Chichester Property News: best letting agent

Showing posts with label best letting agent. Show all posts

Thursday, 20 March 2025

How useful is calculating ‘£ per square foot’?

I am currently helping a landlord find a suitable rental property to add to his portfolio. I suggested an array of two-bedroom houses in Tangmere, which, amongst other things, I highlighted as offering excellent value when considering their ‘£ per square foot’. The landlord was a little baffled as to what this was and why it was important.

I explained that £ per square foot is one of the metrics I always use when analysing a potential property purchase (property price divided by total square footage of the property) as it gives an idea of the value for money you are getting.

Obviously, you have to consider the quality of the ‘square foot’ you are calculating i.e. an immaculate property in the best part of town will rightly cost more on a square foot basis than a rundown shack in a less desirable area.

When comparing similar homes in the same neighbourhood though, it can be a good gauge as to how much you should be paying for a particular property. Most estate agents will just talk about the number of bedrooms as an indicator of size, but this is an unfair comparison when a large bedroom has been split in two or a living room has been redesignated as a ‘bedroom’.

It can also become a powerful negotiation tool. Being armed with the knowledge of comparable properties is one thing, but the £ per square foot metric brings a level of objectivity to negotiations (although it does ignore garden size).

Back to the search at hand…

There are currently four traditional ‘two-up two-down’ houses in Tangmere, all with a garage and within 500 yards of one another. They are priced at £249,500, £259,950, £270,000 and £300,000.

Based on that, it seems pretty obvious which one to plump for right? This is where my trusty £ per square foot calculation comes in handy.

The ‘cheapest’ of the two-bed houses would be a decent buy at £249,500; and with a footprint of 605 square feet means it would cost £412 per square foot.

Spending £10,450 more will get you an additional 50 square feet, bringing the overall cost down to £397 per square foot.

The £270,000 option is the smallest of them all (at 588 square feet). That equates to £459 per square foot, placing it bottom of the pack when considering ‘bricks for your buck’.

The most expensive of the four (priced at £300,000) is also the biggest thanks to the addition of a 90 square foot conservatory. Whilst conservatory space is normally less ‘valuable’ than original house space (traditional conservatories are cheaper to add on than bricks and mortar), this one warrants using its total 745 square feet when calculating a cost of £403 per square foot.

The eagle-eyed amongst you will note the most expensive house is NOT the outright cheapest when it comes to £ per square foot (going against the narrative I was surely spinning). But, when you factor in each property’s condition and the works required to bring all four houses up to an immaculate standard, you soon realise it does in fact warrant the (small) extra expense when using this metric.

Furthermore, this is where I believe those who are ‘in the know’ could use the traditional headline figures to work for them. Give it a little time and, having been overlooked as ‘expensive’, I suspect a price reduction is likely before it eventually sells.

Also, do you think it will be easier to negotiate the price of the already ‘cheap’ two-bed houses downwards, or do you think it will be easier to state the fact that, at £300,000, this one seems pretty pricey considering you can get a similar two-bed house round the corner (albeit in need of some work) for £50,000 less?

By using this knowledge to your advantage, I think you could end up bagging a bit of a bargain by getting the best of the comparable properties on offer for a better price; ultimately meaning that it would become the cheapest on a ‘£ per square foot’ basis.

If you are thinking of buying a rental property and would like me to crunch the numbers on it to ensure you are maximising your investment, please get in touch.

Thursday, 5 December 2024

Landlords - what you should check before arranging a viewing

Demand for rental property is at record highs, with literally dozens of prospective tenants wanting to view and snap up a property within hours of it being marketed. A recent house I listed had over 50 enquiries within 48 hours; but clearly it can only be let once! Processes therefore need to be put in place to avoid wasting the time of both yourself and some of the interested tenants who either won’t be suitable for the property or will find that the property is not suitable for them.

The first port of call is to understand who will be living at the property, as there may be restrictions on the property’s usage from both a legal and/or practical perspective. For example, I recently had two couples and a friend wanting to share a three-bedroom house. Housing five adults would mean more wear and tear on the property than many of the other potential applicants but, even more importantly, it would mean the landlord having to apply for an HMO license from the council (at a cost of £1,422!). Conversely, I had two friends wanting to rent a two-bedroom apartment; not a problem I said, but are you happy with the second bedroom only being a single? They weren’t, and thus checking this saved me and them the bother of viewing a flat that wasn’t appropriate for their needs.

You should also speak to the tenants about their financial situation; doing so now will save conducting a viewing with tenants who might fall in love with a property, only to find they can’t pass the referencing. You should ask whether they have any credit issues that might affect their application, along with understanding their income to ensure it passes the affordability criteria set out by referencing agents (typically requiring an annual household income of 30 times the monthly rent). If an issue is identified, you could consider whether an alternative solution can be found, such as having a guarantor or for them to pay rent upfront.

Finally, understanding the tenants’ situation is often useful. If the property is vacant and therefore available to rent immediately, it is beneficial to find tenants who can move in as promptly as possible. On the other hand, if the property is not ready to move into for a couple of months, then it’s little good showing it to someone who needs to move within a fortnight! You may also discover that the prospective tenants are only looking to rent for a short period of time, which may not fit with your preference for a long-term tenancy.

All being well, I then send the prospective tenants a video walkthrough of the property, which is recorded from a first-person perspective as if they were viewing the property (including commentary). This shows far more than a description, photographs and floorplan can do alone, and helps to ensure the property is suitable for them. This has greatly cut down the number of viewings whereby the prospective tenants weren’t already chomping at the bit to take the property (saving everyone’s time).

This all means by the time I’m viewing a property with potential tenants it is highly likely that they will want the property (assuming it matches the video) and that I will want to, and be able to (from a referencing point-of-view) rent it to them.

Thursday, 11 April 2024

Five things to check when choosing a letting agent

Using a letting agent to manage your rental property should relieve you of hassle, whilst improving your return on investment. Here are five things to look out for though to prevent you being stung by a poor performing or sneaky letting agent.

1. Legal requirements
It is a legal requirement for all letting agents to be a member of a property ombudsman or redress scheme, which ensures you have a port of call if you have reason to complain about their service. Letting agents should also have indemnity insurance to protect you against any mistakes, as well as Client Money Protection insurance, which will compensate you if the agent should misappropriate your funds. Certificates for all of these should be provided upon request and be available on their website - if they don’t have them, they are breaking the law!

2. Service
Ensure you understand what level of service you expect from a letting agent and whether they can deliver it. Discuss what options are available and what the proposed service includes as letting agents’ interpretation of ‘fully managed’ can vary, and this can be at odds with landlords’ expectations. Ask what marketing the agent will undertake, what tenant referencing they perform (and if they’ll supply you with copies) and what the move-in process entails (including which deposit scheme they use and the level of detail to their inventories). Ask how often they will undertake inspections at your property and what their process is if rent isn’t received on time.

3. Fees
A major factor in choosing any service is its cost (although I’d argue value for money is more important than ultimate price). Fortunately, it is a legal requirement for letting agents to list all their fees on their website and in their offices. You should question those who aren’t doing this - firstly because it’s illegal not to, but secondly…what are they hiding?! A myriad of extra fees hidden away in the small print of their management contract can soon add up. Also, ask if they add commission to maintenance invoices; this isn’t illegal (if it’s made clear), but you might wonder why organising repairs isn’t simply part of their management fee.

4. Reviews
Perhaps the best way to choose a letting agent (like with any service) is by seeking a recommendation or referral from someone you trust. Failing that, letting agents are likely to offer up testimonials from their current clients, although it’s perhaps better to seek them out for yourself by looking up their reviews online.

5. Contracts
Whichever agent you decide upon, make sure you receive a written management contract. This should set out the service the letting agent will undertake for you, whilst clearly listing all the fees you’ll ever need to pay. This will provide clarity for both parties and should help avoid any mis-understandings or disputes at a later date. Be sure to carefully read the contract and raise any terms you are unhappy with before you sign it and the agent starts working for you.

This article was featured in...

If you are looking for an agent that is well established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 6 July 2023

Landlords - what you should check before arranging a viewing

Demand for rental property is at record highs, with literally dozens of prospective tenants wanting to view and snap up a property within hours of it being marketed. A recent house I listed had over 50 enquiries within 48 hours; but clearly it can only be let once! Processes therefore need to be put in place to avoid wasting the time of both yourself and some of the interested tenants who either won’t be suitable for the property or will find that the property is not suitable for them.

The first port of call is to understand who will be living at the property, as there may be restrictions on the property’s usage from both a legal and/or practical perspective. For example, I recently had two couples and a friend wanting to share a three-bedroom house. Housing five adults would mean more wear and tear on the property than many of the other potential applicants but, even more importantly, it would mean the landlord having to apply for an HMO license from the council (at a cost of £1,333!). Conversely, I had two friends wanting to rent a two-bedroom apartment; not a problem I said, but are you happy with the second bedroom only being a single? They weren’t, and thus checking this saved me and them the bother of viewing a flat that wasn’t appropriate for their needs.

You should also speak to the tenants about their financial situation; doing so now will save conducting a viewing with tenants who might fall in love with a property, only to find they can’t pass the referencing. You should ask whether they have any credit issues that might affect their application, along with understanding their income to ensure it passes the affordability criteria set out by referencing agents (typically requiring an annual household income of 30 times the monthly rent). If an issue is identified, you could consider whether an alternative solution can be found, such as having a guarantor or for them to pay rent upfront.

Finally, understanding the tenants’ situation is often useful. If the property is vacant and therefore available to rent immediately, it is beneficial to find tenants who can move in as promptly as possible. On the other hand, if the property is not ready to move into for a couple of months, then it’s little good showing it to someone who needs to move within a fortnight! You may also discover that the prospective tenants are only looking to rent for a short period of time, which may not fit with your preference for a long-term tenancy.

All being well, I then send the prospective tenants a video walkthrough of the property, which is recorded from a first-person perspective as if they were viewing the property (including commentary). This shows far more than a description, photographs and floorplan can do alone, and helps to ensure the property is suitable for them. This has greatly cut down the number of viewings whereby the prospective tenants weren’t already chomping at the bit to take the property (saving everyone’s time).

This all means by the time I’m viewing a property with potential tenants it is highly likely that they will want the property (assuming it matches the video) and that I will want to, and be able to (from a referencing point-of-view) rent it to them.

Thursday, 8 December 2022

Five things to check when choosing a letting agent

1. Legal requirements
It is a legal requirement for all letting agents to be a member of a property ombudsman or redress scheme, which ensures you have a port of call if you have reason to complain about their service. Letting agents should also have indemnity insurance to protect you against any mistakes, as well as Client Money Protection insurance, which will compensate you if the agent should misappropriate your funds. Certificates for all of these should be provided upon request - if they don’t have them, they are breaking the law!

2. Service
Ensure you understand what level of service you expect from a letting agent and whether they can deliver it. Discuss what options are available and what the proposed service includes as letting agents’ interpretation of ‘fully managed’ can vary, and this can be at odds with landlords’ expectations. Ask what marketing the agent will undertake, what tenant referencing they perform (and if they’ll supply you with copies) and what the move-in process entails (including which deposit scheme they use and the level of detail to their inventories). Ask how often they will undertake inspections at your property and what their process is if rent isn’t received on time.

3. Fees
A major factor in choosing any service is its cost (although I’d argue value for money is more important than ultimate price). Fortunately, it is a legal requirement for letting agents to list all their fees on their website and in their offices. You should question those who aren’t doing this - firstly because it’s illegal not to, but secondly…what are they hiding?! A myriad of extra fees hidden away in the small print of their management contract can soon add up. Also, ask if they add commission to maintenance invoices; this isn’t illegal (if it’s made clear), but you might wonder why organising repairs isn’t simply part of their management fee.

This article was featured in...

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 16 September 2021

Landlords - what you should check before arranging a viewing

Demand for rental property seems to be at record highs, with literally dozens of prospective tenants wanting to view and snap up a property within hours of it being marketed. A recent house I listed had over 50 enquiries within 48 hours; but clearly it can only be let once! Processes therefore need to be put in place to avoid wasting the time of both yourself and some of the interested tenants who either won’t be suitable for the property or will find that the property is not suitable for them.

The first port of call is to understand who will be living at the property, as there may be restrictions on the property’s usage from both a legal and/or practical perspective. For example, I recently had two couples and a friend wanting to share a three-bedroom house. Housing five adults would mean more wear and tear on the property than many of the other potential applicants but, even more importantly, it would mean the landlord having to apply for an HMO license from the council (at a cost of £1,098!). Conversely, I had two friends wanting to rent a two-bedroom apartment; not a problem I said, but are you happy with the second bedroom only being a single? They weren’t, and thus checking this saved me and them the bother of viewing a flat that wasn’t appropriate for their needs.

You should also speak to the tenants about their financial situation; doing so now will save conducting a viewing with tenants who might fall in love with a property, only to find they can’t pass the referencing. You should ask whether they have any credit issues that might affect their application, along with understanding their income to ensure it passes the typical affordability criteria set out by referencing agents. If an issue is identified, you could consider whether an alternative solution can be found, such as having a guarantor or for them to pay rent upfront.

Finally, understanding the tenants’ situation is often useful. If the property is vacant and therefore available to rent immediately, it is beneficial to find tenants who can move in as promptly as possible. On the other hand, if the property is not ready to move into for a couple of months, then it’s little good showing it to someone who needs to move within a fortnight! You may also discover that the prospective tenants are only looking to rent for a short period of time, which may not fit with your preference for a long-term tenancy.

All being well, I then send the prospective tenants a video walkthrough of the property, which is recorded from a first-person perspective as if they were viewing the property (including commentary). This shows far more than a description, photographs and floorplan can do alone, and helps to ensure the property is suitable for them. This has greatly cut down the number of viewings whereby the prospective tenants weren’t already chomping at the bit to take the property (saving everyone’s time and helping to keep people safe during the pandemic).

This all means by the time I’m viewing a property with potential tenants it is highly likely that they will want the property (assuming it matches the video) and that I will want to, and be able to (from a referencing point-of-view) rent it to them.

This article was featured in...

Thursday, 10 December 2020

CRJ Lettings named ‘Best Letting Agent in Chichester’ four years in a row

I’m pleased to say that for the fourth year in a row, CRJ Lettings has been named ‘Best Letting Agent in Chichester’ by allAgents; a respected name in the property industry.

When I set-up CRJ Lettings I did so because I felt I could do a better job of serving Chichester’s landlords and tenants. I didn’t aim to be the biggest letting agent, stretching myself as I moved from one property to the next. Instead, I wanted to be the best letting agent, focusing solely on Chichester’s rental market. I aimed for quality over quantity; working with discerning landlords who appreciate a more personal level of service (and yet at a fair and transparent price).

This meant from day one I have always been most interested in the feedback I receive from my landlords and tenants. After all, whilst lettings may be seen as a ‘property’ business it’s really more about people and personality; because who would you trust to look after your best interests - someone in it purely for the money, or someone prepared to dedicate the time and effort to build a relationship with you such that trust, confidence, and ultimately a smooth transaction will naturally follow?

As a small independent letting agent I don’t have targets for how many valuations I should get, nor do I calculate my conversion rate for signing landlords up to my service. I’ve even told people I’m not right for them if I believe that to be the case (student lets, for instance, is something I don’t normally take on). Providing a quality service gives me far more personal satisfaction than simply focussing on the bottom line of the balance sheet.

It’s nice to pat yourself on the back sometimes, but it’s even nicer when my landlords and tenants do so (how many letting agents actively seek reviews from their tenants I wonder?) I’ve now clocked up 54 Google reviews from my landlords and tenants and 53 reviews on allAgents - all of them a resounding 5-star!

It’s also great that the majority of my newest landlords are coming to me via word of mouth. A personal recommendation is always the best way for you to choose a reputable business. Second to that should be a company’s reviews and testimonials in my opinion - but only if they can be trusted! That’s why receiving this accolade from allAgents means something, what with them being the UK’s largest customer review website for the property industry.

So, whilst I don’t normally use this space as self-promotion, I’m a little chuffed about being named Best Letting Agent in Chichester (again!). Thanks to my great customers, tradespeople and service providers who helped make it possible.

This article was featured in...

Thursday, 18 June 2020

Five things to check when choosing a letting agent

1. Legal requirements
It is a legal requirement for all letting agents to be a member of a property ombudsman or redress scheme, which ensures you have a port of call if you have reason to complain about their service. Letting agents should also have indemnity insurance to protect you against any mistakes, as well as Client Money Protection insurance, which will compensate you if the agent should misappropriate your funds. Certificates for all of these should be provided upon request - if they don’t have them, they are breaking the law!

2. Service
Ensure you understand what level of service you expect from a letting agent and whether they can deliver it. Discuss what options are available and what the proposed service includes as letting agents’ interpretation of ‘fully managed’ can vary, and this can be at odds with landlords’ expectations. Ask what marketing the agent will undertake, what tenant referencing they perform (and if they’ll supply you with copies) and what the move-in process entails (including which deposit scheme they use and the level of detail to their inventories). Ask how often they will undertake inspections at your property and what their process is if rent isn’t received on time.

3. Fees
A major factor in choosing any service is its cost (although I’d argue value for money is more important than ultimate price). Fortunately, it is a legal requirement for letting agents to list all their fees on their website and in their offices. You should question those who aren’t doing this - firstly because it’s illegal not to, but secondly…what are they hiding?! A myriad of extra fees hidden away in the small print of their management contract can soon add up. Also, ask if they add commission to maintenance invoices; this isn’t illegal (if it’s made clear), but you might wonder why organising repairs isn’t simply part of their management fee.

This article was featured in...

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 26 March 2020

Do you trust your letting agent?

Having met a couple of new landlords for a cup of tea and a chat about their options in purchasing their first buy-to-let, they posed me the question “why should we use you?”

It was a fair question and one that I hoped I’d covered in the previous hour I’d spent chatting with them about the market, the type of property that might best match their circumstances and my own experience with buy-to-let.

Not because I’d been spouting out my qualifications, property redress scheme membership or the excellent value for money I believe I offer. More by way of the natural conversation we had, which I hoped would’ve demonstrated my honesty, openness and the passion I have for property and helping people.

Ultimately, it all comes down to trust. Like with any service provider, wonderful promises can be made but ultimately you need to trust that they can deliver upon them.

I use, and recommend to others, my accountant, insurance broker, mortgage broker, solicitor and tradesmen because I trust them. I know they are qualified to do the job and offer a good service. I’ve done my best to find those that offer the best value, but ultimately it all comes down to repeatedly using those I trust will act in my best interests.

Similarly, as I don’t sell properties, I often get asked which estate agent I’d recommend. There are a couple I’d happily suggest because I’ve used them myself and I trust their advice. I’d always recommend contacting a few and seeing who you build the most rapport with and can trust to do the best job for you (as well as searching for reviews and testimonials).

A trusted agent should have an open line of communication with their client, regardless of whether or not there’s ‘something in it’ for the agent. A trusted agent should have expertise on their local property market. They will know their business, their client’s business, and they should have enough general knowledge about how things work to offer advice worth taking.

Letting agents should remember that it is the people (both landlords and tenants) that are the lifeblood of their business and that they should be treated accordingly.

These are the things you should be looking for when instructing an agent. Only then can you be sure they have both the competence to do the job well, whilst trusting they’ll have your best interests in mind.

This article was featured in...

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Sunday, 1 December 2019

Chichester Property News - Issue 45 - December 2019

Featuring the articles:

"Are general elections good for Chichester's property market?",
"How profitable is buy-to-let in Chichester?",
"CRJ Lettings named 'Best Letting Agent in Chichester'",
"Community Focus: Review of 2019"

and "Buy-to-let deal of the month: 3 bed house in Tangmere, £260,000, 4.8% yield"

➕ Plus, the latest average property values, rents and yields in Chichester!

Thursday, 7 November 2019

CRJ Lettings named ‘Best Letting Agent in Chichester’ three years running

I’m pleased to say that for the third year running, CRJ Lettings has been named ‘Best Letting Agent in Chichester’ by allAgents; a respected name in the property industry.

When I set-up CRJ Lettings I did so because I felt I could do a better job of serving Chichester’s landlords and tenants. I didn’t aim to be the biggest letting agent, stretching myself as I moved from one property to the next. Instead, I wanted to be the best letting agent, focusing solely on Chichester’s rental market. I aimed for quality over quantity; working with discerning landlords who appreciate a more personal level of service (and yet at a fair and transparent price).

This meant from day one I have always been most interested in the feedback I receive from my landlords and tenants. After all, whilst lettings may be seen as a ‘property’ business it’s really more about people and personality; because who would you trust to look after your best interests - someone in it purely for the money, or someone prepared to dedicate the time and effort to build a relationship with you such that trust, confidence, and ultimately a smooth transaction will naturally follow?

As a small independent letting agent I don’t have targets for how many valuations I should get, nor do I calculate my conversion rate for signing landlords up to my service. I’ve even told people I’m not right for them if I believe that to be the case (student lets, for instance, is something I don’t normally take on). Providing a quality service gives me far more personal satisfaction than simply focussing on the bottom line of the balance sheet.

It’s nice to pat yourself on the back sometimes, but it’s even nicer when my landlords and tenants do so (how many letting agents actively seek reviews from their tenants I wonder?) I’ve now clocked up 45 Google reviews from my landlords and tenants and 42 reviews on allAgents - all of them a resounding 5-star!

It’s also great that some of my latest landlords are coming to me via word of mouth. A personal recommendation is always the best way for you to choose a reputable business. Second to that should be a company’s reviews and testimonials in my opinion - but only if they can be trusted! That’s why receiving this accolade from allAgents means something, what with them being the UK’s largest customer review website for the property industry.

So, whilst I don’t normally use this space as self-promotion, I’m a little chuffed about being named Best Letting Agent in Chichester (again!). Thanks to my great customers, tradespeople and service providers who helped make it possible.

This article was featured in...

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 7 March 2019

Where will all the new homes in Chichester go?

Chichester has faced a target of delivering 435 new homes a year, which has been exceeded in the past three years; in 2015/16 553 were built, in 2016/17 440 were built and in 2017/18 648 were built. This isn’t enough for the powers that be however, as the local plan (due to be released in 2020) is likely to set out an annual target of building 550-650 new homes. So, where are all these new homes going to go?

It may surprise you to hear that only 8.8% of England is actually built on, with the majority (72.9%) being used as farmland, 3.8% being designated as ‘green urban’ (that’s parks, gardens and recreational space) and the other 14.5% remaining natural. So, all the houses, roads, shops, businesses, airports and other buildings take up less than 10% of the nation - which is quite amazing when you think about it.

Here in Chichester we’re less than half as densely urbanised than most of England, as we benefit from just 4% of the District being built upon. A further 2% of land is green urban, 69% farmland and, not surprisingly for an area that includes the South Downs, a higher-than-average 25% of our land remains natural.

I fear this abundancy of open space is why central government sees Chichester as an easy target to take on more housing. The higher end of the revised target (650 homes a year) would equate to more than 7,000 additional homes being built by 2030, which is a significant increase on the 50,000 or so existing properties in the Chichester District today.

So where are we going to build these new homes? It’s all well and good for central government to push for these schemes, but the knock-on effect is the strain upon local infrastructure i.e. the roads, public transport, schools, hospitals and other public services that need to be enhanced and added to.

The development at Whitehouse Farm is set to be the biggest in Chichester’s history, with 1,600 new homes planned. And farmland is also under threat in Shopwhyke, Westhampnett and Tangmere. But surely all these new residents will need to eat, so continuously building on farmland isn’t sustainable in the long-run. Unless housing is to be more densely built (think taller but smaller new-build units, with a lack of outdoor space) it seems the quarter of our District’s land that remains ‘natural’ could be under threat.

(This article was featured in the Chichester Observer's property section on March 7, 2019)

Clive Janes, CRJ Lettings

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 28 February 2019

Ten years on from Chichester’s property price low

Not that anyone knew it at the time, but ten years ago marked the ‘credit crunch’ induced market low for property prices in Chichester, having faced 17 months of falling prices.

Property prices peaked in Chichester at £291,021 in October 2007, just weeks after Northern Rock had faced queues of people outside its doors seeking to withdraw their money; an event which, in hindsight, marked the beginning of the financial crisis.

In the following 17 months, property prices in Chichester fell 21% to sit at £228,594 in March 2009, before rebounding 17% in the following year and 70% overall in the decade since, to sit at today’s average sale price of £388,261.

Whilst prices in Chichester fell every month between October 2007 and February 2008, it at first appeared the market had stabilised as prices increased again, getting close to the previous peak in August 2008 with prices rising back to £289,147. September 2008 - March 2009 was rough though, with the average home in Chichester losing over £60,000 in those short six months - that’s £332 per day!

It’s interesting to compare Chichester’s property price movements during this time compared to the UK as a whole. Whilst UK house prices peaked at a similar time (September 2007), fell a similar amount from peak to trough (19%) and bottomed out at the same time (March 2009), they have ‘only’ increased by 49% since, which is much less than in Chichester. And whilst Chichester broke through its October 2007 peak by September 2012, the UK only caught itself up again in August 2014.

I would therefore argue that Chichester has proven to be more resilient through the bad times than the UK as a whole. This aligns itself with the fact that property prices in Chichester have historically increased more than the UK average; which is why I often say property in Chichester is likely to bring with it stronger capital growth in the future.

This may in part be due to fewer ‘distressed sellers’ in Chichester i.e. those who need to sell, as 41% own the home they live in without a mortgage, compared to the UK average of 31%. And with the Brexit deadline just a few weeks away and prices having fallen for the past few months both in Chichester and the UK, it may be that resilience will be the name of the game in the coming months too.

If you’d like to follow the progress of Chichester’s property market going forward, please subscribe to my weekly e-newsletter at www.tinyurl.com/ChiPropertyNews

(This article was featured in the Chichester Observer's property section on February 28, 2019)

Clive Janes, CRJ Lettings

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 21 February 2019

To renew, or not to renew: that is the question

Most tenancy agreements last for a fixed period of six or twelve months. That means the tenants are obligated to pay rent and remain in the property for that length of time, whilst the landlord can’t increase the rent or ask the tenants to leave (without applying to a court). Many take it as read that as the end date of the contract approaches they’ll need to renew it, but that isn’t actually the case.

You see, many tenancy agreements will make provisions for the contract to continue on a contractual periodic basis. And even if they don’t, by law it will continue on a statutory periodic tenancy. In layman’s terms, these are both monthly rolling contracts, whereby the tenant is required to give one month’s notice to vacate the property, whilst the landlord may give two months’ notice to end the tenancy and regain possession of the property.

Whilst some tenants like the certainty of a fixed contract, many actually prefer the flexibility of not being ‘locked in’ to a long-term rental contract in case their circumstances change. As a landlord and letting agent I have always operated like this i.e. not re-signing contracts, finding it to be the best and easiest way to continue a tenancy, both administratively and in providing flexibility to both the tenants and landlord.

For me and my landlords, there’s also the added security that should the tenants conduct change or they start to fail in their obligations e.g. they stop paying the rent, we can regain possession with two months’ notice rather than having to wait until the end of the new fixed term (or having to take them to court, which is time-consuming, expensive and uncertain).

And whilst a landlord can, if they wish, increase the rent with two months’ notice during a periodic tenancy, you may have read in a previous article that I prefer to promote long-term tenancies by avoiding this where possible; only increasing the rent when it is significantly out of kilter from the ‘going rate’.

So why then do most letting agents insist on renewals? Well, whilst some may argue there’s more stability for their landlords that way, I think the only stability many of them are interested in is receiving their fees i.e. locking in a prolonged management fee and charging a renewal fee to both the landlord and tenant.

It will be interesting to see once the tenant fees ban takes hold whether letting agents change their tune in this regard, when they can no longer charge the tenant a renewal fee. Or perhaps they’ll end up charging the landlord double to make up for this?

Are you a landlord or a tenant and, if so, do you prefer to renew contracts each year or let them amicably turn into a periodic tenancy? Please do get in touch and let me know.

(This article was featured in the Chichester Observer's property section on February 21, 2019)

Clive Janes, CRJ Lettings

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