Urban Home UK

Urban Home UK Established in 2007 Urban Home is a property management company, specialising in corporate lettings.

Interest Rates and Inflation 2024March's decrease in consumer price inflation (CPI), though not as large as anticipated,...
18/04/2024

Interest Rates and Inflation 2024

March's decrease in consumer price inflation (CPI), though not as large as anticipated, raises concerns for the Bank of England's Monetary Policy Committee (MPC). Despite this, we believe it won't deter the MPC from lowering interest rates in June. The headline CPI slowed to 3.2% in March, its lowest since September 2021, down from February's 3.4%, but still higher than the expected 3.1%. Core CPI, excluding food and energy, also remained above forecasts at 4.2%, down from February's 4.5%. Retail price inflation (RPI) fell to 4.3%, slightly above expectations, and the Retail Price Index excluding mortgage interest payments (RPIX) eased to 3.3%.

On a positive note, food CPI inflation continued to decline, rising by 4% year-on-year, the slowest since November 2021, which subtracted 0.11 percentage points from the headline rate. Clothing and footwear inflation also decreased due to smaller price increases, contributing -0.06 percentage points to the headline. Core goods inflation dropped to 1.5% from 1.9%. However, this was offset by a rise in motor fuel inflation, likely to continue if oil prices rise. Services inflation remained higher than expected, declining only slightly to 6.0%, mainly due to housing services and communication CPI inflation.

This data will concern the MPC, especially given the persistence of CPI in the US. However, we believe it's insufficient to sway the MPC from a June rate cut. We expect CPI to return to the 2% target in April, aided by the adjustment in energy regulator Ofgem's price cap. The headline rate may temporarily exceed the target later in the year but is forecasted to stabilise within the 2% to 2.5% range, supported by declining services inflation. Downside risks to the Bank of England's CPI inflation forecasts for next year are also noted.

Governor Andrew Bailey echoed previous comments, suggesting that inflation dynamics differ between Europe and the US. We still anticipate a June rate cut, followed by two more cuts in September and November. However, if inflation and wage growth continue to surpass expectations, the first cut may be delayed until August.

Market reaction was subdued, with the pound slightly strengthening against the dollar and edging away from recent lows against the euro.

The Renters (Reform) Bill, introduced in May 2023, is a comprehensive piece of legislation aiming to overhaul the privat...
01/03/2024

The Renters (Reform) Bill, introduced in May 2023, is a comprehensive piece of legislation aiming to overhaul the private rented sector (PRS) in the UK. Its key focus areas include abolishing ‘no fault’ evictions, introducing rolling tenancies, implementing new rules for pets in lets, establishing a property ombudsman, and creating a property portal.
The bill’s journey through parliament has involved several stages, Each stage has seen adjustments and additions to the bill’s provisions, reflecting ongoing discussions and debates among MPs.

The bill proposes to abolish section 21 ‘no fault’ evictions, aiming to enhance tenant security, contingent on court system improvements. It also strengthens section 8 eviction grounds, focusing on rent arrears and landlord’s property use. Additionally, it aims to simplify tenancy structures by transitioning to rolling tenancies with longer notice periods for rent increases.

The bill boosts tenants’ rights, allowing more pet freedom and establishing a dispute resolution ombudsman. Landlords must join this scheme for accountability. A digital property portal enhances transparency for both landlords and tenants. The bill also covers minimum housing standards, tenant group discrimination, and Rent Repayment Orders overhaul for landlord accountability.
The bill aims to overhaul the rental sector but has sparked mixed reactions. Landlords worry about increased regulation while letting agents are more optimistic. Its timeline is uncertain, with further debate in Parliament expected. However, the government aims to pass it before the next election, likely phasing in provisions gradually. Overall, it’s a significant attempt to improve tenant and landlord rights, requiring cooperation from all involved parties.

How Urban Home Can Help?

Housing act legislation can be a minefield, but by engaging Urban Home we will rent your property directly under a non housing act tenancy. Therefore the renters reform bill won’t apply and you will be guaranteed a long term, hassle-free, rental income.

We are urging landlords to think ahead as the new bill is imminent. Contact us if you would like to discuss your requirements in more detail.

Exciting News for Landlords: The UK government is making changes to the regulations pertaining to council tax on houses ...
17/11/2023

Exciting News for Landlords: The UK government is making changes to the regulations pertaining to council tax on houses under shared ownership (HMOs) that will benefit investors in real estate such as yourself.

The End Room By Room Council Tax for HMOs
Rejoice! The government's decision spells the end of the 'Room By Room Council Tax for HMOs,' a policy that was causing a lot of headaches for landlords.
Earlier this year, due to extensive lobbying efforts by landlords and property investors, a fast-track consultation was initiated. This was in response to a Valuation Office Agency policy that was making individual rooms in shared HMOs liable for council tax. The result was considerably higher tax bills, putting financial strain on landlords and potentially making the HMO model less attractive.

Legislation Update
The government has now officially announced the outcome of the consultation and plans to change the law before the year's end. This amendment will value HMOs as single properties. This means that, as a landlord, you'll pay one council tax bill for the entire property. This move provides consistency and certainty, simplifying the administrative aspects for you.

Reversing a Controversial Policy
This is a significant change that overturns the controversial Valuation Office Agency policy from 2015. Under that policy, some HMOs were unfairly hit with multiple council tax bills, causing financial headaches for landlords.
Due to this approach, there were negative effects such as overpopulation, property vacancies by tenants, and even the closure of HMOs. These problems are fixed by the government's decision.

A Win for Landlords
This change is a resounding victory for landlords and property investors who advocated for fairer regulations. It ensures that you won't be burdened with multiple tax demands, making your property investment journey smoother.
This change is great news for landlords looking to grow their property portfolios as it provides certainty for the construction of new, high-quality HMOs.

EPC Rules for Rented PropertyBelow is information about the coming changes to minimum Energy Performance Certificate (EP...
13/09/2023

EPC Rules for Rented Property

Below is information about the coming changes to minimum Energy Performance Certificate (EPC) standards.

In 2015, new laws set (MEES), stating that private rented property in England and Wales must have an EPC rating of E or above. These came into force in April 2018 for new tenancies, and on 1 April 2020 for existing tenancies.

However, there are some exemptions:

There is a maximum cost cap: currently £3,500 per property, including VAT. If after spending this amount on improvements, the property still doesn’t meet the minimum EPC rating, you can register an exemption.
Other exemptions include where work would damage or devalue the building (with evidence from a qualified surveyor), or where you cannot get necessary third-party permission (for example from a tenant, planning authority or freeholder).
Changes:
In autumn 2020, the government began a consultation on tightening the MEES rules. It’s important to note that the proposals are currently just that, and no regulations have even been drafted yet. The consultation closed in January 2021, but the results have still not been published.

However, the proposed changes are as follows:

Minimum EPC rating to be raised from E to C.
The plan is to enforce this from 1 April 2025 for new tenancies, and from 1 April 2028 for existing tenancies.

Cost cap to be raised from £3,500 to £10,000 per property
The government says this would be sufficient to bring more than 90% of D-rated properties up to a C rating, as well as nearly 60% of E-rated properties. It’s not clear whether existing spending would count towards the new cap.

“Fabric first” policy to be introduced
This would control in which order work is carried out, so improvements to the fabric of the building (ie insulation, windows and doors) must be done before additional measures such as new heating systems are installed.

Get in touch with our team for advice:
02392 836591

Properties needed in Hampshire and Dorset for long term corporate lets. We will rent your property directly on a 5 year ...
23/08/2023

Properties needed in Hampshire and Dorset for long term corporate lets. We will rent your property directly on a 5 year contract with guaranteed rent. This is a superb solution for landlords that are searching for a passive rental income. Contact one of our team today for more information.

Either via our website https://www.hmo-management.uk or call us 02392 836591📱

Mortgage Rates Rise AgainInterest Rates have risen to the highest point since the financial crisis. The Bank of England ...
09/08/2023

Mortgage Rates Rise Again

Interest Rates have risen to the highest point since the financial crisis. The Bank of England has followed the Fed and ECB with a 0.25% rise.

The Bank of England (BoE) has raised interest rates by 0.25% to 5.25% this will be the 14th consecutive increase and record high since the 2007/08 financial crisis. It may also prompt another round of mortgage rate rise.

Impact on mortgage rates

There are around 2.2 million homeowners in the UK on variable rates, according to the latest data. Their mortgages go up as BoE raises interest rates.

The BoE's credit data published on Monday last week showed mortgage approvals rose to the highest level in eight months in June, despite higher cost of borrowing via elevated mortgage rates.
The average two-year fixed-rate mortgage hit 6.86% last week, according to Moneyfacts. Analysts, however, are expecting banks to keep the cost of fixed-rate deals on the downward trajectory with leading banks including Barclays (BARC.L), TSB, HSBC (HSBA.L) and Nationwide (NBS.L) all cutting their rates.

For major moves much below 6%, we can expect to have to wait for inflation to fall on a sustained basis and the Bank of England to be weighing up rate cuts. If you’ve been sitting on a variable rate, waiting for a good time to fix, then with Bank of England rates set to rise twice more, this could be what you’ve been waiting for"

"You will need to be comfortable with watching fixed rates fall further into next year, but you will have the certainty of a fix at a lower rate than we’ve seen for weeks."

Why landlords should be looking at HMOs for their next investment. We have listed some of the key benefits below. Higher...
13/07/2023

Why landlords should be looking at HMOs for their next investment. We have listed some of the key benefits below.

Higher Potential Yields

There will be higher yields letting your property to us on a long term basis as there won't be any voids/change of tenants.

There is Less Risk

We will rent your property on a long term basis of 5 years or more offering a guaranteed rent.

Passive Income

You will receive a guaranteed rental income on the 1st of each month there fore eliminating rent arrears.

Conclusion

We will ensure your investment is secure by offering a long term tenancy for 5 years. This is a great way of receiving a passive income without any headaches. We will rent your property directly and become your tenant. Our team are very experienced and we currently have over 10 million pounds in assets under our management. If you would like more information on our services please contact one of our friendly team today.

The Benefits and Challenges of Investing in HMO Properties for Enterprises.Visit Here for more: https://shorturl.at/hFJS...
24/04/2023

The Benefits and Challenges of Investing in HMO Properties for Enterprises.

Visit Here for more:
https://shorturl.at/hFJSU

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