As the trend of Hong Kong people migrating to the United Kingdom (UK) continues, it inevitably leads to the higher demand for housing in UK for owning and/or renting as Hong Kong people love buying property. The British Home Office, aka, Home Department, recently announced that the number of BNO visa applications by Hong Kong people in the first quarter of 2022 was increased by 25%, and the cumulative number of applications have reached the one of the highs at 120,000.
If Hong Kong people are to immigrate to a region, there will be a solid demand for property, no matter they choose to buy a house for their own use or investment or rent one.
Tenants are Paying 3 to 6 Months of Rent in Advance
According to UK local media updates, there are about 440 local property leasing agents that are having about 4,000 branches all over the country. The number of their rental property listings in hand have decreased from 30 listings in the past to 15 currently.
This has been caused by the higher rental demand by Hong Kong people while the number of available property for rent remain the same. The unbalanced demand and supply in the rental market has resulted into fierce urge of tenants seeking limited housing. Moreover, most of the potential tenants are willing to pay 3 to even 6 months’ rental payment in advance, or add an extra 10 to 20% higher monthly rental payment in total in order to secure for their desired rental property.
UK Average Monthly Rent Hitting A Record High
Report and statistics by some UK media has shown that the average monthly rent across the UK in the past year just reached a new high of £1,091, or up 9.5% on a year-to-year basis. The average monthly rent in London is £1,804, or a 14.2% higher than the same period in the past year. The latest rents in North West and West Midland, whereas Manchester, Liverpool and Birmingham are relatively well known to Hong Kong people, are at a up range of £800 to £873, going up for an almost 8% to 11% as compared to last year. Obviously, the overall rents have been pushed up due to the growing demanding leading to the shortage of supply of rental properties in the market.
179 New Rental Measures were in Force
If the rents in UK are on the rise, does it mean landlords and investors of rental property are happy with that? That seems to be not a simple straightforward answer indeed.
The UK government has continued to reform VAT and property rules in the past few years whereas a total of some 170+ new rules and regulations are in force. The tenancy laws in the UK are more favourable towards tenants. Thus, landlords are advised to be more conscious and careful before letting out their properties. Thorough background checks and stricter tenants screening should be applied so that landlords and investors of property will have less chance of facing late or non-payment of rent or any other possible disputes .
Furthermore, during the epidemic since two years ago, some tenants were unable to pay rent for half a year due to economic downturns. It has been a headache for the landlord to collect the rental payment as well as solve other problems over the property.
UK Tenancy Rules and Tax Issues
It is important to make yourselves compliant to the tenancy laws, rules and regulations as being the landlords in UK. Also, one must be aware of the residential tax issue and it will be best one can have some knowledge of filing the tax return along with tax reduction. Non-UK residents whom are buying buy-to-let property in UK must do their own homework well and thoroughly if they want to avoid pitfalls and perils of disputes over the property brought.
Hiring the Professional Locally
There are many trivia and tasks that needed to be tackled and dealt with when buying, letting out and managing the rental property. It is highly recommended that non-UK resident investors should hire a professional in the yield to do all the job for them in order to avoid problems and at the same time maximize their return. Asking for the service of a local leasing agent and property management company to assist one is doing tenants’ background check, tenant screening, monthly rental payment collection, regular property inspections and maintenance, ad hoc repair and renovation, submitting tax return and handling legal issues as well as being the mediator in dealing with the landlords-tenants relationship . . . etc is a very smart option.
We believe that most investors would like to have their property professionally handled so that they can have stable passive income without spending lots of time and effort and much hassles and troubles. This is especially true for non-UK resident from overseas. It is of vital importance that one can find a company with expertise, proven experience, good reputation and can offer “one-stop” service, instead of buying a property. , rental, mortgage, after-sales service and the sale of the unit can be arranged for the owner, and the owner can easily collect rent at home. If you are looking for the best service in the industry, Prop Home Ltd. is here to offer what you need. Simply contact us via email email@example.com or call one of our property specialists at 0345 8686 868.