Spring has sprung
Spring has most definitely sprung!
I wanted to start writing a regular newsletter for our valued customers so here it is!
As you are aware the past 6 months has been one of tragedy with the sad passing of Andrew Boyle, difficulty after Harrods deciding it would close business banking operations and change with our new branding and marketing. To say it has been a trying time would be an understatement so we thank you for your kind words & patience these past months.
With Spring having sprung it felt like now was an opportune time to put together something to keep you abreast of all things ‘Letting’ in the local market and with changes in terms of legislation which have, or are, coming into effect. We also have a nice little offer for you so read on!
LOCAL MARKET CONDITIONS
The market has been stubbornly quiet throughout the winter, in the main due to the uncertainty of Brexit, but has seen a pick up in recent weeks. I am not someone who tries to convince his clients that all is well when the market is quiet – what is the point!
The recent up turn has coincided with the glorious weather we have had – cue newspapers with pictures of Brighton and Hove opposite shots of Spain! – but we also took the decision to reduce our tenant fees to entice more applicants on the properties with the longest voids. We do all and everything we can to ensure your properties are let with minimum void periods.
“A BIRD IN THE HAND…”
We also reduced several rents on properties in consultation with our clients. If you think of it this way; a £1000 per month property that sits empty is losing £33 per day! In my opinion it is much better to reduce the rent for the initial 6 month tenancy where, if the market is buoyant, the rent can be raised and if the tenant considers leaving you know the market is stronger. We always discuss and advise on the rent levels when properties come available.
I believe that a tenant paying a rent that stays long term is the ideal situation for all parties – sure rents can be raised but in a static market this risks the tenant vacating and having a void that actually eradicates any increase that may have been sought. A bird in the hand…
I think once the final deal of Brexit becomes clearer and people have more certainty then the market should regularize once again. One great side effect of the uncertainty in the market is the average length of tenancies, generally running at around 18 months to 2 years!
There several new pieces of legislation that have, or are, coming into effect;
As of 1st April this year any tenancy with an Energy Performance rating of below an ‘E’ will not be able to be rented. This also applies to renewals and extensions if the tenancy lapses into a ‘periodic’ tenancy. All properties, even tenancies predating this new legislation, will have to be at minimum ‘E’ by 2020. There are fortunately few on our books and we will be contacting you if works are required to bring them up to the required levels. Generally simple steps can be made such as requesting the tenant to change to a dual tariff electricity meter and we have already taken steps where possible.
General Data Protection Regulation (GDPR)