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Em Morley

The Early Agent Catches The Client: Pre-Work Valuations are on the Rise

Published On: March 11, 2020 at 12:05 pm

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The Early Agent Catches The Client: Pre-Work Valuations are on the Rise

Landlords and potential property sellers are increasingly requesting online valuations of their properties before they start work according to data from The ValPal Network. 

The figures show that between 7 and 8 am was the most popular time for online valuation requests in both January and February this year.

In February alone, 8,416 online valuations were requested before 8am. This is equivalent to 12% of the 69,752 total requests received in the month. In January, the results were similar, seeing 12.5% of requests taking place in the hours before agents start work.

Of the 313,809 online valuation leads generated by members of The ValPal Network between the start of October 2019 and the end of February 2020, more than one in ten – 37,128 – were requested by consumers between 7am and 8am.

After the 7-8am period, the next most popular is 3-4pm, seeing 8,041 and 5,301 requests in January and February respectively. 

“We can see from this data that early mornings are a crucial time for agents when it comes to generating online valuation leads,” says Craig Vile, Director of The ValPal Network.

“Vendors and landlords are clearly browsing their phones and considering their property transactions on their way to work or when they first get into the office.”

He says that if agents want to take advantage of this activity and generate leads which they can convert into market appraisals, they must make sure they have an effective mobile website with prominent calls to action.

“Agents also need to utilise live chat tools so they can cope with out of hours enquiries. As we can see, many inquiries are coming in before agents traditionally start work,” says Vile.

“There is an increasing shift towards flexible lifestyles and a need for agents to be able to service their clients at all hours of the day, even if their office is closed.”

“That said, our data shows that there are also lots of requests for online valuations in the middle of the day when agents are more likely to be in the office,” he adds.

“It’s vital that when these leads come in the prospects are phoned as soon as possible for the agent to have the best chance of converting the online valuation into a market appraisal and ultimately an instruction,” Vile concludes.

NAEA Propertymark’s top tips for selling your house in spring

Published On: March 11, 2020 at 9:58 am

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selling your house in spring

The start of a new season is only a couple of weeks away, so NAEA Propertmark has shared its tips on the best way to sell your house in spring.

At this time of year there is an opportunity for a new beginning, so why not embrace it? As we move into the new season, house buyers are beginning to wake from their winter hibernation and once again continue their search. Therefore, these top tips for selling your house in spring will help to prepare your home and present it in the best light to boost its saleability.

1. First impressions are everything 

Every detail is important, as buyers often make their decision within seconds of arriving at a property. Make sure it looks its best on the outside as well as the inside. 

If your front door is looking a little shabby, buy a new doorknob, a brass letterbox or a stainless-steel house number; these small touches can instantly make your home feel more welcoming. 

2. Spring Cleaning

It goes without saying that a spring clean is essential before a seasonal sale. You don’t want to put a buyer off with a grubby and messy appearance. This needs to be the fresh start that they’ve been looking for!

Give old carpets a deep clean and thoroughly clean all curtains or upholstery that attracts extra dust. It’s a good idea to deep clean all carpets before putting your house on the market as well to ensure the whole house feels clean and fresh.

Just Landlords’ spring cleaning checklist makes for a handy tool for house sellers as well as tenants and landlords.

3. Freshen up your kitchen and bathroom

Kitchens and bathrooms can make or break a sale so now is the time to give them a makeover. Think about hiding any unappealing pipework and fixing worn or broken tiles. You may still be living there, but keep clutter to a minimum when it comes to toiletries out on the side. In the kitchen, replace any worn work surfaces and doors as this will totally transform the space without having to fork out on replacing the cabinets.

4. Let there be light

A dark room is an immediate turn-off to buyers. The easiest first step is to let the sun pour in and maximise natural light as much as possible by opening curtains and blinds and giving any dirty windows a scrub before putting your property on the market.

5. Keep decoration minimal

Interior décor comes down to personal taste, so don’t go over the top. Potential buyers must be able to picture themselves living in the space, and not feel like an intruder in someone else’s home. Anything showing too much personality can be a turn off during a house viewing so it’s best to keep your decoration simple and colours neutral to offer buyers a blank slate to build their own home on.

6. Flowers

Keeping fresh flowers on display is a welcoming touch that will make your home appear well kept. Flowers can play a vital role in giving rooms a lift and create a clean fragrance to greet a buyer. No matter how well your home is presented, a few simple touches with some neutral flowers will enhance the property’s appeal.  

7. Pets

Furry friends leave an odour that pet owners can become immune to over time, but it’s likely the buyer will pick up on this. Air out the property in advance of any viewings, light a freshly scented candle to mask any lingering smells (but don’t leave it unattended!) and consider leaving your pet with a friend or family member for the duration.

Lauren Scott, President, NAEA Propertymark comments: “With housing market activity on the rise during February and March, it’s important to take every step to make your property stand out above the competition. If you are looking to sell your home this spring, turn to your local NAEA Propertymark estate agent who will be able to offer you further guidance on how to maximise the chances of a spring sale.”

Landlords in London Are Getting Away With Letting Out Unsafe Homes

Published On: March 10, 2020 at 11:52 am

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Landlords in London Are Getting Away With Letting Out Unsafe Homes

Half of London’s boroughs didn’t fine a single landlord in the past year according to Generation Rent’s latest information.

In an analysis of City Hall’s “Rogue Landlord and Agent Checker” by Generation Rent has found that in the past year leading up to 26th February, 292 fines were issued in 17 London boroughs, totalling £1.04 million. They note that this is down from the previous year in which fines totalled £1.66 million for 433 cases. 

Generation Rent wants the winner of London’s next mayoral election to fight harder against criminal landlords by letting tenants check online if their home needs and has a licence. They estimate that 130,000 private rented homes in London do not have the correct licence, making 1 in 8 private renters eligible for a refund of rent.

Across the Greater London Area, Camden has been leading the fight against criminal landlords, issuing £750,000 in fines in the past year, whilst Westminster, Hounslow and Haringey have all doubled fines since last year.

Newham, Brent, Tower Hamlets and Waltham Forest have halved their numbers (it is unknown whether there are less offending landlords or a reduction in enforcement) and worryingly, 9 councils did not issue a single fine in the last two years. These are: Bexley, Bromley, Hackney, Hammersmith & Fulham, Kingston, Lewisham, Merton, Sutton and the area in which the Grenfell Tower disaster occurred: Kensington & Chelsea. 

On top of this, it would appear that councils are not taking tenant’s interests seriously. 130 of the 292 cases recorded involved circumstances in which the tenant would be entitled to reclaim up to 12 month’s rent from their landlord through a Rent Repayment Order (RRO), however only 20 tenants in six boroughs were assisted in claiming for RROs. 

Generation Rent is calling for the next London Mayor to bring all councils’ landlord licensing data together on the City Hall website and give tenants an easy-to-use tool to check if their landlord is meeting their legal obligations and, if they’re not, advice on how to claim back their rent.

Dan Wilson Craw, Director of Generation Rent, said:

“Laws to keep our homes safe only mean anything if they are enforced, and if landlords understand the consequences of cutting corners. Despite squalid conditions facing many of London’s renters, councils have a very mixed record on bringing the landlords responsible to justice.

“The next Mayor of London could turn this around by making it easier for renters to use Rent Repayment Orders against criminal landlords. We want all candidates for Mayor to commit to upgrading the City Hall website to let Londoners check if their landlord has the right licence and help them take action.”

Lettings Relief Rule Changes Could Leave Landlords Worse Off

Published On: March 9, 2020 at 12:13 pm

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Lettings Relief Rule Changes Could Leave Landlords Worse Off

Landlords and property owners could be hit in the pocket by a shake-up to lettings relief, which reduce the tax-exempt amount when selling a home. 

Aberdeen-based accountants, Hall Morrice are alerting property owners to these changes, and suggesting that they act now to avoid falling afoul of the new rules which will be rolled out in April.

The new rules concern lettings relief and final period exemption and could cause the amount of Capital Gains Tax payable to vary wildly if individuals decide to sell rented property that was their own home at some point during the ownership. 

Richard Stephenson, senior manager at Hall Morrice, said: 

“Property owners have faced numerous tax changes in recent times, and more are on the way.

“For landlords, it’s important to factor this into future planning. By being aware of the issues and taking appropriate action, they won’t end up with penalties for failing to file the appropriate returns.”

Principal Private Residence (PPR) Relief has in the past, provided a useful exemption from Capital Gains Tax (CGT) with landlords being able to claim PPR relief for all the time they lived in their property before letting it to tenants, plus an extra 18 months after moving out.

From 6 April, landlords will lose nine months’ worth of CGT relief when they come to sell. This is because PPR will be reduced to the time they lived in their property, plus nine months.

CGT relief of up to £40,000 (£80,000 for a couple) has been available for those who let out a property that is, or was in the past, their home. This relief has applied whether a single room is rented, or the whole property.

But the new rules mean that the relief will only apply to live-in landlords who are in shared occupancy with their tenant, such as those who let out rooms to lodgers.

In addition, in property sales where a CGT charge arises, there will be a new 30-day reporting and payment window. Sellers will be required to submit a standalone tax return and subsequent payment, to HMRC within 30 days of completion.

Disposals made on a no gain, no loss basis are excluded from the obligations and they are most likely to affect those selling a second home or rental property on which relief is not available.

Taxpayers will be permitted to factor in realised capital losses and available reliefs into their calculations and any adjustments to the final tax position will be made as part of the self-assessment tax return process following the year end.

Richard adds: “For quite some considerable time, PPR relief has included some valuable ancillary reliefs which have enabled individuals beyond owner occupiers to benefit from CGT relief when they come to sell their property, so this will have quite an impact on some property owners.

“In a nutshell, if you sell a property, and especially if you own more than one property, you may have to pay more Capital Gains Tax.

“It’s important for landlords to have a good grasp of the subject and understand how the changes coming in on April will affect them, by seeking appropriate advice, particularly any landlords who might be considering a sale.”

Estate Agents: List Properties on Global Websites for Better Reach

Published On: March 6, 2020 at 10:40 am

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Estate Agents: List Properties on Global Websites for Better Reach

Listing properties on websites with a global audience can give estate agents a much-needed edge over their competition, according to PropTech company Residential People.

Residential People say that with competition between agents will intensify in the coming months, fuelled by a resurgence in the property market, which is in turn a result of December’s election result. 

This so-called ‘Boris Bounce’ has provided buyers and potential buyers with the clarity needed to make long-term financial decisions such as to buy, sell or let property.

Residential People say that since the election, they have also seen increased foreign interest in the UK property market. The portal’s Director, Christopher May, says:

“More instructions and commission available means agents will be more enthusiastic about investing in digital marketing and recruitment in a bid to win more market share,” he says.

“While this increased activity is positive for the industry, it provides the largest agencies with the opportunity to use their firepower to dominate the market.”

“Therefore, at a time like this, independent and boutique agencies need to do all they can to keep pace with the competition and consider what differentiates their brand,”

He says that there has been an upsurge in prospective buyers hailing from China and the UAE, interested in buying properties in London, Birmingham and Manchester. He thinks agents advertising on websites that reach these audiences have an advantage.

“Following the bounce back of the market, the interest from overseas buyers in UK residential property is also making a welcome comeback,” adds May.

“The UK property market has an enduring appeal to the global market and with a more certain political landscape and less doubt over the Brexit process, overseas demand for bricks and mortar here will continue to grow in the coming months,” he explains.

“If an agent’s properties are also showcased to an audience of eager overseas investors, the chances of achieving quick sales at asking price or above are increased.”

Estate Agents: List Properties on Global Websites for Better Reach”By promoting to vendors on a market appraisal that their property will be broadcast across the world, agents can give themselves an edge and secure more all-important instructions,” May concludes.

ARLA Propertymark comments on rent control argument

Published On: March 5, 2020 at 11:56 am

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After the Residential Landlords Association (RLA) and the National Landlords Association (NLA) yesterday stated their opposition to Sadiq Khan’s rent control plans, ARLA propertymark has joined them in their disagreement. 

The NLA and RLA have hit out at Mayor of London, Sadiq Khan’s re-election strategy, which focuses on introducing rent controls in the capital, saying that the proposals would drive landlords out of the city.

They point to research by Frank Knight, showing that demand for rental property has increased from 4.7 prospective tenants per listing in 2018, to 6.1 in 2019. 

The Centre for Cities has warned that strict rent control “would close off London to new residents” and the Resolution Foundation commented that holding down the true market price of private housing via rent controls rather than increasing housing supply is unlikely to succeed.

ARLA Propertymark has echoed the NLA and RLA’s worries. David Cox, Chief Executive, ARLA Propertymark categorically says: 

“Rent controls do not work; it hits hardest those its designed to help the most, and the Mayor of London has failed to learn the lessons of history. 

“The last time rent controls existed in this country, the private rented sector (PRS) shrunk to the lowest levels ever recorded. At a time of demand for PRS homes massively outstripping supply, rent controls will cause the sector to shrink. 

“In turn, this means professional landlords will only take the very best tenants, and the vulnerable and low-income people that rent controls are designed to help, will be forced into the hands of rogue and criminal operators, who may exploit them.”

However, Amina Gichinga from London Renters Union believes tenants aren’t much better off as the situation currently stands, stating rent controls were “urgently needed to help end the way that sky-high rents are driving people out from their communities and into poverty”.

It’s not just tenants who believe that rent controls aren’t a bad thing though. Robert Walker, a partner at PwC, said in July:

“Reducing the cost of housing — both renting and purchasing a house — should be a priority, and government and business should work together to improve affordability by increasing the supply of properties to put downward pressure on property price inflation,”