Annual musings

Well quite frankly where do I start….?!

Having looked back over the 15 newsletters sent to clients this year it is frankly staggering the amount of change and information that has had to be conveyed to ensure the smooth running of our business and our clients properties. 

I am immensely proud of the team with how we have continued to provide a seamless service to our clients during this ‘year of all years’.

We have had not just the Covid-19 legislation to read, understand (ha!!), implement and comply with but also further changes with the laws of the lettings industry itself.  These have created huge challenges – not least the electrical safety standards legislation – during a time when access to properties, and contractor time, is difficult to come by because of the changing nature of the various Covid-19 measures. 

I have to also thank several other businesses as we could not have carried on so seamlessly without them;

• Our partners at RDA Estates, who facilitate the purchase and management of investment properties for, mainly, overseas investors.  If you ever need assistance in growing your own property portfolio please ask me for an introduction as they have a wealth of experience.

• Our IT providers; Support Desk.  It is fair to say that without their assistance we would not have been able to pivot so successfully without any disruption to our daily activities.

• Jen Wallace of JooJoo Creative who deals with our marketing and on line presence and helps me make my newsletters look so pretty!!

• Finally the contractors who have to a man, and woman, dealt with maintenance reported as swiftly as access, and the availability of materials, allowed.

It goes without saying, but I will say it again and again, that our biggest thanks goes to our clients this year, and all years.  We have never, nor will ever, take any of our business for granted.

Whilst there was of course a real dip during the initial UK lockdown it was as if the floodgates had opened once it was relaxed and properties have been taken from virtual viewings and tenancies signed remotely with applicants only coming to the office to collect keys and to carry out Right to Rent checks.  I have to say that I do think bigger agencies will wish for this to carry on due to costs but I actually like my staff to meet and get a relationship with the tenants who are moving into our clients properties.  In fact I like people full stop and lettings and property management, in my opinion, is an industry that deals with people by and large so I long for the days when tenants come back to our offices to ‘check in’.

This brings me on to what I think the future holds for the lettings and property management industry.

I think we are certainly going to see more localised, and possibly national, lockdowns in the coming months which will obviously impact all economies and could have further impacts on tenants abilities to pay rent.  We have taken a human approach and, as we are an agency that has experience of Universal Credit, are well placed to advise our clients as to what is possible if there are issues. 

It is vital that you have good communications with your clients, and their tenants, as you can only hope to address financial problems if you do.  A kind and compassionate agent, in my view, will have much greater success in dealing with rent arrears by tenants than one who threatens and adds pressure to already difficult circumstances.  It is a fine line as tenants also need to be aware that unless stated rent will accrue as an arrear and will have to be paid back.

In 2021 the UK Government is going to have to give some consideration to landlords who, currently, could be over 6 months in arrears, with a mortgage, who has a disruptive tenant and have very little hope of obtaining possession quickly.  As I say a fine line…

Energy efficiency will also continue to have an impact on the sector.  By 2025 it is mooted that any new tenancy may well have to be at a minimum rating of ‘C’ or above and this would encompass all existing tenancies by 2028.  The current level is set at ‘E’ and above and I have to say that many of the energy assessors I have spoken to are somewhat sceptical as to whether many of the properties in the UK will comply with this rating level.  The Government is currently finishing its consultation exercise and so we ca expect an announcement shortly.

I think that the UK Government, at some point after this crisis has passed, will look further at eviction processes by removing the use of section 21 notices as this was included in the Queens speech some time ago.   I would think that if the above does happen tenancy terms will be made longer giving less rights for no fault possession to the landlord but perhaps putting more onus on carrying out improvements to the tenant.   This is seen as somewhat of a negative currently but actually I see this as a positive for the long term investor.  What could be better than having a guaranteed tenant for a number of years who has a legal obligation to upkeep the property?!

People will continue to need places to live and their ability to save for a deposit to purchase will undoubtedly be made that much harder due to the economic reality we are facing.  This should mean that property remains an attractive investment opportunity so long as you are aware of the myriad pieces of legislation that governs the sector.  I cannot stress enough that a good agent can save you thousands of £’s from compliance alone.  I might just know a good one if you are in need?! Ha Ha!

I will end by wishing you all the very best wherever you are reading this and with a quote I read on social media recently;

Before I agree to 2021 I would like to see the bloody terms and conditions!!