With the current uncertainty regarding international travel and ongoing changes in government guidelines, there has been an increased interest in UK holidays.
YouGov data shows that over three quarters of Brits (77%) have no intention of travelling abroad this year. 43% even said they intend to take more or the same number of UK trips than they usually would.
Holiday home operator Park Leisure has reported a 47% year-on-year increase in holiday home sales this summer across its 11 stunning locations, with the trend expected to continue throughout autumn and winter.
The holiday home operator has also seen a huge boost in short stay bookings for its pet-friendly countryside and coastal holiday parks.
Littondale, based in the Yorkshire Dales, has seen the biggest increase, taking 91% more bookings this summer (June-August) than it did during the same period last year.
Lisa Williams, director of marketing and holiday sales at Park Leisure, said: “It goes without saying that this year has been completely unpredictable and there were challenges to overcome to make sure we were able to welcome holiday home owners and holiday makers to our parks safely and comfortably.
“Alongside the benefit of avoiding international travel regulations, our holiday homes are completely self-contained with everything you need for your prefect break. Staying in our holiday homes mean any unnecessary social interaction is avoided and our guests can cocoon themselves in their own little sanctuary or explore the beautiful great outdoors!
“We have, of course, redesigned our processes to keep people safe, as well as introducing hand sanitising facilities and regular signage displaying the guidelines and best practice, alongside a host of other measures to give holiday home owners and holidaymakers peace of mind.”
The company has implemented new measures to keep their customers safe, such as an adapted check-in process to minimise unnecessary contact. They have also obtained a COVID-19 secure certification from VisitBritain.
Lisa added: “With all the difficulty of the last six months, a lot of people are in need of a well-deserved break, so we’re not surprised to see so many taking advantage of our idyllic UK locations, right on their doorsteps!
“What’s been really interesting to see is that there’s no sign of things slowing down as we head into autumn. We’re open 12 months of the year and with holidays abroad so uncertain for the foreseeable future, now is a great time to be thinking long term about future holidays and exploring more of what the UK has to offer.”
PayProp is highlighting the handiness of using text messages for tenant rent reminders and chasing late payments, as it can save letting agents time and resources.
They point out that text message communications also meet the needs of modern tenants, many of who prefer not to receive direct phone calls.
Why is SMS an effective communication method?
According to a report from Mobilesquared, over 99% of all text messages are read by the recipient – and approximately 90% are read within three minutes of delivery.
Neil Cobbold, chief sales officer at PayProp, says: “When it comes to chasing rent payments, it’s clear text messaging has become one of the most effective methods of communication.
“Traditionally, agents have used letters and phone calls to remind tenants about outstanding payments. However, letters are very easily ignored, while younger generations are less likely to speak on the phone.
“Even if tenants delete texts, they are highly likely to read them before they do so. Having the information pop up with urgency can encourage them into action.”
He adds that many renters now use mobile banking to pay their rent, either manually or by standing order.
SMS meets the needs of modern renters
Renters have also responded in recent research that SMS is their preferred method of communication. A survey by bill payment company PayPoint found that 57% of tenants were opposed to direct phone calls, with 62% preferring to receive texts instead.
Cobbold says: “It’s important that agents take the preferences of renters into account. If rent is overdue, tenants are more likely to act if the agent reaches out using their preferred method of communication.”
According to PayProp’s recent report on the effects of COVID-19 on the UK lettings sector, 91% of tenants who received an e-mail or text message arrears reminder from the platform in August 2020 paid some or all of their debt within seven days.
Cobbold continues: “A record of text messages can further be kept and used as evidence further down the line if required.
“Of course, in the most serious cases, a phone call or in-person meeting may be needed. However, in the first instance, text messaging is an effective way of sending rent reminders.”
SMS can also save time and increase efficiency
Cobbold concludes: “Automating rent reminders is a simple way for agents to recover rent owed without taking up too much valuable time. If landlords receive a higher proportion of outstanding rent, agents can preserve their management fees – it’s a win-win.
“This approach lets agents focus on more serious cases of arrears or non-payment of rent where text messaging has been ineffective.”
With autumn now in full-swing, ARLA Propertymark has provided information on how to prepare let properties for the change in weather conditions.
They hope to help landlords avoid too many costly repairs with the following weather-proofing tips:
Clear out the gutters
Falling leaves may look picturesque, but they can cause big problems if left untouched in your gutter. Frozen water, heavy leaves and blockages can all lead to leaks and water damage or even broken gutters, so it’s important to keep them clear from any debris to minimise the risk.
Keep it breezy
When it’s cold or wet outside, windows usually stay shut; however, this can lead to condensation in your property which can cause damp. You should speak to and educate your tenants on the issue and encourage them to open windows in particularly humid areas such as the kitchen and bathroom.
You can also help by ensuring extractor fans are working properly in these areas.
Bleed the radiators
If your tenants are feeling cold despite having the heating on, it could mean that the radiators need bleeding. Bleeding the radiators doesn’t need to be a big job and it will make sure the pipes in your property are being heated properly when the temperature drops. The best thing to do is to speak to your tenants and explain that this will keep them warmer too!
Alternatively, if local restrictions permit it, you can go to your property and bleed the radiators yourself. Remember to speak to your tenants before visiting to make sure that they are not shielding, self-isolating and do not have any symptoms of COVID-19. It’s also important to remember to socially distance and wear a mask to protect them once inside the property.
Trip Hazards
Wet and cold weather leads to slippery drives and icy steps, but this can also lead to cracks in pathways which may cause tenants to trip and fall. In order to prevent this, it’s best to stay on top of any existing cracks from small to large and either get someone professional to fix them or clear the debris and fill them yourself.
Check the boiler
It’s good practice to get your boiler serviced around once a year, but with lower temperatures outside, tenants will be making the most of their heating, especially as many will be working from their homes, so it could be worth getting an extra service.
As long as your tenant is not self-isolating, they can allow a plumber into the property to check the boiler works efficiently which will keep them warm and your property in good condition.
Safety first
With long dark nights drawing in, it’s worth double checking that the burglar alarm and security lights are working in your property. Tenants might not be out and about as much as expected due to social distancing restrictions, but with less natural light, a visible alarm can still be a good deterrent.
You may also want to consider chatting to your tenants to make sure they don’t leave expensive items on display which could attract thieves when they are out the property.
Insurance
Even with all of these checks, things can still go wrong particularly if the weather really takes a turn, so you should ensure your current landlord insurance is up to date and check the policy gives sufficient protection for any weather-related damage particularly to your boiler and roof.
Angela Davey, President, ARLA Propertymark says: “Whether you’re a first-time landlord or have let out properties before, everyone should think about how best to weather-proof their property for the colder months and living in Britain means that temperatures can drop at any time of the year.
“Taking a few simple steps and checking the essentials will help keep you free from any costly surprises and your tenants happy.”
An analysis by property portal OpenBrix has revealed the nation’s most popular road names based on the highest number of homes sold in the last 12 months.
It looked at sold price records from the Land Registry to calculate which road names appeared most often.
The research shows that with nearly ten thousand transactions, addresses containing the word ‘Saint’ have proved the most popular amongst UK homebuyers. In second place is ‘High’, appearing in the addresses of 4,853 properties. In third place is ‘Church’, at 4,185.
OpenBrix also looked at the most expensive options on this list of popular road names. ‘Whistler’ came top, with the average sold price of just over £6m.
Barrons (£1.8m) is the next most expensive followed by Portugal (£1.474m), Paddington (£1.337m) and Fitzjohns (£1.287m).
Adam Pigott, CEO of OpenBrix, commented: “When it comes to the most popular road names there’s an almost biblical feel in terms of those to have seen the highest level of transactions in the last year.
Our property prayers have certainly been answered in recent months, with the market bouncing back at a phenomenal rate following the initial pandemic lockdown.
Market indicators on all fronts are showing some of the strongest price growth in quite some time and so any fears of a market collapse seem to have been well and truly put to bed.”
Most popular street names based on property transactions in England and Wales over the last 12 months
New research shows that almost two thirds of the private landlords in England and Wales surveyed expect to be negatively impacted by the COVID-19 pandemic.
The National Residential Landlords Association (NRLA)’s latest survey of just over 2,000 members found that 48% felt they would face a ‘slightly’ negative impact to their business as a result of the pandemic. 18% said they would face a ‘significant’ negative impact.
56% also responded that they were either ‘less’ or ‘much less’ confident in being able to achieve their goals over the next year than they were three months ago.
Such concerns caused by the pandemic are affecting investment decisions made by landlords, says the NRLA. Whilst 16% of those surveyed said they planned to purchase at least one or more properties over the next year, 30% said they intend to sell one or more property.
35% of respondents reported that over the previous three months they had seen an increase in demand for privately rented housing.
In a previous analysis from the NRLA, it was suggested that the total cost of rent arrears caused by COVID-19 in the private rental sector could be up to £437 million in England. Landlords are now calling on the Government to help sustain tenancies by providing the finances needed to pay off such arrears.
The NRLA wants tenants in England to be able to access hardship loans, following similar schemes in Spain, Wales, and Scotland. Payments would be made directly to the landlord.
This survey also found that 78% of respondents are supportive of such a scheme. It has the support also, among others, of Lord Best, the former Chief Executive of the Joseph Rowntree Foundation, who has said of it: “The landlord is happy, the cost to government is very modest and to the tenant, bearable.”
Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “Whilst the vast majority of landlords have been working constructively with their tenants where they have struggled due to the pandemic, it is not sustainable to expect them or tenants to continue having rent arrears building indefinitely. This is highlighted in the lower levels of confidence among landlords and the impact it is having on their businesses.
“Providing the financial support needed to help tenants pay off rent arrears built since lockdown started would cost the Government less than the Eat Out to Help Out scheme. As we head into more local lockdowns, it is even more important that tenants don’t have to worry about meeting their rent bill.”
The following article is a guest piece from rental experts Home Made.
Increasing government restrictions, the coming end of the furlough scheme, and growing job losses all mean market demand among renters is going to take a serious hit. Many landlords are likely to see current tenants terminating contracts early or falling into arrears due to loss of income.
So with the government’s ‘rule of six’ dominating headlines, as an antidote to investor despair we have developed an alternative ‘rule of six’ for buy-to-let landlords looking to reduce costs.
Though all forecasts indicate that significant challenges lie ahead, this practical advice will help you cut costs and identify valuable savings when managing your portfolio.
1. Don’t compromise on tenant quality
Relaxing the criteria you use to filter prospective renters to secure a badly needed revenue stream can be tempting if your property has sat vacant for several weeks. This approach is to be avoided at all costs.
While it makes sense to review certain criteria you once held dear – such as ‘no pets allowed’ – to expand the applicant pool, never compromise if there’s a question mark over either the character or income of the renter. Void periods may be costly, but evictions and arrears are a significantly greater expense.
All prospective renters need to be referenced even more thoroughly than usual to ensure that whoever you let the property can afford the rent for the duration of the fixed term. This will spare you significant expense in the long term and allow you to mitigate risk by accessing rent insurance policies.
2. See if you can fix it first, before sending in the professionals
You can save yourself hundreds of pounds by taking a bit of time to investigate in person whenever renters report an issue. It is quite often the case that many of the issues reported turn out to be fairly rudimentary problems with a simple enough fix.
If you live locally, visit the property yourself to investigate and see if the issue can be repaired on the spot. If you aren’t able to visit in person, ask your renters for plenty of pictures and videos so that you can do your own research before deciding the appropriate next steps.
Be sure to attend to any issues promptly, both to ensure that your renters are comfortable (happy renters stay longer) and so that a quick fix doesn’t escalate into a more difficult job.
3. Take advantage of a positive lending environment to remortgage
With the Bank of England base rate currently sat at the historic low of 0.1% and billions of pounds pumped into the economy through various quantitative easing measures, the current lending environment is very positive for investors. The overall number of buy-to-let mortgage products available on the marketplace has been steadily increasing since May and there are many deals available for landlords looking for more competitive rates.
Take advantage of these low interest rates and an expanded range of mortgage products to recalculate your portfolio financing, reducing costs wherever possible.
Buy-to-Let Landlords: Six Ways to Reduce Your Costs
4. Use government grants to subsidise property improvements
Until the 31st March 2021, the government’s Green Homes Grant will subsidise two thirds of the cost of energy-efficient home improvements (like insulation and upgraded heating systems) up to the value of £5,000.
Many of the works covered by the initiative will make your home more attractive to renters by reducing the monthly utility costs and improving the overall quality of life in the property.
Minimum energy efficiency standards in the private rented sector are also under constant review. In order to legally let your property it must have an EPC grade of E or above. However, it cannot be taken for granted that this will remain the case indefinitely. New legislation aimed at improving the quality of rental accommodation is introduced on a regular basis and enforcement is ever more stringent, with the cost of compliance (and non-compliance) steadily increasing. Therefore, it might be prudent to remain ahead of the curve by completing energy-efficient upgrades now – while the funding is available – before the minimum required standards are raised and the cost of compliance is greater.
5. Use prop-tech to reduce marketing spend and streamline operations
Now is a great time to streamline your operation with new and innovative prop-tech solutions.
Landlords can reduce marketing and operating costs by avoiding costly agency fees. With less high street foot traffic and more renters completing their property search digitally even before the pandemic, the branch model approach of traditional agencies is much less relevant in the current market. That makes it even harder to justify the extortionate tenant find fees, renewal charges, and other hidden costs common with traditional agencies.
DIY landlords can drastically reduce their costs by using online marketing platforms to gain direct access to the major listings portals. However, landlords using low-cost online DIY platforms to market their portfolio need to be aware of all of their compliance obligations, including the service of all required documentation. If not, you could find yourself penalised with hefty fines that entirely negate the purpose of the cost-saving exercise.
At Home Made, we offer a hybrid solution for hands-off landlords who want a hassle-free end-to-end service. We deliver similar cost savings and operational efficiency to DIY prop-tech platforms and software while also adding value with exceptional customer service, innovative marketing solutions, accompanied viewings, and fully compliant tenancy administration. Using smart technology we can offer citywide coverage in London from one central location, allowing us to offer clients annual fee savings of 50-90% (compared with traditional agencies) while also letting properties faster by cross-selling to a far greater audience. In a renters’ market, you need to work harder and smarter to maximise the reach of your advertising and avoid lengthy void periods.
6. Avoid costly compliance mistakes
The costs associated with breaching your compliance obligations as a landlord are significant. You are legally required to provide renters with valid gas safety, EICR, and EPC certificates prior to the commencement of the tenancy to confirm that your property is safe. Failure to meet the minimum required standards and provide the relevant documents as required by legislation can potentially net you thousands of pounds in fines.
It is also essential to ensure that you have purchased any necessary licences to let your property (such as an HMO licence where appropriate if there are multiple unrelated tenants) and perform Right to Rent checks to confirm that occupants have the legal right to live in the UK.
