Month: December 2020

In this three-minute read, we look at the key themes that emerged in the UK property market in 2020.

2020 is the year things went nuts in the property sector, with activity in South Devon and the rest of the country screeching to an abrupt halt for several weeks, before blasting back into action as buyers emerged from lockdown with a new set of priorities.

 Here are four talking points from the year.

1. Race for space

Lockdown 1 served as a turning point for many people who, after spending months cooped up with their nearest and dearest, decided that it was time to get out of town. Demand for homes in places like Central London dropped and interest in country and coastal properties spiked.

Many of those heading for the hills and beaches were families looking to upscale to a home with a bigger garden, more bedrooms, and easy access to the great outdoors.

The super-rich got in on the act too, with rural estates valued at £15m plus getting snapped up.

2. Working from home/end of the commute

2020 is the year working from home (or WFH if you like acronyms) went mainstream. Covid-19 meant that bosses who suspected staff would bunk off if they weren’t in the office had to embrace WFH. What did they discover?

Many were surprised to find that productivity didn’t nose-dive; in fact, some workers got more done. Meanwhile, employees gleefully ditched the commute and spent more time doing the things they love at home.

As a result, enquiries from people looking for properties with dedicated office space or bedrooms that could serve as a home office increased.

3. Outdoor space

Even buyers who didn’t want to hotfoot it to the countryside, wanted outdoor space, be it a courtyard, a roof terrace or access to a communal garden.

In May, Rightmove reported searches for homes with gardens increased by 42% – a trend that has stayed strong.

4. Resilience

When the market shut down in March, many predicted the consequences would be dire. It certainly was challenging for the industry, but the market has proved to be incredibly resilient.

At the start of December, property prices in the UK were growing at their fastest rate since 2016. The average cost of a UK home rose by 6.5% this year (figures: Nationwide).

What’s in store for 2021?

As the Covid-19 vaccine rollout gathers pace, things might return to ‘normal’ in some ways, but it’s unlikely that they will go back to what they once were.

That doesn’t necessarily mean the end of office-working, but a less rigid approach to the way we work seems here to stay.

As a result, many property experts predict demand in prime outer London and regional markets will continue in 2021.

Here at Chamberlains we’re proud to have made it through 2020. We’re a little bit older, wiser, and looking forward to serving the people of South Devon in 2021.

In this three-minute read, we outline the costs and expenses landlords encounter when letting a property.

To succeed as a landlord, you need to have a realistic idea about the costs you’ll encounter when letting out a property.

Many people think that being a landlord is child’s play; they assume that once the tenant has the keys, the only thing left to do is collect the rent each month.

But the truth is, letting a property comes with an array of grown-up financial and legal responsibilities. If you’re not on top of your obligations, you could lose money or wind up in court (or both).

Here’s a list of all the costs that are part and parcel of being a landlord in South Devon.

Mortgage repayments

Mortgage repayments are the most significant monthly outgoing for most landlords. If you’re looking for certainty about the size of your monthly repayments, opt for a fixed-term rate.

Insurance costs

Landlord insurance is a condition of most buy-to-let mortgages. You can opt for a general policy (this should cover property liability, buildings insurance, contents, and loss of rent) or one that is more far-reaching (but will have higher premiums).

Maintenance and repairs

All properties require general maintenance from time to time. Landlords must ensure the property is safe (that means keeping up to date with things like gas and electricity safety checks) and in good condition. Set aside funds to cover this and any repairs that may crop up (property experts suggest between 5% and 10% of annual rent).

Service charges and other fees

If your property is in an apartment block, you may need to pay a service charge or ground rent. Leasehold property owners may also have to contribute to the cost of work carried out in communal areas.

Covering vacant periods

Even the most optimistic and diligent landlord should be prepared for a property to be empty for a short period between tenancies. It’s also possible that a tenant could fall behind on the rent. Set aside at least six weeks’ rent to cover yourself.

Tax

The rules around what you can and can’t claim as a landlord have tightened in recent years. To ensure you pay what you should, and claim that to which you’re entitled, do your research and keep all relevant receipts and paperwork.

Finding a tenant and credit checks

Some DIY landlords do these things themselves, but most good landlords leave it to the pros and use an experienced letting agent. The DIY route will save you a few quid upfront – but it could cost you much more in the long run (think of the legal bills if it all goes wrong). A good letting agent will have years of experience at sourcing good tenants, checking references, and spotting trouble in advance.

Property management fees

A letting agent will handle the big and little stuff for you: the paperwork, the people management, the legal checks, the inspections, and disputes. As a landlord, you could do this for yourself. It will save you some money but cost you in terms of time and energy.

Here at Chamberlains, we can take the stress out of managing a rental property, so you can sleep easy at night. Get in touch if you have any questions, we’re here to answer your queries.