Bingham Landlords could be fined £75,000 per year

One evening recently I met a landlord who had been self-managing the property over the last few years, but was worried with all the new legislation that had been introduced recently. He was particularly concerned about the up and coming ‘Right to Rent’ legislation, so as his tenant had handed in their notice recently, on this new tenancy he called us for our opinion.

For those Bingham landlords that don’t know, landlords will need to check the immigration status of any new tenants moving into properties from February 2016 or face a £3,000 fine. It is called the 'Right to Rent'. However, tenants should also be aware that as well as traditional landlords, tenants who sub let rooms and homeowners who take in lodgers, must also check the right of prospective tenants to reside in the UK.

Our landlord wanted to know how much of a real issue was ‘Right to Rent’ in Bingham. I was able to tell him, the last available figures (from a couple of years ago) show that 25 people (whom were registered as Non-UK Born Short-term Residents) moved into private rented accommodation in the Ruscliffe Borough area in one year alone. If none of those people were supposed to be in the UK, that would be a fine of £75,000 to the landlords of the town.

It must also be recognised that landlords, by checking up on tenants, could potentially be accused of discrimination under the Equality Act. This is a real minefield for landlords, especially when you consider that not all of the 169 Europeans in the area necessarily have the right to live in the UK either.

In a nutshell, Bingham landlords will need to check and retain copies of certain documents that show a potential tenant has the right to live in the UK. These include ....

·         UK Passport

·         EEA Passport/Identity card

·         Travel document or Permanent Residence Card showing indefinite leave to remain

·         Paperwork from Home Office stating their Immigration status

·         Certificate of registration or naturalisation as a British citizen.

I hope the new law will target dishonest landlords who repeatedly fail to carry out Right to Rent checks by making it a criminal offence. This means they could face imprisonment for failing to check on their tenants. That is why more and more landlords are asking agents to manage their properties, so they can stay the right side of the law.

So what did our landlord do?

Well after our chat, he asked us to find a tenant and manage the property for him - he had been reading the Bingham Property Blog for a while and because of the knowledge we impart to the landlords of Bingham, we obviously know what we are talking about.  Even better news for him, even though this would cost him agency fees, I was able to get him an additional £50 per month for his property (when we found him a tenant one week later). Now, together with the peace of mind we will keep him the right side of the law and put a stop to midnight phone calls complaining about dripping taps, it was a win-win situation for everyone.

BTL potential with no upward chain - popular Bingham neighbourhood

This property, on the market for sale with Frank Innes Bingham, is currently empty and so could be a wise choice for any investor.

Situated in a popular residential area of Bingham, the property is neutrally decorated and has a garage, both benefits appealing to tenants.  The kitchen may need some attention, but it may be as simple as replacing the cupboard doors for something more modern.

I think this property needs to be viewed but has the potential to be a great BTL investment.

http://www.rightmove.co.uk/property-for-sale/property-38812176.html

What does 2016 have in store for the Bingham Property Market?

Bingham house prices up or Bingham house prices down? ... and if so, by how much? Those of you who read the Bingham Property Blog will know I am not the sort of person who pulls punches nor someone who ever fails to give a forthright and straight talking opinion – so here are my thoughts for the 2,969 Bingham homeowners and landlords.

The average Bingham property is 4.3% higher today than it was a year ago, which doesn’t sound a lot, but when you consider inflation is currently running at -0.1% (ie consumer/retail prices are dropping) and average salary growth is only around 2.5% pa, this is bad news for first time buyers as property affordability continues to decrease. (Although I was reading in The Times the other day that wage inflation (ie salary growth) is showing signs of weakening).

Some commentators have said the higher stamp duty taxes announced a few weeks ago in the Autumn Statement for buy to let landlords, concerns over first time buyer affordability and the outlook of UK interest rate rises in 2016 will really dampen the property market. I hope you all read my previous article about what the new stamp duty rule changes would REALLY mean for Bingham landlords in my blog.

I believe the real issue in the Bingham property market is the shortage of property to buy, as people either worry there will be no suitable house to move to, or cannot afford to upgrade. However, on the supply side, Mr Osborne said in his Autumn Statement that he will change the planning laws to ensure the government meets the pledge made at the General Election (back in May) of 200,000 new homes a year.  All I can say is .. good luck George hitting those numbers!

Why? Because houses take years to build .. not months .. so George and his fabled house building aside .... where does that leave us in Bingham in 2016?

Well, talking of supply ... whilst Mr Osborne builds his properties (and let’s be honest - a week doesn’t go by without him being filmed on a building site with a high viz jacket and hard hat building a house here and there!), let us look at the shortage of properties for sale. Back in November 2011, 117 properties were for sale in Bingham .. today that figure is 43. On the face of it, this means there is less choice for Bingham buyers – but it also means with a restricted supply of properties for sale .. it keeps property prices high for Bingham house sellers.

Everything isn’t all doom and gloom though ... again back in November 2011, the average property in Bingham took 118 days to find a buyer .. latest figures state this has dropped to 73 days .. a drop of 38% in how long it takes to find a buyer. However, when you delve even deeper, the best performing type of property today in Bingham is the 3 bed, which only takes 53 days to find a buyer (on average) compared to the 1 bed, which takes 144 days. It just goes to show, even though the average has dropped since 2011, how varied that change has been!

So, back to the question everyone is asking .... What will happen to property values in Bingham in 2016?  I am going to suggest they will rise between 3% and 4% ... nothing out of the ordinary, but unless something cataclysmic happens in the world, 2016 will be like 2015! For more thoughts, opinions and views on the Bingham property market .. give me a call or pop into see me at our office in the Market Place.

Stylish ground floor flat with garden - Kirkhill, Bingham

This newly refurbished ground floor flat is every tenant's dream!  Within walking distance of the town centre and train station it offers modern, convenient living and also benefits from having parking and its own garden.

Being so easy to let, it would make a great investment opportunity; on the market with GPS Property for £134,995, it could see a return on your investment of over 5%.

http://www.rightmove.co.uk/property-for-sale/property-52517059.html

    

Bingham House Price Monopoly: How do Prices vary?

Whether you are a homeowner or landlord in Bingham, what would a Monopoly board look like today in the town? Property prices over the last 80 years have certainly increased beyond all recognition, so looking at the original board, I have substituted some of the original streets with the most expensive and least expensive locations in Bingham today.

Initially, I have focused on the NG13 postcode within Bingham only, looking at the Brown Squares on the board, the ‘new’ Old Kent Road in Bingham today would be Langdale Grove, with an average value £109,120 (per property) and Whitechapel Road would be Carnarvon Place, which would be worth £110,060. 

What about the posh dark blue squares of Park Lane and Mayfair? Again, looking at NG13, Park Lane would be Belvoir Vale Grove at £430,000 and Mayfair would be The Banks at £495,800. However, look a little further afield from the town but still within the NG13 postcode, and such roads as Aslockton Road in Scarrington would claim the Mayfair card at £627,300! 

Also, I can’t forget the train stations (my favourite squares), and over the last 12 months, the average price that property within a quarter mile of the station sold for was £221,900.

So that got me thinking what you would have had to have paid for a property in Bingham back in 1935, when the game originally came out?

•          The average Bingham detached house today is worth £271,680 would have set you back 491 Pounds 11 shillings.
•          The average Bingham semi detached house today is worth £183,260 would have set you back 331 Pounds 11 shillings and 5 old pence.
•          The average Bingham terraced / town house today is worth £162,800 would have set you back 294 Pounds 11 shillings and 1 old pence.
•          The average Bingham apartment today is worth £116,450 would have set you back 210 Pounds 13 shillings and 10 old pence.

Anyway, I hope you enjoyed this bit of fun, but underlying all this is one important fact. Property investing is a long game, which has seen impressive rises over the last 80 years. 

In my previous articles I have talked about what is happening on a month by month or year by year basis and if you are going to invest in the Bingham property market, you should consider the Bingham property you buy a medium to long term investment, because buy to let is pretty much what it sounds like – you buy a property in order to rent it out to tenants.

As I reminded a soon to be first time landlord from Car Colston the other week, buy to let in Bingham (as in other parts of the Country) is very different from owning your own home. When you become a Bingham landlord, you are in essence running a small business – one with important legal responsibilities. 

On that note, I want to remind landlords of the recent and future changes in legislation when it comes to buy to let. This year, rules have changed about tenant deposits, smoke and carbon monoxide detectors and early in the New Year, landlords will have responsibilities to do immigration checks on all their tenants. Failure to adhere to them will mean a minimum of heavy fines in the thousands or in some cases, prison ... it’s a mine field!  

That’s why I write the Bingham Property Blog, where it has an extensive library of articles like this one, where I talk about what is happening in the Bingham property market, what to buy (and sometimes not) in Bingham and everything else that is important to know as a Bingham landlord. Please visit the Bingham Property Blog or give me a call on 01949 714101.

Tidy Whatton 2 bed could give you a 5% return on your investment

This 2 bedroom semi detached property is very well appointed.  With 2 double bedrooms and a lovely garden, it would appeal to many different types of tenants.  Great location close to the A46 and A52, offering good links to Nottingham, Leicester, Newark and Grantham.

http://www.rightmove.co.uk/property-for-sale/property-56661458.html

               

Bargain Buy To Let in Calverton

This property is situated in a village location popular with tenants.  It looks to be in good order and is being marketed by Gascoines in Calverton for £ 109,950.  It should see a return of over 5% so is a great investment for any landlord, and a good choice for a first time investor.

http://www.rightmove.co.uk/property-for-sale/property-38500926.html