6,564,678 People use Oxford Train Station a year - How does that affect the Oxford Property Market?

It might surprise you that it isn’t always the nicest most picturesque villages around Oxford or the most desirable Oxford streets where properties sell or let the quickest. Quite often, it’s the ones that offer the best transport links. There is a reason why one of the most popular property programmes on television is called Location, Location, Location!

As an agent in Oxford, I am frequently confronted with queries about the Oxford property market, and most days I am asked, “What is the best part of Oxford to live in these days?”,.  Now, the answer can be different for each person – a lot depends on individual factors e.g. the age of their family, their age, schooling requirements and interests etc. Nonetheless, one of the principal necessities for most tenants and buyers is ease of access to transport links, including public transport – of which the railways are very important.

Official figures recently released show that, in total, 9,017 people jump on a train each and every day from Oxford Train station. Of those, 2,811 are season ticket holders. That’s a lot of money being spent when a season ticket, standard class, to London is £5,724 a year.

The bottom line is that property values in central Oxford would be much lower, by at least 3% to 4%, if it wasn’t for the proximity of the railway station and the people it allows access north and south of the City

Rail is becoming increasingly important, as the costs associated with car travel continue to rise and as the roads are becoming more and more congested. This has resulted in a huge surge in demand for rail travel.  

Overall usage of the station at Oxford has increased over the last 20 years. In 1997, a total of 3,064,352 people went through the barriers or connected with another train at the station in that 12-month period. However, in 2016, that figure had risen to 6,564,678 people using the station (that’s 18,035 people a day).  Hence the huge investment in capacity at Oxford parkway station where parallel investment in bus routes to/from Oxford has driven house prices in and around Kidlington, meaning that house price growth continues to track above the average for Oxford.

A property’s location relative to the train station has an important effect on its value and saleability in Oxford. It is also significant for tenants – allowing car-free living to be realistic in a City that wishes to limit car usage.

One of the first things house buyers and tenants do when surfing the web for somewhere to live is find out the proximity of a property to the train station. That is why Rightmove displays the distance to the railway station alongside each and every property on their website – they know it is in the top 5 criteria applied by buyers and tenants alike.  To illustrate this, recently a couple came to me looking for a property 5 minutes’ walk from Oxford station and 5 minutes’ walk to the central shops, restaurants and bars.  They wanted 2 bedrooms, one bathroom and wanted to keep the monthly rent to around £1,000.  In the event, they achieved their perfect location, but had to raise their budget by 20%, reflecting the premium that proximity to the stations carries.  They are now living just off St Thomas Street, just a few hundred yards from the Central station.

House prices hit record highs according to Rightmove

Average UK house prices rose 1.1 per cent to hit a new high in April of £313,655, according to the latest Rightmove house price index.The previous high was £310,471 set in June 2016.

A Rightmove statement says: “While the run-up to an election creates a degree of uncertainty and often a pause in activity, this strong set of figures should help mitigate pre-election jitters.”
The index found that first-time buyer sector is driving growth, up 6.5 per cent annually to a new record of £194,881 on average.

High buyer demand in most parts of the country has helped to propel the price of newly marketed property to record highs and there are signs of a strong spring market with the number of sales agreed achieved at this time of year being the highest since 2007. It remains to be seen what effect the run-up to the snap election will have, though any slowdown in activity will be counter-balanced by the market’s current fast pace.

Until we start to see the promises from this year’s Housing White Paper put into action, the cost of entering the homeownership club will continue to rise which might be great news for homeowners and landlords, but not for first-time buyers trying to break away from Generation Rent.

If you are interested in your property 'numbers' then please give me a call.

Best regards

Richard

Oxford rents rise by 22.6% since 2005

The Oxford Property Market has been particularly fascinating over the last 12 years when we consider what has happened to Oxford rents and house prices.

There’s currently much speculation about what will happen to the rental property market during the Brexit negotiation. I believe we must look what happened in the 2008/9 credit crunch (and what has happened since) to judge rationally the possible ramifications for long-term investors in the Oxford property market. An important, yet overlooked measure is the performance of rental income vs house prices (i.e. the resultant yields over time). In Oxford (as for the rest of Great Britain), notwithstanding a slight drop in 2008 and 2009, property rentals have been gradually and consistently increasing.

The income from rentals has been progressively increasing over the last 12 years. Today, they are on average 22.6% higher than they were at the beginning of 2005. In fact, over the last five years, the average growth has been 2.4% per annum. However, the observant readers will be noting that we are ignoring an important factor – our friend inflation.

Turn the clock back to 2005, and take a property being rented for say £900 a month hat is still being rented at £900 a month today, in Spring of 2017. While the landlord is not getting any less income, £900 is no longer worth as much. Let me explain, in 2005, £900 may have bought a two-week 4* holiday in Italy. Yet, holidays have increased in line with inflation (which has been 38.5% since 2005), so our holiday would cost today £1,246 (£900 + 38.5% inflation = £1,246). Therefore, the landlord could no longer afford the same holiday, even though they have the same amount in pound notes from their rental property.

This means, when we compare rents in Oxford to inflation since 2005, Oxford landlords are worse off today, when they receive their monthly rental income, than they were in 2005 by 15.9% in real terms (rents increased by 22.6% since 2005, less the 38.5% inflation since 2005 – net affect 15.9% drop). 

However, rental income is not the only way that landlords generate money from property as property values typically increase over time. Although in the short term, cash flows are diminishing, many Oxford landlords will be content to off-set that for the increase in capital value.

Property values in Oxford have risen by 77.3% since 2005

This equates to a very strong 6.44% average increase per annum over the last 12 years. This will make those Oxford landlords and investors feel a little better about the information regarding rents after inflation.  6.44% annual return compares well when considered vs alternative financial investments over the same period.

Looking forward, the prospects of making easy money on buy to let in Oxford have diminished.

If you are investing in the Oxford property market, do your homework and do it well. While some yields may look attractive, there are properties in many areas that do not have the solid fundamentals in place to sustain them. If you are looking for capital growth, you might be surprised where the hidden gems really are. Take advice, even ask your agent for a portfolio analysis like I offer my landlords.

Thoughts from a train

Sitting on a train to London provides space for contemplation.  April has been an odd month.  Demand has been impacted by Easter and bank holiday breaks, at a time when the availability of rental properties in Oxford is high.  Why so high?  It is the 12 month anniversary of the pre-stamp duty rush to buy last March.  Those new buy to let properties have added to the supply in Oxford in a month somewhat decimated by holidays.

What does this mean for landlords?  Well property fundamentals are based on location, condition and price (relative to comparable properties).  The location of a property is fixed and the exposure of a portfolio geographically can only be changed over the medium to long term.  Condition is not fixed.  Investing in the decor, general condition and quality of fixtures and fittings makes a difference at a time when tenants have choice.  If the condition can't be improved further to enhance the property's attractiveness, then only price remains.  

Prospective tenants are savvy, if they have choice they will assess value for money in relation to location and condition.  Landlords need to be honest with themselves and be just as savvy in assessing the rent they are seeking vs the competing properties.

Will rents fall in Oxford in 2017, for some properties, yes.  Is that a long term trend?  I think not.  Oxford tracks London but lags in terms of time.  London had a tough 2016, Oxford may follow in 2017.  I doubt we will see rent deflation across the board, but at the top of the market we may see pressure e.g central Oxford apartments if demand from foreign students is adversely impacted by the political focus on immigration.

So is Oxford losing its shine?  No, capital appreciation remains strong.  Accepting say 3% lower rent to avoid a void, will ensure an overall annual return of 6% plus when income and capital appreciation are combined.  For many without debt, this could rise to 8 % plus.

The thing to avoid is a void!

Landlord Seminar - Inheritance Tax Planning for Property Investors

1^st June 2017 at 6pm to 7.30pm at The Oxford Spires Hotel

In association with Martin & Co, Oxford & Twomey Wealth Management

Oxford’s landlords own valuable, appreciating assets.  Day to day, the focus is on maximising the income generated from those assets by optimising rental yield and minimising periods of void.  Most landlords expect to retain the ownership of their properties, seeing their appreciating value as an integral part of their plans for retirement, and part of the legacy that they will leave for their children and grandchildren.  In virtually all cases the value of their assets exceed £500,000 in many it exceeds £5m.

I can’t think of any other investment to which so little consideration is given to optimising the investment for tax particularly inheritance tax.  Most people don’t think there is anything that can be done now to better look after future generations, but the truth is that there are some easy, sensible and inexpensive actions that can and should be taken – all it takes is for someone to explain them!

And, that someone is Andrew Twomey, whose business Twomey Wealth Management, is part of St James’ Place Wealth Management partner practice.  Educated in the UK and in Australia, Andrew works with clients in London, Oxford and the Cotswolds to assist them to build, grow, protect and preserve their wealth.  Happily for us, he also has a really great way of explaining things in a simple and action orientated way.

So, if you own one or more properties in Oxford or elsewhere, and you have an inkling there might be more you could do to get your affairs in order -  please come along.  We start at 6pm and will run to 7.30pm, at the Oxford Spires Hotel on the Abingdon Road in Oxford.  Numbers are limited so please email me on info@OxfordPropertyBlog.co.uk to reserve your place.

Back in Silkdale Close, Cowley for this investment cracker!!

Well the number certainly work with this one folks.

On the market for £220,000 with Chancellors, Cowley you will expect to hit a rent of £975pcm on this which would give you a 5.3% return on your investment, assuming you purchased at asking price. As always is the case with my advice, I wouldn't!

I say this because even at a glance I think the property needs a re-dec and shower unit. Tap operated showers are not really what tenants want or expect for their money so money will need spending here. In addition to this some of the furniture needs an overhaul as well. I approximate spending around £2500 to bring this property to standard but a viewing would be good to further assess the condition. A photo can lie after all!

Other than the above it really doesnt have much of a downside. These are really shrewd investments. Just ask the previous owners of 21 Lizmans Court who purchased the property in July 2012 for £155,000 and then sold it on 10th May 2016 for £210,000 representing a 27% increase.

Good right?

Aside the work these flats are minimum fuss and a real hidden gem in Oxford for those of you looking to add to the current portfolio or purchase for investment for the first time.

Please feel free to call me for more information.

Best regards

Richard

The perfect investment in lovely Kennington

There are many reasons to consider village life - the quiet, nice walks, community feel and good local schools. Well in addition to all of this how about a village that offers close access to Oxford Centre and is also conveniently placed for routes out of Oxford?

Step forward Kennington!

This cute little one bedroom property on The Avenue is currently on the market with Simpsons in Abingdon (??) for £250,000. It is worth a second (and third) look.

Internally it is very hard to fault so no major work necessary here to property itself or the furnishings, assuming they get thrown into the equation!

Its garden is lovely and a real draw for potential tenants as well.

You are looking at £925 and £950pcm which gives you 4.5% yield assuming asking price but an offer is always worth it.

Behind city centre and North Oxford, Kennington tends to be the most sought after location in our area.

Happy to talk about this one and others folks!

Best regards

Richard

A little gem in Reliance Way, Cowley!

Good afternoon all,

I hope you are well.

I spotted this one in Cowley. I am sure you locals in Oxford will know Reliance Way quite well and what was true in 2010 is still true now......It makes for a cracking investment!

You can find this one on the market with Chancellors for £350,000. Recent selling history saw one sold on the 1st July 2016 for £340,000 and prior to that number 144 Reliance Way sold for £347,000 on the 26th April 2016. In short the price is thereabouts but that should never deter you from an offer!

The going rental rate for this apartment is £1295 - £1325pcm. At the lower end (always cautious me!) which gives you 4.5% on the yield.

Internally it looks sound but this will need a viewing to inspect closer. If it is as it is presented in the pictures then you will need very little done to it.

With the recent house price index from March to April reporting a slowing down in annual property growth, now could be a very good time to jump in there with an offer on this apartment. It has a rich rental history throughout the block and very rarely do you see voids on these units.

Call me if you would like to know more.

Best

Richard

Legal questions raised about online estate agents

This was first reported by Property Industry Eye:

A leading barrister has raised several questions about the duties owed by online estate agents to their customers.

In the Opinion, prepared for the UK PropTech Association (UKPA), Ian Rees Phillips of 6 Pump Court explores how the nature of up-front payment for estate agency services may create a conflict of interest between the online estate agent and property vendors.

The opinion concludes that the online agents owe a fiduciary duty to home seller clients and that there is a “significant danger that breach of fiduciary duty is baked into the online estate agent model.”

Those online agencies who operate with self-employed agents in the field are in even more “danger” of their clients “bringing a claim” against them.

Eddie Holmes, chairman of the UKPA, said: “It is extremely important that founders operating new business models, enabled by technology, bear in mind the legislative environment in which they operate. The world of PropTech is no different to any other in this regard.

“This Opinion  by Mr Rees Phillips serves to highlight some fundamental questions about the online agency business model.

“We urge those businesses operating in this space to consider these questions as a matter of priority and communicate what steps they take to protect their customers – something which should, ultimately, help those businesses create competitive advantage for themselves.”

Oxford Property Blog believes that this relates primarily to their financial model whereby fees are taken up-front irrespective of whether a property is sold.  It is reported that some online agents sell just 30% of the houses they list, meaning that 70% of vendors pay the agent a fee, but fail to sell their house.  Whereas, most high-street agents only charge a fee on the completion of a successful sale and they would routinely budget to sell no less than half of the properties they list, with the best-performing achieving 60% or more. 

The online model breaks the link between the vendor's financial interests and that of their agent - no sale: no fee ensures those interests are aligned throughout the process.  Up-front fees, reduce the need for online agents to remain focussed and committed to a successful completed sale, and may encourage above-market valuations of property in order to secure a listing.

Rental trends reported by RIghtmove

Based on Rightmove data, there are 12% more properties available for tenants to choose from compared to the first quarter in 2016.

Nationally, it is taking 10% longer on average to secure tenants than during the same period last year.

In the SE of England, compared with Q4 2016, there has been a 1% reduction in average achieved rent, whereas compared to the same period last year rents are up 1.3%.

Oxford typically tracks the London market quite closely, albeit with a lag and with lower valued peak rents.  Looking at London, compared with rents in Q4 2016, rents in Q1 2017 are up 1.5%, however, when compared to the same period in 2016 rents are 4.2% down.  To date, Oxford rents have held-up well, however, properties are currently taking longer to let than during the same period last year.  Following the buy to let buying spree in March last year, those properties are now coming available, increasing the availability of properties and offering tenants more choice.

Will Oxford experience the falls in rent experienced in London?  Well, I don't have a crystal ball, but on balance I'd predict a period of low growth in rents and for some properties stagnation.  However, I would expect demand to hold-up reflecting the under-supply of homes and the strong fundamentals of the City's economy.

I expect one bedroom properties to hold-up the best with larger properties from 2-bed apartments upwards taking a little longer to let.  Landlords should not panic, but should be open to accepting offers from tenants, recognising the benefit of prolonging a void period.

Demand for professional HMO properties is likely to remain strong, with tenants demanding a high quality of fit and finish, and good quality, well-equipped communal areas and en-suite facilities.

Rooms  without en-suite facilities, or within homes that are rather tired in terms of interior décor and facilities are most likely to be hit by the reducing demand given the narrowing of the gap between top-priced rooms and one-bedroom and studio apartments.  The cost of renting a room in Oxford is very high, and I'd expect to see some.

The lowest fixed mortgage rate in 5 years!

Morning all, We thought you may be interested in this offer. Fresh from our recent landlord seminar at Oxford Spires Hotel, and with the new tax changes now officially in force, now is a very good time to be looking at your current circumstances to determine the best way to protect your biggest investments. Lowest 5 year fixed rate in history... by a mile The lowest ever 5 year fix was launched today at 1.29%. We're assured it's not a mistake but you can be certain it won't be available for long. Arrange a callback with one of our advisers on our website. Representative example: A mortgage of £193,051 payable over 23 years, initially on a fixed rate for 5 years at 1.29% and then on a variable rate of 3.75% for the remaining 18 years would require 60 payments of £809 and 216 payments of £1,045. The total amount payable would be £275,160 made up of the loan amount plus interest (£81,209) and fees (£900). The overall cost for comparison is 2.83% APRC representative. Earlier in the week Nationwide announced that house prices had dropped in March for the first time in almost two years. Bear in mind though that the House Price Index for the whole of the UK had risen 15% in the last 2 years and 30% in the last 4. How does this affect me? If you aren't looking for a new property and are happy in your home it's easy to ignore the UK housing market. However, increasing property prices can affect your mortgage in a positive way. An example Say you bought a property for £200,000 in 2013 and took out a 90% mortgage (£180,000) over 25 years. 4 years later, if the property has increased by the UK average of 30% it will now be worth £260,000. Even if none of the mortgage capital had been repaid this is a new loan to value (LTV) ratio of 70%. And a lower LTV ratio means less risk for the lender and therefore a better rate for you.  How much can I save? You can use our house price calculator to work out the change in your area and our best buy tables below to work out the potential savings. Happy Easter everyone! Residential Best Buys Buy To Let Best Buys

If you would like more information about this please feel fre

Westgate will change the face of Oxford…and for the better!

Earlier this week Savills and the Westgate Alliance launched the marketing of residential units included as part of the Westgate shopping centre development.  Mill Stream House as it has been named, is a single block of 59 one and two bedroom apartments across the road from John Lewis and next to the old mill stream.  This week the first 20 apartments were released for reservation off-plan, ranging from £347,000 for the cheapest one-bedroom apartment to £564,000 for a two bed apartment on the North end of the block with a balcony overlooking the mill stream.

Whilst no show apartment is yet available for viewing, it is clear that the apartments will be small in comparison to other central Oxford apartments, but with high quality finishes.  There will be lift access, but there is no provision for parking, which whilst understandable given the central location, will no doubt deter some buyers.

Rental yields will be good particularly for the one-bedroom apartments with between 4.5 and 4.8% -beds look likely depending on purchase price.  Yields on the 2 beds will be lower, and rental demand is more likely to be impacted by the lack of parking for these properties.  Overall, however, this is set to be popular with buy to let investors.

On Tuesday, there was a launch event hosted by Savills which was well attended by potential buyers, and just 24 hours after the first 20 apartments were made available 12 had been reserved.  Some of the best apartments will form part of phases 2 and 3 releases scheduled for May/early June.

I believe that the Westgate development will impact Oxford in a similar way in which a similar John Lewis led development impacted Cardiff.  In Cardiff, the development acted like a magnet to shoppers, restauranteurs and retailers effectively relocating the city centre to what had been a rather under-developed part of town.  It seems to me that something similar will happen in Oxford, which has been crying out for a decent retail experience for years.  For many residents of Oxford Castle, Empress Court and Tennyson Lodge, the disturbance and inconvenience caused by Westgate’s development has at times seemed unbearable.  However, once complete I expect them to be well rewarded as their properties become even more desirable.  Offering residents a short walk to world-class shopping, eating and drinking.  In turn The Lion Brewery, Castle Mews, Rowland Hill Court and Stream Edge apartments will also feel the ripple effect as The Castle area becomes THE place to live in Oxford.

It is terrific to see new housing stock being made available in Oxford.  City centre apartments are an ideal way to keep the Oxford vibrant and alive, and maintaining the City as jewel of Central England.

Oxford landlords, are you ready for MEE?

This weekend marks one year to go before the introduction of Minimum Energy Efficiency Standards.  These will require that private rented properties achieve a minimum ‘E’ rating for energy efficiency from April 2018.

Over the last 12 months, tenants living in private rented homes with F and G ratings have been able to request improvements, such as insulation.  The landlord has been legally bound to bring the property up to at least an E rating (except where upfront costs were required).

Now properties with an Energy Performance Certificate rating of F or G are classified as ‘sub-standard’.  From April 2018 agents and landlords must not grant a lease on a sub-standard property.

From April 2020, landlords must not continue to let-out sub-standard properties.  Currently 330,000 buy to let properties stand to be affected across the UK.

If you are in doubt about the rating of your property, you should validate that you are rated ‘E’ or better.  Where the rating is F or G, remedial works must be specified, scheduled and completed over the coming year.

Who will look after Oxford tenants’ interests after the tenant fee ban?

As is well known to regular readers, I am opposed to the government’s plans to interfere in the private rented sector by introducing a ban on fees charged by letting agents to prospective tenants.  Earlier this week, I attended the Association of Residential Letting Agents (ARLA) annual conference.  During a moderated debate, Baroness Hayter of Kentish Town (a Labour peer) expressed the view that it was inappropriate for letting agents to act for both their landlord clients and their prospective tenants.  She made comparison with the legal profession to illustrate her point.

When challenged by the question who will act for the tenants, the Baroness stated that they could act for themselves.  A response, which demonstrated how removed she has become from the realities of the private rented sector.

In Oxford, like many other University cities, tenants for private rented homes are drawn from a wide spectrum of socio-economic background, nationality, age and, experience.  Many are new to renting, and don’t properly understand the law, their obligations, the landlord’s obligations and how to ensure that they minimise the likelihood of deposit deductions at the end of their tenancy through their actions throughout the tenancy period.  Many have limited financial means, and many have guarantors who ultimately bear the financial responsibility for their tenancy.  Many guarantors do not understand their own risk and how that risk can be mitigated by the tenant’s action during a tenancy.

Good letting agents recognise that the more they help prospective and current tenants to recognise their obligations to look after the property, being attentive to routine matters such as ventilation, cleaning, refuse management and general condition, the more they are acting to protect themselves financially.  This advice is reinforced during a tenancy via regular property inspections identifying actions that if taken now, to avoid them worsening and resulting in damage. Such agents also have an obligation to advise prospective tenants prior to the start of their tenancy to ensure that they request any specific furniture or provision they require to be made by the landlord as a condition of signing an assured short-term tenancy agreement, and to ensure that the landlord specifically commits to such provision prior to them signing.  Good agents will assist tenants to understand the deposit protection and deposit return process, detailing the factors that can result in deposit retentions, so tenants are equipped with the facts they need before they are committed to a contract.  All landlords and their agent are obliged to ensure prospective tenants have a right to rent, checking their legal status to reside in the UK and ability to enter into a contract.  And, good agents insist that a tenant can afford the required rent requiring their credit, income and employment status to be confirmed.

So, are these agent activities purely to benefit the landlord?  Or, do they benefit both parties?  It is clear to me that that an agent’s services are of material benefit for both landlord and tenant.  For some tenants, particularly foreign nationals visiting and renting in the UK for the first time, young first-time renters and young families needing to stretch themselves to accommodate growing families, the agent’s services can be of particular value.

So, if as Baroness Hayter suggests, letting agents should act purely for the landlord, who will act for the tenant?  Will tenants see the value to taking separate advice?  Will they be able to afford to pay for 3^rd party advice? And, will agent services change subtly over-time, becoming less consensual and a little more adversarial?

Will more landlords choose to skimp on affordability checks due to the cost transferring to them?  If yes, it seems likely that both landlords and tenants will suffer as more tenants over-stretch themselves and struggle to pay rent.

Of course, there is no firm answer to these questions, but my own experience suggests that prospective tenants will not pay for advice from a 3^rd party.  Whilst good landlords and their agents will recognise the value of the services provided to tenants, some will no longer recognise the importance of tenants understanding their obligations and being well-informed of the risks involved prior to entering a tenancy agreement.  If I am correct, there will be an increase in arrears, repossessions, and deposit disputes/retentions, which will far outweigh the financial impact of fees for tenants.

Finally! Some good news from the government for Oxford landlords regarding Client Money Protection

Good afternoon folks,

 

So, fresh from our recent visit to yesterday's ARLA conference at the Xcel in London, I bring you all some truly wonderful news regarding the latest government announcement relating to Client Money Protection in the UK......

 

 

PRESS RELEASE: David Cox, Chief Executive, ARLA Propertymark comments on today’s announcement that the Government will be introducing compulsory client money protection (CMP) for all letting agents: 

 

"The Government has finally accepted ARLA Propertymark’s calls for mandatory CMP. This is an argument we have been making for some time alongside Baroness Hayter and Lord Palmer. Working together we have managed to convince the Government of the merit of compulsory CMP. It’s a campaign that’s taken over two years to come to fruition and is a clear step forward towards a more regulated industry; akin to others such as solicitors or travel agents. CMP safeguards landlords and tenants in the event that agents misappropriate their money. With the ban on letting agent fees on the horizon, this is more important than ever before, so we are very pleased the Government has agreed to take it forward.

“We welcome the review of CMP undertaken by Baroness Hayter and Lord Palmer, and wholeheartedly agree with their recommendation to mandate CMP for all letting agents. We look forward to the Government’s response to Baroness Hayter’s parliamentary question tomorrow afternoon and hope to see the Government take forward ARLA Propertymark’s campaign to improve the industry by safeguarding landlord and tenants’ money through mandatory CMP.”
Baroness Hayter, said:

“The working group, chaired by Lord Palmer and myself, looked carefully at whether CMP should be mandatory for all agents handling client money. The evidence was overwhelming, and we recommended the government use its reserve powers to implement this. We are therefore delighted that the Government has accepted our recommendation as it will ensure tenants and landlords alike are provided with extra security in the lettings process. May I also extend special thanks to ARLA Propertymark for its role in marshalling the industry to back the measure and for providing the working group with real ‘on the ground’ evidence for why mandatory CMP is so desperately needed.”

In short this new measure will take a very significant step towards flushing out rogue agencies in our market looking to side step important landlord and tenant issues particularly ignoring the principle concern of ensuring their money is safe.

You will of course be reassured to know that we have been operating under client money protection for many years, recognizing its importance to our clients and significance to our standing as a leading agent in the Oxford market.

With us you are safe already!

For more on this please feel free to call me for a chat.

Richard

Don’t miss the opportunity to save money

The last meeting of the Bank of England’s (BoE) Monetary Policy Committee had their first split-vote for several months when agreeing that interest rates should remain at 0.25%.  It is clear that the pressure is growing to revise interest rates back up to 0.5%.

Since their meeting, UK inflation figures have been released indicating that over the last month inflation has risen above the BoE target of 2% registering 2.3%.  This is the first time the target has been breached since November 2013.

Why is this important to Oxford’s landlords?  Because, once the BoE base rate rises from 0.25% mortgage rates will follow immediately.  Landlords have a closing window of opportunity to lock-in historically low interest rates and save themselves money.

Why is now a good time to minimise costs?  Because, the new rules relating to the tax treatment of mortgage interest rate payments are to be phased-in from 6 April 2017.  These changes, which will bite progressively over the coming 4 years, will increase landlord costs materially.  Taking time now to remortgage could off-set the increased cost in tax, helping to insulate landlords from higher tax charges. 

Remortaging can also be a great way for landlords to release capital from their properties for further investment and/or to fund maintenance and renovation works.

Many landlords know they should look to optimise their mortgage arrangements, but either can't be bothered, or feel a sense of loyalty to their long-term lender.  Now is no time for apathy or misplaced loyalty.  Your costs are going to rise and you need to mitigate the losses.

As a rule I try not to use this blog to promote my own lettings business, but on this occasion, I will make an exception, as I believe we are well placed to help readers to investigate this opportunity quickly and conveniently. 

Martin & Co, Oxford have partnered with L&C Mortgages, the UK's largest fee-free mortgage broker. L&C has a panel of 88 mortgage lenders coving private, buy to let and corporate mortgages.  You will be able to get expert advice at the end of a phone when it suits you. Their expert advisers are on hand 7 days a week, and L&C will manage a full search of the mortgage market so you don’t have to. Over 1 million people have gone to L&C for fee free expert mortgage advice, so we believe that you can trust them to help you, too.

Either drop me an email on info@OxfordPropertyBlog.co.uk to request a call from L&C, or call L&C directly on 0800 923 2045 quoting Martin & Co, Oxford.

Oxford's landlords need to prep for the future ban on fees charged to tenants by letting agents

In a written answer to a question tabled in parliament, housing minister Gavin Barwell has confirmed that consultation on the government’s proposed ban on letting agency fees levied on tenants in England will launch “in the spring.”

Barwell says his government “is committed to building a strong and safe private rented sector, which provides security and stability for both tenants and landlords.” 

He goes on to say that the government “announced at the 2016 Autumn Statement a ban on letting agent fees paid by tenants, to improve competition in the private rental market and give renters greater clarity and control over what they will pay. The government will consult in the Spring on the detail of implementation.”

“We will consult on a range of measures to tackle all unfair and unreasonable abuses of leasehold and consider further reforms through the consultation to improve consumer choice and fairness for leaseholders” says Barwell.

Finally, he adds, “An increasing number of private tenants are happy with their tenure and standards are improving. We are determined to ensure all sectors of the housing market provide decent homes.”