Tamworth’s ‘Millennials’ set to inherit £329,700 each in property!

That got your attention … didn’t it!

But before we start, what is Generation X, let alone Generation Z, Millennials, Baby Boomers  … these are phrases banded around about the different life stages (or subcomponents) of our society. But when terminologies like this are used as often and habitually as these phrases (i.e. Gen X this, Millennial that etc.), it appears particularly vital we have some practical idea of what these terms actually mean. The fact is that everyone uses these phrases, but often, like myself, they are not exactly sure where the lines are drawn …until now…

So, for clarity …

Generation Z:              Born after 1996

Millennials:                 Born 1977 to 1995

Generation X:              Born 1965 to 1976

Baby Boomers:            Born 1946 to 1964

Silent Generation:       Born 1945 and before

My research shows there are 8,064 households in Tamworth owned by Tamworth Baby Boomers (born 1946 to 1964) and Tamworth’s Silent Generation (born 1945 and before). It also shows there are 15,494 Generation X’s of Tamworth (Tamworth people born between 1965 to 1976). Looking at demographics, homeownership statistics and current life expectancy, around two-thirds of those Tamworth 15,494 Generation X’s have parents and grandparents who own those 8,064 Tamworth properties.

… and they will profit from one of the biggest inheritance explosions of any post-war generation to the tune of £1.726bn of Tamworth property or £166,970 each but they will have to wait until their early 60’s to get it!

However, it’s the Millennials that are in line for an even bigger inheritance windfall.

There are 11,299 Millennials in Tamworth and my research shows around two thirds of them are set to inherit the 11,612 Tamworth Generation X’s properties. Those Generation X’s Tamworth homes are worth £2.485bn meaning, on average, each Millennial will inherit £329,700; but not until at least 2040 to 2060!

While the Tamworth Millennials have done far less well in amassing their own savings and assets, they are more likely to take advantage of an inheritance boom in the years to come. This will probably be very welcome news for those Tamworth Millennials, including some from poorer upbringings who in the past would have been unlikely to receive gifts and legacies.

However, inheritance is not the magic weapon that will get the Millennials on to the Tamworth housing ladder or tackle growing wealth cracks in UK society, as the inheritance is unlikely to be made available when they are trying to buy their first home…but before all you Tamworth Millennials start running up debts, over 50% of females and around 35% of men are going to have to pay for nursing home care. Interestingly, I read recently that a quarter of people who have to pay for their care, run out of money.

So, if you are a Tamworth Millennial there potentially will be nothing left for you.

Of course, most parents want to give their children an inheritance, the consideration that what you have worked genuinely hard for over your working life won’t go to your children to help them through their lives is a really awful one … maybe that is why I am seeing a lot of Tamworth grandparents doing something meaningful, and helping their grandchildren, the Millennials, with the deposit for their first house.

One solution to the housing crisis in Tamworth (and the UK as a whole) is if grandparents, where they are able to, help financially with the deposit for a house. Buying is cheaper than renting – we have proved it many times in these articles … so, it’s not a case of not affording the mortgage, the issue is raising the 5% to 10% mortgage deposit for these Millennials.

Maybe families should be distributing a part of the family wealth now (in the form of helping with house deposits) as opposed to waiting to the end… it will make so much more of a difference to everyone in the long run.

Just a thought?

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Why Tenancy Agreements are Important to Tamworth Landlords

Yes, It is possible to create a tenancy without actually signing a tenancy agreement but who is crazy enough to do that?

Well you would be surprised –  Recently I  have been contacted twice by landlords who allowed tenants to move into their properties without having a tenancy agreement in place.

One of the landlords I am afraid to say does not want me to mention his case in my blog, apparently he is the butt of his friends jokes over his little issue. I have given him my advice and the rest is now up to him!Spit Handshake

The other landlord contacted me when his tenants failed to pay the deposit and rent. He allowed this “lovely” couple to take the keys and move in with the promise of paying the monies owed when they got paid, two days later.

When monies were not forthcoming and the landlord chased, he was told, this “lovely” couple were going to pay their rent in arrears and they knew nothing about any agreement to pay a deposit.

So we now have a frustrated landlord asking  “Can they pay their rent in arrears and what about the deposit?

Yes, they can, unfortunatley.

Under common law, rent is payable in arrears unless there is a tenancy agreement in place and the agreement states rent is payable in advance.

With regards to the deposit, the landlord has no recourse, where is the proof.

By using a properly drafted tenancy agreement Landlords go a long way to protecting their position. It is unwise to add and remove clauses without legal advice  as they can be classed as unfair terms .

For example a clause will normally be unfair if it takes away a right which a tenant would normally have in law.

If you want to prohibit something a tenant would normally be able to do, such as re-decorate the property, your clause must contain wording providing for the tenant to request permission to do whatever they are wanting to do and must state that “the permission will not be unreasonably refused”.

Countless landlords have invalidated their pets clauses by removing this wording on the basis that “no pets allowed in this property under any circumstances”.

A tenant can request permission for something but it does not mean that you have got to agree to it. It may be reasonable to refuse your permissionm, that is your right as a Landlord. But if you deny tenants the chance to request permission – this will invalidate the clause, meaning that there is nothing to stop them keeping whatever pets they like.

Tenancy agreements need to be fair and written in plain English, they can include clauses to protect the landlord’s position. i.e. –

Notifying tenants that you will provide their details to utilities if they default on payment. You should also note down that you may also use tracing agents if they leave owing you money.

Everyone living in the property, including all children are named in the tenancy agreement and there should be a clause saying that no one else is allowed to live in the property.

Remember doing business on spit and a hand shake is no longer good practice 🙁

until next week.

Landlords, would you like a second opinion on a potential Buy-to-Let property or do you have nagging concerns – please feel free to contact us on 01827 425195 or 07531484956.We are here to help you on your property journey.

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Tamworth’s £72,380,160 “Rentirement” Property Market Time Bomb

Yes, I said ‘rentirement’, not retirement … rentirement and it relates to the 488 (and growing) Tamworth people, who don’t own their own Tamworth home but rent their home, privately from a buy to let landlord and who are currently in their 50’s and early to mid-60’s.

The truth is that these Tamworth people are prospectively soon to retire with little more than their state pension of £155.95 per week, probably with a small private pension of a couple of hundred pounds a month, meaning the average Tamworth retiree can expect to retire on about £200 a week once they retire at 67.

The average rent in Tamworth is £618 a month, so a lot of the retirement “income” will be taken up in rent, meaning the remainder will have to be paid for out their savings or the taxpayer will have to stump up the bill (and with life expectancy currently in the mid to late 80’s, that is quite a big bill …  a total of £72,380,160 over the next 20 years to be paid from the tenant’s savings or the taxpayers coffers to be precise!

You might say it’s not fair for Tamworth tax payers to pick up the bill and that these mature Tamworth renters should start saving thousands of pounds a year now to be able to afford their rent in retirement.  However, in many circumstances, the reason these people are privately renting in the first place is that they were never able to find the money for a mortgage deposit on their home in the first place, or didn’t earn enough to qualify for a mortgage …and now as they approach retirement with hope of a nice council bungalow, that hope is diminishing because of the council house sell off in the 1980’s!

For a change, the Tamworth 30 to 40 somethings will be better off, as their parents are more likely to be homeowners and cascade their equity down the line when their parents pass away.  For example, that is what is happening in Europe where renting is common, the majority of people rent in their 20’s, 30’s and 40’s, but by the time they hit 50’s and 60’s (and retirement), they will invest the money they have inherited from their parents passing away and buy their own home.

So, what does this all mean for buy to let landlords in Tamworth?

Have you noticed how the new homes builders don’t build bungalows anymore … in fact some would said the ‘bungalow storey’ is over.  The waning in the number of bungalows being built has more to do with supply than demand.  The fact is that for new homes builders there is more money in constructing houses than there is in constructing bungalows.  Bungalows are voracious when it comes to land they need as because bungalow has a larger footprint for the same amount of square meterage as a two/three storey house due to the fact they are on one level instead of two or three.

That means, as demand will continue to rise for bungalows supply will remain the same.  We all know what happens when demand outs strips supply … prices (i.e. rents) for bungalows will inevitably go up.

if you would like to read more articles on my thoughts on the Tamworth property Market – please visit the Tamworth Property Market Blog

If you want to learn about the Tamworth Property Market , one source for information is the Tamworth Property Blog authored by yours truly at https://www.tamworthpropertyblog.co.uk

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Houses in Multiple Occupation -Legislation Day 8

We thought it would be useful to provide a quick summary of upcoming Government legislation  for HMO’s in 2018 which will affect landlords.

Houses in Multiple Occupation and Residential Property Licensing Reforms – date to be announced

It is proposed that any property with 5 or more occupiers and all those occupiers who are not related to one another will require a HMO licence.

 

 

 

 

 

Current legislation states – there would need to be 3 storeys in addition to the 5 or more occupiers to require a licence.

I think that a minimum room size will also be introduced, watch this space…..

If you are a landlord or thinking of becoming one for the first time and you want to read more articles like this about the Tamworth Property Market, together with regular postings on what I consider the best buy to let deals in Tamworth (out of the many of properties on the market, irrespective of which agent is selling it) then feel free to get in touch!

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Government Legistlation on Tamworth Landlords – Day 7

The  Deregulation Act 2015 – 1 October 2018  which is being debated in parliament could hugely improve the lives of many renters in England.

Latest news on the Homes  (Fitness for Human Habitation and Liability for Housing Standards) Bill 2017-19

The House of Commons voted for the Bill to be sent to a Public Bill Committee, they will scrutinise the Bill  – date to be announced.

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Trust me you would not want to buy your home off the internet

My close friends and family know that I dislike self service tills and the impersonal detachment of Internet shopping. I will be honest and admit that I hate it.

People say buying houses is stressful.  Believe me, when I say it’s nothing compared to online shopping.

Birthday gifts haven’t arrived on time, clothes which looked lovely on the internet model are not what I had hoped for – sack of spuds springs to mind!

A long awaited Christmas present for my mom was delivered by courier to my house and because no one was home they very kindly left it in a safe place….. the recycling bin which was emptied on the same day. 

So I’m sticking to high street shopping in the future.  Thank goodness we don’t buy houses online.  Can you imagine it!

According to a recent nationwide  study by Vivo Property Buyers, people find the task of selling their home more stressful than other life events like getting a divorce, death of a spouse or being made bankrupt. How stressful would it be to buy your next house directly off the internet?

Luckily the Internet doesn’t sell houses. Can you imagine logging onto the internet, finding a house that you want to purchase and adding it to your shopping cart. Checking the delivery address is correct. Deciding whether to pay by PayPal or credit card  and then  finally, excitedly, waiting for the courier to deliver it.

The internet doesn’t sell houses it sells viewings. Properties are advertised there with pictures to capture your interest and entice you to pick up the phone and book a viewing.  The real selling of a home is done in the property itself, person to person.

buy your house off internet
buy your house off internet

Buying any house is an emotional heartfelt experience.  Buying a home is special. You will feel an instant warmth and connection with the house. You will see your furniture in the house, your personal items dotted about and your loved ones curled up on the sofa. You need to see it. You need to explore it. You want to be able to see yourself in the house, no not a house –  a home and maybe your new home.

Would an agent’s photos online show you all you want to see. The best photos cannot possibly show you everything, would you be able get a clear picture  in your mind of the house from just a description.

What about those questions you have about your future home. An estate agent will have lots of useful information to share with you, especially if you are new to the area. We do.

We like to know about the houses we are selling.  We like to know about the area and the neighbours.  We want to tell you the history of the house, if you were buying a second hand car, you would want the full-service history, wouldn’t you?  Why should a house be different?

Selling houses is about people and customer service.  Online shopping is cold and impersonal. What happened to my moms present you may ask, I phoned and phoned and each time I hit a brick wall with an automated message. That was a stressful time!

So my advice, stick to the high street for things that are really important.

Have you had a similar experience which has made you reflect and think?  If so I would love to hear about them.  My name is Lorraine.  I am here to help you move.  Call me on 01827 425195.

Happy house hunting.

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What laws are changing which will affect Tamworth landlords? – Day 6

With more and more people moving into rented accommodation, the government has put into law better protection for tenants. The law also provides landlords greater clarification on their responsibilities.

Deregulation Act 2015 – 1 October 2018 – Day 6 

The provisions as outlined below that came into effect for England on 1 October 2015 will apply to all tenancies from 1 October 2018 and not just new tenancies or renewals:

  • Requirement to have given an EPC in order to serve section 21 notice
  • Requirement to have given a gas safety record in order to serve Section 21 notice (no fault)
  • Government introduced a new standard form that landlords must use when evicting a tenant under the ‘no fault’ (section 21) procedure (form 6A)
  • No longer need to expire section 21 “after last day of a period”
  • Section 21 cannot be served for first four months and can no longer be used from six months after service
  • Apportioned rent rules after service of section 21 notice
  • Retaliatory eviction provisions

Note that the providing of the How to Rent Guide is excluded from the list and is not required for tenancies before 1 October 2015 unless renewed after.

 

Confused ?

confused
confused

 

Call us at Hall and Thompson (01827 425195) – Tamworth  if you’d like some extra  information on letting your property. Thanks

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Government Legislation for Tamworth Landlords – Day 5

In December 2015 the process of agreeing a new set of legislation ensuring the rights of EU residents  was completed. This was approved in 2016 and becomes enforceable on the 25th May 2018.

So to make it clear, significant changes are being made to the Data Protection rules.

GDPR

Day 5 – General Data Protection Regulations (GDPR)

This new legislation is designed to enable individuals to better control their personal data.

The changes will require you to audit what information about people you hold, what you do with it and how long it is retained.

Any processing of data based upon consent will significantly change and any consents obtained will need to be granular and opt-in.

What is “Personal Data”?

“Personal data” is defined in both the Directive and the GDPR as any information relating to an person who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, online identifier or to one or more factors specific to the physical, physiological, genetic, economic, cultural or social identity of that person.

So in many cases online identifiers including IP address, cookies and so forth will now be regarded as personal data if they can be (or are capable of being) without undue effort linked back to the data subject.

To be clear there is no distinction between personal data about individuals in their private, public or work roles – the person is the person.

This new legislation is a minefield so I would recommend Landlords start to look at the data they hold.

More information can can be found on the Information Commissioners Office website

 https://ico.org.uk/for-organisations/guide-to-the-general-data-protection-regulation-gdpr/

 

Take a look at our other online resources, below.

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Don’t forget to visit the links below to view back dated deals and Tamworth Property News.  https://www.tamworthpropertyblog.co.uk

 

Amendment to Tamworth Landlords Regulations – Day 4

From 1st  or 6th April 2018 (conflicting dates  information) there is some good news for landlords.

gas man

Day 4 –  Gas Safety (installation and use)

A landlord will be able to have a gas safety record completed up to 2 months before the gas certificate date expires. Once completed the following record will not need to be from 12 months of the last check but instead the deadline date will remain for the following year. This allows landlords to get gas safety records completed up to two months earlier and not be penalised.

More information about this and the other changes being made can also be found on the HSE website.

Don’t Forget you can keep up to date with all our articles on the Tamworth property Market here. https://www.tamworthpropertyblog.co.uk

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Tamworth Landlords Legislation for 2018 – Day 3

The news is currently full of government legislation for renting out residential properties and raising standards.

Day 3  – Energy Performance Certificates 

From 1st April 2018 there are minimum energy level regulations (MEES), any building which is to be rented on a new tenancy or a renewal, must have a minimum energy rating of “E”.

Energy performance certificate
EPC

Furthermore from 1 April 2020, the minimum level “E” applies to all tenancies, including existing.

There are a number of exemptions available and if one of those exemptions apply, the property must be registered on the National PRS Exemptions Register.

All residential properties require an EPC certificate if they are being sold or let, if you need one completed, please get in touch.

Hall and Thompson are still conducting viewings and letting properties. Please phone 01827 425195 if you are looking for a property. Almost fully booked for today but still have availability for tomorrow.

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