August Newsletter - Mortgage lenders predicting more approvals during Brexit run-up

In this month's edition, we start off with a look at an upsurge in tenant demand during this Summer.

Elsewhere, reports suggest that mortgage lenders are predicting increased levels of approvals as we approach Brexit, we offer our top tips to designing your ideal home office space and finally, if you're a landlord looking to steer clear of void periods, why not read our guide?

Landlords - how to avoid those dreaded void periods

 

All landlords at some point will experience the unfortunate situation of having void periods, hopefully not for any protracted periods. Read a few our tips which could help you to avoid these situations, or at least reduce them to a minimum.

Do your research
One of the easiest ways to avoid long void periods for your property is to ensure that you have the right tenant in your property in the first place. Having a tenant in your property who is suitable and can afford the requisite rent will, of course, reduce any headaches for you later down the line. Ensure that your agent has properly referenced tenants, and if at all possible, try to meet prospective tenants to establish a good relationship from the outset.

Short term vs. long term
As well as researching your tenants, investigating the area that you are letting your property within to ensure that you are asking for a fair price will also help you to side-step any void periods. A keenly priced property will attract more applicants, giving you a greater choice of tenants. It is important to keep in mind here that offering a more competitive rental price could lead to longer tenancies, therefore finding the balance is imperative for any landlord.

Property inspections
Regularly inspecting your property can be a good way to build up further rapport with the tenant if you are managing a property yourself, and allows you to ensure that it is in a good condition. This can benefit you in multiple ways; firstly, it helps to ensure that your property is of a nice standard for the current tenant, as well as meaning you don’t have to waste any time should your tenant move out and you want to bring your property to market immediately.

Find the right agent
With the raft of new legislation which has come into place in the lettings industry, having a well-informed and proactive estate agent has never been more important. Employing an agent on a fully-managed service will take many of the responsibilities out of your hands as a landlord and with the superior marketing available, as well as pools of applicants who are tried and tested, the most straightforward way to reduce your void periods could be to choose your agent wisely.

Mortgage lenders predicting more approvals during Brexit run-up

 

With mortgage approvals at record levels, the outlook for those looking to purchase a property is extremely positive and with even more approvals being predicted to be approved in the run-up to Brexit, now could be a perfect opportunity to gain that all-important mortgage.

According to data from UK Finance, the number of mortgage approvals in June rose to 42,653 which is an increase from May, and nearly at the same level as April’s two-year zenith of 42,792. With such consistently high levels of approvals being seen in the marketplace at the moment, even when compared to the same time last year, the sentiment in the market is clearly positive.

Commenting on the figures, Andrew Montlake, managing director of mortgage broker Coreco, said: “Passing the March 29 Brexit deadline was a symbolic moment for the UK property market.
“Sentiment among prospective buyers shifted very quickly from apprehension to a more positive mindset.

“The sharp strengthening in demand for house purchases during the second quarter reflects this shift in sentiment, and the broader Brexit pragmatism that took root. Looking forward, lenders are clearly more optimistic than some about the trajectory of demand in the third quarter.

“If demand for house purchases remains unchanged given the potentially turbulent months ahead, then that will be a considerable achievement. We are at a pivotal point in the Brexit endgame and a no-deal Brexit is now looking far more likely.

“As we enter uncharted waters, the impact of a no-deal Brexit on demand for property is anyone’s guess.”

Read our top tips to designing your home office space

 

With businesses offering a greater level of autonomy and flexibility to their workers than ever before, as well as millions who are registered as self-employed, many of us will have 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.

Plan for success
When redesigning any room, making a floorplan and laying out how the area to be renovated will be utilised is key, and this remains true for home offices. Consider how the space will be used; for example, will you be having customers or business partners visit your home office? If this is the case, you will have to consider extra seating, from a separate area to simply having chairs in the office which can be pulled up to your desk.

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. Recent studies have suggested that using greenery in our workspaces 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.

Tenant demand sees upsurge during Summer

 

Since the introduction of the Tenant Fees Act in June this year, tenant demand has increased to some seven times higher than at the same point last year. Perhaps somewhat unsurprisingly, many prospective tenants seem to have waited until the new legislation came into place on 1st June before committing to a property, leading to a huge upsurge in demand.

Between May and June, tenant demand is usually fairly static at around 1% over the past few years; however, this year’s increase stands at 7%. With such a rise in the number of potential renters in the marketplace, the number of property viewings also increased in July, as did the number of property transactions in turn.

Rightmove’s commercial director and housing market analyst Miles Shipside has said: “A spike in tenants looking for a new place to live indicates some unsurprisingly held out until fees to start a new tenancy were removed by the government at the start of June. The ongoing shortage of quality stock could end up being exacerbated further by landlords whose tenants are now giving their notice so they can move on without paying fees, and some of those landlords then choosing to sell up rather than let it out again.”

It would appear that the introduction of the Tenant Fees Act has led to a summer peak for the lettings market, with landlords benefitting from a saturated marketplace and rental properties being let more quickly. In the short-term, this is of course excellent for landlords looking to let their properties currently, and in the long term this may suggest that the introduction of the Tenant Fee Ban will lead to more tenants in the marketplace due to it being much cheaper to move into a rental property than previously.