Author: Shirley Grove

 

Did you know that HMRC plans to introduce new rules on how landlords file their tax returns?

 

Here’s an update on what these changes involve and a timeline for when they’ll come into force.

 

Making Tax Digital (MTD) is an initiative designed to streamline the tax system by fully digitising it.

 

As MTD has been mooted for quite some time and its implementation delayed twice already, you may have already heard about it.

 

But if you’re hazy on the details or have buried your head in the sand about it because tax talk bores you silly, here’s a reminder.

 

MTD will require landlords and the self-employed to:

• Keep digital records of all income and expenditure.
• Send HMRC quarterly updates.
• Submit an end-of-year final declaration.
• Use approved third-party software when reporting to HMRC.

 

HMRC plans to phase in the new system gradually. The current timeline for MTD compliance is:

• 6 April 2026, if your annual business or property income tops £50,000.
• 6 April 2027, if your annual business or property income tops £30,000.

 

There is no news yet about those with incomes below £30,000, but no doubt that will come later.

 

What happens to landlords who don’t comply?

 

HMRC has concocted a (somewhat convoluted) points-based penalty system for people who fail to comply. If, for example, you submit incorrect information or don’t use the appropriate software, you’ll accumulate points. When you accrue a certain number of points, you’ll be fined. The more points, the bigger the fine.

 

Will MTD have a significant impact on landlords?

 

A well-organised landlord who already maintains digital records may just have to check if their software is MTD compliant and adjust to more regular reporting deadlines.

 

However, if you’re the kind of person who always has a last-minute panic when your tax return deadline looms, and files receipts down the back of the sofa, you’re in for a big change.

 

Whichever category you fall into, it’s worth thinking about MTD now. Even though its introduction is still some way off, the deadlines will come around quickly enough.

 

Also, it can take time to implement a new system, and you may need to purchase new software. As you accumulate points for every error in your reporting, the number of fines you rack up could quickly grow if you’re sloppy.

 

Many landlords find going digital with their accounts a more efficient way to run their portfolios.

 

It means all relevant records are in one place and easily accessible, enabling them to monitor cash flow closely.

 

If you’d like more advice on preparing for MTD, please contact us here at Chamberlains today.

What’s the most common reason for landlords finding themselves in hot water and needing to make an insurance claim?

 

The answer, according to one insurance company* at least, is ‘escape of water’. This term covers everything from burst pipes and defective washing machines to leaky loos and dripping taps.

 

In a recent report, the firm revealed that 35.5% of all claims paid to landlords were related to water damage.

 

And while most claims totalled a few thousand pounds**, some were for much, much more. (Spare a thought for the landlord who had to claim £145,000 after a slow leak in the bathroom rotted the floor of the entire building.)

 

So, what can landlords do to reduce the risk of leaks, burst pipes and other water-related damage?

 

Here are some top tips.

• Encourage tenants to report problems as soon as they notice them so you can rectify them promptly.
• When carrying out inspections, don’t forget to check for leaks, including subtle signs such as marks appearing on the ceiling. Be particularly vigilant if you have an ageing property.
• Replace washers on dripping taps.
• Remember that when pipes freeze, they’re more prone to bursting. Cover pipes in outdoor areas and colder parts of your rental with lagging to prevent this.
• At the start of a tenancy, show your tenants where the stopcock and fuse box are located. If there’s a leak, they should turn the mains water off at the stopcock. Once they’ve done this, they should switch off the electricity supply.
• If you have an old water storage tank, insulate it with a ‘hot water jacket’.
• Keep gutters and drains clear of leaves and debris.
• Schedule your annual boiler service in your calendar so you don’t fall behind.
• If a tenant is going away on holiday, ask them to turn off the stopcock. In winter, suggest they programme the heating to come on each day to prevent the pipes from freezing.
• Ensure your landlord insurance is up to date.

If you’d like to learn more about how we can help manage and protect your property, contact us at Chamberlains today.

 

* Source: Total Landlord insurance.

** The average burst pipes claim through Total Landlord insurance was £2,596 between 2019 and 2023.

There are five fundamentals to consider when thinking of buying a rental property.

Whether you’re a seasoned investor or taking your first step into the rental property market, make sure you understand what makes a place a good investment.

Here are five points to consider carefully:

 

• Location, location, location

The age-old mantra is as relevant as ever. A property’s location can significantly impact its desirability and, consequently, its value. Look for areas with strong growth potential, good infrastructure and accessibility to amenities like shops, good schools and public transport. Up-and-coming neighbourhoods or those in the regeneration process may offer particularly attractive opportunities.

 

• Rental yield and capital growth

A savvy investor knows the importance of balancing immediate returns with long-term gains. Rental yield – the annual rent collected as a percentage of the property’s purchase price – is a key metric for assessing an investment’s profitability. Equally important is capital growth, or the potential for the property’s value to increase over time. Researching historical price trends in the area can provide insights into future growth prospects. A good estate agent can help you with this.

 

• Property condition and maintenance

The state of the property can significantly influence your investment’s success. A well-maintained property can attract higher rents and more reliable tenants, reducing the likelihood of costly repairs and vacancies. Consider the property’s age, the condition of significant things like roofing and plumbing, and any immediate renovations required.

 

• Market demand and tenant appeal

Understanding the local rental market and what tenants in the area are looking for can help you choose a property that stays in high demand. Factors such as the property’s size, layout and features should align with the preferences of your target tenant demographic, whether they’re students, families or professionals. Again, this is an area of your research where an experienced local estate agent can be of massive value to you.

 

• Financial considerations beyond the purchase price

The initial cost is just the beginning. When calculating the overall investment, savvy investors factor in additional expenses such as tax, insurance, management fees and maintenance costs. Being mindful of these outgoings ensures you have a realistic expectation of your net return.

 

Property investment requires a considered, strategic approach informed by careful research and a clear understanding of your financial goals.

Working alongside trusted advisers like mortgage brokers and estate agents can improve your chances of success.

By focusing on these five fundamentals, you’re not just buying property but investing in a future of potential growth and income.

Get in touch with us today if you have any property investment questions.

 

*Disclaimer: The information in this article does not constitute legal or financial advice.

Planning to renovate your rental? There’s one thing you should know before you start pulling up carpets or ripping out cabinets.

 

It will help you avoid a costly and avoidable mistake that many landlords make, and it’s this.

 

Don’t let your emotions cloud your decision-making.

 

It sounds simple, but you’d be surprised how many landlords lose sight of the fact that they’re supposed to be making business decisions. As a result, they do one or more of these things:

• Spend more than they need to.
• Spend cash in the wrong areas.
• Wind up with a longer void period than necessary.
• Do a sub-standard job that requires repairs.
• Put off doing much-needed work.

 

Here are some tips to help you stay on track.

 

Identify your market – Don’t decorate to your personal tastes. Consider who will most likely rent your property – students, families or professionals – and renovate to suit this demographic. A bespoke kitchen might be justified if you’re targeting wealthy professionals, but not if you’re renting to students.

 

Neutral tones – If you’re yearning to make a bold interior design statement, do it in your own home, not your rental. Prospective tenants may not share your tastes and could be put off by your aesthetic choices.

 

Go beyond the cosmetic – Do the locks need fixing? Are the fences wobbly? Does the boiler need replacing? It can be tempting to blow your budget on sexy, eye-catching features, but don’t overlook the basics.

 

Family matters – If you have a strong emotional attachment to the property (perhaps it was your former family home), don’t let sentiment misguide you. You must separate any nostalgic feelings from your duties as a landlord.

 

Be practical – A rental will always be subject to wear and tear, so opt for durable products and steer clear of light wall colours and flooring that will get mucky quickly.

 

Be realistic – Not even the best tenants in the world will treat the property exactly as you would, so look for low-maintenance solutions. This is particularly relevant if you have outdoor space, as garden maintenance is a common cause of disputes.

 

Avoid false economies – While some landlords go overboard and spend too much, others don’t spend enough. For example, tiles are easy to clean and don’t attract mould, so it can make sense to tile the entire bathroom to prevent issues from arising.

 

Don’t be a DIY hero – Instead of paying a tradesperson to do work, some landlords consider it a personal challenge to do as much as they can themselves. This means work can take longer than necessary or it isn’t done to a professional standard.

 

If you’re a landlord, contact us here at Chamberlains for advice about investing your renovation budget wisely.

If talk between you and your partner this Valentine’s Day turns to living together, there are a few practical things you should know first.

 

Here at Chamberlains, we pride ourselves on being as helpful as possible.

 

But dishing out relationship advice is a step too far – even for us.

 

So, if you’re considering moving in with your partner, we’ll leave the big decisions and lovey-dovey stuff down to you.

 

However, if you decide to co-habit, we have some useful, albeit unromantic, advice for you.

 

It’s based on insights we’ve gained over the years from helping many couples set up home together.

 

Speak to your landlord

 

One option when moving in together is to start afresh in a new rental property. However, if you plan to move into your partner’s rented place or for them to join you, then you need to discuss this with the landlord. Be aware that you’ll need to get the landlord’s permission first, and they’ll most likely have to run a reference check.

 

Budget and bills

 

The good thing about living with someone is you can share the financial burden of renting. But you’ll need to have a frank conversation at the start to discuss how much you can afford to pay in rent and how you’ll split the bills.

 

Jointly liable

 

It’s worth understanding that when the two of you sign a tenancy agreement, you are both ‘jointly and severally liable’. This means that if, for example, your partner loses their job and can’t pay the rent, you could be liable to pay their share. The same goes for the upkeep and maintenance of the property. You’re both equally responsible.

 

Logistics

 

If you both already have your own homes, decide what furniture you’ll each take to your new property. It’s unlikely that you will have room for more than one sofa, bed or dining table, so you may need to give away or sell some big-ticket items. At this point, you may also get the home-making bug and decide to buy some items to turn your new place into a cosy love nest. In that case, it may be time to put your relationship to the test by taking a trip to Ikea. Good luck.

 

If you’re looking for a new rental property, contact us here at Chamberlains today.

In the winter, we’re guaranteed a few things.

It’ll be raining when we least want it to.

A local postie will still be wearing shorts, no matter how cold it is.

And condensation will appear at some point – often in our homes.

While you can’t do anything about the weather (or the postie’s clothing choices), you can take some simple steps to combat condensation.

 

We’ve come up with seven quick fixes that can dramatically reduce the risk of condensation, ensuring your home stays fresh and clean.

• Consider using portable dehumidifiers, particularly in high-moisture areas like kitchens and bathrooms. These handy devices can significantly lower moisture levels, creating less chance of condensation.

 

• Another daily habit to adopt is wiping down your windows each morning. This simple action removes condensation and prevents mould growth on windowsills – a common problem in many homes.

 

• Proper ventilation is key. Make it a routine to open your windows for at least 15 minutes daily. This practice allows fresh air to circulate throughout your home, reducing moisture and improving air quality.

 

• Maintaining a consistently warm indoor temperature is also crucial to prevent the cold surfaces that condensation loves to cling to.

 

• How you arrange your furniture can also impact air circulation. Ensure there is a gap of at least two inches between your furniture and external walls. This space allows air to move freely, reducing moisture build-up.

 

• Don’t forget the role of extractor fans. When cooking or showering, use these fans to remove excess moisture. It’s also a good idea to leave them running for 10-20 minutes after you’ve finished.

 

• Lastly, be mindful of where you dry your laundry. Drying clothes indoors without adequate ventilation can significantly increase indoor humidity. Whenever possible, dry your laundry outside or in well-ventilated areas.

 

Adopting these simple measures can play a crucial role in maintaining a comfortable, condensation-free home.

If you have any questions or need further advice about anything to do with rental properties, don’t hesitate to contact us. We’re here to help.

 

 

If you’re wondering what Guppies are (and we’re not talking about fish here) and what they’ve got to do with the property sector, let us explain.

 

The term ‘Guppies’ refers to tenants in the 18 – 39 age bracket who see themselves staying in the rental market for the long term.

 

The nickname comes from the phrase ‘Given Up on Property’ because Guppies don’t see home ownership on the cards for them for at least the next decade.

 

For some, this is because of the high cost of buying a property and the struggle to get a decent deposit together.

 

But for others, it’s about lifestyle. Some Guppies don’t want to be tied to a 40-year mortgage and the other demands of home ownership, such as repairs and maintenance.

 

Others in this group would rather rent in an area they love than move further afield to a more affordable (but perhaps less desirable) location.

 

So, how big is Generation Guppie? 

 

Zoopla estimates that 42% of Brits under 40 who don’t own a property have no plans to do so for at least ten years – hence they’re Guppies.

 

The property platform also notes that 40% of Guppies earn more than £60,000 annually.

 

Do Guppies make good tenants?

 

We wouldn’t be doing our job as letting agents if we didn’t state that all landlords should follow a rigorous tenant selection process (with relevant credit and reference checks).

 

But given that many Guppies are on good incomes and looking to rent for the long term, they could make ideal tenants.

 

So, what do Guppies want?

 

High-standard properties – Guppies seek a place to call home, not stop-gap accommodation. It’s important to them that a property is well-maintained and has a modern interior.

 

Responsive landlord – Young people (and from our point of view, anyone under 40 falls into this bracket) are tech-savvy and prefer to communicate through channels such as WhatsApp. When they raise an issue, they don’t expect to be waiting days for a response.

 

Pet-friendly homes – While many in Generation Guppie may not have children, they may want a pet or already be a doting pet owner. Flexibility around the issue of pet ownership will be seen as a real plus.

 

Upkeep – As we said earlier, for some Guppies, the lure of renting is not having to worry about the cost or stress of repairs and maintenance. This doesn’t mean they don’t care about these things, but they expect the landlord to be diligent and proactive.

 

For help managing a rental property and sourcing good-quality tenants, contact us at Chamberlains today.

There’s no doubt that 2023 was challenging for the private rental sector, but looking ahead, landlords have plenty of reasons to be cheerful.

 

While no one knows precisely what will happen in 2024, economists believe interest rates and inflation have peaked, and that the economy will continue to rally.

 

Here’s an idea of what forecasters predict for the next 12 months*.

 

Demand

 

The long-term imbalance between supply and demand in the property market shows no sign of abating. So, the strong levels of demand and high occupancy seen this year look set to continue. Zoopla predicts rental growth of 5% to 6% in 2024 (this year, it nudged 9%).

 

Changing search criteria

 

As a result of the increased cost of renting, there has been a rise in renters sharing with other people, looking for homes in cheaper areas and looking at smaller properties. The latter is part of a long-term trend. The Resolution Foundation says that over the past two decades, there’s been a 16% reduction in floor space per renter.

 

Energy efficiency

 

The high cost of heating and powering a home means many tenants are paying closer attention to the energy efficiency of a property – a trend expected to continue into 2024. About 57% of renters say they’d be less likely to look at a property if it had a very poor energy rating (Shawbrook Bank).

 

Mortgages

 

After several rises in interest rates this year, the tide appears to be turning. The Bank of England base rate is currently stable and could fall to 4% by the end of 2024 (Source: Berenberg Bank) and 3% by the end of 2025 (Source: Capital Economics).

 

It’s unlikely we’ll see a return to the historic lows we saw a few years ago, but many will welcome the fact that the mortgage market appears to be steadying.

 

Meanwhile, landlords should also expect to enjoy a wide product choice when arranging a mortgage. Back in October 2022 (when we were all reeling from the ‘mini’ budget), there were 1,000 buy-to-let fixed-rate and variable products on the market. A year later, that figure has grown to 2,500 (Source: Moneyfactscompare.co.uk).

 

Inflation

 

This year, inflation had a noticeable effect on the cost of materials and labour for repairs and renovation. However, change is afoot. Price rises are slowing (inflation was 4.6% in October, down from 6.3% the month before). Number crunchers at the Bank of England expect inflation to be 2% by the end of 2025.

 

If you’d like more insights on the local rental market, contact us here at Chamberlains today.

 

*None of us has a crystal ball. The figures in this article are predictions, not guarantees.

 

Forecasters predict this winter will be cold and dry – making it likely we’ll get lots of snow.

 

While this is excellent news if you’re a skier, if you’re a landlord, it means there’s no room for complacency when it comes to maintenance and repairs.

 

Freezing temperatures can cause all sorts of property damage, so it’s vital that your rental is ready for the tough months ahead.

 

Here’s a list of seven ways to winter-proof your property to avoid expensive repair bills and ensure that you and your tenants can rest easy on cold, dark nights.

• Schedule a chat with your tenant and ask them if any minor issues need looking at (better to hear about problems now and rectify them). Also, check your tenant can locate the stopcock. Explain that if a pipe bursts, they should turn off the mains water to minimise damage.
• Have the boiler checked by a qualified professional and bleed the radiators so that they’re working efficiently.
• Cover pipes that are located outdoors or in colder areas of the property with lagging so that they don’t freeze. A frozen pipe can mean no hot water or heating (a problem in itself), but it can also cause a bigger issue. If the pressure in the system builds up, the pipe could burst and cause extensive damage to floors, walls and ceilings.
• Clear out the gutters and remove any leaves, twigs and moss. Also, check that the water is running off – you don’t want it building up in the guttering or running back onto the property. If this is the case, the water will seep into brick and timberwork and cause dampness.

 

• High winds can wreak havoc on fences and sheds, so ensure that everything is fixed to the ground. Also, look out for wobbly gates or shed doors that don’t close properly (as they’ll flap about when it’s windy).
• Check over your landlord insurance and note down the renewal date (just in case it’s due to expire over the holiday period). Ideally, your policy will cover flooding, water leaks and storm damage.
• If you have outdoor lighting, ensure it’s in good working order. It’s reassuring for your tenants to see what they’re doing if they come home from work in the dark.

 

If you’d like more advice about managing a property over winter or to learn about our property management services, contact us here at Chamberlains today.

 

 

In today’s climate, it’s easy to paint landlords with the same brush – viewing them solely as money-grabbing opportunists.

As a letting agency that’s part of a network of like-minded agents, we get to see the rental business’s good, bad and ugly side.

Yes, there are some unscrupulous, greedy landlords. We do our best to avoid these.

However, many landlords strive to do the right thing for their tenants.

We’ve gathered some inspiring tales that highlight the, more often than not, unpublicised acts of kindness that landlords have done and continue to do.

• In one remarkable situation, a landlord had ten offers for a rental property. He could have easily let the highest bidder win, but instead, he offered the home to a family for £100 less than the asking price because their urgent need moved him.
• When the pandemic hit, many landlords nationwide rose to the occasion. We heard of several who voluntarily lowered rents to ease the financial burden on their tenants. No questions asked, no fuss made ­– just good-hearted consideration during a trying period.
• We’ve also heard about landlords who’ve extended their empathy to mental health. A tenant, struggling with numerous life events, fell behind on rent. Instead of eviction, the landlord gave him time and assisted with funding for private counselling.
• One landlord went above and beyond in an international context – providing a Ukrainian family, who fled a life-threatening situation, a rent-free property for a year, potentially forgoing £24,000 in annual rent.
• Then, there are those annual gestures that warm the heart. Like the landlord who offers half-price rent every December or others who’ve waived a month’s rent for tenants undergoing treatment for serious health issues, such as chemotherapy or heart surgery.

These accounts come from all corners of the UK, and we have come across similar local stories. They show that not all landlords fit the negative stereotype often portrayed in the media.

They remind us that many landlords view their role not just as a business venture but as an opportunity to make a genuine, positive difference in someone’s life.

To these landlord legends, we say a heartfelt ‘Thank you’.

You’re renewing our faith in human nature, one rental agreement at a time.

Thanks for reading.