Top Tips For Attracting High-Quality Tenants In Southampton

 

Some landlords, actually many, have an ‘if it ain’t broke, don’t fix it’ approach to their rental property’s upkeep.

But by proactively refurbishing and modernising your rental properties, you can realise a host of benefits that will attract premium tenants and add long-term value to your investment.

Here are seven ways why, and how, astute property upgrades benefit forward-thinking landlords.

1. Attract premium tenants: By upgrading your rental, you ensure it meets high standards, making it more likely to be rented quickly, thus minimising those dreaded void periods.
2. Create better landlord-tenant relations: A well-cared-for property often inspires respect and care in return. This leads to fewer disputes and a positive, long-lasting relationship between landlords and tenants.
3. Achieve higher income potential: Quality upgrades can make your property appealing to a broader and more affluent demographic, thereby boosting your rental income.
4. Increase property value: Beyond the immediate rental income benefits, high-quality refurbishments can significantly boost your property’s market value, ensuring you gain both short-term income and long-term investment growth.
5. Encourage long-term tenancies: Tenants are more likely to stay longer in homes that are comfortable and free from issues, reducing turnover and the costs associated with finding new tenants.
6. Reduce maintenance costs: Proactively addressing wear and tear and upgrading ageing fixtures and fittings can drastically lower the need for emergency repairs and maintenance – saving you money, time and hassle.
7. Enhance energy efficiency: Making energy-efficient improvements contributes to environmental sustainability and reduces utility bills, making your property more appealing to eco-conscious tenants.

Making improvements to your rental property doesn’t have to break the bank.

Whether it’s a minor refresh or a comprehensive overhaul, it’s often money and time well spent.

Have you got a rental property question? Give us a call today on 023 8001 8222– we’re here to help.

A Father’s Tale: Navigating The Twists And Turns Of Buying A Home

 There’s plenty to consider when moving home, especially when a growing family is involved.

Over the past few months, we’ve looked at the buying and selling experience through the eyes of different members of a family who moved recently.

We’ve spoken with teenagers, tweenagers (9 – 12), younger children (5 – 8) and mums.

In this article, it’s dad’s turn to share his thoughts, fears and advice on moving home with a family.

Here’s Dave’s experience.

From first glance to final offer

“At first sight, the property seemed almost too good to be true, ticking every box on our wish list. Yet, the initial excitement gave way to a lot of questions. Could we imagine our family’s life here? What renovations were needed, and could we realistically achieve and afford them? We decided to go for it as a family, and our offer was accepted.”

The mortgage maze unravelled

“With interest rates on a rollercoaster of their own, securing a mortgage quickly became our top priority. I spent a lot of time finding the right mortgage for us, and it was pretty stressful waiting to see if we’d be approved for one.”

The heartache and hope of selling our home

“Letting go of our home, where we’d made many memories and carried out a lot of improvements, was bittersweet. The emotional weight of moving on was a hurdle I hadn’t fully anticipated, especially as we listened to the kids’ concerns and thoughts. But ultimately, everyone was excited about it.”

When the best-laid plans go awry

“It was a challenge keeping our property chain together. My biggest fear was disappointing our children, who had set their hearts on the new home. Through constant communication and the support of our estate agent, we got the deal over the finish line.”

Final thoughts

“The best advice I can give any parent during a home move is to keep the kids informed, keep a sense of humour and perspective, control what you can and employ the right agent to handle your sale. Aim to be over-prepared rather than the opposite.”

If you’re thinking of moving, contact us today at 023 8001 8222.

Landlords, Get The Best From Your Letting Agent By Following These Simple Steps

 If you’re a landlord looking to save time and money (and let’s face it, who isn’t?), a good letting agent can be a game-changer.

They’ll manage your rental property day to day (so you’re free to focus on your other responsibilities), regularly check in with your tenants (to ensure there are no issues) and remind you of your legal obligations.

A top letting agent can also look ahead and, drawing on their industry experience, advise you on your long-term investment strategy.

But, as with all business relationships, communication is key. When there is clarity and mutual understanding, things run more smoothly, and you make better decisions.

So, how can landlords build a strong and successful business relationship with their letting agent?

Here are some tips.

Before you sign up for services, read your agency agreement and be clear about what you’re getting. If there’s anything you’re unsure of, speak up so you start out on the right footing.

Discuss the level of contact you would like with your agent and how involved you want to be with decision-making. For example, some landlords are happy for agents to instruct work on their behalf, while others want to be more involved. 

If you’re given advice that you don’t understand, ask questions. A letting agent will always try to act in the best interests of the landlord and the tenant (remember, happy tenants stay longer). They also understand the law and will make recommendations based on your legal obligations.

Outline your long-term strategy so that your agent can best advise you about issues such as redecoration and refurbishments.

If there have been any past maintenance issues or problems with neighbours, be clear so the agent can be on the lookout for potential problems.

Remember, letting agents are professionals. Don’t expect them to act unreasonably on your behalf. 

Discuss the history of the property. For example, if it’s the home you grew up in and you have a strong personal attachment to it, let the agent know. 

For more information about our property management services, contact us here at 023 8001 8222.

2-Bed Or 3-Bed Southampton Homes: Which Sells The Fastest?

  Understanding the nuances of property sales is essential for both homeowners and investors in the dynamic Southampton property market.

A few weeks ago, I stated that of the Southampton properties that have sold subject to contract (stc) in the three months of Dec, Jan & Feb, it took an average of 62 days to sell.

Now time has moved on, looking at the Jan, Feb and March Southampton house sales, this has slightly improved, so now …

The average Southampton home in Q1 2024 was on the market for an average of 56 days before agreeing on a sale.

This change, though minimal, is noteworthy against the backdrop of the UK’s economic environment.

As a seasoned estate agent in Southampton, my interactions with landlords and homeowners eager to navigate the Southampton property market have revealed a common query: the impact of property type and the number of bedrooms on its saleability.

Saleability can be measured in several ways. One method is to calculate what percentage of homes of that type, etc, sell compared to how many do not. Another is to calculate how long it takes to agree on a sale. A few weeks ago, I looked at how the price range affects how long it takes to agree on a sale. Therefore, for this article, I wish to look at how quickly a property sells when looking at the type of property or the number of bedrooms.

Southampton Detached, Semi-Detached, Terraced or Flat –Which sells the quickest?

Looking at the home sales that have taken place in the last three months, this is how long it has taken to find a buyer for the different property types:

• Detached homes in Southampton – 72 days to find a buyer.
• Semi-Detached homes in Southampton – 36 days to find a buyer.
• Terraced/Town houses in Southampton – 41 days to find a buyer.
• Flats/Apartments in Southampton – 84 days to find a buyer.

Southampton 1 beds, 2 beds, 3 beds, 4 beds or even 5+ beds –Which sells the quickest?

Looking at the home sales that have taken place in the last 3 months, this is how long it has taken to find a buyer for the different bedroom types:

• One bed homes in Southampton – 70 days to find a buyer.
• Two bed homes in Southampton – 64 days to find a buyer.
• Three bed homes in Southampton – 43 days to find a buyer.
• Four bed homes in Southampton – 66 days to find a buyer.
• Five bed (or more) homes in Southampton – 80 days to find a buyer.

Drilling down into the numbers, it becomes apparent that Southampton semi-detached homes are the quickest to sell when it comes to type of property and Southampton properties with three bedrooms sell the quickest.

The Current Southampton Property Market Landscape

The present-day Southampton property scene presents a mixed bag. An increase in listings compared to 12 months prior suggests a vibrant market, yet it must be remembered that there has been an increase in selling times, which hints at a shift towards a buyer’s market (in 2022, it took an average of 46 days to secure a home sale, whilst, in 2023 it was 68 days). This nuanced change underscores the importance of strategic selling and investment approaches in today’s climate.

Understanding and adapting to these shifts is critical for those selling their homes. The proper presentation and pricing strategy can significantly enhance your Southampton property’s appeal, aligning it with current buyer preferences and market trends.

On the investment side, properties that have lingered on the market might represent hidden gems. These situations often allow for more negotiation leeway, potentially leading to advantageous deals.

As we enter Q2 of 2024, the Southampton property market is ripe with opportunities. Sellers must be attuned to what resonates with today’s buyers, leveraging insights on preferred property types and sizes to their advantage. Meanwhile, Southampton buyers and buy-to-let investors can find value in exploring properties that have been on the market longer than average, where negotiation can yield significant benefits.

Expert Advice for Navigating the Southampton Property Market

In navigating the Southampton property market, several strategies can prove invaluable.

For Sellers: Emphasise your property’s unique selling points, be its location, size or specific features. Ensure your Southampton property is well-presented. Setting a realistic price based on current market trends and comparable sales will expedite the selling process.

For Buyers and Investors: Conduct thorough research to identify areas with high growth potential or market-undervalued properties. Consider properties others may have overlooked, as these can often be negotiated to a more favourable price.

For Everyone: Stay informed. My Southampton property blogs and national property news can keep you abreast of local market trends and provide a strategic edge, whether you’re selling buying or investing.

With its ever-shifting dynamics, the Southampton property market presents many opportunities and challenges. For sellers, aligning with market preferences and presenting your property in the best light is crucial. Buyers and investors, on the other hand, should look for potential in less obvious places where patience and negotiation can unlock significant value. Navigating this landscape requires market knowledge, adaptability, and strategic action.

Whether you’re looking to sell your cherished home or make a savvy investment, understanding the pulse of the Southampton property market is your key to success. If you have any questions about what I’ve said in this or any of my articles on the Southampton property market, please do not hesitate to contact us by telephone on 023 8001 8222 or email southampton@belvoir.co.uk.

The Pros And Cons Of Taking Your Kids To Property Viewings In Southampton

  If you’re looking for a new family home in Southampton, viewings will play a key role in your quest to find ‘The One’.

While marketing photos and virtual tours serve an important purpose, nothing rivals seeing the décor, layout and location with your own eyes.

Viewings also give buyers the chance to discuss the property with the agent and learn more about its history and the seller’s situation.

With all this in mind, where does that leave parents? Should they take their offspring to viewings or make other arrangements for their children?

There’s no right or wrong answer: it depends on your circumstances and your children.

But here’s a list of the advantages and disadvantages to help you decide.

Pros

You can observe how your kids react to a property. If their immediate response is positive, you know you’re on to a good thing. Alternatively, if they start arguing over who gets which bedroom, as one is significantly bigger than the other, you’ve got some thinking to do.

Your children may have a different perspective and highlight aspects you might not have noticed.

If children are involved in the process, they’re more likely to feel optimistic about moving. Considering their views may help you avoid moving-day tears.

If a seller has a strong emotional attachment to the property, they may wish to see it go to a family and so look more favourably on your offer. (We’ve known buyers joke about taking other people’s kids to viewings so that they can play the ‘family card’.)

It gives sellers a good idea of where you’re coming from and your motivation.

Cons

Your children could be a distraction, meaning you can’t give the property your full attention. You may fail to notice the opportunity of a doer-upper or spot potential problems.

Your kids could break or spill something, leaving you red-faced

If your child is struggling to adjust to the idea of moving, they may find viewings unsettling.

Your child may fall in love with a property you dislike and feel disappointed when you don’t buy it.

Suggestion

If you can get childcare, consider attending first viewings unaccompanied. Take your offspring to second viewings so that they’re only seeing properties that are real contenders.

Looking to buy or sell in Southampton? Contact us here on 023 8001 8222 to discuss your property needs.

Making Tax Digital: A Timeline For Southampton Landlords On The Upcoming Changes

  Did you know that HMRC plans to introduce new rules on how landlords file their tax returns?

Here’s an update on what these changes involve and a timeline for when they’ll come into force.

Making Tax Digital (MTD) is an initiative designed to streamline the tax system by fully digitising it.

As MTD has been mooted for quite some time and its implementation delayed twice already, you may have already heard about it.

But if you’re hazy on the details or have buried your head in the sand about it because tax talk bores you silly, here’s a reminder.

• MTD will require landlords and the self-employed to:
• Keep digital records of all income and expenditure. 
• Send HMRC quarterly updates.
• Submit an end-of-year final declaration.
• Use approved third-party software when reporting to HMRC.

HMRC plans to phase in the new system gradually. The current timeline for MTD compliance is:

• 6 April 2026, if your annual business or property income tops £50,000.
• 6 April 2027, if your annual business or property income tops £30,000.

There is no news yet about those with incomes below £30,000, but no doubt that will come later.

What happens to landlords who don’t comply?

HMRC has concocted a (somewhat convoluted) points-based penalty system for people who fail to comply. If, for example, you submit incorrect information or don’t use the appropriate software, you’ll accumulate points. When you accrue a certain number of points, you’ll be fined. The more points, the bigger the fine.

Will MTD have a significant impact on landlords?

A well-organised landlord who already maintains digital records may just have to check if their software is MTD compliant and adjust to more regular reporting deadlines.

However, if you’re the kind of person who always has a last-minute panic when your tax return deadline looms, and files receipts down the back of the sofa, you’re in for a big change.

Whichever category you fall into, it’s worth thinking about MTD now. Even though its introduction is still some way off, the deadlines will come around quickly enough.

Also, it can take time to implement a new system, and you may need to purchase new software. As you accumulate points for every error in your reporting, the number of fines you rack up could quickly grow if you’re sloppy.

Many landlords find going digital with their accounts a more efficient way to run their portfolios.

It means all relevant records are in one place and easily accessible, enabling them to monitor cash flow closely.

If you’d like more advice on preparing for MTD, please contact us on 023 8001 8222.

Southampton Q1 2024 Property Market Report

 

In the articles on the Southampton property market, we like to provide an insight into the real story of what is happening in our Southampton (and national) property market and address the misconceptions that some of the ‘doom monger’ media have been spreading.

Despite almost daily reports of a housing market crash since September 2022, the data shows that the British (and Southampton) property market is doing OK.

So, let’s dive into the stats and start with the life blood of the housing market – new properties coming on to the market.

Nationally, 444,668 UK properties came onto the market in Q1 2024.

(Q1 = Jan & Feb & March)

Interesting when compared to 407,946 UK properties in Q1 2023 and the 7-year Q1 average (2017 to 2023) of 403,105 new properties on the market.

New properties coming onto the market are a vital bellwether of the property market.

Why? Well in 2008, the number of properties coming on the market in Q1 was double that of 2007, this meant supply (number of homes on the market) vastly outstripped demand and hence economics dictated, and house prices fell.

The balance of houses coming on the market and how many sell determine what happens to property prices.

So how do you know if we are heading for another Southampton house price crash as we did in 2008 or not, as the case maybe?

Let me share a quick and easy way to find out before anyone else.

Initially, perform a Rightmove search in Southampton and write down the number of properties for sale every week. Next, carry out the same search, yet this time include sold subject to contract properties and make a note of that. The difference between the two numbers will show the number properties sold subject to contract. The final step is to calculate the ratio between the first two numbers: i.e., what’s available versus what’s been sold.

If the ratio of sold property to available property rises monthly, the market is improving. If the ratio is falling, the market is slowing.

If you really wish to go deep into this; you could split the search into property type (and bedrooms) you are selling and buying e.g., detached, semi, terraced/town house or apartments. This will help you to judge demand and supply and time the market to your advantage.

Next, looking at house sales nationally,302,382 properties sold (stc) in Q1 2024.

However, the devil is in the data. Comparing with previous stats, in Q1 2023, 276,482 properties sold stc whilst the 8-year Q1 average (2017 to 2024 inclusive) was 304,363.

Obviously, the medium term 8-year UK average includes Q1 2021, where 397,402 properties had sold stc and Q1 2022 when 341,888 properties sold stc. Both of those years were exceptional; however, when we compare Q1 2024 to the Q1 average of 2017/18/19/20, a more reasonable 282,488 houses were sold stc on average.

Next, I wish to look at what is selling nationally by price band.

• 35.4% of the properties that came on the market in Q1 2024 were up in the price band up to £250k, yet 42.9% of the home sales (SSTC) were in this band.
• 41.0% of the properties that came on the market in Q1 2024 were in the £250k to £500k price band, yet only 39.6% of the home sales (SSTC) were in this band.
• 13.4% of the properties that came on the market in Q1 2024 were in the £500k to £750k price band, yet only 10.7% of the home sales (SSTC) were in this band.
• 5.1% of the properties that came on the market in Q1 2024 were in the £750k to £1m price band, yet only 3.7% of the home sales (SSTC) were in this band.
• 5.1% of the properties that came on the market in Q1 2024 were in the £1m + price band, yet only 3.1% of the home sales (SSTC) were in this band.

Looking locally at the Q1 stats, starting with the number of properties in the Southampton area (SO14 to SO19) that came onto the market in Q1 2024 …

1,664 properties came onto the market in Q1 2024 in the Southampton area.

The average price of those Southampton properties coming to the market was £308,655.

The price range/band that saw the most listings was the £250k to £300k range, where 342 Southampton area properties came onto market (followed by the £150k to £200k range, where 248 properties came onto the market).

Now, looking at sales in Southampton …

1,180 properties were sold in Q1 2024 in the Southampton area.

The average price of those Southampton properties selling was £278,435.

The price range/band that saw the most sales was the £250k to £300k range, where 276 Southampton area properties were sold (followed by the £150k to £200k range with 184 Southampton area properties sold subject to contract).

Typical first-time buyer properties are leading the recovery.

Although economic turbulence remains, the UK property market is gradually moving towards pre-pandemic activity levels.

Some of you might have noticed with the national listings and sales figures mentioned above, that the lower priced range of properties are performing better than the higher priced properties. For example, just over a third (35.4%) of UK listings were £250k or below, yet that price band accounted for over 1 in 2.3 house sales (42.9%). Meanwhile, at the other end of the scale, 8.9% of listings in the UK in Q1 ’24 were in the £750k to £2m price band, yet only 6.2% of the sales were in the same band. In the £2m+ price range, even though the numbers are very small, the difference is quite startling, 1.3% of listings were £2m+, but only 0.55% of sales agreed were in the same range.

So, what does this all mean for Southampton homeowners wanting to sell in this market?

Realistic pricing when you put your house on the market is everything!

In Q1 2024, there have been 198,682 price reductions on the 633,417 properties on the market.

In comparison, there were 243,602 price reductions in Q1 2023 on the 590,481 properties on the market and 119,068 price reductions in Q1 2022 on 424,796 properties on the market.

It is better to come on the market at a realistic price to start when the property is fresh to the market, than go on at a high price, lose that initial honeymoon period and then reduce it, only for some people to wonder what was wrong with the property.

Although higher mortgage rates and economic headwinds present challenges, many potential Southampton home buyers who were effectively side-lined in the fierce bidding wars of 2021/22 will find that a slower paced Southampton property market gives them time to plan a strategy for their next move as we go into the traditionally busy post-Easter house buying season.

While the demand for quality Southampton houses is still healthy, if the asking price is above the current market, sellers may need help finding buyers.

Determining a realistic price is crucial but not easy. Many sellers look at similar properties on property portals, but those prices may be over-inflated.

Estate agents have more tools at their disposal, such as comparing sale prices for comparable properties, £/sqft and thinking about prospective purchasers in the market for the type of property under valuation.

Although getting the price right can be difficult, revising it downwards quickly is essential.

Southampton homeowners should ensure that their property looks better value for money than similar properties. If you plan to trade up, it is good sense to sell at realistic prices, as you will gain substantial savings compared to moving in the last few years.

However, if you don’t need to sell urgently, becoming a landlord could be an option – again I can help on that if needs be. Nevertheless, Southampton homeowners-turned-landlords should consider that if property values do drift downwards in the coming 12/18 months, it may take a few more years after that to recover to those values seen last year.

Whatever the rest of 2024 brings, moving home should mostly be based on your circumstances and not solely on what is happening to Southampton property prices.

If you would like an informal chat about your potential move without any obligation or cost, get me around for a chat. I promise I will tell you like it is, without any guff – then you can decide what is best for you and your family.

In the meantime, do let me know your thoughts in the comments.

Southampton Home Sellers: Staging Your Home On A Budget

Are you planning to sell your home this year?

Or just curious about what your property may be worth in the current market?

Good news – this article will give you five easy-to-follow tips highlighting how effectively staging your home can boost its appeal to potential buyers.

Styling your home can also potentially speed up the sale and even increase the value of offers you receive.

Let’s dive into the tips.

Declutter and depersonalise

Start by decluttering each room to make your home appear more spacious and inviting. Remove personal items such as family photos, memorabilia and anything else that might distract buyers from imagining themselves living there. A minimalist approach helps highlight the property’s features rather than its contents.

A fresh coat of paint

Refresh your walls with a lick of paint in neutral colours. Light, airy shades like off-white, beige or light grey can make spaces appear larger and brighter, appealing to a broader range of buyers. This simple update can add value to your home without breaking the bank.

Maximise natural light

Make sure your home is well-lit to make it feel warm and welcoming. Keep windows clean and curtains drawn back to let natural light in. If any area of your home feels a little dark, consider adding mirrors to reflect light and make the space feel larger.

Tidy up outdoor spaces

First impressions count. Tidy up your garden, mow the lawn and ensure bins are out of sight. A welcoming entrance and a neat and tidy garden can make a strong initial impression on potential buyers, making them more eager to see what’s inside.

Address little niggles

Take care of any small repairs around the house – fix leaky taps, squeaky doors or chipped paint. These details might seem minor, but they can suggest a well-maintained home to interested buyers.

Ready to take the next step in your home selling journey? Our team at Belvoir Southampton is here to provide you with personalised guidance, from staging to sale.

Our in-depth knowledge of the Southampton market and our commitment to exceptional service ensure your property will stand out to the right buyers.

Don’t leave your home sale to chance.

Contact us today at 023 8001 8222 to discover how our expertise can lead to your success.

Managing And Reducing Void Periods In Southampton

 

Owning a rental property isn’t just about what happens while tenants are in place; effectively managing periods when your property is unoccupied is equally important.

Every landlord faces void periods as a natural part of property letting, making it essential to prepare financially and strategically to manage its impact.

Void periods mean not only the loss of rental income but also the burden of continuing to pay the mortgage, utilities (including standing charges) and council tax without money coming in from tenants.

It was once common for local councils to offer a grace period for council tax on empty properties, but with budget pressures, these reliefs are increasingly rare.

Here are some ways you can manage and minimise void periods.

Financial preparedness: Always have funds set aside to cover expenses during unoccupied periods.

Council tax awareness: Stay informed about your local council’s policies on empty properties to budget effectively.

Proactive maintenance: Use the notice period to enhance the property and carry out any necessary decorative or remedial works to bring the property back up to scratch and make it more attractive to future tenants.

Insurance considerations: Ensure your insurance covers void periods and consider additional policies for longer voids.

Tips to protect your property investment

Continuous maintenance: Keep your property in top condition to attract and retain tenants.

Be responsive: A good relationship with your tenants can encourage longer stays.

Professional assistance: Consider employing a letting agent to manage the property, especially if you’re short on time and need an experienced expert.

Seasonal planning: Recognise the challenges of letting during quieter periods, such as Christmas, and plan accordingly.

Contact us

At Belvoir Southampton, we’re here to help Southampton landlords thrive, offering comprehensive property management services to minimise void periods and maximise your rental yields.

Get in touch on 023 8001 8222 to learn more about how we can help you.

Selling Your Southampton Home? Stay Ahead Of These Unexpected Questions

 You can always tell when someone is really interested in buying your home by the number of questions they ask.

There are the usual suspects like:

• Where are the best schools?
• What are the neighbours like?
• Is it easy to park?
• And how much is council tax?

But it also pays to prepare for some unexpected questions.

In our experience, those less-asked questions highlight how interested a potential buyer is. It’s the opposite of a ‘tyre kickers’ approach.

Below are four questions to mull over.

Delving into the depths

Buyers may dig deeper than the surface, asking about the land’s history or even its geological stability. Did you know that an old well beneath your lawn or the prospect of flooding can raise eyebrows? Prepare yourself with local knowledge to ensure you’re not caught off balance.

Connectivity is key

The fibre-optic era has seen broadband speeds catapult into most homebuyers’ priority lists. Gone are the days when the number of fireplaces in a home was the deal-breaker – today, it’s all about megabits per second. Ask your wi-fi provider for details.

The energy factor

In a world where every watt counts, be ready to shed light on the facts about your home’s energy efficiency. Whether it’s the type of insulation you have or the eco-friendly solar panels you’ve installed, these details can make your home stand out and give you an edge over similar properties.

The secret life of gardens

And then there’s the question that often sees homeowners puzzled: “Which way does the garden face?” Sun-chasers and shade-seekers alike want to know about the light that bathes your garden. Whether it’s south-facing for all-day sun or north-facing for delicate plants, the orientation of your garden can, for some buyers, be a pivotal factor ahead of making an offer.

Are you thinking of selling this spring? Contact us today at 023 8001 8222 to have all your home-moving questions answered by our team of experts.

How To Avoid An Expensive Insurance Claim At Your Southampton Rental

What’s the most common reason for landlords finding themselves in hot water and needing to make an insurance claim?

The answer, according to one insurance company* at least, is ‘escape of water’. This term covers everything from burst pipes and defective washing machines to leaky loos and dripping taps.

In a recent report, the firm revealed that 35.5% of all claims paid to landlords were related to water damage.

And while most claims totalled a few thousand pounds**, some were for much, much more. (Spare a thought for the landlord who had to claim £145,000 after a slow leak in the bathroom rotted the floor of the entire building.)

So, what can landlords do to reduce the risk of leaks, burst pipes and other water-related damage?

Here are some top tips.

• Encourage tenants to report problems as soon as they notice them so you can rectify them promptly.

• When carrying out inspections, don’t forget to check for leaks, including subtle signs such as marks appearing on the ceiling. Be particularly vigilant if you have an ageing property.

• Replace washers on dripping taps.

• Remember that when pipes freeze, they’re more prone to bursting. Cover pipes in outdoor areas and colder parts of your rental with lagging to prevent this.

• At the start of a tenancy, show your tenants where the stopcock and fuse box are located. If there’s a leak, they should turn the mains water off at the stopcock. Once they’ve done this, they should switch off the electricity supply.

• If you have an old water storage tank, insulate it with a ‘hot water jacket’.

• Keep gutters and drains clear of leaves and debris.

• Schedule your annual boiler service in your calendar so you don’t fall behind.

• If a tenant is going away on holiday, ask them to turn off the stopcock. In winter, suggest they programme the heating to come on each day to prevent the pipes from freezing.

• Ensure your landlord insurance is up to date.

If you’d like to learn more about how we can help manage and protect your property, contact us at 023 8001 8222 today.

Spring Cleaning Checklist To Clear The Clutter From Your Southampton Home

Don’t have time to be a domestic god or goddess and give your home a full spring clean?

Well, why not do the next best thing and declutter a few key areas of your property.

Scientific studies have shown that clutter can negatively impact mental health and productivity.

So, by turfing out unwanted and unnecessary items, you’ll face spring with a greater sense of calm and focus.

Here’s a list of things you should purge from your property this spring.

In the kitchen

Raid the freezer and throw out anything that’s been there for more than a year – if you haven’t eaten it by now, it’s unlikely that you ever will, and it’s just taking up valuable space.

Also, go through your pantry and bin out-of-date items such as condiments and tinned food.

Cooking oils can also degrade over time, so if it’s a bit on the nose, it’s got to go.

Now it’s time to turn your attention to your Tupperware drawer. Any plastic containers that don’t have a lid should go in the recycling bin.

Bathroom

Dispose of out-of-date medicines and old cosmetics (which can cause skin and eye irritation). Also, check the expiry date on sunscreen products, which typically have a three-year shelf life. Expired sunscreen can increase the risk of sunburn and skin damage.

If you have a stash of hotel toiletries rolling around in the back of a drawer, ask yourself if you’ll ever use them. If the honest answer is no, give them to someone who will.

Bedroom

One of life’s mysteries is that socks always seem to vanish into thin air.

Where do they go? We don’t know. But it’s time to face facts and ditch that pile of single socks you’ve been holding onto in the vain hope that you’ll be able to make a pair someday soon. It’s not going to happen.

Other items to get rid of include unused coat hangers, underwear that’s seen better days (your lucky pants may have lost their magic) and knackered pillows that are as flat as pancakes (they’re probably harbouring dust mites).

From all of us here at Belvoir Southampton, happy decluttering.

How Southampton Home Sellers Can Spot Unethical Estate Agent Tactics

Selling your home is a significant life event, and the last thing you want is to be misled by the unscrupulous practices of a minority of estate agents.

These agents and their actions give the industry a bad name.

We’ve no time for them, and neither should you.

The good news is we’re about to shine a light on some of those practices so you can look out for them and act to avoid agents who use them.

Southampton homeowners deserve transparency and fairness when selling or buying a new home.

Here are some dodgy practices you need to be aware of to protect your interests.

Overvaluations: The high price of false hopes

Some agents might tempt you with inflated property valuations to secure your business. The risk? Your home languishes on the market, and you’re later pressured into selling at a lower price. Always seek a second opinion and choose an agent with a track record of accurate, market-reflective and evidence-based valuations.

Invented viewings and spurious offers: Your right to reality

Fake viewings and offers are not just unethical – they could deter genuine buyers and skew your perception of the market. Demand transparency from your agent and ask for documented feedback and evidence of offers.

Unfair contracts: Know where the exit is

Be VERY wary of long, restrictive contracts. They can tie you to an agent who isn’t acting in your best interests. Before signing, be crystal clear about the duration, your cancellation rights and any withdrawal penalties.

Preferred investors: Ensuring YOU get the best deal

Some unscrupulous agents have arrangements with ‘preferred investors’, which can mean you don’t get the best possible price for your home. The investor may get a quick deal, but you often get a much lower price. Insist that your agent markets your property widely to attract a range of potential buyers, ensuring competitive offers.

Your home, your choice

We believe selling your home should be a positive and profitable experience.

By staying informed and choosing an agent who values ethical practices, you safeguard your financial investment and the trust vital in any home seller-agent relationship.

When it comes to selling your home, please don’t settle for anything less than an ethical agent who answers how they address the points raised in this article.

If you have any questions, please contact us on 023 8001 8222 – we’re here to help.

What You Need To Know If You Inherit A Rental Property In Southampton

If you’ve just inherited a rental property, then you may be wondering what your options are.

While you won’t need to make any decisions on the spot (it usually takes many months to settle an estate), it’s good to start thinking about the issues you’ll have to address in time.

The first is what you intend to do with the property. Assuming you don’t want to move in yourself, your options are to:

Continue to rent the property out. That way, you’ll earn a monthly income and have a long-term investment that you could later pass on to your family.

Sell the property and use the funds to pay debts, invest or spend how you wish.

Let’s look at what each scenario involves.

Renting out an inherited property

It’s important to understand that there’s more to being a landlord than simply collecting monthly rent.

You must follow hundreds of rules and regulations and ensure your tenants have a safe place to live.

Don’t be intimidated by this. Many accidental landlords – that’s the term for people who become landlords through circumstance rather than design – go on to stay in the private rental sector long term.

But especially in the early days, they get a letting agent to manage their property instead of jumping in at the deep end and drowning in red tape. Having an experienced professional onside to help you learn the ropes can be a lifesaver.

A good letting agent will explain how to inform your tenants that you’re the new owner. (You can’t turn up onsite unannounced.)

They’ll also advise you about landlord insurance, maintenance and buy-to-let mortgages (if applicable).

Selling the property

If you choose to sell, you must decide whether to proceed with the tenants in situ or with the property as a vacant possession*.

There are pros and cons to each of these options.

Conducting viewings can be more complicated with tenants in the property. You need to notify them 24 hours in advance of a viewing, and they can refuse.

And some buyers prefer a vacant property so they can move in on day one without any restrictions.

However, a tenanted property can be an appealing prospect for a landlord looking to expand their portfolio, especially if the tenant is long-standing and reliable.

Also, it means you can proceed with the sale faster as you don’t have to navigate the eviction process.

Don’t rush your sale

You may be tempted to offload to a quick-buy company that offers to take the property off your hands with little fuss.

Be aware that if you go down this route, you’ll most likely get far less than you would by going with a traditional estate agent. While you may feel tired and emotional right now, you might regret short-changing yourself later.

Tax implications

Whether you opt to keep or sell the property, speak to a good accountant or financial adviser.

They’ll explain the inheritance and capital gains tax implications of your decision. And if you rent the property, they can also advise on the most tax-efficient strategies regarding income tax.

If you’ve just become an accidental landlord, contact us at 023 8001 8222. We’re here to help.

*Note: You must follow strict procedures to evict the tenants; these rules also apply if you plan to move into the property yourself.

Spring Forward: A Quick Guide To Selling Your Southampton Home

Spring time in Southampton is not just when the natural world comes back to life but also when the local property market shakes off any winter blues.

And if you’re mulling over a move in 2024, the spring months between March and May could be the perfect time to sell your property.

Here are six speedy springtime tips.

Kerb appeal: First impressions count – especially in spring’s lighter, longer days. Boost your property’s kerb appeal with well-maintained gardens, a fresh coat of paint on fences and clear paths.

Spring clean: A thorough clean makes any property feel more homely. Clear away the clutter, wash the windows and let the fresh spring light and air flood your space. A spotless property suggests a well-cared-for home, encouraging buyers to imagine themselves living there.

Seasonal staging: Use spring’s colours to your advantage. Introduce some flowers, decorate with fresh, light-coloured linens and set out bowls of seasonal fruit to create a warm and inviting atmosphere.

Pricing strategy: An attractive price point is critical in generating interest quickly. Think of the Goldilocks Principle: No one will want it if it’s too hot (overpriced), but if it’s too cold (too cheap), you’ll lose out, so you need to work with an honest, experienced estate agent to get the price ‘just right’.

Highlight outdoor spaces: After a long winter, buyers are eager to imagine enjoying their own outdoor space. Give your great outdoors some love by ensuring that any gardens, patios or balconies are clean, tidy and staged to highlight their potential as a personal oasis.

Choosing the best agent: Select an estate agent with a proven track record in the spring market. They should be knowledgeable about seasonal trends and skilled in making the most of your property’s springtime appeal. An effective agent will negotiate a great price on your behalf and guide you smoothly through the selling process.

By taking these steps, you can maximise your property’s appeal and increase the likelihood of a quick sale in the competitive spring market.

The Southampton Property Market Report For March 2024

As a practised estate and letting agent based in Southampton, I like to monitor the Southampton property market, compare it to the UK property market, and then share it with Southampton homeowners and landlords.

For February 2024, the UK property market has seen a continuation of the solid start in the first month of the year. Therefore, in this article, I want to see if that national trend mirrors or differs from the local market in Southampton.

In the first nine weeks of 2024 (up to the 3rd March 2024), the UK property market recorded 200,823 homes sold subject to contract (stc). This figure is 11.5% higher than the first nine weeks in 2023, where only 180,748 properties were sold stc.

It gets even more interesting when I compare it with two other time frames. Firstly, the average for 2017/18/19 combined for the first nine weeks is 185,192 properties. Secondly, for the first nine weeks of 2020, when we were experiencing the ‘Boris Bounce’, the number of house sales was 206,956, which is only 3% more than this year!

What about national house prices?

The average price of the property sold stc in the first nine weeks of 2023 was £343,690 with an average of £325/sq.ft.

In 2024, the average sale agreed price was almost identical at £348,414, yet the average pound per square foot was slightly higher at £335/sq.ft.

Such a surge in the property market demands a deeper analysis to understand the underlying factors and what they might mean for local markets, such as Southampton.

Key reasons why the UK property market is doing so well.

Decrease in Mortgage Rates: A key driver for the heightened activity within the property mortgage industry is the drop in mortgage rates. This change has made property ownership more accessible to a broader population, increasing property sales.

Increase in Salaries: The escalation in average earnings has been pivotal, too. With increased income, people are more likely to invest in property, which is considered a stable and profitable investment.

Increase in Rents: The average rent in the last two years in the UK has gone from £1,405 per calendar month to £1,797 per calendar month, making it cheaper to buy than rent on many occasions.

Low Unemployment Figures: A robust employment market coupled with low unemployment figures has boosted confidence among individuals, prompting them to undertake significant life choices like purchasing a house.

Other Influences: Additional elements also contribute, including shifts in demographic trends, changes in housing preferences following the pandemic, and government policies that might have encouraged the buying of properties.

Southampton’s property market: A comparison.

Now, I turn my attention to Southampton. Understanding that local markets can behave differently from national trends is vital. (Southampton being SO14-SO19).

In the first nine weeks of 2023 in the Southampton area, there were 717 sales agreed (sold stc), and in comparison, in the first nine weeks of 2024, there were 811 sales agreed in the Southampton area (sold stc).

This is a 13.1% increase inSouthampton home sales year-to-date

So, it is slightly better than the national picture, yet it is still very early in the year so things could change. Before diving deeper into this, I wanted to see what had happened in the first nine weeks of the year in the Southampton property market in 2024 and how it compared to 2023.

The average price of the property agreed on a sale (i.e. sold stc) in the first nine weeks of 2023 in Southampton was £268,057 with an average of £314/sq.ft.

In 2024, the average sale agreed price on the properties sold (stc) in the first nine weeks was £272,415, with an average of £315/sq.ft.

The future of the Southampton property market.

Moving forward, the UK property scene in 2024 holds considerable promise. Yet, for property owners and landlords in Southampton, it’s vital to grasp the intricacies of the local market. The focus should be on more than just national movements but also how these trends meld with local and regional dynamics.

As an expert, I urge all Southampton property stakeholders to seek advice tailored to their needs. Knowing the present market value of your property and the strategies for manoeuvring through the 2024 market could be crucial for well-informed decision-making.

Despite a solid kick-off to 2024 for the UK property sector, diving deep into the specifics of the Southampton market is essential to identify both opportunities and potential hurdles. I offer specialised knowledge and advice for Southampton property owners that align with our distinctive market conditions. Whether you’re a homeowner contemplating a sale or a landlord considering expanding or downsizing your portfolio, a deep understanding of Southampton’s property landscape is critical to strategic planning.

It is essential to recognise that the Southampton property market is ever evolving, and national trends may only sometimes directly reflect local realities. As we progress through 2024, keeping abreast of market changes and adapting accordingly will be vital for any successful property deal. I create lots of content about the Southampton property market, just like the article you are reading now, so if you want to receive them all, please contact the office, and I’ll send them to you.

Should you wish to gauge your standing in the Southampton property market or have questions about potential investments, don’t hesitate to reach out to me on 023 8001 8222. I’m here to assist with my expertise and detailed understanding of Southampton’s market, guiding you through these dynamic times in our local property scene.

How Southampton Landlords Can Ethically Maximise Their Rental Investments

There are five fundamentals to consider when thinking of buying a rental property.

Whether you’re a seasoned investor or taking your first step into the rental property market, make sure you understand what makes a place a good investment.

Here are five points to consider carefully:

Location, location, location – The age-old mantra is as relevant as ever. A property’s location can significantly impact its desirability and, consequently, its value. Look for areas with strong growth potential, good infrastructure and accessibility to amenities like shops, good schools and public transport. Up-and-coming neighbourhoods or those in the regeneration process may offer particularly attractive opportunities.

Rental yield and capital growth – A savvy investor knows the importance of balancing immediate returns with long-term gains. Rental yield – the annual rent collected as a percentage of the property’s purchase price – is a key metric for assessing an investment’s profitability. Equally important is capital growth, or the potential for the property’s value to increase over time. Researching historical price trends in the area can provide insights into future growth prospects. A good estate agent can help you with this.

Property condition and maintenance – The state of the property can significantly influence your investment’s success. A well-maintained property can attract higher rents and more reliable tenants, reducing the likelihood of costly repairs and vacancies. Consider the property’s age, the condition of significant things like roofing and plumbing, and any immediate renovations required.

Market demand and tenant appeal – Understanding the local rental market and what tenants in the area are looking for can help you choose a property that stays in high demand. Factors such as the property’s size, layout and features should align with the preferences of your target tenant demographic, whether they’re students, families or professionals. Again, this is an area of your research where an experienced local estate agent can be of massive value to you.

Financial considerations beyond the purchase price – The initial cost is just the beginning. When calculating the overall investment, savvy investors factor in additional expenses such as tax, insurance, management fees and maintenance costs. Being mindful of these outgoings ensures you have a realistic expectation of your net return.

Property investment requires a considered, strategic approach informed by careful research and a clear understanding of your financial goals.

Working alongside trusted advisers like mortgage brokers and estate agents can improve your chances of success.

By focusing on these five fundamentals, you’re not just buying property but investing in a future of potential growth and income.

If you are looking to buy a property investment, let us help you find the right property that matches your requirements. Contact us on 023 8001 8222 and see how we can help you.

How Has The Spring Budget Affected Southampton Homeowners And Landlords?

The Spring Budget 2024 this afternoon has introduced some changes that could significantly influence your Southampton property strategies and investment outcomes.

Here’s a comprehensive mini update:

Capital Gains Tax Cut: A major highlight is the reduction in the higher rate of property Capital Gains Tax from 28% to 24%. This tax is applicable when you profit from the sale of properties that aren’t your main home, such as buy-to-let properties, business premises, or inherited properties. The expectation is that lower tax rates will spur more transactions, potentially enhancing tax revenues and offering landlords a chance to re-evaluate their portfolios with slightly less tax burden.

Holiday Lettings Tax Regime Abolished: To combat the shortage of long-term rental properties, the furnished holiday lettings tax regime has been eliminated. This move is set to affect holiday landlords but aims to make more properties available for permanent residents, particularly in areas popular with tourists.

Removal of Multiple Dwellings Relief for Stamp Duty: Additionally, the Spring Budget has eliminated the Multiple Dwellings Relief, which benefited landlords purchasing multiple residential properties simultaneously. Initially implemented to reduce obstacles in property investment, the removal of this relief is expected to primarily impact major institutional landlords and not most buy-to-let landlords (as most landlords tend to only buy rental properties one at a time).

Commitment to Building One Million Homes: The government has reiterated its commitment to constructing one million homes by the end of this Parliament, dedicating £242 million to new housing initiatives. This ambitious goal aims to alleviate the housing shortage, potentially creating new investment and development opportunities within the property sector.

Financial Relief Measures: The budget introduces significant financial reliefs that could have a broader impact on property affordability and the market at large. A noteworthy 2p cut in National Insurance contributions, reducing it to 8% of pay, promises to lessen the historically high tax burden, benefiting Southampton homeowners, potential home buyers, landlords, and tenants alike. Together, these changes aim to put more money back into the pockets of individuals, potentially increasing disposable income and making property investments and their upkeep more affordable.

These strategic updates present a mix of challenges and opportunities for those involved in Southampton’s property market. From tax adjustments affecting investment returns to broader economic measures that may influence property affordability, it’s crucial to stay informed and consider how these changes can be leveraged to benefit the local property landscape.

Let’s dive into discussions, exchange insights, and navigate these developments to enhance our property community in Southampton.

Southampton's Restless Homeowners: The 5 Year 39 Week Itch In The Southampton Housing Market

There are 28.4m households in Britain, of which 17,693,200 are owned, worth a total of £5,127,807,837,600 (£5.1 trillion). When you add all the private rented homes and council houses, that figure reaches just over £8.5 trillion!

Over the last six years, 76,669 UK properties have sold each month, meaning the average British homeowner moves every 16 years and 7 months.

This data disproves a standard theory that British neighbourhoods are becoming more fleeting and transitory. On the face of it, they show that once you have bought a property you can call home, there isn’t much motivation to move again.

So, are fewer people moving home?

Could it be attributed to a sense of contentment or indifference to moving home?

While we might love our home in Southampton, most of you (including myself) still want to ‘better ourselves’ with a bigger house, better area, etc, which typically requires us to climb the Southampton property ladder.

Yet, with Southampton house prices having risen by 356% since 1995, the cost of going up the next rung on the Southampton property ladder is prohibitive.

Everyone remembers the 1980s when we had a buoyant booming property market as a backcloth; British homeowners moved home every eight or nine years; so now, with the average at just over 16 years, this means each British homeowner moving around two or three times in their adult homeownership lifetime. Maybe we should all rename our homes ‘Dun-Roamin’! Or does it? 

We have all heard the phrase, “lies, damn lies and statistics”.

The statistics mentioned above conceal some astounding features of the British property market. When British homeowners enter their late 50s and early 60s, their inclination to move home drops tremendously. The average length of time a homeowner without a mortgage moves home is 23 years and 3 months (and around seven out of ten outright homeowners, i.e. without a mortgage, are 65 years old or older). 

Yet, British homeowners (with a mortgage) move on average every 9 years and 11 weeks.

So, whilst I cannot determine who has a mortgage and who doesn’t, I can look at how quickly people move home in Southampton. I have looked at the last 40 property sales in Southampton and found some interesting findings.

The average Southampton homeowner moves onaverage every 12 years and 41 weeks.

Remember, the UK average is every 16 years and 7 months. Yet it gets fascinating when we delve deeper into that stat.

There seems to be a two-speed (even three-speed) Southampton property market (remember in the title I said 5 years and 39 weeks).

To start, having looked at the last 40 Southampton property sales I then put them in order of how long they had been in that home before they moved, with the fastest first and slowest at the end.

When we look at the 25% quickest home movers in Southampton (i.e. 1st to 10th) and then the next slice (the 11th to 20th quickest movers) … these Southampton home movers are moving home really fast, yet the gap for the successive two slices broadens remarkably, (i.e. the slowest movers). See for yourself!

• The quickest 25% of Southampton home movers (i.e. 1st to 10th) moves every 3 years & 41 weeks – that’s a quick move!
• The next fastest quartile (i.e. 11th to 20th) of Southampton home movers moves every 7 years & 36 weeks.
• The following 25% quickest quartile (i.e. 21st to 30th) of Southampton home movers moves every 15 years & 20 weeks.
• Finally, the 25% slowest quartile (i.e. 31st to 40th) of Southampton home movers only moves every 24 years & 15 weeks.

Looking at the top 50% of the quickest movers, half of Southampton homeowners move home again within 5 years and 39 weeks.

When looking at the properties that fall into the later bands (i.e. the ones that don’t move/sell so often), they tend to be the larger properties where the homeowners have lived for 30 years plus.

We all should learn that once people get into their 50s and 60s, their tendency to move home drops significantly. This means the properties on the lower rungs of the Southampton property ladder sell more often (as younger homeowners occupy them). Yet, once Southampton homeowners get older, their inclination to move home diminishes. This obstructs the younger Southampton generation wanting to buy the bigger Southampton homes these mature homeowners live in.

What is stopping the older generation homeowners from selling and downsizing to free up family homes for families that desperately need them? Some of it will be apathy, some will hold on to the homes they brought their families up in, or there might be another reason.

However, when you consider …

50.2% of owned homes in Britain havetwo or more spare bedrooms.

That’s a lot of spare bedrooms, at least 15,553,574 spare bedrooms, not being used in the UK.

As a country, we need to change how we can support older homeowners in selling their large, underutilised homes to allow them to house the younger families that badly need them. Some people suggest tax breaks, yet the Government aren’t in the mood to give massive tax breaks to people who would ‘tend’ to be their existing voter base. Much of it comes down to not finding the right home to move to.

As a nation, we have seen (and will continue to see) a lot of socio-economic and demographic changes together with a rising elderly population, so it’s not just about how many homes we build but whether we are building the right kind of homes the older generation want to move into.

Interesting times ahead for the Southampton property market!

If you are a mature Southampton homeowner in a large home and are afraid to move because you can’t find one, please don’t hesitate to contact me on 023 8001 8222. I might be able to place your Southampton home on the market without a for sale board or internet listing and find you a buyer who is prepared to wait for you to find one. If this interests you, without obligation do not hesitate to pick up the phone.