Whether you’re a homeowner, prospective buyer, landlord, or tenant, it pays to stay abreast of what’s leading the UK property news.

There’s rarely a dull moment, so let’s take a brief peek behind some of the latest headlines.

House Price Index – October 2023

On the penultimate day of the month, the online listings website Zoopla published its House Price Index for October. The principal takeaways from the latest update of statistics on the housing market are:

• there is a substantial reversal in the market in the space of just one year – a year ago, prices were rising at an annual rate of 9.6% but now they are falling at the rate of 1.1% a year;

• protective regulation of mortgage rates has helped to protect the housing market while domestic spending power remains poor;

• while house prices continue to fall by an estimated 2% in the year to come, that reduction plus an increase in average earnings should improve affordability;

• currently, house prices are falling in four of the UK’s principal housing markets – only in Scotland and Northern Ireland are average prices bucking the trend and showing a positive rate of annual increase; and

• the volume of transactions is forecast to reach more than 1 million in the coming year – and this milestone could be surpassed if mortgage rates trend closer to their earlier 4%.

Over three-quarters of Brits feel more conscious about home safety in Autumn

A recent survey conducted by Landlord News shows that more than three-quarters of British households become more conscious than ever of safety in the home once the nights begin to draw in.

Various concerns emerged. Chief among these were:

• a desire for better lighting outside the home – mentioned by more than 62% of those surveyed;

• the installation of a burglar alarm or security system – more than 40%;

• improved locks on windows and doors – 30% plus; and

• participation in a neighbourhood watch scheme – more than 23%.

Gazundering fears on the rise as buyers pressure sellers to accept less money

“Gazundering” is the process by which house buyers apply pressure on sellers to accept a lower price for their property – and it is on the rise, according to a story in the Daily Mail on the 20^th of October.

Evidence for a significant rise in the practice comes from the newspaper’s revelation that there has been a 97% increase in internet searches for the term gazundering since the beginning of this year.

When there are fewer buyers in the market, the initiative passes to them in being able to exert pressure on sellers to sell at a lower price. Typically, buyers will wait until a relatively advanced stage of the proposed transaction when they will offer a reduced price simply to conclude the sale.

Landlords and Renters to save on council tax bills

The National Residential Landlords Association (NRLA) in a press release on the 27^th of October claimed credit for a change in the rules on the way Council Tax is assessed.

Thanks to pressure from the NRLA, it claims, the government has agreed that separate, individual rooms in shared houses will no longer receive their own band for Council Tax purposes. Instead, the tax will apply to the premises as a whole and landlords can once again include the appropriate share of Council Tax in individual rents.

In this way, tenants are also likely to benefit, says the NRLA – to the tune of up to £1,000 a month.

Weakening UK housing market: Mortgage approvals fall to lowest in eight months

Evidence of the weakening property market in the UK was illustrated by a story in Euronews on the 30^th of October.

It came in the shape of figures showing a significant decline in the volume of mortgage applications currently approved. In September, just 43,328 mortgage loans were approved – well short of the 45,000 anticipated within the industry and the lowest number since January.

Further evidence of a weaker market was also shown by two further indicators: the fact that mortgage repayments in September surpassed the value of new lending; and a reduction in remortgages – to values last seen as long ago as January 1999.

Storms, rain and snow can cause transport chaos and building damage in the UK. Now that we’re heading towards the dead of winter, it is still not too late  to protect your investment property against the ravages of the elements.

Here are some tips and suggestions for catching up with those winterproofing measures:

What your tenants say

• there is one winterproofing measure that may be easily overlooked, but comes completely free of charge – just talk to your tenants about any issues they want to raise as the weather gets colder;
• your conversation might bring to light problems that can be nipped in the bud before they become a major issue, with the potential for causing damage to your property if it is unaddressed – this could include things such as condensation;
• educate your tenants on how to care for the property during the winter. Encourage them to report any maintenance issues promptly, such as leaks or heating problems. Providing them with a winter maintenance checklist can also help keep your investment property in good shape.

Insulation

• when it’s cold outside, of course, you want to keep it warm inside – and to make the most of the energy you and your tenants consume doing just that, you need to insulate the building well;
• insulation repays itself in two ways – it helps prevents pipes freezing and the inevitable escape of water when they burst, but your tenants will also thank you for the reduction in energy bills by keeping inside more of the heat generated;
• proper insulation is the cornerstone of winterproofing your property. Insulation helps to maintain a comfortable temperature, reduce energy costs, and prevent heat loss. Insulate the walls, roof, and floors to create a thermal barrier that keeps the cold out and the warmth in. This investment can save you money on heating bills and make your property more attractive to tenants.

Semi-heated spaces

• don’t overlook spaces that you keep semi-heated – in common areas of your let property, for example;
• an ambient temperature of between 45ºF and 50 ºF (7.2ºC and 10ºC) is recommended;

Heaters and boilers

• to keep the heat in, you first need to generate it – and, as the landlord, providing a working heating system for your tenants in winter is a basic obligation;
• check that electric, gas, and open fires are working (ensuring that the required carbon monoxide detectors are functioning too) and have any central heating boiler professionally serviced;
• that is also the time to check the plumbing system more generally, making sure that valves and fittings are not leaking and that electrical controls and thermostats are working properly;

Keeping the water out

• keep the warmth in, but the water out;
• hopefully, you remembered to check the condition of the roof, guttering and other rainwater goods before the onset of the worst of winter’s storms;
• it’s not too late – but you or your tradesman will want to do it when the weather is relatively clement – so, check for dislodged slates or tiles on the roof and unblock gutters and downpipes to clear them of leaves and other debris that has been blown in on winter winds;
• basements or cellars are particularly vulnerable to water intrusion. If your property has a basement, ensure it is properly waterproofed. Consider applying a waterproofing paint or membrane to the walls and floors. Install a sump pump to prevent water build up during heavy rain and provide adequate drainage away from the property;
• proper landscaping can help manage water runoff. Make sure the land around your property slopes away from the foundation to encourage water to flow away from the building. Consider adding French drains or trenches to divert water from your property;
• if your property has below-grade windows or window wells, install covers to keep rainwater, debris, and snow from accumulating in these areas. This prevents water from seeping into your property through these openings.

Alarms

• smoke alarms are all the more important during the festive season, when candles and other naked flames may increase the risk of fire – so, make sure that the batteries are fully charged, and the devices are functioning;
• the same goes for any security systems you might have installed – they help to protect your investment property but also add to the sense of safety enjoyed by your tenants.

Prepare for Emergencies

Create an emergency plan that includes contact information for maintenance professionals and contractors. This will ensure that if a problem arises during the winter, you can address it promptly, preventing further damage and tenant discomfort.

Winterproofing your investment property is unlikely to take a great deal of time or money, but the work done in securing the premises and making them safer and healthier for your tenants is almost certain to pay dividends.

Further reading: Getting your property winter-ready and  Winter-proof your garden.

Yes, it is. There are though occasionally some slight differences of context surrounding the use of the two terms.

What is buy to let insurance?

Buy to let insurance is a type of insurance policy specifically designed for property owners who rent out their properties to tenants. This insurance typically covers the physical structure of the property and provides protection against risks such as fire, theft, vandalism, and damage to the building. It may also include cover (if required) for any contents that belong to the landlord, such as furniture or appliances that are provided with the rental property. Buy to let insurance is primarily focused on protecting the property itself and the landlord’s (and the lender’s) financial interests.

Buy to let insurance is commonly used in situations where the landlord is applying for some form of loan or mortgage in order to help them purchase a property. That’s because, in most circumstances, a lender offering substantial sums by way of a mortgage will typically wish to see some form of security over the property concerned.

This is sometimes called a buy to let mortgage and at the outset the provider of funds is likely to insist that you also maintain insurance to protect the building and therefore the asset you have used to offer them security for their loan.

The logic is that if the property was severely damaged and you did not have insurance to pay for its restoration, it may end up being worth considerably less than the sum of money the lender has lent you.

So, insurance is essential if you are to avoid being in breach of your mortgage contract.

What is landlords’ insurance?

Landlords’ insurance is a broader term that encompasses various types of insurance policies designed for landlords. While it includes buy to let insurance, it can also include other types of cover, such as liability insurance. Landlords’ insurance often includes public liability cover, which protects the landlord in case a tenant or visitor is injured on the property and holds the landlord responsible. It can also cover – if required – loss of rental income in case the property becomes uninhabitable due to covered events.

In the context of the letting business itself, established landlords and specialist providers of policies will typically call this area landlords insurance or let property insurance.

This is purely a matter of convention though and as stated above, the terms may be used interchangeably, as they refer to the same type of policy providing the same type of cover.

Note though that landlords unoccupied property insurance is entirely different and something that should be taken seriously in terms of avoiding gaps arising in your property’s insurance.

Owner-occupier cover is, of course, different again.

Buy to let insurance is commonly used in situations where the landlord is applying for some form of loan or mortgage in order to help them purchase a property. That’s because, in most circumstances, a lender offering substantial sums by way of a mortgage will typically wish to see some form of security over the property concerned.

This is sometimes called a buy-to-let mortgage and at the outset the provider of funds is likely to insist that you also maintain insurance to protect the building and therefore the asset you have used to offer them security for their loan.

The logic is that if the property was severely damaged and you did not have insurance to pay for its restoration, it may end up being worth considerably less than the sum of money the lender has lent you.

So, insurance is essential if you are to avoid being in breach of your mortgage contract.

In the context of the letting business itself, established landlords and specialist providers of policies will typically call this area landlords insurance .

This is purely a matter of convention though and as stated above, the terms may be used interchangeably, as they refer to the same type of policy providing the same type of cover.

Note though that landlords unoccupied property insurance is entirely different and something that should be taken seriously in terms of avoiding gaps arising in your property’s insurance.

Owner-occupier cover is, of course, different again.

The household bills have rocketed for just about everyone in recent months. Quite rightly highlighted in the media – and recognised by the government – some of the most critical expenditure is likely to be on your domestic energy.

You’re probably anxious to tighten your belt as far as all household bills are concerned so here are some tips and suggestions for saving money on your energy costs.

Save money by switching your supplier (or energy tariff)

Of course, you’ll want to make sure that you are paying a competitive rate for the energy you consume – and, in the recent past, that has meant that many customers could save money simply by switching suppliers.

Currently, however, the picture is less clear and the calculations involved in making the necessary price comparisons are more complicated. As a story in The Times newspaper on the 27^th of August 2023 pointed out, energy prices have been unpredictable – they could be going up, going down, or remaining more or less stable.

Various sites – including, for example, Citizens Advice – publish detailed instructions for switching your energy supplier. In any event, the critical calculation will be whether any alternative offers a more competitive price for the energy you consume.

If you are looking for greater certainty in a market where prices and price caps are fluctuating, you might want to consider the advantages of a fixed-rate tariff. Although this will guarantee the price you will be paying, of course, you could be losing out if prices in the market subsequently fall. You will also be more restricted in leaving any fixed-rate deal if you later decide to switch suppliers once again.

Save more than £300 a year by upgrading your heating controls

BEAMA – the UK trade association for manufacturers and providers of energy infrastructure technology and systems – has conducted research on the savings likely to be achieved in different housing types simply by upgrading the basic heating controls. Those controls include thermostatic radiator valves, room thermostats, and smart-controlled programmers.

Basing the findings on energy prices up to the end of September 2023, BEAMA found that savings from a “full upgrade” of heating controls could save owners of a detached house more than £500 annually and those in a flat or apartment about £154 a year – with the average estimated savings for all types of housing £303.89.

Easy pickings

Every little helps. In recognition of the way that even fairly small changes and adjustments can achieve worthwhile savings, the Consumers’ Association’s Which? magazine recently suggested the following:

• cleaning routines – simple things like descaling the kettle, cleaning the cooling coils on the back of the fridge, cleaning the lint from the filter on the tumble dryer, and defrosting the freezer all help the appliances to work more efficiently – saving on energy;

• although you’ll want to avoid putting just a single garment into the tumble dryer, dry different clothes separately according to the fabrics from which they’re made – different fabrics take different times to dry;

• even better, of course, don’t use the dryer at all but hang your washing outside to dry in the fresh air;

• wait for food to cool before storing it in the freezer;

• do you really need that 40° setting on the washing machine whereas 30° could be perfectly acceptable for your standard wash – regularly saving yourself the cost of heating that extra 10°;

• regularly bleed the radiators of your central heating system to keep them operating at optimum efficiency;

• move furniture from in front of your radiators and let the heat warm the room instead;

• help to keep that heat in by always closing the curtains at night;

• remembering to turn off the lights whenever you leave the room empty will not save a great deal immediately – but over the course of a year those small savings will mount up;

• turn off gadgets and appliances at the mains instead of leaving them on standby – you could save yourself an average of £6 a year;

• if you have the oven on, remember that you’ll be losing heat every time you open the door – so, keep it closed as long as you can;

• cooking is responsible for around 14% of your energy consumption – according to British Gas – so, rather than the cooker, consider more energy-efficient microwaves, air fryers, or slow cookers

• where your appliances have an “eco” setting, remember to use that whenever possible; and

• load the dishwasher correctly and run the cycle only when the machine is full.

More easy pickings

Unsurprisingly, the Energy Saving Trust also offers a list of energy and money-saving tips and suggestions that are easy and cheap to implement:

• draught-proofing gaps around windows, doors, and floorboards could save you up to £105 a year – according to the Energy Saving Trust’s calculations based on energy prices at the end of October 2023;

• swap your bath for a shower at least once a week and the savings could amount to £14 a year;

• then when you stand under the shower keep it to just 4 minutes and you could save a further £75 a year;

• simply insulating your hot water cylinder could save a further £50 a year, says the Energy Saving Trust; and

• savings of £31 a year can be made in the kitchen by making sure you are not overfilling the kettle each time you boil water and by fitting an aerator on the kitchen tap to reduce the volume of water that comes out of it (without otherwise restricting its efficiency).

Natural energy

As you might expect, the Centre for Sustainable Energy (CES) points householders in the direction of using natural, renewable, sources of energy – and, in September 2023, it focused its discussion on the currently hot topic of heat pumps as alternatives to conventional central heating boilers.

The single biggest such source of natural energy comes from the sun, of course, and you can harness its power by hanging out your washing to dry on a sunny day, rather than turning on the tumble drier, investing in solar panels as an alternative source of energy for your property, and by enjoying the health-giving rays of sunshine on your bicycle rather than sitting in your car to go to the shops.

Landlords – consider an energy audit

If you are a landlord – especially one responsible for managing the communal energy needs of a block of flats – you might want to consider the benefits of a comprehensive energy audit. Through this, you might satisfy yourself that the energy you consume is used in the most efficient ways possible and that any changes are made to secure more economic energy consumption.

Once again, the Centre for Sustainable Energy claims to provide particular support for landlords concerning energy-efficiency measures.

Summary

We hope this discussion and its various tips and suggestions have given you some ideas of how you can cut energy costs around your home or let property.

Further reading: How to cut energy bills and How to improve your property’s EPC rating.

If you have an unoccupied or empty property, you need to take certain precautions to ensure that it’s as secure as possible.

Here we at Cover4LetProperty will outline some of our top tips in this area.

Insurance cover

Before we do so, let’s just have a quick re-cap as to why this is required and the implications for things such as unoccupied property insurance:

• once your property stands unoccupied for more than the period of time specified in your landlord insurance policy, you will need to take out unoccupied property insurance in order to maintain full cover;
• that time period varies from policy to policy but is typically in the range 30-45 consecutive days;
• this applies irrespective of the reason your property is standing unoccupied or whether or not it’s furnished.

As part of the conditions of cover associated with typical unoccupied property insurance, you may find you’re obliged to take certain steps to keep your property secure and to minimise certain types of risk. Failing to do so might put your cover in peril, so it’s worth being sure that you comply.

Top tips for reducing burglary risks

A major category of risk with empty property arises from burglars, vandals and sometimes squatters. Keeping in mind that typically such individuals prefer to avoid the risk of encounters and that they’re often opportunistic in nature:

• make sure that all your doors and windows are securely locked with quality security devices such as deadlocks;
• leave a light or lights on timers – this suggests occupation (or raises uncertainty) for any prying eyes;
• enter your property periodically to adjust curtain positions;
• don’t allow post to visibly accumulate in letter boxes;
• keep your external garden areas tidy and the grass cut;
• don’t disconnect landlines or put answerphone messages on them indicating that nobody is in occupation at the moment;
• if the property’s unoccupied due to internal building work, don’t allow builders to put advertising signs in windows saying as much.

Property environmental systems risks

Your property will typically have certain services perhaps including water, electricity, gas, heating, drainage and sewerage.

Should these go wrong when tenants are in occupation, typically you’ll be notified and might be able to resolve them quickly before serious damage is incurred. When your property is empty though, nobody will be there to inform you so:

• shut off the gas supply at source – unless freezing weather is anticipated in which case it may be necessary to leave heating on at a low level to prevent frost damage (check the requirements of your policy for specifics);
• do likewise for water, unless it’s required for central heating;
• unplug all electrics except for the lights on timers and perhaps anything required for central heating in winter, if you leave it on;
• check the property regularly for leaks from pipework, remembering that even if the water is off at source, your heating system will still have lots of water in it unless you’ve completely drained it down;
• check inside for evidence of damp patches on walls and if spotted, resolve them quickly;
• inspect external downpipes and gutters/drains. If they’re blocked and flooding, action should be taken immediately.

External risks

Basic good practice here should include:

• looking for signs of damage to roofs, including slates and tile slippage. It’s also advisable to do so internally from the loft if it’s accessible;
• checking the windows and doors to ensure they’re still watertight and that no glass is broken or damaged;
• clearing any rubbish or detritus that’s accumulated in the garden due to storms or winds. Keeping the property’s exterior well-maintained creates the appearance of occupancy;
• keeping an eye out at ground level around the property for any signs that might indicate external damp patches due to blocked drains etc.;
• installing security measures – this may include alarm systems, security cameras, and motion-activated lighting.

Finally, remember to check your policy for any specific requirements about the frequency with which you’re required to visit your empty property and perform any required checks. Under the terms of your empty property insurance policy, it might be required that you keep a journal of the dates and times of your visits plus any remedial action you might have undertaken while there.

Whether you’re a prospective buyer, homeowner, or landlord, it pays to follow the news and stay abreast of the latest trends and developments in the housing market.

With that in mind, let’s take a peek at some of the recent UK property news headlines.

Nationwide September House Price Index

Nationwide’s regular House Price Index provides a ready insight into the status of the housing market.

The building society’s figures for September indicate that average house prices are currently stable – there was no change from August – but that the cumulative impact of previous falls results in an annual decline in prices of 5.3% (the equivalent of some £14,500 on the average price of a home in the UK).

In the three months to the end of September, all the regions of the UK reported falls in average house prices. The Southwest of England saw the steepest drop in prices (an annual decline of 6.3%) while Northern Ireland registered a relatively stronger picture with a fall of just 1.8%. House prices across the whole of the North of England fell by 3.9% compared with the same, third quarter of 2022.

Nevertheless, housing remains expensive. Nationwide cites the example of a first-time buyer on an average income who purchases their home with a 20% deposit. That buyer would currently need to spend a very significant 38% of their monthly income on mortgage repayments – compared with the more typical, longer-term average rate of 29% of income.

Gove ignores Renters Reform Bill at key conference speech

Mixed messages seem to be given by the government about progress on the much-delayed Renters’ Reform Bill.

Both the Housing Secretary, Michael Gove, and his Minister for Housing, Rachael MacLean, promised meetings on the fringes of the current Conservative Party conference that the Renters’ Reform Bill would receive its second reading in Parliament before Christmas of this year.

According to a story in Landlord Today on the 4^th of October, however, the leaders of Generation Rent – who are also attending the conference – expressed their dismay that Mr Gove failed to mention the reform Bill at any point in his primary keynote speech to the assembled delegates.

Businesses and multi-residence buildings must now comply with updated fire safety laws

Important new fire safety legislation came into effect on the 1^st of October, Propertymark reminded its readers on the 3^rd of the month.

The new rules are contained in Section 156 of the Building Safety Act, 2022, and the key requirements are as follows:

• all commercial premises – whatever their size – must carry out an assessment of the fire risk and publish their fire safety measures;

• in multi-occupancy premises or those where the owner and occupier are not one and the same person, there must be increased coordination and cooperation; and

• where a residential premises contains two or more dwellings, the residents must be given information relating to the fire risks and the fire safety arrangements that are in place for their wellbeing.

The 10 most in-demand features for buyers and renters

On the 27^th of September, the online listings website Rightmove published the 10 most sought-after features wanted by buyers and renters respectively:

Buyers

1. the property needs refurbishment or remodelling – a renovation scheme;
2. a new central heating boiler;
3. loft conversion;
4. plenty of storage;
5. a cellar;
6. double glazing;
7. remodelled;
8. chain-free;
9. garden; and
10. close to a railway station.

Renters

1. double glazing;
2. “smart” property – internet connected;
3. close to a railway station;
4. parking provision;
5. cellar or basement;
6. new central heating boiler;
7. garden shed;
8. loft;
9. energy efficient; and
10. open plan.

You might want to take these lists into account if you are selling your property or intending to become a landlord.

The management of any let property may prove a time-consuming and onerous task – even if you are only an occasional or “accidental” landlord. Advertising the letting, selecting of tenants, conducting background checks and taking up references, drawing up the tenancy agreement and conducting inventories, all take considerable effort – and that is before you have even started to manage the need for ongoing repairs and maintenance.

It is hardly surprising, therefore, that many landlords opt to share at least some of that burden by instructing a letting agent to act on their behalf.

If this is an attractive solution to the running of your own buy to let business, what needs to be considered when working with letting agencies?

• your choice of letting agent may be guided by their membership of Safeagent or the professional associations which are party to that scheme;
• in the event of any dispute you might subsequently have with your letting agent, it might also be prudent to choose one that is registered with the Property Ombudsman;
• it is important to have a clear understanding of the extent and scope of services offered by a letting agent;
• one of your principal decisions, for instance, is whether the agent is going to manage all matters relating to tenancies of the property, or whether they are to operate a full management service in which ongoing repairs and maintenance to the property are also handled by them;
• a closer and more detailed examination of the service they offer – and perhaps more importantly, the efficiency of that service – might be obtained by looking at similar properties in your local area for which the letting agents are responsible;
• as the landlord, you have a number of responsibilities for the health and safety of your tenants, so it is important to establish whether the letting agent is also going to ensure compliance with such matters as gas, electrical and fire regulations;
• it is also important to be clear whether you remain responsible for placing any deposit from your tenant with an approved deposit protection scheme, or whether this is to be done by the letting agent on your behalf;
• you might want to consider instructing more than one agent, since many offer a “no let, no fee” arrangement;
• remember, too, that it is the scope of the service offered and the agent’s success in letting your property that is likely to be more important than finding the cheapest fee;
• the more information you are able to provide the letting agent, the better your chances of having the kind of tenant you prefer;
• with respect to those fees, letting agencies typically charge a percentage of the rent you are charging and in return they arrange everything from advertising the letting, finding tenants, taking up references, drawing up the tenancy agreement and conducting inventories;
• fees for a full management service are also likely to be based on a (higher) percentage of the rent you intend to charge.

Five takeaway tips for landlords when choosing a lettings agency

1. Choose a reputable agency

Selecting a reputable letting agency is crucial for effective property management. Look for agencies with a proven track record, positive client feedback, and a good understanding of the local market. Seek feedback from other landlords who have used the agency’s services to gauge their satisfaction level.

Ensure the agency has a good understanding of the rental market in your specific area.

2. Discuss services and fees

Have a clear discussion about the services the agency provides and the associated fees. Understand what services are covered in the management fee and any additional costs you might incur. Clarify the services the agency will provide and the associated fees. Common services include:

• Tenant sourcing: Advertising, conducting viewings, and tenant background checks.
• Tenancy agreement preparation: Drafting and signing the tenancy agreement on your behalf.
• Rent collection: Ensuring rent payments are made on time and handling late payments.
• Property maintenance: Coordinating repairs and maintenance as needed.

Ensure you understand the fee structure, whether it’s a percentage of the rent or a fixed fee, and any additional charges for specific services. It’s essential to have a transparent agreement to avoid any misunderstandings later.

3. Regular updates and reporting

Ensure the agency provides regular updates on the status of your property, including occupancy, maintenance, and financial reports. Transparency is key to a successful landlord-agent relationship.

4. Screening and selection of tenants

Discuss the tenant selection process with the agency. Make sure they conduct thorough background checks, credit assessments, and references to secure reliable tenants for your property. Discuss matters such as your preferred tenant profile (e.g., no pets or smoking).

5. Review the management agreement

Before signing a management agreement, review it carefully to ensure it aligns with your expectations and protects your interests. Discuss the frequency and format of financial reports you’ll receive. Seek legal advice if needed to understand the terms completely.

Next steps

Letting agencies may help to take the strain out of running any buy to let business. Before signing any contract for their services, however, you might want to keep these considerations in mind.

Further reading: Guide to choosing a letting agent.

The latest property news headlines continue to reflect the underlying trends of the UK economy. While average house prices tumble nationwide, aspects such as energy efficiency and location also impact the market locally.

Commentators predict that rent levels are on a relentlessly upward trend.

So, let’s take a look behind those headlines.

Zoopla: House Price Index August 2023

The online listings website Zoopla published its latest House Price Index.

This revealed that – despite the recent fall in prices – there continued to be a modest annual average rate of growth. Admittedly, this registered an increase in average prices of barely 0.1% – the lowest since 2012.

Regional differences account for the fact that whereas annual prices fell by some 1% in London, they rose by 1.7% in Scotland.

Higher mortgage interest rates continue to depress the volume of sales – which is 28% down on the previous year where a mortgage is needed to make the purchase. Since cash sales are unaffected by mortgage rates, the overall annual drop in transactions is 21%.

By extension, therefore, if mortgage rates fall during the course of the coming year, then activity in the housing market is likely to increase, says Zoopla.

Sellers of homes with improved EPC ratings see ‘green price premium’

Going green makes sense for the environment – but might also help to boost your personal wealth.

That is the message in research recently conducted by the online listings website Rightmove recently.

It reveals a marked premium is paid by buyers of properties that have a higher than average Energy Performance Certificate (EPC) rating. Comparing a home that has an EPC of D with one that has an improved C rating, the difference in price could be some £11,157 – a gap of some 3%. Comparing a property that achieved a lowly F rating with one that scored a C rating exposed a difference of nearly £56,000 (15%) in terms of nationwide average house prices.

Furthermore, those “greener” properties with a higher EPC also sold more quickly than less energy-efficient homes.

A majority of people interviewed in Rightmove’s survey would be happy to pay such a “green premium” in order to enjoy the benefits of lower energy bills in the future.

New report: Northern cities are UK property hotspots

Although the national rate of growth in house prices has fallen in the past 12 months, some regions in the north of England and Scotland have stood out as property hotspots, according to Estate Agent Today on the 6^th of September.

Counter to the usual expectations that house prices traditionally climb more steeply in the south, reports indicate that between January 2020 and June 2023, the principal property hotspots were in the north of the country:

• the northwest – where average prices rose by more than 34% during the period in question;

• East Midlands – a little over 32%;

• Scotland – more than 27%;

• the northeast – more than 23%; and

• Yorkshire and the Humber – also more than 23%.

In the southeast of England, by contrast, average house prices struggled to grow by a little more than 14% in that same timeframe.

Cost of renting will continue to ‘rise sharply’, warn lettings agents

As tenants already know to their cost, rents have risen steeply in recent months. The bad news is that they are tipped to continue to rise even more steeply, according to a story in the Daily Mail recently..

Citing research by the Royal Institution of Chartered Surveyors (RICS), the newspaper revealed that more than half (54%) of all lettings agents have reported increases in rents during the previous three months to the end of July.

Nationally, average monthly rents have reached a record £1,367 – yet strengthening demand against a background of declining availability means that rents are almost certain to continue to grow still further.

Recent years have seen successive pieces of legislation obliging private sector landlords to improve the energy efficiency of the homes they let.

The current Minimum Energy Efficiency Standard (MEES) Regulations, for instance, mean that, since the 1^st of April 2020, any property must achieve at least an Energy Performance Certificate (EPC) of at least an E rating before it can be let to tenants.

The penalties for non-compliance can prove costly. A landlord letting a property with an EPC rated less than E for a period of up to 3 months can be fined up to £2,000 and if the letting is longer than 3 months, the penalty rises to a maximum of £4,000.

Although the government has not yet indicated a deadline for the introduction of further legislation, it has announced its intention to bring as many privately rented homes as possible up to a minimum EPC rating of C by the year 2030.

As a story in Landlord Today on the 19^th of August 2023 explains, a cornerstone of any initiative looking to improve the energy efficiency of any home is its heating system and the boiler in particular. So, it’s worth looking at the ways of making the most of your hot water and central heating boiler. Your tenants will thank you for it – and it may help you stay on the right side of energy efficiency legislation.

Getting the most from your boiler

You’ll soon know when your boiler is working at anything less than its optimum – the hot water will be only lukewarm, and any radiators will be tepid to the touch. What can you do?

Service

• the first step – and one that you should schedule annually – is to have the boiler serviced by a competent engineer;

• if it’s a gas boiler, of course, that means ensuring that the servicing agent is a registered Gas Safe engineer;

Cleanliness

• perhaps more than any other household appliance, the boiler is going to work best if you keep it clean and free of accumulated dust, grease, and other debris;

• though never attempt to clean the inside of the boiler yourself, warns British Gas – that’s a job that you should leave to the experts during the annual servicing;

Radiators need bleeding

• in even the best-maintained central heating systems, a certain amount of air can creep in and find its way into the radiators where it will leave cold spots at the top of them;

• the air trapped at the top of your radiators makes the whole heating system less efficient – and will be costing you extra in fuel bills, too;

• to get rid of any air that has been trapped like this, SSE Energy Services suggests that you bleed the radiators at least once a year – even when they appear to be working efficiently enough;

Check the pressure

• EDF Energy explains why the operating pressure of the central heating system can be an important issue – too low and the heating won’t be working as well as it should but too high and you run the risk of leaks developing in the system;

• the energy supplier makes clear how you can check the pressure of your system and the remedies for correcting a system that might be either too high or too low – aiming for a typical pressure of between 1 and 2 bar;

Insulation

• insulating the pipework is one of the best ways of ensuring that the heat your tenants have spent their money on generating stays where it can work its best – namely, within their home;

• efficient lagging will keep the warmth in the pipes, reduce heat loss, and save money on keeping the home warm.

As new energy efficiency legislation seems certain to tighten the already quite strict rules, it will repay landlords to pay close attention to keeping hot water and central heating boilers working at their optimum.

Please note this is based on our current understanding of legislation, which is liable to change.

Retaining a happy and responsible tenant is in your own best interests as a landlord, or course. Because that way you reduce the “voids” created by existing tenants leaving and new ones coming in – thus maintaining your rental income stream – quite apart from the general hassle and expense of having to advertise for and recruit new tenants.

Here we give some ideas on how to keep your tenant (and therefore, you) happy.

The business relationship

It is important to remember that the relationship between tenant and landlord is essentially a business relationship. You provide the accommodation, and the tenant is happy to pay a fair and reasonable rent for a home that is in good condition.

You are under no obligation to become friends with your tenants – but the key to the relationship seems to be a level-headed consideration of what the tenant considers to be a good deal.

Considerations

Here we outline a few tips on keeping your tenant happy, starring with rent. Probably a key factor for any tenant staying in their rented property is the cost:

• look carefully at your rent increase plans. Will your new price still be competitive when measured against similar properties in the area? If it isn’t, your tenants may simply walk away;
• perform a cost-justification exercise before raising rents. For example, just how much will it cost you in time and effort to replace tenants who might leave following your increase? It’s important to understand the maths and be sure that your increase makes sense when measured against the risks you might be taking of losing your tenants as a result;
• if a rent increase is unavoidable, try to link it to something beneficial they haven’t had previously – in other words, convince them that they’re getting something in return. Notification of a rent increase which is also accompanied by confirmation that (e.g.) you’re installing some new garden furniture might result in a diluted focus on the increase itself.

Communication and problem resolution

• communicate regularly with your tenant. This can help personalise you (or your appointed property agent) as an individual and nip any minor grumbles in the bud before they become a problem. Some tenants may never see their landlord from one month to the next and that might not always be a good thing;
• acknowledge any tenant communications promptly. This makes them feel valued;
• if you’ve received a request for action (e.g., a repair) but it’s one you can’t deal with immediately, tell them why not but say that it has been noted for attention. If possible, offer them a target date for resolution;
• should a complaint arise, try to manage it calmly rather than escalate tensions through rebukes etc. Not all tenant complaints will be justified but they do indicate that the originator isn’t happy and that’s something that should influence your response if you wish to retain them;
• speak to your tenants in person or on the phone rather than use emails, texts, social media and letters. True, there may be times when, for legal reasons, you have no choice but to go into writing, but the written word can be subject to misunderstanding and ambiguity and that can quickly sour a relationship.

More tips on keeping your tenant happy

• respect your tenant’s privacy. Provide advance notice before entering the property for inspections, repairs, or other reasons as required by local laws;

• conduct regular property inspections to ensure that everything is in good condition. This proactive approach can help identify and address issues before they become major problems;

• ensure that the property is secure and meets safety standards. Install proper locks, smoke detectors, and fire extinguishers, and inform tenants about emergency procedures;

• if applicable, provide amenities or services that enhance the living experience, such as a clean common area, laundry facilities, or landscaping;

• be flexible when possible. Accommodate reasonable requests from tenants, such as minor alterations or adjustments that can make the space feel more like home to them;

• have a comprehensive and clear lease agreement that outlines rights, responsibilities, and expectations for both parties. This can prevent misunderstandings later;

• if conflicts arise, handle them professionally and calmly. Try to find a fair solution that benefits both parties;

• if you have a good tenant who pays rent on time and takes care of the property, consider offering lease renewal incentives to encourage them to stay;

• stay updated. Keep yourself informed about relevant landlord-tenant laws and regulations in your area. This helps you operate within legal boundaries and maintain a fair and lawful relationship.

Research and data consistently underline the significance of tenant satisfaction and needs in maintaining a successful landlord-tenant relationship. The modern rental market demands flexibility, transparency, and responsiveness from landlords to ensure tenant retention.

By focusing on factors within your control, such as rent affordability, property quality, and effective communication, you can create a rental experience that meets tenants’ expectations and encourages them to remain. Additionally, considering external factors like location and accessibility further enhances the appeal of a rental property.

While challenges like rent increases and tenant turnover may arise, proactive strategies can mitigate their impact. Landlords who prioritise tenant retention not only reduce turnover costs but also foster a positive reputation, leading to word-of-mouth referrals and attracting new tenants.

Remember, building a positive landlord-tenant relationship takes effort from both sides. By demonstrating respect, responsiveness, and a willingness to work together, you can foster a harmonious and productive rental experience.