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Hythe and Waterside – Latest News

Winter 2016 Newsletter

 

Welcome to our last newsletter of 2016. It has been a busy year that has seen a rush of buyers at the beginning of the year with the pre-stamp duty deadline.  The cut throat nature of the sales market at the beginning of the year has now levelled off as buyers seemed to have cooled off and are taking a more relaxed approached. 2016 has seen an increase in rental prices, especially for 2 bedroom properties which continues to be the most demanded rental property.

 

Brexit

 

2016 will no doubt be remembered as the year that we voted to leave the EU and we are pleased to report that we have not felt the housing market has had any impact from the decision in our area.

 

Block Management

 

We will be launching a block management department in the New Year so if you have a leasehold property that you feel would benefit from being managed by a local, competent and hands on company then please get in touch with me via email: gemma@hytheandwatersidelettings.com and I will be happy to discuss your management with you.

 

New Software Installation – Jupix

 

You may have noticed that Landlord statements are now in a new format. We have installed a new cloud based system called Jupix which will enable us to work more efficiently. The benefit for our Landlords is the ability to log onto ‘MyPropertyFile’ where you will be able to access your tenancy agreements, rental statements and inspection letters relating to your property. Tenants will have very similar access to their documents and rental account plus the ability to report maintenance issues 24/7 online. We will be in touch soon with Landlords’ log in details.

 

Future Legislation coming soon

 

By April 2018 all rental properties must be brought up to a minimum energy efficiency rating of ‘E’. This will involve new windows/heating systems for some landlords and we are already working with those landlords that it affects.

 

Buy-to-let mortgage & tax changes: what they mean for you

1. Stamp Duty:

Since April 2016 anyone buying a second home or a buy to let property will be subject  to a 3% surcharge on their Stamp Duty;

Property value

 

Standard rate

Buy-to-let/second home rate from April 2016

Up to £125,000

0%

3%

£125,000 - £250,000

2%

5%

£250,000 - £925,000

5%

8%

£925,000 - £1.5m

10%

13%

Over £1.5m

12%

15%

 

2. Capital Gains Tax

 

Landlords are also facing a change to the way they pay tax when they sell their buy-to-let properties. At the moment capital gains tax is due at the end of the tax year. But from April 2019 landlords will have to pay their capital gains bill within 30 days of selling a property. 

 

3. Tax Relief

The government has announced changes to the way buy-to-let investors are taxed that will make a dent in the amount people can earn from rentals.

At present landlords can deduct mortgage interest from their rental income before they calculate the tax they owe. So, if you earn £10,000 a year from your buy-to-let property and your mortgage interest costs £5,000 a year you would only pay tax on £5,000.

That’s a tax bill of £1,000 for basic-rate payers, £2,000 for higher-rate tax payers, and £2,250 if you are an additional rate taxpayer.

 

Over three years from 2017, the amount of mortgage interest tax relief landlords can claim is changing. You will no longer be able to deduct your mortgage interest before calculating your tax bill and instead will get a tax credit equivalent to 20 per cent basic-rate tax on this amount.

Going back to the example above, you’ll now owe tax on your entire £10,000 rental income. You will, however, get a 20 per cent tax credit for the £5,000 interest element, giving you back £1,000. So if you are a basic-rate taxpayer you won’t feel much difference, but if you are a higher rate taxpayer or additional rate taxpayer you will most certainly be worse off.

4. Mortgages: 

Lenders now adopt a tougher affordability test ahead of all these changes, and this is making it harder to obtain a mortgage for some properties. Many are insisting on a 145% rental stress test, and reducing lending from 80% to 75%. 

So what does all this mean for you?

Now your buy to let investment really does have to work hard to cover the additional taxes involved and higher rental expectations of your lender. So you need to choose your next purchase wisely. 

The changes will also make the accidental landlord (those who inherit for example) more likely to sell, releasing more properties into the marketplace, which would be welcomed by the first time buyer market and possibly ease the competition between first time buyers and prospective landlords.

It is not all doom and gloom though, there are some really low interest rates available for certain types of borrowers with lower lender fees, which help offset some of the additional costs faced by landlords.  We have also seen a relaxation of criteria over first time landlords, professional landlords and maximum ages, all of which demonstrate lenders commitment to buy to let mortgage lending. This is still an active and profitable market!

For any buy to let or residential mortgage advice please contact us for more information.

 

16-20 South Street, Hythe, Southampton SO45 6EB.

Tel:- 02380 018109  E-Mail:- info@tmp-mortgages.co.uk

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE

 If you have relatives coming to stay over the Christmas Period and are struggling for space, don’t forget our holiday rental properties which are based here in Hythe. Details can be found via the website: www.holi-lets.com.

 

  

Christmas Opening Hours

 

Friday 23rd December – 9am to 6pm

Christmas Eve – 9am to 12pm

Christmas Day – Closed

Boxing Day – Closed

Bank holiday 27th December – Closed

28th December – 9am to 6pm

29th December – 9am to 6pm

30th December – 9am to 6pm

New Years Eve – 9am to 12pm

New Years Day – Closed

Bank Holiday Monday 2nd January – Closed

Tuesday 3rd January – Normal business hours resumed

 

We wish you a Merry Christmas and a Prosperous New Year from all at Hythe & Waterside!

 

LOCATION LOCATION LOCATION!

 

WATCH... LOCATION LOCATION LOCATION!

Tonight at 8pm on Channel 4

Filmed with Kirstie Allsopp viewing one of our properties in Hythe!

Summer Newsletter 2016

 

& Watersie Estate & Letting Agents Newsletter                                                                                                Summer 2016

Rental Market Update

As widely reported, we have seen a housing shortage on the rental front mainly due to some landlords being worried about the effects of the new tax laws, which are on the horizon and wanting to consolidate. This shortage of rental stock drove the rental prices up.

 

The new 3% added stamp duty for all landlords who own more than one property had a huge effect, there was an   undeniable rush to purchase amongst the landlords that wanted to remain landlords by 1st April 2016, some increasing their portfolios to 15 properties (placing them in Ltd Companies), to avoid future stamp duty and the landlords which wanted to buy another 1, 2 or 3 properties were out in the market buying as well.

 

Post 1st April, we have seen a surge in the amount of rentals available as the buy to let properties came to market, thus creating a small surplus in stock, which has levelled out rental prices and in some cases seen a marginal drop in order to secure a quick let.

 

New Rental Regulations Update

October 2015 -Smoke & Carbon Monoxide Alarms

Every rental property must have a working smoke detector on each floor and a carbon monoxide detector where there’s a solid fuel burning appliance. These units must also be tested on the first day of the tenancy. As you will be aware Hythe & Waterside were already implementing these regulations so no action was required.

 

A New Regulation - Retaliatory Evictions Act

This means if an eviction looks like retaliation for maintenance problems, that a tenant has reported to the local council, then possession might not be granted.

 

February 2016 - Right to Rent Checks

We must check that every tenant has a right to be in the UK and if they do not, then a tenancy agreement can be ended.

 

How to Rent Guide

Every new tenant must be issued with this `guide’, it was created by the Government and contains useful information, aimed at tenants.

 

April 2016 - Energy Improvements

Tenants have the right to request energy performance improvements and the landlord cannot say no, but any costs have to be met by the tenant.

 

  New Stamp Duty Rules

 The new stamp duty changes that came into force on 1st April 2016 mean that anyone purchasing a second property is subject to an additional 3% Stamp Duty tax levy. If you are selling your main residence, you must re purchase another main residence within 18 months to avoid the higher charge on your own personal residence.

 

Purchase of Oakland Residential Lettings

This January we purchased a Hythe based letting agency from Jonathan Barnes who wanted to retire, `Oakland’ was run very similarly to our business so it was a very smooth handover and it has become a very positive bolt on for Hythe & Waterside Lettings and Oakland’s landlords and tenants.

 

Jenny Robinson from Oakland joined us with over 15 years’ experience, she has become a very integral part of the business, she is now our Accounts Manager, specialising in the subject that she qualified for many years ago and really enjoys and excels in.

 

ARLA Conference

In April 2016 Gemma Young attended the Association of Residential Letting Agents Annual Conference in London where guest speakers included:

 

The President of ARLA, Peter Savage commented:

‘The need for Landlords to use a licensed agent has never been greater’.

 

Michael Portillo, Ex MP & Deputy Conservative Party Leader commented:

He believes the next leader of the Conservative party will be Boris Johnson, because of his EU scepticism. He also believes the treasury are trying to choke the `buy to let’ sector because there has been a decline in home ownership for 25-35 year olds.

 

Rightmove stated:

That post the 1st April 2016 stamp duty deadline there was an unprecedented amount of new instructions that came to the rental market and that over 50% of  Rightmove leads were coming from mobile phones.

 

Brandon Lewis – Housing Minister commented:

`We have more housing being built, we have double the amount of FTB’s since 2010 and that 86% of the population want to own their own home. He believes the recent tax changes are fairer compared to other investments because a FTB can’t get an interest only mortgage with 40% tax relief and that property is still a good investment’.

 

The Housing Minister denied that Michael Portillo’s comment that the Government is trying to choke `buy to lets’. He is also against fixed rents, which are operated in Scotland.

 

Other comments:

The Government want to drive Rogue landlords out of the sector.

The House of Lords are discussing making electrical certificates a mandatory law. All Agents should have client money protection insurance.

 

Deborah Meaden (Dragons Den), commented:

That she rides horses every day leading up to the filming of Dragons Den because she believes it is important to be physically fit and it helps prepare her mind as well. She does not claim to be an expert in every business but she does ask lots of questions, which pushes her companies forward. She likes to achieve and overcome problems. A good quote of hers was `put yourself out there and things will happen, do nothing and nothing will happen’.

 Looking to increase your portfolio?

Despite the recent tax changes to landlords the demand for rental properties is still as strong as ever and we are becoming a nation of renters. In the last 30 years the amount of households in rented has doubled. This has occurred particularly in the last 10 years with 2 million new households entering the rented sector. Come and see Wayne in the sales office, he’ll find you a property for the right price, in the right  area  to  `buy  to  let’  liaising  with  Gemma  all  the  way  along,   and   then  Gemma will let the property for you as soon as the purchase completes if not before! Many of our landlords have already experienced this quick and easy service from your `One Stop, One Shop’ local Agent, it couldn’t be easier and a great way to protect your future income in your retirement. We also have a link with a great Financial Services Company in Hythe, who work on a `word of mouth’ basis and they are always happy to be linked into the process for advice and much needed figures to enable the whole process to take place.

 

 Callus Maintenance Manager & Inspections Clerk

 

 Robinson

conts Manager

Megan Lawrence

Junior Sales Negotiator

 

 

Landlord Feedback

We would be gravely amiss if we did not write and put on record our thanks for the extraordinary work and care that Wayne and Gemma have displayed in taking over our rental property and concluding its sale.

Gemma went above and beyond in her service to us, literally rescuing a complex situation from an exceedingly difficult and much less than scrupulous other Lettings Agency. She provided reports on the property, obtained the keys, which was no mean feat, and then set about advising us and organising how best to make the place saleable, including replacing windows and carpets. This was an extraordinary and indeed heroic effort, which we deeply appreciated.

Wayne too took over a tricky situation because the landlord of the leasehold property had disappeared, and there was a separate owner of the upstairs flat. He helped broker negotiations with the other owner and organised a number of works, including replacing the roof, damp proof works, replastering and repainting. The negotiations with the buyers took months, not helped by difficulties with solicitors on both sides. Wayne kept us in the loop throughout and did not waver in his goal of selling the property, despite all these difficulties, including remonstrating with the solicitors for both parties.

We are sure that you are very proud of your staff. We would simply like to reinforce that you have every reason to be so. As currently resident in Australia, we could not have achieved what Gemma and Wayne have done on our behalf. We are very grateful to them and to you as an Agency for this amazing level of service.

Yours sincerely,

Ian & Anne Coutts

 

 

Welcome Laura

We would like to welcome Laura Kennealy to our team.  It must run in the family as Laura who is the daughter of our Sales Manager Wayne has had a confident and successful career in the property industry for some time.  Having worked in both Southampton and Hythe.

 

Already Laura is proving to be a valuable member of the team and her enthusiasm for the industry is really shining through making her first sale in her first few days.  Along with Wayne Laura is looking forward to working with the vendors and buyers right through to handing over of the keys.

 

As well as an extensive knowledge of the industry, Laura having grown up in the Waterside area also has great feel and passion for the area which cannot be taught.

 

“I am so excited to have joined the whole team at Hythe and Waterside.  It is so good to be doing what I love for a family run company who actually take pride in what they do.  I am keen to get to know clients old and new and help build on the fantastic reputation that Hythe and Waterside already has."

 

You will find Laura sat at the front of house and she would happily welcome any visitors to pop by in their search for a property or perhaps wishing to sell their own.  You will be greeted in a relaxed environment where you will be able to sit and have a chat, ask any questions that you might have with no pressure.

 

If you would like to take advantage of a FREE Valuation, call Wayne or Laura on 02380 845434 to book your market appraisal.

 

We welcome Wayne to our expanding Team

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Sponsoring Hythe Community Fireworks for Hythe Primary School

This year we are proud to be sponsoring Hythe Community Fireworks.

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Hythe and Waterside - Money for Schools

Hythe & Waterside - Sponsors of SO45 ONLINE

Hythe and Waterside are sponsoring SO45 Online's annual Golf Tournament to find the best golfer in SO45 in aid of The Waterside Cancer Support Centre based in Hythe.
For more information on how you can get involved, please contact donna@hytheandwaterside.com

COMMUNITY GIVING

 

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