Perry Bishop’s lettings team are delighted to have chosen Heart Heroes as their Charity Partner of the Year.

Heart Heroes supports families of children in the South West living with congenital heart disease and heart problems, providing physical and emotional support. This small but dynamic charity:

• Supports children with heart diseases aged 0 – 16.
• Organises events and provide socialising opportunities for children to attend.
• Introduces families with similar experiences so that they can support each other.

To find out more about the work of this charity and to find out how you too can help visit Heart Heroes

We are thrilled to lend our support to this wonderful charity who are making such a difference to the lives of children with heart conditions and their families.

Tammy Powell, Lettings Manager Perry Bishop

You’ll probably know this already if you are a landlord, but if you don’t yet, you should get to know it – because rental yield is important!

But, what is rental yield and what do you, as a landlord in The Cotswolds need to know about it?

Put simply, rental yield is a way to measure the return on your investment. There is your gross yield and your net yield, which are both important, but take different things into account.

Let’s say you rent out a two-bedroom property in The Cotswolds for £850PCM.

As an example, if you originally purchased the property for £150,000 and you divide the annual rent (£10,200) by the amount you invested (£150,000) and times it by 100, you get a percentage, and that’s the gross yield. In this case 6.8%.

Gross yield is a fairly basic figure but it gives you a good idea about what you’re getting back. However, there is also net yield. This is similar to gross, but you also take into account the additional costs you incur as a landlord, such as insurance, maintenance, solicitors, agents, mortgage, and so on.

This net yield is helpful because you can look at exactly how much it costs you to be a landlord and shows you where you could reduce costs to increase your yield.

Deciding what a good yield is might be different, but anything above about six or seven per cent is good.

Our team at Perry Bishop are adept at helping people make the most of being a landlord, and we have come up with a list of five ways landlords can increase their rental yield.

If you need more help or any clarification, simply get in touch with us with our Lettings Manager Tammy Powell  tammypowell@perrybishop.co.uk.

1. Review Rents Regularly

Here’s a simple way of helping to increase the rental yield. At the appropriate time, look at the rental income on a property – can it be raised to be more in line with the going rate? Make sure you keep within your contractual agreements, though and remember that while a rental increase may be right for you, if a tenant has been with you for many years and has caused you no issues, do you want to upset the apple-cart?

2. Review Your Outgoings

Let’s look at what you are spending on your property. Do you automatically renew your insurance, or is there a more competitive alternative on the market? If you use a plumber, are their costs expensive, or can someone do the same job for a lower price?

Keep on top of your outgoings, and set reminders to look at alternatives when the time comes. Being a landlord is a business, so treat it as such.

3. Check Your Mortgage Renewal

You may have a buy-to-let mortgage for your property, but is it still the right one? Many different products are being brought to market, so when you’ve come to an appropriate point in your mortgage agreement, have a look around.

Always be mindful about switching. Keep an eye on the media for different products and even though it might not be the right time immediately, make a note so that you can go back to it when you are ready.

4. Invest Wisely

When you are thinking about becoming a landlord, do your homework. Look at where to spend your money, but also at the type of property. Do you want a newer property with less maintenance, or do you want an older place with the risk more could go wrong?

If you have a plan and it works, don’t deviate. If you have a good yield because you’ve got a newer home, stick with the idea when looking at another buy to let.

5. Be a Better Landlord

You’re more likely to get a better yield if you have a great property and great tenants (and yes, both can be achievable). But, can you be a better landlord?

• Do you add quality fittings?
• Do you respond quickly to issues?
• Do you get things fixed promptly?

By being a great landlord, you’re more likely to attract great tenants and be able to justify higher rents.

You assess a house and a tenant – why not assess yourself and see how you could be a better landlord. It makes business sense.

Having the right tenant in your property is more likely to help with yields. If they look after the house, your costs are likely to be lower.

Of course, for total efficiency, we suggest you consider using a lettings agent to help manage your property portfolio. A full expert property management service will help you make the most of being a landlord.

If you need advice about becoming a landlord, or if you are a landlord and need some support,  chat with a member of our friendly and experienced team.

The number of laws affecting lettings currently stands at just under 200 and every year this list is becoming longer! For landlords, keeping abreast of all these changes and remaining compliant is increasingly challenging.  Existing let-only landlords –landlords who wish to self-manage their own tenancies – can now take advantage of a brand new service launched by Perry Bishop Lettings called Let Assist.

Ensuring landlords stay on the right side of the law by providing professional assistance with all legislative requirements, Let Assist not only enables landlords to enjoy peace of mind but also offers the following added benefits:

• Annual Rent Review
• Annual Property Inspection
• Annual Property Valuation

For further information please get in touch with Perry Bishop’s lettings team

Thousands of people have welcomed furry friends into their lives since the start of the pandemic, but many renters have long been excluded from pet ownership, with just 7% of landlords currently offering pet-friendly properties. New government guidance, however, will potentially make it easier for renters in England to have pets.

The government has updated its model tenancy agreement to include consent for tenants to have pets. In practice, this means that landlords who use the standard agreement for rented properties won’t be able to issue blanket bans on their tenants having pets. Instead, they’ll need to object in writing within 28 days of the tenant making a ‘pet request’ and provide a good reason for turning down the request. The government says it has made the change because just 7% of landlords currently offer pet-friendly properties. Housing minister Christopher Pincher said: ‘It can’t be right that only a tiny fraction of landlords advertise pet-friendly properties, and in some cases people have had to give up their beloved pets in order to find somewhere to live. ‘[These changes] strike the right balance between helping more people find a home that’s right for them and their pet while ensuring landlords’ properties are safeguarded against inappropriate or badly behaved pets.’

How does the model tenancy agreement work?

The model tenancy agreement is the government’s recommended contract for landlords letting out their properties in England. It’s important to point out that the model agreement isn’t compulsory, so landlords who draw up their own tenancy agreements or use different templates for their contracts will still be able to reject pets out of hand. Landlords who do use the model agreement will only be able to object against tenants having pets for good reasons – for example in smaller flats where owning a large pet could be considered impractical. The government says it is protecting landlords by requiring that tenants have a legal duty to repair or cover the cost of any damage to the property.

Since the Tenant Fees Act 2019 came into force on 1 June 2019 landlords and letting agents in England are only able to take a tenancy deposit of up to five weeks rent for the duration of the tenancy.

Rent can be increased to replace a Pet Premium on the Tenancy Deposit as long as it is advertised correctly.

For any questions regarding renting with pets please contact Perry Bishop’s lettings team.

Regulations

New regulations were introduced on 1st July 2020  for all new tenancies. From 1st April 2021 these regulations will come into force for all existing tenancies. These regulations set new standards of electrical safety as well as legal requirements on the service of documents to relevant people. It is the landlord’s responsibility to meet these requirements and also make sure that all electrical appliances left at the property are safe to use.

All landlords should make every effort to abide by the rules, provided that this can be done in line with guidance on working in people’s homes during Coronavirus.

Requirements

Landlords must ensure every fixed electrical installation is inspected and tested at least every five years by a qualified person. The Regulations also state that a landlord is required to obtain a report of the results of the inspection and test, supply it to each tenant within 28 days and retain a copy until the next inspection is due.

The following must also be noted:

• Upon request, the report must be provided to the local housing authority within 7 days.
• The private landlord must supply a copy of the last report to any new tenant before occupation, or any prospective tenant within 28 days of a request from the prospective tenant.
• The Regulations require local housing authorities to enforce the rules and they have the power to arrange remedial action.

Penalties

Proven breaches of the Regulations can result in the local housing authority imposing a financial penalty of up to £30,000

Appliance Testing

Whilst the above regulations do not cover electrical appliances, where a landlord provides an electrical appliance as part of a tenancy, the law expects the appliance will be maintained in a safe condition that will not cause harm to the tenant. Failure to do so could lead to the landlord being sued for negligence. With this in mind, a PAT (portable appliance testing) is always best practice for landlords but it is not a legal requirement.

For further information please contact Perry Bishop’s lettings team.

Good news for sellers. Rightmove’s monthly House Price Index – published yesterday – reveals the greatest excess of demand over supply over the past ten years, pushing up the average price of property coming to market by 0.8%, +£2,484 this month (1.5% in the South West, 1.7% in the South East).

Reporting too a daily average of over seven million visits to Rightmove in February – 40% up on February 2020 – and the number of sales agreed for the first week in March up 12% on the prior year, now really is a great time to bring your property to market.

Read the full House Price Index here.

Thinking about a move? Book your free valuation now with your local branch of Perry Bishop.

Ian Perry, Consultant Chartered Surveyor and co-founder of Perry Bishop, spells out the Government’s latest response to unsafe cladding.

Leasehold property has come under the spotlight in recent months, with new legislation being introduced to tackle the issue of dangerous cladding – in the wake of the Grenfell Tower tragedy. The latest announcement from the Housing Minister Robert Jenrick is that the Government will cover the costs of replacing dangerous cladding on any building over 18 metres in height. Unfortunately, however, no further funds will be forthcoming for any other defects which might be revealed when the defective cladding is first removed.

Buildings below 18 metres in height will not be covered by the cladding fund. Instead, owners will be able to take out long-term low-interest loans for the cost of their repairs, underwritten by the Government, with repayments capped at £50 per month.

Clearly it is a high priority for anyone in a building with unsafe cladding to have this replaced as quickly as possible. Residents of affected flats have faced eye-watering rises in their insurance premiums – up by more than a staggering 1000% in some instances.

Those looking to purchase or sell a flat within a purpose-built block are discovering too that certain lending institutions are insisting on the provision of an EWS-1 Fire Safety Certificate before they will lend on a flat, even within a modest development. In many cases these are not necessary. The Royal Institution of Chartered Surveyors has just issued a guidance note on this matter with many ‘worked examples’ of when a Certificate might be necessary.

Our advice to anyone living in a flat development and looking to move is that they should speak to their management company and ask whether an EWS-1 certificate is appropriate or has been obtained. These can take some time to obtain and we have already seen potential sales flounder due to the absence of a Certificate.

If you have any questions regarding this issue, please do not hesitate to contact Ian Perry, the region’s go-to expert for issues pertaining to leaseholds.

ianperry@perrybishop.co.uk
01242 246980 – Cheltenham
01285 655355 – Cirencester

Last year was one that most of us will probably wish to forget. However, the roadmap out of lockdown together with the successful roll out of the vaccination programme point to brighter days ahead and finally a return to a more normal way of life.

Spending so much time at home has brought into sharp focus our current living arrangements. Outside space and an office for home-working have topped the wishlists for many now looking to move. More room for the kids, a move closer to extended family and an exodus from the cities have also resulted in a very busy property market, particularly in our part of the country.

If you’re considering a move this year, we’re here to help. Enjoy moving with an agency you can trust – we appear in the Best Estate Agent Guide 2021, compiled by The Property Academy and Rightmove.

Start the ball rolling by booking your FREE valuation.

We look forward to helping you with your next move.

Good news for those in the process of buying a house or looking to get their foot on the first rung of the property ladder. Today the Government announced an extension to the Stamp Duty Holiday until the end of June 2021. All sales completing by this date will benefit from the stamp duty holiday on the first £500,000 of the purchase price.

We were really pleased to learn that this tax holiday will then be tapered until the end of September 2021 with no stamp duty paid on the first £250,000 for sales completing by this date.

This is welcome news for anyone looking to buy or sell in the next few months and ensures the already healthy property market will be kept busy throughout the year. Sales have been strong across all our offices since the summer of 2020 and have so far this year, outstripped supply. We now expect to see many more homes brought to the market to not only satisfy local demand, but also the sustained interest from buyers looking to migrate from cities across the south of England.

Chancellor Rishi Sunak did not stop there, but went on to announce support for first time buyers with a mortgage guarantee scheme for those able to save up to a 5% deposit. Some of the biggest mortgage lenders are now launching 95% mortgage products to the market. We expect to see increased demand at the lower end of the market.

Perry Bishop’s Residential Director, Sarah Benson, responds to Chancellor Rishi Sunak budget. Watch now.

Whilst current stock levels are low the market favours those looking to sell so this spring really is the perfect time to sell.

Whether you’re a seasoned landlord, have just purchased your first buy-to-let property or are simply looking to rent out your home temporarily whilst you are living elsewhere, Perry Bishop’s lettings service is becoming the agency of choice in our region.

Perry Bishop’s lettings service helps landlords attract the best and most reliable tenants and achieve maximum rental income. Others in the sector frequently let landlords down – delivering poor quality marketing and inferior customer service, resulting in problems with securing the right tenants and leaving landlords with long costly void periods. At Perry Bishop, however, we believe passionately that whether you’re selling or letting your property you should enjoy exceptional marketing and customer service. We have developed a tailored marketing strategy for lettings which works and one which delights landlords across Gloucestershire, Oxfordshire and Wiltshire.

When you are next reviewing your agency arrangements or if you’re currently managing your rental property/properties yourself but are now looking to entrust your portfolio with a reputable local agency, we would love to talk to you. We have launched two enticing introductory offers for landlords who choose either our Classic or Enhanced management service:

Portfolio landlords (with 3 or more properties)
6 Months FREE management

Landlords with 1 or 2 properties
3 Months FREE management

Here are just some of the reasons why landlords enjoy letting with us:

• All of our rental properties are professionally photographed and floorplans drawn up before going on the market
• Landlords benefit from extensive marketing across our regional branch network, as well as exposure in our London office
• Landlords know they are in safe hands – Perry Bishop have been helping people on the move for several years and for the last two years have been named one of the best agencies in the country, listed in the Best Estate Agent Guide (compiled by The Property Academy and Rightmove)
• Your property will be advertised on Rightmove, Zoopla and OnTheMarket.com
• Your property details will be shared with everyone on our large tenant database
• Your property will be promoted across our popular social media channels
• The Perry Bishop portal enables you to track the status of your property 24/7, both during the marketing phase and after your tenants have moved in.
• A dedicated investment section on our website helps you grow your portfolio
• Receive regular updates on lettings legislation plus an invitation to our annual lettings seminar, featuring expert speakers from associated disciplines

Does your current agency offer all of the above? If you’re managing your own properties, are you starting to feel hampered by the raft of recent government legislation and now want to entrust your portfolio with an agency that can ensure you comply?

Please contact your nearest branch of Perry Bishop to talk through our various service options and hear why people enjoy working with us.
Trust us to care for your investment. We look forward to helping you.