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.

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