Predictions for the 2010 Property Market

At this time of year, every other question I am asked is "So what do you think will happen in the property market 2010?"

Like you, I don't have a crystal ball, so my predictions are based on my opinion of the trends I have seen growing in 2009 and looking at the medium to long term changes in the industry.

So, SurreyLets Sally predicts....

1) More sales stock will come onto the Market in spring 2010 inspired by the reports of property price increases in Autumn 2009. Expectations will be high.

2) As more "Reluctant Landlords" reach the break clauses in their Agreements, they will be putting the property on the market for sale. The over supply of properties that forced rentals to drop will be no longer and the lettings market could see a shortage of rental stock pushing the prices up, though not to the peaks of 2007

3)The increases we saw in sales prices in the Autumn of 2009 will show this was a blip in statistics and whilst properties will sell, the prices will increase slowly and steadily from the bottom of the market, but the increases from Autumn that were borne out of a shortage of supply will not achieved.

4) Long Term rentals will continue to grow in popularity and be viewed as a sound long term plan as an alternative to home ownership.

5) The Buy to Let market will be a growth area with many first time Landlords entering the arena. Most first time Landlords will be people in their 40's who having sold their home will plough the equity into a small portfolio and opt themselves for a long term rental as part of a wealth management scheme. This should feed the rental market with much needed stick in the flats and family homes market.

6) The Corporate Lettings Market will continue to see a decline in corporate Lets as several companies are paying home allowances instead. Once in charge of their spending families will be more prudent in negotiation for properties and this will continue to affect rental prices down in the 5 - 8K pcm market. Whilst several companies are now recruiting from overseas, the higher budgets are in short supply.

As mentioned at the beginning of the blog - this is just my opinion based on trends I am seeing in the Surrey Market place.

I would love to hear your comments and predictions for 2010..........

SurreyLets December Newsletter

Please Click Here for the DDecember Newsletter
http://archive.constantcontact.com/fs079/1102643164363/archive/1102860749361.html

RENTALS SET TO RISE

Some good news for Landlords - Its looks like rents are set to rise next year as the number of properties put on the rental market droped to levels not seen since 1998.

Rental prices initially dropped due to the influx of property entering the rental market from "Accidental Landlords" who did not want to sell at the bottom of the market combined with many investors simultaneously holding on to their properties.

However with the late summer and autumn increase of sales with several reported price increases some investors and most reluctant landlords are now selling and therefore the over supply in the rental market that initially pushed rents down, is disappearing.

This, of course, is impacting on prices and tenants no longer have as strong a bargaining power as they did."Here at SurreyLets we keep our finger on the pulse and watch local treads carefully thus enabling us to give you realistic relevant advice when it comes to Letting out your property.

If you are thinking of letting or have a property to let, I would be delighted to help you. Please call SurreyLets on 01483 282 470

The Prepared Negotiator

Having worked in the Lettings industry for a long time you realise that on the whole, Letting (and Sales) Negotiators are often ill prepared when conducting a viewing.

It has always been my aim to ensure a Negotiator is sent out with:

a) Business card and set of details
b)The Negotiator Essential Briefcase

Its my opinion that Negotiators should be able to show every property in its best light. This becomes critical as the winter months approach.

A negotiator should always arrive 5 minutes before a viewing, lamps and lights put on, a squirt of air freshener, any external doors you need to go through unlocked and ready for access. Preparing a property to show it at is best potential is key.

Essential Briefcase contents:

Air Freshener - A quick squirt of forest pine can blast away the smells of an empty closed up property, smells entice memories, musty is off putting.

Torch - As night falls there are dark spots that make it difficult to even find the porch light switch. Its essential that in a dark spot an outside light is on before the viewing commences for the Negotiators safety and so a client is not put off because they feel concerned about the dark. This is not limited to rural areas.


Shoe Covers - I am amazed that agents do not insist all staff have these for their Negotiators and their prospective tenants. In the wet weather even a good wipe will leave some debris on the shoe and not everyone wants to take their boots off when its cold. Shoe covers save any embarrassment and more importantly protects the owners carpet from dirty footprints.

WD40 - For the tricky lock or the rusty bolt on the back gate or shed.

A Light Bulb - When you show the property in the day you may not have noticed there was no hall light - a prospective tenant needs to be able to see and dark properties are not as welcoming.

A Compass - For the inevitable "which way is the garden facing?" question.

Box of Tissues - Anyone who has been in this role will know that at some point someone wants to use a loo in a property. If the property is vacant there may not be loo roll. It makes you stand out from other agents if you are prepared.

Camera - If you spot something you think your client needs to be aware of from wasp nests to leaks- a photo now saves another journey later.

Paper, marker pen and sticky tape - maybe leave a note on a communal door if you want to nip up to the flat before hand.

I know this may sound excessive, however being prepared and being able to cope with any situation makes the difference between a poor agent and a good agent. It shows a level of professionalism and that the Negotiator is taking pride in ones job.

Responsible referencing

The Property Ombudsman has reported a surge of complaints relating to tenant references thus indicating that some Letting Agents are failing to meet their obligations under the Property Ombudsman's code of Practice.

Christopher Hamer was recently quoted for an Article in The Negotiator magazine, in which is stated " I am dealing with a significant number of cases bought by landlords who are concerned about the reference details provided to them by Letting Agents. This reinforces the importance for any letting agent to firmly understand what their obligations are under the Code of Practice and what they should see as best practice if they are not members"

Sally Asling, director of SurreyLets agrees that referencing is not always everything it should be in the industry when agents attempt to cut outsourcing costs and take referencing themselves.
"We live in a world now where financial information is all stored and credit history is ever important. Agents not doing credit referencing are missing a hugely important chunk of detail that is essential. In my opinion whist Christopher Hamer stated in his comments in Negotiator magazine that he believes a bank reference is necessary, I would disagree. Money in the bank can be here today and gone tomorrow. What landlords need to know is if the applicant is credit worthy, and for that it needs to be outsourced to a specialist referencing company."

"At SurreyLets we outsource our tenant referencing to Endsleigh who do a full comprehensive check on every tenant. This includes the following:

Affordability Check - Income validation score indicates the degree of confidence in the income stated by the applicant. Affordability of the rental share using the income validated by the income references

Authentication - Incorporates Voters Roll check and Experian's Authentication score

Adverse Data - Public information check for CCJ's, Bankruptcy and voluntary arrangements

Fraud Check - Score of Fraud Potential

Tenancy Score - The score indicates the likelihood of the applicant to default on their rental payments

Income reference - Where the applicant is employed, self employed or retired, income and employment

Landlord reference- Previous Landlord is contacted to establish if there was any payment issues or any dilapidation's were recorded

Decision - An automated decision using sophisticated scoring technology to increase decision speed

Sally Asling further adds "Once a tenant has been referenced and accepted by this procedure, Endsleigh are able to offer the Landlords a rental insurance for a year for under £100.00 (terms apply). I am confident that our references are thorough and that the Landlord is then able to make an informed decision "

Fabulous House in Effingham Junction / East Horsley to rent....

SurreyLets are proud to have on the market a modern, bright and spacious family home situated within a short walk of Effingham Junction Train Station and set in the catchment area for the Lord Howard of Effingham School.

As you walk into the entrance hall of this property you get a sense of space and proportion with oak flooring, high ceilings and doors from the hall that invite you to the rooms beyond.

The lounge is triple aspect and for me personally has imaginings of a family Christmas as the room with its high ceilings and good proportions scream a real Christmas tree! I don't know why, but many of the applicants I have shown have said the same things. Its a great space. Downstairs houses a modern oak and black granite kitchen with space for a generous proportioned breakfast table - perfect for family living.

Downstairs additionally offers three further rooms and a modern spacious downstairs shower room. The three further rooms could be a playroom, a study and a 4th bedroom -although this generous space is totally flexible and enough to satisfy a variation of uses.

Upstairs the high ceilings are still there so the feeling of space stays with you which is often not the case in a chalet style home. The Master Bedroom is generous in size with a feature window. There is inbuilt storage cupboards that provide practical storage and in the eves storage surrounding the room. The Master Bedroom has an en suite shower room with again is spacious and modern.

Upstairs is a further double bedroom of good proportion and a small single room which is a child's delight due to its in the eves build. The Family Bathroom is well laid out with both a shower cubicle and a bath.

Externally the property has an enclosed rear garden, an integral garage and off road parking for 3 or 4 cars.

At £2500pcm this represents excellent value and is available immediately - if I were looking right now I would be tempted to be in before Christmas (think back to the lounge!!)

If you would like to view this property, please call SurreyLets on 01483 282470 or e-mail us at info@surreyletsonline.co.uk

Lettings

Read the Latest SurreyLets E-News here SurreyLets October E-News

The Importance of Letting Agents holding Client Money Protestion Insurance

Letting Agents once again in the News

September bought Letting Agents once again to the forefront of the news. Geoff Lavery who had a Martin and Co franchise owed close to 100K to landlords and Tenants and it is thought that most of the money being tenants deposits may not have been covered by a tenancy deposit protection scheme. Another agent also owned by Lavery running between May and July also ceased trading. This firm was a member of the National Approved Letting Scheme (NALS) and is the fifth case where problems relating to tenants’ money have been uncovered in the Martin & Co franchise network.

How good is the Letting Agents Regulatory Body?
One can only hope there was client money protection insurance in place for the poor Landlords that will have to contractually repay the tenants their deposit. Martin and Cos CE Ian Wilson was critical of NALS, which he claimed had failed to produce evidence of its client money protection scheme. He also said that NALS had continued to accept Lavery’s membership, but had apparently not examined his accounts. He also said that while NALS had suspended Lavery’s insurance once alerted, it had failed to put notices in the local Chester press to warn landlords and tenants.

Client Money Protection Insurance
SurreyLets is a member of A.R.L.A. To gain membership to A.R.L.A we have to hold Client Money Protection insurance and a valid certificate of this is held by the governing body at all times. In addition to this there is a stringent accounting reporting system in place to ensure the member is following its bye laws that are in place to protect Landlords and Tenants. A.R.L.A are incredibly strict with their members about current valid documentation.

What a prospective Landlord should look for
As a prospective Landlord your agent should be showing you proof of its membership to a Professional Body and evidence that it belongs to The Property Ombudsman – after all, you want to ensure BEFORE a contract starts that there is readdress if you are not happy with the service provided or if you are concerned about the protection of your money.

What deposit scheme should my agent be using? What questions should I as a Landlord be asking?
There are no rules as to which deposit protection company an agent should use. The DPS is a free service to Landlords and Tenants and Landlords and Tenants can check on line to ensure the deposit is protected. The TDS and mydeposits.com work in a similar way, but these schemes are “Insured” which means the Agent may hold onto the deposit. This is where it is crucial to ensure that the Agent is holding full client money protection insurance because if they don’t renew their insurance and hold your money without Client Money Protection, you are putting your money at risk. When monies are sitting in a client account – it only puts temptation in the way if an agent is struggling to pay the bills.

SurreyLets uses the DPS where the money is passed over and held by DPS for the tenancy duration. SurreyLets director Sally Asling believes this demonstrates to the client that there is a degree of transparency as to where the deposit is, and as an agent we are operating best practice in not holding onto deposits longer than necessary as the guideline for dispute are transparently clear”