Landlords Newsletter Autumn 2022
Symonds &Sampson
Current Lettings Market Overview by The Head Of Lettings Rachael James, Head of Lettings at Symonds & Sampson, reports that in recent months, the number of tenants looking for property has continued to outstrip supply, and therefore that rents in the private rental sector have continued to increase. Where tenants give their notice, perhaps to purchase their own home, the asking rent on re-letting has increased on average by at least 10%, often more. Generally, we would receive upwards of 30 enquiries within the first 48 hours of launching properties up to £1500 pcm. The Renters Reform Bill, combined with the general unease in political and economic climates combine to make an un-nerving time for most people. Understandably perhaps, a number of Landlords are deciding to sell, so their tenants are now seeking a new home, in competition with other house sellers unable to find a property to purchase. This competition means therefore that a Landlord can very often have the ‘pick’ of the tenant best suited to their property, and at a premium rent – it is truly a Landlord’s market. The Renters Reform Bill is set to become law, but with the details yet to be finalised, the picture remains unclear for Landlords and Tenants alike. The Bill proposes more flexibility for tenants, but in my opinion the only steps that can be taken to meet the intense demand for rented accommodation is to provide more social housing. The Government has relied on the private rental sector for too long. Rachael will be hosting seminars throughout the region over the coming months. She will provide an update on the latest details of the proposed Bill, the current rental market, opportunities for current and prospective Landlords, and answer questions at the end of the evening. Please contact Emma Newman enewman@symondsandsampson.co.uk for further details, and to register for future Landlords Newsletters.
Long Term Residential Tenancies versus Holiday Lets? HMRC have sprung a few nasty surprises on buy to let investors over recent years. 3% Stamp Duty and a curb in mortgage interest relief have both impeded the chance to make a decent return. Holiday lets are a different matter; letting a furnished property as a holiday let actually offers some significant tax advantages. Mortgage interest payments, Council Tax and utility bills can be offset against income for tax purposes. There has been high demand in holiday let properties due to consumers looking at staying in the UK for their holiday. However, holiday letting is hard work. | Landlords are still responsible for these bills and should factor in the recent increase in energy prices, particularly during winter months. | Additional costs of furnishing and regularly updating the property with high quality furniture to be competitive.
Every year, many Landlords of holiday accommodation invite us to discuss the options – particularly during the Autumn at the end of a hectic Summer season.
| During the current climate it has never been more important to ensure holiday let properties are cleaned to a high standard and this adds additional pressures between changeovers for Landlords.
According to Rachael James, some of these Landlords have become disillusioned and will consider longer term lettings.
| Landlords need to consider how the property will be maintained during quieter months when the property may be empty. | Holiday Letting is very fast paced so it is important that you as the Landlord can be easily contacted and be ready to quickly and efficiently resolve any issues that may occur during a guest’s stay. | There is more wear and tear on the property due a constant changeover of guests.
When you weigh up the balance of comparatively high weekly rents from holiday letting against the figures you might expect from longer term letting, holiday lets may look attractive. However it is hard work with changeovers often occurring more than once a week. The current shortage of longer-term rental properties is driving rents up, and over the course of a year there is perhaps less difference in net returns than you might think.
Buy to Let - Could this be a viable alternative? Whilst there can be no guarantee of future returns, residential property has historically proven to be a solid investment with average prices doubling in real terms since 1983. As recent history has shown yet again, property should be viewed as a medium to long term potential investment. It is important to keep this - and achievable yields - in mind when deciding what and where to buy. Consider how hands-on you want to be – Buying a property is only the first step. Will you rent it out yourself or use an agent to do so? We offer a very varied service for experienced or first time Landlords. There are some issues that should be contemplated when making an investment decision. Here are some tips on what to consider when investing in a buy to let property:
| Do your sums – Seek advice from our Lettings Department on the monthly rental against the cost of your monthly mortgage repayments. Don’t forget to take into account voids where the property can become empty. | Research the market – Choose an area where there are good facilities such as local shops, pubs, schools and public transport. | Tenants – Do not imagine yourself living in the property but put yourself in the shoes of your target tenant. Who are they and what do they want? Young professionals –modern and stylish. Families – They have their own belongings, so a blank canvas is essential. | Know the Legislation – It is essential that a Landlord know their obligations under the law. For example, gas safety certificates and safe electrics.
Within Symonds & Sampson, we are fortunate to have the extensive agency and professional expertise to help you choose the best property to suit your budget and personal circumstances.
symondsandsampson.co.uk
Meet our Lettings and Property Management Team To subscribe to our Landlords Newsletter, please email: pm@symondsandsampson.co.uk
Rachael James
Partner & Head of Lettings Blandford and Sturminster Newton
01258 474265
Levi Musselwhite
Assistant Manager Blandford and Sturminster Newton
01258 474265
Jessica Denslow
Lettings Assistant Axminster, Bridport and Beaminster
01308 459565
Lucy Nolan
Symonds &Sampson
Lettings Partner Dorchester and Poundbury
Lettings Manager Axminster, Bridport and Beaminster
Sam Brown
Karen Mitchell
Trudi Gumbrell
01305 571277
01308 459565
01935 382903
01935 814488
Andrea Todd
Assistant Manager Axminster, Bridport and Beaminster
01308 459565
Diane Denham
Lettings Negotiator Axminster, Bridport and Beaminster
01308 459565
Clare Burt
Emma Newman
01305 236237
01305 236237
Senior Property Manager Assistant to Blandford, Dorchester, Poundbury, Rachael James Sherborne and Sturminster Newton Poundbury Burraton House
Gemma Cassidy
Lettings Manager Yeovil
Ismay Byrne
Lettings Manager Sherborne
Becky Stimpson
Lettings Assistant Sherborne and Yeovil
Lettings Negotiator Dorchester and Poundbury
01935 382903
01305 571277
Sarah Hurst
Maxine Davis Inspection Clerk
Inspection Clerk
01258 474265
01305 236237
01305 236237
Lettings Assistant Blandford and Sturminster Newton
Helen Harding
Natasha Rolls
Lettings Negotiator Blandford and Sturminster Newton
01258 474265
Lisa James
Alison O’Dowd
Property Management Administrator
Property Management Administrator
Property Management Administrator
01305 236237
01305 236237
01305 236237
symondsandsampson.co.uk