PRS reforms will put landlord retirements in jeopardy, new report highlights

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The potential folly of the Government’s decision to bear down on the private rented sector once more is highlighted by new research from estate agency Savills.

It reveals that over half of private landlords view their properties as a pension pot, and that these homes produce an estimated net income of £10.1 billion a year for nearly half a million households over the age of 65 (in England).

Rented property is also due to become an increasingly important income for those aged from 55 to 65 years old as the landlord population ages in the coming years, with 11% expecting income from their portfolio to be their biggest income.

The data which comes both from Savills research and official figures, suggests that the current Government is playing with fire as it prepares its Renters Reform Bill.

Renters reform

The proposed changes, which include significant alterations to tenancy conditions and evictions and increased regulation largely in renters’ rather than landlords’, are likely to concern millions of landlords expecting to rely on a PRS property for their retirement income.

“Buy-to-let investment has been an attractive way to supplement or build up retirement savings over the past 20 years, especially for the self-employed” says Lucian Cook (pictured), head of residential research at Savills. 

“Many are proclaiming that the golden age of buy-to-let investment is over because of increased regulatory requirements, a higher tax burden and the prospect of further increases in the cost of debt.

“But it is set to play an increasingly important role in providing pension income, with many landlords, who were at the forefront of the buy-to-let explosion of the noughties, now hitting or approaching retirement age”.

Read more: Is Government legislation killing buy-to-let, asks Tom Entwistle.

View Full Article: PRS reforms will put landlord retirements in jeopardy, new report highlights

LATEST: Letting agents report 10% of landlords leaving the sector

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Nearly a third of letting agents have seen 10% of their landlords quit the sector during the last year.

New findings from Goodlord and Vouch’s upcoming State of the Lettings Industry report reveal that 28% have lost a tenth of their landlords, while 67% expect more to leave in the coming year.

Agents have expressed concern about the state of the economy, with 80% worried about the impact of the upcoming recession and the cost-of-living crisis on the PRS. Many are predicting a rise in arrears, with 35% of agents expecting it to have a “major and negative” impact on tenants.

The report shows that two-thirds of agents (65%) struggled with a lack of stock in the past year. However, despite these fears being likely to dent confidence going forward, only 26% are currently pessimistic about the future of the lettings industry, while 43% are still feeling optimistic.

Serious concern

Tom Mundy, COO at Goodlord (pictured), says: “As the initial findings show, there are a range of things causing serious concern across the sector.

“Whilst the pace of lettings remains intense and the market buoyant, various macroeconomic and regulatory factors are cause for concern, although these are yet to materially dent optimism amongst agents, landlords and tenants.”

The full report, which includes the views of more than 2,600 agents, landlords and tenants, is set to be released on 13th September.

View Full Article: LATEST: Letting agents report 10% of landlords leaving the sector

London rental properties letting within minutes

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One lettings agency in London says that tenant demand is so great in the capital for rental properties that many homes are being let within minutes of becoming available.

Benham and Reeves point to demand created by the return of professionals and international students

View Full Article: London rental properties letting within minutes

Campaign to start protecting landlords?

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Hi Property118 readers, I am writing to request if you could share my petition  – on change.org >> Click Here

I know many landlords registered may agree with me.

National Tenants Database to tackle rogue tenants costing landlords thousands of pounds

“Campaign to start to protect landlords

View Full Article: Campaign to start protecting landlords?

5-year electrical safety tests for PRS?

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Hi. I have four properties and yes all with recent electrical safety certificates. The solicitors have advised that the certificates do not have a 5-year valid period stating only the date that the certificate was issued/certified.

I think they are mixed up.

View Full Article: 5-year electrical safety tests for PRS?

Landlord blames letting agent and council for £11,000 Rent Repayment Order

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A landlord who blamed a council for not telling her about its additional licensing scheme has managed to get her rent repayment order cut in half.

Kerry Prevost-Cooper told a First Tier Property Tribunal that Tower Hamlets Council did not advertise the designation or notify her of the change. She also pointed the finger at the OpenRent platform for not keeping her informed.

Councils are often criticised for not advertising schemes thoroughly, particularly to those landlords outside the area, although in this case Tower Hamlets insisted it had previously sent out leaflets and contacted known landlords.

However, Prevost-Cooper convinced a tribunal judge, who reduced the RRO for not licensing the house in Clearbrook Way (main picture) from £22,173 to £11,086.

‘Needed to by psychic’

The landlord told the court that she had no idea that there were, or could be, separate local requirements or that the property could be an HMO in these circumstances.

She suggested landlords needed to be psychic if local authorities failed in their duty. Although she works for a local authority, when asked whether she should have been proactive to find out local requirements, she said she wouldn’t have known how.

The tribunal ruled that there were various ways to take reasonable steps to consult those who were likely to be affected by licensing, and it did not accept that the mere fact a local authority had failed to write personally to every single landlord who might be affected put it in breach of its duties.

Although Prevost-Cooper’s ignorance was not a reasonable excuse and she should have researched the legal requirements relating to letting the property, it acknowledged the offence wasn’t deliberate.

Read more about RROs.

View Full Article: Landlord blames letting agent and council for £11,000 Rent Repayment Order