Build-to-rent growth falters as economic downturn and labour shortages bite

admin    Uncategorized     agents

Economic headwinds facing the construction industry put the brakes on the build-to-rent sector last year.

Build cost inflation and labour shortages meant that it only grew by 14% in 2022 – adding up to 242,548 homes in planning, under construction or completed – compared to a long-term annual average growth of 28%.

According to the British Property Federation, a slowdown in BTR construction was pronounced in Q4, while the wider economic uncertainty meant construction starts of 15,600 homes was 24% lower than the same period in 2021.

However, it reports that despite these challenges, the BTR pipeline remains robust; expansion of the sector is further evidenced by the fact 180 local authorities have now completed BTR homes, or have units in the pipeline, up 29% on Q4 2021.

Doubled

Investment in the BTR sector almost doubled during 2022, helping to fill the gap left by exiting residential landlords, according to research which showed that £1.17 billion was invested in Q3, up from the £600 million in the same period in 2021. Legal & General and John Lewis are just two of the big names who have signed deals on developments.

Ian Fletcher (pictured), the federation’s director of policy, says inflation and an uncertain economic backdrop makes it more difficult to deliver properties, and warns that government must be careful not to stymie the sector’s progress.

“The watering down of national housebuilding targets may mean there is less urgency around allocating land for residential development, and there is already evidence that the rent cap introduced in Scotland, and being debated in Bristol, is deterring investment,” says Fletcher.

“The BTR sector has a major role to play in urban regeneration and levelling up and we cannot take its success for granted.”

Pic credit: Mast Quay BTR development in Woolwich, London.

View Full Article: Build-to-rent growth falters as economic downturn and labour shortages bite

How to Get a 12 Week Deposit

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We’ve heard it all too often, you come to the end of the tenancy and the rent arrears and dilapidations exceed the deposit held.  You’ve now got to claim the full deposit through the ADR procedure and you are either left out of pocket or have to pursue the tenant through the courts for the balance.

View Full Article: How to Get a 12 Week Deposit

Is it time to ditch the spreadsheet?

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Spreadsheets. They’ve been around since 1979 and have served the property industry well since their inception.

However, with legislation like Making Tax Digital coming into play in 2026, we’re seeing Landlords slowly transition from using outdated equipment to more modern and purpose built solutions like Property Management Software.

So let’s talk about your spreadsheet and the reasons why you should probably consider leaving it in the past.

1 – They can be overwritten, lost or even corrupted

When managing spreadsheets, you can easily become mixed up with versions which leaves you vulnerable to accidentally overwriting critical information.

Spreadsheets have also been known to randomly corrupt, meaning vital data can be wiped out in a matter of minutes leaving you at square one.

Spreadsheets offer limited or no failsafes should your files fall victim to corruption or overwriting, prospectively costing you thousands of pounds worth of time and missing rental income.

2 – Feature limitations

Due to the standalone nature and feature limitations of apps like Microsoft Excel or Google Sheets, some Landlords may find that they have to invest in other products or software just to get the job done.

You could be spending more and more money on apps which don’t communicate with one another, for example, we recently spoke to Tom Holliday (TWH Homes) who was using a collaboration of around 5 or 6 products for:

• Task Management
• Rental Tracking
• Accounting/Finance
• Record Keeping
• Document Storage

The problem Tom faced was that his bills were slowly racking up thanks to expensive subscriptions, as well as having to duplicate data input across different apps too.

Tom was able to consolidate multiple products into a single product called Alphaletz.

To learn more about Tom’s story, click here.

3 – Lack of portability

Another major flaw of spreadsheet software is that it often means you have to open it on a desktop or laptop to achieve full functionality.

This could be a problem of course for Landlords who find themselves on the move quite often.

Portfolio visibility is crucial more so now than ever before, due to the rising costs that Landlords have to face.

Most Landlord Apps have mobile applications by default, allowing you to keep up to date no matter where you are.

4 – They’re not easy to hand over

Most spreadsheets are built by the user in a way that only they understand and can become quite complex when more and more data is added.

A fair portion of Landlords hope to hand over their investment to their children or family members when they’re no longer around.

Not only that, some Landlords find themselves bogged down with the amount of work involved in property management, however, the idea of introducing and walking them through a spreadsheet you’ve built can be quite overwhelming.

Creating a system that can be easily shared is beneficial as it makes it easier to share access with those who might need it.

5 – They aren’t secure

Unless your spreadsheet is password protected and/or encrypted, anyone who has unauthorised access to your desktop, laptop or tablet can just waltz into a sea of confidential records, which is far from ideal.

Most property management apps are cloud-based and are held under a high level of data protection scrutiny, so they’re forced to ensure that your data is held in accordance with security standards.

Meaning that not only does moving away from a spreadsheet afford you extra time, but extra piece of mind as well!

6 – Making Tax Digital 2026

HMRC has confirmed that spreadsheets will be compliant with Making Tax Digital 2026 guidelines, however, spreadsheets will not (as a standalone product) integrate with HMRC systems and make the process any easier.

Making Tax Digital 2026 is rapidly approaching, and for those who seek to make life easier when the regulations tighten, you might want to go with a product that streamlines your tax processes.

LandlordZONE’s Exclusive Property Management Software Partner

If you’re looking for a property management solution, let us introduce you to Alphaletz.

Alphaletz is an all in one modern solution for Landlords and is the perfect platform to help manage your properties effectively.

With Alphaletz, you can efficiently manage compliance, track rental income & arrears, easily reconcile income & expenses and ultimately simplify the way your properties are managed.

Try Alphaletz free today or book a free product demo to see how it works.

View Full Article: Is it time to ditch the spreadsheet?

Property118 confirmed as the Official Media Partner for the Property Investors Awards 2023

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The Property Investors Awards, organised by the Property Investors Bureau , returned to hosting a physical ceremony for its 10th year anniversary. The illustrious event took place at the spectacular Marriott Grosvenor Square Hotel in Mayfair consisting of a wonderful evening of fine dining and entertainment to announce the 2022 Winners.

View Full Article: Property118 confirmed as the Official Media Partner for the Property Investors Awards 2023

Majority of landlords do not plan to sell properties

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Seven out of 10 buy-to-let landlords do not intend to sell any of their properties in the next 12 months, according to a new survey.

The lender Landbay has revealed that landlords with smaller property portfolios of between one and three (78%) and four and 10 rentals (76%) are least likely to sell their properties.

View Full Article: Majority of landlords do not plan to sell properties

Hefty increase in Maintenance Charges

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Hi, I wonder if someone could advise me on the very hefty increase in maintenance charges with very little discussion on affordability for the residents.
I own a purpose built flat in a seafront block and towards the end of last year the residents were notified that the maintenance charges would increase from the already high rate of £3800/annum ( it does include hot water and heating for part of the year) by another £1800/annum which is part of their 10 year plan!

View Full Article: Hefty increase in Maintenance Charges

Ending garage rental?

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Hello, I let a stand-alone garage to an individual and am trying to end the agreement and get the garage back but have been unable to contact him. I gave him notice via email but he did not reply.

Then I phoned the number I have for him but it sounded like it was ringing abroad.

View Full Article: Ending garage rental?

House price falls create opportunities for landlord investors

admin    Uncategorized     agents

Falling house prices and rising mortgage rates, coupled with a cost of living crisis, which inevitably results in higher incidences of rental arrears, are scaring off potential new investors in buy-to-let.

But new investments in the right locations could be an astute move for new investors at this time. The a dilemma that landlords are in right now is, is now the right time or is it better to wait and see if prices fall further?

The start of a house price fall

Data produced by the Land Registry show that house prices started to stall last autumn, with mortgage approvals falling by around 4 per cent since September, an annual rate of fall of around 7 per cent.

What’s different for landlords, as opposed to home buyers, is the level of rental demand and the growth in rent prices. The fact is that government policy over the last ten years or so has been so discouraging to buy-to-let landlords that many landlords are selling up, creating a major undersupply of rentals.

Frustrated landlords and buying opportunities

Adversity creates opportunities for those who are savvy and nimble investors, those who are able to pick up the right bargains in the right locations, perhaps from overstretched (over borrowed) and frustrated landlords who have had enough?

Many existing landlords are in a bind: their financial affairs are not structured optimally to avoid the high taxes the government has imposed, their properties are in need of expensive upgrades to meet the upcoming new environmental standards, which could mean many thousands needing to be spent, and they may be over borrowed to boot, just as interest rates are rising, plus they are fearful of impending new tenant friendly legislation.

The right financial structure

New investors can structure their financial affairs to avoid the worst of the tax traps, working through a limited company for example; they can budget for upgrades if they purchase a property at the right price, or even buy new, and with the right approach any changes in legislation can be dealt with – after all the Government needs good landlords more that ever at this time.

The proviso to all of this is buying the right property in the right location, one which guarantees that all important factor in property investing, tenant demand. In some locations right now, tenants are queuing to rent, in these locations properties could be let 20 times over just days after coming onto the market.

So, deep research, followed by careful selection of the location will almost guarantee you owning a property that will bring long-term sustainable profits. Interest rates will come down and house prices will stabilise, given time, and prices will start to rise again, all this in the short to medium term, perhaps 2 to 5 years.

Those with funds will benefit

If you are one of the lucky ones with funds of your own to invest, then you can take advantage of the situation right now, you’re in a strong position as a counter market-cycle investor. The higher the level of enquiry you can provide in your bricks and mortar investment, the less pressure you are under to pay high mortgage interest each month, and the easier it is to weather the storm, and see the long-term higher returns and profits.

There’s only so many potential property investors with the necessary funds funds available to invest right now. That puts anyone with a cash sale proposition (cash with loan facilities arranged) who can move fast, able to negotiate and snap up a bargain.

Capital gains tax relief

It’s perhaps late in the day in early February to catch those landlords wanting to exit the fray in time to catch the capital gains tax benefit before the change in April – when the tax fee allowance drops from £12,300 down to £6,000 per person – but it’s still theoretically possible with the will of the solicitors involved to get the deal over the line in time. That’s a great big incentive for some landlords to sell.

The end of buy-to-let?

Many are forecasting the end of buy-to-let and have been for some years, headlines like “Good Riddance to Buy to Let” in the New Statesman recently don’t help. But seriously, what’s the alternative? Can government suddenly magic up 20,000 new homes, because that’s probably the figure that’s needed now to bring supply and demand into equilibrium in the UK.

Twenty major cities

Recent research carried out by Colliers International on behalf of The Daily Telegraph analysed the rental markets in 20 cities across the UK, cities including Cambridge, Oxford, London, Glasgow and Edinburgh. The study looked at factors including house prices and rental yields, economic performance, quality of life, educational levels and the environment.

The study found that a city like Cambridge, though prices were higher than the average, offered above average earnings potential in a location where demand is high and tenants are likely to be in a position to continue to afford rising rent prices into the future. Here you can be confident about your cash-flow projections into the future.

Rental demand in Cambridge along with some of the other major cities continues to outstrip supply, especially where leading universities and high tech jobs are available. Theses locations offer landlords a steady market for new tenants and a log-term income flow where workers are taking up well-paid jobs around academic institutions, with nearby tech industries.

Alex Bloxham, of Bidwells estate agents in Cambridge, told The daily Telegraph:

“They’re not typically great yields but the capital growth is what you’re looking for, as well as the consistency of rent you’re getting. The void periods are very minimal and the demographic of tenants is very good.”

The growing populations around these popular cities means there’s a shortage of the right rentals and house building is failing to keep up. Over a ten year period landlords have seen their rental property values increase by around 70pc in today’s values says Bloxham.

Following Cambridge, Edinburgh, Glasgow, Oxford and London were seen as locations with the highest potential for landlord investors.

View Full Article: House price falls create opportunities for landlord investors

Landlords warned over rogue plumber operating in NW of England

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A leading ethical repair firm has shamed a rogue plumber who charged an 85-year-old woman £1,500 to repair a water pipe.

James Anderson (pictured), who runs Depher (disability and elderly plumbing and heating emergency repair) in Burnley, posted on Twitter that the plumber, who works for private landlords and letting agents in the area, charged the exorbitant fee but still left the elderly woman with a leaking pipe.

“This one has angered me big time – a rogue plumber!” tweeted Anderson. “Absolutely disgraceful. We will deal with this and then deal with him. He has lost five customers that I have informed, all landlords and estate agents.”

Anderson repaired the pipe and after discovering that the woman is a carer for her disabled daughter, decided she needed a boiler conversion which he will fit free of charge.

Issue

Burnley Council says that its housing team is interested in looking into the issue and is keen to get details of the rogue plumber.

Anderson set up his community initiative company in 2017 to help elderly, disabled, vulnerable and low-income tenants and householders who were suffering due to poor quality heating and plumbing, that was ineffective and, in many cases, potentially life-threatening.

It relies on public donations to cover the cost of labour and materials, allowing it to provide free services during winter months and discounted services at other times including urgent emergency works such as repairing gas leaks, installing new boilers and heating systems.

It works with 67 subcontractors and thousands of volunteers across the country.

View Full Article: Landlords warned over rogue plumber operating in NW of England

Generation Rent activist now working for DLUHC as PRS advisor

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A former Generation Rent campaigner is now working as an advisor shaping private rented sector policy at the Department for Levelling Up, Housing and Communities.

Caitlin Wilkinson – policy advisor for the private rented sector – was policy and public affairs manager at the campaigning group for two years and formerly responsible for developing Generation Rent’s policy proposals around safer housing.

She joined the group after volunteering on the campaign to end Section 21 evictions and previously worked at youth homelessness charity Centrepoint.

There is evidently a cross-over between the campaigning group and public office as its director Baroness Alicia Kennedy was previously a Labour peer.

Step down

However, she is due to step down from her role and Generation Rent is recruiting for her replacement which it says presents, “an exciting opportunity to lead a dynamic and committed team to radically improve the lives of Britain’s private renters at a moment of huge political opportunity”.

The successful candidate – on a £57,000 salary – will be expected to lead the organisation and strengthen its position as “a leading participant in the housing debate”. 

This winter it has been calling for stronger action from the government to raise energy efficiency standards in private rented homes, ensure grants are available for fuel poor households and supporting tenants to ask their landlords for improvements.

It has also been campaigning for a rent freeze and says that thanks to its collective action, the government has promised to scrap Section 21.

View Full Article: Generation Rent activist now working for DLUHC as PRS advisor