YOUhome Blog

Over the New Year period, many of us have spent some time digesting the diverse property predictions now published for 2012 - it's a good starting point if you are considering buying or selling a home.

Bournemouth & Poole property prices could follow many of the national trends identified across the industry. However, we believe that by far the most successful route to buying and selling homes this year will be an intimate knowledge of the local market. It's always good to hear how well the London property market is holding up, but what do we predict here on the South Coast? With several years of local property knowledge and data at YOUhome's fingertips, we feel well-prepared to maximise the best possible results, whatever the market conditions.

We believe there will be many bright spots in our sector locally: new build homes that are well priced and conveniently located, family and small family homes across local areas, town houses, special feature properties and entry-level flats. Previous results show desirable properties tend not to drop in price. If you are selling, does your property have sea views, golf course views, high tech installations, a unique character, development improvement/potential or land? All these features are interesting to buyers today.

Looking at the wider issues driving concern across the sector - namely the Eurozone, bank lending, unemployment and public sector exposure - we know that 2012 will be challenging, so let us capitalise on our local area strengths of lifestyle, education and climate.

We will be working hard this year to match seller expectations with cautious buyer behaviour. We cannot expect transactions to grow by much in 2012, but we do not expect to see extreme price drops either, like the 5%+ falls predicted in some areas of the UK. Our daily buyer registrations tell us that moving home is definitely on the 2012 agenda for many.   

Finally, I mention our Lettings business, as it continues to grow from strength to strength. We are encouraged by the growing number of landlords who choose to minimise risk, and opt for a full property management service through YOUhome. Monthly rental values continue to grow, as does the trend towards home and flat-sharing, which enables tenants to meet these payments.

We feel more than ready to face the challenges of 2012 to contribute to Bournemouth and Poole remaining two of the bright spots for property transactions within the UK.

Tags: property predictions, buying, selling, full property managment

YOUhome is delighted to announce the expansion of their residential property sales and letting business through the acquisition of Berkeleys, an independent estate agency based in Canford Cliffs, Poole.

Berkeleys provides residential sales estate agency services to the Canford Cliffs area, where it has been established for over 20 years, specialising in prime residential property sales across the BH13 and BH14 areas. Canford Cliffs is well-known for it's proximity to Sandbanks. It retains a unique village community atmosphere and is a popular retirement area. It is also a favoured destination for second home owners, many of whom are London based.

"This acquisition of an established and well-respected local business will enable YOUhome to build our presence across the South Coast," says YOUhome Joint Managing Director Adrian Black. "Berkeleys will retain its existing trading name but will also benefit from YOUhome's information-rich marketing, web presence, technology systems and London links."

"Our vision for YOUhome is to continue to grow the business and to make strategic acquisitions, enabling us to leverage our unique position across the residential property market, " commented Jeremy Priestley, a Fellow of RICS and a former Managing Director of Hamptons International.

David Coward, also a FRICS, who has led Berkeleys for hte last 20 years, added, " I am delighted to see Berkeleys making this transition, to combine the best of well-established practices with new innovative property marketing, all underpinned by the pursuit of complete integrity that I too have always sought. I am looking forward to assisting YOUhome with the continuity of Berkeleys - but also to playing more golf and to pursue other ventures."

Since opening in Bournemouth in 2007, YOUhome has built a strong presence across the local area and was recognised in 2010 when they were presented with a "Highly Recommended" estate and letting agent award from the Dorset Property and Architectural Awards, supported by the Bournemouth Echo.

A recent tweet from retirementhomesearch.co.uk named Bournemouth as the second most popular retirement search location on their website. Nothing new there, you might say. Well, it did make us ask whether the appeal of the area, as a retirement destination, had evolved more recently.

A lively debate followed, and with our customers help, we came up with eleven good reasons why people choose to live within B-O-U-R-N-E-M-O-U-T-H:

Beaches: miles of golden sandy beaches, breath-taking coastal views and National Trust walks.

Options for living accommodation: depending on your needs, you will find many choices of retirement flats, assisted living accommodation, dedicated senior living flats and homes and residential care homes from the luxury to the very affordable.

University town: Bournemouth is a centre for learning, equipped with great libraries hosting thought-provoking talks, helping to keep minds active.

Retirement communities: Discover and engage, whether you are looking for charity, golf, bowling, bridge, Polish, London city, Jewish, sports or social groups, Bournemouth is welcoming and caters for all.

New Forest: a short drive away from the coast, offering endless walks, trails and days out where you will find a good pub lunch too! 

Eating out: fine dining, beach-cafe snacks, Asian fusion or French Patisserie - seek and you will find.

Malls: Shopping excursions abound from out-of-town malls like Castle Point to classic arcades, superstores - now including John Lewis Home - charming local craft stores or designer dress boutiques in Westbourne.

Open space:  freedom to roam and enjoy an outdoors lifestyle: a walk to Old Harry Rocks on a sunny day is hard to beat.

Unseasonal climate: the local climate is kind to us, even in the depths of winter. Bournemouth is often likened to the "Californian coastline" with its scented pine trees, rugged coastline and colourful sunsets.

Travel: a free bus pass, a local airport with regular flights to sunny Europe and a main train station, with excellent links to London, together mean you can be mobile with or without a car.

Health: the area delivers a healthy lifestyle all round, yet provides access to good local healthcare when needed.

So, it's easy to see why the attractiveness of the area has grown with time. If you are considering retiring to Bournemouth, chat with the YOUhome team. We have good insights into the local retirement lifestyle and popular local districts where you can rent or buy. 

Tags: living accommodation, flats, homes

Our Lettings business is very much seeing the trend towards monthly rents rising across Bournemouth and Poole. Whilst this is good news for landlords, it could mean that some tenants may become unable to meet their commitments. What if your tenant does not or cannot afford to pay the rent?

Should you encounter this situation, there are several steps you can take. Firstly, if you have a tenant who cannot afford to pay the rent, assess the situation carefully. Would you consider negotiating a lower rent to ensure you keep a good tenant? Further agent fees will be incurred if you need to find a new tenant. Would it not be more beneficial to reduce the rent by say, £30 per month, to resolve the situation quickly?

If you continue to have a tenant who cannot pay, keep the situation amicable. Show understanding and make arrangements with the tenant to move out, it is easier and less costly to remain approachable during this time. You do not want to create a difficult situation which could cause your tenant to stay within the property. At this point, you must make sure you issue the correct notices. 

Generally, the Section 8 route is used where there is some default on the part of the tenant. The most common type of default, during the term of the tenancy, will be non-payment of rent and you can initiate possession proceedings using this route. A court will require that the landlord, or his agent, is able to show evidence or proof of the default before it will order the tenant to move out. Keep in mind, there are certain grounds to meet in order to pursue this route. If the tenant has defaulted on rental payments, two full month's rent will need to be owed before you will be able to put this into effect. The tenant will then have two weeks to vacate.

It is recommended that you consult a letting agent for advice on issuing your Section 8 notices. A well-qualified ARLA agent will be able to advise you on all the correct steps to take. If your property is managed, your agent should be able to facilitate this on your behalf.

Remember that this is the worst case scenario: don't let it put you off letting a property. This happens in far fewer cases than current media coverage implies. Begin on a solid footing and make sure your letting agent obtains satisfactory references at the start of a tenancy. Make sure a good tenancy agreement is in place and fully executed. 

Finally, if you are relying on the income to meet mortgage payments, remember to take out rental guarantee insurance. The YOUhome Lettings team is always happy to offer advice on lettings issues. Do you have an issue you would like to chat over with us?  

Tags: letting agent, tenant, landlord, tenancy agreement

A recent survey by Shelter claims that tenants are cutting spending on food and heating to afford their ever increasing rents. Shelter noted that Bournemouth and Poole have the least affordable rents in the South West of England. How did we get to this point?

They went on to comment that private rents are in fact unaffordable in 55% of English boroughs, having already risen at one-and-a-half times the rate of incomes in the 10 years to 2007. New home building is at a post-war low, with just 134,000 new homes built in the UK in 2010, government figures show.

Tenant demand is outweighing supply, so much so, that many tenants must be prepared to pay increasing rates on modern, well-furnished rental properties. Over the past year, rents have increased by approximately 4.1%, the equivalent of an extra £28 per month.

The banking crisis has meant that young people looking to get on to the property ladder have not been able to do so. Banks have pulled back on lending and the requirements needed to obtain a mortgage have become stricter. As a result, many first time buyers now realise they need to save for longer to generate the deposit needed. In the meantime, they need somewhere to live - and that often comes through the private rental sector.

The knock-on effect of first-time buyers being unable to purchase, is that they are staying in their rental accommodation for longer. This in turn means fewer rental properties are becoming available. The supply and demand balance is in the landlord's favour.

This is good news for landlords, who are seeing tenants stay longer. At YOUhome, we have seen an increase in the average tenancy term achieved over the past year, along with more renewals than ever before. Our tenants are staying in rented properties for an average of 14 to 16 months now.

If you are an investor, now is a good time to consider purchasing smaller, one bedroom properties, in line with current market trends. We have seen tenant demand for smaller properties increase considerably: it allows couples or single people to cut their outgoings and make private rents more affordable. These types of properties are also producing higher rental  yields for our landlords. The majority of yields are now at 6% return and over. YOUhome is always open to share local insights into the private rental market across Bournemouth and Poole.

Key words: Private Rents, Lettings Agents, Property Investor, Rental Yields 

Our industry's most popular research indicators are all telling us that buying to let and letting to buy another property are all popular investment decisions. Bournemouth & Poole are very much reflecting this national trend at present.

Increasing demand for good quality rental property across Bournemouth & Poole will see landlords obtaining the maximum benefit from their rental investments. Whether you are looking ahead to retirement funds or you are adding to an already established portfolio, you will need to consider several key points to ensure that you achieve the maximum return from your property investment. If you are looking at property to buy across this area, follow our simple checklist:

1) Do the maths first - ask a letting agent what the rental value would be on a property BEFORE you consider buying it. Does the monthly rental income give you a substantial enough yield to ensure you are making a profit from your investment? Based on this valuation, decide whether the outgoing costs per annum are covered. (i.e. maintenance, ground rent, mortgage)

2) Understand what drives tenant demand in the area where you are looking - is it large businesses, education or holidays for example?

3) Look at it from a tenant's perspective, not a personal perspective. This is a business opportunity and spending a lot of money on expensive renovations, to your personal taste, may not prove lucrative.

4) Renovate to a good standard to ensure you get tenants quickly and minimize void periods. You do not want your property to be empty for long periods of time. 

5) Look at it as a long term investment opportunity every time you consider buy to let

You will find many estate agents flag properties that represent a good investment opportunity. YOUhome has several investment opportunities currently featured on our website, along with an indication of rental yield values. Research is always a solid first step to successful property investment. 

Key words: Bournemouth & Poole, property investment, valuation, tenant demand, investment opportunities, research

Buy-to-let residential property investors are currently responding positively to the market, motivated by a combination of factors that are signalling a general confidence. We highlight six reasons why you should consider buy-to-let now.

Firstly landlords can see clearer financial rewards from committing to a buy-to-let investment. Interest rates and fees are traditionally higher on buy-to-let (BTL) mortgages, because financial institutions view BTL mortgages as a greater risk than residential owner-occupier mortgages. However, currently investors should be benefiting from lower rates if they are on a lender's standard variable rate (SVR). Several buy-to-let deals do not have typical SVRs but they have a revert rate that tracks the bank rate. By focusing on investing for rental returns rather than capital growth, the numbers are making sense.

A recent ARLA (Association Residential Letting Agents) quarterly survey showed that on average 90% of landlords said that they would hold on to their investments even if house prices fell, 62% said that the average life expectancy of their property investments was ten years or more and 58% said that they intended to acquire further buy-to-let investments in the near term. The overall average life of their property investments was 16 years. Their strategy is valuable learning.

Secondly buy-to-let investors can be more confident today that the rights of tenants and landlords are fairly equally balanced thanks to Assured Shorthold Tenancy legislation. In summary this means less security of tenure for tenants and the power to evict problem tenants by the landlord.

Thirdly, government focus is benefiting the sector. The 2011 budget identified buy-to let as one way of solving Britain's housing shortage thus stimulating investment into residential property. Stamp duty on the cost of buying and building large portfolios of property has discouraged investment in recent years. However the budget now proposes that the stamp duty on the purchase of more than one property will be calculated by the average value of the properties and not the bulk value. This means that if an investor buys 100 properties worth an average of £200,000 they will pay stamp duty at 1%, equal to £200,000 rather than at 5% equal to £1m.

Fourthly, looking to the future, the 2012 budget could also make it easier for residential investors to become a Real Estate Investment Trust (REIT), which will mean they will not pay capital gains tax. The chancellor is proposing to scrap the 2% entry charge that landlords must pay to become a REITs and he may scrap the rule restricting REITs to stock market listed companies alone. This will allow pension funds to turn property portfolios into REITs and potentially allow smaller buy-to-let landlords to benefit from tax breaks on capital gains.

Further, there are tax advantages for investors. Rental income is considered in the same way as salary, therefore tax is generally assessed at 22% or 40%. However, landlords can deduct costs from the taxable portion of their rental income, and these costs can include the interest portion of their BTL mortgage repayments as well as maintenance costs on the property. These income tax incentives have made BTL investments more popular over the last few years.

Finally, the areas of Bournemouth, Poole and Christchurch specifically afford landlords an opportunity to obtain the maximum benefit from their rental investments. Local knowledgeable agents will have valuable insights into this market whether there is a demand for say, two-bedroom flats or four bedroom houses; for properties close to schools or transport links; for quiet properties with secluded gardens. Your agent will know the standard of decoration, furnishing, fixtures and fittings required by the market.

Currently YOUhome® is seeing high demand for good quality family housing close to local schools. Also quieter areas such as Lower Parkstone, Boscombe East and Southbourne are in demand. YOUhome® has many applicants waiting for one bedroom flats in the town centre. Seasonal trends see an influx of foreign language students into the area over the summer months, and these students are looking for furnished properties. There is always demand from well-covenanted tenants who are attractive to the landlord: they will pay their rent on time, leave the property on time and leave it in a well-cared for condition – music to the ears of all landlords.

All the arguments are there to consider residential property investment now if you have not done so already. Contact YOUhome® if you would like to discuss this opportunity further or if you are already a property investor looking to increment your portfolio.