100846pwpadmin

ADVICE: What to consider before expanding your portfolio

If you’re thinking of expanding your portfolio and making further investment in buy-to-let in the coming year, you need to be clear on both your current financial position and how your commitments and profits might change in the future.

So, what is 2025 likely to bring that could affect the viability of your property portfolio and your position as a landlord?

Labour’s RRB, which is currently at the Committee Report stage in the House of Commons and could pass into law as early as the spring, will bring the biggest change to letting in the last 25 years.

Section 21 is set to be abolished, and with it, the assured shorthold tenancy agreement. Tenancies will become periodic (rolling from one month to the next), with tenants able to give two months’ notice at any time and landlords unable to evict them without a legally valid ground.

Here are some of the key upcoming changes:

• Mandatory Registration – Landlords must join an ombudsman and register both themselves and their properties on a new online portal.

• Higher Fines – Penalties for non-compliance will increase.

• No Rent Bidding Wars – Landlords cannot encourage offers above the advertised rental price.

• Pet Restrictions – Landlords cannot refuse tenants with pets without a valid reason.

• No Blanket Bans – It will be illegal to exclude tenants based on having children or receiving benefits.

Navigating these changes to ensure you remain fully legally compliant will be challenging, so it’s well worth working with a qualified agent who can handle most of the necessary administration on your behalf and take much of the legal responsibility off your shoulders.

However, there will be a rise in the ongoing cost of being a landlord, and it’s essential to understand, in particular, how regaining possession of your property will change.

Insurance rates have increased across the board, and with the expected passage of the RRB, your policy terms may change when it's time for renewal.

If you have rent guarantee insurance, these changes are even more likely, given the removal of Section 21 and the extended eviction notice period for rent arrears. The bill proposes raising the arrears threshold from two to three months and doubling the notice period from two to four weeks.

While the cost may not rise significantly, it’s crucial to understand how these changes could impact future claims.

If expanding your portfolio brings you to four or more properties, it’s important to understand how this affects mortgage lending. Your total borrowing cannot exceed 75% of your overall portfolio value.

If you’ve purchased property in the past few years with a loan-to-value (LTV) of 80% or higher, it’s wise to get an up-to-date valuation on all your buy-to-let properties to ensure you have at least 25% equity.

While the base rate is expected to gradually decline in the coming years, long-term mortgage rates may see short-term increases. Following the Labour budget, rates are projected to decrease at a slower pace. If you have a five-year fixed-rate mortgage expiring in 2025, assess potential changes to your monthly payments and stress-test your finances to see the impact of a 2% or greater rate increase.

Regularly evaluate your portfolio’s profitability by factoring in:

• Maintenance expenses (e.g., boilers, roofing).

• Rental income.

• Inflation, with forecasts suggesting property and rental growth will outpace it.

Rental prices are projected to rise by approximately 17% over the next five years, exceeding both inflation and wage growth. Consult local market experts to understand trends in your area -many locations offer excellent investment opportunities.

The imbalance between housing supply and demand in the UK continues to push rental prices higher. As new developments struggle to keep up with population growth, landlords in areas with limited housing availability often have the flexibility to set competitive rental rates.

While property values may experience short-term fluctuations, they have shown steady long-term growth, especially in urban centres and economically vibrant regions. Cities such as Manchester, Birmingham, and parts of London are seeing rising demand due to regeneration projects and infrastructure improvements, making them strong prospects for long-term property appreciation.

The biggest tax change recently for landlords in England was the increase in the higher Stamp Duty rate for additional properties, from 3% to 5%, as of 31st October, which will add to the up-front cost for your next property purchase. It’s also worth noting that from 1st April, the zero-rate threshold for the standard rate will drop back to £125,000, with a 2% rate applied to the portion from £125,001 to £250,000.

From 11th December, Wales has also changed its Land Transaction Rates. The higher residential rates of Land Transaction Tax applying to purchases of additional residential properties will increase by 1%, raising an estimated additional £7 million in 2025-2026. This change is broadly in line with changes made to Stamp Duty Land Tax in England and Northern Ireland.” This is an additional 5% tax on top of the existing rates.

Although capital gains tax and inheritance tax weren’t increased for property in the recent Autumn Budget, it’s important to recognise that both these taxes are likely to apply to your property investments in the future. So, do make sure you have discussed your plans for selling or passing on your portfolio with a financial adviser or wealth manager, and have taken proper estate planning advice to make sure you and your beneficiaries mitigate tax liabilities down the line.

And if you are reporting property income of more than £30,000 on your self-assessment tax return, a reminder that you must use HMRC’s Making Tax Digital (MTD) to submit quarterly returns online:

• From 6th April 2026 for income above £50,000

• From 6th April 2027 for income of between £30,000 and £50,000

You can sign up to start using the system now, to make sure you’re familiar with it by the deadline – see the latest notes on GOV.UK.

Disclaimer: This blog post includes content sourced from an article titled "ADVICE: What to consider before expanding your portfolio," authored by Leaders and published on February 21, 2025, on LandlordZONE. The original article can be accessed at https://www.landlordzone.co.uk/news/what-to-consider-before-expanding-your-portfolio. All rights to the original content belong to the respective author and publisher. This reproduction is intended solely for informational purposes and does not constitute legal advice.

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by 100846pwpadmin

Rotherham Rental Market: Key Insights for Landlords and Tenants

The rental market in Rotherham is experiencing notable changes, offering both challenges and opportunities for landlords and tenants alike. Understanding these trends is vital for navigating the market effectively. At My Landlord Cares, we specialize in supporting both landlords and tenants, ensuring their needs are met with expertise and care. In this post, we’ll analyze the latest rental statistics in Rotherham and share actionable insights.

According to the latest data, the average monthly rent in Rotherham is £632. This represents a 7.7% increase from £587 in November 2023. This steady rise in rents mirrors broader regional trends, as average rents in Yorkshire and the Humber climbed from £761 to £804 over the same period.

For landlords, these figures signal a strong market with increasing demand. Tenants, however, may face challenges in budgeting as rents rise.

Rental prices in Rotherham vary significantly depending on property type:

• Flats and maisonettes: £512
• Terraced houses: £622
• Semi-detached houses: £684
• Detached houses: £855

Detached homes and larger properties command higher rents due to their appeal to families and tenants seeking more space.

The number of bedrooms is another key factor influencing rental prices in Rotherham:

• 1-bedroom properties: £445
• 2-bedroom properties: £563
• 3-bedroom properties: £682
• 4+ bedroom properties: £1,005

These trends align with the growing preference for more spacious accommodations, especially in the wake of increased remote work and lifestyle changes since the pandemic.

Rotherham’s rental prices remain competitive compared to regional and national averages. While the Yorkshire and the Humber average is £804, the national average in Great Britain is £1,319. This affordability makes Rotherham an attractive option for tenants seeking quality housing at a lower cost.

For landlords, this affordability, combined with rising demand, positions Rotherham as a prime location for property investment.

The upward trend in rental prices presents a promising opportunity for landlords to maximize rental yields. However, achieving long-term success requires a careful balance between setting competitive rental rates and maintaining high occupancy levels.

At My Landlord Cares, we offer a comprehensive range of services, from tenant sourcing to property refurbishments, helping landlords minimize stress and maximize returns. Our ability to handle both minor and major refurbishments ensures your property is always tenant-ready without the need to coordinate with multiple contractors.

For tenants, understanding the rental market can help in securing the right property. While rents are rising, platforms like Rightmove and Zoopla provide valuable insights into available options. Working with an agency like ours ensures access to well-maintained properties and a transparent rental process.

The Rotherham rental market reflects broader housing trends, with rising rents driven by demand for quality housing. Landlords have opportunities to grow their portfolios, while tenants should plan carefully to find the right fit. Whether you’re a landlord or a tenant, My Landlord Cares is here to guide you through the process, offering expert advice and tailored solutions.

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by 100846pwpadmin

Annual rise in rent and mortgage spending now below 2% – Barclays

Choosing the right letting agent is one of the most important decisions a landlord can make. A good agent will protect your property, ensure reliable tenants, and save you time and stress. But a poor choice can lead to unnecessary costs, legal issues, and unhappy tenants.

If you’re a landlord in Sheffield, here are 10 essential landlord letting agent questions to ask before signing on the dotted line.

A strong tenant selection process reduces risks of arrears, damage, and turnover. Ask what referencing checks are done — including employment, credit, and rental history.

Transparency matters. Get a full breakdown of charges to avoid being caught out by unexpected costs.

From online portals to social media, effective marketing ensures properties are let quickly and at the right rent.

Clear processes for dealing with repairs prevent small issues from becoming costly problems.

Regular inspections protect your investment and keep tenants accountable.

When vetting letting agents in Sheffield, local knowledge is crucial. A good agent should understand area-specific demand, rent levels, and tenant expectations.

The rental market is heavily regulated. Your letting agent should demonstrate expertise in compliance, from deposit protection to safety certificates.

A tenant-focused agent reduces disputes and encourages longer tenancies. At My Landlord Cares, we believe supporting tenants leads to stronger returns for landlords.

References and testimonials provide valuable insight into how an agent really operates.

This final question gives agents the opportunity to show their values. For us at My Landlord Cares, it’s our first-hand landlord experience, ethical approach, and tenant support that make us stand out.

Finding the right letting agent is about more than convenience — it’s about trust, transparency, and expertise. By asking these landlord letting agent questions, you’ll ensure you choose a partner who truly understands your needs.

👉 Ready to work with an agent who knows what it’s like to be a landlord? Learn more about how we help landlords here.

For more on landlord rights and responsibilities, visit the official UK Government guidance on renting out your property.
click here.

🔹 Disclaimer: This blog provides general guidance only and should not be taken as financial or legal advice.

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by 100846pwpadmin

Legal Matters: Serving notices, don’t fall foul of the law

A crucial task for landlords and agents is to correctly serve statutory notices and other documents on tenant/s.

These are usually statutory notices and contractual documents, sometimes in prescribed form (meaning they must contain the correct information/text).

It is important that the notice is served in the correct way and in a way that service can be proven later – many a case arises because the recipient refuses to accept that a notice has been served or argues it was served incorrectly – see below the case of D’Aubigny v Khan & Anor (2023), the case is awaiting appeal.

First off, the method of service should be specified in the contract between landlord and tenant so that both parties are clear about what they have agreed to.

A method of “document service” clause in the letting agreement will inform the parties how documents are to be served. The court will use this clause to determine if the notice is correctly served.

If the agreement is silent on the matter, with any method of document service used, the party serving the document must prove that the recipient was aware of it, which is not easy to do.

Typical documents that may need to be served

There are many documents, some statutory and some contractual, which should be served on tenants either before, at the commencement, or during a tenancy, including:

1. The Energy Performance Certificate
2. Information about deposit protection
3. A current gas safety certificate
4. A copy of the property license when it is licenseable
5. The How to Rent Guide - must be the current version
6. An Electrical Installation Condition Report (EICR)
7. A detailed property inventory, ideally with photographs
8. Eviction notices - a notice seeking possession, S21 and S8

Care should be taken to ensure that the notice is served at the correct time. For example, the EPC notice should be given before the tenancy is entered into so that the tenant can assess the running costs of the property before making a decision to take on the tenancy.

The Gas Safety Certificate (GSC) should be served at the commencement of the tenancy, i.e., when the agreement is signed. However, a Court of Appeal ruled in Trecarrell House Ltd v Rouncefield (2020) that landlords can provide the GSC to tenants at any time before or when the section 21 notice is served. The court also emphasised that landlords who fail to comply with the Gas Safety Regulations face other sanctions, including potential criminal liability

The prescribed information must not be served until the deposit has been handed over – see the Siddeeq v Alaian (2024) case, where a landlord served the notice too soon. This was a county court ruling which has not so far been appealed.

The notice must be served to the person or persons named on the tenancy agreement. Many landlords and agents will serve just one notice for the tenancy, but if there are more people on the tenancy agreement, this is incorrect.  For the avoidance of misunderstandings, separate notices (copies) must be addressed to and sent to each person on the agreement.

Where, for example, a Section 21 notice is being served, each tenant should be noted on the form (Form 6A) and a copy of the form and a letter explaining what the form is for delivered and addressed to each tenant.

This action prevents any one tenant from claiming that they did not receive a notice, which could stymie any eviction process.

Part 6 – Service of Documents of the Civil Procedure Rules specifies how notices can be served.

II SERVICE OF THE CLAIM FORM IN THE JURISDICTION

6.3 - Methods of service

(1) A claim form may be served by any of the following methods –
(a) personal service in accordance with rule 6.5;
(b) first class post, document exchange, or other service which provides for delivery on the next business day, in accordance with Practice Direction 6A;
(c) leaving it at a place specified in rule 6.7, 6.8, 6.,9 or 6.10;
(d) fax or other means of electronic communication in accordance with Practice Direction 6A; or
(e) any method authorised by the court under rule 6.15.
(2) A company may be served –
(a) by any method permitted under this Part; or
(b) by any of the methods of service permitted under the Companies Act 2006.
(3) A limited liability partnership may be served –
(a) by any method permitted under this Part; or
(b) by any of the methods of service permitted under the Companies Act 2006 as applied with modification by regulations made under the Limited Liability Partnerships Act 2000.

The notices should be served by a method specified in the contract. Serving in person is best served by someone independent of the landlord (agent or process server) or in front of a witness when the landlord serves it. Serving at the property (delivered through the letterbox) should be similar.

My first class post requires proof of postage from a post office. If served by electronic means (e.g., email), then ideally, acknowledgement of receipt should be requested, and as a precaution, the notice should also be delivered by first-class post.

In each case, at least two working days, excluding bank holidays, should be allowed for receipt of the notice/s.

It is convenient and more certain to serve as many notices as possible when the agreement is signed at the property. This can be done with the landlord or agent present and at the time when the inventory is agreed and signed.

All the necessary notices can then be attached to the tenancy agreement and signed for, as listed on a separate sheet of paper.

Alternatively, if the convenience of email is used to serve these notices, an acknowledgement of receipt must be obtained.

D’Aubigny v Khan & Anor (2023) is awaiting appeal

In this case, a possession order was made out by the county court in the usual way – accelerated possession - under Section 21 of the Housing Act 1988.

The landlord acknowledged it was aware that the energy performance certificate, the gas safety certificate, and the current “How to Rent Guide” had to be served ahead of the Section 21 notice seeking possession.

However, the tenant disputed this and denied having received the documents. It claimed the possession order must fail. As the tenancy agreement made no reference to methods of service of notices, the tenant claimed that the landlord must prove service as per Wadsworth London Borough Council v Atwell (1995).

In Wadsworth, a notice to quit was served on a periodic tenant. Section 196(3) of the Law of Property Act 1925 permitted service of certain notices by leaving them at the last known place of residence of the person to be served, but this did not apply to service on a periodic tenant of a notice to quit where the tenancy agreement made no express provision for service of notice to quit. 

The tenant’s appeal succeeded. It was held that section 196 of the Act applied only to a provision in the contract and did not affect the mode of service; therefore, the service of the notice failed.

Wadsworth London Borough Council, however, relied on the Interpretation Act 1978, which says that a document served by post is deemed effectively served by prepaying a posted letter in accordance with the Act’s provisions.

At the initial hearing, the judge found for the landlord, Wadsworth London Borough Council, stating that the documents were effectively served according to section 7 of the Interpretation Act. The judge found that the Section 21 notice was valid in all respects and the landlord was entitled to possession.

The tenant’s appeal is now pending. Any change in the result may have important implications for landlords/agents who have failed to follow the correct service procedures. The case highlights the importance of following the service procedures to the letter, proof of service one way or another is important, as is having a relevant clause in the letting agreement.

This blog post reproduces the article "Legal matters: Serving notices – don’t fall foul of the law" by Tom Entwistle, published on December 14, 2024, on LandlordZONE. The original content is used here with attribution to the original source. All rights to the article belong to LandlordZONE and the respective author.

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by 100846pwpadmin