and to fund renter's unions. 

We're looking forward to seeing what 2020 has in store!

Sarah

We are proud to be supporting Gas Safety Week 2019, taking place 16^th – 22^nd September 2019.

Gas Safety Week is an annual safety week to raise awareness of gas safety and the importance of taking care of your gas appliances. It is coordinated by Gas Safe Register, the official list of gas engineers who are legally allowed to work on gas.  

Badly fitted and poorly serviced gas appliances can cause gas leaks, fires, explosions and carbon monoxide (CO) poisoning. CO is a highly poisonous gas that can kill quickly with no warning, as you cannot see it, taste it or smell it.  

Landlords are legally responsible for the safety of their tenants. Landlords must make sure maintenance and annual safety checks on gas appliances are carried out by a Gas Safe registered engineer. 

If you’re a landlord, you are legally obliged to make sure:

• Gas pipework, appliances and flues provided for tenants are maintained in a safe condition.
• All gas appliances and flues provided for tenants’ use have an annual safety check. Your tenants can report you to the HSE if you don’t provide one, so it’s important to remember! You can set a free email and/or text reminder so you don’t forget, visit StayGasSafe.co.uk.
• A Gas Safety Record is provided to the tenant within 28 days of completing the check or to any new tenant before they move in.
• You keep a copy of the Gas Safety Record until two further checks have taken place.
• Maintenance and annual safety checks are carried out by a qualified Gas Safe registered engineer.
• All gas equipment (including any appliance left by a previous tenant) is safe or otherwise removed before re-letting.

Before any gas work is carried out always check the engineer is qualified to carry out the work that needs doing e.g. natural gas, domestic boiler. You can find this information on the Gas Safe Register website or by checking the back of the engineer’s Gas Safe ID card. Encourage your tenants to also check the card when they arrive at the property.

For more information and to find or check an engineer visit GasSafeRegister.co.uk or call 0800 408 5500.

We automatically coordinate Gas Safety certificates for the Landlords of properties that we manage, so they don’t need to worry. We could also help you! Should you have any queries please do not hesitate to contact the team.

We are here to help - 01474 321957 or lettings@mandmprop.co.uk

Following research, in April of 2019 Sir James Brokenshire, Housing Secretary, announced the plan to consult on scrapping Section 21 Notices. The government intends to change the legislative framework by removing the Section 21 eviction process, along sides strengthening the grounds for eviction under Section 8 of the Housing Act 1988 and simplifying court processes to make it easier to gain possession through the courts. 

We are proud to announce that we have received a FEEFO GOLD TRUSTED SERVICE AWARD 2019. An independent seal of excellence that recognises businesses for delivering exceptional experiences, as rated by real customers.

Created by Feefo, Trusted Service is awarded only to those businesses that use Feefo to collect genuine reviews and insights. Those that meet the high standard, based on the number of reviews they have collected, and their average rating, receive the award. A badge of honour, this accreditation remains unique, as it is based purely on the interactions with real customers. As all reviews are verified as genuine, the accreditation is a true reflection of a business’ commitment to outstanding service.

To receive the award we had to meet the criteria of collecting at least 50 reviews between January 1^st 2018 and December 31^st 2018, with a Feefo service rating of between 4.5 and 5.0.

We’re thrilled to receive this award from Feefo as it recognises how hard we’ve been working to give great experiences to all our customers, who are the most important judges of what we do. We’re committed to delivering the highest quality of service, so it’s important for us to listen, understand and respond to all of our Vendors, Buyers, Tenants and Landlords.  

Feefo is a reviews and customer insights technology company that provides businesses with the tools to collect real, purchase-verified reviews and insights. Working with over 3,500 clients, Feefo ensures that all feedback is authentic, by matching it to a legitimate transaction, in order to increase consumer confidence and enable businesses to make smarter business decisions.

Should you wish to rad some of our reviews click here.

Another month and yet more legislation ... One of the largest and impactful changes to the rental market in recent years (and there have been many changes!) comes into force in England on 1st June 2019. 

From this date the 'Tenant Fees Act 2019' will become law and applies immediately to any tenancy agreements signed on or after 1st June 2019, affecting all Landlords, Tenants and Letting Agents. 

From the 1st June 2019 it will become illegal for Letting Agents or Landlords to charge fees to tenants, apart from a small number of 'permitted payments'.

The permitted payments are;

1)    Rent – The first rental payment MUST be the same as the remaining payments.

2)    Utilities, Council tax & TV licenses & communication service

3)    A Capped refundable Security Deposit - Deposits will be capped at 5 weeks rent (or 6 weeks if the annual rent is over £50,000 - not a regular occurrence in Gravesham!). If a tenant has paid a higher deposit for an existing tenancy when a new contract is signed a refund of anything over the 5 or 6 weeks will have to be sent to the tenant. For periodic tenancies there is a transitionary 12-month period ending 31 May 2020. No increased deposits can be taken for tenants with pets.

4)    A Capped Refundable Holding Deposit – Landlords & their agents can no longer charge a tenant for referencing; we are however able to take from the tenant a 'holding deposit' to secure the property, for a maximum of 15 days (deadline for agreement). This must not exceed 1 weeks rent and must be deducted from the first months rent or deposit once acceptable referencing has been returned. Should the tenant be unsuccessful then the holding deposit must be returned to the tenant, there are only a few very specific reasons that we are able to keep this holding deposit. 

5)    Payment in variation, assignment or novation of a tenancy – Landlords or their agents can charge a maximum of £50 when a  tenant requests a variation, assignment or novation of a tenancy.

6)    Payment on termination (surrender) of tenancy – We can require the tenant to make a payment for early termination that must not exceed the cost borne by the Landlord.

7)    Default charges – The only circumstance a landlord can charge for a default payment is if a tenant loses a key or security device or if the rent is late. The rent must be over 14 days late. This charge can only be 3% above the base rate.

8)    Green Deal Charge – A payment towards Energy Efficiency improvements under a Green Deal can be charged if included within the tenancy agreement.

9)    Fees for changing a tenant or ending a tenancy early – Thankfully should a tenant wish to break a contract and vacate early Landlords and their Agents are still allowed to charge for the loss suffered by the Landlord and rent. 

Landlords and their agents will still be able to charge fees on pre-existing tenancies until 31st May 2020. If a tenancy becomes periodic (i.e. continues after the end of a fixed term) fee’s can be charged up until 31st May 2020. 

A breach of the fees ban will be a civil offence with a financial penalty of up to £5,000 and with successive breaches would be a criminal offence with an unlimited fine or prison sentence.  

For those landlords that will accept pets we can no longer charge an increased deposit, however what we can do is charge a higher monthly rent. This must be advertised clearly and communicated to perspective tenants ASAP.

At M&M we are offering our Tenants and Landlords the option to rent using a 'Deposit Free option' using 'Flatfair'. This provides our Landlords with double the protection, enabling them to claim 12 weeks rent at the end of a tenancy. Contact our office today to find out more. 

Sarah Driscoll

Director

01474 321957

lettings@mandmprop.co.uk