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What Does A Labour Government Mean For Landlords In Peterborough?

What Does A Labour Government mean For Landlords?

With the Labour Party’s recent election victory, Sir Keir Starmer steps up as the new Prime Minister, and as the new government takes shape, landlords will be keen to understand the implications for the rental market.

The team at PTL Lettings has put together the key topics to watch including Section 21 evictions, energy efficiency standards, and changes in landlord taxes.

Key Issues Facing Landlords in Peterborough

Post-election, landlords will be closely monitoring Labour’s approach to several pressing issues in the rental market. These include:

Rising Costs: Increased mortgage rates and significant tax changes have reduced returns for many landlords.

Rental Reforms: Although plans to scrap Section 21 evictions were initially dropped, Labour intends to revive them.

Rental Housing Supply: A mismatch between rental supply and demand has led to steep rent increases in some areas.

Energy Efficiency: Previous plans to raise minimum energy efficiency standards were scrapped, but Labour aims to introduce new measures by 2030.

What Does a Labour Government Mean for Landlords: What is the Vision for the Rental Market?

Sir Keir Starmer emphasized ‘change’ during his election campaign and with a strong majority, Labour is now poised to implement its manifesto pledges, particularly those affecting the private rental sector and landlord taxation.

Labour’s Key Promises:

Abolish Section 21 Evictions: Labour plans to ban Section 21 (no-fault) evictions immediately.

Tenant Protections: Empowering tenants to challenge unreasonable rent increases and ban rental bidding wars (details on this are still pending).

Rent Caps: Capping the amount of rent that can be paid upfront.

Awaab’s Law: Extending this law, which mandates rectifying hazards like mould in social housing to also include private rentals. This will require landlords to fix any health hazards within a specified timeframe.

Energy Efficiency Standards: Introducing new standards by 2030, though the specific EPC rating required is yet to be determined, it is likely to be a C rating.

Gas Boilers: Remove the mandate to replace gas boilers by 2030. No-one will be forced to remove gas boilers as part of the energy efficiency standards.

Taxation Under Labour

Labour has pledged not to raise the basic, higher, or additional income tax rates. Corporation tax will stay at 25%, and VAT and National Insurance rates will remain unchanged.

However, landlords should look out for potential increases in capital gains tax rates as Labour seeks alternative funding sources.

What’s Next for Rental Reforms?

The Conservative government had proposed the Renters’ Reform Bill, which aimed to abolish Section 21 evictions and end fixed-term tenancies. Although the bill was dropped before the election, Labour is committed to scrapping Section 21 evictions immediately, and more details are expected soon.

Landlords and Lettings: Adapting to Changing Regulations

Landlords are still navigating a period of significant change. In The Kings Speech on Wednesday 17th July, The King announced that the Government would introduce legislation to “give greater rights and protections” to those renting – including “ending no-fault evictions”, with draft legislation published on leasehold and commonhold reform.

In a further statement from Downing Street, the Government said: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions…The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

Key Dates

Labour Party Conference: September 22-25, 2024, which will indicate the government’s priorities and Starmer’s early performance.

Potential Autumn Budget: October or November 2024, as Labour plans to hold one budget annually instead of alternating spring and autumn budgets.

Tips for Landlords:

Stay informed: It’s crucial landlords keep up-to-date with changes in regulations and legislation by following resources like the National Landlords Association (NLA). If in any doubt speak with a member of our lettings and property management team at PTL Lettings on 01733 555183.

Consider tenant retention rather than rent increases: A reliable tenant who takes good care of your property can be more valuable than a small increase in rent. Building a positive relationship with your tenants can lead to long-term stability and fewer void periods.

Maintain your property: Regular upkeep ensures your investment remains attractive to tenants and minimises the risk of costly repairs later.

Click to read:

A Guide To Purchasing A Buy-To-Let Property

Becoming A Landlord In Peterborough

8 Things UK Landlords Should Know

Rental Property Management in Peterborough For landlords

At PTL Lettings we are your local experts for property management in Peterborough. If you need expert letting agent or property management services or advice, our experienced team can help. Contact us today on 01733 555183 or email info@ptl-lettings.co.uk.

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A Guide to Purchasing a Buy-To-Let Property in Peterborough

A Guide to Purchasing a Buy-To-Let Property in Peterborough

If you’re considering Becoming A Landlord In Peterborough, there are many elements to consider and understand before you purchase a property. The process of buying a buy-to-let property differs from buying a residential property that you will live in yourself, so it’s good to know exactly what to expect.

Of course, it’s a long-term investment that shouldn’t be made in haste, so if you’re reading this, you are probably looking for the right kind of information.

Our team at PTL Lettings are experts in buy-to-let advice, so here is our straightforward guide to purchasing a buy-to-let property in Peterborough.

What is Buy-to-Let?

First things first, the basics. Buy-to-let is a property specifically purchased with the intention to rent it out to tenants. It’s an investment property that can generate a monthly income. As long as the rent being charged is higher than the monthly buy-to-let mortgage payments that is!

A buy-to-let mortgage is different to a residential mortgage, and if you can’t afford to simply buy the property outright, you will need to apply for one.

When applying for a standard mortgage, your income is taken into consideration, whereas with a buy-to-let loan, the lender considers the potential rental income as your primary income source, and considers your personal income as secondary. The interest rates tend to be lower, but they have larger upfront fees, so keep that in mind.

Moreover, deposits on buy-to-let mortgages are also typically larger than the deposit needed for a standard mortgage, so expect to put down at least 25%.

What kind of buy-to-let property should you buy?

The right property is important and can include factors such as the location in proximity to amenities and transport, as well as the neighbourhood and the demand in the area.

Much like when you’re searching for your own place to live, you should ensure you do adequate research into the area you want your buy-to-let property to be located in.

Consider what kind of tenant you want to target and include that in your research. If you’re trying to rent to families, your best bet is to find a property in the suburbs close to good schools.

If you want to rent to students, a property near a university and with cheap restaurants and nightlife is key. Keep in mind, the type of tenants you have renting from you can affect your mortgage, as many lenders have restrictions on student rentals, for example.

Do you need buy-to-let insurance?

The short answer is yes; you should have buy-to-let insurance (also known as landlord insurance). It gives you coverage for the building and the contents inside and any landlord liabilities.

Building insurance is often required by your mortgage lender in order to secure a loan. This will compensate you if your property is destroyed or damaged. The insurance will cover the repairs or rebuilding costs so you don’t have to pay huge expenses out of your own pocket.

Contents insurance will cover any furniture inside the property. It’s a smart idea to get contents insurance even if your buy-to-let property is unfurnished. You can choose what level of cover you require, and it can protect any curtains, carpets, and other furnishings that remain at your property between tenants.

If you choose to rent your property unfurnished or furnished, your tenants will be responsible for their own contents insurance. They will also be responsible for personal belongings when they move in.

Landlord liability is mostly your choice. However, if you’re renting to students, for example, there may be a minimum level required. This covers you for any injuries or deaths of any tenants or visitors in your property.

Do you need to use a letting agent?

This answer is dependent on the budget you’re working with, how much time you have, and the level of involvement you wish to have with your buy-to-let property.

If you want to take a hands-off approach, it is a good idea to enlist the help of a professional, experienced lettings agency for your property management in Peterborough.  

Choosing a letting agent like us means we will help you carry out credit checks on your potential tenants, help you come up with a letting contract, chase late rental payments for you, help with any maintenance on site that needs to be done, and assist with mandatory safety and efficiency checks for gas and energy.

The fees to work with a letting agent typically include paying an ongoing fee to manage the property which varies. It’s always best to speak with your chosen letting agent to get a complete idea of costs.

Generally, utilising the services of a letting agent can take a big burden off your shoulders if you are a budding landlord!

At PTL lettings we offer services that are right for your individual needs. We deal with every landlord independently and our highly trained staff will help you with any concerns you may have.

What Next? Want to Learn More About Buy-to-Let Property?

For professional advice on purchasing a buy-to-let property in Peterborough, contact our expert team at PTL Lettings on 01733 555183. Alternatively, email info@ptl-lettings.co.uk, or book a valuation and we will be delighted to help. We deal with every landlord independently to meet their needs.

You may also be interested to read 8 Things Every Landlord Should Know

In the meantime, here are the answers to the most frequently asked questions about purchasing a Buy-To-Let property:

Frequently Asked Questions About Buying a Buy-to-Let Property

How much tax will I pay on my buy-to-let income?

You’ll pay income tax on rental profits (rental income minus expenses). Mortgage interest tax relief helps offset some of this cost.

What about capital gains tax when I sell my buy-to-let property?

Yes, you’ll likely pay capital gains tax on the profit you make when you sell your buy-to-let property. There’s an annual tax-free allowance to consider.

Is a buy-to-let property a good investment?

Rental yield (your annual rental income as a percentage of the property value) is a key consideration. It should cover your buy-to-let mortgage interest and other expenses.

Do I need to pay stamp duty on a buy-to-let property?

Yes, stamp duty rates for buy-to-let properties are typically higher than residential purchases as it’s not your main home. Talk to a financial advisor about the specific costs involved.

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How To Create a Positive Landlord-Tenant Relationship: Advice for Peterborough Landlords

How To Create a Positive Landlord-Tenant Relationship

As a landlord in Peterborough, letting your property to new tenants can make you a little nervous. The best way to ensure that your tenant and you have the best possible experience is to create a positive landlord-tenant relationship.

When you create a positive landlord-tenant relationship, it will help keep your tenants happy, encourage them to take good care of your property, and may persuade them to renew once their initial tenancy ends.

Our team at PTL lettings has some tips to help you create the best landlord relationship with your tenants.

1. Good Communication Is Key

Before your new tenant moves in, communicate with them effectively to establish the house rules. Communicating expectations early helps avoid tension later, for example, should they want to redecorate or keep a pet.

2. Supply Your Contact Details

Tenants need to have a reliable person they can contact if they experience a problem, so make sure you’ve supplied your contact details and those of another trusted person who can efficiently deal with issues if you’re unavailable.

3. Leave A Guide For Tenants In The Property

Creating a handbook for your new tenants will help make settling in easier. Include details about how to use the heating system, the kitchen equipment, and the shower, as well as any other appliances. It’s also a good idea to include information about refuse collection day and local amenities like dentists, doctors, and supermarkets so they can familiarise themselves if they are new to the area.

4. Respond Quickly To Any Tenant Issues

If your tenant raises any issues, resolving them rapidly will go a long way when you attempt to create a positive tenant-landlord relationship. Your tenants want to be reassured that you care about their well-being and the property, so arranging repairs as quickly as possible is critical.

5. Be Prepared To Be A Flexible Landlord

When you find good tenants, holding onto them makes sense! That means being prepared to have a flexible attitude when renewing their tenancy. If they request a change or fix to enable them to continue their contract, taking a flexible approach to negotiations is wise.

6. Offer Longer Tenancies

With more people looking for rental properties in Peterborough, there is an increased desire for longer tenancies. Many tenants want the security of remaining in the property for the long term. When you find reliable tenants, consider offering them a longer tenancy. Not only does this benefit the tenants, but it also helps you since you’ll reduce the risk of having void periods between tenancies.

7. Use A Property Management Company in Peterborough

One of the best tips to foster a positive tenant-landlord relationship is to use the services of a reliable local property management company in Peterborough. Not only will they help to maximise your rental returns, but they will also take over all the challenging and time-consuming elements of managing your property.

All day-to-day management will be handled, like emergency repairs and more complex essentials like tenancy agreements, deposits, and rent collection.

Keep Landlord – Tenant Relationships On Track!

The team at PTL lettings are experts in the Peterborough rental market.

The team at PTL Lettings are experts in the Peterborough rental market. Call us today on 01733 555183, book a valuation, or email us at info@ptl-lettings.co.uk to find out how we can ensure you maintain the best possible relationship with your tenants.

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Becoming A Landlord In Peterborough: 7 Steps

7 Steps To Becoming A Residential Landlord

There are a number of reasons people consider becoming a residential landlord.

Often, it’s because someone wants to do more with their savings and sees property as a sound investment with a regular income. Or a person becomes an accidental landlord after inheriting a property or moving into a house with a partner.

However, while the allure of consistent rental income is certainly appealing, there are several things you need to consider before you begin your property portfolio.

Here are seven things to think about when becoming a landlord in Peterborough.

How to Become a Landlord of a Rental Property in Peterborough

Set-up costs

Finances matter, the numbers have to stack up. If you’re going to obtain a buy-to-let mortgage, the mortgage lender needs to know about your income and what rent you hope to achieve.

They have to ensure that you can cover the costs. You’ll probably have to pay for surveys, too, so they can be sure the house is worth what you think it is.

Then there are the legal fees and the search costs. Many law firms who specialise in conveyancing will be able to give you an early indication of what your final bill will be.

DIY or use a letting agent

You could manage the property yourself – and many landlords consider this as it can help reduce costs. However, you must make sure you have the time to dedicate to the management of the property.

Do you want to use a letting agency to find you a tenant and arrange the initial agreements? You can then keep on top of things for yourself. Or would you rather hand over all the management to the agency? Reducing the pressure on you is great, but there are costs involved with letting agent fees.

Landlord insurance

When you are renting out a property in Peterborough, you must obtain landlord insurance. This is because a home insurance policy will not cover you for what you need, and also because the right insurance will protect you, your property and your tenant.

If you’re taking out a mortgage to buy the property, your lender will insist that you have insurance. The costs of insurance will vary depending on the level of cover, such as personal liability, contents cover and buildings cover, and loss of rent cover, in the unfortunate event of unpaid rent. Speak with an insurer or a broker and be absolutely clear about what you need.

Furnished or unfurnished

Whether you rent out a fully furnished property or one that is unfurnished it is a decision you need to make early on.

If you’ve inherited a furnished property, then it might well be an easy decision. If this is the case, you might find this suits a potential tenant, and you will be able to get a better monthly rent.

Obviously, if you rent out an unfurnished property, it means you don’t need to buy things for it. Many potential tenants prefer this as they can put their own furniture in and make it their home. Don’t forget; it’s best practice to get an inventory carried out as this will affect your insurance policy and could minimise disputes at the end of an agreement with prospective tenants.

Paperwork

One of the top tips for being a landlord is to be well organised and up to date with paperwork from the start. It may seem daunting having a lot of documents, but organisation is key.

Not only will this ensure you don’t fall foul of any legal responsibilities, but it should also mean that if any disputes arise, you know straight away where things are. (It’s also particularly useful when you’re doing your accounts or checking information).

Plus, there won’t be any nasty surprises when you suddenly realise you need to pay income tax!

Legals & responsibility

There are certain legal obligations and responsibilities that need to be understood. These are in addition to the tenancy agreement that you and your tenant should be signing. For example, before a property is let, you’ll need an up-to-date Energy Performance Certificate (EPC) for it.

A gas safety certificate is required for each gas appliance in the property. Each home must have smoke alarms and a carbon monoxide detector. Plus, any appliances or furniture must meet the required safety standards. There are also rules about a tenant’s deposit and how it is kept in a Government-approved scheme. If you need help with any of these, we can advise you. Simply call us on 01733 555183.

Right to rent checks

A relatively new aspect of renting out a property in Peterborough is the need to carry out a Right to Rent check. A landlord must, by law, check whether a potential tenant has the legal right to rent a property in the UK.

Failure to carry out the required checks could result in hefty fines so if you do need advice, then contact us and we will be delighted to help.

What Next? Need expert advice?

Searching for advice on renting out your property? Contact our team on 01733 555183. Alternatively, email us at info@ptl-lettings.co.uk, or book a valuation and we will be delighted to help. We deal with every landlord independently to meet their needs.

In the meantime, here are the answers to the most frequently asked questions about becoming a landlord:

Frequently Asked Questions About Becoming a Landlord and Setting Up Rental Properties

You may be interested to read 8 Things UK Landlords Need To Know

Do I need a license to become a landlord in the UK?

In England, landlords may need to obtain a license for certain types of properties, such as houses in multiple occupations (HMOs).

What responsibilities do landlords have regarding tenant safety?

Landlords are legally obligated to ensure the safety of their tenants by conducting regular gas safety checks. They must also provide smoke and carbon monoxide alarms, and adhere to electrical safety standards.

How can I set a fair rental price for my property?

Research the local rental market, consider property features and amenities and evaluate comparable rentals to determine a competitive and fair rental price for your specific location and property type.

What steps should I take if my tenant fails to pay rent?

Follow the legal eviction process outlined in the relevant UK legislation. This typically involves issuing a notice to the tenant and seeking possession through the court if rent arrears persist.

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Should You Let a Property Furnished or Unfurnished in Peterborough?

Should You Let a Property Furnished or Unfurnished in Peterborough?

Are you deciding whether you should let your property furnished or unfurnished? Many factors come into play when making the decision, like the location, target market, and your return-on-investment goals.

If you’re on the fence about letting a property furnished or unfurnished, here’s an overview of the pros and cons to help you decide.

What Does “Furnished” Include?

As a minimum, all properties to let in Peterborough need to include various amenities, like white goods, kitchen and bathroom fixtures, flooring, and curtains or blinds.

While there isn’t a legal definition of what a furnished property includes, it needs to be considered ‘fit to be lived in’ from the day the letting begins. This usually means it has:

  • Beds: Enough for each bedroom

  • Wardrobes: Appropriate for the number of bedrooms and people

  • Chest of drawers: One or two sets per bedroom

  • Sofas: Ideally to seat the number of people living at the property

  • Dining room table and chairs: Preferably with enough chairs to seat the number of people living at the property

  • Tableware: Enough to cater to the number of people living at the property

What are the Benefits of Letting a Property Furnished?

Choosing to let a furnished property ultimately depends on the target market, the local area and your desired rent price. By letting a property furnished, you can:

  • Get a better or higher rent price

  • Make your property more attractive

  • Attract short-term tenants (if that is your target market)

Are there Downsides to Letting a Property Furnished?

Despite the benefits, there are some downsides to letting your property furnished, including:

  • Size of market: A furnished property doesn’t always attract long-term tenants, so you may appeal to a smaller market seeking short-term lets.

  • Maintenance: It adds maintenance, like handling repair and replacement work.

  • Costs: You’ll need to pay for the furniture, plus repair and disposal costs.

  • Compliance: All furniture provided in a rental property must meet fire resistance requirements. Mattresses and bed bases must be labelled to show they meet BS7177 – a safety standard set down by law. This includes sofas, chairs, beds, and padded headboards. All furnishings must pass the ‘match resilience test’ and the ‘cigarette test’.

What Does Unfurnished Include?

Unlike furnished properties, there is a legal definition of what an unfurnished property includes. They must have a minimum of:

  • White goods, including a cooker, fridge, freezer and washing machine

  • Kitchen and bathroom fixtures

  • Flooring or carpets

  • Curtains or blinds

What are the Benefits of Letting a Property Unfurnished?

Even though furnished properties are usually more desirable, there are some benefits to letting a property unfurnished, including:

  • Less maintenance: Furnished properties come with a requirement to maintain the furnishings. With an unfurnished property, you won’t have this responsibility. Maintaining furnishings can be difficult, especially if you let your tenants keep a pet. 

  • Attract long-term tenants: Long-term tenants often bring their own furniture to a rental, so an unfurnished property could be more desirable to this market.

  • Cheaper: Since you won’t have to pay for furniture, your outlay and running costs could be cheaper.

Are There Downsides to Letting a Property Unfurnished?

Naturally, unfurnished properties attract a different clientele. Letting an unfurnished property can mean you need to charge a lower rent price.

Plus, you may not be able to compete with other nearby rentals if you’re not providing what people want. The best thing to do is research what works well for your property type in the local area before you decide.

Landlords: Need Advice?

Read 8 Things UK Landlords Need To Know

Deciding whether to let your property furnished or unfurnished depends on many things, particularly related to the market in your area. Get a free marketing valuation here.

For personalised advice about letting your property in Peterborough, our friendly team at PTL Lettings are here to help. Give us a call today on 01733 555183 or email us at info@ptl-lettings.co.uk.

Frequently Asked Questions About Letting a Furnished or Unfurnished Property

Is there a difference between a furnished and unfurnished rental property?

Yes. In the UK, all properties must include white goods, kitchen and bathroom fixtures, flooring, and curtains/blinds, regardless of if they are listed as furnished and unfurnished properties . Furnished properties include essentials like beds, wardrobes, and often a sofa and dining table.

What are the pros and cons of furnished vs unfurnished rentals?

Furnished rental properties can attract higher rents and short-term tenants but require more maintenance and upfront costs. Unfurnished rentals are easier to maintain and attract long-term tenants but may lead to lower rents.

Who typically prefers furnished properties?

Young professionals, students, and those relocating for short-term work often prefer furnished properties as they require less upfront investment.

Can I offer a part-furnished property?

Yes, you can offer a part-furnished property, but clearly outline what furniture is included in the tenancy agreement for prospective tenants. Be sure to include essentials like a cooker, fridge, and washing machine, even in part-furnished rentals.