INTERIOR TRENDS of 2018

Being Estate Agents in W1, Fitzrovia we like to keep our ear to the ground of what’s hot & what’s not in the Interiors World.   With many top notch interiors show rooms in our vicinity,  it’s easy to do just that!  2017 saw the rise of all things copper, marble and green, and as we step in to 2018, we have asked Emma to give us her thoughts on interior design predictions for the year ahead and the trends that she would like to hang around for a little longer.   Here’s what she said…

G R E Y is here to stay!

3D illustration. The interior of gray bedroom with a wooden table

It’s probable this neutral hue is here to stay. And why not? I love grey. It’s timeless and looks great in any interior. It is a versatile colour and is often used as a base colour of an interior scheme. Lighter hues can create a bright, crisp and simplistic setting while warmer and darker hues can create something more moody, cosy and sophisticated. It works well to pair them together or you could create a contrast by adding vibrant and bolder colours. I am a bit of a sucker for piaring lighter and darker shades of grey with soft pinks or emerald greens – sumptious!

We are G O L D!

Gold Light blog

Gold is the metal of 2018. A little more sophisticated than copper, gold compliments pinks, navys and greens. Think gold accessories – door handles, candle sticks and lighting. I love antique gold and brass accessories. I am currently using Olson Pendant lights from Heals for my latest  interior design scheme in Fitzrovia.

V I O L E T S are blue!

Rendering of a Modern chic classic luxury white European interior with violet velvet sofa

 

Pantone released Ultra Violet as 2018s colour of the year. I’m not sure I could paint an entire room in it (remember Rachel and Monica’s apartment from Friends!) but I’ve always quite liked tones of purple linked subtly to a scheme. Purple is associated with Royalty and could make an interior look fabulously regal. If you’re a bit like me, you could use it in a couple of scatter cushions, a lamp shade or perhaps some glass door knobs on your favourite cabinet for a change.

W A L L  A R T  C L U S T E R

photo or painting frames set

Cluster together your favourite prints, photos and pieces of art to create your own wall gallery. If you have tendancy for order though, this might not be for you but a wall gallery can look really effective and is a chance to display all your favourite pictures.  Choose your wall carefully and think about the ratio of the number of frames to the size of the wall.

Pantone 2018

Grunge purple interior with modern sofa - rendering-the art picture on wall is a my composition

Each year a colour is chosen by the company Pantone as Colour of the Year.  You may have got wind by now that the pantone for 2018 (“pantone” meaning “a system for matching colours”, not to be confused  with “pannetone” an Italian sweet loaf cake, often scoffed around Christmas time), is…wait for it…18-3838, also known as Ultra Violet. Yup, an I-mean-business, in your face, shocking vibrant purple – pretty much describes this shade.  This colour is no shrinking violet.

Purple is often associated with royalty, nobility, luxury, power, and ambition. The colour has also been known to represent wealth, extravagance, creativity, wisdom, dignity, grandeur, devotion, peace, pride, mystery, independence, and magic. Each year the shops become awash with the chosen colour, so you’ll have plenty of ultra violet to get your hands on if you wish to do so, but what can we realistically do with this proud purple colour?  Unless you connect with all of the above/ are Barbara Cartland/want to make a really bold statement, I would err on the side of caution and use sparingly.  Accent your bathroom with a hand towel or a toothbrush holder and soap dispenser.  A cushion or a vase in the bedroom or sitting room will add a splash of colour.  But my best tip would be to find some beautiful purple flowers, they’ll die naturally (so no need to feel guilty about throwing them out), they’re inexpensive, and it would be the perfect, diplomatic, subtle nod to the colour.  The perfect win win situation!  And just as a side note – Davis Brown. estate agents in W1, will not be changing the colour of their logo any time soon..

 

Predictions for the UK Property Market in 2018

London Skyline

2017 was an unusual year both in the UK and overseas, showing increased uncertainty in the UK property market. BREXIT has been hugely responsible for this uncertainty within the UK and there have been signs that the number of deals decreased towards the end of 2017 as investors became increasingly cautious. It looks like this may continue into 2018 as negotiations in Europe and other national and global political decisions remain completely unpredictable. So how could this affect the UK property market in the next 12 months?

Although companies are being more cautious the office market, especially in Central London, is expected to remain relatively active. This is primarily due to a significant lack of available office units on the market. In London’s West End much of the development, over the last couple of years, has been the conversion of office blocks to residential units. This includes projects like Centre Point at Tottenham Court Road creating in excess of 80 luxury flats. In 2017 Davis Brown (being estate agents in Fitzrovia) continued to let offices in Fitzrovia despite concerns that activity may slow as companies were becoming reluctant to move or even move to cheaper locations outside of Central London. This is expected to continue into 2018 as there are a limited number of offices on the market, and rents achieved are likely to remain consistent.

As consumers’ attitudes change increasingly towards purchasing online, along with the worry of increased inflation, it has been predicted that secondary high streets are likely to struggle, whereas main streets with flagship stores are less likely to be affected. Despite this, areas such as Kentish Town Road are becoming more popular locations. New leases have just been agreed with increasingly upmarket brands and this will attract further retailers and likely result in overall rental increases in the area.

This continuing change in shopping behaviour has increased the requirement for industrial warehouses and distribution centres. Over the last few years demand for industrial units has increased leading to rental increase and continued development, so likely to remain an attractive investment to many investors.

The residential property market struggled in 2017 due to a change in Stamp Duty – particularly in Central London and on second homes. The severe lack of housing still means there continues to be a rise in rents and increase in sale prices in highly populated areas. Incentives made by the government to assist first-time buyers have not been sufficient for many people to be able to buy a home, especially in London. This has resulted in many unable to get out of renting a property, putting increased demand on the rental sector. The RICS have recently predicted that an additional 1.8 million rental homes will need to be built by 2025!

Despite certain markets appearing to remain strong the level of uncertainty is likely to remain high for many investors, so as a result will be focusing on more risk adverse assets. Properties occupied by tenants with strong covenants for lease terms in excess of 15 years similar to the Nuffield Centre in Newbury, currently on the market with Davis Brown, are likely to appeal more to investors as the rental income is guaranteed.

We can only wait and see what happens to the UK property market over the next 12 months; however it may not be as bad as many scare-mongers believe. As the pound still remains low it is likely that many overseas investors will continue to invest.

 

Hello, I am calling to report a leak..

flooding in luxurious interior. 3d creative concept

It’s 3am in the morning and your peaceful sleep is shattered by a panicked call from a leaseholder in a prestigious block.

There is water pouring into their unit from the flat above, and while you try to calm them down,  you begin to recite the lyrics to REM’s “It’s the end of the world as we know it” to yourself.

Your mind is filled with visions of their Yorkshire Terrier (which they are not allowed in terms their lease) dog paddling across the engineered wood floor in their living room (which should be carpeted).   Who will you call? How long will it take  for them to get there?  Where is the water valve for that building? What about the flat below? Insurers will need to be notified!  Maybe I should call an electrician to make sure the Yorkie isn’t electrocuted, why does it always happen at 3am?  The list goes on….

Finally you manage to get the flat owner off the phone, so you can in turn get hold of that firm that promised they offered a 24 hour emergency response service for situations just like this.

Is this really your problem?  As a conscientious property manager you will probably be trying to help despite the fact that your function is (mostly) to manage the service charge and the common parts.  In a block, leaks are always going to be a possibility (perhaps probability is a better choice of word!).

It’s a good idea to send a copy of your building insurance policy schedule to everyone with a covering note.   Leaseholders are legally entitled to have a copy of the insurance schedule anyway, so this is an ideal opportunity to highlight how they can help reduce leaks.  You may suggest that they regularly check that their appliances are correctly connected and that the waste/supply pipes are securely connected.  You might ask them to check that mastic seals around the shower and bath or kitchen sink are in good condition and that waste pipes are not leaking.  You could even go further and remind them to let you know if they are remodelling or altering their premises because these works carry an inherent risk of leaks into the flat(s) below.  You could ask them to let you have current contact details  – you never know when you will need them!

At 3 am in the morning though, please make sure you ask them if they have knocked on the door of the flat above first before you call that expensive 24/7 emergency plumber…!

Dilapidations, Explanations….Apply within.

Extensive mold growth throughtout the walls and ceilings of a home

In all the excitement of moving into your smart new premises, don’t forget that one day you are likely to be moving out again. This will come at a cost. I don’t mean just the removal company’s bill. If you are a lessee of commercial
property in the U.K., you will have a liability for dilapidations.
Your lease will impose obligations on you as a tenant. You will probably have to keep the property in good repair. You will certainly have to decorate shortly before your lease expires. You may also have to reinstate those expensive alterations you carried
out when you moved in. This will often come as a shock and usually as a large and unexpected expense, too. What can you do about it?
Take professional advice before entering into a lease. A Chartered Building Surveyor can provide a report on the condition of the property and, if you are planning to occupy a part of a building, the state of repair of the parts you may have contribute to the cost of maintaining through service charges. This may enable you to negotiate a reduction in your liabilities. Develop an exit strategy in good time. Prepare for your departure by setting aside funds to meet your liabilities. Ask your surveyor to have a look around close to the termination date. Do not leave the place in a mess. Even if
you decide not to redecorate and to take your chances with the landlord, remove those trailing cables gushing from floor boxes. Make sure the lights are all working.
Do a professional clean. Leave the space fit for occupation.
These simple measures will help to make your exit less painful.

2017…OVER AND OUT!

As 2017 draws to a close, my team and I have been reflecting on 2017’s property market. As with any market, there have been some peaks and troughs. We came to the conclusion that 2018 might be another tough year and if you are a Landlord or a Vendor, our motto for 2018 will be ‘dress to sell’.

To summarise the property market in 2017…

The year end lull of 2016 continued into early 2017. Buyers were reluctant to buy and vendors were reluctant to reduce asking prices. Who to blame/what to blame? Stamp duty, Brexit, changes to Landlord tax, BTL lending .  For those of you are interested this is great article to read: https://www.economist.com/news/britain/21730914-first-time-years-capital-performing-worse-rest-country-londons

Buyers were nervous, prices began to fall and we saw an increase in activity and offers. Despite a pretty turbulent start to 2017, the lettings market remained pretty steady which should make Landlords breathe a sigh of relief.

It became more apparent over the year, the flats that were well presented and dressed beautifully, were attracting more attention and achieving the best possible price we could achieve on the open market. We therefore took a look back through our Top 3 ‘best dressed’ properties of 2017.

If you are a vendor or a landlord and you are struggling to sell or rent your property, perhaps this should be something to consider?  Being Estate Agents in W1 , we offer services in residential sales, lettings and interior design.

F I T Z R O Y  S Q U A R E

1stpic

(Interior Styling by EHG Home)

M O R T I M E R  S T R E E T

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(Interior Styling by Davis Brown)

F I T Z R O Y  S T R E E T

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The New 2018 EPC Regulations

Energy labels with home on white background. Vector illustration

For most people the carbon footprint of their rental property isn’t the top priority when looking into next year.  However, as of 1st April 2018, any rental property which doesn’t comply with the changes to the Energy Performance Certificate regulations could actually cost you money and your ability to let the property.  As this deadline approaches we consider the main issues.

The issues of EPCs have long been contentious issue within the property industry creating uncertainty among landlords and agents alike. Earlier this year the Dept. for Energy & Climate Change finally completed the 2018 EPC regulations, which set out the minimum level of energy efficiency for private rented property in England and Wales. This means that as of 1 April 2018 it will be unlawful to let or lease a property that has an EPC rating lower than E.

These new EPC requirements apply to both domestic (from one-room flats to detached houses) and non-domestic properties including factories and offices. The changes to the regulations will be based on CO2 emissions for commercial property and on fuel costs for domestic dwellings.

So what does this mean for Landlords? You could find it increasingly difficult to let a house/flat or renew a commercial lease when the EPC rating is below an E. Government data shows that between 2008 and 2015 35% of non-domestic buildings that went under an EPC survey achieved an E,F or G rating as did 26% of domestic properties surveyed within the same time frame. This suggests that a significant proportion of the UK rental market could be affected by these changes, unless changes are made to improve their EPC rating.

As so many properties will need changes making by April next year to comply, this could well affect rental prices in the market. The upgrade costs to make sure properties comply with the regulations could be expensive, potentially forcing landlords to increase rent to cover those costs. The new regulations are also likely to have a significant effect on market value where poor performing properties will decrease in value due to their inability to let them without carrying out works.

Enforcement of these regulations will fall to local Trading Standards Officers and will have powers to impose civil penalties determined by the property’s rateable value. If a let property is found to be in breach of the Regulations and a penalty is imposed, the lease between the landlord and the tenant remains valid and in force.
Where the breach is for less than three months, the fine will be the equivalent of 10 per cent of the rateable value of commercial properties, subject to a minimum penalty of £5,000 and a maximum of £50,000 and £2,000 for residential properties. Where the breach is for more than three months, the fine will be the equivalent of 20 per cent of the rateable value for commercial properties subject to a minimum penalty of £10,000 and a maximum of £150,000 and £4,000 for residential properties.

Penalties for a single offence may be cumulative, up to a maximum of £5,000. Further penalties may be awarded for non-compliance with the original penalty notice where a landlord continues to rent out a non-compliant property; however, penalties would be cumulative up to a maximum of £5,000. The landlord can be awarded a further penalty if they keep offending.

If you’re a landlord and are worried about the upcoming changes, the first step is to talk to experts who can advise you on your situation. A local energy assessor will be able to offer you tailored expert advice and give you an EPC if you need one.  Even if a property doesn’t meet the required standards, it doesn’t necessarily mean you’ll be faced with a large repair bill for energy efficiency upgrades as some properties will be exempt.

Whatever your circumstance, there’s still time to prepare your property before the new changes take effect. If you’re still unsure, it is advised you receive an expert overview to make sure you are complying with the regulations, but with only a few months to go, it’s better to act sooner, rather than later.

Thank you Fitzrovia!

coatspic

As Fitzrovia’s collection point for Wrap Up London again this year, Davis Brown are proud to say that we achieved a great result with bags and bags of coats and jackets collected for those in need of warmth this Winter.  We want to say a huge THANK YOU to all our fellow Fitzrovians (and further afield), who donated a coat to this extremely worthwhile cause – we love that there is such a community spirit in our neighbourhood, where everyone supports each other, this couldn’t have been achieved without this giving spirit!

2 of Davis Brown employees – Josh and John hot-footed it up to Kings Cross Safe Store last Friday evening to deliver the goods which were sorted with all the other donations and will be currently making their way to several homeless shelters, womens’ refuges and many other charities around London .    So once again, we are most grateful for your generosity and thank you for making this year’s Wrap Up London such a success.

Choosing a Party Wall Surveyor

Silhouette row of businessmen sitting in meeting room

You may be amazed to know that a Party Wall Surveyor does not need to have any formal qualifications.  The only stipulation in the Party Wall etc. Act 1996 is that a party to the dispute may not act as his or her own party wall surveyor.  You can appoint your butcher, your baker or your candlestick maker.  In practice, it is as well to choose wisely.  Do not be tempted by the longest string of initials after a surveyors’ name.  Neither the cheapest nor the most expensive may be the best.  Do not respond to unsolicited enquiries from surveyors who have been monitoring planning websites.  Many of these get themselves appointed even before a notice is served under the Act so that recovery of their fees from neighbours carrying out the work, may prove difficult.  Avoid signing up to agreements under which you would be responsible as the adjoining owner for payment of your surveyor’s fee.  In most circumstances, these fees are payable by the party carrying out the work and it is for the surveyors to agree upon fees, their amount and who should pay them.  If your surveyor charges too much, you may find yourself left with the residue to pay yourself.

Choose your surveyor from a reputable source.  Professional regulatory bodies, such as the Royal Institution of Chartered Surveyors and the Royal Institute of British Architects will have lists of practitioners in this field.  The curiously named Pyramus & Thisbe Club also has a website with listings. You may have a friend who has had a good or bad experience previously which may help to guide you.  Above all, speak to the person you intend to appoint, find out about their experience, their charges and how they would deal with matters on your behalf.  Remember the appointment of a Party Wall Surveyor, like buying a pet, is not just for Christmas and once appointed you cannot dismiss them.  They are with you until the whole matter has been concluded!

Section 20 Consultation or “you really ought to want to”

Low angle vie of scaffolding, white background with copy space, full frame horizontal composition

If you like Charlie Puth or Cliff Richard you will know that they both sing about how “ we don’t talk anymore…” .  Very appropriate words for block management and in particular Section 20 Consultation on qualifying works.

As a block manager acting for multiple clients, it is sometimes easy to feel exasperated about expenses on residential blocks particularly when they exceed the “Section 20” threshold.

For the uninitiated, Section 20 Consultation is the legally prescribed procedure that Landlords (or agents like us acting on their behalf) must follow when carrying out qualifying works.  Without delving into the deeper “legalese” surrounding this and speaking generally for the purposes of day to day block management, the process broadly applies to qualifying works of maintenance or repair which would exceed £250 (inclusive of VAT) for any of the leaseholders in a residential block with variable service charges.

You can read about it in some detail here on the Leasehold Advisory Service Website:

https://www.lease-advice.org/advice-guide/section-20-consultation-private-landlords-resident-management-companies-agents/

I’m a big believer that people should know what they are getting into when they purchase the leasehold interest for a flat or apartment in a residential block, but sadly leaseholders often aren’t well advised on their potential liability for costs in terms of their lease covenants.

The fact that such a regimented approach is required before qualifying works  can be undertaken, is evidence of how much conflict there has historically been in this particular area of block management.

Analysis Business Brainstorming Corporate Smart Concept

In some ways, Section 20 consultation is like a school uniform – it’s great – everyone does the same thing,  there is no doubt about the procedure and dare I say Landlords and Agents can be “punished” if they deviate!

The problem though is that because it has become such a formal process, consultation is often regarded as just another hoop to jump through before a managing agent can get on with the work.  It is easy to forget that you’re dealing with the common parts of a residential block and the “owners” of the flats.  The service charge costs or contributions to major works are often an unwelcome additional burden on them despite their necessity, and as a result it is not uncommon for the relationship between the landlord (or his agent) and the leaseholders to become hostile if communication is sacrificed in the process of following the rules and just making sure formal notices are served correctly.   Frankly, so much of what we do as managing agents is about perception.

For example that hallway carpet and paintwork in the lobby of a small block with two or three flats can be an unwelcome expense if you demand leaseholder contributions just after the festive season when most people are recovering from traditional overindulgence and the stark reality of credit card repayments!   A managing agent may be acting within the prescribed set of rules, but will typically find they are “herding cats” in this situation.

By the same token, the scenario looks very different if the flat owners understand the necessity of the work, the procedures  you need to follow as a competent agent and the positive impact that well maintained common parts will have on the value of their investment.   You will often find that the leaseholders will initiate other works and work with you on overcoming obstacles as opposed to being reactive and defensive!  You really ought to want to speak to your leaseholders!

If this isn’t your experience, you need to be talking to us for your block management needs.