Market Update With Tristram's

Congratulations! One of our tenants is a winner!

Thanks to our Rewards Platform from Vaboo, one of our tenants located in NG8 is the lucky winner of a £50 Reward Card to spend with any retailer of their choice.

Click here to read Congratulations! One of our tenants is a winner! .

Ensure you are compliant on new legislations with Tristrams

We have recently project managed the task of ensuring over 600 of our fully managed properties are compliant with the latest changes to the Carbon Monoxide alarms law’s introduced.

Click here to read Ensure you are compliant on new legislations with Tristrams.

UK rental market update

According to Zoopla, the average rent has risen by £115 per month since September last year, to £1,051 a month in September 2022.

The rise is substantially outpacing earnings growth across the country and boils down to a catastrophic imbalance between supply and demand.

The lack of supply has led to dwindling options on the market for renters, as rental stock levels sit at around half the number seen on the market in the past five years.

Many renters will find themselves in good financial stead, by choosing to stay put in their current rental homes to avoid future rent increases and growing competition elsewhere on the market.

Renters return to the city

Growing employment rates in the wake of the pandemic, and a growth in high-quality, purpose-built build-to-rent homes appearing around the UK, is drawing more renters into urban areas.

The appeal towards energy efficient new-build homes is proving to be a big pull towards renting in the city, as most new developments tend to be around city centres, and renters will seek out a low EPC rating to stay on top of energy bills.

Rents for tenants remaining in current homes rising at a much slower pace

The average renter will move every four years, according to Zoopla, so their data reflects rent prices on new lets for around 25% of the market.

However, the Office for National Statistics’ (ONS) rental index outlines rental increases across the board, for both movers and non-movers.

The data shows current rents across all rented homes have seen a 3.7% increase, compared to the average recorded in July 2021.

Those moving to a new rental property will find the cost of renting 12.3% higher, as rents for new lets are correlating to the decline of supply amid high demand across the country.

How much higher can rents go?

While rental affordability varies according to location and income, in the latest English Housing Survey from 2020 to 2021, three quarters of private renters agreed they found rental payments very or fairly easy to meet. The remaining 25% found them fairly or very difficult to pay.

The question of how much higher can rents go, will depend on how much headroom renters have, to pay more rent.

While competition and demand continue to skyrocket, landlords have no reason to believe there isn’t opportunities for above-average growth in the less expensive areas of the UK.

What to expect in the rest of 2022, going into 2023

There are no signs of significantly improved rental supply in the near term, as private landlords continue to sell off homes, and renters remain for longer terms.

The imbalance between supply and demand will also remain unwavering, and rents will continue to grow at above-average levels well into 2023.

There are clear signs of headroom for some renters to pay more. Especially in areas of the country where rent is already high.

There may be a cool-down period emerging further into 2023, but this will come at a slow pace.

As well as avoiding rising rental prices, tenants will look to find smaller rental properties to keep their energy bills low. However, the horizons for options on the market should broaden, as the economy begins to recover.

The climate of the rental market can only benefit from more homes appearing on the market, which will help to close the gap between supply and demand.

Do you have a property to let? Find out how we can help you manage your portfolio, by visiting our website today.

What to consider when moving house before Christmas

Moving home can often be a stressful process for sellers, but there are plenty of ways to make things run as smooth as possible. Timing sits somewhere at the top of the list, as the property market changes on a monthly basis, and demand fluctuate with it.

Get the property ready for marketing

Once you have decided to market your existing property, you will need to make sure it is photo-ready and looking its best for potential buyers.

Those looking to move in time for Christmas will want to be able to envision cosying up around the fireplace or sitting at the dinner table with family. So, make sure you can present your home to buyers as a fresh canvas by decluttering, deep cleaning and making the place feel brand new.

Choose the right selling agent for you

If you want to achieve the best price for your property, you need to find the best agent to sell it. Make sure you take extra care when making your final decision on the right agent and take the time to get to know them. A good estate agent will do the difficult work for you and take care of any nitty gritty complications which could slow you down. They will also accurately value your home and advertise it effectively and efficiently.

Arrange a valuation on your property early

Get this done as soon as the possibility of a future move crosses your mind, as it will allow you time to make any upgrades or adjustments to your property. It will also save you time later when you’re ready to sell, and will give you a good idea early about the scope of your budget for your new home.

Set the right asking price

Setting the wrong price - whether too high or too low - means you could miss out on suitable buyers willing to make fair and sensible offers. The best way to speed up your selling process is to set the right asking price for what your home offers, so you can reach as many potential buyers as possible and have a number of fitting applicants to choose from.

Book surveyors as soon as possible

Once you’ve found the right property for you, it’s advisable to ensure that you get a decent survey before you fully commit to the new home. This way you can avoid any unpleasant (and costly) surprises after you move in. A surveyor will be able to spot any issues with the property - so you won’t have to later.

Don’t forget the final details

In the excitement of a move, it’s easy to forget the small details. Ensure you tie up any loose ends such as informing utility companies that you’re moving, and having your mail forwarded to your new address – just in time for Christmas cards!

Have you considered selling with us? Visit our website to find out what we offer.

First-time buyers: What deposit will you need?

Whether you are thinking about saving for your first house or you have been saving for a while now, the deposit will most likely be the first hurdle on your journey. Here are some of the basics you’ll need to know to help you get a leg up.

What is a mortgage?

A mortgage is a loan taken out to buy a property or land. Most will run for 25 years, but the term can be shorter or longer depending on the property.

The loan is ‘secured’ against the value of your home until it is fully paid off. If you fail to keep up with your repayments, the lender can repossess the home and sell it to get the money back.

How much of a deposit do I need to buy a home?

Before you start looking at properties, it’s best to get your deposit saved first and foremost.

Generally, you will need to save at least 10% of the cost of the home you would like to buy. This figure depends on whether you’re buying alone, in which case you can split the deposit in half. It also depends on current market activity at the time of the purchase. For example, most sellers will ask for a higher minimum deposit during economic headwinds or overwhelming demand, as this ensures that they will achieve the right asking price.

Saving above 10% will give you more leverage for the home you want, expand your choices on the market, and secure you a lower monthly interest rate.

Help for first-time buyers

If you are in a situation where you can only save a small deposit, or you do not have the option to split the cost in half with a secondary resident, there are a range of government schemes available to give you a helping hand on the housing ladder. Options include:

Lifetime Individual Savings Account (LISA) – You can use a LISA to buy your first home or save for later life. You must be aged between 18 and 39 to open a LISA. You can put away up to £4,000 each year and the government will add a 25% bonus to your savings. However, there is a penalty for taking money out of a LISA if you are not putting it towards a deposit, or withdrawing after age 60.
Equity Loan – This scheme is only available to first-time buyers in England who want to buy a ‘new-build’ house within the relevant regional price cap. You can borrow up to 20% (40% in London) of the purchase as an interest-free equity loan. You do not pay interest on the equity loan for the first five years, but you will start to pay interest in year six. The equity loan payments are interest only, so you do not reduce the amount you owe.
Shared ownership – Shared ownership offers first-time buyers the option to buy a share of the home from the landlord, who is usually the council or housing association, and pay a reduced rent on the remaining share. Later, you can choose to buy a bigger share in the property, and ‘staircase’ up to 100% of its value.

Some of these schemes are ending or unavailable in certain locations, so it is important to thoroughly research each one, save as much as possible and seek out bespoke advice about your savings options.

Other costs for buying a home

When saving for a deposit, it’s important to remember that there are other fees and costs you will need to save for, before you can take the plunge.

These include:

Survey costs
Initial furnishing and decorating costs
Buildings insurance
Solicitor or conveyancer fees
Removal and moving costs
Stamp Duty

If you are struggling to save for a deposit

If you are struggling to save up a large enough deposit to move out within a certain timeframe, there are options available to help you.

Family assistance mortgages allow whoever is supporting you to put in a percentage of the money you are looking to borrow into a specific savings account, or they can secure the mortgage against a percentage of their own property.

Looking for advice on your property circumstances? Get in touch today.

Tenants stay put due to rising rents: Is it time to go fully managed?

According to data from Propertymark, a shortage of rental stock is fuelling the surge in renters staying put, with 73% of letting agents saying they have seen a growth in the number of tenants renewing contracts over the past year.

Increase in long-term tenants

The rental market has seen a vast increase in tenancy renewals due to a shortage of stock, which has had a knock-on effect on rising rents. Remaining in the property is currently far more desirable than taking the risk with another property, or location, in a time of economic discomfort.

Propertymark’s July Private Rented Sector Report detailed the continuous surge in rental demand, with an average of 127 new applicants registered per member branch last month, noting that “this number has been on a slow upward trend since February.”

The imbalance between supply and demand has led to 82% of agents acknowledging that month-on-month rent prices increased in July. Pressure on rents has been steadfast since last year, with the cost-of-living crisis and rising inflation playing equal parts in the increases.

The cost-of-living crisis has created a vast number of long-term tenants, as saving for a deposit takes a back seat for the time being. The rental growth caused by current rampant demand is also a huge driving factor behind many people choosing to delay taking out a mortgage until supply picks back up, making rental accommodation a highly popular choice. Becoming a landlord in today’s climate allows the investor to generate capital growth, as their yield grows while the property value increases.

Is now the time to go fully managed?

With the disparity between supply and demand underpinning a rise in inflation, UK landlords are reaping the benefits of getting their foot in the door during a time of peak buoyancy. As the average property price increases, future sale prices also increase, meaning a buy-to-rent asset increases in value over time.

However, such an asset can be difficult and time-consuming to manage without help, particularly for new landlords who are still learning the ropes. The prospect of long-term tenants presents its own challenges too, as long-term use of a property demands more regular check-ups and maintenance.

To help landlords secure and maintain long-term tenants, letting agents can:

Find the right tenant for you and market your property.
Arrange the tenancy: A rental agent can handle everything from getting references to running credit checks, securing deposits, and drawing up tenancy agreements.
Collect rent: A rental agent can collect rent from your tenants and follow up on any late payments.
Answer tenant queries, deal with issues and concerns, and handle maintenance or repair work that needs scheduling.

Fully managed services can ensure the quality of your tenants

One of the most important reasons for becoming fully managed is to ensure that you have high-quality, dependable tenants. A managed service can help you to create long-term, positive relationships with tenants who are loyal, pay their rent on time and keep your property in good condition – giving you peace of mind.

If your tenants are staying put for longer, our fully managed services will alleviate the stress of taking care of your property. Find out more by getting in touch today.