How do you see the current UK property market for US buyers?
We are seeing great opportunity for USD buyers. For example, we are currently acting for a US fund that intends to invest up to £1billion in prime Central London assets.
The higher the value of property you are seeking, the bigger the effective dollar saving.
What advice would you offer a US-based buyer?
If you are buying in the UK, you need to have a representative broker acting for you. The real estate industry is unregulated, and some agents are overvaluing property by up to 20%. We’ve seen unrepresented overseas buyers acquire properties that are extremely over-valued or in poor locations. If you get either wrong, you can potentially have paid millions over the real value or will struggle to resell the property due to location choice. Also, be aware that the process in the UK is very different – and much slower – than in the US. It can take 3, 4, even 5 months to close a transaction.
Is there a shortage of supply over demand for premium properties?
Yes, there is always a shortage of supply for premium properties, hence the high value they receive when they do go on the market. At this level, the majority of owners don’t need to sell and are very happy to hold onto properties and hand them down to generations.
What factors should potential buyers (or their representatives) consider?
Location, resale, and asking-price offers. There is always a cap on every property’s value, so don’t go beyond that level as you’ll struggle when it comes to resale and may not get your money back. In the UK, stamp duty (a property purchase tax) is very high, so make sure you not only buy for your short-term needs but also factor in your likely situation in 10+ years. Try to make sure the property will also meet your long -term requirements.
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Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department.
The following payments may apply when entering an Assured Shorthold Tenancy:
| First month’s rent | In advance |
| Tenancy Deposit | 5 weeks, or 6 weeks if annual rent is over £50,000 |
| Holding Deposit | One week’s rent, put towards your first rent due |
| Early termination when requested by the tenant | A charge not exceeding the financial loss experienced by the landlord |
| Default charge for late payment of rent | A maximum of 3% above Bank of England base rate, charged when rent is more than 14 days late |
| Default charge for replacement of lost key or security device | Equivalent to cost incurred |
| Changing the tenancy documents after the commencement of the tenancy, including change of sharer | £50 incl. VAT |
The following payments may apply when entering a Non-Housing Act Tenancy:
A Non-Housing Act Tenancy is formed when the annual rent exceeds £100,000 or the property is occupied by a Company rather that an individual.
| Inclusive of VAT | |
| Tenancy Setup Fee drafting and execution of tenancy agreement if supplied by us, collecting and holding the Security Deposit as Stakeholder, issuing protection certificates, if applicable, Open Banking type referencing of tenant and initial Right to Rent Checks | £360 |
| Check-in Fee checking into the property and reviewing inventory | minimum of £130 |
| Tenancy Continuation negotiating and drafting an extension | £150 |
| Change of Sharer – Deed of Assignment | £120 |
| Early Termination – Deed of Surrender | £120 |
| Guarantor Referencing Fee (each): | £30 |
| Deed of Guarantee Fee: | £50 |
| Late payment of rent | 3% above the Bank of England base rate |
This guide is for tenants and landlords in the private rented sector to help them understand their rights and responsibilities. This guide includes a checklist and further detail on each stage of the rental process.
Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department for a full breakdown of costs. Here’s a list of what you can typically expect to pay:
| Lettings Service Only: | 10%+VAT (12% inc. VAT) – Including rent collection |
| Letting and Management Service: | 16%+VAT (19.2% inc. VAT) |
| Short Let (less than 6 months): | 24%+VAT (28.8% inc. VAT) |
| Lettings Renewals Service: | 8%+VAT (9.6% inc. VAT) |
| Lettings and Management Renewal: | 14%+VAT (16.8% inc. VAT) |
| Short Let Renewal (less than 6 months): | 24%+VAT (28.8% inc. VAT) |
Additional non-optional fees and charges
We will not be charging clients fees for referencing, tenancy agreements or deposit registration.
The costs of a clean, EPC, gas safety, EICR, PAT and inventory are set by third party suppliers and prices may vary. The below schedule is to give you an idea of what you would typically pay.
All fees stated are inclusive of VAT (calculated at 20%):
During the tenancy (if required
INHOUS is a member of and covered by the ARLA/Propertymark Client Money Protection (CMP) Scheme.
We are also a member of a redress scheme provided by The Property Ombudsman www.tpos.co.uk.