by Property118.com News Team 10: 0900 Hrs, 5th August 2024 Labour is looking to prevent landlords from evicting tenants who have nowhere else to live, the Telegraph reports. It says government ministers will propose imitating a French scheme which has ‘hardship tests’ that must be followed before an eviction is allowed. The rule effectively bans evictions that would leave a tenant worse off. Supported by ...
Despite challenging economic conditions, the market remains resilient, in part due to motivated buyers still looking for correctly priced homes. Activity amongst first-time buyers is holding up well. July and August are typically slow months for selling properties. Summer holidays, outdoor activities and children off school mean that our thoughts are elsewhere. In August we have historically seen an average month-on- month fall of 0.9% (Rightmove...
2023 Buy-to-Let Updates and News: 5 Changes for Landlords in the UK
Ashleah Pope ◦ 10 January 2023
The past few years have been busy for the rental sector. From the announcement of electrical regulations for rental properties in 2020, to the recent Renting Homes (Wales) Act coming into force in December 2022, plus a whole host of emergency pandemic legislation in between.
More significant changes for landlords and renters have been proposed through the likes of the Renters Reform Bill and Minimum Energy Efficiency Standards, but what can the property sector expect from 2023?
March 2023 – End of rent freeze in Scotland
The rent freeze and eviction moratorium brought in by The Cost of Living (Tenant Protection) Bill 2022 is meant to come to an end on 31 March.
The rent freeze was announced in September 2022, preventing private and social landlords from increasing rent during a tenancy.
This is a provisional end date and (as we’ve seen before) it could be extended for a further two six-month periods.
April 2023 – End of second home tax ‘loophole’ in England
Second home owners can currently pay business tax instead of council tax for their property if it is advertised as a holiday let for at least 140 days a year – even if it’s not let at all.
This ‘loophole’ has been criticised as it reduces the property’s tax liability to zero if it has a rateable value of less than £12,000. The government launched a consultation in response back in 2018 to limit the number of properties qualifying for small business rate relief.
From April 2023, properties will be assessed for business rates only if the owner can provide the following evidence:
The property is available for commercial let, as self-catering accommodation for short periods for a minimum of 140 days in the coming year
The property was available for commercial let, as self-catering accommodation for short periods for a minimum of 140 days in the previous year
The property was actually let commercially for at least 70 days as self-catering short-period accommodation in the previous year
April 2023 – Short-term let licence deadline in Scotland
On 1 October 2022, the laws around short-term lets changed in Scotland, requiring hosts to apply for a short-term let licence before receiving guests. In December, the Scottish government announced a one-off six-month extension to the legislation due to the pressures that the cost of living crisis has created for hosts and small businesses.
Existing hosts must apply for a short-term let licence by 1 April 2023 and can continue operating whilst their application is being processed. The application is made to the local authority, some of which have been given powers to create control areas to manage the number of short-term lets.
April 2023 – Increase in minimum EPC rating for commercial lets
From 1 April 2023, all commercially rented properties must have a minimum energy performance rating of ‘E’ or above.
The Minimum Energy Efficiency Standards increased the rating requirement for private rentals back in 2018. At the moment, only new commercial leases and renewals must have a rating of ‘E’, but this will apply to all commercial lets from April 2023.
The government have plans to raise the minimum to ‘C’ from December 2025 for new tenancies, and all tenancies from 2028, so landlords will be gearing up to make energy improvements to their properties soon.
June 2023 – Deadline for written statements under the Renting Homes (Wales) Act
On 1 December 2022, the Renting Homes (Wales) Act came into force, bringing major changes for landlords and tenants in Wales.
This includes the replacement of assured shorthold tenancies with occupation contracts, that must be issued as a written statement to the tenant. All new occupation contracts from 1 December must have a written statement.
Existing tenancies automatically converted to an occupation contract on this date. Landlords have until 1 June 2023 to issue a written statement of the converted occupation contract and are advised to do so sooner rather than later.
From 1 June 2023, landlords of Welsh properties must also ensure their properties have a professional electrical inspection and Electrical Installation Condition Report (EICR), smoke alarms on every floor and carbon monoxide alarms where required.
The new legislation has also changed the abandonment procedures, notice periods, rules regarding fitness for human habitation, and more. Read the full changes here: Renting Homes Wales Act: Guidance for Welsh Landlords and Tenants
Changes for landlords: Renters Reform Bill
The Renters Reform Bill was announced in June 2022, as part of the government white paper: A Fairer Private Rented Sector.
The white paper details the government’s commitment to “deliver a fairer, more secure, and higher quality Private Rented Sector” and is expected to be the “biggest shake-up of the rented sector for 30 years”.
The Bill proposes some major changes, including a new mandatory Ombudsman for landlords and renters, improving property safety with the Decent Homes Standard, and the abolition of Section 21.
There are no dates for when these changes will come into force, but further announcements from the Department of Levelling Up, Housing and Communities are expected in 2023.
Changes for landlords: Increasing licensing schemes
Selective and additional licensing schemes ensure landlords must apply for a licence to rent out properties in certain areas. More and more schemes have been introduced over recent years, with over 50 new schemes and consultations launched in 2022 alone in Greenwich, Oxford, Leicester and other areas.
Birmingham City Council is set to introduce a selective licensing scheme in June 2023, applicable to over 40,000 rented properties and becoming the largest scheme in the UK. The scheme is set to target areas where rentals make up over 20% of properties or there are high levels of deprivation and crime
Posted - Feb 16 2023- Landlord Vision
Landlords & Rental Market in 2023
With demand high and rental prices on the up, it might seem like a great time to be a landlord. However, there are still plenty of challenges on the horizon.
The impact of the cost of living crisis is being felt in all corners. An increase to mortgage payments brought about by high interest rates can eat into the profitability of your property. You are then left with the decision to either accept a reduced yield or put the rent up, which no one likes to do during such a turbulent time.
Impending regulatory changes also need to be factored in: the rent freeze in Scotland is scheduled to end in March; commercial lets will be required to have a minimum EPC rating of E or above from April; and further news is expected on the Renters Reform Bill, which could require investment to meet new safety standards.
Where is the Rental Market Heading?
Private rental prices in the UK rose by 3.8% in the 12 months to October 2022 – the largest percentage change since the data started being collected in January 2016. That trend is expected to continue with demand high and supply low – according to Propertymark, an average of 11 prospective tenants registered for every property across 2022.
High mortgage rates will only amplify this by making it more difficult for first-time buyers to get on the property ladder, leaving renting as their only option. At the same time, the decrease to rental yields may encourage some landlords to sell up. Incoming legislation is also set to put landlords in a position where they will need to fork out for upgrades to their property, so they may be keen to exit the market beforehand.
These factors only serve to widen the imbalance between supply and demand, forcing prices up further.
How to Legally Increase Rental Prices
The potential for increased rental yields in 2023 is a great opportunity for landlords.
However, raising the rent you ask your tenants to pay is always something to be approached delicately and with empathy. There are a few things to bear in mind too.
When to Increase the Rent?
If your tenants are on a rolling weekly/monthly contract, you can typically adjust the rent once a year without their agreement. Fixed-term tenancies – usually six or 12-month contracts – can only be changed with the consent of the tenant unless otherwise stipulated in the tenancy agreement. If they do not agree, the rate can only be increased when the fixed term ends.
How Much Can You Increase Rent By?
According to the Government, any rent increases must be “fair and realistic”. This essentially means in line with equivalent properties in the local area. If the tenancy agreement includes a procedure for rent increases, you must stick to it.
Section 13 Procedure
Through section 13 of the Housing Act 1998, landlords can put up the rent on assured tenancies – periodic or shorthold – by giving the appropriate notice. This can only be done once every 12 months and not within the first 12 months of a tenancy. However, the notice can be challenged by the tenant.
How to Increase the Value of Your Property
If you’re keen to take full advantage of the potential to maximise your rental yields, it may be worth investing some money into your property. Whether it’s just a fresh coat of paint in every room or a complete bathroom overhaul, there are many ways you can increase the rental price your property could achieve.
Fix Superficial Defects
This is probably the easiest way to boost your property’s value. If the walls are dirty or the paint is peeling away, give them a clean and a fresh coat to reinvigorate the space.
Mouldy sealant in kitchens and bathrooms can be particularly off-putting to prospective tenants. Not only is damp bad for their health, but it can also be a pain to keep on top of. And, of course, have a declutter if you’re letting a furnished property – this will give it a more attractive appearance.
Optimise Space
It’s important to make your property feel as spacious as possible – tenants understandably want to feel that they are getting their money’s worth.
Incorporating sufficient storage is extremely important in rental properties. Putting up shelves in rooms with high ceilings provides this and does not take away any floor space.
Fitted wardrobes are great for making full use of space – particularly in rooms that have an awkward shape. This saves your tenant from having to invest in expensive furniture that they’ll then need to fit in another property if they decided to move on.
Energy-efficient Upgrades
From April 2025, the minimum EPC rating of domestic rental properties is set to be increased from E to C. It’s a good idea to start working towards that if you want to remain in the market.
There’s no escaping the fact that this is likely to require substantial investment. While the installation of double or triple-glazed windows and smart technology to control the central heating are a good start, more significant work will be required.
You could consider having solar panels installed or replacing your boiler with an air-source heat pump. Loft and cavity wall insulation will also be extremely helpful as they enable the property to retain more heat.
With energy prices at extremely high levels, a greener home will no doubt be enticing for prospective tenants.
Upgrade the Garden
Everyone developed a greater appreciation for their outside space when the coronavirus pandemic sent the UK into lockdown. Making your property’s garden an enticing place to be can certainly push up the value.
The key is to keep everything low maintenance. If it’s not, the garden could quickly become overgrown and leave you needing to redo the work should you need to find new tenants.
Young people are less likely to spend time tending to the garden, so if you’re targeting young professionals then hardier plants and fences rather than hedges are the way to go. They’ll no doubt appreciate outside seating for entertaining too.
Families, meanwhile, will value a grassy area (make sure they have a lawnmower available or use an artificial turf), a patio and storage for bicycles, paddling pools, etc.
In conclusion
The year ahead can be whatever you make of it. You can opt to sell up and avoid the potential strain that could be placed on your finances or look to capitalise on the high demand and send your rental yield skyrocketing.
With demand high and rental prices on the up, it might seem like a great time to be a landlord. However, there are still plenty of challenges on the horizon.
The impact of the cost of living crisis is being felt in all corners. An increase to mortgage payments brought about by high interest rates can eat into the profitability of your property. You are then left with the decision to either accept a reduced yield or put the rent up, which no one likes to do during such a turbulent time.
Impending regulatory changes also need to be factored in: the rent freeze in Scotland is scheduled to end in March; commercial lets will be required to have a minimum EPC rating of E or above from April; and further news is expected on the Renters Reform Bill, which could require investment to meet new safety standards.
Where is the Rental Market Heading?
Private rental prices in the UK rose by 3.8% in the 12 months to October 2022 – the largest percentage change since the data started being collected in January 2016. That trend is expected to continue with demand high and supply low – according to Propertymark, an average of 11 prospective tenants registered for every property across 2022.
High mortgage rates will only amplify this by making it more difficult for first-time buyers to get on the property ladder, leaving renting as their only option. At the same time, the decrease to rental yields may encourage some landlords to sell up. Incoming legislation is also set to put landlords in a position where they will need to fork out for upgrades to their property, so they may be keen to exit the market beforehand.
These factors only serve to widen the imbalance between supply and demand, forcing prices up further.
How to Legally Increase Rental Prices
The potential for increased rental yields in 2023 is a great opportunity for landlords.
However, raising the rent you ask your tenants to pay is always something to be approached delicately and with empathy. There are a few things to bear in mind too.
When to Increase the Rent?
If your tenants are on a rolling weekly/monthly contract, you can typically adjust the rent once a year without their agreement. Fixed-term tenancies – usually six or 12-month contracts – can only be changed with the consent of the tenant unless otherwise stipulated in the tenancy agreement. If they do not agree, the rate can only be increased when the fixed term ends.
How Much Can You Increase Rent By?
According to the Government, any rent increases must be “fair and realistic”. This essentially means in line with equivalent properties in the local area. If the tenancy agreement includes a procedure for rent increases, you must stick to it.
Section 13 Procedure
Through section 13 of the Housing Act 1998, landlords can put up the rent on assured tenancies – periodic or shorthold – by giving the appropriate notice. This can only be done once every 12 months and not within the first 12 months of a tenancy. However, the notice can be challenged by the tenant.
How to Increase the Value of Your Property
If you’re keen to take full advantage of the potential to maximise your rental yields, it may be worth investing some money into your property. Whether it’s just a fresh coat of paint in every room or a complete bathroom overhaul, there are many ways you can increase the rental price your property could achieve.
Fix Superficial Defects
This is probably the easiest way to boost your property’s value. If the walls are dirty or the paint is peeling away, give them a clean and a fresh coat to reinvigorate the space.
Mouldy sealant in kitchens and bathrooms can be particularly off-putting to prospective tenants. Not only is damp bad for their health, but it can also be a pain to keep on top of. And, of course, have a declutter if you’re letting a furnished property – this will give it a more attractive appearance.
Optimise Space
It’s important to make your property feel as spacious as possible – tenants understandably want to feel that they are getting their money’s worth.
Incorporating sufficient storage is extremely important in rental properties. Putting up shelves in rooms with high ceilings provides this and does not take away any floor space.
Fitted wardrobes are great for making full use of space – particularly in rooms that have an awkward shape. This saves your tenant from having to invest in expensive furniture that they’ll then need to fit in another property if they decided to move on.
Energy-efficient Upgrades
From April 2025, the minimum EPC rating of domestic rental properties is set to be increased from E to C. It’s a good idea to start working towards that if you want to remain in the market.
There’s no escaping the fact that this is likely to require substantial investment. While the installation of double or triple-glazed windows and smart technology to control the central heating are a good start, more significant work will be required.
You could consider having solar panels installed or replacing your boiler with an air-source heat pump. Loft and cavity wall insulation will also be extremely helpful as they enable the property to retain more heat.
With energy prices at extremely high levels, a greener home will no doubt be enticing for prospective tenants.
Upgrade the Garden
Everyone developed a greater appreciation for their outside space when the coronavirus pandemic sent the UK into lockdown. Making your property’s garden an enticing place to be can certainly push up the value.
The key is to keep everything low maintenance. If it’s not, the garden could quickly become overgrown and leave you needing to redo the work should you need to find new tenants.
Young people are less likely to spend time tending to the garden, so if you’re targeting young professionals then hardier plants and fences rather than hedges are the way to go. They’ll no doubt appreciate outside seating for entertaining too.
Families, meanwhile, will value a grassy area (make sure they have a lawnmower available or use an artificial turf), a patio and storage for bicycles, paddling pools, etc.
In conclusion
The year ahead can be whatever you make of it. You can opt to sell up and avoid the potential strain that could be placed on your finances or look to capitalise on the high demand and send your rental yield skyrocketing.
PUBLISHED BY THE GAURDIAN ON LINE 7TH DECEMBER 2021 https://www.theguardian.com/business/2021/dec/07/race-for-space-could-be-over-as-flat-prices-rise-more-than-houses As people shunned city centre work and life during lockdowns, and the government introduced a stamp duty holiday, demand for country living – or at least a spare room – grew. But in its latest snapshot of the housing market, the mortgage lender said there were signs this trend...
May 13, 2020 UK Housing Market Over the past few weeks, there has been a surge in new properties listed for sale as well as plans for future viewings. Now with news of a housing market revival, this trend is likely to keep climbing. Property listings on Rightmove and Zoopla hit an all-time low between 1st and 17th April, with just 47 new listings coming to market. This is according to figures compiled by Brief Your Market loo...
Published online 23rd April 2020 by Eleanor Harvey of BuyAssociation The UK is still in lockdown, but the country’s rental accommodation is still in demand. Here’s what’s been happening in the UK rental market. Both tenants and landlords alike will be keen to know what the future holds in the country’s rental market. Due to COVID-19, the UK’s lockdown is expected to continue for several more weeks, if not longer. After this, it is unclear ...
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