Landlords Newsletter September 2020

Landlords Newsletter August 2020

Business Life during and after lockdown

Like most businesses, the announcement of lockdown on 23rd March prompted major changes to the way we conduct our letting and management operations. Revised practices were swiftly implemented, many of which are working so well that we continue to use them.

Our staff, whether working or temporarily furloughed, are to be commended for their superb co-operation and flexibility. Zoom meetings are the new norm, although of course we miss the face to face contact.

We must thank you, our clients, for your patience, trust and loyalty during recent months.

The lifting of lockdown created a flood of tenants wishing to move, and a flurry of demand for property. Consequently, all offices now have a much reduced stock of properties available. There is however of course a degree of uncertainty as to what lies ahead. The end of the furlough scheme threatens job security, and there’s a risk of a second wave. As a firm, we believe we are in a good place, ready to face the next challenge.

As I am sure that you are aware, the Chancellor has lifted the Stamp Duty tax for purchases up to £500,000 until the 31st March 2021. As a result, the sales market is buoyant, and we are seeing some landlords taking the opportunity to try to sell their properties through our sales offices. We anticipate the sales market easing down in the spring, which is likely to see vendors who need to move electing to let their property if they have not sold. We are also seeing some clients who have sold their property choosing to rent rather than purchase at this time.

There’s a familiar pattern - the rental market flourishes during a quiet sales market, then when the sales market picks up, some of our rental properties will be sold. Overall, we remain confident that the lettings market will continue to hold strong, buoyant with current rents holding for the moment.

I hope you enjoy this informative newsletter, with updates on legislation and market trends; we will circulate them regularly to keep you abreast of developments. Meanwhile, thank you again for your loyalty.

Rachael James – Head of Lettings

MARKET UPDATE

Over the last 6 months we have mastered the art of video viewings, distance hand-overs, and ways to facilitate property moves within government recommendations.

Meeting a tenant on a viewing is of course an important first step in referencing, a chance to ensure we are matching the right people to the right property. The majority of these initial discussions are now via video call, and remains the first step to referencing when the usual credit, financial, previous landlord if applicable, employment and if appropriate immigration checks are carried out.

Demand is high, Yeovil’s hospital and industry have always – and continue to - draw people to the region. We are seeing a number

of people looking to relocate to the area, predominantly from London, the Home Counties and the Midlands. In more settled times that would push rent levels higher, however these are unusual times. It is our view that with furlough, job insecurity and the threat of a 2nd spike, this is a time to manage expectations and be realistic. Most tenants rent at the top of their budget, and an occupied property generating an income is better than an empty property.

Trudi Gumbrell and Karen Mitchell

‘‘We have been carrying out virtual inspections to ensure the safety of our Tenants and Property Management Team.’’

PROPERTY MANAGEMENT UPDATE

During lockdown, we were only able to arrange emergency and essential maintenance. Whilst we had to consider everyone’s safety, we also had a duty of care to ensure that works were carried out to ensure tenants had working essentials like hot water and cooking facilities.

Anything that could have developed into a larger issue or caused damage to the property was dealt with quickly. Non-urgent repairs were put on the back burner to be dealt with as soon as restrictions were lifted.

Our contractors were fantastic and were keen to comply with our COVID-19 procedures, put in place to keep everyone safe. Since the lifting of lockdown, we have received a very high volume of maintenance issues, which we have been steadily working through. One of our biggest challenges has been notifying utility companies of changes

in occupancy, they are operating on reduced staff and 30-minute wait times are not unusual!

We have been carrying out virtual inspections to ensure the safety of our Tenants and Property Management Team.

Our Tenants have been very helpful in supporting us in these challenging times and many have sent through photos of their homes. We have continued to identify issues that need immediate attention, providing Landlords with a full report and a consistent and thorough service.

Lorna Wyatt - Property Manager

symondsandsampson.co.uk

Note from the Head of Lettings: New notice periods now in force for tenants On Friday 28th August, the Government announced sudden and drastic changes to the Coronavirus Act 2020. Effective from Saturday 29th August (i.e. the very next day) the Notice a landlord is required to give their tenant to regain possession of a property was extended from three months to six months. It is understood at this time this rule is only temporary until 31st March 2021.

Please note that if a Section 8 or Section 21 Notice has already been issued, these notices giving three months’ are still valid and a court hearing can be applied for after the 20th September providing they are still within the validity dates.

At the present time, there is a 62,000-case backlog in the County Courts throughout the country. To enable social distancing, it is anticipated that the usual 10 cases per day could be cut down to just 2 or 3 hearings. Due to this huge backlog, a Government Working Party has been set up to respond to calls for action in areas of greatest need.

This party will focus on priority cases which fall in to categories exempt from the new notice period, including: •

Where arrears exceed six months rental payments, the notice period reduces to four weeks.

•

In cases of domestic abuse or riot, two weeks’ notice will be sufficient.

•

Where landlords are seeking possession as a result of antisocial behaviour, four weeks’ notice will be sufficient.

We believe that few of our clients will be adversely affected by this decision but that it may pose issues for landlords wishing to sell or move back to their property between now and the end of March 2021. If this is the case, please call your lettings sales manager or myself to discuss the legal implications of your personal situation, and the best steps to take.

Rachael James - Partner, Head of Lettings

symondsandsampson.co.uk

Electrical Safety Regulations

The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 came into effect on 1st June 2020, and require all landlords to ensure that every fixed electrical installation is inspected and tested at least every 5 years by a qualified person.

A landlord is required to obtain a report of the inspection and test, supply it to each tenant within 28 days, and retain a copy until the next inspection is due.

A further update comes into effect from the 1st April 2021, when ALL tenanted properties need to have the electrics checked within the last 5 years. The legislation applies not only to Assured Shorthold Tenancies but to Assured, Agricultural, and Rent Act Tenancies. Some Non-Housing Act Tenancies are exempt, such as where the property is part of a landlord’s main residence.

Rachael James, Head of Lettings highlights the following observations: • The electrical safety standards have changed and whilst properties might have passed with flying colours in the past, we are finding more remedial works are required under the new Version 18 of the Wiring Regulations (BS7671:2018 – if anyone cares to look it up!)

• Landlords should expect a quote from the electrician to pass the certificate. The failure codes you need to look out for is a C1 or C2: potential threat to life.

• The certificate costs on average between £150 and £300 depending on the size of the property. We have a list of qualified electricians to provide a quote in your area if required.

Symonds & Sampson have considered it our duty of care to ensure the safety of our tenants and recommended safety checks for many years. We welcome legal clarity of the requirements.

To subscribe to our Landlords Newsletter, please email: pm@symondsandsampson.co.uk For a rent assessment and landlord guidance, please call your local office:

Rachael James Head of Lettings 01258 452670

Karen Mitchell Lettings Manager 01935 382903

Lucy Nolan Lettings Partner 01305 251154

Sam Brown Lettings Manager 01308 459565

symondsandsampson.co.uk

Trudi Gumbrell Lettings Manager 01935 814488