News

Never Ending Regulations – 3rd April 2012

The Government have announced that they are considering implementation of Section 45 of the Flood and Water Management Act 2010. This section applies to residential properties which are occupied by one or more persons other than the owner, which of course would apply to rented property. Under this section of the Act, if a landlord fails to notify the water company of a tenant’s particulars and the tenant fails to pay the water charges the landlord would be responsible for those costs. Once this is implemented (if it is) landlords will no longer be able to rely on a tenancy agreement placing the onus of responsibility for the payment of water charges on the tenants. They will need to be more pro active in the way they deal with the water companies.

At the end of March the Fire Safety (Protection of Tenants) bill went through its second reading in the House of Commons unopposed. This bill is some way short of becoming law but when it does become law and is implemented it will require at least one mains powered smoke alarm with every rental property. Properties constructed within the last ten years or so have built in mains powered smoke alarm systems as a matter of course. Properties which are rewired or subject to more extensive electrical improvements should also be provided with mains powered smoke alarms at the time the other electrical works are carried out. There will however be a significant number of properties which do not have mains powered smoke alarms which is something landlords will need to look at in the foreseeable future. The installation of mains powered smoke alarms is not necessarily simple and easy. They cannot simply be wired into a lighting circuit and must be wired back to the main fuse board. In some cases this can cause damage and disruption to the property.

It would seem that, despite the Government’s promises when they took power not to interfere with the lettings market or load landlords with even more rules and regulations, this promise has fallen on stony ground and it seems very much as if it is business as usual.
For more information on the above or for general advice on the rental market Russells, who achieved no. 1 status both on Right Move and Prime Location during March as the agents in Cambridge with the most listings and most properties available for rental, are pleased to help. They can be contacted on 01223 521152.

Can You Multitask in a Busy City Office? – 31st January 2012

Jobs Opportunity

Lettings Administrator required at our busy Ely office to strengthen our team. The role includes general reception duties, organising small repairs on properties, administration and secretarial/word processing skills. The applicant should be well presented with an outgoing personality, confident in dealing with the public and word processing skills. This is a full time office based position with some Saturday morning working on a rota. In the first instance contact us for details.

New Year Statement from Russells – 5th January 2012

As we say goodbye to 2011 and look forward to 2012 the mood in the UK housing Market remains quietly optimistic, with “more of the same” being forecast by most of the industry analysts including the Nationwide, the NAEA, RICS and ARLA. Against the backdrop of anaemic economic growth and a deteriorating labour market, UK house prices have remained surprising resilient in 2011, especially in the South East of England.

Cambridge again seems to have bucked the national trend, having both a buoyant lettings market and a sales market that ended up the second best performing regional city in the UK (after Bradford) for 2011, seeing a year on year growth on houses prices of 5% according to the Nationwide Building Society’s House Price Index, Which is encouraging for both landlords and vendors in the City.

The UK Property Market is likely to continue to be an attractive proposition in 2012 thanks to rising demand and increased rents, the Royal Institution of Chartered Surveyors (RICS) has suggested. According to the organisation's housing market forecast for 2012, while the owner occupier sector is set to remain subdued, the residential lettings market will continue to perform well throughout the year. RICS noted that demand for rental properties remained strong over the course of 2011 due to many would-be first-time buyers being unable to access the sales market and this is something that looks set to continue over the coming twelve months. "As a result of this, the lettings market will remain firm which means that rents are likely to increase further, albeit at a slower pace than in 2011." chief economist Simon Rubinsohn is quoted saying.

An underlying feature of 2011 was the insufficient amount of rental properties available in Cambridge to meet demand. The city remains a popular location and even with the usual spikes in activity fuelled by the academic calendar, we witnessed a relatively constant demand throughout 2011 for quality homes in the area.

The relatively slow sales market has had the effect of pushing more people towards renting; letting out their property or both while they wait it out.

We found that the highest demand was for one or two bedroom homes in and around the centre of Cambridge, or near either the Science Park in the North or the research parks to the South, while Addenbrookes also remained high on the list of employers bringing potential tenants into the area.

With regards to predicting what 2012 will have in store for the housing market, we predict that strong demand for quality rental properties in Cambridge will remain. This in turn will cause increased levels of interest from buy to let investors keen to enter the Private Rental Sector who see it as a viable alternative the fluctuating stock markets and low interest rates. Cambridge remains a very good city in which to invest in bricks and mortar.

And what does 2012 hold in store for Russells? Having recently moved to our new prestigious offices in Dukes Court, Newmarket Road, we are now well placed to continue to serve the demands of both our landlords, tenants, vendors and buyers alike. We have also recently restored a former Public House (The Woolpack) in Sawston to serve as our administration head quarters.

In the north we have also increased our team in Ely to enable us to further serve the increasing lettings market that is emerging from the Cathedral City and its surrounds.

New Year Could Bring Rent Arrear – 5th December 2011

Nationally it has been reported that rent arrears of all rents owed in the country are now at record highs of 12.6%. The economic downturn and gloom is no doubt having an affect on some tenants. Cambridge however largely appears to have escaped the significant rent arrear problems. Russells arrears of rents due at end of November, including small underpayments were 0.3% The real potential problem that the New Year will bring is the cap on housing benefit.

Some landlords have previously specialised in taking housing benefit claimants. In other cases tenants have found themselves on housing benefit through no fault of their own either as a result of loss of employment or marital or relationship breakdown.

From 1st January 2012 the cap on housing benefit comes into effect. This means that there will be a maximum amount of housing benefit payable to claimants, as opposed to an almost limitless level of benefit which covers high rents. As a result, it is thought that many tenants who will see a drop in their housing benefit payments, will have insufficient funds to make up the difference between what they receive in housing benefit and their contracted rent. In these circumstances rent arrear levels could rise quickly and significantly.

If tenants fall into arrears landlords should take legal action quickly and swiftly. Various legal notices need to be served and an application made to the County Court. If there is a significant rise in possession hearings as a result of rent arrears, the courts will of course become busier and therefore the delay in obtaining a court hearing will become longer. Long delays will only lead to more problems.

Landlords should be aware that if they apply for a possession hearing, if the rent is less than two months in arrears on the date of the court hearing, a possession order is discretionary on the part of the judge. A judge is only required to give a mandatory possession notice if the rent is two months in arrears on the date of the court hearing. Consistent late payment or under payment of rent is also a discretionary matter as opposed to mandatory.

In these circumstances it is very important to take action quickly and use a solicitor who specialises in this sort of work. Reputable and reliable agents will advise landlords of the best course of action.

Tenants falling into arrears can affect all landlords and agents however careful and efficient they are. Without the housing benefit issue, problems arise always as a result of loss of employment or a relationship breakdown.

As one of our Canadian landlords recently put it, “Thank you very much for the update. It seems that you have done a great job in acting quickly. We could do with your professionalism and management in this country”.

Russells Move From Regent Street After 25 Years – 24th August 2011

Russells moved from Regent Street to Dukes Court over the bank holiday weekend.

Russells had been occupying 100 Regent Street for a quarter of a century but have now moved to new modern premises at Dukes Court, Newmarket Road close to The Grafton Centre. The main sales and lettings receptions form part of the new offices together with administrative back up for the Cambridge market.

Robert Russell of Russells said that it was a hard decision to make, to move after so long in Regent Street. However Regent Street is undergoing a fundamental change and over the last few years many agents have moved out of the street and the commercial change to the area is very much the same as happened 25 years ago in St Andrews Street. Russells, formerly part of Catlings, a very old Cambridge firm, prior to moving to Regent Street occupied premises in St Andrew’s Street which are now occupied the Cheltenham and Gloucester. At that time estate agents were in the very heart of Cambridge and slowly over a number of years moved out to Regent Street as did many firms of solicitors. Regent Street became the estate agents and solicitors row. The same is happening now with estate agents and solicitors moving out of Regent Street to more suitable locations. It is just a natural progression. Robert Russell said “I worked at St Andrew’s Street myself and we still have a number of members of staff currently with Russells who worked with me there”.

One of the main problems with Regent Street is the lack of nearby easy parking and difficulty in getting to the City centre due to heavy congestion round Gonville Place and Lensfield Road, particularly at rush hour in the mornings and afternoons. Russells new premises will be much easier to visit with easy parking immediately to the front yet in a very prominent main road location and only a few minutes walk from The Grafton Centre. Robert Russell went on to say “parking difficulties and congestion were a major cause of complaint amongst visitors to the offices. In fact a client came to see me only the other day and the first thing that was said, even before good morning was, ‘your new place will be much easier to get to and park at’. The internet has also changed estate agencies beyond all recognition and most people now get details of properties on line; the days of walking around the agents have gone.”

This move follows Russells acquisition and refurbishment of Woolpack House Sawston last year, a former pub which is now the local Sales and Lettings office in Sawston and an administrative centre. Russells also have offices in Ely and Littleport.

It is an exciting move and as part of the relocation Russells marketing and logos etc have been updated.

Russells phone numbers and web addresses remain the same.

Lack of Properties in the Rental Market – 28th July 2011

ARLA warned in the middle of June that the under supply of good quality properties is straining the UK rental market with supply failing to match demand. On one hand this is good for existing landlords as rental values continue to remain strong but eventually, if there remains a lack of investment in the private rented sector, the industry will begin to suffer.

In addition to the lack of investment one concern is the number of long term landlords who are perhaps a little older who are now preferring to release their equity in the property market for retirement purposes and are selling existing rental properties. The loss of these properties from the rental market is putting more strain on an already stretched market. The second quarter of this year’s ARLA survey indicated that 74% of members reported that there are more prospective tenants than properties available. This figures jumps to 82% in central London. Compared with a year ago this figure was 10% nationwide and only 8% in central London.

Our own experience of the rental market in Cambridge is that it remains very strong and buoyant with rental levels having increased over the year generally. Good quality city properties are renting quickly as are properties in the villages close to Cambridge and notably on the southern side.

Robert Russell of Russells commented that they were still taking on new properties and that in Cambridge there was little buy to let activity but the majority of new properties coming onto the market were as a result of people perhaps moving abroad and wishing to retain a base in the UK or where sadly parents etc. had died leaving children property which they are now preferring to rent out rather than sell.

Robert went on to say that there are huge opportunities in the rental market in the Cambridge area and now is a very good time for buy to let investors to re-enter the market. Rentals are strong, demand is strong and property values are now at a level whereby good returns (5% to 6%) are easily obtainable. Russells also have a financial arm who are able to arrange buy to let mortgages which are now more readily available than they were this time last year.

Anybody seeking further advice on the rental market or buy to let should contact Robert Russell on 01223 521152 for further information.

CHANGING TRENDS IN THE RENTAL MARKET – 20th April 2011

Two recent surveys have highlighted completely opposite trends in the rental market. A recent survey by LV has cast a deep shadow over the student rental market. The survey revealed that more than half of students would be studying locally and living at home with their parents by 2020. In some towns the student population is forecast to decline by 40% over the same period.

This change is put down to the proposed significant hike in tuition fees. If students are going to leave college with huge amounts of debt they will want to try and reduce their living expenses whilst at University. Parental pressure will also have a bearing on this as many parents have traditionally funded children at University and as a result want them to continue to live at home to keep the overall costs down.

Cambridge is however probably better insulated against this decline than some other areas. Certainly the old University and Colleges will always remain popular but even there many are providing more accommodation to students than they ever have done in the past. This however may not be all bad news as, if there is a glut of student rented accommodation in the future, rents will fall which can only be beneficial to students.

A slightly more up beat survey was released by LSL, the parent company of many large letting agent companies in the UK. According to their survey first time buyers now expect to rent for a decade before they even consider buying. They have also reported increases in rent in some parts of the country, most notably London where rents have increased by 3% over the last 12 months. Rents have however also fallen in some parts of the UK particularly the south west and the midlands. In Cambridge the rental market remains positive and strong although rental levels still need to be realistic. There is no doubt that they have increased over the last 12 months but landlords who add £100 to the monthly rental when a tenancy comes up for renewal will struggle. There has been a noticeable increase in the number of tenants moving down market in order to make ends meet. Even a £50 increase in rental over a 12 month period equates to about £1000 in gross salary at a time when many people are not getting any pay rises at all. A prudent landlord therefore keeps rental levels sensible and realistic whilst making the most of the market. Asking too high a rental is one of the most negative things a landlord can do. Russells recently had a property which was marketed by another agent for about £300 per calendar month more than it was really worth. It had sat empty for nearly four months and as a result the landlord lost about £5000 in rental. A landlord is always better to have a good quality tenant paying a sensible rent and to have a property occupied all the time.

Russells are always pleased to advise on any aspect of the rental market and can be contacted on 01223 521152.

MADNESS OF THE HUMAN RIGHTS ACT – 20th April 2011

The Supreme Court has just ruled that a council tenant whose rent arrears were £3500 should not be evicted from her council house as this would have been a breach of her human rights under the European Convention on Human Rights.

This is a mind boggling decision and all agents and landlords must be fearful and worried as to how long it will be before private rented tenants decide to stop paying their rent and hide behind the Human Rights Act as well.

RENTS MIGHT BE CREEPING UP BUT TENANTS STRUGGLE – 20th April 2011

A recent report issued advises that rents in February in England and Wales on average rose by 0.2%. This equates to an annual rise of about 4% across the board over the last 12 months. However the most worrying trend is that apparently nationwide 12.6% of all UK rents remain unpaid or late at the end of the month, an increase from 11%.

These figures are staggeringly high indicating that 1 in 10 tenants are now behind with their rent. Whilst rents may be rising, some tenants are clearly finding affordability difficult. The reality in Cambridge is of course very different. Rents are very seasonal and a landlord will always achieve a much higher rent in the summer than they will in the middle of the winter. Blanket figures are therefore not necessarily representative. Russells however, as have all agents, noted an increase in rentals over the last 12 months but the rental increase is very dependent on the type of property and its location. Rentals in central Cambridge have certainly risen by more than 4% but in some of the quieter outlying villages rentals have remained very static and have not increased at all.

Headline figures are very tempting to landlords and may encourage them to push rents up. There is of course a danger in pushing rentals up too high as you may encourage an existing good tenant to leave and seek something cheaper or alternatively, if the property is empty, it could lead to a long void period which has a serious overall affect on the annual income from an investment. The most important thing is to listen to a reputable agent and take their advice on rental values. It is very easy for an unreputable agent to tell landlords what they think they want to hear rather than what they should be hearing.

The most worrying and staggering figure is the level of rent arrears. In Cambridge our experience is nothing like this. Our rent arrears are less than 0.1%. Rent arrears are however always going to exist. Our experience however is that tenants do not wantonly not pay the rent and if they fall into arrears it is because they have a genuine problem. Almost without exception this is due either to a loss of job or a relationship breakdown. However good the agent is these are two areas that they have no control over.

Headline figures such as this should not put investors off coming into the market but equally they should choose their agent very carefully and make sure that the tenants are of the highest quality. Russells are always happy to provide advice on the rental market to potential landlords and can be contacted on 01223 521152. The directors Robert Russell and Tanya Pearson are always pleased to help.

NOW IS THE TIME TO BUY TO LET – 7th September 2010

Canny investors are now moving back into the buy to let market. The rental market is always extremely busy in the summer but this year Russells experienced an even busier period and there is a stronger demand than usual. Good quality properties are letting almost immediately with rentals having risen noticeably over the last 12 months. With the sales market being very flat and with some vendors very keen to sell, now is a very good time for investors to pick up quality properties which make good rental investments for sensible money. The return a landlord can expect has improved dramatically over the last 12 months with gross returns of 6% now obtainable as an average. This is an increase of 1.5% to 2% over the last 12-18 months.

A buy to let investment is a very different investment to a property you intend to move into. It needs to be viewed clinically and it is important to take advice prior to committing yourself. On a number of occasions we have looked at properties proudly purchased as buy to let investments and privately wondered why on earth a landlord chosen that property. We are always very happy to look at a property and advise on its suitability and work which would be required to get the best from it prior to a potential landlord committing themselves.

Tenants look for very different things to purchasers. The quality of decorations, carpets and particularly kitchens and bathrooms is critical. This does not however mean that you need to buy a property that is in perfect tip top order but it might be necessary to spend some money on it prior to the first let. If a property does need modernising or updating, again it is very important not to become personal about it. Reputable and good letting agents know what lets and you should therefore listen to what they have to say. Whilst you might like to have solid oak work surfaces in your own property, they are not ideal for rented accommodation as they require regular maintenance and are more easily damaged particularly by water if it is not wiped up quickly. Whilst you might have an aversion to plain walls, this is in fact what tenants want. Everybody’s tastes vary and an individual’s personal taste might not suit the market. This is why a blank canvas approach is so much better. Likewise gardens are important if you are thinking of investing in a buy to let. Whilst a landlord might be a keen gardener themselves generally speaking tenants are not and whilst tenants will cut grass, keep gardens free of weeds and clear up leaves etc. at the end of the season, it is very rare to find tenants planting anything in a garden or growing vegetables. It is therefore important to purchase a property with a small easily managed garden. Alternatively of course a gardener can be employed to maintain gardens.

Location is also very important but it is not only Cambridge that has a strong rental market. As much as 40% of potential tenants do not want to live in the City and prefer the nearby villages. This is good news for investors as prices are often lower in the villages and rents almost up to the City. So don’t think it must be in Cambridge, spread the net the net to include nearby village but avoid those a little further away. The rental markets are also very strong in Ely and Littleport where prices are lower still and the rental returns about the same. Both are on the Cambridge main railway line and offer good local facilities. This give tenants choice , a one bed flat in Cambridge or a three bedroom house in Ely. Many opt for the latter.

The right property will let very quickly for a strong rental and yield far more than the average savings account, so now is the time to come back into the market.

Russells are experienced Chartered Surveyors, Estate and Letting Agents and are able to offer expert advice to potential new or existing landlords. They can be contacted on 01223 521152 or 01223 837473 for Cambridge are advice or 01353 668294 for Ely and Littleport.

THE CHANGING FACE OF THE RENTAL MARKET – 7th September 2010

The rental market is traditionally extremely busy during the summer months and this year has been no different. The market has however undergone some significant changes over the last 6-18 months, notably the very noticeable fall of in activity from buy to let investors.

A lack of activity from buy to let investors has been caused by the general recession and lack of capital appreciation in the sales market together with difficulty in mortgaging.

At the end of the boom it was very easy to obtain buy to let mortgages for 90% or even 95% of the value of the property. A vast majority of buy to let lenders have pulled out of the market altogether and those that have remained within the market now demand a 20% or 25% deposit. This has put it out of the reach of many buy to let investors. In the past, in order to raise deposits, many investors remortgaged their existing properties but with the fall in capital values and general decline in the sales market many are reluctant to do this. As a result the number of instructions to letting agents has without exception fallen off this year.

However new properties are always coming onto the market with people moving abroad or changing jobs for various reasons with many people who have been left properties also choosing to rent them out rather then sell them.

Tenants are becoming even more discerning then ever before. The presentation of properties to rent is now absolutely critical in finding good quality tenants at the best possible rents. Tenants will pay a premium for well decorated well presented properties, particularly those with new or nearly new bathrooms and kitchens and good carpeting. We are finding that good quality properties in the right location are letting to the first or second viewing. Sometimes with more tired properties where the landlord is reluctant to spend any money (despite the agent’s suggestions!) it can take as many as 20 viewings for the property to go.

The second reason for the lack of activity in the buy to let market is lack of capital appreciation. Whilst some investors have in the past purchased on repayment mortgages, the majority did not and chose to purchase simply with interest only mortgages which were largely covered by the rental. Repayment mortgages generally required some subsidy from the landlord. This was all very well when the market was racing away and capital appreciation was running at a rate of 15% per annum but in a market where prices in reality are static there is little point in purchasing a property just for it to stand still. There are however greater opportunities for landlords who are cash rich and able to put down very large deposits on quality properties achieving high rentals.

If you are thinking of buying a property to let or indeed have been left a property which you think you might let out, get advice from a reputable RICS (Royal Institution of Chartered Surveyors) agent and listen to the advice that they give you. Agents are not telling you to spend money simply because they wish to spend your money on your behalf, they are telling you to spend money because they know what is required in order to both let a property quickly and get a quick income stream and also to maximise rental values.

Russells are the leading rental agents in Cambridge and are always pleased to offer advice to potential landlords. They can be contacted on 01223 521152 or 01223 837473.

Accurate Pricing is the Key – 11th August 2010

As everybody knows the sales market has had its ups and downs over the last few years. Up until May 2008 it was up, up, up and had been for many years. Since that time we have seen a rapid decline in market values with some recovery throughout the whole of the market and an almost complete recovery to the levels of May 2008 of good quality properties in the best areas.

There are two stories to tell of the sales market. At the top end of the market there is no shortage of buyers looking for the very best properties, many of whom seem to be cash rich and able to purchase without the need for a mortgage or with very small mortgages. These purchasers have not been affected by the recession or the downturn in the sales market and are as active as ever. Their problem is finding good quality property to buy.

This however is not true of the vast majority of purchasers. With mortgages still more difficult to come by than they were in the past and with lenders being less flexible, first time buyers are finding it more difficult to enter the market. Many seem to be getting parental help in order to provide them with the larger deposits required to get the best mortgage rate. They are however extremely canny. They know that the ball is in their court and are extremely price conscious. Over the period of time that a purchaser is looking to buy a property they become expert in property values probably knowing as much about the market for that short period of time as the average estate agent. They know when a property is over priced and simply ignore it.

We had a long period of boom and a steadily rising market from the early to mid 1990s. Many agents now working within the industry have never had to work in a hard or difficult market. The days of simply putting the property on the market at the highest figure that you think you can get away with have long gone. This is why it is so important to choose your agent and choose one who has experience of working in difficult market conditions. Listen to what they say about pricing. Of course they want to sell the property as much as you do and they want to sell it as quickly as possible but, most importantly, for the best possible price. Vendors are the agent's client and it their duty and job to get the best price they can for them. A property can sit on the market for month after month after month at £172,000 but a small reduction to just under £170,000 may make all the difference. We know, we are at the sharp end and know the market inside out.

CHANGES AT RUSSELLS – 17th May 2010

Russells are very pleased to announce that they have appointed three new directors to work alongside Robert and Teresa Russell in the Lettings Department. The new appointments strengthen the management structure within Russells with Robert Mills becoming responsible for day to day office administration in addition to his existing responsibilities within the Lettings Department. Maria Morgan, who is already responsible for the Lettings Department in the Fenland area of Ely and Littleport, also becomes a director with Tanya Pearson who will be responsible for the Lettings Department at Cambridge.

Both Robert and Teresa Russell will still be very much involved in the business on a day to day basis and look forward to maintaining relationships built up with clients over very many years. The new appointments are simply to spread the workload a little.

The new directors have all been with Russells a number of years with Robert Mills having come from an insurance background and with Maria and Tanya having worked their way up through the ranks originally starting many years ago in the firing line of lettings reception.

Russells remain one of the leading firms in Cambridgeshire with four offices with a market leading Lettings Department, Sales Department which continues to be run by Jonathan Myles and Glenn Coombe and Russells Financial run by Philip Duff.

For any property matter relating to the residential sale or letting of property or for free independent mortgage advice call Russells on 01223 521152.

Pictured Robert and Teresa Russell with the new directors Robert Mills, Maria Morgan and Tanya Pearson.

NEW LOGOS FOR RUSSELLS! – 17th May 2010

The red Russells logo with the handshakes is a familiar sight in the Cambridge area and Fenland areas of Ely and Littleport.

This logo is now joined by a separate blue logo with the original red now relating to the Lettings Department and the new blue relating to our busy and active Sales Department.

Robert Russell said “The new blue logo gives us an enhanced presence in the Cambridge and Ely sales market with a strong new logo..

In addition to the new logo Russells website has been updated and enhanced to reflect the changes. For any information relating to either sales or lettings contact Russells at any of their four offices or directly to the Head Office in Cambridge on 01223 525252 for sales and 01223 521152 for lettings.

FORMER WOOLPACK PUBLIC HOUSE, SAWSTON – 17th May 2010

The Woolpack public house at Sawston was closed down in a blaze of publicity after a massive police raid on 23rd May 2008. A once thriving village public house had declined to become a real eye sore in the High Street and a nuisance to the village. Charges for drug dealing followed the raid which closed it down.

Having stood empty for nearly two years, the building now has a new lease of life as a local Sales Office and Lettings office for Russells Estate and Letting Agents. It opens on 24th May almost exactly two years to the day since it closed.

Robert and Teresa Russell Directors of Russells are absolutely delighted that the building has been rescued and now forms a major focal point in the village of Sawston.

“When we first viewed the building in the summer of 2009 we were shocked as to how dilapidated and derelict it had become. It had clearly been abused and had had no money spent on it for years and years. We had been looking for premises to relocate back room staff such as the accounts office out of Cambridge. Cambridge is becoming extremely difficult for staff who do not need to be in the centre of Cambridge with high parking costs and long journey times to work. We thought Sawston would be the ideal location with excellent road links both east and west and an easy drive into Cambridge City. We have therefore relocated staff who do not need to be in the central office to the village.

As we said, our journey with the Woolpack started in the summer of 2009. We knew it was old but following our discussions with the Listed Buildings Officer and Planners and our general research delved deeper, it is apparent that the building has a very deep history in Sawston. It is believed that the centre part was originally a trading hall (possibly for wool giving the pub its name) but also probably for leather as Sawston has always been associated with leatherworks. It is believed to date back about 450 years. There is currently a cottage to the right hand side of the building which is to be refurbished and we believe that there was originally a cottage to the left hand side as well which at some time was incorporated into the pub. As the building work unfolded it became increasingly apparent how historic the building is.”

Russells have made a commitment to the village and will be bringing about 16 administrative staff to the new centre. In addition to this we will of course be having many visitors and we hope that our presence will be a boost for trade in the village. Wherever possible we have tried to use village trades in whatever we have done with the refurbishment being carried out by local Sawston firm H R Millen. Robert Russell described their work as “absolutely fantastic with it being particularly unusual in this day and age to have the builder who does what he says he is going to do actually finishes on time!”

Russells will be having an open morning for anybody interested in seeing the refurbished building on Saturday 29th May between 9.00 a.m. and 1.00 p.m. Whether you are interested in selling or letting or not you are very welcome to come and have a look around and see what we have done. Robert Russell did add that Russells offices at 100 Regent Street, Cambridge very much remain open with large Sales and Lettings receptions continuing to operate as they have done in that building as they have done for the last 20 plus years.

MAJOR CHANGES FOR LANDLORDS – 8th April 2010

Major changes will affect some landlords will affect some landlords on 1st October 2010. Currently Assured Shorthold tenancies are those with annual rental up to £25,000. Anything above that is a contractual tenancy where there is no requirement to protect the deposit and the procedure for bringing the tenancy to an end is different.
The government have announced that as from 1st October tenancies worth between £25,000 and £100,000 per year will become Assured Shorthold tenancies overnight. This is a retrospective change.

Landlords and agents who currently hold deposits on such tenancies but have not been required to register them with one of the deposit protection schemes will have until 1st October to register them.

This has been on the cards for some time although it is a surprise that it is retrospective rather than simply new tenancies where the rents are above £25,000 and less than £100,000 per year. Technically under the Housing Act deposits should be protected within 14 days of receipt. Clearly this is not practical in these circumstances.

Locally not that many tenancies will be affected and perhaps some student lets or large family homes but most properties, particularly those in central London, fall into this category and there will of course as a result be a significant affect.

Government plans have caused further unrest with the proposal that properties let to three or more sharers who are not related will require planning permission. This forms part of the changes for houses in multiple occupation. It would appear that existing shared properties currently let will not require consents but, once the existing tenants have moved out, landlords would be required to obtain planning consent prior to reletting it to sharers. Cambridge City Council is however seeking legal clarification on this point. Essentially a property let to a group without planning consent will be an illegal let!

Finally to complete the misery, Household Management Strategy published by the Department of Energy and Climate Change is proposing to make it illegal from 2015 for rented properties that do not have loft and cavity insulation to be marketed. Whilst all let properties currently must have an Energy Performance Certificate, it would become a requirement that they be shown on all lettings adverts.

Russells lettings is a specialist in residential lettings and market leader in Cambridge

TENANTS DEPOSITS - HOW SAFE ARE THEY? – 12th January 2010

Landlords nationwide will be aware of the requirements introduced in April 2007 whereby individuals were no longer able to hold tenants’ deposits and it was a requirement that they be logged with one of the various schemes. One of these schemes is custodial which means that the money is actually sent off to the scheme and therefore is entirely safe. Other schemes are however non custodial and the agents in those cases continue to hold the tenants’ deposits but must register that they are holding them with one of the schemes.
>br> Many will think that this is the end of the matter and that their money is safe. There is however no guarantee. Questions sometimes need to be asked as to how safe tenants’ deposits (held against dilapidations etc.) are. Deposits should be held in a separate Client Account which is entirely separate from the agent’s own office money. However what guarantees have tenants got that this is the case and the agent is not using this money to prop up the business? Equally landlords need to be aware that the rent that the agent is collecting on their behalf each month is also being paid into a Client Account and not the agent’s own office account and again how safe is it?

Both landlords and tenants need to think carefully about this. Size is not necessarily an indication. Some firms which appear to be large nationwide firms are in fact franchises run by individual operators. One nationwide franchise has recently admitted that four offices within their network have had problems with missing client money. Another apparently nationwide firm but also a franchise has also admitted problems.

Many agents are entirely unregulated and do not belong to any professional bodies at all. It is not unusual to see stories in the press of letting agents collapsing with landlord and tenants’ money disappearing.

Agents who are members of ARLA will be required to have professional indemnity insurance and will also be required to have an annual audit carried out by an external firm of Chartered Accountants to make sure that there are no problems with the Client Account. This in itself is however not necessarily foolproof as it is possible to have friendly accountants!

The strictest regulation of letting agents is of those who are members of the Royal Institution of Chartered Surveyors (RICS) who now carry out inspections on their members’ offices and client accounts by specially trained audit accountants directly employed by the RICS. The RICS have taken on this hands on approach to give the public more confidence in their members and also to eradicate any possibility of “friendly” accountants’ reports. The RICS rules and requirements are also the strictest in the industry.

We recommend that all landlords and tenants think very carefully about who they are handing money over to. The introduction of the Tenancy Deposit Scheme may have gone some way to protecting tenants against bad landlords but does nothing to protect tenants against bad agents.

Russells are members of the RICS. If any landlord or agent would like any further information please call our offices on 01223 521152.

Does your agent perform? – 2nd July 2009

“Thank you for your fab service.” Landlord last week

“I’m very pleased you have found a new tenant so quickly” Landlord last week

“Thanks to everyone for their support and help at Russells” Tenant last week

“I am grateful that your professionalism and high standards are available to us” Overseas landlord last week

“You are the only agent to respond to my email. Thank you.” Tenant(s) last week

“You are the only people who email me with regular updates” Tenant last week

We pride ourselves on providing an excellent service to both landlords and tenants.

We urgently need more quality City homes to meet the demand.

If you are thinking of letting or your agent isn’t performing call us on 01223 52 11 52

Tenant Safety – 1st April 2009

A number of recent cases have highlighted how essential it is that both landlords, and agents if they are fully managing properties, take on board fully their responsibility in relation to tenant safety.

Many landlords and agents feel that they have been bombarded with various regulations over the last few years and regrettably some landlords feel that these can be ignored or try to find ways to circumnavigate them. As agents it is unfortunately not unusual to regrettably hear landlords try to excuse themselves from taking proper precautions. A landlord in London was recently fined £4000 and ordered to pay £1500 costs for breaches of the Gas Safety (Installation and Use) Regulations 1998. In this case two individuals were subject to carbon monoxide poisoning (and thankfully did not die) but the landlord nevertheless was severely reprimanded for not having the proper safety checks carried out. In a second case the owner of an agency was fined £21,000 and sent to prison for four months for serious breaches of the Regulatory Reform Order relating to fire safety. The Regulatory Reform Order (Fire Safety 2005) came into force on 1st October 2006 and replaced over 70 pieces of fire safety legislation. It gives responsibility to those who are best placed to address fire safety and ensure that risks which change over time are kept under review. The prosecution came after a fatal fire in 2007.

Another Property Manager has also been ordered to pay nearly £13,000 in fines and costs being found guilty of breaches of fire safety regulations. In this case it related to converted flats where there were no smoke detectors, fire extinguishers or fire resistant doors.

In the majority of single occupancy properties where there are families the fire regulations are not extensive and largely common sense. Where houses are in multiple occupation there is in any case a responsibility if they fall under the requirements for licensing to declare them to the local authority in order that they can carry out an inspection and license the properties but, if they are not licensed, to ensure that proper precautions are taken.

One area which is a particular bone of contention amongst landlords are the electrical regulations. These are somewhat confusing and there is not one simple piece of electrical regulation which simply states that electrical installations must be tested and safe. There are a lot of grey areas unlike the gas safety regulations. Many people seem to regard electrical safety as a low priority and only give consideration to electric shock or failure of the electrical installation. A high percentage of fires are however caused by electrical failure and it is therefore very important that installations are safe and up to date. Reputable agents and landlords will insist that electrical installations are tested and checked on a regular basis but unfortunately some agents and landlords think they can save some money, either on their own part or the part of the landlord, by ignoring them. In an ever litigious world and a world where responsibility is becoming more important safety should not be taken lightly.

Tenants Losing Homes as Landlords Default – 1st April 2009

There is nationwide a substantial increase in the number of tenants losing their homes because the landlords have defaulted on their mortgages. This is not a problem which has affected Russells portfolio of good quality properties and responsible landlords but something which tenants need to be aware of.

Many tenants are probably not aware that previously a mortgage lender in possession only needed to give tenants two weeks notice to move out of the property if they had repossessed. Tenants could therefore be faced with the real prospect of having to move out at very short notice even if they were up to date with their rent.

From this week new legislation means that lenders must give tenants at least seven weeks notice of repossession proceedings and letters should be addressed to the tenants by name rather than simply addressing them to the occupier. Many tenants will be getting numerous letters addressed to the occupier and many are probably never opened or taken seriously as they could simply be mailings. There is however one further issue which is perhaps the result of a depressed sales market. The new seven week rule applies to buy to let mortgages where the lenders know that the property is being let and normal mortgages where the lender has been advised that the property is being let. It will however not apply if the owner of a property has simply been unable to sell it and thought that they would let it in the short term without telling the mortgage lender. In these cases the two week rule applies.

The difficulty from a landlord’s point of view is not the interest rates which are of course historically low. The problem is void periods which result from a reduced stock of tenants due to the economic climate and an increased stock of properties due to vendors not being able to sell and therefore renting. This has manifested itself with new letting agents sprouting up very often on the back of failing sales departments in local estate agencies. According to the National Landlords Association, in addition to longer void periods, 37% of landlords expect some form of rent arrears. This seems to be a very high figure and not one reflected in the local Cambridge market although it is of course naïve of landlords never to expect problems. Russells are extremely proud of their record with traditionally rent arrears or difficulties being a minute percentage of the managed portfolio (we have never been able to believe any agent who claims to have no current or historical rent arrears!).

For further information about any aspect of letting call Russells on 01223 521152.

Dangers of Accepting Housing Benefit – 1st April 2009

Last April the government decided to stop paying housing benefit direct to landlords and pay tenants instead via what is know as the Local Housing Allowance and to trust the tenants to pass the rent on to landlords. A recent report by the Landlords Association show that the results have been little short of disastrous. 52% of UK landlords say they are now far less likely to let to people on benefits. Of those already letting to benefit recipients 43% said that they would be less likely to do it again once the existing tenancies are over. One landlord who owns seven properties in London and the Midlands and lets to housing benefit recipients said that five of them pay regularly but two have not paid for two months.

Inevitably this will lead to a crisis in housing for benefit claimants. Russells have always had a policy of not letting directly to housing benefit claimants although of course some tenants through no fault of their own due to job losses etc. do end up on benefit.

The government’s idea behind paying benefit directly to claimants was so that they could take more personal responsibility for their housing. One company which specialises in handling rogue tenants claimed that they are dealing with a 25% increase in evictions as a result of Local Housing Allowance default. Apparently it is not uncommon for housing benefit tenants to move in, pay the rent for the first couple of months and then stop paying. It is allegedly used for drink, drugs with housing benefit also being spent on holidays and TVs! Yet another government policy which has created more problems?

The Changing Face of the Rental Market – 1st April 2009

The rental market so far during the recession has remained strong but is inevitably feeling the affect of the economic downturn. It would perhaps be naïve to think that the market can completely escape the recession.

Generally the level of viewings and applications remains high but there have been some very noticeable changes. Demand for smaller one and two bedroom properties has increased as tenants either downsize from larger properties in order to save money or decide in the first instance to rent smaller properties when perhaps in the past they would have gone for something larger. One London firm has reported that approximately 40% of all tenants who have reached the end of their existing contracts in expensive areas of London are moving and opting for less expensive and smaller properties. Sensible landlords who realise that they may be subject to a longer than usual empty period in many cases are negotiating rent reduction, sometimes as much as 20%. This is a trend that we have noticed in Cambridge and certainly there is less interest in more expensive property which perhaps last year would have let almost immediately.

There is also a change in tenant profiles. Whilst the economy in Cambridge has perhaps not suffered as badly as some other parts of the country, redundancies are being made and recruitment levels are lower. There has therefore been a drop off in the number of tenants moving for job reasons. There has also been a decline in the number of applicants from overseas and many of the eastern Europeans who poured into the country over the last two years are now deciding to return home. This will inevitably lead to a reduced number of tenants looking overall.

Landlords should however not be discouraged. Russells have worked extremely hard this year to let property and have come up with a number of initiatives to encourage tenants to apply. We have also (as any good agent should) kept in constant contact with our landlords and where necessary have suggested a rent reduction as there is no point advertising a property at £800 per calendar month and have it sitting empty. Properties must be competitive with the general market and a landlord is of course sensible to accept a slightly lower rental and have a tenant rather than have a property empty producing nothing at all. For further information and advice on any aspect of letting contact Russells on 01223 521152.

Tenants Becoming More Choosy – 14th January 2009

Some years ago the lettings industry was regarded as the poor relation in the property professions. Firms were only interested in selling houses and lettings departments became something of an irritation. The general population always wanted to buy and rented accommodation was traditionally for students or people who could not afford to buy. How times have changed. Many people choose to rent as a lifestyle decision, not only because it provides them with greater mobility and flexibility but many are now choosing to rent rather than entering an increasingly uncertain owner occupier market. As such landlords and agents need to look after their customer base.

In the past many landlords regarded tenants as almost less worthy individuals with very few rights. Whilst the landlord may be our client, Russells have always regarded tenants as their customers and without customers and good customer service landlords are not going to let their properties in increasingly competitive markets. Clearly it is the landlord’s responsibility to maintain a property and present it well although it is the agent’s responsibility to advise the landlord accordingly. Landlords choose their agents because of the service that they can offer them and because they have the confidence that the agent will look after their property and therefore their valuable asset well.

Equally tenants are also now increasingly choosing their agent. As part of this choice they are giving consideration to many matters. How long has the agent been letting property and been in business? Are they a “here today gone tomorrow” set up? Does the agent have experienced staff with the expertise and knowledge, which can only be learnt over many years, to look after properties property? Are the agents transparent and clear in the way that they deal with all matters and fully explain all tenant fees and charges to them before they have even signed an application form? With rents have increased over the years and the average agent taking a deposit of 1½ x the rental tenants also give great consideration to how their deposit will be looked after and how the agent will deal with it. For two years now landlords have been unable to hold their own deposits and agents have joined a variety of schemes. There are however clearly problems with this. The Tenancy Deposit Scheme has just announced that on the insistence of their insurers they can only now provide deposit protection, an alternative dispute resolution, to letting agents who are members of recognised professional bodies. Therefore agents who are not members of recognised professional bodies will no longer be able to offer the services of the Tenancy Deposit Scheme. Only members of the RICS, ARLA and the NAEA will be covered. With many tenants having had very bad experiences in the past in relation to their deposits this is an important consideration.

Tenants also give consideration to how offices are manned and organised. Are there enough staff to deal with the lettings portfolio that the agent manages? When they ring up will they be able to speak to somebody or will they be told that the “person” that deals with lettings is out of the office and will be back tomorrow? Does the agent provide a 24 hour emergency call out service? In increasingly competitive times landlords need to be very careful about their choice of agent because tenants are also choosing agents for different but equally valid reasons. Lettings is not something which can be learned overnight or by reading a book at the weekend. It is something which is learned through years of experience and dedication.

Russells with roots back to 1871 and offices in Cambridge, Sawston, Ely and Littleport are pleased to offer advice to Landlords and tenants alike.

CHOOSING THE RIGHT AGENT – 31st July 2008

Everybody knows that the sales market is currently going through a difficult period. This of course makes life difficult not only for vendors and purchasers for also on agents who rely on selling houses for their livelihood. The lettings market however remains extremely strong. As a result there seems to be a relentless growth in the number of new agents starting up or firms who have previously relied on house sales all of a sudden entering the lettings market. It could be argued that currently letting houses is easy. It is important however for home owners to understand the real difference between selling and letting. If you are selling a house you want an agent who is going to get the best price for you at a competitive fee and do an honest straightforward job. Once the property is sold that is it, it is a done deal.

Letting is very different. Letting is an ongoing transaction which may last several years and it is not just a question of putting a tenant in a property and collecting the money. Lettings is a very complicated business with very many pitfalls and it is after the tenant has moved in that the expertise of a good letting and management agent really comes to the fore. It is something which can only be learned with experience. On many occasions we have taken over properties from inexperienced agents and are horrified with the standard of service which they have been providing their landlords. Tenancy agreements which are not strictly legal because they have not been dated or signed correctly, blank faces when electrical checks are mentioned and deposits incorrectly held etc. etc. This is quite horrific.

The question landlords need to ask themselves is whether they would trust their health, family, car or anything else important to them to someone who has “just started out”.

Landlords should think very carefully before appointing agents as there is now a huge choice in the City. Landlords should be asking how long the agent has been letting properties. (There are some very good firms in Cambridge who have been in business for 25 for many years including ourselves.) Also ask what professional organisations do they belong to? ARLA, RICS? How experienced are their staff? Are they able to offer a 24 hour emergency call out service? Are they authorised by the FSA to deal with the landlord’s insurance? Do they have any cover when the “lettings person” goes on holiday or is ill? Do they know what to do when something goes wrong?

Letting property and property management is a skill learned over many years. Expertise comes with practice and practice comes with experience.

HOUSING HEALTH & SAFETY RATINGS SYSTEM (HHSRS) – 6th March 2006

This legislation comes into force on 6th April 2006 and is part of the 2004 Housing Act. The legislation replaces the old fitness standard which dates back to 1919.

Local authorities will have a duty to keep housing conditions in their area under review. If either as a result of that review or as a result of a complaint from a tenant or neighbour, they can inspect a property if they think that there is a health or safety hazard existing within that property. They will carry out an inspection under the legislation and will assess any hazards within a property as either a category 1 or a category 2 hazard. There are 29 hazards summarised within the legislation which apply to things such as dampness, excessive heat, cold, pollutant, lack of space, inadequate lighting, excessive noise, poor hygiene, bas sanitation, poor water supply, likelihood of accidents, electric shocks etc. Any inspection carried out by the local authority will take into account these 29 hazards but will also take into consideration the most vulnerable age groups for these hazards and the occupancy of the property. For instance category 19 which is Falls Associated with Baths etc. only applies to the most vulnerable group which is the over 60’s. This will not apply to the vast majority of rented accommodation let on the open market as the majority of tenants are younger than this.

If the Council identify any category 1 hazards they will need to be addressed and dealt with immediately. Until such time as the legislation comes into force and we can all see how the system works it is difficult to give definitive advice although it is likely that the local authority will in the first instance make an informal approach to a landlord (or their agent) but if the approach is ignored they will have the power to serve an Improvement Notice. In cases, if there is an imminent risk of serious harm to the occupants, the Council can serve an emergency notice to remove the hazard. The Council can, with or without agreement of the owner, carry out works required within a notice and charge accordingly. It is however assumed that this procedure will only be used in emergency situations or where all other negotiation has failed.

An owner or agent where an Improvement Notice or Prohibition Order has been served can appeal normally within 21 days. This appeal will be held by the Residential Property Tribunal. These work in a similar way to risk assessment panels.

The landlord’s responsibility would be to ensure that they maintain their properties in a safe and healthy state. Owners will be obliged to comply with the terms of the Improvement Notices if they are served. Agents will be responsible for ensuring that any works are carried out and adequate funds are available to do this.

Gas Inspections and Certificates –

All landlords will know that it is a legal requirement to provide tenants with a Landlord Gas Safety Certificate (if there is gas at the property) on an annual basis. At a recent case in the Winchester Crown Court a landlord was fined a total of £42,000 for breaches of the Gas Safety Regulations which resulted in the death of a young girl. As a result of this decision the Principal Inspector of the Health & Safety Executive issued a statement to the effect that not only must gas appliances have an annual check but they must also be maintained in a safe condition. This means that, as well as the annual inspection (which is like an MOT on a car) an annual service of the boiler by a Corgi registered engineer in accordance with the manufacturer’s instructions (like a service on a car) is also required.

For many years our own Corgi engineers have not only carried out an annual inspection but also a boiler service.

If you arrange for your own gas inspections can you please ensure that you instruct your Corgi engineer to carry out a service as well as an inspection.

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