Length of Tenancies on Five year High

A new report reveals that the average length of tenancies has increased by 300% over the last two years, from 16 months in 2014 to four years in 2016.

Government figures show that the average length of residence for private sector tenants is up from three and a half years last year, to a new five-year high. The RLA is continuing to press the government to remove barriers to longer term tenancies, including restrictions imposed on landlords by lenders and by freeholders of leases.

However, while longer tenancies may be a good thing for tenants, landlords are out of pocket to the tune of over £5 billion every year because of damage to property and unpaid rent. Damage to landlords’ property sees them fork out an incredible £4.5 billion. (Source: Access Legal Survey, 2015).

According to Jax Kneppers, founder and CEO of Imfuna, landlords appear to be supporting tenants with longer leases, but it comes at a cost. “Property damage and ‘wear and tear’ are big issues in the property over a longer tenancy period.  The longer a tenant stays in a property, the more likely it is that the property will be subject to wear and tear.  When this occurs, a landlord may decide to hold onto the deposit in order to cover the cost of repairs, redecoration and cleaning bills at the end of a long-term tenancy.

“Damage and fair wear and tear needs to be independently and expertly assessed in order to provide solid grounds for any charges raised against the tenant. Clearly landlords and tenants have different expectations when it comes to fair wear and tear issues. However, if landlords wish to avoid the hassle of arguments over who is responsible for damage, they need to prepare a thorough inventory of the condition of the property that details the condition of everything in it.

“Our inventory software ensures landlords and agents have a bulletproof inventory that records the property check-in condition status. The software provides a side-by-side comparison report which clearly demonstrates any change in condition of the property, illustrated with date and time stamped photographs.

“The software also gives landlords and lettings agents all the necessary property maintenance and repair costs for damage that are found during inspections. This allows landlords and agents to have a dialogue with the tenants over any repair costs that are found to be the tenant’s responsibility. It also presents landlords and agents with all the facts so they are able to make decisions on whether they want to delay repairs or carry out them quickly.”

Howard Lester, Director of Balgores Property Group comments “We have seen the length of tenancies in Essex rise by over 100% over the last three years. This has been largely due to the changing nature of tenants, with many making the conscious decision to rent rather than buy. Whilst this has obviously been good news for our landlords, it has meant the quality of the inventory at the beginning of the tenancy has become much more important, with the need to prove the difference between wear and tear and damage becoming paramount.

“Obviously, there is a distinct difference between fair wear and tear and actual damage – for example carpet tread will flatten over time where there has been foot traffic, but cigarette burns, stains or soiling will require a charge.”

Imfuna has put together some advice on what ‘wear and tear’ should be covered by the landlord and the tenant:

The Landlord:

-The landlord should expect to emulsion walls and ceilings every 3-5 years.

- Everything in a property has a limited lifespan. A landlord must expect to have to renew things following a long tenancy, eg. every year a landlord may need to renew things such as inexpensive door mats, plastic or cheap wooden kitchen ware, ironing board covers, lightweight chopping boards, oven gloves, cheap saucepans and paper lampshades. Replacing bath sealant also falls under a landlord’s maintenance issue after a tenancy of one year or longer. Every three years renewals for landlords would cover things such as polycotton bed linen, mattress and pillow covers, duvets, metal colanders, inexpensive kitchen bins, barbeque tools and indoor clothes airers.

-Some things should be treated as ‘expendable’ if they are missing or damaged after a long tenancy, items such as plastic toilet brushes, inexpensive pillows and mattress protectors, flower arrangements, plastic shower curtains, house plants, plastic & wooden kitchen utensils.

The Tenant:

-Should remember than if something can be cleaned it should be. Cleaning issues are never treated as wear and tear.

-The property, its contents and any exterior areas must be maintained to the standard as listed on the inventory as the start of the tenancy. A few minor marks to walls will be deemed wear and tear, but heavy marks will incur a penalty.

-If items are broken or light bulbs blown these will need to be replaced before moving out. It will be more expensive if an agent or landlord has to arrange outside contractors to attend the property.

-Furniture damage – a few minor scratches to a table top or light wear to corners could be deemed wear and tear.  Heat marks and water marks caused by tenant negligence will be deemed as damage and therefore a chargeable issue.

The Imfuna Let app embraces the core skills of the inventory inspection routine and dramatically enhances the end product to produce a fast, reliable, professional report that, if needed, will stand up in court. Imfuna Let provides simple deposit scheme compliance, comprehensive property inspection data, transcribed dictations from your mobile device, fully customised branded reports, and a property report history available 24/7.

Imfuna Let automates the reporting process and reduces the overall process from property data capture to report generation by up to 75%. Imfuna Let can be used on current Apple or Android devices. Technology you can depend on.

Embrace the ‘Power of Digital’ in 2016 : Free Trial at www.imfuna.com/let-uk/

Why your kitchen is vital when selling your home

When it comes to selling your home, every room is important and every part of your property plays a role. But there are certain standout rooms that are likely to appeal to buyers more than any other. In many cases, this will be the kitchen.

All the polls and surveys suggest the kitchen is now the most important room in the home, further buoyed by the foodie revolution that has swept through Britain in recent years.

 

You only need to look at the number of cookery shows on TV – Masterchef, Great British Bake Off, the Hairy Bikers, Saturday Kitchen, et al – and the number of farmers markets and street food festivals springing up across the UK to see how importantly we now take all things culinary. 

For many people, the kitchen has become the centrepiece of the home; the place to cook, bake, eat, drink and socialise. It could even be a place to watch TV or for the kids to do their homework.

  

As a result of this, eagle-eyed buyers are likely to pay extra special attention to the kitchen when they come to view your property. 

Naturally, then, you want your kitchen to look its absolute best. Whether yours is shiny and contemporary, or rugged and rustic, it needs to be in tip-top shape.

Different demographics might be looking for slightly different things. Young professionals, for example, might prefer a kitchen that is a bit more sleek and glossy, while families might prefer one that looks a bit more homely – a place for making homemade pizzas and cookies with the kids, for example. 

It is, of course, impossible to please everyone or to turn your kitchen into something it’s not, but making sure it appeals to as wide a range of buyers as possible will do your chances of selling no harm.

In general, less is more when it comes to kitchens. People don’t want too much clutter or mess in an area where they will be whipping up their best creations. Space will be another key feature. If your kitchen has plenty of it, shine a light on this.

Even if your kitchen happens to be on the smaller side, you can still be inventive and innovative when it comes to making best use of the space you do possess. In some cases, of course, a smaller, more intimate space will have significant appeal – so sellers shouldn’t be under the mistaken belief that a smaller kitchen is a negative. If your kitchen looks the business, buyers will be attracted to it, no matter what the size.

Again, generally speaking, quirky, out-there, eccentric kitchens won’t have as broad an appeal. Keeping things minimalist, functional, clean and tidy – and letting the kitchen speak for itself – is better than trying too hard to impress. 

Whether you carry out the viewing yourself or get your estate agent to do it on your behalf, it may be a canny move to show prospective buyers the kitchen first (so it’s the first impression they get of your home). Equally, you may want to make it the last room they visit, so it stays fresh in their memories.

Either way, your kitchen is likely to be one of the main weapons in your sales armoury and you shouldn’t underestimate its importance to buyers. 

Do everything you can to make your kitchen look as good as possible and it will certainly improve your prospects of an offer being lodged.

With the UK increasingly becoming a nation of foodies, failure by sellers to tap into this could prove troublesome.

Here at Balgores Property Group we will do all we can to get your property sold. We have a number of branches across Essex and Kent, from Romford and Hornchurch to Basildon and Brentwood. 

To find out how much your property could be worth at current market prices, check out our free and instant valuation tool.     

Property Market Buoyant in Essex Despite Brexit

Despite the stamp duty rise in April and more recently Brexit, the Essex property market remains buoyant, according to new research from Balgores Property Group.

New instructions are up by an average of 12% for March-June 2016 compared with the previous quarter. Hornchurch has seen the largest hike in new instructions, up by 19% followed by Basildon up by 15%, Upminster up by 12%, Chelmsford up by 9% and Brentwood up by 4%. In contrast, Romford recorded a 5% drop in instructions. Balgores’ research also shows that sales are also mirroring the rise in instructions.

Martin Gibbon, a Fellow of the National Association of Estate Agents and Group Director of Balgores Property Group comments: “It is encouraging to see this boost in instructions, despite the additional stamp duty charge for investors, introduced in April and the uncertainty surrounding Brexit. In fact, our instructions are on par with the normal seasonal uplift and July has started in much the same way as June.

“We certainly have seen no indication of doom and gloom in Essex and Kent. The reality is that for many homeowners and buyers, day-to-day life goes on and the desire to sell a property and up or downsize, doesn’t appear to be hindered by the current political landscape.

For further information, contact your local office or visit www.balgoresproperty.co.uk.

Why sellers need to get the odd jobs done

To give yourself the best of chance of selling your home, it’s absolutely vital that your property looks in tip-top condition, soaring above the competition and standing out for all the right reasons.

If your home is in as fine nick as it possibly can be, it stands to reason that your chances of selling automatically go up. This means that those odd jobs that you’ve been putting off for a rainy day need to be completed before anyone views your home. After all, a home that has missing lightbulbs, broken handles and crooked shelves will only serve to put off eagle-aged prospective buyers.

To make sure your home is looking ship shape, Balgores Property Group has taken a look at the areas of your property that might be in most need of some loving care and attention.

The garden

Right now, of course, is the time of year when your garden is more important than ever. Granted, the weather isn’t exactly playing ball at the minute, but the opportunities to sit outside and enjoy the sunshine are becoming much more frequent. Would-be buyers are likely to scrutinise your garden closely, especially if they are young professionals or parents with young children. In the case of these demographics, the garden could have a very big say in their final decision.

Gardens are also often where jobs are left half-finished or put off completely. So, whether it’s mowing the lawn, pruning the flowers, tending to the plants or jet-washing the patio, make sure these jobs get done before buyers come to view. If you have a BBQ area or a part of your garden that is particularly child-friendly, make sure it looks spic and span and show it off to buyers as much as you can.

The kitchen

This room regularly tops polls as the most important room in a house. As a result of this, making sure your kitchen looks at its absolute best is absolutely crucial – it is, after all, the room that buyers are likely to focus most closely on.

It doesn’t take much to ensure that your kitchen is attractive and welcoming. Wipe all surfaces down thoroughly, make sure that all fixtures and fittings are in fine working order and that there are no broken handles, taps or creaky doors.

Whether your kitchen is uber modern or a more rustic affair, show it off in its best light. It could just make the difference to buyers who are on the fence about a purchase.

The bathroom

Contemporary, well-furnished, chic and stylish bathrooms – the like of which you see in boutique or high-end hotel rooms – tend to be very popular among buyers in this day and age. Would-be buyers will expect the bathroom to be both functional and sophisticated, which means that things like carpet flooring – a popular trend in the 70s and 80s, but a big no-no now – will have very little appeal. If you have this in place, it would be well worth your while getting it replaced with something like laminate, slate or waterproof vinyl flooring instead.

Things like chrome towel rails are also very trendy – and don’t cost much to install – while if your bathroom tiles are looking a little tired and shabby, it may be worth getting these replaced too.

Like with the kitchen, it’s vitally important your bathroom looks as clean, gleaming and aesthetically pleasing as it possibly can. You can rest assured that buyers will leave no stone unturned, so don’t give them any reasons to be deterred.

The odds and ends

There are some things that might be easily overlooked – a missing bulb in the dining room, unclean window sills in the lounge, dirty net curtains in the master bedroom, a broken chair in the kitchen – that will need to be completed to ensure your home looks the real deal. Such jobs might sound trivial, but eagle-eyed buyers will be on the hunt for any flaws – it makes no sense to give them any free ammunition.

At Balgores, we have many branches across Essex and Kent. To find out more, please get in contact with us at one of our many offices, from Romford to Hornchurch.

If you would like an idea of how much your property could be worth in the current marketplace, you can check out our free and instant online valuation tool.  

First Time Buyer Property Prices Leap by 19% In Essex

The average asking price of a typical first-time buyer home in the Essex has leapt by 19% year- on-year and is now sitting at an average of £295,186 according to a new report from Balgores Property Group.
Over the last 12 months, Basildon has seen the largest hike in first time buyers up 36%, followed by Romford up by 26%, Brentwood up by 25%, Chelmsford up by 11%, Hornchurch up by 8% and Upminster up by 7%.

The cost of a first-time buyer home is Essex is much higher than the national average, which was sitting at £194,224* in May 2016. (* Source: Rightmove Data, May 2016).

Martin Gibbon, a Fellow of the National Association of Estate Agents and Group Director of Balgores Property Group comments: “We have seen a sharp rise in prices for first time buyer properties across all our offices, with Basildon experiencing a huge hike of 36% year on year.  It will now cost first time buyers an average of £230,833 to buy a property in the town, up £63,333 on 2015 prices.

“Rising prices at the lower end of the market is partly down to strong demand from investors rushing to buy properties, before the introduction of the stamp duty on second homes 286,427in April.    Over the last two months, this has caused a ‘property drought’ for flats and two and three-bed properties, pushing up prices for those homes that were available.

“In hotspots such as Basildon and Romford – within easy commuting distance of central London – there has been a large hike in demand for smaller properties, as more and more professional couples and young families are priced out of London. 

“Basildon is very attractive to first time buyers, with its affordable homes and great transport links into London, with a direct service to Fenchurch Street, taking just over half an hour.

“Basildon also has an excellent Sporting Village, which was originally constructed for the 2012 Olympics and is located in the picturesque Gloucester Park, as well as a good choice of schools and a thriving shopping centre.  Basildon has something for everyone.

“Many commuters are attracted to Romford because of its proximity to London – just 27 minutes to the city and its wide variety of affordable, contemporary and period homes.  The town also offers a vibrant shopping centre, with a mix of high street shops, cafes and a traditional market dating back to C1247.

“There are many new housing developments being built in Romford and this is due to rising demand for property in the town, partly driven by crossrail. Buy-to-let investors have also been heavily investing in the town and this has been driving up prices.

“Brentwood has seen first time buyer prices increase by a quarter over the last 12 months and it’s no surprise that it is so popular.  It is a vibrant town offering a great selection of shops, bars and good restaurants.  In addition, there are good quality state and private schools providing the best in education. Located amongst picturesque Essex countryside, with delightful local parks, Brentwood is an ideal retreat.  The town has convenient access to the city, both by road and train.”

What does the Brexit vote mean for lettings?

Brexit is certainly a shock to the system and one that will no doubt have far reaching ramifications for our industry moving forward. But the more I think about it, the more I actually think the next few months could be a real boom for our sector.

Look at the possible short-term benefits:

-There may well be a real boom in immigration from Europe, before any deal is made. This would in turn mean even more people needing rented property and for landlords, it is likely to produce a further rise in rents
-With an expected nervousness happening in the sales market now could be a great time to be expanding your portfolio.

-People will still need to move and live somewhere and traditionally in times of uncertainty people now look to rent for longer.

-Whilst we do not know exactly what will happen any shrinking in our economy has always seen the rental market grow even stronger.

Britain has a very strong trading history and whilst there seems no doubt we will suffer some short term turmoil and a possible recession, or at least much reduced growth.  However, there seems very little doubt that we will come out the other side. History tells us we always return much stronger and leaner.

In a world of financial turmoil, property has always proven to be a great long term investment and there is no reason to believe this will change.

So is it all bad? I don’t think so when you look at our industry and the way it has grown and matured over the last 10 to 15 years. In actual fact, this should be seen as another opportunity for landlords to expand their portfolios and for the best agents to make sure they are at hand to help  clients through, with balanced and professional support and the advice.

In other words, those of us who are experienced, knowledgeable and experts in our fields, will be the ones that actually see the opportunity and grab it.

For further information, please visit www.balgoresproperty.co.uk