Property Management Bromley

How property management in Bromley is helping middle-income landlords

By | Bromley & Beckenham property management | No Comments

Lots of people are using property management in Bromley as a means to fund their retirements by investing in a rental portfolio, which is looked after by professional property managers like Your Professional Lets.

Importantly, many of these individuals rely almost exclusively on rental income created by their properties to fund their lifestyles once they retire.

Yet, more and more government policies mean this is becoming a challenge, while landlords are the target of attempts by the Exchequer to obtain more of their margins to create greater tax revenue.

The NLA recently announced in a discussion paper on its website that the government’s tax policy is having a significant effect on landlords, as well as aspiring landlords, whose chances of preparing for a decent retirement and creating a suitable income for their later years was starting to look difficult.

Luckily many new and existing landlords are discovering the quality work that Your Professional Lets does, managing properties for them on a ‘set and forget’ basis.

Property management in Bromley is their area of expertise and they have many years of experience that they can bring to ensure solid rental income and predictable revenue.

More over it has been estimated that to retire with £22,000 per year annual income, it requires savings or investments of at least £400,000. Sadly, the average the average individual reaching retirement age has just £144,000 saved up.

Therefore it is unsurprising that many individuals use property to add to their income.

If you are a landlord or aspiring landlord in the Bromley area and looking to work with an experienced property management company, get in touch today to see how we can help.

We work with landlords of all sizes from accidental landlords who have little time to manage a whole other property, right the way through to much more experienced individuals building or looking to build a professional property portfolio.

Slowing inflation still racing ahead of rent in Bromley

By | Bromley & Beckenham property management, Property market | No Comments

Uncertainty for the value of rent in Bromley following announcements made this week.

Changes in the UK’s inflation rate and private rental prices across the UK threaten the profits of landlords in South East London and the yield of rent in Bromley.

The UK’s inflation rate dropped to 2.6% in July 2017, down from 2.9% (its four year high) last month, following fuel prices which were less than previously expected.

Simultaneously, the Office for National Statistics (ONS) has reported that private rents in the UK increased in the last months by just 1.8%.

Inflation in rental prices has not changed for three months in a row, as these figures show from the Index of Private Housing Rental Prices (IPHRP).

This is obviously bad news for Bromley landlords, as this means that rents in the private sector have gone down, relative to inflation, over the past year.

In much of England rents grew stronger than in the capital. Parts of London saw just 1.3% growth, whereas other areas of England have up to 1.9% growth.

Wales saw 1.1% growth, while Scotland saw the lowest with just 0.2% growth.

While rental prices in the private sector have shown yearly growth less than the Consumer Price Index (CPI), some policy makers remain keen to cap rents at or near inflation.

If this is their plan they will need to be aware that they risk allowing such policies to produce a 69% faster increase in rents than we have seen since July 2016.

HMRC providing help & support for Bromley & Beckenham landlords

By | Bromley & Beckenham property management, Property market | No Comments

How can in Bromley and Beckenham landlords make sure they file their taxes correctly in 2016-2017?

Webinars, e-learning and videos are just some of the methods that HMRC is using to help Bromley and Beckenham landlords to ensure they file correct tax returns this year.

To help save you the time we have put together some of the key information that the government has released for your benefit.

Click this link to HMRC’s course on letting out property.

Click this link to download HMRC’s Property Rental Toolkit (it shows key errors that HMRC often sees in returns and explains how to avoid them).

Click this link to watch HMRC’s video playlist on Self Assessment Help & Deadlines.

Register for a live webinar on 26 July 2017 (1.30pm to 2.30pm): here.

The topic will be ‘Income from property for individuals’ and will help new landlords and those considering becoming landlords understand what they need to do for HMRC. It covers registration, record-keeping and schemes such as Rent a Room.

The webinar will last up to an hour. You can ask questions during the presentation and get answers from your HMRC host.

Alternatively you can watch this webinar from December 2016 on the same topic.

Or this webinar on the new mortgage interest relief rules for landlords from June 2017, which includes a worked example.

What does the coming buy-to-let crackdown mean for Bromley & Beckenham landlords?

By | Bromley & Beckenham property management, Property market | No Comments

What do changes to the buy-to-let landscape mean for landlords in Bromley & Beckenham?

In September buy-to-let landlords in Bromley & Beckenham as well as the wider South East London area will again be expecting to feel the pinch. The government has announced that it will double down on its crackdown on buy-to-let investors.

From two months’ time tougher standards will be placed on Landlords with four or more properties mortgaged. Portfolio landlords may find it harder to obtain an additional new mortgage.

The changes come from the Prudential Regulation Authority (part of the Bank of England).

What are the implications?

This means lenders will have to consider a Bromley & Beckenham landlord’s full portfolio before deciding what kind of mortgage they can provide on a single property. This is the first time this has kind of regulation will be enforced.

One implication is that lenders may require proof of rental income, a business plan and ‘stress test’ before mortgage approvals.

Some buy-to-let brokers have restrictions in place already for those landlords who exceed certain limits – between three or four or exceeding £1-2m in value.

However, nowadays it is rare brokers to consider whether landlords have buy-to-let mortgages taken out with a different lender.

Are the concerns of landlords in Bromley & Beckenham justified?

Many Mortgage Brokers worry that landlords in Bromley & Beckenham will decide they can no longer continue to operate.

It will also means that the amount of work lenders have to do increases dramatically. Experts have also warned lenders could stop lending to these landlords at all.

If this happens it will be because the increased underwriting will add costs to brokers work. Subsequently landlords will be hit with higher costs as well, making mortgages more expensive for landlords with larger portfolios.

Another implication is that there will be few options available to these landlords over the coming 12 months or more.

Lenders are also worried that this will affect the overall property market. In fact, borrowers are being urged to set up new deals they can before the new rules come into effect on September 30.

While Parisians welcome ‘Macron effect’—what next for Brexit era Bromley and Beckenham?

By | Bromley & Beckenham property management, Property market | No Comments

Paris is a world away from Bromley and Beckenham, but how do they compare following two very different election results?

London’s property prices have been dampened by Brexit, including in the key boroughs we serve in Bromley and Beckenham. However, there are reports that housing in Paris is booming thanks to the election of new President Emmanuel Macron.

Called the ‘Macron effect’, investors and developers have been given new confidence in Paris’ property market. This is because Macron is seen by many as being a safe pair of hands.

“We’ve now got a powerful combination of positive factors for the market: low interest rates, the Brexit effect [ . . .] and the election of President Macron that has brought a wave of optimism,” said Hugues de La Morandière, a high-end Parisian property agent, as reported by The Financial Times.

Circumstances seem rosy across the channel. So what lies in store for Britain’s property market and Bromley and Beckenham in particular?

Well, it is not all doom and gloom, as you might think. A prediction by Savills indicates that while prices maybe flat across the UK for 2017 they are expected to have risen by 13% by 2022.

Now, that is still a dramatic slow down from previous years, but many in the property sector argue that this more steady growth is potentially more healthy in the long term.

Many property experts also believe that falling prices at the top of the property market, and a slowdown everywhere else, have been caused by changes to stamp duty, and not the referendum.

Property prices and rental yields may look more sunny in the short term in France, but they are not as bad as some here in London would have you believe.

All in all good news for people investing wisely in Bromley and Beckenham property management services.

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