Rental stock levels are low:
Already this year we have sadly lost several rental properties. The pressure and challenge for Landlords, who are anxious about the increasing regulation; the hike in re-mortgaging BTL rates; and tax changes, is higher than ever. Some will exit the rental business altogether, whilst others will explore the short let market as an alternative until this sector also becomes more regulated.
For those Landlords who have decided to weather the storm, they should expect higher yields in the coming months and fewer void periods. Demand, particularly from buyers putting plans on hold until interest rates ease, has jumped up 23% in the South East from this time last year, according to Rightmove data. The data also announced that first-time buyers have been hardest hit by interest rates and are considering short-term rents during the financial uncertainty period.
A recent Rightmove survey amongst letting agents have found that, on average, agents are receiving 36 enquiries per property and spending nearly 6 hours on property viewings in what Rightmove has reported as “the most competitive rental market on record”.
Regulation update: no news is good news!
The is no further update or news regarding the Renter’s Reform Bill nor the EPC regulation changes at this point. We will of course update you as soon as we know more.
Landlord Obligations:
You can download our compliance checklist here, of course, if we are managing your rental property for you all of your obligations will be fulfilled in full, and we take great care to ensure that you are always compliant with the mountain of lettings legislation that covers the private rental sector.
How to Rent in England Guide:
It is a landlord or letting agent’s legal responsibility to provide this Government booklet to your tenants
- Without a guide, landlords or their agents cannot utilise the section 21 eviction procedure; it will fail. Even though the section 21 process is likely to be repealed in the near future, this is not likely to occur until at least well into 2023, it is a legal requirement to issue this guide to your tenants.
- Whenever a new tenancy begins or an existing one is renewed, the issued guide must always be the most recent version available. If the earlier version was issued in error, landlords or their agents should issue the subsequent version to the tenant/tenants. Be mindful that the guide is likely to be updated during 2023.
- The landlord’s section 21 possession claim will fail if the tenant denies receiving the guide, so it is essential to obtain proof of its distribution. Ideally, the most recent version of the guide should be attached to the rental agreement and signed for, or an email version should be sent with its receipt confirmed.
If you have any questions or would like to discuss the information in this month’s article, please give me a call on 01494 685518 or email me: clairew@ashingtonpage.co.uk