If you’re a landlord, you’ll be taking more than a passing interest in the underlying state of the economy. The Autumn Statement by the Chancellor of the Exchequer might be just the time to find out what’s going on – and to hear what plans are in the pipeline that could affect your buy to let business.

Let’s take a closer look at the Chancellor’s latest statement about some of the government’s intentions.

Taxation

Rarely a subject to gain a lot of support, this year’s Autumn Statement contained snippets of good news about taxation for landlords.

Landlords with larger portfolios who are self-employed and earn profits of more than £12,570 will no longer be liable for Class 2 National Insurance Contributions with effect from the new tax year in April. They will still be eligible for contributory benefits though, including the State Pension.

Noting this gain for landlords, the National Residential Landlords Association (NRLA) also recorded its dissatisfaction with failures by the government on other taxation fronts:

• there was no mention of the NRLA’s earlier arguments in favour of reintroducing mortgage interest tax relief;

• the reduction of the tax-free allowance on Capital Gains Tax (£12,300 to £6,000 next year then £3,000 from April 2024) – a move likely to encourage still more landlords to sell up and quit the private rented sector altogether, argued Landlord Zone;

• no change to the extra 3% premium landlords pay in Stamp Duty Land Tax – which could discourage landlords from investing in further property to let; and

• no additional tax incentives for investment in private sector rental property.

Planning

One of the more controversial promises from the Chancellor would allow much greater freedom to create self-contained flats within a single dwelling.

Owners of single residences would be given the “permitted development right” to create two self-contained flats – provided there was no alteration to the façade of the building – without the need for formal planning permission.

Supporters of the move argue that the planning freedom will allow the creation of more affordable homes, but opponents are worried about changes to the character of a neighbourhood and the impact on available parking spaces.

Local Housing Allowance

Starting in the new tax year, the Local Housing Allowance will once again be aligned with the 30% level of local market rents.

The Letting a Property website explains that the Local Housing Allowance is used to calculate the maximum sum those on Universal Credit or in receipt of Housing Benefits can claim towards their rent in the private sector. Naturally, that sum varies depending on the actual rent payable, the size of the property, and its location.

With the Allowance once again aligned to 30%, it is estimated that some 1.6 million households will receive an annual average of £800 in housing benefits.

At the same time, Universal Credit itself will go up by 6.7% and the National Living Wage (the minimum wage) will go up to £11.44 an hour (an increase of almost 10%) – both are clearly related to lower-income tenants’ ability to afford private sector rents.

Mortgage Guarantee Scheme

The scheme exists to help borrowers buy their first home even though they have smaller deposits. The scheme guarantees the availability of 95% loan-to-value mortgages, and it will now stay in operation until at least the end of June 2025.

Renters Reform Bill

In an Autumn Statement that offered little comfort to many landlords, uncertainty persists about the future and implementation of the much-vaunted Renters Reform Bill.

As long ago as the Conservation Party’s manifesto of 2019, the Bill has promised a thorough shake-up of the private rented sector. The Chancellor’s Autumn Statement did nothing to dispel that continued uncertainty.

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

Current property news headlines tend to paint a picture of falling house prices. But a story in Which? magazine on the 1^st of December indicated that average prices – based on official Land Registry figures – have fallen by only 0.1% in the past 12 months. The average price of a home in the UK remains close to the all-time high of £293,000 recorded in November last year.

Against that background, let’s take a peek at some of the other property news.

House Price Index: November 2023

When it compiled its house price index for November, the online listings website Zoopla recorded a somewhat steeper annual dip in average house prices – down 1.2% to £264,600 compared with the average price just one year ago.

Although rising mortgage interest rates have dampened demand, says Zoopla, the volume of transactions holds reasonably steady as the number of homes on the market reached a six-year high.

This has created something of a buyers’ market, with sellers granting discounts of an average of 5.5% or £18,000 on the advertised price.

Zoopla forecasts a continued decline in average prices during the course of 2024, but the fall could be arrested if mortgage interest rates are reduced.

Flat conversions may no longer need planning permission

During his Autumn Statement to Parliament on the 25^th of November, Chancellor Jeremy Hunt revealed government plans to abolish the need for planning permission when owners choose to convert a single house into two flats.

In its coverage of the proposals, the Mail Online recognized that the move is proving controversial because it could deny local communities the right of input to changes that could alter the character of the area.

Nevertheless, the government – and supporters of the plans – argues that the proposed “permitted development right” would encourage an increase in the supply of homes both for rent and for sale while also helping to lower the average cost of more affordable dwellings.

Slashing the need for red tape could help to increase the number of affordable homes, say commentators, although a higher number of residents will exacerbate parking problems and probably invite opposition from those already living in the neighbourhood.

Up to 50% of southern England landlords looking to sell up

The exodus of landlords from the buy to let market continues apace – though with notable differences in the south of England compared with the north, argued an article in Landlord Zone on the 30^th of November.

Landlords in parts of southern England, for example, are selling up and leaving the market altogether at the alarming rate of 52%. While half of the existing number of landlords are leaving in this part of the country, the rate is “only” 26% and 22% in the northern conurbations of Leeds and Manchester respectively. Across the country as a whole, the proportion of landlords giving up their buy to let businesses is around 17%.

The reasons for the north-south divide are many and varied. At least one reason advanced for the difference in attitudes among landlords is that the north has seen a higher rate of growth in the price of residential property in the past year – creating the impression of it being a safer place for investment than the south of the country.

Older renters moving to cheaper areas and smaller homes

Against the background of rising rents and a dearth of available properties, older tenants are looking to cheaper parts of the country and generally smaller homes in which to move, according to a story in Landlord Today on the 30^th of November.

The trend is supported by figures on the types of tenancy agreed by older renters with incomes of between £30,000 and £70,000 a year. In this sample, a recent survey indicated that during the first six months of this year fewer than half of new tenancies were for homes with three or more bedrooms (the remainder were for one and two-bedroom rental properties.

During the same period in 2020, however, 57% of new tenancies were for homes offering three or more bedrooms.

Have you just found yourself to be an accidental landlord? Perhaps you inherited a property which you’ve decided to let out? Or perhaps you’re having difficulty selling your previous home and want to let it out for a while? Then you might have slipped into the role as an “accidental landlord”.

On the other hand, your investment in buy to let property might have been an entirely conscious and focused decision, with a view to creating a thriving and expanding business.

Landlord insurance

Whether you are an “accidental” or a “professional” landlord, though, the property needs the protection of buy to let insurance, which is another name for landlord insurance.

What tips might be given to both of these types of landlord?

Don’t rely on your standard home insurance:

• the first – and probably most important – tip is to make sure that you arrange specialist, purpose designed landlord insurance and do not rely on any home insurance you might have arranged when you were living in the property yourself;
• standard home insurance policies are designed for owner-occupied properties, so if you’re letting your property, you may typically need landlord insurance;
• when the property is occupied by tenants, the risks are quite different and you are running the letting as a business, not as your own home;
• the distinction is likely to have been apparent if you needed a mortgage to help buy the property – a mortgage on your own home is quite different to a buy to let mortgage;
• reliance upon any standard home insurance when you are in fact letting the property to tenants runs the risk of your having any claim flatly rejected by your insurer;

What is the difference between home insurance and landlord insurance?

The main difference between home insurance and landlord insurance lies in the intended purpose and cover. Here are the key distinctions:

Occupancy

• Home insurance: this type of insurance is designed for owner-occupied properties. it provides coverage for the homeowner’s residence and personal belongings.
• Landlord insurance: specifically tailored for properties that are being let to tenants. It takes into account the unique risks associated with renting out a property.

Covered risks

• Home insurance: Typically covers the structure of the home, contents, personal possessions, and liability for the homeowner.
• Landlord insurance: Includes coverage for the structure of the building, landlord’s fixtures and fittings, contents (if the property is rented furnished), liability protection, and may also cover loss of rental income.

Loss of rent

• Home insurance: Generally does not include protection for loss of rental income, as it is not designed for rental properties.
• Landlord insurance: Often includes coverage for loss of rental income in case the property becomes uninhabitable due to a covered event (e.g., fire, flood) and tenants are unable to occupy the premises.

Liability

• Home insurance: Provides liability coverage for the homeowner in case someone is injured on the property.
• Landlord insurance: Offers liability protection for landlords, covering legal expenses and compensation if a tenant or visitor is injured on the property.

Tenant-related issues

• Home insurance: Typically does not address issues related to tenants, as it is not designed for rental situations.
• Landlord insurance: Addresses specific risks associated with renting, such as tenant damage to the property.

How can I be sure I have the correct type of insurance?

• landlord insurance occupies something of a niche in the general insurance market;
• as such, you might want to reap the benefits offered by a specialist – such as us here at Cover4LetProperty – with years of experience and expertise in the provision of landlord or buy to let insurance;
• this may help you to avoid potentially expensive errors or shortfalls when it comes to arranging the insurance cover you need;

Properties comprising several flats

• whether you own the whole of the freehold to a property comprising several flats or have a share in the freehold, landlord insurance is still required;
• this subject may give an element of confusion and is further reason for consulting a specialist insurance provider likely to be well versed in the complexities of arranging such cover;

Tips on the elements of cover you may need

• the structure and fabric of the property you own is exposed to potentially very serious risks – such as fire, flood, impacts, storm damage, vandalism and theft – against which building insurance is the appropriate defence;
• it is worth noting that some insurers include cover for malicious damage caused by tenants or their visitors as a standard element of cover, whilst others might charge an additional premium for this important element of security;
• to make sure that you are prepared for even the worst case scenario resulting in the complete loss of the building, it is necessary for the total sum insured to cover the cost of reconstruction;
• the level of contents insurance you may need depends, of course, on just how much you own – insurance of any contents owned by the tenants is entirely their own responsibility;
• in the majority of cases, even a minimum level of contents insurance is arranged by landlords to cover such items as carpets and curtains in otherwise unfurnished accommodation;
• the importance of public liability insurance – in this instance, more commonly referred to as landlord’s liability insurance – needs to be stressed, since it is likely to be even more critical to the landlord than the owner occupier;
• landlord liability insurance provides indemnity against claims from tenants, their visitors or any member of the public who may suffer a personal injury or have their property damaged as the result of the landlord’s alleged negligence – such claims may assume very significant proportions and indemnity typically provides at least £2 million of cover or even more;
• as already mentioned, and even as an accidental landlord, you are letting the property by way of a business proposition that relies upon a steady stream of income from rents;
• since there may be a loss of rental income following an insured event which leaves the property temporarily uninhabitable, some landlord insurance policies typically provide an element of compensation for such loss;
• attending to essential repairs and maintenance may prove a time-consuming – not to mention expensive – part of the landlord’s role, especially where action needs to be taken as a matter of urgency;
• to help cover any such event, you might find that a domestic emergency assistance policy proves worthwhile.

Whatever type of landlord you may be, landlord insurance is likely to play a central role in protecting your property against a range of risks and perils. Keeping in mind these tips and suggestions may help you secure the cover you need – at a competitive price.

Further reading: Guide to being a landlord.

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.