I was recently reading a report by the Home website which
suggested that hordes of landlords are selling their buy-to-let investments due
to increasing burdens on them in the buy-to-let market. Their findings suggest
the number of new properties that came onto the market nationally (for sale)
jumped by 11% across the UK as a result.
Those increasing burdens
include new tax rules coming in over the next 3 to 4 years and the announcement
that all self-managing landlords (i.e. landlords that don’t use a letting
agent to look after their buy-to-let property) will soon need to register
with a compulsory redress scheme to resolve tenant arguments and disputes; as Westminster
wants to heighten standards in the Private Rented Sector.
Interestingly I was chatting with
a self-managed landlord from Lymm, when I was out socially over the festive
period, who didn’t realise the other recent legislations that have hit the
Private Rented sector, including the ‘Right to Rent’ regulations which came in
to operation last year. Landlords have to certify their tenants have the legal
right to live in the UK. This includes checking and taking copies of their
tenant’s passport or visa before the tenancy is signed. Of course, if you use a
letting agent to manage your property, they will usually sort this for you (as
they will with the redress scheme when that is implemented).
If you are a self-managed landlord
though, the consequences are severe because if you let a property to a tenant
who is living in the UK illegally, you will be fined up to £3,000. That same Lymm
landlord popped into my offices in the New Year, and I checked all his
paperwork and ensured he was on the right side of the law going forward – and I
offer the same to any landlord in the Warrington area if you want me to cast my
eye over your buy to let matters (and at no cost – ok just bring in some chocolates for the girls in the
office!)
But what of all these extra properties being dumped
onto the market in Warrington? When I looked at the records the number of
properties on the market in Warrington now, as opposed to a year ago, the
numbers tell an interesting story …
|
|
1st Jan 2017
|
1st Jan 2018
|
|
|
Detached
|
117
|
80
|
-32%
|
|
Semi
|
183
|
118
|
-36%
|
|
Terraced
|
143
|
117
|
-18%
|
|
Flat
|
97
|
75
|
-23%
|
|
Plots +
Other |
54
|
23
|
-57%
|
|
Total
|
594
|
413
|
-30%
|
Overall, Warrington doesn’t match the national
trend, with the number of properties on the market actually dropping by 30% in
the last year. It was particularly
interesting to see the number of semis on the market drop by 36%.
However, speaking with my team and other property professionals in the town, the majority of that movement
in the number of properties and the types of properties on the market isn’t
down to landlords dumping their properties on the market. The whole property
market has changed in the last 12 months, with the majority of the change in
the number and type of properties for sale due to the owner-occupier market,
not landlords (a subject I will write
about soon in my Warrington Property Market blog later this Spring?). You
see, for the last ten years, each month there has always been a small number of
Warrington landlords who have been releasing their monies from their Warrington
buy to let properties - as is the nature of all investments!
Nationally, the number of rental properties coming on to
the market to rent fell by 16% in Q4 2017 compared to Q4 2016 .. but that isn’t
because there are 16% less rental properties to rent – it’s because tenants are
staying in their rental properties longer meaning less are coming on the market
to be RE-LET.
Nevertheless, some Warrington landlords will want to release the equity
held in their Warrington buy to let properties in 2018. All I suggest is that you
speak with your letting agent first, as putting a rental property on the open market
often spooks the tenants to hand in their notice days after you put it on the
market (because they don’t like the uncertainty and also believe they will
become homeless!). This means you have an empty property, costing you money with
no rent coming in. However, some letting
agents who specialise in portfolio management have select lists of landlords
that will buy with sitting tenants in. If you have a portfolio in the Warrington
area and are considering selling some or all of them – drop me a line as I
might have a portfolio landlord for you (with the peace of mind that you won’t
have any rental voids).
If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.
Email me on manoj@hamletwarrington.co.uk or call on 01925 235338. If you are in the area, feel free to pop into the office – we are based on G5, Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.
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