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Residential Lettings - A Guide to Renting Property in the UK
The Unique Property Market Of The UK
The property market in the UK is very different from many markets, particularly the US.
Estate Agents typically represent the seller or landlord and often the buyer or renter doesn’t have anyone representing their interest in the initial offer stage unless you or your company hires someone to provide that service.
It can mean less in fees overall, but it is important to make sure you know at least the basics to help you find the perfect home in the UK at the right price and to settle in successfully to this wonderful country.
Finding the Right Area
It can be incredibly difficult to know where to live and to find the right place. We recommend using your visits leading up to your assignment to stay in different areas and to rent real homes so you can learn what is important to you.
Consider the following checklist:
Across the UK you can find the best providers through the Industry Body, the Short-Term Association Accomodation.
When to find your new home
The rental market moves very quickly (particularly in London) and as a general rule the earliest you should start viewing apartments would be 4 weeks prior to your move date. We would recommend finding temporary housing when you arrive for between 1-3 months so you can find the perfect place. It also allows time for all of your things to arrive from overseas.
Requirements – to get an idea of the type of property you are looking for you will want to consider the following:
It may be that you don’t yet have the answers to all of questions yet but any you can complete will help you focus your search.
Research
You can take a look at what is available on the market by looking at property portals such as OnTheMarket, Zoopla, or Rightmove to get an idea what is available.
Estate Agents
In the UK Estate Agents typically represent the Landlord or Seller but most people looking independently register with one or more Estate Agents who will help them find a good home. There are nationwide Estate Agency and London based Estate Agencies who can offer a range of services to help you find the perfect home. If you want to be in the heart of Central London, seek smaller independent agents.
Property Search Agent - When it comes to finding a long term let there are the various property portals mentioned above which list available properties. But searching can be frustrating and time consuming, especially if you don’t know the areas or what to look for and if you have to deal with various different lettings agents (each with their own portfolio of properties). An alternative is to work with a reputable search agent such as Ugo Arinzeh of Onyx Property Consultants who specialises in property searches and will work on your behalf. She and her team can help you understand what areas to consider based on your needs, organise and attend viewings with you or on your behalf, negotiate rental terms and conditions and help facilitate the move in process. The benefit of expert knowledge cannot be overestimated and should reduce stress by refining your search, preventing wasted journeys and unnecessary expenses. As an American herself, she knows what it’s like to move over and can provide unique perspective on things to consider, how best to prepare for the tenant referencing process and what to avoid.
Acting as a retained search agent they can act on your behalf and seek to secure your chosen property for the most favourable price.
Viewing
Property tours generally take place during office hours (Monday – Friday 9am – 6pm). In London you can typically get Saturday viewings as well. It is the landlord’s agent showing you around so come prepared with your list of questions as they are unlikely to tell you the downsides if you don’t ask.
Questions to consider
- Management - Who manages the property? Is it the landlord, the agent or a property management company? Ask about the speed for issues being resolved and reviews.
- Contract term - What is the contract term and what is my protection for increases in the price beyond that term? 1-year contracts with a six-month break clause are typical and allows you to get out if it turns out to be a bad decision. Protection by having a cap on future increases can also be helpful to include in the contract.
- Furnished, partly furnished or unfurnished - In the UK, particularly in London it is common to find fully furnished apartments. This can be an easy way to step straight into a home without having to think about appliances or furniture. You can sometimes negotiate changes, but this must be done up front as they are unlikely to agree to changes (even removing small things) if its not agreed at contract stage.
- Condition - does anything need painted, repaired or replaced to ensure it is the standard you would expect? Typically, UK landlords don’t paint in between tenancies and replacing old appliances can be a battle once you are in so note anything you would want upgraded in the viewing and ask the agent if the landlord is open to improvements.
Making an Offer
Once you have found the perfect home, you will need to put an offer forward to the landlord as quickly as possible, typically the same day. This should outline the terms under which you wish to take the property including your preferred move in date, rental price, contract period.
It is imperative to document everything you would want to be done to the property in advance of taking possession in your offer but also note that UK renters typically don’t ask for too much so prioritise what is really important.
It is common to offer a small discount on the asking price and to negotiate. For popular homes, you may need to pay the full asking price and properties can even go to bidding wars depending on the popularity of the location and local market conditions.
You can put the offer to the landlord’s agent directly or your Agent will talk you through all the options and put this forward on your behalf. It is usual in London for a property to be listed with more than one agent which means it is vital to express your interest at the earliest stage possible.
Administration
Once terms are agreed you will need the following (quickly!) in order to secure the property:
Reference contact details - most likely you will then need to complete a reference application form, or the agent may request letters from the following: bank/employer/previous Landlord/personal reference)
Administration Fees
From June 1st 2019, the rules around Administration fees in the UK are changing. You can read about the latest guidance on the Residential Landlords Association website. Prior to that date, they would typically include agents charges for preparing the tenancy paperwork and other extras:
Rental and Deposit Funds
It is standard to pay a 6-week rental deposit plus the first rental instalment (often monthly) in advance prior to moving into the property. Please note these must be showing as cleared funds prior to the commencement of the Tenancy.
Contract
A ‘standard’ lease is often one year. You can also request options are written into your contract such as ‘Option to renew’ which give the tenant the right to extend after the first year within certain guidelines and some landlords may consider a ‘break clause’ which allows you to terminate a contract after 6 months. These are all specific clauses which will have to be negotiated as part of the contract process.
Utilities
Usually the rental price advertised is ‘pure rental’ and will generally not be inclusive of any bills. As the tenant you will be responsible for Gas, Water, Electricity, Water Rates, and the Council Tax. You can ask for previous history and expected costs in advance but unfortunately most of these are fixed and will depend wholly on the level of usage. The Council Tax which will be the highest charge is a property tax which is fixed by the local Council and will depend on the size and value of the property as well as number of people living in the home.
You will also need to take into account the telephone line rental and call charges, internet/broadband rental and cable/satellite television providers who will charge according to the package you take. Many tenants choose to pay all these bills as a monthly direct debit.
Television Licence
In the UK it is also a requirement to purchase a Television licence full details can be found via www.tvlicensing.co.uk.
Insurance
Whilst the Landlord is responsible for insuring their own property please note that it is the Tenants responsibility to insure their own belongings and to cover any damage that does not come under the remit of ‘Fair Wear & Tear’ this comes under ‘contents insurance’ and should be taken as soon as contracts are exchanged.
Furnished/Unfurnished?
This can be confusing! In London it is not cheaper to rent an unfurnished apartment. The same property could be offered furnished or unfurnished and this will not affect the price. Most 1-bedroom apartments are offered furnished as there is a higher demand for furnished apartments as they tend to be higher turnover. Most family properties come unfurnished again to meet demand. In 2 and 3 bedroom properties will find more of a mix of furnished and unfurnished offered. Please note however if you view a property which is offered as unfurnished apartment and request it is furnished (or indeed vice versa) this will often increase the rental to cover the landlords costs for furnishing/storage.
‘Furnished’ covers all the larger items and often kitchen basics. It also typically includes all your electrical appliances, which can be helpful if you are moving from the US or other location with different electrics. You can typically ask for the inventory list so you can make sure you know what it includes and doesn’t include.
‘Unfurnished’ covers white goods carpets and often window dressings however the extent of furnishing and finish will depend entirely on the landlord and can vary – if you require something that isn’t in the apartment you must request it when you put an offer forward.
Rental Budget - How much should I pay?
One of the first questions you will be asked is ‘what is your budget?’ and Agents are often asked ‘how much should we pay?’ This varies for each individual be prepared in London it is most usual to pay a higher proportion of your salary than you may do in other cities/countries. As a guide MANY referencing companies deem it necessary to earn a salary which equates at least twice the amount of your rental per annum to pass references. If the rental is above this proportion then they will class a ‘fail’ for references and a Guarantor or extra rent in advance will be recommended.
