With financial pressure set to stay with us throughout 2023, what can landlords do to maintain their rental income while supporting tenants?

Concerns over the rising cost of living are shared by both tenants and landlords. Many people are having to cope with higher outgoings, whether in the form of rent, energy bills, mortgage rates and food prices.

A key issue for any landlord feeling squeezed by higher borrowing costs on their property is how to sustain the regular flow of rent payments so as to avoid arrears.

Here, we have put together five useful tips:

Have an open, honest discussion with the tenant about energy and utility bills. If these are included as part of the rental agreement, shop around to check the property is benefiting from the best price. If not, switch and consider passing on all or some of the saving. If the tenant manages such bills themselves, and perhaps took on the current provider either from you or a previous occupier, again you could encourage them to shop around for a cheaper deal and so save money. You could also discuss with your tenant the range of assistance schemes the Government has made available in recent months to ensure they are making best use of these.

Ensure the energy performance of the property is as good as it can be.  Currently all residential rental properties must have an EPC, Energy Performance Certificate, at a rating of ‘E’ or above. It remains the government’s intention that this will rise to a minimum of a ‘C’ rating for new tenancies from 2025 and for all tenancies by 2028.    While investing to improve energy efficiency presents an upfront cost, there are grants, subject to eligibility, available to help and, in the long run, a property with a good rating will be more attractive to tenants because energy costs will be more affordable.

Be cautious about proposed rent rises. It is understandable to want to increase rent given the economic situation. However, before doing so, consider your tenants’ ability to pay against the value and care they add to the property. Ask yourself if having the property empty for a month or two between tenants, if the present occupier couldn’t afford the increase, would cost more than keeping the rent as it is. If you do opt for an increase, perhaps because you are facing higher borrowing costs, consider what adjustments or improvements to the property would make it justifiable. In the event that your tenant falls into arrears, subject to circumstances, agreement of an effective payment plan to help bridge short term financially difficult periods can potentially avoid additional legal costs and reletting fees.

Manage risk. Remember the property market is characterised by competition and tenants can always exercise their right to leave you. You can mitigate the risk of this by ensuring the property is well maintained at all times. Keep it tidy and pleasant to live in. Depending on responsibilities under the tenancy agreement, you should ensure there are regular visits from a gardener and window cleaner. If a tenant decides to renew their contract or remain in the property on a periodic tenancy following the end of their fixed term, it can be a nice touch to send in a professional cleaner to give the property a freshen up.

Show empathy. Either beginning a relationship through Chinneck Shaw or direct contact, it’s essential to make sure the tenant feels empowered to disclose damage or issues with the property when they arise. If wear and tear is caught early it can save you money and grief down the line while ensuring the property is somewhere the tenant is happy to live in. As the tenancy progresses, be empathetic when tenants communicate reasonable requests, such as non-permanent additions to the interiors, or a small, non-invasive pet. This way you won’t miss out on quality tenants who will respect the space.

For more information on the lettings market and how Chinneck Shaw can help you as a landlord, visit our ‘Let’ pages. You can also stay up to date by receiving our quarterly newsletter.

Downsizing is all about moving to a property that better suits your needs or time of life.

A savvy move at the right moment can save you money and free up more time and cash to do the things you love.

Many downsizers take advantage of equity in their current home, one that they may have lived in for years. They may have just about cleared their mortgage, if not paid it off completely.

All going well, the property will have increased in value, so if you are moving somewhere smaller you will likely have reserves of cash to put down.

Being a cash buyer gives you a big advantage in the market. You can respond to sellers quicker than those prospective buyers trying to arrange a mortgage and you can often avoid the stress of a property chain and agreements falling through.

Downsizing can offer a greater quality of life. While it can be emotive to think of moving out of a long-standing family home and leaving behind treasured memories, it can be a positive step.

Of course, changing life circumstances are often the determining factor in a decision to downsize. It can be positive, but on the other hand, people do reluctantly move to smaller homes for financial reasons, because they are facing bereavement or family breakdown, or they have declining health. Many downsizers will be ‘empty nesters’ going through a host of mixed emotions as their children grow up and move on.

The best advice is always to consider carefully what your needs are before you actively look for a new home.

At this time of huge pressure on household budgets and the cost of living, downsizing may well be a choice driven by energy bills, mortgage rates and the other costs of property upkeep. Understanding the full financial picture is essential.

Leaving a bigger home for a smaller one doesn’t necessarily mean you have to move out of the area. You may have family, friends or neighbours you want to be in contact with. On the other hand, perhaps you want a fresh start in a completely new location.

Also, while you may want a smaller home, does the same go for the garden? A smaller space will mean less of a commitment than you currently have but perhaps you actually want a bigger garden because you love gardening and now have the time to finally indulge your passion.

If you are at a point in your life where managing the stairs is becoming difficult, you may want to go for a bungalow or a ground-floor flat.

One issue you will certainly have to sort is the amount of possessions you have. As there is inevitably less space in a smaller home, you won’t be able to take everything with you. Meeting this challenge positively, you can view downsizing as a golden opportunity for a thorough clear-out of items you no longer need. And you don’t have to throw it all in a skip. Some things you will naturally want to take with you, others you can sell, donate to charity or give to family or friends.

If you are thinking of downsizing to a new home, talk to us. We can guide you through the whole process, beginning with a detailed expert valuation of your current home, advice on how to market it and help with your property search. For more information on our support for sellers, visit our sell pages.

You can also stay up to date on trends in the property market by receiving our regular newsletter.

Prospective buyers want to view themselves living in the warmth and comfort of the home

As we return to our normal daily routines after the festive break, it’s natural to think of winter as a season to hunker down, keep cosy and await the welcome onset of spring.

So, when it comes to the housing market, your impression may well be that activity is in hibernation here too.

There is no doubt that spring and summer are indeed the busiest times of year for home sales. Check out our ‘selling in the spring’ blog for some of the reasons why.

But, while winter is not traditionally the most popular season, savvy sellers know it can actually offer a great opportunity to pitch to serious buyers.

Remember, seasonality is just one factor informing a property move. Location, finances, personal circumstances and future intentions are up there on the list too.

And there may well be fewer ‘competitor properties’ vying for attention, so putting your home further to the forefront of a buyer’s mind.

As ever, we at Chinneck Shaw can advise you on all aspects of selling so please feel free to come and talk to us.

Expert advice is always recommended but never more so than in this challenging period for the economy.

To help in the meantime, if you are thinking of putting your home on the market in winter and want to arrange viewings, here are ten handy tips to maximise your chances of success:

OUTDOORS: First impressions are crucial whatever the season, and these start outside. Think ahead on winter garden maintenance. Clear away leaves and mud from green spaces and outdoor walkways. Make sure the driveway is neat and tidy. You can add to the welcoming, warm impression by hanging exterior fairy lights around shrubs and trees.

CLEAN CARPETS: Inside, make sure entrances, the hallway and carpets are free of any muddy footprints left by people coming in from the rain.

GREENERY: Flowers and plants will create a clean, fresh feel so always look to brighten up rooms with tasteful greenery.

LIGHT AND BRIGHT: While the days remain drab and dark, good use of interior lighting will help to give a warm, cosy presentation of otherwise dull interiors.

TIMING: Make the most of what natural light there is at this time of year by arranging viewings in the late morning or early afternoon.

HEATING: While we are all concerned about fuel bills right now, it is important to make sure your heating is on ahead of a viewing. You don’t want a prospective buyer to be put off by feeling cold as they walk in and have a look around.

STYLE: Refresh your home styling for winter. Softer materials in items such as throws, rugs and cushions can be made warmer and more vibrant with the correct choice of colour.

DECLUTTER: Now that the Christmas decorations are down, congratulate yourself that the decluttering process has already begun. Keep going. Your prospective buyer wants to view themselves living in the home so the more you can create a neutral space with room to breathe, the better. This means that as well as removing any muddy shoes or boots from view, it is a good idea to tidy away personal items such as family photos or greeting cards that are on display. 

SCENT: The subtle use of a pleasant smell can make a property more attractive. That’s because at an emotional level people will tend to connect a scent they recognise with a happy memory. Making your property smell nice is especially important for a winter viewing if, because of the cold weather, it has been shut up with the heating on and not ventilated. Freshly baked bread, coffee and citrus are among the scents that tend to appeal most.

WELCOME: If you are greeting the prospective buyer yourself, make sure to welcome them with a big smile, introduce yourself and offer to hang up their coat. People will always appreciate a friendly greeting and initial conversation as they step into the warmth, especially so if they have arrived in bad weather.

In a separate post, we’ve set out some general advice on preparing your property for winter. As the temperatures plummet, taking the time to do some simple checks can help to prevent costly bills associated with repairs to burst pipes or blocked gutters.

If you are looking to sell your home, we can help you through every stage beginning with a detailed expert valuation. For more information on our support for sellers, visit our sell pages. And for buyers, landlords and tenants, we have a range of really useful information on our property search pages.

You can also stay up to date on trends in the property market by receiving our quarterly newsletter.

Portsmouth and Southsea estate agency Chinneck Shaw has boosted its team with the recruitment of a former senior consultant from a property services multinational.

Harry Renton-Rose joins the firm as Associate Director, focused on lettings and property management, moving from the London head office of real estate giant Savills.

His appointment is designed to consolidate and strengthen Chinneck Shaw’s position as one of south Hampshire’s leading providers of property management and lettings services for owners, landlords and developers.

Aims in the new role include the delivery of expert insight and advice on planning requirements for new ‘build to rent’ developments.

Harry joined Savills with a degree in planning and development from Oxford Brookes University followed by a post-graduate diploma in planning.

Over ten years, he worked his way up as a planning consultant to reach Associate Director level and was based at the firm’s HQ in Margaret Street in London’s West End.

Among his clients were major housebuilders such as Berkeley Homes and property and asset management companies acting on behalf of investment funds, including global player Jones Lang LaSalle IM.

Harry worked on strategic mixed-use schemes across London, including the repositioning of office developments for education facilities, student accommodation and data center use. He also spent much of his time delivering a 4,000-unit housing masterplan in the East End which included over 1,000 build to rent homes.

On his move to Chinneck Shaw, Harry said: “It has been a whirlwind coming into a new office with different processes, but the basic building blocks of property are the same and everyone at Chinneck Shaw is so knowledgeable about what they do.

“My new role will involve smaller-portfolio landlords than I’ve been used to and I’m relishing the opportunity to experience the local, personable contact that this promises.

“I will be dealing more directly with developers, contractors and tenants whereas before I was mainly engaging on a business-to-business level. That will be an interesting change having had the background in the wider property industry.

“It’s a different scale at Chinneck Shaw and closer to the coal face, easier to see how you are making a practical difference to people rather than being a consultant in an ivory tower.

“The team has been really welcoming and taken me on tours to where Chinneck Shaw manages properties. That’s fantastic, lovely to see.”

Asked about his aims in the role, Harry said: “We have an aspiration to add services such as planning advice for those interested in the new build residential and purpose-built rental sector. I’m keen to offer advice in some capacity, perhaps to advise our clients on what to expect when engaging with developers and also to represent them as they navigate the planning process themselves. I can speak the language of development, so this is about taking the skills that the business already has and developing them further.”

Having secured professional certification through the RTPI (Royal Town Planning Institute) earlier in his career, Harry said he hoped to now go on and gain further accreditation through ARLA, the Association of Residential Lettings Agents, along with other accreditations which would support the growth of the business.

“That’s part of the plan in line with the wider team at Chinneck Shaw all growing and sharing their knowledge together as property professionals,” he said.

Welcoming Harry to the team, Neil Shaw, Chinneck Shaw Managing Director, said: “This is a real coup for us. Harry brings us a decade of top-level property experience, gained on some of London’s biggest property developments, both mixed use and residential.

“He is highly regarded because his knowledge and his understanding of the property market is second to none. His appointment is a key strand of our continued growth and expansion across south Hampshire.”

Harry was born in Guildford and spent most of his childhood in Chichester before going to university. Along with the new appointment, he is relocating his family – wife Lucy and young children Mabel and Jack – from London to the south coast.

“I’m a keen surfer and paddleboarder and it is lovely to be outside the city now and be perfectly positioned for the family to access the water and nature,” Harry said.

It’s more than 40 years since Jona Lewie first sang ‘You’ll always find me in the kitchen at parties’.

While his chart hit and Top of the Pops performance have long passed into the mists of pop history, the message about the appeal of the kitchen still rings true today.

Often cited as the ‘heart of the home’, the kitchen is time and again the most popular room searched for when prospective buyers and tenants are browsing the web and looking at properties.

Perhaps that’s no surprise. The kitchen is not only the room where we prepare breakfast, lunch and dinner, and snacks and drinks in between, then do the washing up.

It’s also where we gather with fellow occupiers and spend time with visitors, and of course if you have enough space, where we eat and relax as well.

So given its accepted importance to the buying decision of someone viewing the home, what is the best advice to make your kitchen more ‘sellable’?

Here are some essential tips for sellers and landlords:

• It’s all about the look and feel. Think about what it’s actually like to work and cook in the kitchen. That’s what a prospective occupier will be considering. Is it easy to use? Comfortable? Spacious enough?
• If your cabinets are looking a little tired, it’s a safe bet that a visitor will think the same. You can boost the storage, functionality and overall appearance of the kitchen by replacing and updating your cabinets.
• The same goes for work surfaces, counter tops, flooring and appliances. You can create a far better impression if your fridge and cooker look good and complement the rest of the room’s design.
• Consider the colour scheme. A fresh paint job can make a world of difference. Going ‘neutral’ with white or another light colour can be a sensible choice to universalise the look and feel and appeal to more people. Too dark and you make the space feel smaller. Too ‘quirky’ and you can turn some people off.
• When you are hosting a viewing by a potential buyer or tenant, declutter as much as possible. Remove your personal items and photos. That way, it’s easier for your visitor to visualise being there and using it themself rather than you.
• If you have a centre island, make sure it’s the right size for the space. It has to be big enough to use but not too big or it can make the room look cramped.
• Light and bright. The correct choice of lighting is important. A kitchen has to work well in all seasons of the year. You want to do what you can to flood it with natural light. That’s obviously easier on a sunny day or in summer. If it’s winter or dark outside and there are few or no windows, make sure you still use well located lights to show the room at its best. Lights in corners can give the impression of a bigger living space.
• A clever way to make a kitchen appear more homely and appealing on a first viewing is to have baked some bread, a cake or biscuits beforehand. The aroma of fresh baking is very attractive. Similarly, the smell of recently percolated coffee tends to go down well too.

Parties or no parties, following Jona Lewie’s well-observed message you should always try to secure a positive first impression of your kitchen if you want to highlight your property at its best.

If you are looking to sell or rent your home, we can help you through every stage beginning with a detailed expert valuation. For more information on our support for sellers, visit our sell pages. And for landlords, visit …

You can also stay up to date on trends in the property market by receiving our quarterly newsletter.

As we saw in the summer of 2020 during the Covid-19 pandemic, the raising of the Stamp Duty threshold can have a very positive impact on activity in the property market.

Two years ago, the move to cut duty encouraged the resumption of homebuying in what was a difficult and challenging period.

The Stamp Duty ‘holiday’ prompted many more sales and transactions than there might otherwise have been.

Fast forward to now and a new Chancellor has announced a similar move in what is also a highly uncertain time in the economy characterised by the highest inflation rate in decades and emergency government intervention to combat rising energy costs.

The measures in his mini-Budget as regards Stamp Duty were:

• Raising the threshold of how much a property has to cost before Stamp Duty is payable. This figure has gone up from £125,000 to £250,000.
• Helping first-time buyers. They will now pay no Stamp Duty on the first £425,000 of property value, a rise from £300,000.
• Raising the value of property on which first-time buyers can claim relief, from £500,000 to £625,000.

Kwasi Karteng has said he believes these measures will collectively take 200,000 people out of the need to pay Stamp Duty altogether.

While in the past, Stamp Duty ‘holidays’ can lead to property prices going up because of the growth in demand they encourage, we believe big rises are unlikely on this occasion.

That is because rising interest rates, including their impact on variable rate mortgages, will act as a restraint on affordability along with the other cost of living pressures people are facing.

However, we welcome the new Stamp Duty measures nonetheless as a means of maintaining market confidence and growth.

For more information, we highlight a range of essential indicators about the local property scene on our website that you might find useful.

All at Chinneck Shaw are deeply saddened to hear of the passing of Her Majesty Queen Elizabeth II.

We would like to express our condolences to King Charles III and the Royal family for their profound loss and sorrow.

As our longest reigning monarch, the Queen’s exemplary dedication and public service going back to the 1950s have long been a reassuring inspiration to millions of people in the UK, the Commonwealth and around the world.

She always performed her duties with grace, dignity and calm assurance, remaining a steadfast figurehead through good times and challenging periods including political and economic crises.

Her Majesty was an extraordinary person and we are thankful for all she has done for the country.

On behalf of everyone connected with Chinneck Shaw, we pay tribute to Her Majesty The Queen.

We have teamed up with the regional land and property auctioneers Clive Emson to sell a couple of properties on the Isle of Wight, a house in Eastleigh and nine lock-up garages in Cosham.

This activity has prompted us to outline some of the benefits of selling at auction and how the process works.

The first point to make is that auctions can deliver a result very quickly with a deposit secured, the buyer committing to the purchase and the way clear for an immediate exchange of contracts.

In general, it can take a few weeks to do all the necessary paperwork and ready the auction entry but once that hammer lands, it’s legally binding so there is no risk of the buyer pulling out, the deal falling through or you having to renegotiate on price.

Success rates at auction are also very high with around four out of five properties attracting a buyer.

Advantages

As you know the date of the auction in advance, you also know the eventual completion date which will depend on the conditions of sale you agree with the auctioneer.

You also have reassurance over the minimum price the property will sell for. That’s because, as the seller, you set the reserve price. Of course, the ideal outcome for you will be buyers bidding against each other so you can reach a higher figure.

Auctioneers want their initial valuations to help towards their success rate in taking on properties to sell so it’s always in their interests to be as accurate as possible in agreeing the reserve price with you. That gives you an honest, realistic position from which to start the auction process.

Another advantage of selling a home at auction is that you tend to find the prospective buyers involved are experienced and knowledgeable about property. They are more likely to be cash buyers and so not reliant on arranging a mortgage. And they may well be investors or developers who can see the potential of the property and not be put off by the kind of issue, such as an unusual feature, that another buyer may worry about.

Auctioneers will also welcome the opportunity to sell a tenanted property. For an incoming buyer with investment ambitions, that means they can anticipate rental income from day one. And if, for whatever reason, you don’t find a buyer, you still have your tenant on board to keep your payments coming in.

Current properties

Turning to our activity with Clive Emson Auctioneers this month, it’s an online auction that ends on Wednesday, 21 September, with the bids opening 48 hours beforehand.

Currently let at £42,460 per annum, and with a guide price of £400,000-plus, a mixed freehold investment of four flats and two commercial offices is located at 24 and 26 Carisbrooke Road, Newport, Isle of Wight.

We’re also marketing a freehold building on the Island, arranged as five residential dwellings, on 0.6 acres of land and guided at £280-300,000.

It’s called The Brannons and is located at Station Road, Wootton Bridge.

The Eastleigh property, a two-bedroom terraced house at 276 High Street, has a freehold guide price of £165-175,000.

The nine garages in Cosham, situated to the rear of houses on Hawthorn Crescent and the mainline railway, have a freehold guide price of £150,000.

For more information on these properties, please see the auction catalogue at https://www.cliveemson.co.uk/.

If you would like to discuss selling your property, whether by auction or not, come and talk to us. For more information on our support for sellers, visit our sell pages.

Making your home more eco-friendly is of course good news for the planet, but it has other benefits too.

It can help raise the property value and, if you are looking to sell, make it quicker and easier to find a buyer.

The results of a recent survey by Rightmove, titled Green Homes, What Does the Future Hold?, indicate a direct correlation between buyer demand for a property and its energy efficiency.

At this time of ever higher energy prices, the report found that improving a home’s energy rating could add 16% to the asking price.

The analysis reflects increasing awareness of ratings shown on EPCs, or Energy Performance Certificates. The 16% uplift in value is the prospective benefit of moving up from an F to a C rating.

Completed by a qualified assessor, an EPC provides information about a property’s current energy use and the likely future costs of heating, lighting and hot water.

Certificates include potential ratings if recommendations for improved energy use are implemented.

These might include measures such as installing solar panels or better insulation or replacing an old boiler with a heat pump.

Nearly nine out of ten homeowners (89%) responding to Rightmove said the biggest reason for making energy efficiency improvements was to save money.

But that wasn’t the only driver.

Forty-one per cent of respondents said that adding value to their home was the most important reason while just under half (49%) said their dominant motive was to cut its carbon footprint.

And 28% cited the need to future-proof the property ahead of a possible sale in the future.

All these factors point to the need to be more aware of sustainability and the steps you can take on the overall path towards net zero.

EPC ratings will play an increasingly vital role in making properties greener.

This is especially true in the rental market including Buy to Let.

Since 2018, landlords and Buy to Let purchasers have been legally prohibited from renting out properties below an E rating unless there is an exemption.

From 2025, the rules will tighten under current government plans. The E grade will switch to a C for new tenancies. The same rise will apply to all tenancies from 2028.

The message is clear. Greener homes will steadily become the expectation rather than the exception.

We may well see more buyers asking for discounts if, for example, a property for sale has only single glazed windows or an old boiler.

We could also see a rise in ‘green mortgages’, offering more favourable terms for homes with higher EPC ratings.

While of course good for the planet, this could present a harder sell for owners of older, less energy-efficient homes looking to move.

And a buyer could be faced with paying a less favourable mortgage rate if they have their heart set on that lovely, historic period home that has a poor rating because of its structure and features.

The upshot of all this for owners, sellers and landlords is to ensure the energy performance of the property is as good as it can be.

And if you haven’t already, it’s time to start thinking about that right now.

Check out our previous blog on EPC ratings and if you would like more information on how best to prepare your home for sale or rent, contact us here at Chinneck Shaw. You can also stay up to date on latest developments in the property market by receiving our quarterly newsletter.

You sometimes hear companies talking about their mission and values.

Some people might wonder what these are and think they are not important, perhaps a bit fluffy or remote.

Here at Chinneck Shaw, we believe they do matter.

In a nutshell, company values are those beliefs and behaviours that support the purpose – or mission – of an organisation.

It’s all about having a set of core principles that guide us, the cornerstones of our working culture if you like.

We took quite a bit of time and had lots of discussions among our team and other contacts to identify and distil into plain English our mission and values.

They needed to be authentic and meaningful, reflecting both our founding vision and how progress with the business continues to evolve.

Our mission statement is: “To provide the best service for people selling, letting, buying or renting property while creating a business we are proud of.”

Yes, it is simple and at first glance, obvious. But it is a really helpful benchmark or rallying point that stays with us every day.

To support and deliver our mission, we require a set of values – real, strategically sound beliefs that capture the strengths of our business.

Here are our values, and what they mean and look like in action –

Natural: It’s about being ourselves, honest, straight-talking and authentic. We never want to over promise. We deliver on what we say we’re going to do.

Entrepreneurial: We are forward-thinking and have a can-do attitude. We embrace technology, think outside the box and don’t stand still. We challenge the status quo and are prepared to put ourselves into a mindset where we take calculated risks.

Generous: We celebrate the success of clients and colleagues. We take an interest, making time to understand. We are kind and thoughtful, show good manners and offer support. We share in lighter moments with smiles and laughter.

Commercial: Smart and innovative, we seek opportunities to grow the business and strive for the tireless pursuit of the best results.

Sustainable: We do our bit to help the planet. We take action to progress our journey to net zero and we spread the word to encourage others to do the same.

Responsible: We are accountable for what we do, always seeking to do things right by our customers and colleagues. We are professional not frivolous. We act sincerely, respectfully, quickly and effectively to address any client issues.

Of course, it’s all very well to just create a list.

To reinforce our mission and values with practical action, we work hard to integrate them into all aspects of our decision-making.

They help us directly to evaluate team appointments, promotions and the management and delivery of all our services.

And we are keen to ensure they are visible and well promoted, hence this blog!

If you would like more information on Chinneck Shaw as a company, we’re always happy to speak with you.

Why not call us on 023 9282 6731 or email us at hello@chinneckshaw.co.uk.

You can also stay up to date on trends in the property market by receiving our quarterly newsletter.