Each month, we select one of the many valued agents we work with – and shine a spotlight on them, their agency; and the work that they’re doing. This March, we are talking to property professional, Dean Crossley, Managing Director at Square Quarters, London. Dean has a wealth of experience in property investment, property management, lettings, BTL and Sales. Having previously been a property consultant after studying at the University of Westminster; Dean is also experienced in educating investors on how to strategically build their property portfolios from 0-10.

Q. We are well into 2023 now. With increased mortgage costs, coupled with the recent legislative changes proposed/implemented; the future does seem somewhat uncertain – and possibly more difficult to predict now, than this time last year, even. With the current surge in rental demand met with what looks to be a potentially critical housing shortage; how would you summarise our current situation?

A. There have been multiple challenges faced by landlords in recent times. Since the beginning of 2023, we, as an agency have had to ensure that we are adaptable and being proactive with current market conditions, so that we can navigate landlords smoothly through the economic pressures.

Mortgage rates have increased somewhat as they have been artificially low, slowly creeping down since the 2008 Credit Crunch to restore the economy. I think 5% will be the new normal as it was previously.

However, to combat this for landlords; the rental market is at its all-time high, with a yearly rental increase of around 20% on average in our local market. Agents should be working with landlords to maximise the rental income.

This rental increase I believe is due to the regulatory and tax changes landlords have faced recently with mortgage interest tax relief removal, high stamp duty rates and the reduction of capital gains tax allowance, which in turn has caused a lot of landlords to sell up (and, also some home buyers to rent currently).

Therefore, due to the law of supply and demand, the shortage of properties on the rental market coupled with increased demand, has pushed rents up, enabling landlords to successfully overcome the current challenges, with the help of their agent.

Q. How do you foresee the abolition of Section 21 unfolding this year? The strengthening of Section 8 has been mentioned, but it all seems a bit vague at present.

A. It is extremely likely now that Section 21 will be abolished as part of the Renters Reform Act. However, when that happens is still undecided. There are still some issues that need to be ironed out, such as student accommodation, or what happens if a landlord wants to sell their property with a tenant in situ.

There’s also some further clarity needed on the reforms that will be made to the Section 8 notices which would need to be used for possession as the government are supposed to be making it easier to use this method for a fault eviction, or where the landlord needs to sell or use as their own home.

Once these are clarified, this should be coming into play in a 2-stage process. Stage one will transition all new tenancies to being periodic tenancies. Next, stage two around 6 months later will then move all existing tenancies to the new system.

This, again, is about your agent staying adaptive and proactive. As although you will have less flexibility to give notice to no fault tenants, the importance would be keeping a good open line of communication with the tenants and still ensuring your rental income is maximised and your property investment is being looked after.

Q. You mentioned earlier about navigating landlords smoothly through the current economic pressures. How is your agency approaching this?

A. Communication is key, so we are always keeping our landlords up to date with the latest changes with our monthly email newsletters and our inter-monthly updates. As there are so many changes; the key is to stay informed, maximise your rental income, ensure you have quality tenants and stay ahead of the game. In the current market, we have also been recommended rent guarantee on tenancies for landlords who want that ultimate peace of mind.

Q. Why choose Square Quarters?

A. Square Quarters are a multi-award winning independent letting agency that have been helping landlords and tenants move since 2008. Yes, since the credit crunch when most people on the market were renting. Our service has always been about revolutionising the way we work as agents by putting the client/Landlord first, hence our motto.

We use a mix of the latest technology, maximum marketing reach – and most importantly, building trust and maintaining excellent and long-term relationships with our clients.

This has led to us winning multiple awards every year with the most recent being the prestige ‘British Property Awards BEST Letting Agents’ in N1 GOLD 2022-2023, for the second year, consecutively. We have also recently won the ‘ALLAgents.co.uk’ – and ‘Best Letting Agent in N1 2022′ These awards mean a lot to us (as both associations automatically enter all agents in our area). We are, unbelievably, up against 220 agents; (and this isn’t us bragging), but it lets us know we are on the right track with our clients. Which is our goal.

We have also recently been exclusively chosen by ‘The Guild of Property Professionals‘. So, Square Quarters are now part of the largest network of Estate Agents, with access to exclusive tools and market reach which benefits our customers.

Square Quarters covers all of London for our fully managed clients – and we are members of UKALA.

Q. ‘We’re not no.1 – YOU ARE’ – is your motto – and a refreshingly different approach in this industry. Having spoken with you; you are genuinely customer orientated. Is there a final ray of light, therefore, that you can shine upon what may seem like a slightly gloomy situation for many landlords?

A) There is a lot of positivity for landlords, despite the doom and gloom in the news. I see rents remaining at current highs for the near future until supply catches up; with more landlords entering the market. Our recommended mortgage broker has still been able to secure some great mortgage deals with BTL mortgages fixed for 1 year from 3.89% on 75% LTV. There will always be ways to adapt to the market to ensure landlords are protected and maximising on their investments.

Despite the problems anticipated by many, at present; with the help of a quality agent, these can be overcome. Helping landlords to maximise their rental income, is the one of the best ways to support landlords now. We want the best for landlords and tenants.

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