Doing It Yourself This Easter

With Easter, and the first bank holiday weekend of the year just around the corner, many of us will be tackling some of that DIY in and around the house that they have been putting off since the start of the year. But before you rush into a project, first take a look at our tips on what you can do on a budget that will increase the value of your home, and get it ready to sell.

1 Paint

Many of the major DIY and home stores have sales on over the bank holiday weekend, which always makes it cost effective to stock up on essentials such as paint. For a very small investment, you can transform a room and make a huge improvement. Potential buyers feel put off by having to carry out this work themselves, so when your home presented in a move-in state, with freshly painted walls and woodwork, you are likely to sell quicker and at a higher price. But remember, keep it neutral, don’t add garish splashes of colour which your buyer will have to cover up when they move in.

2 Insulate

Having your home well insulated is a huge plus for buyers, as it can reduce heat loss and cut energy costs in the long run, a benefit for every homeowner. According to a Government report, making improvements to a property’s energy efficiency rating could add more than £16,000 on average to the sale price of a property. There are many grants available for cavity wall and loft insulation, so this one may not cost you anything at all.

3 Give it curb appeal

When you are selling your house, chances are you cant avoid getting people in through the front door, which makes it smart to create a lasting impression. Small upgrades can create an eye catching exterior on any budget. Often, sellers overlook the front entrance, but first impressions are crucial and sometimes it is the most simple of things, which make the most difference. A freshly painted front door will make a good impression to potential buyers and an affordable quick fix is to replace or renew door furniture too. Getting the outside as presentable as possible and keeping up with exterior maintenance is important. At the very least you want the outside to look better than your neighbours, which means painting the exterior of the house, cleaning out gutters, cleaning dirty windows, and having a driveway clear of rubbish.

4 Replace flooring

Take a look at your flooring. Are carpets looking tired and worn, laminates chipped and uneven? Nothing will turn buyers off more than having to replace all the flooring in a new home. It is a good idea to evaluate your floors when selling your home. Ideally you want to replace worn carpets and laminate but if your budget doesn't allow for replacements, hiring a floor cleaner for the day to get those carpets spick and span, and laying down a cosy rug, is a good alternative.

5 Apply for planning permission

Applying for planning permission gives potential buyers possibilities and makes them feel like they are getting a lot for their money. Even if you don’t have the money for an extension or similar, submitting plans to your local planning authority will cost a few hundred pounds and will last 3 years if granted. It will ultimately make buyers feel they can put their own stamp on the property. It also provides security for potential buyers, as they can be sure that if and when they come to sell and move on, they too can increase the value by carrying out the work.

6 Modernise the kitchen

Ok, so this may take a little longer than a bank holiday weekend, however it is probably the easiest way to add value to your home. The kitchen is often the heart of the home, and therefore a major deciding factor of whether to purchase a property or not. If your kitchen could do with a makeover, investing in this room, when you come to sell really will increase the value you achieve, and reduce time to sale. However, if you do decide to replace the kitchen, bear in mind, you are not replacing it for yourself, so, as with painting, keep colours neutral.

Plus, do the maths – it is easy to go overboard and spend £25,000 on a kitchen. This may look great, but if your house is only worth £200,000, you wont recoup your investment. Rather, spend £5,000 and you will still have improved the kitchen, plus, will make your money back. If budget is tight, replacing cupboard doors and the worktops is a cost effective alternative, which will also really pay-off – but don’t spend thousands on a kitchen your buyer is likely to immediately rip out.

These are only a few of the ways you can increase the value of your home on a budget, there are lots more, and you don’t have to do them all. Pick out what suits you and your budget and make a start.

If you are selling or thinking of selling your property, we are here to help. Contact your local Martin & Co office or request a free sales valuation when you are ready.

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Exeter property rises and falls

The regular readers among you may recall that around six months ago I had one of our landlords come into the office to discuss rising house prices in Exeter.  I like to keep my clients up to date with current market trends so I decided to send him an update on the figures. 

At the time, property values in Exeter had been increased by around £227 per week over the previous 12 months, which is pretty impressive growth.  Since then however (over the last six months), I’m afraid to say prices have been dropping by a staggering £441.7 per week!  It seems that 2015 has been hitting Exeter property rather hard so far, with prices dropping by around £336.9 per week over the last three months, is this related to the impending election, our wonderful English weather or perhaps it is just the standard rise and fall of the property market.

That being said, it is not all doom and gloom.  When we look back over a longer period, say 12 months, prices have still increased by around £163 per week, so if you bought in early 2014, you should be in profit, if you bought around mid-2014, do not get disheartened, if prices go the same way as they have over the past few years they should bounce back up by around the middle of this year.

It is also important to remember that if you are letting out your property for the long term, prices will continually rise and fall, the key is figuring out the best times to buy and sell.  If you are looking to buy or sell a property in Exeter or would just like advice on the rental market, please pop in and see us in our South Street office.

Regards, Jon 

Martin & Co’s Essential Guide to Being a Successful Landlord

With a third of retirement savers now considering investing in buy-to-let properties in light of new pension reforms, many more people are about to become landlords.

Letting property can be complex in today’s market. There’s lots to think about and do including securing tenants, meeting any legislative requirements, managing rental payments, maintaining the property and getting the right insurance.

What does it take to be a successful and good landlord? Here’s our essential guide:

Pick the right area
If you’re looking for a new buy-to-let investment, it’s worth casting your net wide to find the right rental property for you, even if it’s not on your doorstep. This will give you a clearer picture of the rental demand hotspots and what tenants want.

Martin & Co’s national office network of local property professionals are perfectly equipped to advise you with the most up-to-date research and present you with the best rental property the best rental picks locally, regionally and nationally. And with almost 200 offices throughout the UK, you know that our agents will be close by to keep watch over your property on your behalf.

Check your tenant before signing them up
As a landlord, you want to be confident that the person that rents it not only looks after your property but is a suitable tenant that pays the rent on time and in full each month. Picking the right tenant can reduce your risks of problem tenants down the line, so investing in thorough tenant referencing service is a wise move.

Martin & Co offers the market-leading tenant referencing to give you confidence that your chosen tenant is a good tenant and is financially reliable. It conducts thorough background checks and reference-gathering, including personal identity and bank detail authentication, tenant detrimental risk and affordability checks, previous landlord or agent references to check the tenant paid rent on time and if they would let to the tenant again, and credit checks incorporating fraud indicators and employer references.

Importantly, it provides a unique guarantee of free eviction for any non-payment of rent during the duration of the tenancy and continues to check their credit record throughout the tenancy.

Get comprehensive landlord insurance
Along with many benefits of letting a property, there are occasionally downsides, and having a tenant that does not pay the rent, damages the property or does not leave when they are asked to, are among a landlord’s biggest fears.

Landlord insurance is the most reliable way to safeguard against accidental damage and do check if your insurer covers your particular type of tenant, as students or recipients of housing benefit may be exempt.

Martin & Co recommends Landlord’s Rent and Legal Protection from the Landlord Hub. Their insurance makes unlimited rental payments until vacant possession of your property is obtained, pays the court costs up to the value of £75,000, covers any breach of tenancy* and has no excess to pay. Contact your local Martin & Co office for full details.

Look after your tenants
Replacing tenants costs money, time and energy. Keep your tenants happy and you give them a reason to stay in your property for longer.

Trust your tenants until they give you reason not to. Tenants don’t want to be hassled by their landlord, so leave them to enjoy their home in peace but be responsive if they report problems with the property. If something happens, listen to what is being said, take every suggestion on board and take appropriate action.

Don’t forget, a great tenant is priceless. If you want to retain them, make sure you maintain your property for them. After all, it’s likely you’ll need to do the work to attract new tenants once they leave. Just make sure you give valid and understanding reasoning behind your decision if you choose to decline any request.

Be energy efficient
From April 2016, tenants have the right to request consent for improvements to make their homes more comfortable, and easier and cheaper to keep warm, and the landlord cannot unreasonably refuse.

What’s more, from April 2018, landlords will be required by law to get rental properties to an energy efficiency rating of at least Band E. The good news is that financial support is available through the Green Deal and Energy Company Obligation. This means landlords don’t necessarily have to foot the bill for installing new boilers and insulation measures to improve the energy efficiency of their properties – and landlords will only have to make improvements that are cost effective.

Think before increasing rent
Raising rent can be a risky move, so don’t do it unless you’re certain it’s necessary and ideally get advice from your letting agent first who will give you advice on where to benchmark your rent. Set the rent too high and you’re more likely to encounter difficulties attracting tenants and suffer void periods in your property.

Professional property bodies reveal their pre-Election housing manifesto

Ahead of May’s General Election, the UK’s two largest professional bodies in the property industry have set out a new ‘Housing Manifesto’ to tackle the biggest concerns about the property sector: lack of supply, a need for more regulation in lettings and sales, and appropriate taxes across the whole property spectrum.

Supply and demand
Housing demand from both the sales and private rented sector continues to outstrip supply. For every house built, two households are created. The private rented sector demand is compounded by the fact that an increasing number of ‘accidental’ landlords are leaving the rental market as the sales sector has picked up.

According to ONS data, average house prices have increased by 6.9% since 1980 but compare these to the rental increases during 2014 alone and you will see the difference. Increases were greater in London (2.4%) and the South East (2.1%). Meanwhile, the number of property sales halved between 2006 and 2009 to just 0.86 million and house building fell by 44% between 1980 and 2013/2014.

The National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (ARLA) are recommending better collaboration between regions to ensure planning policy is balanced to meet local housing needs. And with average tenancies lasting between 18 and 24 months, they also call on the government to resist pressure to commit tenants to compulsory three-year leases to give tenants the flexibility they need.

Improve industry regulations
The NAEA and ARLA have highlighted concerns on the UK’s two-tier private rental market comprising those who operate to professional standards and those that don’t. They want to see compulsory membership of the client money protection scheme for letting agents to eliminate risk for landlords, and want regulations to be tightened so that agents who bring the industry into dispute can be removed.

Appropriate property taxes
Increasing housing supply is not a ‘fix all’ solution to our housing issues. Homes that stand empty for long periods are putting strain on demand and are creating a negative impact on local communities. The manifesto pushes for fair property taxes, by empowering local authorities to fine home owners who leave properties sitting empty reforms and reducing VAT on housing renovations and repairs, and improve the quality of housing stock. It also calls for Labour’s proposed Mansion Tax to be abandoned which would damage the pockets of asset-rich but cash-poor home owners.

The manifesto recommends the UK should follow the example of our European neighbours by encouraging institutional investors with incentives to move into the Build to Rent residential property sector. The private rental sector should be treated as an ‘entrepreneurial business activity’ for Capital Gains Tax purposes. This would allow landlords to have the same level of roll-over relief as other businesses when reinvesting in the sector, and limit Capital Gains Tax to gains released from a business as profit.

About the NAEA & ARLA
The NAEA is the UK’s leading professional body for estate agents, whose members are bound by a vigorously enforced Code of Practice and Rules of Conduct, to represent the highest level of integrity and service on property matters. ARLA is the UK’s foremost professional and regulatory body for letting agents, to uphold the highest professional standards and safeguard money through its Client Money Protection Scheme. ARLA licensed agents are professionally qualified and are governed by a strict Code of Practice for ethical conduct, with a robust complaints and disciplinary procedure.

All Martin & Co offices hold Professional Indemnity Insurance (to protect you in the unlikely case of professional negligence), Client Money Protection insurance (to keep your funds and your tenants’ deposit funds safe) and are members of a redress scheme (for peace of mind that any complaints will be independently investigated).