We’ve got reason to celebrate after a bumper April with a total of 42 properties let!

April proved to be a busy month in the Bricknells office – as we move into May, we’re looking back and celebrating the fact that we let an impressive 42 properties during the last 30 days.

It’s been an incredible month and we’re very thankful to the whole team.

There’s a reason so many tenants and landlords choose Bricknells.

If you’re a landlord, our detailed and expert service can help you rent your properties with minimal fuss. Choose from several options such as our full managed service or our let only support. Whether it’s a single property or a whole portfolio, we’ve got the ability to help you get the most out of your investment.

If you’re a tenant, head over to our property page to view all the latest properties that we have available to rent. There are always so many great options across Rotherham, Sheffield and sometimes further afield.

If you do have any questions you can also get in touch with us here.

Here’s to another successful month for Bricknells and our valued landlords and tenants!

The rents paid by Rotherham tenants are now standing at £999 per calendar month (pcm), a rise of 1.55% year on year and 0.15% lower month on month.

This is an attention grabbing figure but it actually masks stark differences in the various parts of the Rotherham rental market. It’s an average figure, after all!

Demand in Rotherham for high quality family homes with two or three bedrooms in good school catchment areas remains really robust due to tenants wanting access to the schools. Places with good transport links have also made certain areas popular. However, we have noticed a drop in demand (and thus rents achieved) for property where the landlord hasn’t kept the property fresh in terms of decoration, carpets, replacement windows and poor heating.

So, what does all this mean for Rotherham landlords?

With the new tax rules for landlords, many believed that the number of rental properties would narrow throughout 2017 as landlords sold up their buy-to-let properties and looked to invest their money elsewhere, but evidently this hasn’t happened (yet). At the moment landlords seem to see property as a safer investment than moving money elsewhere (like the stock market). Demand remained strong in 2017 for Rotherham private rental properties, meaning the rents being achieved were at a decent level for landlords.

Mortgage rates remain at a good level – we’ve actually seen a popular high street bank offering a 5-year fixed rate for buy-to-let landlords with a 40% deposit/equity for 2.17%. Many will remember when mortgage rates were at 15% – this is comparatively cheap money!

Property values in Rotherham, specifically at the lower of the market (where buy-to-let landlords tend to buy their rental properties) have risen in the last 12 months. Flats/apartments have risen in value by 3.89%, whilst terraced properties have risen by 1.70%.

As a result, the yields the landlords are achieving remain squeezed but most landlords feel assured that as capital growth remains at a realistic figure and long-term rents are on the rise, the overall corresponding annual return on investment has stabilised and is now starting to grow.

With additional people seeing renting as a long-term option, even with the challenges of the new tax regime, Rotherham landlords, with the support of a good advice and opinion, should continue to see renting as a good investment vehicle.

From April 1st 2018 landlords will no longer be able to let properties in the private rented sector which have a minimum energy performance rating of below an E on their Energy Performance Certificate (EPC).

An EPC is required for all properties when constructed, sold or let. However, for landlords, it will now be unlawful to rent a property which does not attain the minimum E rating.

Landlords found in breach of this requirement may face penalties of up to £4,000 so it is vital for all to be aware.

What is an Energy Performance Certificate?

The Energy Performance Certificate is the assessment of your property’s energy performance. It is conducted using government-approved software by an assessor.

The assessment for an EPC is based on the construction, type of dwelling and the relevant fittings (such as heating systems, insulation and double glazing) – it doesn’t have anything to do with property valuation or the overall condition of your property. Just because your property is well maintained and has been kept in good condition, does not mean that it will achieve a high EPC rating.

An EPC not only details the energy performance of a property but also offers advice regarding what you can do to improve the rating.

What do landlords need to know?

There are two dates for landlords to factor in. From the 1st April 2018 any new lets or renewals of tenancies cannot have an EPC rating of less than E.

This will then apply to all existing tenancies with longer term contracts from the 1st April 2020.

If you have a property that you let out which is currently rated F or G then it is necessary for you to carry out energy efficiency improvements within your property in order to ensure that it hits the E rating.

Bricknells: extensively covering all aspects of property rental

Navigating the world of EPCs can be a complex process. There are 18 in-depth questions on the Ministry of Housing & Communities EPC register FAQ page just to get started.

This complexity is another reason why landlords use Bricknells Rentals oversee their property portfolios. We take on the ongoing requirements needed to ensure your property is fit to be rented out, covering all aspects of property rental with our fully managed service.

If you would like more information about EPC ratings and how these changes may impact your properties, please get in touch.

Likewise, if you are a landlord looking for an agent to manage your properties, we would love to have a conversation with you. You can contact us via email or phone.

At Bricknells, we regularly come across landlords who mistakenly think that all it takes to manage a rental property is to collect the rent each month and to take care of the odd bit of maintenance now and again. Sounds simple doesn’t it? Unfortunately, this is far from the reality!

What these landlords don’t realise is that there are many more day-to-day tasks that need to be taken care of in order for them to stay safe and on the right side of their legal obligations.

In this article we want to open the eyes of landlords to their responsibilities and to all the things that we at Bricknells Rentals take care of so that you don’t have to.

We’ve spoken to many landlords in South Yorkshire who dismiss the work of a letting agent with comments like “I don’t need a lettings agent to manage my property – it won’t take much effort…”, “I can manage it myself, all I need to do is collect the rent…”, “a family member can give keys to the maintenance contractors”.

Unfortunately, the real world isn’t quite so straightforward!

There are over 150 pieces of legislation related to letting property, from the Housing Act 2004 to the Immigration Act Bill 2016 to the Consumer Protection Act 1987.

Are you up to date on current legislation?

Are your properties compliant?

Here are just a few of the things we get up to when we manage properties for our landlords (this article would be far too long if we listed everything!):

• We test and record the smoke alarm when new tenants move in.
• We provide proof of the issuing of the gas certificate.
• We handle the health and safety checks on all contractors – you may have heard of the recent £88k fine issued to a landlord who didn’t follow this regulation. We ensure that all contractors are suitably qualified and indemnified.
• We ensure that your gas or electric certificates are up to date.
• We ensure that you follow all the rules under the Right To Rent checks
• We help you fill your property with new tenants through our advertisement network.
• We know the difference between an ‘allowed’ and ‘not allowed’ passport or visa when you check prospective tenants and conduct follow up checks – you can be imprisoned if you get this wrong!
• We issue and prove that the most recent How To Rent Guide has been issued to new tenants.
• We keep a record of all maintenance – we keep records of reports from tenants and what action was taken. This ensures that you never lose the right to issue a section 21.
• We register the deposit correctly by issuing valid deposit registration documentation on time.
• We handle the calls, visits and notification of any insurers in the event of rent arrears and take care of the commencement of legal proceedings if necessary.
• We take care of all of the annoying out of hours calls!

And that’s just the tip of the iceberg!

This is far too much responsibility for that family member you were claiming could help you out from time to time! It’s far too much responsibility for you as you juggle your full or part time job and other commitments. The so-called “let only” arrangement is a myth.

So maybe it’s time to let Bricknells look after your needs – each of our landlords are equally important to us. Our fully managed service takes all the hassle out of owning rental properties and gives you peace of mind that everything is taken care of. Any other solution simply doesn’t work for the majority of landlords who already lead busy lives.

We’re ready to talk to you about your property. Get in touch with us today by calling 01709 365584 or emailing enquiries@bricknells.ohsositepreview.co.uk

The degree to which young Rotherham people are locked out of the Rotherham housing market has been revealed in new statistics.

A Rotherham landlord was asking me the other week whether homeownership rates in Rotherham in the early to middle-aged adult age range had affected the demand for rental property in Rotherham over the last few years. I knew anecdotally that it had impacted the Rotherham rental market, but I wanted some cold hard numbers to back it up.

In Rotherham, most people would say that those born more recently are drastically less likely to own their own home than those born a decade earlier. If we roll back the clock to the Millennium we’ll see that this in the case.

How have things changed since the year 2000?

In the year 2000, 50.2% of Rotherham 28-year olds (born in 1972) owned their own home, whilst a 28 year old today (born in 1990) would have a 26.8% chance of owning their own home.

Next, let’s look at someone born ten years before that. So, going back to the Millennium, a 38 year Rotherham person (therefore born in 1962) would have a 74.1% chance of owning his or her own home and a 38 year today in Rotherham (born in 1980) would only have a 57.7% chance of owning their own home.

Since the Millennium, overall general homeownership in the 25 to 44 year old age range in Rotherham has reduced from 68.58% to 49.59%

If you look at the graph below, split into the four age ranges, it is quite clear to see the changes in Rotherham. The fact is the figures in Rotherham show the homeownership rate has proportionally fallen the most for the youngest age range (those aged 25-29 years old) compared to the other age ranges.

What factors may be causing this deterioration in homeownership? Those born in the 1980s and 1990s are going to university and therefore entering the job market at an older age. However, most national homeownership statistics of different age groups with the same number of years after they left education (rather than the same age) give an identical dip to the graph above.

So, what does this mean for the rental market in Rotherham?

There’s only one thing.

With the local authority not building council houses, housing associations strapped for cash to build new properties and the younger generation not buying… there is only one way that these youngsters can obtain a roof over their head and have a home of their own… through the private landlord sector.

This is why we take our job as a lettings agents so seriously.

With new tax rules and up and coming licensing rules, Rotherham landlords will have to work smarter to ensure they make the investment returns they have in the past. We aim to assist and help landlords in providing this important service to those who need a roof over their heads.

If you are a landlord thinking about expanding your portfolio or if you are wanting to get involved in the property market, please feel free to get in touch with Bricknells. We would be happy to give you any advice that you may need.

Bricknells Rentals are proud to support the RTSA as they present Dr Seuss’ Seussical The Musical at the Civic Theatre in March.

Seussical is a fantastical, magical, musical extravaganza with all of the favourite Dr. Seuss characters!

Book your tickets today and make sure you keep your eyes opened for a Bricknells advertisement in the programme.

Date: Tuesday 20 to Saturday 24 March 2018
Location: Civic Theatre
Time: 7.15pm and 2.15pm Saturday Matinee
Produced by: Rotherham Teachers Student Academy
Price: £13-£14

Find out more information and book your tickets here.

Invitation to the  ‘ROTHERHAM LANDLORD SEMINAR’ at Bricknells Rentals Office, 1st Floor Cotswold House, Clifford Lister Business Centre, Bawtry Road, Wickersley. Rotherham S66 2BL

Date: 25th January 2018
6pm – 8.30pm

At Bricknells we realise that the Lettings business is getting tougher for all those involved. New regulations, withdrawal of mortgage interest relief, the prospects of tenancy fee bans and the likelihood of longer tenancies all impact us all one way or another.

With that in mind and to provide a forum in which we can raise concerns and seek answers we have arranged a ‘Rotherham Landlord Seminar’ at our new offices in Wickersley.

The event will be directed by Christopher Watkins, UK Property Market Journalist who will be talking about how the Rotherham Buy to Let market has performed over the last 20 years against the rest of Yorkshire.

We are setting the evening on the same lines as BBC Question time and as such we have assembled the panel as follows:

Raj Shah – Financial Advisor, Blue Wealth Capital
Russell Scholes – Mortgage Broker, Scholes Financial Management
James Parden – Head of Property Litigation at Taylor & Emmet
Marie Lang – GBAC Accountancy and Business advice

The evening starts at 6.00pm although you are invited to attend from 5.30pm for refreshments and to network with the panel and others present.

In order to ensure a lively discussion we are inviting questions from the floor.

As space is limited if you wish us to reserve a seat please confirm you attendance to:

chris@bricknells.ohsositepreview.co.uk

Or call 01709 365584 / 07743 702739

Attaching or stating your question should you wish to pose one to the panel.

First time landlords often come to us feeling pretty fearful of the letting process. This is no surprise – even more experienced landlords can get frustrated!

At Bricknells Rentals, we recognise these fears and frustrations in order to most help our landlords. By listening to landlords, we have aligned our procedures to reassure and mitigate those items of greatest concern to those who have invested in the property market.

So what tends to worry our landlords?

• Bad tenants
• No contact from the agent
• Late payments
• Lack of knowledge of the rental process
• Cost of contractors
• Damage to their property
• Lack of trust in the agent
• Agents fees
• Fear of losing on their BTL investment
• Government legislation
• Interest rate rises
• Tax changes

At Bricknells we strive to give a good service that aims to address all of the items above.

So, if you are looking for a lettings agent to manage your property in Rotherham or Sheffield why not give Chris Holmes a call? You can contact Chris on 07743 702739. Chris will be happy to make an appointment to discuss if there is an opportunity for us to assist you.

Bricknells have been a letting agent for over 17 years and we have experienced almost everything the industry has to offer. Please don’t hesitate to call – whether it’s for a friendly chat or you would like to take advantage of our help and advice.

Remember, we’re here to help if you need us!

Bricknells Rentals
01709 365584

I read an article from HouseSimple.com entitled: “Stuck in the past: The 17 Towns where house prices haven’t recovered from the financial crisis.”

Guess what? Rotherham was included in the list!

• In June 2007 average house price was £133,572
• In June 2017 average house price was £128,544

That’s a drop of -3.8%

So I thought I might investigate further:

I do agree with the findings of the article that several areas in the UK are experiencing house prices lower than the time of the credit crunch (August 2007) and the financial crisis of 2008.

Not unreasonable given the circumstances

However, a 3.8% drop from 2007/8 peak doesn’t seem unreasonable.

The most recent data from Land Registry has stated that property values in Rotherham and surrounding areas were 1.58% higher than 12 months ago and 9.12% higher than January 2015.

In the Rotherham property market, the number of properties available for sale has dropped significantly and this does have a positive effect on the short-term Rotherham property values as buyers have less choice and the dynamics of supply and demand take hold.

I suspect the uncertainty associated with the Brexit is encouraging people to stay put and improve their current accommodation rather than taking the risk to move.

However, even with this short term decrease in the number of properties for sale in Rotherham, I believe property prices will remain stable and strong in the medium to long term. Remembering property investment is a long-term strategy and the Yorkshire & Humber region is predicted to achieve a 10% growth (Savills) over the five years from 2017 to 2021.

The reasons why

If we look in detail at this imbalance we see that the number of properties on the market is way below the peak in 2008 when there were 1260 properties for sale compared to the current level of 954. Prices dropped by nearly 20% in the credit crunch years of 2008/9.

Less people are moving than a few years ago, meaning less property is available for sale. Fewer property for sale means property prices remain relatively high for a number of underlying reasons.

The increase in the private rental market has meant that stock held by private landlords are not sold as often as owner occupiers, thereby removing a number of properties out of the housing market selling cycle. Nevertheless, I will be interested to see how the recent tax changes will affect landlords, particularly those in the higher tax bracket and whether some landlords will exit the buy to let market.

The lack of local authority rental housing will further support the demand for private rented housing as people will always need a roof over their heads and if they cannot buy and the councils are not building anymore then only BTL landlords can meet the demand.

The tightening of mortgage lending rules and wages not keeping up with property prices mean that renting for some becomes the only viable option despite mortgage interest rates being low.

Stamp duty is higher compared to 10 years ago meaning that it costs more to move. This, coupled with the UK’s maturing owner occupier population, means that older people are less likely to move compared to when they were younger.

Finally, the underlying reason that we have a restricted supply of homes is simply that there are not enough being built. We need 240k houses a year to be built in the UK, but currently we are building just 145k.

A thought to conjure with is if we built more bungalows this would allow the older occupiers to downsize and thereby give some liquidity in the market. However, the problem here is that bungalows take up too much land to make them profitable for housebuilders and regrettably the impasse at the top of the property ladder will remain.

Improving the town centre will have a positive impact on Rotherham

Reviewing the article, it seems that most of the negative equity towns are in the North as oppose to the ‘Biggest Riser’ towns being mainly in the South and East.

I think desirability is another factor that influences an area’s property values. Centres of employment, university towns with high student demand, good connectivity and the positive perception of a place all increases the demand.

That’s why I feel it is important that Rotherham moves forward with its plans to develop and improve the town centre as a vibrant and attractive hub making investment attractive and adds to the general prosperity of its population.

It is difficult to predict the future and the EU situation creating uncertainty does not help. However, with the stock market at high and possibly heading for a correction I still think property is a good buy and deals are to be had.

That is maybe why we are receiving more interest from investors from London and the South who are interested in the Rotherham property market.

So, in conclusion the low supply and high demand is currently sustaining the local market and it is hard to see how the supply will increase in the short term, unless we fall off the Brexit cliff with a hard Brexit and EU citizens (owner occupiers and renters) all return home, thereby dumping lots of properties onto the market in a very short period that will drive house prices down. Surely that won’t happen but it does show just how important the Brexit negotiations are and that we get it right.

Hope that gives some food for thought.

Best regards,

Chris Holmes

Follow Bricknells on Facebook and Twitter for the latest information or visit our properties page for all the latest properties available for rent.