Finn's Newsletter: Summer 2020, Issue No.10

Continued Growth In The Lettings Market

 

Since activity resumed in the property market rental demand has continued to rise. According to Rightmove, upon the reopening of the property market rental searches rose by 22% higher than May 2019. With people being able to streamline their searches with virtual viewings, and finally be able to physically view property they are interested in, this has enabled more effective property searches. The private rented sector can work at a much faster pace than sales with less paperwork and planning; further accelerating the activity.

The prop tech firm Goodlord found that the first two weeks of June saw new and completed lettings applications rise above 2019 levels, and they are now maintaining a steady pace similar to that of 2019. Lockdown has caused many changes in people’s lives including possible job changes and lifestyle priorities, leading the intense demand for rental property. Whilst the supply of rental property has also increased, Rightmove’s Miles Shipside believes that a shortage of available rental property to meet demand could push up rent prices and allow landlords to be more selective when choosing tenants – and a rise in prices has already been identified.

The latest figures from the Office of National Statistics has found that rent prices have already crept up, with the average rent price in the private rented sector in England at a new record high of £700 per month! As expected, rental properties with more bedrooms can secure higher rents, with properties only offering single rooms having the lowest monthly rent. The highest rents were found in London compared to any other region, as anticipated.

As an investor, it is unlikely for your property to experience a void period with such high rental demand – reducing the risk to your investment. Tenant demand is soaring across all regions of England (a regional outline is listed below):

 

Region	Lettings Demand Increase Since 2019 (%)
South West	34%
East Midlands	33%
West Midlands	31%
Yorkshire and Humber	28%
East of England	25%
London	23%
North West	21%

Our Top Tips For Designing A Home Office

 

People have been working from home for a while now. With businesses offering a greater level of autonomy and flexibility to their workers for the long run, many of us will have created office spaces in our homes. These spaces are vital to our productivity, and we have therefore put some of our favourite design ideas together in order to make your home office a hotbed of efficiency.

Nail the basics
When designing a home office, it can be easy to get caught up in the design aesthetic first and foremost, but the basics of a suitable desk and comfortable chair are not to be overlooked. These two pieces of equipment could make your working-from-home bleak or blissful, so take the time to choose wisely. When choosing your seat, ensure that the height and lumbar can be fully adjusted; your thighs should be at a right angle to the floor and your feet totally flat to provide the most ergonomic seating position.

Don’t neglect storage
The old adage of ‘tidy space, tidy mind’ is prevalent for a reason – we tend to work best when we’re in comfortable, organised spaces. It’s easy to forget that a home office will need to have masses of storage in order to store your working documents, as well as any accoutrements you need on a day-to-day basis. When planning your home office, incorporate space for storage which includes shelving, cupboards and filing cabinets.

Create an oasis
Your home office should be a space that you want to visit; therefore, creating a pleasant and attractive room should be high on your priorities to encourage you to use it. Studies have suggested that using greenery in our work spaces can make us happier and improve cognitive functions, so adding plants or herbs in your office space are an easy method to incorporate some natural elements. In line with the greenery, keep the general feel of your home office light and airy by keeping walls and décor neutral, perhaps with one simple accent wall in a colour such as navy blue, which is supposed to help with concentration.

Creating space
Not everybody will have an extra room to dedicate to a home office, but don’t let that stop you. If you have an alcove in any rooms in your house, you can turn it into a mini home office simply with a fold down desk. You could also double up the use of your dressing table or kitchen table. One of the benefits of not having a dedicated fixed office space is that you can move your home office around if you feel like you need a motivation refresh.

Landlord Update - Electrical Legislation

 

As a landlord, it is important to keep up with the latest legislation in order to keep your tenants and yourself secure. The latest change to keep abreast of is the government’s new electrical safety regulations – specifically for electrical installations in your properties. Fall foul of these rules, and you could be facing financial penalties of up to £30,000.

In recent years we have seen somewhat of a reform to the rental sector with seismic changes including the Tenant Fees Act, Fitness For Human Habitation Act and a potential review of Section 21 evictions. The new Electrical Safety Standards regulations will apply to all new tenancies from July 1 2020 and for existing tenancies from April 1 2021.

One of the key features of the legislation is electrical inspections, with landlords having to ensure that all electrical installations in their property are inspected and tested by an appropriately qualified electrician at least every five years. Documentation around these inspections then need to be shared with new, existing and prospective tenants as a legal requirement. Should the local authority request the paperwork, a landlord is also then required to supply this within 7 days of receiving the request.

Here is an overview of the changes;

• A landlord is required to obtain an inspection and test report from a qualified person, supply that report to each tenant within 28 days, and to the local housing authority within seven days of a request. A copy must be retained until the next inspection is due.

• For new tenancies, the landlord must supply a copy of the last report to any new tenant before occupation, or any prospective tenant within 28 days of a request.

• If the report requires further investigative or remedial work, this must be carried out within 28 days or sooner if the report suggests. Written confirmation of the work being carried out by a qualified person must then be given to the tenant and the local authority.

• If a landlord is in breach of the regulations, the local authority can serve remedial notices, if necessary, carry out the required works themselves recovering their costs from the landlord and can impose financial penalties of up to £30,000.

If you would like to read the full guide for landlords published by the government, you can do so here or if you would like to talk to us about your rental properties, please do not hesitate to contact us and we will be able to advise you.

What Support Is Available For NHS Workers

 

Although the nation is no longer clapping every Thursday evening for our NHS workers, that doesn’t mean the gratitude has ended. There are many ways that support for NHS staff has continued as a thank you for helping our society in these difficult times. Companies across England have advertised NHS staff schemes and discounts to make life that bit easier for our key workers, and to show that their services are very much appreciated. The offers range from food discounts to free parking and have varying access requirements. We have shared some of these NHS offers below:

Supermarket discounts
Most supermarkets are continuing to use the first opening hours of the day to dedicate to NHS and other key workers for shopping so that they can purchase everything they need. As well as priority hours, many stores are offering discounted shopping including:

Morrisons – 10% off and extra points in store. They also offer free food boxes including home delivery (value of the box is £5)

Iceland – 20% store discount

Food Warehouse – 20% discount in store

Transport offers
There are many parking and transport companies offering discounts and free services to NHS workers to support them in travelling to and from work. These include:

NCP – free parking

NHS Trust Parking – free parking

Your Parking Space – free parking

Uber – 25% off all rides

Motorpoint - £300 off all vehicles and free home delivery

Food offers
Many food outlets are giving NHS staff a discount on food purchases. Details of how to claim the discount vary from using a special key worker code, to providing an NHS email address or identification card. The food outlets supporting NHS staff include physical stores as well as take away and delivery services. We have listed a selection of participating companies below:

LEON – 50% off

YO Sushi – 50% off

Hotel Chocolat – 50% off

LAS Iguanas – 50% food

Deliveroo – Deliveroo has delivered 100,000 free meals throughout June and is offering 70,000 £10 discount vouchers to NHS staff who have previously used the service.

We would personally like to thank all of the key workers that have worked tirelessly to help others during such a difficult time. The gratitude is never ending. If you are an NHS worker, please see the company websites for full details of support available to you.