|Martin & Co Hinckley Office|
99-109 Castle Street, Hinckley, Leicestershire, LE10 1DA
Welcome to our January 2017 Newsletter
“Happy New Year!!
Hello, and here we are entering a brand New Year. Looking ahead, we think it’s going to be an interesting year. Brexit will be officially started with the implementation of Article 50, the new Landlord income tax ratios take effect, and of course the banning of tenant fees. Challenging, and we relish it! Of course, we will continue to provide an excellent service for Sales and Lettings.
If you are thinking of moving, or renting out a property call
Martin & Co on 01455 636349 or email Hinckley@martinco.com
With New Year there are usually many forecasts and predictions for the year ahead. Here’s a selection from various sources and we’ll compare at the end of the year to see if they are correct!
Britain’s biggest mortgage lender said annual house price growth will be between one and four per cent by the end of next year. That compares to a peak of 10 per cent recorded in March this year. It says the relatively wide range for its estimation ‘reflects the higher than normal degree of uncertainty regarding the prospects for the UK economy next year’.
UK Economic Outlook: Looking at the regional picture, we expect Brexit will affect the London market more severely than other parts of the UK. London has a greater share of international buyers and residents. The Brexit vote is likely to lead to a significant dip in UK house price growth over the next few years.
House prices are predicted to rise across the whole of the UK in 2017 with an average increase of 3%. East Anglia is likely to continue its trend from 2016 and alongside the North West and West Midlands is likely to record gains higher than the national average. Meanwhile, prices in Central London look set to stabilise after recent declines, with support provided by the weaker exchange rate encouraging foreign buyers.
What do we think? Well, it’ll be a difficult one to predict because of the uncertainty economically. However, with lending criteria being tight as it is, Landlords being hit hard with stamp duty and income tax thresholds, and the “Brexit” effect, we think prices will level out this year. Landlords will continue to sell and the first time buyers will continue to purchase, but the stock levels will remain low compared to previous years and prices will remain static.
Good news! Stacey Padfield (our Property manager) returns this month from her maternity leave.
We wish her well and look forward to her being back and making her valuable contribution to the business.
More than half of landlords are planning to purchase further buy-to-lets through limited companies, Mortgages for Business has found. The broker’s latest Property Investor Survey found that 54% would opt for the incorporated route when making purchases while 16% said they would do it as an individual. The data comes ahead of the impending rolling back of mortgage interest relief from April 2017 for individual landlords. The poll of 283 landlords found 60% would be directly affected by income tax relief changes, while 29% said they would not be, and 11% still didn’t know if the changes would affect them directly. David Whittaker, chief executive of Mortgages for Business, said: “The percentages feel about right for the market in general and it’s certainly been a tough 18 months or so for landlords, so it’s encouraging to learn that the majority are getting to grips with changes that will dramatically alter the way they operate. “We are still encouraging landlords who haven’t already taken professional advice on the matter to do so ASAP, as some may find that the new formula will tip them into the next tax bracket leaving them worse off. “The new regime starts in April, so there’s not much time left to make strategic decisions and take action.”
Our Sales fixed fee of £600 including VAT was a success in 2016. How did we compare to other agents locally?
…and we had a good year for Lettings (Information courtesy of Rightmove)
Ok. I’ll admit it. And it pains me to say… Here goes…….. I own a letting agency and I make…… I can’t bring myself to say it…go on then…… “I own a letting agency and I make a profit”!!! There, I have said it out loud. “I make a profit”… Wait a minute, why am I so ashamed to say that out loud? Every other business in the entire world works for profit – don’t they? (Charities, not for profit etc etc excluded) That’s why we are in business! It’s not a dirty word, so why do people keep mentioning how much things cost us as if that should be the price they pay? I’ve never seen shoppers lobbying outside ASDA because ASDA buys a pack of peppers for 16p and sells them for £1.45!!! Surely ASDA should let you have them at cost? And what do I do with my profit? Well, I clothe and feed my family. I put a roof over their heads, and occasionally I spoil them with holidays to compensate for the 80 hours a week I work. More importantly, we offer a fantastic and professional service to our tenants who rent from us time and time again. The same tenants who are more than happy to leave us testimonials on our website and also social media. Just as important, some of those monies employ six members of staff, and local contractors who are all very happy in their jobs which are helping them to look after their families too. My final point is this; what is never mentioned in the media is that tenants can quite easily rent without using an agent anyway, and therefore not pay any fees. It’s called Gumtree and alike. So, if the tenant wants to meet a complete stranger (in the hope that they actually own the house they are advertising), and the tenant wants to hand over their money to said stranger, and then on moving in day, also hope that there are not another 20 people at the house (all also having left deposits), then good for them! Even if the stranger is the owner and they do move in, they should also trust that the house is safe to live in with all the relevant checks having been completed. All this, and more can be offered free of charge to the tenant! Bless em…
Tenants do have a choice, and most fortunately see the value of using reputable licenced ARLA agents. Professionals who look after the interests of Landlords AND tenants, who ensure that the condition of the property is recorded correctly prior to moving in, and deposits are paid into a custodial scheme…I can go on, and on…
I have heard people say “why are so many people signing petitions to get fees banned if they are value for money?”
Well, if I put a petition on the Government website campaigning for FREE ice cream, who wouldn’t sign it??!! Steve