Why landlords must get themselves in gear for Right to Rent

Your minds may be awash with all things Christmas, but post-festivities, one of the biggest things that will be on landlords' minds will be ensuring that they are ready for the Right to Rent scheme.

Part of the Immigration Act 2014, the Right to Rent scheme – which requires landlords or their agents to check the immigration status of prospective tenants – was originally implemented across the West Midlands.

After this initial pilot project, the government announced in October that the scheme will be rolled out nationwide, meaning landlords in southern UK locations such as Portsmouth and Southampton, which estate and letting agent Chimneypots Estate Agents operate in, will have to comply.

Right to Rent requires landlords or their letting agents to check the immigration status of any adult who is about to or is currently living in one of the landlord’s rental properties.

The purpose of the scheme is to ensure that all tenants are authorised to rent in the UK. Ways of checking the tenants vary, but a passport, birth certificate or an identity card are likely to be the most common identification documents used.

This new law is set to come into force on February 1^st, and applies to all residential tenancies. It’s important for landlords to be aware not only of the adults living in the property, but to be wary of any children who could be about to turn 18 and therefore become classed as an adult living in the property. 

At the moment, February 1st may seem way off. However, landlords are being advised that checks begin to be completed 28 days before the February deadline to allow for any hiccups.

Therefore, ensuring you implement the checks into your routine within good time should be your number one New Year's resolution. Getting the right documents and making sure that they are verified and that you have copies takes time, so get cracking!

Failure to complete these crucial checks won’t just lead to a slap on the wrist, either. There will be serious consequences for landlords that don’t comply. Any offending landlords could receive a fine of up to £3,000 per illegal tenant living in their property. For repeat offenders, criminal action may also be taken.

When letting a property is done well, it’s a highly profitable venture; so ensure you don’t lose out by failing to complete these checks accurately.

A lot of responsibility now lies with landlords, and if this sounds like a lot of extra work then don’t fear. Landlords are able to hand the responsibility of the Right to Rent checks over to their local letting agent such as Chimneypots.

If this is something that interests you, it’s crucial that a written agreement is constructed between the two parties so that the area of responsibility is crystal clear.

At Chimneypots, we’re a team of property experts who are skilled in obtaining this kind of data quickly and accurately. If you would like us to take charge of this part of the rental process, then get in touch with us today.

If you have any questions regarding any part of the letting process, then we’re also on-hand to help.

We also offer landlords the chance to find out just how much rent they could earn from their property with our free instant online valuation, try it today! 

http://chimneypotsestateagent.co.uk/why-landlords-must-get-themselves-in-gear-for-right-to-rent/

What does the Autumn Statement mean for property sellers in Southampton and Portsmouth?

Last month’s Autumn Statement contained a number of revelations, not least for the property industry. Just like last year, stamp duty took centre stage from a property perspective with Chancellor George Osborne announcing that there would be a 3% increase in stamp duty for buy-to-let investors and second home buyers.

This comes hot on the heels of Osborne’s announcement in July’s Budget that buy-to-let investors would be hit with higher taxes. These changes to buy-to-let mortgage interest relief are set to be phased in over the next few years, with this additional increase in stamp duty implemented from April 2016.

The Chancellor insists that the new system will contribute approximately £1 billion to the Treasury by 2021. The money will be subsequently reinvested into the government’s plans to build hundreds of thousands of new homes as well as its proposals to extend Right to Buy to housing association tenants.

The other main property-related news to come from the Autumn Statement was confirmation of the government’s extensive housebuilding programme. Some £4 billion will be ploughed into 135,000 new Help to Buy: Shared Ownership homes, in a continuation of the government’s flagship scheme from their first term.

In addition, £2 billion will be directed towards property developers to help fund the Starter Homes programme. This initiative will see the creation of new homes specifically for first-time buyers, who will be granted a 20% price discount against current market rates.   

Lastly, the government says it will put £200 million towards the funding of 10,000 new homes, homes that tenants will be able to live in for up to five years paying sub-market rents. These tenants will then have first dibs on buying the property in future.

But what do all these changes mean for sellers? With investors and second home buyers thinking twice about buying because of higher stamp duty, first and second time buyers may be more encouraged by their prospects of purchasing in a less crowded market. Also, with an emphasis on starter homes and affordability, first-time buyers are one demographic that is being heavily targeted by the government.

As a seller in Southampton or Portsmouth, you could potentially take advantage of this fact by tailoring your home towards first and second time buyers.

Furthermore, investors will be eager to push through transactions before the higher stamp duty charges come into play on April 1 next year. This, again, is positive news for sellers. Buyers who are looking to force through sales quickly are a dream for sellers, because they’re less likely to stall and play hardball on negotiations. This means house sales going through much more quickly and the chances of you achieving your asking price or above much higher.

In Southampton and Portsmouth, we frequently see buyers who are priced out of the city heading for the South Coast for more affordable housing. This doesn’t look like changing, despite the measures announced in the Autumn Statement, so sellers in these areas should be confident of continued high demand.

Buy-to-let investors in this part of the world will be looking to act early as well, so sellers should make sure they are well prepared in terms of their sales strategy, their marketing material and the presentation of their homes as attractive, clean, homely and welcoming.

At ChimneyPots we’ll do all we can to help you get your property sold. Check out our tips on selling a home for more info on how we can do that.   

If you would like to get in contact with us, please call 01489 584298. To find out how much your property could be worth in the current marketplace, check out our free instant online valuation tool.

http://chimneypotsestateagent.co.uk/what-does-the-autumn-statement-mean-for-property-sellers-in-southampton-and-portsmouth/