How To Manage a Rental Property Portfolio in the Wirral

The Wirral, with its proximity to Liverpool and beautiful coastal areas, presents a fantastic opportunity for property investors. However managing a rental portfolio, even in a desirable location, requires organisation and knowledge. This blog post will guide you through the key aspects of managing your Wirral rental properties, empowering you to maximise returns and minimise headaches.

Manage Your Wirral Rental Property Portfolio By Following These Steps

1. Setting Yourself Up for Success

Before diving in, consider these foundational elements:

• Business Structure: Decide if you’ll operate as a sole trader, limited company, or limited liability partnership. Each has tax and legal implications. Consulting an accountant is wise.
• Financial Planning: Create a budget for each property, factoring in mortgage payments, maintenance costs, insurance, and potential voids (unoccupied periods).
• Legal Compliance: Familiarise yourself with landlord and tenant laws in the UK{external link), including the Housing Act 1988 and the Energy Performance Certificate (EPC) requirements.

2. Finding the Right Tenants

The quality of your tenants significantly impacts your experience. Here’s how to find reliable individuals:

• Thorough Screening: Utilise referencing agencies to verify a tenant’s credit history, employment status, and previous rental experiences.
• Clear Communication: Present a professional tenancy agreement outlining expectations for rent payments, property maintenance responsibilities, and communication protocols.
• Right Fit for the Property: Consider factors like the number of bedrooms and desired tenant demographics (e.g., families, professionals) when selecting tenants.

Wirral Homes offers a reliable and comprehensive tenant-finding and tenant-reference screening service. We conduct viewings and set up the Assured Shorthold Tenancy Agreement (AST).

3. Streamlining Rent Collection and Expenses

Efficient financial management is crucial. Here are some tips:

• Utilise Online Platforms: Many online platforms facilitate rent collection, automate reminders, and provide secure payment options.
• Separate Accounts: Open a dedicated bank account for your rental income and expenses. This simplifies bookkeeping and tax filing.
• Budgeting for Maintenance: Allocate a portion of your rental income for repairs and upkeep. Anticipate potential issues and prioritise preventative maintenance.

Wirral Homes provides a rent collection service and issues you with monthly statements as part of our full property management service. 

4. Property Maintenance and Repairs

Maintaining your properties protects your investment and ensures tenant satisfaction:

• Regular Inspections: Conduct periodic inspections (with tenant consent) to assess the property’s condition and identify any maintenance needs.
• Reliable Contractors: Develop relationships with qualified and responsive contractors for repairs, plumbing, electrical work, and other services.
• Emergency Plan: Have a contingency plan for handling emergencies like plumbing leaks or heating issues outside of regular business hours.

5. Legal Considerations and Regulatory Compliance

There are legal aspects to navigate as a landlord:

• Tenancy Agreements: Ensure your tenancy agreement adheres to current regulations and outlines your rights and responsibilities as a landlord, along with those of your tenants.
• Deposit Protection: By law, you must protect tenants’ deposits in a government-backed tenancy deposit scheme.
• Health and Safety: As a landlord, you are responsible for ensuring the property is fit for habitation and meets gas, electrical, and fire safety regulations.

Wirral Homes provides a comprehensive selection of landlord safety certificates & testing to ensure your compliance. 

6. Considering Professional Property Management

As your portfolio grows, managing everything yourself might become overwhelming. Consider these options:

• Letting Agents: Letting agents handle tenant sourcing, rent collection, property maintenance, and legal compliance. This comes at a cost, typically a percentage of the monthly rent.
• Property Management Companies: These offer a more comprehensive service, including legal advice, financial management, and tenant liaison services. Fees typically reflect the increased level of service.

Conclusion

Managing a rental property portfolio in the Wirral requires planning, organisation, and a commitment to providing quality housing for your tenants. By following these tips and leveraging the resources available in the Wirral, you can build a successful and rewarding property investment strategy.

By following these comprehensive steps and staying informed on your legal responsibilities, you can confidently manage your Wirral rental portfolio.  

However, if you’d prefer a hands-off approach, Wirral Homes can help. We are experienced portfolio managers with a proven track record of maximising returns for our clients. We offer a range of services, from tenant screening and rent collection to maintenance coordination and legal compliance.  

Contact Wirral Homes today for a free consultation and discover how we can take the weight off your shoulders and ensure your Wirral property investments reach their full potential.

Additional Resources

• National Landlords Association (NLA): https://www.nrla.org.uk/
• Wirral Council – Landlord & Tenant Information: https://www.wirral.gov.uk/housing/housing-information-and-advice/private-landlords-and-managing-agents
• The Property Ombudsman (TPO): https://www.tpos.co.uk/

How to Change Letting Agent: A Comprehensive Guide for Landlords in the Wirral

Are you feeling a bit underwhelmed with your current Letting Agent? Are you wondering how you go about switching to a new agent? The good news is that whether you have a single property or a large portfolio of properties switching your letting agent in the Wirral or anywhere else in the UK might be easier than you think.

Why Consider Switching Letting Agents?

Switching agents can be a smart move for various reasons:

• Fee Increases: If your current agent’s fees have gone up and you’re doubting the value for money.
• Difficulty Finding Tenants: If your well-located, attractive property is still vacant, it might be due to your agent’s lacklustre efforts.
• Poor Service: Non-responsiveness or rudeness is a common reason landlords look elsewhere.

How to Move Letting Agents

Step 1: Check Your Contract

First, review your contract to understand any limitations or notice periods. The terms may vary based on whether it’s a let-only or managed service. Also, check for any termination periods.

Step 2: Find a New Letting Agent

When looking for a new agent:

• Engage with local agents and assess their tenant sourcing and property management skills.
• Seek a good professional rapport.
• Read reviews and seek recommendations.
• Ensure agents are licensed appropriately.
• Ideally, find a new agent before leaving the old one, as they may manage the switchover.

Step 3: Give Notice

Notify your current agent in writing of your intent to terminate the contract. Inform your tenants of the change, and obtain their contact details from your agent. Secure confirmation and details of any exit fees from your current agent.

Step 4: Collect Keys and Paperwork

Gather all necessary property paperwork, safety certificates and keys. Ensure the tenant’s deposit is correctly transferred or managed.

Do You Have A Tenancy Agreement In Place?

It’s important to have a tenancy agreement in place between landlord and tenant. If you don’t already have one in place we can help. As part of our let-only and full management services, we offer a tenancy agreement set-up service. Please get in touch if we can help you with this. 

Thinking Of Changing Your Wirral Letting Agent? 

Switching letting agents can bring fresh perspectives and improved services to your rental properties, whether you’re a new landlord or managing a growing portfolio. By carefully selecting and transitioning to a new letting agent, you can enhance the success and profitability of your rental business.

If you’re a landlord with property in the Wirral, why not explore our range of services to find out how we can support you in managing your rental properties:

• Landlord Investment Services: We can help you maximise your Buy-to-let investment portfolio with our core services for property investors.
• Property Management Services: From Let Only to Full Management we have a solution that fits your needs 
• Tenant Finding Services: Expert assistance in finding reliable tenants for your property.
• Rent Collection Services: Efficient systems for seamless rent collection.

Contact us to learn how we can help you optimise the management of your rental properties, no matter the size of your portfolio.

Frequently Asked Questions

Can You Change Letting Agent Mid Tenancy?

Yes, as the agreement is between you, the Landlord and the tenant. The agency simply manages the agreement. However, it’s always wise to check your contract first.

How Easy Is It to Change Letting Agents?

Generally, it’s straightforward, as most new agents will handle the process.

How Do I Find a Letting Agent?

Do your research, read reviews, and speak to several agents to understand their offerings.

How Do I Give Notice To A Letting Agent?

After deciding to end the contract, you must give a written notification to the letting agent. This notification can be sent through email or as a physical letter, and it should specify the date on which you intend for the contract to terminate.

Signs of Slowing Growth Despite Double Digit Capital Appreciation in May

House prices increased 0.9% month-on-month over April in tenth consecutive month of growth according to building society Nationwide, despite growing economic uncertainty and ongoing cost-of-living crisis.

As we’ve reported over the last few months, the slowing growth was to be expected as the year progressed, though an expected increase in interest rates from the Bank of England is likely to bring the most significant drop in growth.

However, Nationwide’s figures suggest that May was the tenth successive month of growth, meaning that the annual growth of house prices has remained in double digits overall.

Nationwide also commissioned a report to add context to these figures, about which Chief Economist, Robert Gardner said the following:

“May saw a slight slowing in the rate of annual house price growth to 11.2%, from 12.1% in April. Prices rose by 0.9% month-on-month, after taking account of seasonal effects – the tenth successive monthly increase, which kept annual price growth in double digits.

“Despite growing headwinds from the squeeze on household budgets due to high inflation and a steady increase in borrowing costs, the housing market has retained a surprising amount of momentum. Demand is being supported by strong labour market conditions, where the unemployment rate has fallen towards 50-year lows, and with the number of job vacancies at a record high. At the same time, the stock of homes on the market has remained low, keeping upward pressure on house prices.

“We continue to expect the housing market to slow as the year progresses. Household finances are likely to remain under pressure with inflation set to reach double digits in the coming quarters if global energy prices remain high. Measures of consumer confidence have already fallen towards record lows. Moreover, the Bank of England is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates.”

What the report says

Conducted by Censuswide on behalf of Nationwide, the report aimed to add some context to the housing price growth year on year, but also to the slow down. While the report found little surprising around various economic pressures, it did discover that, rather than sell up, 54% of respondents were looking to make improvements to their properties, with more than a third looking to add more space, but almost a third looking for energy efficiency improvements.

What this means for Wirral landlords

As we stated at the beginning of the boom in property prices, Wirral landlords are in a strong position based on capital appreciation versus the cost of investment. Wirral has consistently outperformed the market average for property price growth over the course of the last three years, while rental yield has remained high versus investment.

With rental demand still high, this leaves Wirral landlords in a unique position – as one of the few places in the country where vital modernisation and efficiency work required on aging housing stock could well be paid for by refinancing existing portfolios to take advantage of capital appreciation.

However, the time to do this is running out – with interest rates set to rise multiple times in the coming year, the aim for anyone wishing to take advantage of capital appreciation to meet changing efficiency regulation should do so quickly to lock in lower interest rates, a move which could see them better prepared to ride out any potential economic that arrives with the coming recession.

The TLIC and NRLA Have Their Say on the Future of the Private Rental Sector

The NRLA promises a ‘sensible, straightforward solution’, while the TLIC wants to ‘find a balance between encouraging investment in the sector to increase available homes and ensure they are of consistent good quality’.

What is the Renters’ Reform Bill?

Aiming to address growing concern around the lack of social housing, the difficulties faced by a generation feeling that home ownership is unattainable and a swathe of media coverage of rogue landlords throughout the UK, the Renters Reform Bill will ‘improve the lives of millions of renters by driving up standards in the private and socially rented sector’, according to the Department for Levelling Up, Housing and Communities.

The announcement of the bill features the following key points:

• The bill represents the ‘biggest change to renters law in a generation’ and will look to improve conditions and rights for millions.
• Legislation will aim to improve quality for private renters by extending the Decent Homes Standard to the sector for the first time, as well as providing all renters the legal right to a safe, warm home.
• Section 21 ‘no fault’ evictions will end in an effort to protect tenants from unscrupulous landlords, while also strengthening the legitimate grounds available for landlords to take back their property.
• New legislation will be passed for social renters, with regular, rigorous inspections and providing stronger powers to tackle failings by social housing landlords.

What the TLIC are saying

The Lettings Industry Council (TLIC) report deals predominately with how to deal with the end of Section 21 notices, and what can be done to make a success of the move for both landlord and tenant alike. Among the key recommendations the report makes are the following:

1. All tenancies should have a written tenancy agreement or, at least, a written Statement of Terms in place, with the Model Tenancy Agreement used as the default agreement where there is none.
2. The route for dealing with ‘abandonment cases’ needs to be clarified, removing the need for recourse to the court where a tenant has clearly already left the property.
3. Cases with high or persistent rent arrears should be prioritised, dropping review hearings, while more judges should be employed to further reduce the workload and strain on the courts.
4. Other than where there is clear evidence the tenant cannot afford to pay the rent; mediation should be a recommendation in all cases. This could reduce court hearings by up to 25%.
5. Government should consider providing its own bond/loan solution or offer financing for local authorities to issue their own bond guarantees for tenants on Universal Credit and/or in receipt of specified benefits. This would ensure that the deposit problem is specifically targeted at the right demographic.
6. Using Unique Property Reference Numbers (UPRN) would allow for a single, searchable source of documentation for rental properties.
7. A Regulator for Regulation to help simplify and centralise a host of complicated processes and provide tenants with a single portal which then signposts where they need to go.

Chair of The Lettings Industry Council, Theresa Wallace, released the following statement:

What the NRLA are saying

Focusing on a subject we’ve mentioned previously – the ‘Property Passport’, the NRLAs main proposal ties in nicely with points six and seven of the TLICs recommendations – allowing for the centralisation of documentation and the simplification of the process of proving compliance to both government and to tenants, which would then also make enforcement easier in turn.

The report, linked to in a blog by Chief Executive, Ben Beadle, makes the point that the overwhelming majority of properties in the private rental sector are already compliant with regulations and that their passport scheme would make rooting out the rogue elements in the sector far easier while also simplifying the process of checking out prospective properties and landlords far easier for tenants.

In the conclusion of the report, the NRLA states the following:

• The drive to ensure private rented homes are decent is one which the NRLA fully supports. Most landlords already provide this. The problems lie in a misleading assumption that the sector is under regulated.
• As the Government considers its plans, it needs to accept that, as outlined in this paper, the standards expected of the sector are already there. What is needed is an improved framework within which landlords can clearly demonstrate compliance with those standards, backed up by robust enforcement of them.
• Our proposals would achieve these twin objectives and the NRLA looks forward to engaging with the Government and others as we work to ensure the sector works for both tenants and responsible landlords.

However, the foreword – by Beadle and Jodie Berg OBE – offers a fairly comprehensive and concise argument in favour of the scheme, stating:

What this means for Wirral landlords

As things stand, both organisations are still at the lobbying stage – but with what appear to be a fairly unified message, and some realistic recommendations, the hope for local landlords (and the industry more broadly) is that it could stave of an increase in regulation in favour of an increase in accountability and a refinement of existing processes.

As with most things in politics, such reports and bills move slowly, but it’s interesting to see what seem to be workable proposals from representatives of the private rental sector in advance of the bill itself – and we can only hope that common sense prevails and further legislation and legislative changes can be avoided and existing ones improved upon for the benefit of landlord and tenant alike.

The sector is in what seems to be a constant state of flux at the moment, with reports, reviews, laws, legislation and regulation cropping up at speed. Need some help keeping up? Contact Us to see what our experts can do to help.

Zoopla’s Q1 2022 Rental Market Report Digested

With the average let time for a property remaining at around a fortnight on average, the demand for properties has remained stable despite annual increases hitting almost 16% in London and just over 9% excluding the capital.

What the report says

Overall, the Q1 report provides no great surprises for anyone that has read previous reports – but after a couple of overly exciting years for a lot of sectors, predictable ongoing trends feel like a relief. The report does touch upon the historic levels of inflation, but mostly in relation to rental growth – so it has to be pointed out that affordability is used here only as the report itself uses it (as a proportion of average income).

The report covers the predicted return of rental value in city centres, but also touches upon the trend of tenants extending their stay at rental properties as a way to combat inflating rental prices elsewhere – with landlords saving on void periods and tenants benefiting from stable rental prices. The report states that the ‘average time between rental listings coming to the market has risen by 5 months, from around 1 year in 2017 to 75 weeks in March 2022.’

The outlook, the report states, is that the pent-up demand and threats to affordability from national economic conditions will likely begin to slow rental growth through Q2 and Q3 – but points out that there are structural issues in the private rental sector that will continue to exacerbate problems with rental growth, as demand is hugely outstripping demand, while new investment has fallen following tax changes introduced in 2016.

Gráinne Gilmore, Head of Research at Zoopla states that ‘[high] levels of demand amid constrained supply is still putting upward pressure on rents, but affordability pressures will mean an easing in rental price growth through the rest of 2022.’

Key takeaways

• Rental growth for new lets hit 11% in Q1 2022
• Rents have recovered from last year’s 1% fall
• Until Q1 2022, earnings and/or inflation have outpaced rental growth since 2016
• Rental demand is worse in city centres due to returning students, office workers and international demand
• Rents now average at 37% of gross income for a single earner, and 18.5% for sharers
• Tenancy lengths are rising, possibly due to ‘rolling over’ contracts with lower rent rises
• Rental growth will slow in H2 as ‘bounce-back’ eases and economic challenges take effect

What this means for Wirral landlords

As things stand, though we’re in the middle of general economic turmoil, the private rental sector is performing relatively well – and with Wirral rental prices generally lower than other areas of the country, remaining below 30% of the average monthly income, and Rightmove reporting continuing capital appreciation despite inflation, there are reasons for landlords to remain cautiously optimistic that the sector may avoid at least the early effects of the country’s economic difficulties.

The year ahead holds a number of challenges for landlords – there are multiple regulatory and legislative changes covering everything from environmental concerns to tax, and there are unpredictable economic conditions arising from geopolitical issues, but for the moment it seems as though Wirral landlords, and tenants, should be able to ride out the worst of it with some careful planning.

Need a little help keeping up to date with industry trends? Contact Us and speak to one of our experts to see what we can do for you.

First Details Emerge of New ‘Private Rental Portal’ for England

With more information on promised reforms slowly surfacing, it was no surprise that the Queen’s Speech would feature some new information for landlords and tenants in England, but details remain sketchy and besides some basic information, there was little concrete information.

What is the Private Rental Portal?

Simply put, the private rental portal (PRP) is likely to be a searchable database of all rental properties in England, along with information on the owner of the property, the company managing it and contact details for the appropriate individual or company.

What additional information will be provided remains to be seen, but it is likely to at least cover areas of legislative compliance such as safety certification, energy efficiency and issues related to the ‘Decent Homes Standard’. In this regard, it will be interesting to see whether the ‘property passport’ proposed by the head of the National Residential Landlords Association (NRLA), Ben Beadle, will play a part in available documentation. On the subject of the passport, Beadle had this to say:

As part of an equivalent system in Scotland, landlords on the register are required to display their registration number on all property listings in order to allow prospective tenants to easily check the history of both property and landlord – it would be strange if this requirement were not duplicated in England. For the PRP to achieve its aims, there needs to be a significant amount of useful information available to help both tenants and local authorities.

David Holmes, senior policy adviser for the private rented sector at the Department for Levelling Up, Housing and Communities (DLUHC), said of the portal:

While the private rental sector has seen many recent changes to legislation as punitive, there are clear advantages to this over the more costly licencing initiatives that have attempted to clear the industry of bad actors. However, much of its usefulness to both the industry and to tenants will rely on its implementation.

What this means for Wirral landlords

For the moment, there are no imminent changes, but, in the medium-term, there will likely be slightly more bureaucracy to content with. Again, however, how much will depend on implementation. The correct systems could see integration with changes brought about by the ‘making tax digital’ initiatives, with property passports handled in a central location and managed from a dashboard, while poor implementation could see weeks of photocopying and sending documents back and forth to various government offices.

Such a huge change, combined with the recently discussed loss of more than ninety thousand civil servants, seems to be suggestive of a government that has failed to give sufficient thought to the project before announcing it for the headlines. As such, it would be beneficial for landlords to start ensuring that they are maintaining a well organised and, where possible, duplicated file of relevant documentation in an effort to plan for the worst while the whole sector hopes for the best.

Need help making sure your paperwork is up-to-date and futureproofed against changing legislation? Contact Us to see how we can help take the pressure out of your portfolio.

The Best Ways to Reach New EPC Standards and Improve Property Value

With stricter guidelines requiring all rental properties to reach a rating of C or above by 2025, and stricter guidance likely in the years after, one method of offsetting the cost of the required work is to boost the value of your portfolio using eco improvements.

According to a government consultation in 2021, almost two thirds of private rental stock had an EPC rating of D or below, meaning that many landlords face estimated costs of between £17,00 and £27,000 to raise the efficiency rating of their properties to the minimum allowable standard. As a result, it will involve some smart work from landlords to mitigate bills it could take two or three years to cover.

What the report says

The report is largely targeted at the owner-occupier market, but the majority of the eco-improvements remain valid for landlords. The section of the report in question lists the average “perceived value increase UK homebuyers would attribute to each of the eco improvements” following a “nationwide survey [of] 2,000 UK-based homeowners and residents”.

We’ve taken this a step further by sourcing the approximate average cost of each of these improvements and their potential EPC impact to allow a better overall judgement of the improvements a landlord could make prior to the tightening regulations. What should be noted, however, is that there needs to be work undertaken by central government to update how scores are calculated – as a recent article from Which? states – EPC ratings currently favour gas heating as the unit cost of gas has historically been lower, something which has closed since the lifting of price caps.

The below table excludes the garden improvement, appliance replacement and electric charging point improvements mentioned in the report as they don’t impact EPC ratings.

As we can see from this, the biggest gains are likely to be the addition of renewable energy sources, triple glazing and insulation – all of which combined would cost a maximum of £35,000, could improve property value by up to £50,000 and improve the EPC score of a property by up to 65 points, the equivalent of an E – A improvement.

EPC point tiers

What this means for Wirral landlords

While it’s unlikely that value improvements would be directly cumulative, it is similarly unlikely that most landlords would need to perform all upgrades to achieve the maximum 30 points they’d need to go from a low C to a low E. As such, the best approach is likely to be to have the property reviewed (unless you’ve already done so in the last few years) and to pick and choose the improvements most likely to deliver a return on investment and deliver the required points increase.

One thing to remember, in addition to the EPC uplift of such improvements, is the possible increase in rental yield that an efficient property can provide. For the next few years, landlords that can act quickly will be offering huge savings in energy bills versus similar properties on the market, and that can come with a premium that will help to recover the costs.

If you’d like some help to keep up to date with changing legislation and regulation, you can Contact Us to see what we can do to help take the stress out of managing your portfolio.

Government ‘Regulation of Private Renting’ Report Released

With recent legislative changes appearing punitive to many landlords and with tenants and tenant charities claiming that not enough has been done, it should be welcomed that the report from The Department for Levelling Up, Housing and Communities seems to agree with both.

What the report says

The report, which is extensive, begins with an introduction that is firmly damning of a The Department for Levelling Up, Housing and Communities (referred to as ‘The Department’) and a sector that has been improperly regulated for far too long, leading to confusion, complexity and an inability for local authorities to properly police the legal obligations of landlords in their areas. This is followed by six ‘conclusions and recommendations’:

Conclusions

• It is too difficult for renters to realise their legal right to a safe and secure home.
• Local authorities do not have the capacity and capability to ensure an appropriate level of protection for private renters.
• The Department is not doing enough to support local authorities to regulate effectively.
• Local Authorities are constrained by the Department’s approach to licensing landlords.
• The Department lacks good enough data to understand the nature and extent of problems renters face.
• The Department’s forthcoming White Paper offers an opportunity for significant improvement to the private rented sector.

Recommendations

• Alongside its Treasury Minute response the Department should write to the Committee to set out how it will use its planned reform programme to:
  • Better support renters to understand what their rights are; and
  • Improve renters’ ability to exercise their rights by learning from complaints and redress mechanisms used in other consumer markets.
• The Department should conduct a realistic assessment of the resources needed for local authorities to regulate effectively, with consideration given to the size, types and quality of private rented properties and the demographics of renters. The Department should write to us within the next six months with an update on the outcome of this assessment.
• The Department should take a more proactive approach to supporting local regulators and sharing good practice. To do so, it should learn from other consumer protection systems that provide central intelligence and support to local regulators.
• As part of its planned reforms, the Department should assess whether current arrangements for licensing schemes are working, and whether alternative arrangements may be more efficient and effective.
• The Department should develop a coherent data strategy to identify and collect the data it needs to:
  • understand the problems renters are facing; and
  • evaluate the impact of legislative changes.
• Once complete, this strategy should be shared with this Committee and the Levelling up, Housing and Communities Committee.
• As part of its planned reforms, the Department should ensure it has a full understanding of the cumulative impact of proposed changes on tenants, landlords and the housing market as a whole. In doing this, it should work closely with other departments, including formally where appropriate, to understand how the reforms may affect or be affected by other policy areas such as benefits and tax.

Overall, the bipartisan report reasonably addresses some of the many and varied issues currently faced by both landlords and tenants in the UK. This is nowhere more evident than in the comment:

Due to the Department’s lack of robust data, it does not have a good understanding of the impact of these changes on both landlords and tenants.

The report consistently points out that introduction of legislation has been disjointed and has consistently led to poorly understood and complex regulatory landscapes that change from one area to another both in implementation and enforcement.

While long overdue, this should be a welcome call for the proper collection and analysis of data so that the broader impact of new legislation on tenants, landlords and the housing market will be better understood. Ben Beadle, Chief Executive of the National Residential Landlords Association, released the following statement in response to the report:

What the report means for Wirral tenants and landlords

Despite many positives in the report, the end result is – at this point – simply a call for further reports. However, though things often move slowly in the world of politics, overcoming the inertia to get the ball moving initially is a huge victory.

In the mid-term, though, there is a lot to be positive about as the report makes official observation of the many complaints that landlords and tenants throughout the UK have long made. The advice for regulation and enforcement to model itself on more successful areas such as consumer protection is a comparatively progressive move, while calls for there to be further (or any) consideration of how regulatory and legislative changes can impact both the sector more broadly, as well as other policy areas such as benefits and tax.

One thing (mostly confirmed by a recent job advert) which now appears a virtual certainty, is the landlord register which, as the above report found ‘[an] estimated 13% (589,000) of privately rented homes in England have at least one category 1 hazard—a serious threat to health and safety that landlords are legally obliged to address’, should prove a positive for tenants nationwide.

What happens next is a wait of six months to see what the required government response is to the assessment of local resources required for proper regulation (the one recommendation carrying a time limit) and to see whether the second requested report is allocated to a committee.

These things seldom provide concrete details, but the recommendations here are generally of the kind that both landlords and tenants have both requested for too long.

Want to make sure you know your rights and responsibilities in an everchanging industry? Contact Us to see how our experts can help.

March Sees Largest Single Month Rise in House Prices for Six Months

While consistent upward pressure on house-prices will have negative effects on first-time buyers, it may provide welcome relief for landlords looking for ways to fund renovations and upgrades required to meet new energy efficiency standards.

Regular readers of the stories we read here will be familiar with the huge rise in Wirral property prices that was supercharged by the pandemic, and our commentary that this would likely continue to at least the middle of the year. While things are in constant flux from a macro-economic and political level, it seems that upward pressures have, so far, been sufficient to overcome several opposing forces (such as the reduction of buying power caused by recent excessive energy bill increases and poor wage growth).

Quoted in the Financial Times, Chief Executive of mortgage broker SPF Private Clients, Mark Harris, said that “lenders are still keen to lend and have plenty of cash available to do so, enabling borrowers who are maybe sitting on considerable savings accrued during lockdown to stretch themselves to afford a bigger property”. This is only part of the story, however, as buyers are not the only factor to consider – as the Managing Director of Halifax, Russell Galley, stated:

As we’ve made mention previously, however, such price increases are unlikely to continue at such a pace for the rest of the year and, as various economic and global issues begin to bite, the anti-inflationary forces are likely to see house prices stabilise in the second half of 2022. On this subject, Galley had this to say:

What this means for Wirral landlords

As stated, in the short term this can offer landlords some short-term relief – the region has seen above average increases in property prices and that increase in capital value, if leveraged correctly, could help to offset the potentially costly improvements to rental properties required to meet changing EPC requirements.

With interest rates still extremely low considering inflationary pressures, landlords considering using capital increase to make improvements should do so fairly quickly, however. Long periods of inflation will tend to lead to higher interest rates and while things are unlikely to reach the levels of the 80s and 90s, the moment is right for landlords to make the most of low interest rates and high levels of capital value growth to make improvements that will benefit both their portfolio and their tenants in the long-term.

In addition, with Wirral properties still generally priced below the UK average, there is also a strong argument for investors from outside the region to add Wirral properties to their portfolio.

We’re at a moment when current affairs are tough enough to keep up to date with, without the additional need to follow the fast-moving world of the property market. Considering seeking some help making the most of your property portfolio? Contact Us to see what our experts can do for you.

Tenancy Deposit Scheme (TDS) Report Indicates Confusion Around Garden Maintenance

Since the COVID-19 pandemic, outdoor spaces have become a major factor in the decision-making process for tenants during their property search, but a recent poll by the TDS has found that landlords and property agents are unsure as to whom the responsibility falls for upkeep.

What the poll says

According to the annual statistical briefing from the TDS, Gardening has been among the top five causes of deposit disputes for the better part of a decade and has been a reason for dispute in around 15% of cases throughout that time.

As a result, the TDS polled more than 2000 landlords and letting agents (combined) to measure the general attitudes of the sector regarding garden maintenance. While the results aren’t exactly surprising, with around three quarters of respondents placing the responsibility solely on the tenant, what was shocking was how many of those surveyed did not provide detail as to what is required of tenants in this respect – with 46% not providing any details at all.

Most common causes of dispute

The TDS poll also details the common causes of garden related issues which led to a deposit dispute. 27% of landlords surveyed had raised a dispute of which the following were the most common complaints:

• 75% were listed as ‘allowing weeds to grow’
• 41% were listed as ‘damage to fencing’
• 68% were listed as ‘overgrown lawns’
• 65% were listed as ‘tenant did not trim back trees or bushes’

Lack of inspection

Despite this, a fifth of landlords do not carry out a mid-tenancy inspection of outdoor areas – missing the opportunity to address problems early and the possibility of avoiding a dispute altogether.

What this means for Wirral landlords

The main consideration when setting up a tenancy agreement should be clarity for all parties. While section C of the Model Agreement for an Assured Shorthold Tenancy includes reference to the garden and a tenants obligations, landlords should be making certain that the agreements they are using detail the expectations for upkeep clearly. The agreement should offer guidance on upkeep, while the landlord should also ensure that communication is maintained during the tenancy as this will help to avoid unnecessary disputes.

For this reason, we recommend including gardens and outdoor spaces in your property and inventory reports and ensuring that, whether or not you’re using the Model Agreement for an Assured Shorthold Tenancy, that your initial contract is clear about the responsibilities of each party – as this will avoid the majority of disputes and quickly settle the rest.

Want help navigating the rapidly changing regulatory landscape, or need someone to take the stress out of managing a property portfolio? Contact Us today to see what we can do to help.

VAT Cut on Solar Panels and Heat Pumps Welcome, But Not Enough

With rising prices of energy and essentials set to see the majority of the UK tightening their belts, and the Office of Budgetary Responsibility (OBR) predicting the largest fall in living standards for more than seventy years, landlords face increased EPC requirements with little help coming from the spring budget.

With the country seemingly at the centre of several converging financial crises, there was a lot of expectation for Sunak’s spring statement to provide help for the nation to get through the latest in an ever-lengthening line of turbulent moments in global finance.  As energy bills climb, and potential grain shortages caused by the war in Ukraine look likely to increase prices and exacerbate shortages caused by Brexit, the country really could have used a budget that alleviated some of the pressure. Sadly, it didn’t get it.

Cuts to VAT on green products, for example, will help a little; but, as landlords across the UK look to improve the energy efficiency of millions of properties to reach increased EPC requirements, there are still likely to be financial constraints on the ability of landlords to make those improvements – and further issues caused by availability.

The Director of Energy Efficiency Consultants Murton & Co, Jonathan Murton, for example, has stated that the rise in energy prices had already increased demand for products and added:

In addition, many landlords that have already seen tenants accruing rent arrears (partially as a result of the pandemic and central government’s inaction when asked to provide grants to help with resulting financial problems – like many countries have done), are also facing a year and possibly multiple years where their tenants will face spiralling financial difficulties.

In this regard, the Chief Executive of the National Residential Landlords Association, Ben Beadle, stated:

In what should be an eye-opening moment for the Chancellor, Generation Rent and the NRLA appear to be on the same side of this issue, as Baroness Alicia Kennedy, Director of Generation Rent, commented:

Responding to this week’s Spring Statement, Baroness Alicia Kennedy – director of Generation Rent – says:

What this means for Wirral landlords

Unfortunately, there seems to be a growing demand for private landlords to solve the problems of central government. While they are asking for homes for Ukrainian families, which many landlords would love to offer, they are continuing to neglect the social housing sector, or the legislation impacting landlords making such a choice, meaning that landlords face the problem of choosing between struggling families from the UK and Ukraine while both are being failed by the state.

As things stand, there are positives for landlords, but there is a growing raft of issues that could cause problems – which landlords will need to address with their MPs before they become intractable.

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Report Shows Tenants are Generally Happy with Landlords and Rental Properties, But Not Renting

Although it’s been a tough couple of years for landlords – with coverage in the media largely negative, and the regulatory landscape seeming to visibly shift under foot, the report is generally positive, reinforcing the part that the private rental sector plays in access to housing.

What the report says

With the private rental sector under the magnifying glass a lot over the last few years, the report examines the current state of industry and uses historical data to predict possible trends. In addition to this, the report seeks to make suggestions on policy to encourage an equitable progression.

It’s a dense piece of analysis, split into several sections. While we may cover other chapters in coming weeks, we’ll be focusing today on chapter two, which is titled: Is Private Renting So Bad?

In accordance of Betteridge’s law of headlines, the report concludes that no, it isn’t really as bad as we’ve perhaps been led to believe by widespread coverage of ‘rogue landlords’ and unliveable conditions. The report itself, in the executive summary, states:

The chapter essentially concludes that it is not actually their properties or landlords that leave renters dissatisfied, but the state of being a renter. Even then, across all demographics, the level of dissatisfaction is relatively low.

Levels of satisfaction

As you may expect, older private renters are the most content demographic – with 74% of those 55 and over reporting that they are satisfied with being a renter. Early-middle-aged private renters (those between the age of 35 and 54) are the least satisfied group – with 58% expressing satisfaction. What may come as a surprise is that parents report a similar level of satisfaction as those without children (58% and 56% respectively).

This remains relatively consistent across regions, too – though there are significant deviations in Scotland, the South West of England and Northern Ireland (though the latter is from a very small sample size). The North West sits pretty much on the average, with 64% of respondents expressing satisfaction with being a renter.

Impact of the pandemic

When tackling the pandemic, the report echoes many of the articles we’ve written over the last year or so – people’s priorities have changed, they prioritise outdoor space, dedicated working spaces and are more likely to consider living in rural areas (provided the broadband is up to scratch!). None of this is too surprising – what is interesting, however, is that it has also confirmed that renters are feeling less secure since the pandemic, despite the coming end of no-fault evictions and other measures to improve housing security.

What this means for Wirral landlords

In essence, the report confirms some ‘common sense’ assumptions about the sector, and the North West ranks sixth out of the twelve listed regions, suggesting that Wirral landlords are performing at least as well as average. What should provoke some thought is the final point – tenants feel less secure (specifically with fixed term contracts). It may serve landlords well (at least those looking to keep their properties for the long-term) to begin looking at longer term or rolling contracts for good tenants to help improve their feelings of security.

Want some help keeping up with the latest research, on top of the latest legislation – or just want to take the stress out of managing your property portfolio? Contact Us today.

Accreditations & Partners

Calculations generated by Zoopla Comparables report, from a 3-12 month period within 1 mile radius of each location.