Author: Stephen Kellett

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Understanding The Renters’ (Reform) Bill of 2023: What You Need to Be Aware of – Part 1

 

“Here to get you there: Kellett & Co”

The Renters’ (Reform) Bill has been announced to Parliament, promising to deliver a fairer lettings system for tenants and landlords.

As per the government’s assertion, this Bill represents a “landmark transformation of housing legislation.” Landlords have been closely monitoring the bill’s provisions, as it will enact the following changes:

    • More difficult to evict tenants.

    • Easier for tenants to have pets.

    • It is now illegal for landlords to issue blanket bans on letting to those on benefits

So what is the Renters’ (Reform) Bill?

The idea of a Renters’ (Reform) Bill was first introduced in 2019 by the now Ex-Prime Minister Theresa May but has faced a number of delays, mainly due to the Covid-19 pandemic.

The Bill’s aim is to address what the government described as an ‘imbalance’ between tenants and landlords, providing more security for tenants and improving standards in the Private Rented Sector.

How will the Renters’ (Reform) Bill affect landlords?

The Renters’ (Reform) Bill will affect landlords in a variety of ways, including:

    • The end of fixed term tenancies.

    • The end of blanket bans on tenant specific demographics.

    • Changes to how rents are reviewed and increased notice periods.

    • The end of section 21.

    • The Decent Homes Standard.

    • A landlord portal and a requirement to join a new ombudsman scheme.

    • Changes to landlord grounds for possession.

Goodbye to Section 21 – No More ‘No Fault’ Evictions

The most important change is the removal of section 21, also known as ‘no fault’ evictions.

From now on, all evictions must be based on valid reasons provided by the landlord through a notice under section 8 of the Housing Act 1988.

The structure of section 8 is quite similar, although the grounds for possession outlined in Schedule 2 of the 1988 Act have undergone extensive revision, which requires careful cross-referencing.

Why was this change implemented? According to the government, the abolition of section 21 aims to “empower renters to challenge poor landlords without fear of losing their home.”

This means tenancies will only end if the tenant decides to leave or if the landlord has legitimate reasons for possession under section 8.

What does this mean for landlords? We believe the impact should be minimal. Since only about 6% of tenants are evicted using section 21, this change shouldn’t significantly affect landlords. Moreover, the Bill promises to strengthen grounds for possession and enhance court processes, enabling landlords to swiftly and effectively regain access to their properties when tenants fail to fulfil their obligations and duty of care for the property.

An end of fixed term tenancies

The Bill will abolish all fixed term tenancies, replacing them with periodic agreements right from the start. Under the new rules, tenants will be required to provide landlords with a notice period of two months to end their tenancy, and any notice periods longer than two months will be deemed illegal.

Why was this change introduced? The elimination of fixed term tenancies aims to grant tenants the freedom to give notice at any point during their tenancy, providing them with greater flexibility compared to the current system.

What does this mean for landlords? Landlords will have the option to give tenants a two-month notice if they intend to sell the property or move into it themselves. Notice periods for other reasons, such as anti-social behavior or rent arrears, may vary. If a landlord attempts to establish a fixed term tenancy or issues a notice to quit, they can face penalties imposed by the local authority.

But should landlords be worried? Again we believe there isn’t much cause for concern. When a similar change was implemented in Scotland, it had minimal impact on landlords since moving can be costly. Tenants will need to secure another deposit and arrange their utilities all over again… amongst other reasons.

Renting to tenants with pets

One of the most attention-grabbing aspects is that all tenants will have the right to keep a pet if their landlord agrees. Moreover, consent cannot be unreasonably denied or withheld. Landlords must provide their decision in writing to the tenant within 42 days of the tenant’s request for permission.

Why was this change implemented? The Renters’ (Reform) Bill aims to ensure that landlords cannot unreasonably refuse permission when tenants ask to have a pet. Tenants will also have the ability to contest such refusals, granting them more control over their rental arrangements.

What does this mean for landlords? Landlords now have the option to require tenants to obtain pet insurance. This is positive news for landlords since it means they are not automatically obligated to allow pets.

However, further clarification is necessary, especially regarding properties where pets are prohibited in the headlease or in Houses in Multiple Occupation (HMOs) where the needs of other tenants must be taken into consideration.

Thank you for reading…

As with any introduction of new regulations it may take some time for those changes to be implemented. For example the ‘Private Rented Sector Ombudsman’ will be chosen and approved once it receives the Royal Assent approval.

Stay tuned for Part 2

Why choose Kellett & Co?

Looking to rent your property quickly, easily and cost-effectively? Look no further than your local online estate agency. We can offer monthly management fees from as little as 7% without affecting the service you would normally receive from an agent with an office. In fact, by operating without the overheads that come with a physical office, we’re able to offer our customers the cost savings on the monthly management fee.

Interested? Call today 01772 284898 or email Stephen at lettings@kellettandco.co.uk

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Buy To Let Advice

Considering a buy to let and taking the leap into becoming a landlord? Our buy to let tips provide you with everything you need to know before making your investment.

buy to let advice
“When you want an all-star estate agent think: Kellett & Co”

Be sure you know what investing in a buy to let property involves

Focusing solely on rental income can be tempting, but investing in a buy-to-let property requires a business-oriented mindset. It’s important to consider whether you can comfortably make mortgage payments and handle any potential stress that comes with managing the property yourself. Additionally, it’s wise to analyze the current market conditions and determine whether property values are on the rise. Furthermore, it’s important to decide whether you intend to let the property for the short or long term.

Make sure you understand the tax implications

Although rental income is subject to taxation, landlords are eligible to claim certain expenses as tax deductions. In addition to income tax, landlords are also required to pay stamp duty upon purchasing their property and capital gains tax when selling it. To learn more about the taxation of rental income, landlords can refer to the Property Income Manual, which is published by HMRC

It’s important to familiarise yourself with the legislation for buy-to-let properties.

Landlords have to comply with a wide range of legislation, much of which has changed in recent years, especially relating to tenants’ rights. Keeping up to date with the latest regulations and best practice will make you a better landlord and your properties more attractive to tenants.

  • Electrical safety standards – the new electrical safety regulations came into force in April 2021 and mean landlords have to ensure that all fixed electrical installations and wiring is checked and tested by a qualified electrician. This is more often referred to as a EICR.
  • Right to Rent – landlords need to check if a prospective tenant has the legal right to rent a property in England. This usually means checking passports and ID documentation to confirm a tenant’s immigration status.
  • Eviction rights are changing – reform is promised on issues affecting tenants such as Section 21 notices, so make sure you know the current legislation before preparing a tenancy agreement
  • Gas safety certifciate – prior to moving a tenant in and during the tenancy it is important to keep an up-to-date gas safety certiciate. Kellett & Co can provide this service to ensure you meet your legal obligations and protect your tenants and property with as little fuss as possible.
  • Energy performance certificiate – It is a legal requirement under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. The purpose of the EPC is to assess the energy efficiency of a property and provide recommendations on how to improve its efficiency. This information can help tenants make informed decisions about their energy use and expenses, and can also help landlords identify areas where they can make improvements to save money and reduce their environmental impact.

Consider all the costs including landlord insurance

What will your costs be? As well as your mortgage payments, you will need to cover the following costs:

  • Buildings insurance
  • If your property is furnished you may wish to consider contents insurance too
  • Costs associated with maintenance
  • Periods when you are receiving no rental income because the property is empty or the tenants have fallen behind with their payments
  • Increases in your mortgage repayments due to a rise in interest rates, which you may not be able to recover immediately from rental yields or rent increases

Pick low-maintenance properties

Assessing the condition of a property is essential before making a buy-to-let investment. Well-maintained properties are easier to manage and are generally more in demand than run-down properties. As a result, it may be advisable to consider investing in a newer property if you have limited time or no interest in DIY. By doing so, you can save yourself the hassle of repairs and upkeep, and potentially attract more tenants to your property.

It may be beneficial to consider the use of a lettings agent to oversee the management of your property.

Managing the property yourself can be challenging – you will have to deal with all the maintenance issues and any disputes with tenants. Being on constant call might not be for everyone.

At Kellett & Co we offer a range of lettings packages. Landlords can choose from:

  • Affordable monthly management –  Kellett & Co looks after every aspect of the letting experience
  • Let only – advertising, viewings, reference checks, tenancy paperwork. Landlord would deal with all rent arrears, disputes and maintenance issues
  • Rent only – we will advertise the property, conduct viewings and reference checks on tenants and prepare tenancy agreements. We then only manage the rent received along with providing monthly and annual statements.

Why choose Kellett & Co?

Looking to rent your property quickly, easily and cost-effectively? Look no further than your local online estate agency. We can offer monthly management fees from as little as 7% without affecting the service you would normally receive from an agent with an office. In fact, by operating without the overheads that come with a physical office, we’re able to offer our customers cost savings that we can pass onto them.

Interested? Call today 01772 284898 or email Stephen at lettings@kellettandco.co.uk

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What to do when your home isn’t selling – 8 steps to boost your marketing

You did it: you found an agent you liked, who loved your home and valued it at a price you were happy with. They put together an impressive marketing plan and the ‘For Sale’ board has been invitingly positioned at the end of the drive for a while. It seems like you’ve done everything right, so why hasn’t your home sold yet?

Well, it could be a few different things. Some people believe it comes down to the price – and often that is a reason – but it’s not the only possibility.

So how do you find out what’s stopping your home from selling, and what can you do to kick-start some real interest?

Check out the competition

Before you speak to your estate agent, it’s a good idea to gather some information about what’s going on around you. Have a search online for homes in the area similar to yours and see how they compare. What’s the presentation like and have they had to reduce their price? That should give you an idea of whether your marketing is along the right lines.

Call your agent

Have an honest conversation about your concerns. Ask your agent why they think your home’s not selling and what can be done to get things moving in the right direction.

Find out what people think of your home

Although the expertise of a good agent is invaluable, there’s also nothing quite like a bit of honest feedback. If your agent is on the ball, they should be asking everyone who views your home what they thought about it, then calling you to discuss whether any changes might need to be made to the marketing.

If viewers thought the price was too high, what was the reason? If they thought there was a bit too much work to do, is there something you could fix or improve yourself for very little cost? In short, is there anything you can do to address the feedback that will make your home more attractive to buyers so they start making offers?

Could you improve the presentation?

Have another look at your home with a critical eye and ask yourself if it’s really looking its best. Your agent might already have offered their advice on how to style and present it for viewings, but maybe you could ask a friend to ‘view’ and give you their honest opinion about any positive changes you could make.  

One important thing to think about is: do all the rooms make sense for a buyer? You might have a conservatory that’s become a toy store for your family, but when you’re trying to sell, you’ve got to make every bit of space appear as valuable as possible. So, put away the toys and show the real potential of your conservatory. You could style it as:

  • a sunroom, somewhere perfect for curling up with a book
  • a dining room that makes mealtimes a bit more special
  • even a second sitting room, to give parents and children their own spaces.

Likewise, if you have a small bedroom that you use as a walk-in wardrobe, pack away your clothes and stage it as a single room so that buyers can see exactly what value they’re getting for their money.

While the inside might be sparkling, you’ve got to make sure the outside always creates a great first impression so that buyers feel good about your home before they even walk through the door. Some people do a drive-by before booking an appointment to view inside, so keep on top of your home’s ‘kerb appeal’. Make sure the lawn, shrubs and plants are tidy; sweep the drive and path; give the front door a weekly wipe-down – and don’t forget your ‘For Sale’ board. Check it’s straight and clean, and report any damage to your agent so they can have it replaced.

Refresh your marketing

Are the photos your agent took really showing your home in the best light? Do they grab your attention or could they be improved? Even if they’re already perfect, if your home’s been on the market for a couple of months and the seasons have changed, buyers will be able to see that your exterior shots were taken some time ago.

Having new photos taken is an easy and effective way to reinvigorate your marketing. Go for a bright, sunny day and get the front shot from a few different angles so you’ve got options for changing the leading image online every now and then. Ask your agent if they can film an up-to-date video tour, and check whether they’re using the best apps and software.

It’s also a good idea to update the copy in your advertising, particularly the headline, and make sure your home’s best qualities really stand out.

Drop the price

To get the best possible price for your home, try all the above before you look at a reduction. Have viewers said it’s too expensive, or are other similar homes also having to drop their prices because there’s an oversupply at the moment? If you do decide to go for a reduction, make it worthwhile. As a general rule, if a home was going to sell within 5% of its current price, someone would have made an offer already, so bring it down to a level that’s genuinely going to get more buyers interested.

Take a break from the market

If you don’t desperately need to sell, taking your home off the market for a little while can be quite effective, particularly if you come back with a new price, new photos and perhaps a new agent. Certain times of the year are quieter than others, and a good agent will know about seasonal and current trends and be able to recommend the best time to come back onto the market.

Taking a break doesn’t have to mean your home’s not for sale, just that it’s not actively advertised. Your agent can keep the details ‘under the table’ and still give them to people they think might be interested, so you don’t miss out on your perfect buyer.

Switch agents

Sometimes an agent just isn’t the right one for you and your home. Perhaps they were enthusiastic at first, but now they don’t seem that motivated and you suspect they may have been over-confident with the price. Maybe they’re trying their best, but don’t have the right marketing skills. Or it could be that they’re simply not communicating with you.

Bottom line, it could be time for a fresh start with a new agent.

The relationship between an agent and their client is important – this is a significant transaction and you’re going to be working together to achieve the best possible sale. So, as well as making sure the agent you choose has a track record of selling homes like yours and a clear marketing plan, pick someone you really like. If they’re enthusiastic and positive about your home, they’ll pass that on to potential buyers and you’ll have the best chance of a successful viewing.

If you’re ready to move on to a new home and need a marketing boost to help sell your current one, call us on 01772 284898 or email sales@kellettandco.co.uk and we’ll happily talk through what we think could make a real difference. No matter what the challenge is, there’s always an answer!

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6 simple steps to prepare your home for viewings

We know from experience that the better your home looks and feels when potential buyers come to view, the more likely you are to get an asking price offer.

For many people, the decision about whether to buy a home is an emotional one and we’ve found that, more often than not, they make that decision very quickly. By the time buyers see your home in person, they already know the size, layout andlocation, and the photos have been enticing enough for them to book the viewing. So this step of the buying journey is mainly about them making sure that your home is as good in reality as it looks in the brochure, and that it feels like the right place for them to live.

Speak with your agent about how they can help.

You may already have your own thoughts about how your home should be presented for viewings, but it’s always worth speaking to your agent to get their input. We’re dealing with buyers and showing homes every day and can often suggest things that might not have occurred to you.

The best agents will have stylists on their team, who work together with a professional photographer to make sure that your home is shown in the most attractive light. Remember that these marketing photos are one of the key aspects that help to secure viewings, and that specific look is what your buyers will expect to see. So, while your home is listed for sale, the closer you can keep it looking to the images in your brochure, the better.

Nevertheless, no matter how neat and tidy you are, there are always those last-minute tweaks and little jobs that need doing before a viewing. So here’s our handy checklist of 6 simple steps to ensure your home is perfectly prepared to welcome what could be your dream buyer:

1. Make buyers feel great about your home before they even step through the front door

First impressions really do count, so think about how your home looks as buyers approach it. One thing that sellers often forget is to check how the ‘For Sale’ board looks – is it clean and straight? If there’s any damage, let your agent know right away and they can arrange for it to be replaced. 

Try to ensure there’s somewhere for people to park their car, even if it means moving your own fifteen minutes before the viewing. Make sure the path to the front door is clear, the garden looks tidy and you have some welcoming potted plants at the entrance. Don’t forget the door itself – give it a wipe down, clean the handle and letterbox – and check any outside lights are working properly.

Kitchen table with vibrant yellow flowers, a cafetiere full of coffee with croissants, and a bowl full of fresh fruit

2. Make the space shine

It’s really helpful if you can try to have the mindset that once your home is on the market, it’s no longer primarily ‘your’ home. You might have been used to leaving projects laid out across surfaces, having children’s toys and play equipment to hand and not worrying about keeping absolutely everything stored in its proper place. But buyers can often ask to view homes at quite short notice, so the cleaner and tidier you can keep each room, the less you’ll have to do at the last minute to get it ready for viewings. 

If you can get used to living in a clutter-free way and manage to stay on top of the housework, then all you should need to do before potential buyers arrive is perhaps run the vacuum around and pop your tea cup in the dishwasher!

3. Carry out a ‘fresh check’ on bathrooms

When it comes to bathrooms and toilets, your two watchwords are: ‘clean’ and ‘fresh’. As with the rest of your home, if you can make sure they sparkle on a daily basis, then you should only have three little things to do before a viewing:

  1. Drop some scented disinfectant in the toilet or spray a gentle air freshener
  2. Make sure the toilet lid is closed
  3. Put out fresh towels.

Tip: Keep a clean set of towels just for viewings, so that you can make a quick switch and then swap them back out once the viewing is over!

A beautifully styles grey/blue themed dining/kitchen space

4. A little bit of styling can make all the difference

When you’re selling a home, you’re selling a lifestyle, so think about what little touches will help people feel good about the space and make them want to spend time there. Candles, flowers, high-end magazines and pretty soft furnishings work well in reception rooms and bedrooms, while a fruit bowl and some fresh herbs will add life to the kitchen.

Use your marketing photos as a reference and try to keep all these styling accessories in your home so that they just need a quick ‘condition check’ before viewings.

5. Fresh baking really does work!

It may sound like a cliché, but the smell of home baking really does appeal to buyers. Our sense of smell has a strong association with memory and can be highly emotive, so some freshly baked bread or cake in the kitchen might evoke memories of a happy childhood, while a coconut scent in a reception room, bathroom or bedroom might remind people of being on holiday.

If you can fill your home with aromas that remind people of happy times in their lives, it will help them feel good about it – and they’ll be more likely to remember it in greater detail after they’ve left. Just remember that less is more and if you’re going for a fragrance, make it subtle.

White labrador dog lying peeacefully in front of ornately painted fireplace

6. Pet patrol…

Your beloved pet might be regarded as a member of the family, but not everyone is going to be a fan and some people may be allergic. The ideal solution is to take your pet out of your home while the viewing is taking place, but if that’s not possible, try to keep it contained in one room, along with beds, litter trays, etc.

If relocating your pet is proving tricky, you could ask your agent to tell prospective buyers about it, then let you know if they have any concerns and you can discuss the best solution.

At Kellett & Co, we’re always here to help, so if you have any questions about viewings or would like some more advice on creating the best possible first impression on buyers, just call on 01772 284898 or email us on sales@kellettandco.co.uk. We look forward to hearing from you!