How’s the market?
Something we get asked a lot here at Amplo: “How’s the market” – whether you’re a landlord, letting agent or investor, we have a number of calls asking how the market is for both Buy-to-Let (BTL) and House of Multiple Occupancy (HMO.) It will vary depending on which agent you ask in the area; some may not manage HMO’s or may only take on a landlord if they have more than 5 HMO properties. Here at Amplo, the market is BUSY! (And boy are we grateful!) We’ve been onboarding a record number of landlords which means we have a range of rooms available across Crewe and Nantwich for prospective tenants that suit their needs; en-suite, off-road parking, superfast broadband etc…
As always, the BTL demand is high, higher now than ever; lockdown 3.0 has caused tenants to look for a bigger apartment, a bigger house… and amenities that weren’t important before, such as: close to parks and great places to walk, are now more important than ever.
So, as an investor, what do you need to know?
1) Location, location, location!
The property market in Crewe is split into two; close to the train station, or close to Bentley / Leighton Hospital. If you can buy a property that’s a short walking distance from either of these, you’ve nailed it. If you can offer off-road parking then a 5-10 minute drive to Bentley / Leighton is also a great location. We often get asked what areas / roads to avoid in Crewe, and the truth is – there aren’t really any bad areas. 88% of prospective tenants who viewed with Amplo, gave the feedback of location being most important to them when looking for a property: Is it close to shops? Close to my place of work? Close to schools? – If you know your target market, then location should not be an issue for you!
2) Professional working tenants vs tenants in receipt of income support?
Again, it all depends! Since the pandemic started, prospective tenants income has understandably changed; people who were self-employed might not have been entitled to the grants provided by the government and may have been required to sign on. There is a lot of stigma around tenants in receipt of income support such as universal credit or pip – as someone who used to be in receipt of universal credit, I can honestly say that in my opinion, this is an equally secure way of landlords and letting agents receiving their rent in full, and on time – if not moreso; with furlough, redundancies, some landlords may even prefer to market their property to the council for tenants on their waiting list.
With it now being discriminatory for a landlord and/or letting agent to decline someone based solely on the fact they’re in receipt of any form of benefit, this now brings me to our final point
3) Pets at home?
The NRLA have reported that it will soon be brought in that landlords cannot discriminate against pets, which means you may end up having to accept pets when you don’t really want to! (This is of course dependant on things such as: mortgage conditions and insurance on the property.) Responsible tenants with well-behaved pets will be able to secure leases more easily through the new Model Tenancy Agreement announced by the government today (28 January 2021). Under the new Model Tenancy Agreement, announced by Housing Minister Rt Hon Christopher Pincher MP, landlords will no longer be able to issue blanket bans on pets. Instead, consent for pets will be the default position, and landlords will have to object in writing within 28 days of a written pet request from a tenant and provide a good reason. Currently, just 7% of private landlords advertise pet friendly properties, meaning many people struggle to find suitable homes. In some cases, this has meant people have had to give up their pets all together. The Model Tenancy Agreement is the government’s recommended contract for landlords. With figures showing that more than half of adults in the United Kingdom own a pet and many more welcoming pets into their lives during the pandemic, these changes mean more landlords will cater for responsible pet owners.
Under the new agreement, rejections should only be made where there is good reason, such as in smaller properties or flats where owning a pet could be impractical. To ensure landlords are protected, tenants will continue to have a legal duty to repair or cover the cost of any damage to the property.
If you have any questions, please comment below or contact us