In its new Levelling Up White Paper, the government has pledged to improve the home buying and selling process.

In one section, ministers announce they will be “working with the industry to ensure the critical information buyers need to know is available digitally wherever possible from trusted and authenticated sources.”

Making ‘critical information’ available to prospective buyers is something few people, including the overwhelming majority of sellers, would disagree with.

If you are an owner thinking of selling, we strongly recommend you have a legal pack ready for when you put your property on the market.

That is because you want to avoid any tiny details that might derail your sale.

Delays can be costly and frustrating, and a pack that ‘front-loads’ the necessary information can definitely help to reduce the time between agreeing a sale and moving to completion.

Typical information can include title documents, contracts of sale, certificates of compliance with any planning permission or building regulations and evidence of rights of way.

Since 2008, estate agents have been required by law to disclose material information about a property to the would-be buyer.

The details of any new requirements the government wants to bring in will be subject to scrutiny as the White Paper progresses, but the underlying rationale is sound: all parties want to ensure the sale process is fair and efficient.

It is in no-one’s interest that a property sale falls through because, say, a buyer’s loan approval lapses due to a delay in agreeing survey information or a valuation.

People may remember the previous government initiative on mandatory home information packs (HIPs). These were introduced in 2007 but were scrapped just three years later as they were seen by many to be too onerous and expensive for sellers and actually slowed the market down.

More than a decade on, the government must get the balance right.

For our part, and for the vast bulk of sellers too, any sensible moves to share essential information with buyers are welcome as long as they help the home-buying process.

For more information on how Chinneck Shaw can help you prepare and market your home for sale, visit our ‘Sell’ pages. You can also stay up to date on development in the property market by receiving our quarterly newsletter.

Rental market conditions continue to give confidence for landlords with both price growth and demand staying strong.

As we discussed in our recent 2022 predictions blog, the Portsmouth lettings picture remains bright with average rental prices up 5.3% last year. In Southsea, the figure was even higher, at 5.9%.

And there are many other indicators showing that property – for sale and for rent – remains a safe haven for precious investment funds in what looks set to be a low interest rate economy for some time to come.

Promising signs

Take build-to-rent, or BTR, for example. According to analysis by EG Radius, investment in BTR nationally has more than doubled during the pandemic.

It has been a dramatic rise. In the now far-off pre-Covid days of 2019, developers and investors earmarked capital funds of around £1.5 billion to build more than 6,600 new homes for rent. By 2020, the annual figures had jumped to £3.5 billion for 13,200 homes. The upward trend continued in 2021, with more than £5 billion in BTR investment due to create more than 22,300 homes.

The British Property Federation says the growth of the BTR sector is most evident in regional cities rather than London, so doing its bit for the notion of ‘levelling up’.

Real Estate Policy Director Ian Fletcher told the Showhouse news site: “BTR is not just about increasing property provision. It is a major economic driver, helping attract and retain skilled workers and serving as a catalyst for urban regeneration. The strong growth of the BTR sector across the regions will support the government’s levelling-up initiative and help revitalise town and city centres.”

Price growth

Of course, BTR accounts for just a fraction of the overall rental sector. The term refers purely to new build developments delivered specifically for rent, owned and managed by one landlord and extending to at least 50 homes.

So what are some of the indications about returns on investment in the rest of the property market?

That typical bell-weather, the average house price, is at a 15-year high according to the Halifax index – good news if you are an owner and want to sell up or borrow against the value.

For the same reason – limited supply versus high demand – average rents are also rising at their highest level in 13 years, with the number of potential tenants far outstripping the properties available.

Rental yield

For landlords looking to purchase buy-to-let properties, the key indicator is the health of the rental yield. This is a percentage return based on the monthly rent compared to the property value. A yield of around seven per cent or above is generally considered strong with the obvious proviso that individual properties will vary in their potential for all kinds of reasons. Aside from the condition and size of the property, ‘rentability’ is influenced directly by factors such as locality, commuting times to work and proximity to amenities such as shops, nurseries, schools and green spaces.

The property auctioneers SDL recently published a national ‘rental yield’ league table. Even without taking mortgage costs into account, it makes for interesting reading.

The good news for south coast landlords is that Portsmouth ranks as the third best city in the UK in which to invest in property. Only Manchester, at number one, and Nottingham are above us.

The average asking price for a monthly rental in Portsmouth is £1,427. Compared with the average property value of £242,330, this gives a potential yield of 7.07% – very favourable as against the scores of cities further down the table.

Given the upbeat picture from these and other indicators, perhaps the time is right to consider residential property as a serious investment if you haven’t done so already.

To discover how Chinneck Shaw can help you as a landlord, visit our ‘Let’ pages. You can also stay up to date on trends in the property market by receiving our quarterly newsletter.

As we move into 2022, numerous factors are set to influence the lettings market for better or worse.

To maintain peace of mind, we recommend landlords are aware of these and, if necessary, prepare accordingly.

First, let’s consider market trends. Any decision about starting or expanding a rental portfolio will depend on likely returns. So what we can say about rental prices? Do they signal that the rental market is a good place in which to invest?

The good news here is that rental price growth remains strong. In Portsmouth, the average rent has gone up by 5.3 per cent in the past year.

More widely, Zoopla reported that the third quarter of 2021 saw a 13-year high with average UK growth reaching 4.6 per cent.

The forecast is similarly upbeat with further price rises of between 2.5 and 4.5 per cent predicted during 2022.

In some areas, growth at the higher end will even exceed pre-pandemic levels.

Wherever the average is tipped to land, most commentators looking at the current balance of supply and demand agree that average market rents will rise in 2022.

Second, landlords should be aware of a raft of potential legislative changes enshrined in the government’s Renters’ Reform Bill.

A long-awaited white paper on the proposals is expected in the first half of the year having been put back due to the impact of the pandemic on parliamentary business.

Although the delay means any changes are unlikely to see the light of day until 2023, it is important to prepare early and that means staying up to speed with the bill’s progress this year.

One aspect that has gained recent attention is the potential removal of Section 21 of the Housing Act 1988, the right of so-called ‘no fault’ eviction.

There are many legitimate reasons why a landlord may seek to invoke the law in this area to take their property back.

Should the law strengthen tenants’ rights to the extent that Section 21 is removed, it is likely to be replaced with a more comprehensive interpretation of grounds for repossession, for example under the existing Section 8.

A key consideration for policymakers, and of course landlords and tenants, will be whether or not any new provisions should apply to existing tenancies or only new ones.

Whatever the outcome, our strong advice to landlords seeking eviction will remain that you must make sure all requirements and stages in the process are fully complied with.

There are lots of details to be mindful of, and if you don’t fulfil the letter of the law on each one, you could easily risk a costly and long-drawn-out legal nightmare before the tenant moves.

Another change that could see its way into reformed legislation is the introduction of lifetime deposits. There are many potential complexities here. While such a scheme would enable tenants to reduce the cost of moving between properties, there could easily be problems if a first landlord needed to deduct funds to, for example, compensate for property damage or outstanding rent, so leaving the second landlord in need of a top-up payment. Would a loan or insurance scheme help in that situation? Possibly, but we await the detail.

Another change in the reform bill that could well impact the market is the potential tightening of minimum energy efficiency standards. The expectation at the moment is that if you rent a new property to a new tenant from April of 2025, you will have to meet level C on your Energy Performance Certificate. That requirement is tipped to extend to all existing properties from 2028. In some cases, it’s quite a steep jump requiring considerable investment. Landlords of properties at or below the requisite efficiency levels now are well advised to begin putting money aside for capital improvements.

Among other changes envisaged in the government’s plans is the creation of a publicly available database of ‘rogue landlords’ who have been subject to banning orders. The government has already consulted on aspects of this but not published the outcome as yet.

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.

A dog is for life and not just Christmas is a sentiment we can all embrace.

The soothing effects of having a pet at home are well known and the government’s update to the model tenancy agreement now makes it easier for tenants with pets to secure leases.

Changes to the agreement meant landlords could no longer issue blanket bans on pets.

Instead consent for pets has become the default position and landlords have to object in writing within 28 days of a written pet request from a tenant and provide a good reason.

The Dogs Trust explained one of the top reasons they saw dogs being handed in for re-housing was because of a change in circumstances which meant the owner was moving into private rented accommodation and their pet was not welcome.

In 2020, only 7% of landlords advertised their property as suitable for pets (GOV.UK). With such a small proportion of pet-friendly rentals, some tenants have no choice but to give up their pets.

The Dog’s Trust now hopes that under the new model tenancy agreement more tenants will be able to re-house pets that have sadly been given up for adoption.

Tenants will still have a legal duty to cover the costs of any damage caused by pets, but more tenants will be able to find suitable accommodation. 

Housing Minister Christopher Pincher MP said the change struck the right balance between helping more people find a home that’s right for them and their pet, while ensuring landlords properties are safeguarded.

If a landlord is open to taking a ‘pets considered’ approach then the model tenancy agreement can be really useful to ensure that they are taking into account all of the aspects of allowing pets in their property. 

According to the Dogs Trust, with more and more people becoming pet owners, adopting a ‘pets considered’ approach can increase demand for a property. You are also likely to attract long-term, responsible tenants.

The newly proposed Pet Protection Bill is also awaiting approval from Parliament.

The Dogs and Domestic Animals Accommodation Protection Bill is designed to help responsible pet owners find suitable rental properties.

Currently awaiting its second reading, the bill will allow dogs and other animals to be kept in rental accommodation in England.

The bill will help responsible renters and its focus is the protection and welfare of domestic animals. As well as giving tenants the right to keep pets in their rental property, the bill proposes pet owners have a certificate of responsible animal guardianship.

Certificates will be issued subject to a responsible ownership test, conducted by a registered vet, including:

• Microchipping (for dogs and cats)
• De-worming and de-fleaing
• Required vaccinations
• Ability to respond to basic commands

The bill also proposes that all information regarding an animal and its ownership be entered into a database – including mandatory microchipping for all dogs and cats.

If the proposed bill goes ahead, tenants will not have an unconditional right to keep a pet. Tenants can’t have a dog or domestic animal unless they hold a responsible animal guardianship certificate. If living in the rental accommodation puts the animal at risk, or causes danger or nuisance to people nearby, they will not be allowed.

Under the new legislation, landlords could also restrict their tenant’s right to keep dogs or domestic animals if they hold a certificate of exemption.

These would be issued if the property wasn’t suitable for an animal or the landlord or another tenant has a religious or medical reason not to come into contact with a dog or domestic animal.

The government has recently announced new rules on domestic fire and carbon monoxide alarms within all rented properties.

Key changes to the Smoke and Carbon Monoxide Alarm (England) Regulations 2015 mean landlords need to ensure a carbon monoxide alarm is fitted in any room in their homes where there is a fixed combustion appliance, including a gas boiler.

When any new fixed combustion appliances are fitted a carbon monoxide alarm will need to be fitted by law – gas cookers are excluded from the new regulations.

Landlords in the social and private rented sector need to be aware they will be required to repair or replace smoke and carbon monoxide alarms once they have been informed they are faulty.

The main changes at a glance are:

• Smoke alarms will be mandatory in all social rented homes
• Carbon monoxide alarms will be mandatory in rooms with a fixed combustion appliance (excluding gas cookers)
• Carbon monoxide alarms will need to be fitted when any new heating appliance is added (excluding gas cookers)
• Landlords need to repair or replace faulty alarms

The All-PartyParliamentary Carbon Monoxide Group (APPCOG) has been pressing for changes to the regulations and according to Policy Connect they have welcomed the update.

John McNally, MP for Falkirk and a parliamentary officer for APPCOG, said:

“UK government appears to be making a step in the right direction, a progression to be welcomed, but “asap” needs a firmer target time.” 

Every year there are approximately 60 deaths in England and Wales from Carbon Monoxide poisoning.

According to the NHS website low level exposure to carbon monoxide poisoning can bring on symptoms similar to food poisoning or flu.

The main sources of carbon monoxide leaks will be incorrectly installed, poorly maintained or poorly ventilated household appliances and heaters and central heating boilers.

Carbon monoxide is a poisonous gas that has no smell or taste. Breathing it in can make you unwell, and it can kill if you’re exposed to high levels.

The symptoms of carbon monoxide poisoning are not always obvious, particularly during low-level exposure.

A tension-type headache is the most common symptom of mild carbon monoxide poisoning. 

Other symptoms include:

• dizziness
• feeling and being sick
• tiredness and confusion
• stomach pain
• shortness of breath and difficulty breathing

Long-term exposure to low levels of carbon monoxide can also lead to neurological symptoms, such as:

• difficulty thinking or concentrating
• frequent emotional changes – for example, becoming easily irritated, depressed, or making impulsive or irrational decisions

Breathing in high levels of carbon monoxide gas can cause more severe symptoms.

These may include:

• impaired mental state and personality changes (intoxication)
• the feeling that you or the environment around you is spinning (vertigo)
• loss of physical co-ordination caused by underlying damage to the brain and nervous system (ataxia)
• breathlessness and a heart rate of more than 100 beats per minute (tachycardia)
• chest pain caused by angina or a heart attack
• an uncontrollable burst of electrical activity in the brain that causes muscle spasms (seizures)
• loss of consciousness – in cases where there are very high levels of carbon monoxide, death may occur within minutes

Please keep an eye out for future Chinneck Shaw blogs regarding a deadline date for the new regulations.

Having just come through Storm Barra, it’s timely to think about protecting your home against freezing temperatures, downpours and snow.

Taking the time to do a few checks can save on costly bills when things go wrong and you are suddenly faced with burst pipes and blocked gutters.

Here are a few ideas to help you through the coming months.

1. Check your heating. Check the boiler pressure is suitable. Bleed any air out of radiators if you find the radiators are not heating up. Watch ‘how to’ videos online to see how to bleed and pressurise radiators and top the pressure up.  If you are in any doubt contact a local contractor. Also if you have a wireless thermostat, make sure the batteries don’t run out.
2. Make sure your gutters are clear. It is always best to check the gutters are clear of debris before we get any bad rain, so that the water can flow easily and not get blocked and overflow. Particularly after a bad storm or high winds as this may have blown debris in which will cause blockages. Also check for any loose pipes, clips or end caps that may have come off. Free flowing gutters will prevent potential leaks into the property or any damp water ingress on walls.
3. Ensure any external drains are clear of leaves. With the tree’s shredding their leaves at this time of year it is easy for the drains to become blocked. Check all outside drains to make sure they are free flowing to avoid anything backing up. Most bathroom and kitchen waste pipes lead to external drains and if they get blocked the sinks can back up into the property.
4. Make sure windows and doors open and close easily. It might seem odd to check your windows during winter. But you will still want to ventilate the property to allow fresh air in and to release any condensation, which will prevent black mould build up. You will also want to be opening windows and doors when cooking that big Christmas dinner, so make sure you can close the windows and doors now to prevent them getting stuck open and making your house cold. Most common faults are lost keys, loose or broken handles or damaged window hinges that will prevent a window opening or closing properly.
5. Draft excluders, if you are finding there is a draft in your property, it could be coming from an external door or internal door. It is really easy to get some adhesive tape from a local DIY shop and stick it to the door frame around the door. It tightens up the gap around the frame and door to stop any draft blowing. This can be done on both internal and external doors. For internal doors there are more aesthetically pleasing draft excluders for the bottom of doors that can be purchased.

If the forecast is looking like we are headed for a big freeze, make sure any external water pipes and taps are suitably insulated. As water freezes it expands and can cause the pipes to burst open. It is rare for pipes inside properties in the South of England to freeze over, but during very cold periods or heavy snowfall it has happened. Portsmouth Water and Southern Water tend to put out advice on how to avoid pipes freezing over the winter.

Fewer homes available for sale with multiple buyers circling, makes for a competitive housing market and we have a number of ideas to help you to navigate the current situation.

Our team is vastly experienced and can help ensure you are in the best possible position to secure the home of your dreams.

If you’re going to be selling your home in order to move, the best advice is to put your home on the market now. This is because many sellers are choosing buyers that have already had a sale agreed on their own property.

We love what RightMove currently has to say on the subject and couldn’t agree more with the following advice.

1. Avoid missing out on viewing your dream home

While getting your property on the market before you buy may feel like a leap of faith, it makes sense. If you like a property you’ve seen advertised, it’s likely in this market that another buyer in a position to move forward with the sale will also like it.

Many sellers in a busy market like today will instruct their agent not to complete viewings with buyers who have a property to sell but are yet to begin marketing themselves.

In some of the hotter house markets in south-west London, Surrey and Hampshire, it has been known that agents won’t even allow you a viewing unless you’re in a position to buy.

2. Sellers will take your offer seriously

In a market where there’s a shortage of stock, it’s important to show sellers that you are committed and motivated to move.

Competition to secure the perfect property is fierce. To be considered as a buyer when you finally find your perfect home, you need to be able to proceed. Ideally having your own property under offer, for a bid to even be considered as a potential buyer by many sellers. It’s no good making an offer you can’t deliver on.

Having your existing property “in play” (e.g. at least on the market) will frame your offer on an onward property in the best possible light, and give you the best chance of securing it. Even with a turn-around time of 48 hours from valuation to online, this hurdle might make the difference between your offer and a competing bid.

3. Avoid rushing to sell and having to accept a lower offer

If you do find your dream home in a market as competitive as this, you might be tempted to submit a high offer in order to secure it. and this is a stressful scenario. 

When the right property does become available, the clients that have not got prepared for marketing are often the clients that end up offering a very generous price trying to secure the house of their dreams – and then end up rushing into preparing their property as they don’t have time on their hands. This also tends to result in them accepting a lower offer on theirs  – and end up back to square one.

4. Get an accurate budget for your next purchase

With properties achieving record values at the moment, selling first not only puts you in the strongest position to buy, but will also provide you with an accurate budget for what you can afford to buy next.

If a customer sets out with £350,000 in their mind and achieves £375,000 for their property, they now have £25,000 more to spend. The extra money can really open up more property for them to look at which they wouldn’t have considered affordable if they hadn’t gone to market and sold.

5. There’s everything to gain

If the scenario arises where you have an acceptable offer on your sale, but are yet to find a property yourself, your estate agent can help. It is your agent’s task to manage your buyers’ expectations around timings, reassure on your seriousness, begin the conveyancing process and encourage patience; which in a market where good quality housing is at a premium, should not be too challenging.

Vendors have nothing to lose to have their properties on the market and under offer, and everything to gain. They can be honest with their buyers about the sale being subject to them finding the home they desire. They can then accept an offer on this basis, and not start the legal or mortgage processes until they find the property they want. This way, there is no expense incurred by either the vendor nor buyer and it gives them every chance of having an offer accepted at their end by having a buyer in tow.

When we saw Portsmouth City Council’s announcement to create a new green space in the city centre, it made our hearts sing.

Coming on top of the recent news in the Chancellor’s budget statement that there are plans to create the UK’s longest urban park at the northern end of Portsea Island – this latest announcement, can only help make the city even more attractive to buyers and investors.

According to the council’s website, they are looking at a multi-functional, green space that will not only serve existing communities and users of the city centre but will also be the linchpin for new homes and a new community. The ambitious long-term plans extend beyond the former Sainsbury’s site, and the proposed development sees a phased approach of work that could total 9 hectares of land.

Now called City Centre North the regeneration plans stretch from Charlotte Street to Hope Street to Commercial Road. While it is still early days, experts predict It could take 10 years for the new green space to become a reality. 

Parks are important because:

• They can revitalise an area
• They bring positive economic benefits
• They create safer neighbourhoods
• They promote public health
• They are a space where children can learn about the natural world
• They provide a green link between communities and provide a breathing space

During the pandemic, Portsmouth’s parks and open spaces were used up to three times more than normal. This is unsurprising when we consider that in some neighbourhoods as many as 43% of people do not have access to a garden. With the exception of Victoria Park, there are no other significant green areas within the city centre.

It’s widely recognised that our city centre needs to evolve with the times; just look at the current situation with high street retail, for example. From working and travelling to feeling safe and healthy, if there is one thing that the Covid-19 pandemic has taught us, it is that people need access to natural open space, especially in built-up areas.

However, the plans go beyond creating a beautiful park. The proposed green space will work in tandem with the council’s other regeneration projects, such as prioritising pedestrian and cycle travel, supporting local business, and delivering new homes.

In a recent article in New Statesman magazine, parks were seen as an important component in the levelling up agenda. Parks and green spaces, previously considered “nice to have” but not essential, are now being promoted as an ingredient in any attempts to “build back better”.

The City Council’s Local Plan is now being finalised following the latest round of public consultation. In response to comments from the consultation these new regeneration plans look to achieve a happier, healthier, and greener city; key elements from the Imagine 2040 City Vision.

This also links with the council’s introduction of a clean air zone as part of it’s move to reduce the city’s carbon footprint.

It really is exciting to see the environment being taken so seriously in Portsmouth and for green matters to be so high on the agenda.

With COP26 underway, now seemed like an opportune time to review where we are as a company regarding our green commitment.

You may recall in an earlier blog post back in April, we nailed our green colours to the mast and became one of the first estate agents in the region to do so.

We are working with Carbon Footprint Ltd to analyse our carbon footprint, with the aim of offsetting and reducing the impact the business has on the environment.

We used their business calculator to calculate our business carbon footprint and so far we have invested in:

•         Tree planting in South East UK
•         Tree planting in the Great Rift Valley, Kenya.
•         Global Portfolio of verified Carbon Reduction Projects
•         Gold standard Community Based Verified Carbon reduction Projects
•         Americas Portfolio of Verified Carbon Reduction Projects

And the great news is, we purchased 5x more than our actual calculated CO2 emissions. This means that Chinneck Shaw Limited is a Carbon Neutral PLUS organisation. (the PLUS comes from offsetting more than your footprint).

 Our Green Pledge

We promise to plant a tree for every house we sell. Chinneck Shaw has registered with a scheme that allows businesses to plant a tree on behalf of their customers. The customer can choose from the projects available and they will receive an email with a certificate to confirm that we have planted a tree. Together we can make a difference to climate change.

As a business we want to work in the most sustainable way we can and do a little bit more – we are making a commitment to be Net Zero by 2050 by getting involved with the government’s UK Business Climate Hub and we hope other Pompey businesses will follow suit …

We often get asked to explain what difference having a property manager can make so we decided to ask our very own property manager Joe Rocks for his view.

Peace of mind comes out top of the list – landlords know their properties are being well looked after and tenants can sleep safe in their beds knowing the place they call home is compliant with ever changing legislation.

Having a property manager can definitely take the stress out of having a property portfolio.

“When it comes to repairs, we instruct contractors quickly, to avoid any ongoing property damage. This means  repairs are generally smaller and cheaper, rather than waiting for damage to occur and spending money on unnecessary repairs.

“We can pay for repairs from the rent account, meaning the landlords rarely have to fund any repairs themselves.

“And we account to the property owner when they want, so they get clear and detailed rent statements. This makes end of year accounting for tax purposes easier as they already have all the information detailed,” said Joe.

Other benefits mean the property manager can start to market properties when a tenant gives notice and find a successor sooner, leading to less void periods for landlords between lets.

Finding new tenants can be time consuming and a property manager can deal with all the legal paperwork needed to make a letting arrangement compliant as well as securing references and checks.

“In depth knowledge of the local market, impartial expert advice and a professional but very much personal service is what you can expect,” added Joe.