Rental demand in Oxford remains strong; and we have noticed rental increases in all parts of town. Some hotspots have had increase over 10% but on the whole student properties have risen 4% partly mindful of the predicted downturn in demand the year after next, and professional and family properties have gone up in line with the South East norms.

The next year or two will be interesting; local authority interference in the property market both through additional licensing and through restrictions on the movement from C3 usage to C4 together with changes in the Housing benefit rules could create a perfect storm in the HMO market. Any drop off in student demand for HMOs is likely to be more than compensated for by increase in demand through social housing sector, and next year when high numbers of both will be straining the sector, we must assume that there will be little or no planning permission granted, and we could see rents reach unprecedented levels. From April this year, single people under the age of 35 who apply for housing benefit, will not be able to live in independent accommodation. Housing benefit will only be payable if the applicant ins in shared accommodation.

This picture is not dis-similar to that reported by David Whittaker managing director of Mortgages for business, who has commented on in the country as a whole.
He said: “The seasonal lull in demand impacted average rents towards the end of 2011, but demand will be robust over the first few months of 2012 which will help strengthen prices. However, the problem we may face later this year is rental affordability.

“Overall, rents have been on the rise for the last two years, and there will come a point when average rents are simply too high for many people to afford. We then face the danger of rising rental arrears and a surge in demand for affordable rental property – demand that current stock levels cannot satisfy.

“This is why it is vital that lenders and the Government support property investors and landlords and make it easier for them to invest in multi-unit freehold blocks and Houses of Multiple Occupation. These are the property types that will help ease the rental sector’s burden and avoid a situation where people are unable to buy but also cannot afford to rent – the consequences of which would be very dire indeed.”

The Association of Residential Letting Agents (ARLA) is advising landlords to be aware of planning changes affecting certain types of rental properties.

Many local authorities have indicated they wish to enforce Article 4 directions, which will allow them to require planning permission if a property is being changed from a dwelling house (Class C3) to a House in Multiple Occupation (a ‘small HMO’ – Class C4).

Not only does this mean having to apply for planning permission (which may well not be granted) if your tenants change from being one family to, say, a group of three nurses sharing, but landlords could also have to apply for licences.

We remind clients that Oxford City’s Article 4 directive expires in February, and from that time, permission will be required to move from C3 usage to C4
If you are considering purchasing a property you will need to ensure that established usage can be documented on or before the 24th Feb 2012.

If you need any further advice, you may want to talk to a planning consultant……… JPPC at Bagly Lodge seem to be quite good, although they have not taken up our offer to do a guest blog on the subject!

Your local authority are responsible for collecting your rubbish.

If you have lived in your property for some time now, you will probably be aware of the day on which your rubbish is collected. The Oxford City Council website has useful information relating to the rubbish collection:

The day on which your rubbish is collected – http://www.oxford.gov.uk/PageRender/decER/Refuse_collection_days_occw.htm

What rubbish you should put into which bin -http://www.oxford.gov.uk/PageRender/decER/Whatgoesintoeachcontainer.htm

What to do if your rubbish collection is missed – http://selfservice.oxford.gov.uk/selfservice/form.aspx?form=Report_Missed_Bin

Mixing the rubbish – by putting the incorrect item in the incorrect bin – is known as contamination by the local authority and the refuse collectors will not collect any receptacle which contains the incorrect item, even if it is just one item placed in the wrong container.

You should also be aware that the refuse collectors will not take items which have not been placed inside the bin, with the lid shut.

For properties in the Oxford area which are governed by Oxford City Council, the authority are stepping up patrols in the area and are being much more stringent on occupants where rubbish has not been correctly left out for collection.  Where the officers find rubbish at the property, which is excessive, not properly bagged, or has been left in an untidy condition, they will take action against the occupants, which could include a financial prosecution.

Further information relating to the manner in which the rubbish should be left out for collection can be found using this link – http://www.oxford.gov.uk/PageRender/decER/Excess_Rubbish_occw.htm

Buy-to-let mortgage specialist Paragon said landlords could offset many of the costs incurred through letting property against their income, but many were unaware of the full range of costs they could claim.

For example, Paragon’s research shows that more than one in 10 landlords (13%) are not claiming for mortgage interest, despite it being a major cost for landlords.

College and County’s managing partner, Mark Crampton Smith said “a third of landlords don’t claim management or letting agent fees, with 55% of landlords not claiming for advertising costs incurred in letting their property. “He added: “I’m sure when landlords take all of these allowable costs into consideration it could generate a significant saving on their tax bill.”

If you require further information on the allowances for landlords you can download Paragon’s Tax Guide (prepared in association with Perrys Chartered Accountants), from www.paragon-mortgages.co.uk. This guide helps landlords from purchase through to sale and provides comprehensive information on income tax, limited companies and Capital Gains Tax, in addition to the list of tax reliefs available to landlords and top tax tips.

Nigel Terrington, Paragon Group Chief Executive, said: “Good tax planning is key. How landlords implement, manage and run their tax affairs could have a major impact on landlords’ property investments and their overall performance.

“Tax is a complex area and we are confident that our Tax Guide will help landlords obtain a better grasp of tax matters. It’s vital that landlords take advantage of the allowances open to them to maximise their return on investment.”

The award was presented by Dame Kelly Holmes, double Olympic Gold champion, at a lavish luncheon and ceremony in London attended by 400 of the UK’s top letting agents.

College and County were also recognised for their highly professional and expert letting service to students and presented with the national Silver Award for Student Lettings. The judges recognised that College and County strived at all times to innovate and were seen to be a friendly and enthusiastic agency which is excellent at what it seeks to achieve.

Mark Crampton Smith, senior Partner at College and County, “I am so proud of the team,” he said  to be voted the best Single Office Letting Agent in the Central Region, is true recognition that we really are delivering the quality of service that we strive for.

We are also proud to win the national Silver Award for Student Lettings. To be recognised nationally that we are constantly striving to exceed expectations in a competitive student market is very rewarding for the team.”

We are very happy to welcome Erika to the College and County staff team. Erika has joined Jane in the Accounts Department. She has written a short introduction to herself as follows:

I am from Hungary and have been living and Oxford for 5 years. My last job was also in Accounts, but working for a letting agency is a new experience for me. Every day is different, there are always new challenges, and I feel excited whenever there is new knowledge to acquire.

I have never experienced such professionalism in an office and I consider myself lucky to be part of it. What I find unique about working here is that I can feel that my colleagues love their jobs and they enjoy being here, they care about the company and I honestly believe it is very rare to have such a strong, devoted team. I very much hope to be a valuable member of this team and become just as efficient and energetic as everybody else at College and County.

Back in June last year Grant Shapps said:

“With the vast majority of England’s three million private tenants happy with the service they receive, I am satisfied that the current system strikes the right balance between the rights and responsibilities of tenants and landlords.

“So today I make a promise to good landlords across the country: the Government has no plans to create any burdensome red tape and bureaucracy, so you are able to continue providing a service to your tenants.”

Does Oxford City council’s new legislation being introduced in Oxford go against this promise to Landlords, who are in most cases “good” landlords?

A BBC report over the weekend cast a gloomy and critical eye over the private rental sector. This report was based on a report from the Chartered Institute of Environmental Health (CIEH). The report says that “One million rented homes in England ‘are dangerous’”, further adding that the number will rise because of changes in housing benefit and legal aid. Properties that we have recently been asked to value in Oxford for rental have not agreed with the CIEH report. Mark Crampton Smith says that most Landlords in Oxford are responsible and are fed up with being pilloried as money grabbing tyrants who leave tenants to live in dangerous conditions.

Congratulations to our Property Manager, Tina Doyle, on passing her NFOPP Technical Award.

The pass rate is 65% and Tina attained over 80% on each of the papers. This certainly shows that she knows her stuff!

Tina has now set the standard for the rest of the team.