HMO Strategy - April
Welcome to the first ever issue of the HMO Strategy newsletter. Staying informed about the latest news and developments within the HMO sector is a strategic necessity. Our industry-specific updates on market trends, regulatory changes, shifts in tenant preferences, featured debates, and notable upcoming events will help HMO landlords, agents, and property managers to navigate the complex and evolving landscape with confidence.
We really hope you find value in the newsletter, and take the time to read this when you've got a gap in your busy schedule. We'd love to hear your comments on how we can improve it, too.
Market Trends: April 2024 - By Andy Graham, The HMO Roadmap
Spring Budget
While there weren’t many policies within the Budget Speech directly involving the UK property market, there were some measures included that could impact the HMO sector and economy as a whole. Many professionals in the property industry felt it was once again a missed opportunity for the sector. But some of the announcements that could impact property investors are a capital gains tax cut, the scrapping of stamp duty on multiple dwellings, and the abolition of tax breaks for holiday lets. From April, the capital gains tax rate will be cut from 28% to 24%. This means when investors sell their assets, they’ll keep more of the property’s profit. The end of multiple dwellings stamp duty relief was also announced. Additionally, the tax relief available for furnished holiday lets will be removed from April 2025 in an attempt to boost the number of properties being let on a long-term basis.
Economic Picture
For some time now, inflation and rising costs have been an area of concern for everyone as it has significantly impacted people’s finances. And there have been some changes in inflation in recent months.?
UK inflation has fallen to 3.4%, which is the lowest level for nearly two and a half years. The economy has shown positive signs in recent months, which may be giving more people confidence moving forward.?
The Bank of England has also held the base interest rate at 5.25% for five consecutive rate setting meetings. Mortgage rates are coming down, but if you’re coming up for a refinance, particularly if you’re coming off a five-year deal from a low interest rate, this will likely be a big jump and something you need to be prepared for! Current Market Recent research from the Royal Institution of Chartered Surveyors (RICS) shows tenant demand is continuing to rise but perhaps at a more modest pace than previously. RICS members are also forecasting rents to move higher across the coming months. The average cost of rent in the UK increased by 9% in the year to February, according to the ONS. This is another new high when based on comparable records collected since 2015.
3 Tips to Navigate the Current Climate
With uncertainties still ahead, here are a few tips to help you manage the current state of the economic and political climate and the uncertainties that remain!?
1. Stay on top of any updates and changes.?
It can be hard to predict what’s to come, particularly with the economy and inflation. So, with so much changing, it’s key to stay on top of anything happening in the economy, across the private rented sector, and within the HMO market.?
2. Be ready to pivot and prepare for bumps.?
Don’t assume that things will necessarily get easier, because they likely won’t! Be prepared to face challenges, put contingencies in place, and make sure you’re ready to pivot and make any necessary changes along the way.?
3. Find experienced professionals to help you navigate the ongoing challenges.?
When it comes to economic challenges, it will be particularly key to have experienced professionals on your team moving forward. So, ask for help if you need it or hire an expert like us to help you.
Content and analysis provided by Andy Graham . For more unparalleled advice and insights, join The HMO Roadmap .
COHO acquires Go Tenant
The surprise merger announcement between COHO and Go Tenant sent shockwaves and congratulations through the property sector, igniting a flurry of activity. With the potential to reshape property management and services quicker together, the merger has accelerated momentum within the industry. Since the strategic acquisition by COHO was revealed, the ripple effect has been palpable, with landlords and property managers swiftly transitioning to COHO's modern operating system.
Vann Vogstad, Founder of COHO: "This acquisition is a pivotal moment for COHO and the property management industry as a whole. By integrating Go Tenant's expertise and innovative solutions with our platform, we are poised to deliver unparalleled value to property investors and agencies. Our shared vision for transforming the property landscape is now on a faster track to realisation, promising exciting advancements for our users."
Rick Gannon, Co-Founder of Go Tenant: "Joining forces with COHO represents a thrilling new chapter for property entrepreneurs. Our journey has always been about empowering landlords with the tools they need to succeed, and this merger amplifies our ability to do so. I am confident that together, we will accelerate the pace of innovation and continue to lead the industry forward."
An amusing video of the announcement by Vann and Rick, formerly known for their light-hearted competitive banter, can be seen below.
The HMO Awards
31st May 2024
The HMO Awards is the most talked about property event and will be held on Friday 31st May at the beautiful Stowe House in Buckinghamshire. The event will host 400 HMO industry professionals from all around the country, covering the entire supply chain from investors, developers, managers and suppliers. The daytime agenda offers a networking and learning opportunity unlike any other, featuring 14 TED style talks.
?The evening is a festival-style celebration with live music, street food, a bar, and networking. This event isn't to be missed!
We are exclusively announcing the first 3 speakers at The HMO Awards
John Paul
As founder of the Castledene Group, John built the business to 12 branches, managing 2250 properties and selling over 900 a year with 55 staff.
Stephanie Taylor
Stephanie, a leading expert on rent to rent, has been featured on the BBC, Business Insider and Telegraph. She is a passionate advocate that ethical investment is open to everyone.
领英推荐
Kim McGinley
Kim is the?Managing Director of award winning VIBE Specialist Finance, VIBE Mortgages & Protection and non executive Board Director at the NACFB.
HMO Zone @ Property Investor Show London
19th - 20th April 2024
The upcoming April Property Investor Show at London Excel is the property sector’s largest exhibition, and will feature a brand new HMO Zone dedicated to exploring the many benefits of HMOs. Landlords looking to capitalise on this lucrative sector won't want to miss out on this unique opportunity.?
Attendees can also participate in a selection of informative seminars and panel debates, led by a team of industry specialists.
Scaling From 120 to 1,200 Rooms What I Wish I Knew
by Jordi Pasqualin
When his professional rugby career ended, Jordi Pasqualin turned to property. Over the next few years he built up a Rent to Rent portfolio of over 1,2000 rooms. Join him in the Piano Room at HMO Awards 2022 as he shares what he learned along the way.
Babouris, an independent HMO Lettings & Management agency operating in and around the Cambridge area, boasting 600 tenants today, with a balanced split of 50% young professionals and 50% students.?
The owner, Alex Babouris, is focused on creating a premium brand, tapping into the growing demand for higher-end house shares, guiding his approach of integrating coliving designs and providing exceptional tenant care to aid landlords in maximising returns.
A key element of running a slick operation in his agency has been adopting COHO’s management software from the early days. He explains, “The software allows my team to excel in their roles and improve tenant satisfaction. The HMO specialist system inspires confidence in our clients, enhancing the agency's reputation, and COHO's adoption has become a catalyst for our growth. The Occupancy panel was a simple idea but a game-changer, replacing our rather daunting excel spreadsheet with many tabs, letting us effortlessly track room and property occupancy, tenancy transitions, and renewal deadlines - there’s just no more second guessing.”
Want to share your tips with tens of thousands of people? Get involved below.
In late February COHO, the company behind The HMO Awards, organsed HMO ManorMind 2.0, a follow-up to last years highly successful mastermind event.?
Drawing 40 top thought-leaders from the HMO industry, with a collective responsibility of 9,800 rooms, the event took place within the exclusively hired 16th centry mansion in the countryside.
Amidst the backdrop of lavish amenities including an indoor pool and jacuzzi, attendees engaged in roundtable discussions focused on bridging the gap between property developers and agents, as well as their challenges in 2024, and the small changes that businesses can do that can make a big difference.
The dialogue highlighted a common desire for improved communication to better align their interests, underscoring the event's commitment to fostering meaningful connections and insights within the industry.
One guest summarised:
"As landlords, we want to create win-win scenarios for us all; landlords, the agents and the tenants. Biggest issues for us are voids, and being heavily involved with the minor issues. Collectively, we feel a better communication and understanding between landlord and agent will help in creating a smoother relationship. Set out clear context of requirements and expectations. Each landlord is different, so be more tailored for each. But in summary, communication is key.
COHO regularly keeps an eye out for potential ManorMind attendees. If you are interested in attending a future event, email [email protected] .
This is just the first issue of this newsletter. In the coming months we'll have new features, including a deeper dive into tenant and occupancy data not found elsewhere.
Upcoming Debates:
We have two upcoming debate topics that we'd love to hear your opinions on
"The importance of knowing your tenants, or not"
"Using VAs to scale your property management"
If you'd like to contribute any content or news, please write an email to [email protected]
Creative Director, Filmmaker & Director of Photography
7 个月Here for the "Tips from the Experts" section ?? Alex Babouris ??
Founder of COHO ?? Start-up Entrepreneur of the Year 2022 ??
7 个月Featured in this newsletter: Andy Graham , Stephanie Taylor , John Paul , Kim McGinley , Jordi Pasqualin and the wonderful Alex Babouris