Author: JC

Last month the government released its long-awaited white paper “A fairer private rented sector” which sets out plans to reform the private rented sector and level up housing quality in this country.

As part of this, it confirmed that section 21 “no fault” evictions will be abolished and the industry will move away from the current tenancy structure to a simpler structure of periodic tenancies, which will enable tenants to terminate on two months’ notice at any time.  The intention is to give more flexibility to tenants, who will no longer be tied into any fixed term and empower them to challenge the threat of eviction without good reason, thereby incentivising landlords to engage and resolve issues.

Many landlords will be concerned by the loss of section 21, as it means they may find it more difficult to remove tenants. However, landlords must also recognise there is a greater possibility of ending up with a void period as landlords will no longer be able to tie tenants into fixed contractual terms so could end up with a vacant property at any point on two months’ notice.

Landlords will also be banned from discriminating against tenants with pets or those receiving benefits.  Landlords who are forced to allow tenants with pets are concerned about the mess and further damage to their properties, with some we have spoken to mentioning that allergies would mean they would be unable to enter their own properties to carry out routine checks.

There is already a growing number of landlords exiting the private rented sector (PRS), owed largely to an increase in regulation and tax hikes, including stamp duty changes on buy-to-let and the loss of tax-free allowances.

This means these latest upcoming changes are a major cause for concern. Smaller buy-to-let landlords with one or two properties say the new plans make their business models unviable and they will have to sell up for good.

The more landlords who leave the PRS, the fewer rental properties that are available for tenants, increasing competition and unintentionally increasing rents.

New landlords are not coming into the sector, reflecting the challenging environment in the private rented sector.

The white paper says that landlords’ possession rights will be strengthened in cases of serious arrears and when a landlord wants to sell a property. But many landlords are concerned that the eviction process will be more difficult if they need to prove wrongdoing such as anti-social behaviour as this is often difficult to prove.

The Government must release more details of the eventual legislation to retain landlord confidence. If they fail to make changes which support landlords, they will exacerbate the housing crisis by forcing landlords to sell up at a time when renters are struggling to find the homes they need.

We are already being contacted by landlords looking for a quick sale who just want out of the private rented sector.

If you are a landlord looking to sell some or all your portfolio, contact us to discuss your options.  We can buy your property and pay all the fees, transacting within a matter of weeks or to a timescale that suits you.

Phone number: 0207 938 3007
Email: info@webuyproperty.com

In May, the Bank of England raised interest rates from 0.75% to 1%, with further increases expected over the coming months as the Bank of England seeks to contain inflation – which is already looking on course to pass 10 per cent before the end of the year.

The question is, will higher interest rates help to control the country’s over-heated property market?

According to figures from Halifax, there wasn’t much indication of a slowdown in April with prices rising 1.1 per cent compared to March. The average house price hit £286,079 after the 10th consecutive monthly rise in prices, marking the longest run of increases in six years.

April’s price increase was slightly slower than the 1.4 per cent recorded in March, but the annual increase was still 10.8 per cent which is far greater than the average pay rises.

Ultra-low interest rates have made mortgage borrowing cheap, inflating a housing bubble that has made homeownership a distant dream for many renters in some parts of the UK. Some analysts had predicted house prices could slow down when the Stamp Duty holiday came to an end last year, but so far there is no sign of this.

However, there is much uncertainty in the economy right now.  We believe that the impact of a rising base rate above 1 per cent, which will affect mortgage affordability, the fears about living costs and big increases to energy bills will contribute to a steady readjustment of house prices.

Inflation being at the highest since 1982 is a cause for concern.  If the Bank of England is forced to raise interest rates too quickly, we could see people who have pushed themselves financially in the ‘race for space’ being forced to sell up. This would of course contribute to higher supply of properties, which in turn would dramatically cool house prices.

For those on fixed-rate mortgages, a rate increase will only make a difference when their term comes to an end, so for now their payments will not go up.

The news is of course less positive for those on tracker mortgages, where the home loan tracks the BoE base rate, as the base rate increase will be passed on to borrowers delivering an immediate increase to their mortgage payments.

For those that are able to, such as borrowers on a variable rate, it would be advised to lock in to a fixed-rate deal, preferably for as long as possible, as interest rates are expected to increase further over the coming months, potentially hitting 3% by the end of the year.

When selling your property, you naturally want to portray it in the best possible light. But in some circumstances, homeowners are aware there is a problem but don’t know how much information to disclose for fear they’ll struggle to sell.

Ever since 2013, selling a property falls under the Consumer Protection Against Unfair Trading Regulations. This places the onus on the seller to divulge anything that may impact the buyer’s decision to proceed with the purchase. If the seller omits anything of importance (that they were aware of) they could face prosecution – whether the buyer asked about the issue or not.

What kind of issues should be disclosed?

However uncomfortable it may be to be honest about an issue with your home, it is better to be honest and upfront than to face legal action later down the line. The new owners could commence legal action months or even years after your sale completes.

Issues include, but are not limited to:

• Flooding issues, current or historic
• Structural problems
• Japanese knotweed, current or historic
• Pests, current or historic
• Planning permission on the property, be that pending, granted or denied.
• Disputes with neighbours that have resulted in written exchanges, local authority or police involvement
• Whether the neighbours have any anti-social behaviour orders (ASBOs)
• Whether there is a flight path nearby
• A previous sale falling through due to bad survey results
• A violent death that occurred at the property.

Obviously, there are minor things which could affect any property, such as neighbours with a noisy dog or lots of children – but we are talking about the more fundamental issues. If you are not sure what information you are or are not required to disclose, seek advice from a solicitor.

Serious issues will be revealed in the conveyancing process therefore it would be prudent to reflect such issues in the asking price.  You would also be advised to demonstrate how the issues have been resolved with all relevant paperwork, or if they are in the process of being resolved.

If you have a ‘problem property’ and have perhaps tried to sell on the open-market or would prefer not to so you don’t have to disclose whatever issue you have with your home to lots of people, we may be able to help you.

WeBuyProperty are a property buying company specialising in quick sales. We have funds ready to purchase properties and have helped hundreds of sellers with tricky properties.

You can discuss any issues with us (we will have come across them all before) and we will happily provide you with a no obligation offer.  If you accept this, we will guarantee to buy your house and pay all the fees, transacting within a matter of weeks or to a timescale that suits you.

Phone number: 0207 938 3007
Email: info@webuyproperty.com