By Angus Dixon
The first quarter of 2024 has been interesting. There seems to be a want from both buyers and sellers but a lack of urgency on either side or sometimes both!
The beginning for the year has brought some positivity, with increased buyer activity/registrations, holds on further interest rate hikes and also a cooling on much of the economic headwinds we experienced in 2023. This has been a welcome change to what was, across the board, a fairly challenging previous 12 months.
Lucian Cook, head of residential research at Savills stated in a recent report:
“The outlook for the housing market has certainly improved, partly because the mortgage market has recovered more quickly than expected. With the first rate cut rapidly coming into view and recessionary risks easing, greater stability has returned to the cost of mortgage debt, which has positively impacted domestic prime markets where many buyers rely on borrowing, most notably in leafy outer prime South and West London, as well as the commuter belt,”
The market is however still crying out for more stock despite the number of sales instructions in London being 17% above the five-year average in Q1. With buyer confidence coming back, particularly with domestic/needs based purchasers, hopefully this will encourage vendors to bring properties to the market
The top end of the market is still the best performing sales market sector, with £5m+ activity well above long-term trend levels according to LonRes. The statistics from February show that; sales were 4.2% higher than a year earlier and 25% ahead of the 2017-2019 (pre-pandemic) February average. New instructions in this market rose by 8.4% annually. However, there is a growing volume of available homes for sale in this market, with 26% more £5m+ properties for sale at the end of February than a year ago.
Q1 activity is broadly in line with trends seen in the same months both pre-pandemic and in 2023, but activity has fallen back from levels seen in 2021 and 2022.
Supply, based on new sales instructions, has risen more quickly but the available stock for sale is only increasing gradually – for that reason the market seems to be remaining fairly balanced.
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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.