What 2019 has in store for buy-to-let landlords

There are some changes happening in 2019 which buy-to-let landlords need to be aware of

Tax Relief Changes
Firstly, in 2019 the changes to tax relief continue as the ability to deduct a number of allowable expenses along with mortgage and other finance expenses from rental income and just pay tax on the difference is phased out.  

From 6 April 2020, tax relief on finance costs will be restricted to the basic rate of Income Tax

You’ll still be able to deduct some of your finance costs when you work out your taxable property profits during 2019/2020 tax year, as highlighted in the table below.

Tax year	Percentage of finance costs deductible from rental income	Percentage of basic rate tax reduction
2017/18	75%	25%
2018/19	50%	50%
2019/20	25%	75%
2020/21	0%	100%

If you are unsure how this will affect you, we urge you to take some professional advice. There is also more information on the full impact of the changes and case studies published by HMRC which can be accessed on www.gov.uk

Tenant Fee Ban
As you are probably now aware, changes are taking place in the industry which from June will prevent letting agents from charging the tenant for referencing. 

The move by the Government is designed to make renting a home more affordable for tenants. 

Please be assured that we are currently exploring a number of ways to minimise the impact of these changes for you, whilst maintaining our current quality of service.

We will, of course, keep you updated over the coming months.

Landlord's Services

We are always striving to make life easier for our managed landlords

Portfolio Reviews

How well is your property portfolio performing? Would you like to chat through your plans for 2019 and beyond?

We can offer you a portfolio review meeting.  Working in conjunction with a financial advisor and wealth management expert, the review will allow you explore how to get the best out of your property investment and maximise returns.

Whether you have one, two or more properties, if you would like the opportunity to chat through your investment with local experts, do get in touch. Email info@belvoirandover.com or call us on 01264 366611

Virtual Viewing Service

We are thrilled to announce our Virtual Viewing Service - perfect for busy people or those living outside the area.

As long as you have some form of video calling facility (WhatsApp, FaceTime, Messenger video calling etc), the Belvoir team can show prospective buyers or tenants around properties  by using our Ipad to conduct a virtual tour.

As soon as a suitable new property comes on the market, we can arrange a virtual viewing and this will then help people decide whether it is worth booking a ‘real’ viewing. The virtual viewing can be totally interactive and we can answer questions and show any particular features in more detail.

Just give us a call on 01264 366611 to book. We look forward to showing you around!

Annual Tax Return

Also, did you know we can provide a tax return that can be emailed directly to your Accountant? There’s no charge for this email service, simply drop us an email and we can organise that for you.

If we don’t currently manage your property, come and talk to us to find out more. It might not be as expensive as you think!

Meet The Team - Jasmine Akhurst

Who's who at Belvoir Andover!

Jasmine Akhurst, Lettings and Sales Administrator

Jasmine has worked for Belvoir for around 9 months now, having previously worked in the insurance industry.

She has quite a varied role. A typical day may consist of helping those looking to move to find suitable properties, as well as preparing details and marketing properties on multiple platforms to give Belvoir clients the best chance of selling promptly.  

In addition, Jasmine gets involved in the all-important after sales service and liaises with solicitors and conveyancers from the point of sale to completion.

 ‘Outside of work I love spontaneous days out and travelling to new countries’ says Jasmine ‘The world is too big not to!’ 

Fun fact/claim to fame: On her 18th birthday, Jasmine received a birthday card signed by Nicki Minaj, Fergie from the Black Eyed Peas, Emeli Sande, Professor Green and Taio Cruz… And another one from the beautiful PRINCE HARRY!

Favourite song: Focus On Me, Jamie Wild

Leasehold vs Freehold explained!

The two most common forms of property ownership in the UK are freehold and leasehold. We get asked about the differences all the time - here's a brief explanation!

Leasehold is a method of owning a property for a fixed period, often around 125 years if the home is new, though leases can be shorter. With leasehold properties, you do not own the land it is built on, the rights of which remain with the freeholder. Possession of the property will usually be subject to the payment of an annual ground rent and possibly monthly maintenance charges. When the lease expires, ownership of the property reverts back to the freeholder. Most of the flats/maisonettes and apartments in Andover are leasehold.

A drawback to leasehold is that as the lease period diminishes, particularly beyond 75-80 years, the property may become harder to sell or obtain a further mortgage on. Leases can be extended but this can be quite costly, so it is worth being aware of this from the start. 

Freehold is the outright ownership of the property and land on which it stands. There is no time limit to the period of ownership.

Freehold is a more attractive option because it means you own both your property and the land on which it stands, without any time limit or maintenance/ground rent charges. Most houses are freehold.

Meet the Belvoir Team - Andrew Bailey

Who's who at Belvoir Andover!

Andrew Bailey, Sales & Operations Director

A highly experienced property expert, Andrew oversees day to day running of Belvoir’s offices.

Originally from Glasgow, Andrew has lived in Andover for 30 years. With excellent local knowledge and a passion for residential property sales, he guides and helps those buying or selling their home, or those buying for investment. 

With his wife, a 10 year old son and twin 8 year old girls, life is always busy for Andrew. When he gets the chance, he loves a round of golf and plays the occasional game of football. 

Fun fact/claim to fame: Whilst walking barefoot in New York City, Andrew bumped into and chatted with Noel Gallagher.

Favourite song: It has to be Oasis, Live Forever

Exclusive invitation for Belvoir Landlords

Belvoir Landlords are invited to a Christmas Champagne Reception on 6th December

The Nadia Waterfield Fine Art Gallery in Goodworth Clatford will be the venue for this year's event and will provide a stunning backdrop for our festive evening.

Specialising in contemporary paintings, sculptures and bespoke furniture, Nadia Waterfield focuses on bringing new and exciting young artists to the attention of the wider public, along with more celebrated names. The Gallery is a fascinating place to visit and more details can be found on the website nadiawaterfieldfineart.com



Join us in this charming setting for drinks and nibbles on Thursday 6th December between 6pm and 8pm. It will be a great opportunity to meet the Belvoir team and chat to fellow Landlords, as well as local property and finance experts.


Spaces are limited due to the capacity of the Gallery and pre-booking is essential, so please do let us know without delay if you (and a partner) are able to join us by clicking here to RSVP. 

Alternatively, drop us an email to info@belvoirandover.com or give us a call on 01264 366611

We look forward to seeing you!

Meet the Belvoir Team - Jess Baynes

Put a face to a name and see who’s who in Belvoir…

Jess Baynes, Lettings Negotiator

Jess is usually the first cheery face you see when you walk into the Belvoir office and has been a part of our Lettings team for over a year.

As Lettings Negotiator, it is Jess’s role to contact new prospective tenants and try and match them to the perfect rental property. 

"I really enjoy my job" says Jess "Every day is so varied. Different people, each with different stories and of course, some lovely houses"

In her spare time, Jess loves watching all types of movies. She enjoys spending time with her family, and her much-loved dog Flo. Currently on the Couch to 5K programme, she will be running her first 5K in December, in aid of The Enham Trust.

Fun fact/claim to fame: In a previous job, Jess quoted for providing new worktops in Mary Berry’s kitchen!

Favourite song: Memories, Maverick Sabre

Belvoir Property Clinic - New Buy-to-Let Tax Rules

Greg Greatbatch, Director at Belvoir Andover and Professional Landlord answers today’s property question

If you have a question for our monthly Belvoir Property Clinic, please send to info@belvoirandover.com

Q Can you explain the tax changes that have been introduced for buy-to-let landlords as I am about to file my tax return

A This is a question we have been asked a lot at Belvoir, and it’s not an altogether simple one to answer.

The tax changes only apply to individual landlords who let property in the UK, those who let in a partnership or Trustees of a trust directly holding UK residential property. The new tax rules won’t apply to companies or landlords of furnished holiday lets.

In short, the main change being made under the new tax rules, is that landlords will no longer be able to fully claim tax relief on their mortgage interest payments and related finance costs.

Previously, landlords have been able to deduct a number of allowable expenses along with mortgage and other finance expenses from their rental income and just pay tax on the difference. Now however, tax relief on finance costs will be restricted to the basic rate of Income Tax with the restrictions being phased in gradually from 6 April 2017 until fully in place from 6 April 2020.

You’ll still be able to deduct some of your finance costs when you work out your taxable property profits during the transitional period. These deductions will be gradually withdrawn and replaced with a basic rate relief tax reduction.

Tax year	Percentage of finance costs deductible from rental income	Percentage of basic rate tax reduction
2017/18	75%	25%
2018/19	50%	50%
2019/20	25%	75%
2020/21	0%	100%

I would advise you to take some professional advice regarding how this will affect you based on your particular personal circumstances. There is also more information on the full impact of the changes and case studies published by HMRC which can be accessed on www.gov.uk

Belvoir Property Clinic - Looking for Rented Accommodation

Vicky Bowman, Lettings Manager at Belvoir Andover answers today’s property questions.

If you have a question for our monthly Belvoir Property Clinic, please send to info@belvoirandover.com

Q. My partner and I would like to rent our first home together but we are struggling to save the large deposit we need. Are there any options for paying a smaller deposit?

A. Yes, if you find a property through Belvoir you could qualify for Belvoir’s Nil Deposit Scheme. We know how tough it can be to raise that up-front deposit, so our Nil Deposit scheme offers an alternative option which will allow you to move quickly and easily into your chosen new home.

Rather than paying the usual six week’s rent as a deposit, you can now choose to pay a non-refundable fixed fee of just one week’s rent plus VAT.

At the end of the tenancy, the property will be inspected as usual and any claims for damage are invoiced to you for payment. It really is that simple!

There are some qualifying criteria, so pop into the office or give the Lettings Team a call on 01264 366611 to discuss.

Q. I have been looking for rented accommodation in Andover for some time now but even the smallest one bedroom flats are out of my reach. Have you any suggestions on how I can find something suitable?

A. It is difficult for those on limited budgets to find suitable homes to rent. Some of our smaller properties are let very quickly and you may not even get to see them advertised, so please do get in touch as we may be able to help you if we know what you are looking for.

Have you considered a house share? Belvoir always has a number of house or flat share opportunities and it can be the perfect solution for someone who can’t quite stretch to living on their own. Not only is the rent reduced but so are the bills.

Take a look at our website, www.belvoirandover.com to see what is currently available or drop into our office in Bridge Street so we can take your details and help you find the ideal home.

Looking after our Landlords with Rent Guarantee Scheme

We are delighted to now be able to offer our Rent Guarantee to all our Landlords. Paid monthly, this unique Guarantee offers complete peace of mind should your tenant default on rent payments.

In the event that a tenant defaults, rent will continue to be paid under the Guarantee whilst the property is occupied and you, the Landlord, will not be out of pocket. In addition, Belvoir will handle the legal process with specialist solicitors to ensure that the tenant is removed from the property. There is no claim process involved and you will not be required to attend at court or instruct solicitors, this is all handled as part of the service.

Without our Rent Guarantee, eviction of tenants for non-payment can be a very expensive and time-consuming process. With it taking typically 6-8 months to gain vacant possession, the cost to a Landlord can be astronomical.

Get in touch and sign up now for the Belvoir Rent Guarantee. At only £24 per month (including VAT), we are recommending that all our Landlords take advantage of this comprehensive protection. 

No Deposit? No Problem!

Belvoir is now offering a Nil Deposit Scheme for new tenants

Here at Belvoir, we know that it can be a struggle to raise a large deposit to put down on a rented home, so our new Nil Deposit Scheme offers an alternative option which will allow you to move quickly and easily into your chosen new home. 

Rather than paying the usual six week’s rental as a deposit, you can now choose to pay a non-refundable fixed fee of just one week’s rent plus VAT*

At the end of the tenancy, the property will be inspected in the usual way.

No need to save for months for that large deposit – yet another reason to Be with Belvoir!

How does it work? Pop in and see one of our Lettings team to find out if you qualify for Nil Deposit and to understand the full terms and conditions of the Scheme, or call them on 01264 366611

*Terms and Conditions apply

Introducing Vicky Bowman

We are delighted to announce that Vicky Bowman has joined Belvoir as Lettings Manager. Vicky will head up our very successful lettings team and she brings a wealth of experience to the role; having been a Lettings Manager in Andover for over 14 years.

Vicky said 'I am delighted to join such a busy and well-regarded lettings agent and I am looking forward to meeting and working with the many landlords that rely on Belvoir to manage their properties'

LANDLORDS AND TENANTS ARE A WORKING PARTNERSHIP

Old style conflicts between tenants in rented properties and their private sector landlords are largely the stuff of fading legend these days – according to the country’s largest property franchise Belvoir.

Delia Thing - Lettings Manager

“In the real world, no-one achieves anything that old fashioned way,” says Delia Thing, the Lettings Manager of Belvoir Andover on Bridge Street. “The modern approach is more about tenants and landlords cultivating partnerships.

“Both have interests to protect and they can both achieve that better by working together. If they can’t, then something is wrong – and mis-matches do happen - but good relationships are more the order of today.

“The truth is that a rented property may be part of a landlord’s livelihood but it’s also home to the tenant and the ideal situation is for them to work around each other.”

A professional lettings and management agency, such as Belvoir, will always look after the interests of both parties.

Methods of creating perfect harmony include:

·           Agreeing on periodic visits so the landlord can see how a property is being looked after. That also gives a chance to see if there are any repair jobs or maintenance issues that need attention. And it gives tenants an opportunity to discuss anything that is bothering them.

·           Tenants letting landlords, or their agents, know if they are planning a holiday and the property is going to be empty. Occasional visits can be made to ensure the property and the tenant’s possessions are safe.

·           By mutual agreement neighbours can have the agent’s or landlord’s phone number so they can get in touch if anything seems wrong, e.g. a burglary, fire, flooding, intruders or unusual behaviour.

·           Along with a tenancy agreement Belvoir provides new occupiers and landlords with a video inventory to record the state of decoration, furnishings and fittings. “An honest, upfront, practice like this creates a precise record of contents and condition that is beyond dispute,” says Delia. “And that can save a lot of arguments later – especially over returning deposits.”

·           Important communications should be done by e-mail or letter - which creates a paper trail of any problem that arises. This gives both tenant and landlord a firm record instead of trying to rely on half-remembered conversations.

Phil Pinkney - Belvoir Andover Co Owner

Past conflicts in rented properties have swung from the serious to the comic.

According to official statistics, two years ago, the numbers of housing tenants growing commercial crops of cannabis was sufficiently large to lead the national Crimestoppers charity trust to publish an eight-page leaflet highlighting the issue.

While another recorded case outlined how a tenant caused irreparable damage to a washing machine at his furnished flat because he put in a house brick to “stonewash” his denim jeans.

“Whether it’s a laughing matter or an indictable criminal offence, the relationship between a tenant and a landlord is at the heart of today’s private rented sector,” says Phil Pinkney, co owner of Belvoir Andover.

“Closer relationships obviously work better for both parties and, thankfully, that’s the way things are moving. The 170 branches throughout our UK network are reporting fewer and fewer cases of serious conflict.

“The current housing crisis has turned the private rented sector into a major home provider with nearly two million landlords renting to some 10 million tenants and for them, working together means making it work.”

If you would like advise on buy to let or renting your property out, please contact Belvoir Andover on 01264 366611 or email us at info@belvoirandover.com

LOCATION, LOCATION, LOCATION…

LOCATION, LOCATION, LOCATION…

Three small words that can transform your property

investment decision, says Belvoir.  

As a new landlord or investor in the buy to let market, what would be your first priority – the type and purchase cost of the property, or the place in which it is situated?

There is no single, definitive answer to this commonly considered question, but in property circles the phrase ‘location, location, location’ is often referred to as the first three rules of property investment.

It’s the same for tenants too. Delia Thing who heads up the lettings team at the Belvoir Andover office on Bridge Street, says:  “When looking for the ideal place to invest in or to rent, it is worth remembering the adage ‘you can change the house, but you cannot change its location’.

“To find a property that will appeal to a tenant and provide a good level of rental income and/or capital growth it is extremely important to firstly define that appeal. There are many considerations to take into account and a good place to start is to look for towns, areas or streets that are currently in demand, and are likely to be increasingly popular in the future.

“Location is always a key driver, with proximity to work, schools, commuter routes, shops and public services amongst the many factors to be taken into account when choosing to market a property as a buy to let.

“In today’s market, there is an ever accelerating need for private rented property, with tenant demand often outstripping supply. To be absolutely sure as to whether a property would make a good rental investment it is worth consulting a lettings specialist such as Belvoir.

“Expert agents can identify local trends and spotlight properties that are the most popular for the type of tenant looking to rent and the best areas in which to find them.

They will know where property ‘hotspots’ are and which parts of a city or town are driving the market.”

Many buy to let investors choose to stay local in order to ‘keep an eye’ on their investment. It’s a strategy that works for thousands across the country, but there is no reason why a buy to let investment cannot work just as successfully hundreds of miles away - provided you make the right choice of professional lettings agent who can manage, maintain and keep a check on the property on your behalf.

“Within the Belvoir national network of over 160 offices there is a high proportion of landlords who own just one or two buy to let property investments, and many of these are in a different part of the country to where they are based.

“In cases like this an agent will have all the right up to date local knowledge and know properties and locations with the highest tenant demand. They will be able to advise on current, achievable rental levels and help avoid the pitfalls of investing in the wrong areas.”

Belvoir’s Andover’s advice for helping to decide the best location for a property investment include:

·        Only decide on where you want to invest after thorough research.

·      Do not make a decision based on the look of the property alone. Just because it appeals to you, it will not necessarily be a good rental investment.

·   Providing tenants with a quality, well maintained property for them to call home carries responsibilities. Only work with a local agent that you have checked out, trust and who has gained all the relevant professional industry accreditations.

·    Remember that big is not always best. A one or two bedroom unfurnished apartment can often yield a better return than larger, four bedroom furnished houses. It’s all down to location and the type of tenant you are targeting.

·        Overly high ‘yields’ – or returns on an investment - can sometimes indicate hidden issues and may not necessarily lead to a good investment.

·       Beware of “buying cheap and paying dear”.  If a property is located in a low quality area it can increasingly become run down – attracting the wrong type of tenant and achieving poor long term capital growth.

“Whilst there are many other things to consider when entering the buy to let market, ‘location, location, location’ must always be uppermost in the mind of a landlord investor,” adds Dee.

“Sometimes the difference between a good rental property and a not so good one can be down to which side of the street it is on, let alone its geographical location.

“If you want to avoid costly mistakes early on in the process, invest in good local, experienced advice. Initial consultations with our office are both free and carry no obligation to proceed.

“At Belvoir we can help to source suitable properties and steer people away from opportunities that, at first, may appear good on paper but may not prove to be the best decision over the longer term.”

If you are looking to invest in the buy to let market, please contact us to arrange an informal chat about your options, what is available and what to look for. Please call Delia Thing on 01264 366611

Belvoir Andover are the towns leading buy to let & investment specialist who have been the industry leader since 1997.

New Legislation with regards Smoke Detectors & Carbon Monoxide Alarms

NEW RULING WILL STRENGTHEN FIRE SAFETY MEASURES IN RENTED HOMES

Nationwide lettings specialists, Belvoir, has updated its advice on fire safety for landlords  following a ruling which is expected to come into effect at the end of this year.

At the Local Government Association’s annual Fire Conference, staged earlier this month, Communities Minister Penny Mordaunt announced that the installation of smoke and carbon monoxide alarms in all private and social rented property is to be made compulsory.

The new ruling covers all rented properties in England and Wales.

In Scotland it is already a legal requirement to provide ‘hard wired’ smoke alarms on stair landings and in living rooms, along with heat detectors in kitchens area and carbon monoxide alarms wherever there is a gas appliance.

But whilst the largest majority of residential property landlords in England and Wales already fit fire and smoke alarms it does not apply ‘across the board’.

Greg Greatbatch, one of the owners at Belvoir, says:  “Many landlords, especially those new to the private rented sector, may not appreciate the detailed, and growing, levels of fire safety legislation governing rental properties.

“Fire safety considerations and compliance are a critical factor when putting a property up for rental and this has always been a complicated area, with different regulations for different types of properties in different parts of the UK.”

“Scotland has previously led the way in terms of tightened regulation, but this new ruling, making detectors and smoke alarms compulsory, is a major step forward and should provide clarity for the rest of the UK’s landlord population.”

“We advise all of our landlord clients to take professional advice on the fire risk assessment of their properties, because the stakes are too high to do it themselves.

“Every type of property has its own set of specific fire safety requirements – from bed-sits, through to new builds and much more demanding Houses in Multiple Occupation (HMO’s).

“There is a statutory duty on all landlords of residential property to ensure that gas appliances, pipe work and flues are maintained in a safe condition, with annual inspections and proof of compliance via a Gas Safety certificate.

“But in addition to the actual fabric of the building there are also product safety requirements covering electrical equipment, plugs, sockets, furniture and furnishing materials,” adds Greg.

The new ruling on compulsory smoke and carbon monoxide alarms follows years of campaigning by the Chief Fire Officers Association, supported by the British Property Federation.

When it comes into force, around October of this year, it will put an obligation on landlords and their agents to ensure that working detectors are in place at the beginning of each tenancy. There will also be a requirement for tenants to regularly test the equipment and report any faults.

“All landlords have a duty of care to their tenants and if they fail to protect them from unacceptable fire risks, they can expect a robust response from fire officers or local housing authorities who will enforce the necessary regulations and prosecute offenders,” says Greg.

“If you are a novice landlord it is essential you seek out expert advice from the outset –from your local authority, professional fire safety advisers or from professional and experienced lettings agents such as Belvoir, since we work closely with all of our landlords to help them follow best practice and meet constantly changing legal requirements.”   


If you require any advice regarding letting your property or any other type of property marketing, please contact us on 01264 366611 or email us at: info@belvoirandover.com