Extra Funding Is Required for Affordable Homes in Tamworth

In my blog about the Tamworth Property Market I mostly only talk about two of the three main sectors of the local property market, the ‘private rented sector’ and the ‘owner occupier sector’. However, as I often stress when talking to my clients, one cannot forget the third sector, that being the ‘social housing sector’ (or council housing as some people call it).

In previous articles, I have spoken at length about the crisis in supply of property in Tamworth (i.e. not enough property is being built), but in this article I want to talk about the other crisis – that of affordability. It is not just about the pure number of houses being built but also the equilibrium of tenure (ownership vs rented) and therein, the affordability of housing, which needs to be considered carefully for an efficient and effectual housing market.

An efficient and effectual housing market is in everyone’s interests, including Tamworth homeowners and Tamworth landlords, so let me explain ..

An average of only 36 Affordable Homes per year have been built by Tamworth Borough Council in the last 9 years

The requirement for the provision of subsidised housing has been recognised since Victorian times. Even though private rents have not kept up with inflation since 2005 (meaning tenants are better off) it’s still a fact there are substantial numbers of low-income households in Tamworth devoid of the money to allow them a decent standard of housing.

Usually, property in the social housing sector has had rents set at around half the going market rate and affordable shared home ownership has been the main source of new affordable housing yet, irrespective of the tenure, the local authority is simply not coming up with the numbers required. If the local authority isn’t building or finding these affordable homes, these Tamworth tenants still need housing, and some tenants at the lower end of the market are falling foul of rogue landlords. Not good news for tenants and the vast majority of law abiding and decent Tamworth landlords who are tarnished by the actions of those few rogue landlords, especially as I believe everyone has the right to a safe and decent home.

Be it Tory’s, Labour, SNP, Lib Dems, Greens etc, everyone needs to put party politics aside and start building enough homes and ensure that housing is affordable. Even though 2017 was one of the best years for new home building in the last decade (217,000 home built in 2017) overall new home building has been in decline for many years from the heady days of the early 1970s, when an average of 350,000 new homes were being built a year.  As you can see from the graph, we simply aren’t building enough ‘affordable’ homes in the area. 

The blame cannot all be placed at the feet of the local authority as Council budgets nationally, according to Full-Fact, are 26% lower than they have been since 2010.

So, what does this mean for Tamworth homeowners? Well, an undersupply of affordable homes will artificially keep rents and property prices high. That might sound good in the short term, but a large proportion of my Tamworth landlords find their children are also priced out of the housing market. Also, whilst your Tamworth home might be slightly higher in value, due to this lack of supply of homes at the bottom end of the market, as most people move up the market when they do move, the one you want to buy will be priced even higher.

Problems at the lower end of the property market will affect the middle and upper parts. There is no getting away from the fact that the Tamworth housing market is all interlinked .. it’s not called the Property ‘Ladder’ for nothing!

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on  Lorraine@hallandthompson.co.uk

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Leaks and Flooding – Is my Tamworth Landlord responsible?

If you live in a flat you may occasionally have an issue with leaks and flooding from neighbouring flats. When this happens tenants tend to look to their landlord to rectify the situation, but it is not that straight forward.

It is a landlords duty to repair structural items such as walls, ceilings and plasterwork in a rental property should a leak occur. A landlord should accept responsibility once they are made aware of the damage. Once informed, the landlord must carry out all repairs in a timely period and to a reasonable standard.

Who is responsible for tenants belongings

Who is responsible for tenants belongings?

Tenant’s possessions may have been damaged due to a leak  and they may assume that the landlord is responsible for replacing these items, this is not necessarily so!

Where the damage has been caused by a leak or flooding from a third party’s flat then the tenant should pursue a claim against the third party.  If the tenant has contents insurance, the tenant is advised to make a claim on that policy and leave it to the insurance company to pursue the third party. Where no contents insurance exists, the tenant is advised to take court action against the third party to recover any money for the damage to their possessions.

A landlord may be liable for his tenants possessions if the leak or flooding has originated because the rented property is in a state of disrepair.

I would recommend that all tenants take out contents insurance if their budget allows them too.

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on  Lorraine@hallandthompson.co.uk

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Tamworth Property Market – Asking Prices Up 10.5% in the Last 12 Months

 

The average asking price of property in Tamworth increased by 10.5% or £24,289 compared to a year ago, with particularly good demand from landlords and home-movers in the first few months of the year. This takes the current average asking price to £254,954, compared with £230,665 this time last year.

The rise in asking prices is being aggravated by buyers jumping into action looking to benefit from potential stamp duty savings (especially first-time buyers) or beat impending mortgage interest rate rises later in 2018. Of the numerous Tamworth buyers starting their property hunting in the usually active spring market this year, many face paying even more than ever for the property of their dreams, although as I mentioned a few weeks ago, there are more properties for sale in Tamworth compared to 12 months ago.

Looking at the different sectors of the Tamworth property market, splitting it down into property types, one can see what is happening to each sector of the market with regard to their average asking prices now compared to a year ago. Firstly, looking at the Pound note amounts …

Interestingly, when one looks at the percentages, the most upward average asking price pressure is in the terraced and semi-detached property type sectors, with both first-time-buyer and second-time-buyer properties at new Tamworth asking price highs.

Now, I must stress this growth in the asking prices of Tamworth property doesn’t mean the value of Tamworth property is going up by the same amount … nothing could be further from the truth.  Only time will tell if the current levels of Tamworth asking prices is a catch-up abnormality after a couple of months of restrained asking price rises in the first few months of 2018, or is it an initial sign that we are in for a better 2018 Tamworth Property market than all of us were expecting at the start of the year?

I believe these asking prices must be viewed with a pinch of salt, as it will be fascinating to see whether Tamworth properties actually sell at these higher asking prices. Just because house sellers (be they owner-occupiers or landlords liquidating their assets) are asking for more money it doesn’t mean buyers will be enthusiastic to part with their hard earned cash. Like my Mum and Dad used to say to me all those years ago, “You can ask … but you might not get”.

Also, Tamworth homeowners and landlords wanting to sell their property need to be aware of progressively strained buyer mortgage affordability and the more those sellers increase asking prices, the more buyers will hit their maximum on the amount they are able borrow on a mortgage.

However, those Tamworth buyers who need a mortgage (be they owner-occupier or landlord), will paradoxically benefit from lower mortgage payments before interest rates rise … maybe another reason for the uplift in the number first time buyers and landlords buying? Only time will tell!

Want to know where those Tamworth buy to let bargains are?  Follow my Tamworth Property Blog or drop me an email because irrespective of which agent you use, myself or any of the other excellent agents in Tamworth, many local landlords ask me my thoughts, opinion and advice on what (and not) to buy locally … and I wouldn’t want you to miss out on those thoughts … would you?

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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Bad Tamworth tenants and the law

What would happen if you wandered in Marks and Spencers  helped yourself to some lunch and walked out without paying?

Do you think you would get away scot free without paying or would one of those beefy security guards feel your collar?

You may even end up in court with a criminal record, at the very least you would be made to pay for the goods!

Even rogue landlords face hefty fines and penalties and are put on the “rogues board”.

Well did you know that tenants who decide not to pay their rent often walk away without even so much as a slap on the wrist.

Take my friend Alice, a pleasant lady who always sees the good in people. Alice has a tenant – Miss X who decided she no longer wanted to pay her rent even though she’s on a very generous salary. Miss X even thought it was all perfectly civilised to carry on living in Alice’s apartment.

So Alice couldn’t report Miss X to the police unlike M & S, instead she had a long drawn out and expensive eviction process she had to go through. To make matters worse the beloved sofa and dining suite that were part of Alice’s mothers estate disappeared with Miss X.  Alice reported her complaint to the police, missing furniture and nearly nine months rent unpaid. The response from the police “sorry, nothing we can do, this is a civil matter and not a criminal offence”,

So if you steal even as much as a bag of crisps from M & S it’s a criminal offence whereas stealing thousands from a landlord it is only a civil matter.

Landlords have no option if they want to try and get the money owed to them, they have to take their ex-tenants to Small Claims Court. Even if they succeed in getting a County Court Judgment  against the tenant, there’s no guarantee the landlord will receive any money.

According to the National Landlords Association, the past year saw 35 per cent of landlords experience rent arrears – 29 per cent had their property damaged by tenants and 13 per cent experienced anti-social behaviour.

While all this is going on, landlords still have to carry on paying the mortgage and maintaining the property while the tenant lives rent free.

Organisations, renters and their sympathisers have little or no sympathy for the supposedly   “fat cat” landlord in this position,  but let’s look at the bigger picture.

For every non-paying tenant waiting for the bailiff to arrive before they vacate, there’s a good tenant complaining about the lack of rental properties or the cost of renting has risen. Many a wronged landlord finding themselves thousands out of pocket will look to recoup any losses once they have possession of the property. So the rent is increased for the next tenant.

If the Government is keen on protecting tenants from rogue landlords, why not protect landlords from bad tenants too?

To my mind, it’s only the same as shoplifting and should be the same crime – NOT A CIVIL MATTER.

Until next week

http://www.hallandthompson.co.uk

Ask Lorraine – My Tamworth tenant has two dogs in the property, help!

Ask Lorraine – We have always stipulated that none of our tenants are allowed to keep pets in our properties. We are  not being unreasonable, my husband  has a pet allergy and suffers very badly with chest tightness, shortness of breath and wheezing whenever he comes in contact with them. We have always explained the reason for our no pets policy.

My husband called round to our latest tenants as they were  having an issue with the garage door. Imagine his response when he found the tenants had gone against our wishes and had two dogs in the property.

We now feel that we have lost all trust in our tenants and would like to know what are options are.

Thanks

B.W & S.W

Lorraines Answer – Landlords usually have a clause prohibiting pet ownership for  many reasons i.e potential damage to the property, noise, fleas, or even problems for future tenants if they have pet allergies.

Do you have a clause in your tenancy agreement prohibiting pet ownership at the property? If not then I would recommend that you include a clause for any future tenancies.

If you do have such a clause then the good news – you can give your tenants notice under section 8 clause 12 of the Housing Act 1988. This section covers a breach of the tenancy agreement.

No dogs or cats allowed
No dogs or cats allowed

Write to your tenants and ask them to remove the pets, ensure you refer to the clause in the tenancy agreement. I say write to your tenants as you should always document any correspondence with your tenants, if you have to take them to court you are able to supply any evidence requested by the courts.

If the pets are not removed, you will need to take the next step to seek possession of the property.  You can find form 3 plus lots of information on Eviction under section 8 clause 12 here:

https://www.gov.uk/guidance/as…

Should you not wish to get involved yourselves in the possession paperwork, then a solicitor or letting agent would be able to help.

Until next week.

http://www.hallandthompson.co.uk

 

 

Investing in Retirement Homes in Tamworth – Pros and Cons of

With banks offering minimal returns on your savings, are there savvier ways to invest your money?

For those approaching retirement age, have you considered  investing in a retirement home for your retirement income.

Lots of social activities

Lots of social activities

Benefits of investing in retirement homes

Retirement homes or villages tend to be situated in chocolate box villages or towns which are popular with an older folk, such as Devon.  Here residents can enjoy a slower pace of life with their picturesque surroundings.

More and more people are discovering the benefits of downsizing, after all that big rambling house is no longer required and it’s  too much to maintain.

You may not feel ready to move into a retirement village  yourself, however you may welcome the additional income. So, even if you decide moving into a retirement home is not for you, now or in the future, the rental yield would be most welcome.

Recent research shows that half of all people over the age of 75 live alone, and one in ten of those aged 65 or over say they feel lonely. Half of all older people consider the TV to be their only form of company.

Loneliness can have a impact on one’s health – research has shown that lonely people are twice as likely to develop Alzheimer’s than those who interact with other people.

Retirement homes regularly hold bingo evenings, coffee mornings, day trips to local excursions, they have Wellness Spa & Gym centres, a restaurant and a library. This gives residents the opportunity to socialise with each other as much or as little as they wish, folk are never lonely in a retirement home.

With the UK’s ageing population, there will always be a demand for residential homes/villages. For those of us who are not quite ready to sell up the family home and move into a retirement village, good rental returns are guaranteed. Leases can be flexible  so that they can be passed on to other family members should anything happen to the investor.

The cons of investing in retirement homes

As care homes are limited to the over 55s, there is a smaller pool of potential residents, however with the UK currently having a large elderly population, occupancy levels should be  relatively good.

Charges will be payable as there will be management  company overseeing the daily running of the care home, so this will reduce the rental yield. However, if the property is purely an investment opportunity it could be a completely hands off investment.

So whether you consider a retirement home for yourself or as an investment, why not look into the facts and figures.

As always any thoughts are always welcome, lorraine@hallandthompson.co.uk

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How to be a good Tamworth Landlord

How to be a good Landlord!

Putting processes in place can help to make property management a lot easier, here are some tricks of the trade:

 Communicating with tenants:

  • Writing is always better than phone
  • Do whatever is easiest for them –  text, Facebook or even   WhatsApp
  • You don’t have to give out your phone number, as long as you are contactable  – You can Skype
  • Set out ground rules at the start of the tenancy about when you’re contactable, and stick to them! Once you deviate from this your tenants will always expect you to answer them, whatever the time of day.

 

 

 

 

Chasing up rent :-

  • Ideally use standing order or direct debit – you’ll know it’s set up properly
  • Diarise rent date and contact the tenant on the same day if the rent doesn’t materialise
  • Have a process –  e.g. text day 1, text day 2, call day 3, final warning day 4
  • Don’t fall for those sob stories, you are running a business!

Dealing with emergencies :-

  • What is an “Emergency” you need to set ground rules
  • Instruct tenants about what to do in an emergency.  You may not always be the best person to call first.
  • Perhaps consider landlord emergency cover

Dealing with routine maintenance :-

  • Build up trades contacts and ensure you treat them well
  • Save a visit by seeing if it’s something the tenant can easily fix  e.g. washing machine filter or  unblock the  sink
  • Communicate clearly about damp and condensation – explain the difference, send yearly leaflets “how to guide”
  • Use routine inspections to look for early signs of repairs that will need doing.
  • Ensure you also check for early signs of repair works on the external of the property

Inspections :-

  • Quick check of each room
  • Check smoke alarms
  • Visually inspect electrics
  • Look for condensation
  • Look for early signs of repairs that will be needed

Be proactive and stop issues from happening in the first place, remember the saying “work smart, not hard”.

Until next time

http://www.hallandthompson.co.uk

 

 

Japanese Knotweed – The Scourge Of Tamworth Landlords

Japanese knotweed, the invasive plant brought over to Britain in the 19th Century is a perennially herbaceous plant. It can grow up to 20cm a day in the summer and has been known to  develop a stubborn root system that can establish itself over 2 metres deep into the ground.

japanese knotweed picture
japanese knotweed picture

Introduced to the UK as an ornamental plant in the Victorian era, it was widely used to hide unsightly railway line features, causing the weed to spread rapidly throughout the rest of the country.

It is a known fact that Knotweed  threatens millions of pounds worth of property transactions in the UK.

While knotweed is a problem for homeowners to treat, it poses considerable challenges for estate agents as well, they  stand to lose out from  sales falling through.

Japanese knotweed
Japanese knotweed

So, what do you need to know about knotweed, and how should you approach the issue?

Japanses Knotweed grows rapidly and is able to grow through cracks in concrete and can undermine the structural integrity of a building.

Recent research conducted by the Crop Protection Association  revealed that: –

  • One in ten people lost money on a property following an infestation of knotweed.
  • One in seven people  saw a property deal fall through because of the presence of knotweed.
  • One in five saw the value of their house drop because of the presence of the weed.

Any attempts by sellers not to declare knotweed can cause problems for estate agents if a prospective buyer spots the plant.  Agents are also obligated to inform a prospective buyer of the presence, as this may affect their decision to buy the property.

One of the biggest knotweed problems confronting agents is it being wrongly diagnosed as Japanese knotweed when in fact it could easily be Himalayan Balsam, Bind Weed or Russian Vine.

The Crop Protection Association  revealed that: –

  • Less than a third of people felt confident that they’d be able to recognise knotweed.
  • One in six people said they had a good understanding of the plant.
  • Over one in four people stated that they knew nothing at all about knotweed.

If knotweed is found to be present, homeowners should be reassured that it does not necessarily have to affect a sale. If a proper remediation strategy is in place with warranties and insurance, the legal guarantees can demonstrate to solicitors that the knotweed issue is under full control.

For more information about Japanese knotweed, visit: http://www.japaneseknotweedcontrol.com

Don’t Forget you can keep up to date with all our articles on the Tamworth property Market on our other media sites:-

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Until next time, Happy house hunting

 

5 Reasons Why Tamworth High Street Estate Agents are Better Than Internet Estate Agents

There doesn’t seem to be a week going by that a new online call centre based estate agency opens offering unbelievable services at quarter of the price, implying their service is just as good as the so called ‘expensive’ high street agents.

1/ Online Agents are not No Sale No Fee. On the face it.. a similar service for a quarter of the price sounds fantastic! Who doesn’t want to spend less on agent fees when trying to sell their Tamworth home? Yes, the fee is lower, but you will have to pay it upfront (or defer it for up to 10 months but still have to pay) whether your property sells or not.

2/ Online Agents Hidden Extras. The eye-catching low fees for these call-centre online agents are, on the outside, attractive but when you dig a little deeper you find that the low fee is not all it appears to be. Add-ons can include extra for paying accompanied viewings, floor plans, listing on Rightmove or being forced to use their call centre solicitors at the other end of the Country.

3/ Experienced Estate Agents. Call centre online agents are what they say they are on the tin – online, and the majority if not all of your negotiations and communications will be with the folks in the agent’s national call centre. Do you want the sale of your largest asset handled by someone sitting in a call centre 200 miles away from the property as they attempt to sell, without that all vital local market knowledge? I have to ask, how can these online agents know about your home, school catchment areas etc., and the locality in Tamworth?

4/ Local Knowledge of Tamworth. If you’re selling your home in Tamworth it pays to choose an agent with local knowledge of the Tamworth market. Every Tamworth High Street agent is aware of the Tamworth market trends and most importantly sensible pricing structures for the area.

5/ Getting the Best Price for Your Home. The High Street agent fee is a huge incentive for them to get it right for you – first time. At Hall and Thompson Estate Agents, we meet all of our clients to discuss a realistic market price for their Tamworth property.

We never offer to market properties for more than their true market value – a ploy some online call centre based estate agents do in an attempt to win your property – but this guarantees that when your property does go onto the market for the first time (the most important time), it gets little or no interest as buyers know their prices and can’t be fooled.

Our fee ensures that you receive the very best service from us – it is totally in our best interest to find the most suitable buyer for your home and get them to pay the best price for it.

What are your plans? Are you getting your house ‘sale ready?’ 🏡 Do you need your house valuing? Give us a call here at Hall and Thompson and let us see how we can help you. 01827 425195 or 07531484956

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Tamworth Property Market – Which Houses are Actually Selling?

Beast from the East, Russia, Facebook, Brexit, Trump, House prices up, House prices down … the Press is full of column inches on Brit’s favourite subjects of politics, scandal, weather and not forgetting (and I appreciate the irony of this!) the property market. As an agent belonging a national group of letting and estate agents, talking to my fellow property professionals from around the UK, the one thing that is immediately apparent is the UK does not have one property market. It is a hodgepodge patchwork (almost like a fly’s eye) of lots of small property markets all performing in different ways.

… And that made me think … is there just one Tamworth Property Market or many?

I like to keep an eye on the property market in Tamworth on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Tamworth, be that a buy-to-let property for a Tamworth landlord or an owner occupier house for a home owner.  So, I thought, how could I scientifically split the Tamworth housing market into segments, so I could see which part of the market was performing the best and the worst.

I decided the best way was to split the Tamworth property market into four equal size price bands (into terms of households for sale). Each price band would have around 25% of the property in Tamworth, from the lowest in value (the Lowest Quartile or 25%) all the way through to the highest 25% in terms of value, the Upper Quartile.  Looking at the market, I have calculated that these are the price bands in Tamworth are as follows:

  • Lowest Quartile (lowest 25% in terms of value) … Up to £150,000
  • Lower/Middle Quartile (25% to 50% Quartile in terms of value) … £150,000 to £190,000
  • Middle/Upper Quartile (50% to 75% Quartile in terms of value) … £190,000 to £250,000
  • Upper Quartile (highest 25% in terms of value) … £250,000 Upwards

So, having split the Tamworth Property Market approximately into four equal sizes, the results in terms what price band has sold (subject to contract or stc) the most is quite enlightening –

Tamworth  Available Sold STC % Sold
Up to £150,000 69 107 60.8%
£150,000 to £190,000 79 112 58.6%
£190,000 to £250,000 102 95 48.2%
£250,000 Upwards 180 79 30.5%

Although the results are close, the best performing price range in Tamworth is the lower market. As I would expect, the upper quartile (the top 25%) is finding things toughest. Interestingly for Tamworth landlords, with the lower market and the middle market selling well, it looks like there are plenty of Tamworth landlords buying properties to add to their buy to let portfolios. Even though the number of first time buyers did increase in 2017, it was from a low base and the vast majority of 20 something’s cannot buy, so need a roof over their head (hence the need to rent somewhere).

It is a fact that British (and Tamworth’s) housing markets have ridden the storms of Oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008. No matter what happens to us Brexit or anything else … unless the Government starts to build hundreds of thousands extra houses each year, demand will always outstrip supply … so maybe a time for Tamworth landlord investors to bag a bargain?

Want to know where those Tamworth buy to let bargains are?  Follow my Tamworth Property Blog or drop me an email because irrespective of which agent you use, myself or any of the other excellent agents in Tamworth, many local landlords ask me my thoughts, opinion and advice on what (and not) to buy locally … and I wouldn’t want you to miss out on those thoughts … would you?

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

https://www.facebook.com/Hallandthompsonestateagents/

https://www.youtube.com/channel/UCyF9OUR3g6E8HywCx7tU4DA

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http://www.hallandthompson.co.uk

https://twitter.com/hallandthompson