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Author: Sorcha Dugmore

Housing market predictions for Summer 2023

by Sorcha DugmorePosted on

The UK housing market has been subject to instability and lack of clarity for Landlords and tenants over the past few years, but are we heading towards a more stable future? 

This month, recent data from HMRC showed that property sales fell by 19% in March, a somewhat expected trend which we also saw hitting the market in March 2022. Additionally, HMRC stated that the total transactions this year have been “significantly lower” than the previous year, but noted that this activity was boosted by a boost in demand and the stamp duty holiday.

Despite the annual fall, it looks like there are some silver linings. This year we have seen a month-on-month uptick of 1%, breaking the trend of declines seen in previous months, such as the 4% monthly decline in February and a 3% dip between December and January.

The head of lender relationships at Legal and General Mortgage Club, Danny Belton, stated it was “positive to see an uptick in transactions from February to March kickstarting a strong spring selling season”.

It isn’t possible to accurately predict the state of the housing market going forward, and there are still many obstacles for landlords to overcome; however it seems like there might be some positive outlook. According to a recent report by Zoopla, the UK property market is currently experiencing its strongest sales market in a decade. 

Landlords back minimum housing standards

by Sorcha DugmorePosted on

Landlords across the UK are showing their support for policies ensuring minimum housing standards, according to a new survey conducted by the Paragon Banking Group. The results of the survey show that the majority of Landlords believe that all rental properties should meet a set of minimum standards to ensure safe and comfortable living conditions for tenants.

The standard would include requirements for heating, insulation, and ventilation, as well as basic amenities such as running water and working appliances.

This marks a significant shift in attitude among Landlords, who have previously been resistant to government regulations and requirements for rental properties. Showing that they clearly recognise the importance of providing safe and comfortable homes for tenants.

Commenting on the survey results, John Heron, managing director of mortgages at Paragon, said: “It’s clear from our research that the majority of landlords are supportive of minimum standards for rental properties, and this is a positive step for the sector as a whole.”

Heron added that the survey results reflect a growing recognition among Landlords that good quality housing is essential for the success of the private rented sector. He also noted that many Landlords are already investing in their properties to meet or exceed minimum standards.

The findings of the survey have been welcomed by housing campaigners, who have long called for greater regulation of the private rented sector. The government is currently considering proposals for a new minimum standard for rental properties, and the survey results may provide additional support for these efforts.

Overall, the survey suggests that Landlords are increasingly recognising their responsibility to provide safe and comfortable homes for tenants. By supporting minimum housing standards, Landlords can help to improve the reputation of the private rented sector and ensure that tenants have access to high-quality rental properties.

Letting agents help to navigate red tape

by Sorcha DugmorePosted on

Landlords have been advised by a PropTech engineer to seek guidance from letting agents to navigate red tape.

The rental market has undergone many changes in recent years, causing some lack of clarity amongst Landlords. With so much to keep track of, it can be challenging to stay up-to-date with the latest changes alone, that’s why letting agents are a valuable resource for Landlords who want to protect their properties and avoid penalties.

Neil Cobbald, Managing Director of PayProp UK, stated “No matter which party wins the next election, reforming the private rental sector will be high on their agenda. Proposals to reform the PRS and introduce new rules and regulations cover everything from energy efficiency to tax returns to anti-money laundering measures”.

The long-awaited renters reform bill proposes the removal of section 21 evictions. If the ban is implemented, Landlords will need to have a valid reason for evicting tenants, such as rent arrears or antisocial behaviour. Additionally, the renters reform bill suggests an abolition of letting fees and an introduction of a new lifetime deposit scheme. 

These changes are expected to improve transparency and affordability for renters, but they will also place additional responsibilities on Landlords to manage deposits and rental payments.

Alongside new regulations being implemented across the country to ensure the safety and energy efficiency of rentals, Landlords must ensure that they are up-to-date with new laws to avoid large penalties from non-compliance. 

Working alongside a letting agent will ease these concerns and provide Landlords with the peace of mind that their rentals are complying with new laws. 

To deal with upcoming changes, Cobbold urged “Letting agents and Landlords make a perfect match. The agents have the professional and managerial expertise to get the optimal return from the Landlords’ valuable assets, ensure their tenants have a great rental experience and protect them from the penalties of non-compliance.”

EPC regulations to be delayed until 2025

by Sorcha DugmorePosted on

Technical difficulties in the UK government’s Energy Performance Certificate (EPC) database have led to a delay in implementing new regulations for landlords in England. As a result, Landlords will not be required to make certain energy-efficient improvements to their rental properties until 2025 at the earliest. 

Why are EPC regulations becoming stricter? 

According to a recent survey, 90% of tenants believe that energy-efficient homes are essential, and 82% would be willing to pay higher rent for such properties. Additionally, poorly insulated and inefficient properties can lead to 21% higher energy bills, on average, for tenants. Furthermore, the carbon footprint of a typical rental property is 19% higher than that of an owner-occupied home.

Despite the delay in new EPC regulations, Landlords should take steps to improve the energy efficiency of their rental properties as soon as possible. Making energy-efficient upgrades can save an average of £350 a year on energy bills, and upgrading from an EPC rating of D or E to an A or B can add an average of £16,000 to a property’s value.

The most common ways to improve a property’s EPC rating include:

  • Adding (or improving) loft and wall insulation
  • Replacing older boilers for more sustainable alternatives. (This may also save you from costly boiler repairs). 
  • Installing solar panels or alternative methods of creating sustainable energy within the rental homes. 
  • Ensure that glass in your properties is double glazed to improve energy efficiency. 

It is vital to note that the delay in implementing new EPC regulations is a significant setback in the UK’s efforts to achieve its goal of net-zero emissions by 2050. However, Landlords can still make a significant impact by taking action to improve the energy efficiency of their properties. By doing so, they can not only save money and increase the value of their property but also improve the quality of life for their tenants.

Why Landlords are holding onto their investments – A positive outlook for Landlords in the UK Housing Market

by Sorcha DugmorePosted on

The UK property market has been unpredictable for some time now, it’s important for Landlords to carefully consider the pros and cons of selling up versus holding onto their investments. While there are certainly challenges to be faced in the current housing market, there are also reasons to be optimistic about the future.

The current housing crisis in the UK has been a highly talked about topic through the property investor communities over the last year. The crisis, caused by a lack of Landlords and an increasing demand for rentals, has caused significant impact to both property investors and individuals seeking suitable rental accommodation. 

The Guardian reported on the top challenges faced by current Landlords and buy-to-let investors:

  • Recent stamp duty increases have made buying new properties more expensive, reducing the amount of new landlords entering the market
  • The phased reduction of mortgage interest tax relief has reduced landlords’ profits, making it less financially viable to continue renting out properties
  • Proposed changes to the eviction process (For example, abolishing section 21 evictions) could mean that landlords may have to give tenants longer notice before evicting them

However, despite these challenges Landlords are holding onto their property investments and here’s why:

  • Yields – Rental yields in the UK are still high compared to other countries, providing a strong income stream for Landlords. Landlords have justifiable reason to raise rental prices in the current market, maintaining profits in the short term and potentially leading to high-yields in the long-term when financial strains ease again.
  • Demand – The demand for rental properties is likely to remain high, as many people continue to struggle to get onto the property ladder due to rising house prices. This creates a pool of tenants willing to pay higher monthly rent, and provides landlords with a wider choice of higher-quality tenants who are less likely to miss rental payments.
  • Long-term investment – While the market currently presents some concerning challenges and instability, it’s important to remember that it will stabilise again. When that happens, Landlords who hold onto their investments might benefit from increased yields in the future. 

As a Landlord, you should ensure that you are well-informed about changes to the rental landscape in the UK and how your investments will be affected. It’s best to take time to properly research the potential implications the changes have on your investments and weigh up the risks vs benefits. Whilst it is tempting to sell up when there are challenges in the market, impulse decisions can lead to large losses and potentially missing out on opportunities in the future. 

New ruling gives Landlords more power over evictions

by Sorcha DugmorePosted on

According to a recent announcement, Landlords will be given the power to evict unruly tenants, despite the proposed abolition of the section 21 ruling. 

There has been concern between Landlords following the discussion to get rid of the section 21 ruling, with Landlords concerned that they will have less control over their properties and not be able to evict tenants who breach their tenancy agreement.

Section 21 recap  

In 2019, the UK government announced that Landlords would no longer be able to evict tenants without a legitimate reason under the new Renters Reform Bill. This decision was met with significant opposition from landlords, with 84% of them against the ruling, according to a National Landlords Association survey. 

Landlords were concerned that this would make it more difficult to deal with tenants who were not paying rent, causing damage to the property, or violating the terms of their tenancy agreement.

Good news for Landlords 

The good news is that Landlords will be given more power to evict tenants under Section 8 .

The proposal is that this will be achieved through the introduction of a new model tenancy agreement, which could allow Landlords to evict tenants without providing a reason after four months of the tenancy. 

This means that Landlords will be able to serve notice on tenants more easily and quickly, ensuring that their property is protected.

Eviction restrictions

This power to evict will come with restrictions; Landlords will not be able to use this power to evict tenants who have raised concerns about the condition of the property or have made a complaint about the landlord. 

Additionally, Landlords will still need to follow the procedure for eviction, including providing the tenant with the correct notice and obtaining a court order.

The introduction of this power to evict is positive news for Landlords. This will give them more control over their properties and allow them to take action when necessary. However, there are some potential negatives to consider. Some tenants may be concerned that this power could be abused by Landlords and lead to unfair evictions. It will be important to ensure that the correct procedures are followed and that tenants are treated fairly.

How to protect revenue during the rental crisis

by Sorcha DugmorePosted on

It’s no secret that the UK is moving towards a serious supply and demand crisis. In addition to the growing cost of living and energy prices, what can landlords do to protect their revenues?

  1. Tenant Screening: One of the most effective ways for landlords to protect rental income is by carefully screening tenants by conducting credit checks, verifying employment, and checking references. By selecting tenants who have a stable income and good rental history, landlords can reduce the risk of rent arrears and therefore protect their income.
  2. Being informed: Landlords must stay up to date with all relevant regulations and guidelines. Including significant policy changes, such as The Renter’s Reform Bill. Understanding and properly preparing for policy changes will help landlords to avoid potentially large fines for non compliance.
  3. Rental insurance: Rental insurance can provide an extra layer of protection for landlords in the event of rent arrears or property damage.
  4. Re-evaluate rental prices: With rising costs, it is only reasonable for landlords to raise the monthly rent of their private lettings. Landlords are responsible for ensuring that rent increases are carried out legally by following Government guidelines and ensuring that rental increases comply with their current tenant contracts.
  5. Reviewing Investments: Landlords should schedule regular intervals to review their property portfolio and ensure that their investments are working as cost-effectively as possible. The profitability of an investment can change drastically depending on location demand and property type, landlords should continually be reviewing their existing investments and changing their strategy to meet the current market needs.

This year will be a tough period financially for UK landlords, however by staying informed and planning ahead, landlords will be able to protect their investments and consequently their profits. 

Renters’ Reform Bill: Everything you need to know before May

by Sorcha DugmorePosted on

Announced in June 2022, the Renter’s Reform Bill outlines the Government’s plans to build a fairer private rental sector in the UK. Over the past year, landlords have been following updates relating to this bill, preparing for its live date. Since we are now getting close to the bill due-date (May 2023), this article will summarise everything you need to know should the bill go ahead. 

The end of Section 21 notices

The most significant and talked about change caused by the bill is the end of Section 21 notices. 

Currently, Section 21 notices allow landlords to evict tenants without providing a reason. Under the proposed new rules, landlords will need to provide a valid reason for evicting tenants, such as rent arrears or anti-social behavior. The changes are designed to provide tenants with greater protection and reduce the number of unjust evictions.

Changes to Section 8 notices

Landlords will still be able to use Section 8 notices to evict tenants for specific reasons. However, the grounds for eviction may be limited, and the process time-consuming. For example, landlords will need to give tenants six months’ notice before they can issue a Section 8 notice for rent arrears.

Eviction reasons for a Section 8 notice must be one of the following: 

  • If a tenant has rent arrears
  • If the tenant damages the property
  • If the tenant is causing a nuisance to the neighbours

Security of tenure

The renter’s reform bill will provide tenants with greater security of tenure. As per the plans outlined in the bill, the minimum notice period for tenants to leave a property will be increased from two months to six months, giving tenants more time to find alternative accommodation. 

Additionally, landlords will need to provide tenants with a minimum of three years’ security of tenure before they can end a tenancy.

Preparing for the changes in May 

To prepare for the upcoming changes, landlords would need to review their policies and procedures to ensure they comply with the new rules. This includes ensuring that all tenancy agreements are up to date and providing tenants with the correct documentation.

Working with a letting agent can help landlords to navigate the new rules with ease and ensure that they are properly prepared for all of the new policies which will be coming out of the bill once it is live in May 2023.

Why Landlords can’t ignore Right To Rent Policies

by Sorcha DugmorePosted on

New research from the Home Office has identified that landlords without letting agents are the least likely to understand their legal obligations when onboarding new tenants through the Right to Rent Scheme (RTR).

What is the Right to Rent policy?

The right to rent policy, which has been in place since 2016 requires landlords to check that their tenants have the legal right to rent in the UK before allowing them to move into their property. Failure to comply with the policy can lead to serious consequences, both financial and legal.

When do these checks need to take place?

Right to Rent checks have to be conducted before the tenancy starts. For Tenants who are only allowed to stay in the UK for a limited time, you need to do the check in the 28 days before the start of the tenancy.

How to conduct the check:
Landlords need to check that their tenant’s photograph, name and address match and that the document hasn’t been tampered with. Landlords are responsible for taking copies of these documents and keeping them on file for at least 12 months after the end of the tenancy. 


What are the consequences of not checking your tenants right the rent? 

If a landlord fails to carry out the necessary checks, they may face a civil penalty of up to £3,000 per tenant. This penalty can be imposed on landlords who rent out a property without carrying out the necessary checks, or who knowingly rent to tenants who do not have the legal right to rent in the UK. In severe cases, this can result in a custodial sentence of up to five years.

Whilst the Right to Rent policies may seem difficult to navigate and have potentially severe consequences, working with a letting agent can provide landlords with the peace of mind that they have followed the correct procedure for ensuring that their tenants are legally allowed to stay in their property, and therefore avoiding potentially large penalties.