With the economic forecast showing little signs of recovery, the residential and equestrian property market is likely to remain static for the next few months at least.
By Sarah Reece, associate partner with Berrys
Whatever the market, there will always be an undercurrent of people looking to sell their property. They may be moving areas to take up a new job; they may be selling a property following a bereavement or just downsizing. But whether these people will actually want to buy another property at the moment is debatable.
It is likely that with house prices remaining stagnant, home seekers may prefer to ride out the storm by renting in the short or medium term ready to get back onto the property market when the market turns and economic prospects look less uncertain.
This is a challenging time and even if you have cash in your back pocket there is very little quality property coming to the market at the moment to tempt you.
If you do have a quality property on your hands this might be the time to sell. Quality will always sell and this is definitely the case in the property market. There’s not much about at the moment so anything good will stand out and is thus extremely likely to attract a buyer.
Sensible buyers know that a one-off property may not come on the market again so, be it a house, farm or land, they will have to strike while it’s available, whatever the market outlook.
In the meantime, renting remains a sensible option for many and this trend is certainly being seen in rent levels. Rents are on the increase across the board whether it’s for a three bedroomed semi in the town or a quiet little cottage in the countryside.
Our agents in Cheshire are reporting an increasing number of requests for rent reviews from owners of rural and equestrian estates.
So if you have a little cottage empty at the moment, now might be an opportune time to consider letting it out. And those with rentals should also look at carrying out a rent review while rental values are strong. Most tenancy agreements will allow for rents to be reviewed at regular intervals according to the current open market rental values.
There is a huge opportunity for farm and rural property owners to maximise the value of their assets by renting out surplus dwellings.
Many farm cottages are no longer required by farm staff and these will be popular for families looking to rent in a rural location. Often there is land available too.
Aome of these will have been used for farm labour but that does not necessarily mean they still have to. Many older farm cottages on traditional farming estate will not have an agricultural tie. Occupancy conditions didn’t exist 50 or so years ago before planners and planning policy came into being.
Where an agricultural restriction is in place on a farm cottage it may be possible to lift it to enable the cottage to be sold, or let, on the open market. We have specialist planners that can help you do that.
If you do decide to rent out a property you must be aware of your obligations as a landlord and we would advise that you speak to an agent to ensure you are meeting legislation.
To maximise rental potential and secure reliable tenants we strongly recommend that you bring your property up to a high standard. Fixtures, fittings appliances and outbuildings should be up to scratch.
The modern family is looking for ensuite bedrooms and a fitted breakfast/kitchen to live in and it will be a worthwhile investment doing a few alterations to the living accommodation to provide what is required.
You may have a void period while doing the cottage up but you will find it easier to let and a property in good order will generally have less turnover of tenants.
Farmers with farm cottages, be they owner occupiers or tenants, are also responsible for their tenants’ welfare.
If you are a tenant with a cottage within your tenancy that has become surplus to requirements, it may be possible to sub let this with your landlord’s permission who will probably negotiate a share of the rental.
Amongst the legislation for landlords, The Gas Safety (Installation and Use) Regulations 1998 specify that landlords letting premises out for less than seven years, or under licence, have specific duties. These regulations also apply to LPG which is often used in rural areas.
Sarah Reece can be contacted at the Shrewsbury office of Berrys on 01743 267068 or email sarah.reece@berrybros.com
