How Mortgage Valuations Work for Buy-To-Let Properties

admin    Uncategorized     agents

Property118

How Mortgage Valuations Work for Buy-To-Let Properties

When applying for a buy-to-let mortgage, one of the most important steps is the valuation. Lenders need to know both the market value of the property and the expected rental income. In 2026, with affordability tighter and specialist properties more common, valuations are under greater scrutiny than ever. Understanding how valuations work helps landlords avoid surprises and prepare stronger applications.

The Role of Valuations in Buy-To-Let Lending

A valuation serves two purposes for lenders:

• Market value check – ensures the property is worth the price paid or remortgage amount requested.
• Rental assessment – confirms rental income assumptions for affordability testing.

If either the property value or the rental assessment comes in lower than expected, the loan amount may be reduced or the application declined.

Types of Valuation in 2026

Lenders may use different valuation methods depending on the case:

• Desktop or AVM (Automated Valuation Model) – quick, low-cost checks used for low-risk cases and product transfers.
• Drive-by valuation – surveyor views the property externally to verify condition and comparables.
• Full internal inspection – detailed inspection including rental comparables and tenancy information.
• Commercial-style valuation – used for larger HMOs and semi-commercial properties, often based on income rather than bricks-and-mortar.

How Rental Income Is Assessed

Surveyors assess rent by looking at comparable local properties and current tenancy agreements. They may take a conservative view, particularly if the property has unusual features or higher-than-average rents.

Example: A landlord believes a flat rents for £1,200, but the valuer uses £1,100 based on comparables. At a 145% stress test, this reduction could mean borrowing £15,000 less.

Valuations for HMOs and Holiday Lets

Specialist properties are valued differently:

• Small HMOs (up to 6 tenants) – often valued as standard houses, with rent assessed per room.
• Larger HMOs – usually valued on a commercial basis, using rental income as the driver of value.
• Holiday lets – income projections may be based on average seasonal occupancy, not peak rents.

This means landlords should prepare realistic income evidence and be ready for cautious assumptions.

Case Study: Valuation Shortfall

Scenario: A landlord applied to remortgage a three-bed house at £250,000, expecting rent of £1,200 per month. The valuer reported £240,000 market value and rent of £1,100.

Outcome: The lower figures reduced the maximum loan by £20,000. The landlord had to inject extra funds to complete the refinance.

Lesson: Always allow for cautious valuations when planning borrowing.

How Landlords Can Prepare for Valuations

• Provide ASTs and rental statements to support declared income.
• Ensure the property is presentable and compliant with safety regulations.
• Research local comparables to anticipate valuer assumptions.
• Have contingency plans if values or rents come in lower than expected.
• Use brokers who can challenge valuations when appropriate.

Final Thoughts

Mortgage valuations are more than just a box-ticking exercise – they directly shape borrowing capacity. By understanding how lenders and valuers approach market value and rental income, landlords can prepare better, avoid disappointment, and build more resilient refinancing strategies in 2026.

Speak to Our Sponsor

Our sponsor helps landlords prepare for valuations, challenge incorrect assumptions and structure applications around realistic lender expectations.

/* “function”==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(“The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.”),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(“gform_main_scripts_loaded”,()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(“gform/theme/scripts_loaded”,()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(“DOMContentLoaded”,()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(“action”,o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(“filter”,o,r,e,t)},doAction:function(o){gform.doHook(“action”,o,arguments)},applyFilters:function(o){return gform.doHook(“filter”,o,arguments)},removeAction:function(o,r){gform.removeHook(“action”,o,r)},removeFilter:function(o,r,e){gform.removeHook(“filter”,o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+”_”+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){“function”!=typeof(t=o.callable)&&(t=window[t]),”action”==r?t.apply(null,e):e[0]=t.apply(null,e)})),”filter”==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});
/* ]]> */

/* = 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find(‘#gform_wrapper_579′);var is_confirmation = jQuery(this).contents().find(‘#gform_confirmation_wrapper_579′).length > 0;var is_redirect = contents.indexOf(‘gformRedirect(){‘) >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery(‘html’).css(‘margin-top’), 10) + parseInt(jQuery(‘body’).css(‘margin-top’), 10) + 100;if(is_form){jQuery(‘#gform_wrapper_579′).html(form_content.html());if(form_content.hasClass(‘gform_validation_error’)){jQuery(‘#gform_wrapper_579′).addClass(‘gform_validation_error’);} else {jQuery(‘#gform_wrapper_579′).removeClass(‘gform_validation_error’);}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ }, 50 );if(window[‘gformInitDatepicker’]) {gformInitDatepicker();}if(window[‘gformInitPriceFields’]) {gformInitPriceFields();}var current_page = jQuery(‘#gform_source_page_number_579′).val();gformInitSpinner( 579, ‘https://www.property118.com/wp-content/plugins/gravityforms/images/spinner.svg’, true );jQuery(document).trigger(‘gform_page_loaded’, [579, current_page]);window[‘gf_submitting_579′] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find(‘.GF_AJAX_POSTBACK’).html();if(!confirmation_content){confirmation_content = contents;}jQuery(‘#gform_wrapper_579′).replaceWith(confirmation_content);jQuery(document).trigger(‘gform_confirmation_loaded’, [579]);window[‘gf_submitting_579′] = false;wp.a11y.speak(jQuery(‘#gform_confirmation_message_579′).text());}else{jQuery(‘#gform_579′).append(contents);if(window[‘gformRedirect’]) {gformRedirect();}}jQuery(document).trigger(“gform_pre_post_render”, [{ formId: “579”, currentPage: “current_page”, abort: function() { this.preventDefault(); } }]); if (event && event.defaultPrevented) { return; } const gformWrapperDiv = document.getElementById( “gform_wrapper_579″ ); if ( gformWrapperDiv ) { const visibilitySpan = document.createElement( “span” ); visibilitySpan.id = “gform_visibility_test_579″; gformWrapperDiv.insertAdjacentElement( “afterend”, visibilitySpan ); } const visibilityTestDiv = document.getElementById( “gform_visibility_test_579″ ); let postRenderFired = false; function triggerPostRender() { if ( postRenderFired ) { return; } postRenderFired = true; gform.core.triggerPostRenderEvents( 579, current_page ); if ( visibilityTestDiv ) { visibilityTestDiv.parentNode.removeChild( visibilityTestDiv ); } } function debounce( func, wait, immediate ) { var timeout; return function() { var context = this, args = arguments; var later = function() { timeout = null; if ( !immediate ) func.apply( context, args ); }; var callNow = immediate && !timeout; clearTimeout( timeout ); timeout = setTimeout( later, wait ); if ( callNow ) func.apply( context, args ); }; } const debouncedTriggerPostRender = debounce( function() { triggerPostRender(); }, 200 ); if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) { const observer = new MutationObserver( ( mutations ) => { mutations.forEach( ( mutation ) => { if ( mutation.type === ‘attributes’ && visibilityTestDiv.offsetParent !== null ) { debouncedTriggerPostRender(); observer.disconnect(); } }); }); observer.observe( document.body, { attributes: true, childList: false, subtree: true, attributeFilter: [ ‘style’, ‘class’ ], }); } else { triggerPostRender(); } } );} );
/* ]]> */

Publication date: Monday, 26 January 2026

The post How Mortgage Valuations Work for Buy-To-Let Properties appeared first on Property118.

View Full Article: How Mortgage Valuations Work for Buy-To-Let Properties

Rent increase challenge rules spark court backlog fears

admin    Uncategorized     agents

Property118

Rent increase challenge rules spark court backlog fears

Tenants challenging rent increases under new reforms could overwhelm courts, warns industry experts.

An article in The Times explains under the Renters’ Rights Act, tenants will be able to challenge any proposed rent increase at the First-Tier Tribunal (FTT).

Under the reforms, the tribunal will no longer be able to set a rent higher than that proposed by the landlord, even if it finds the market rent is higher. It will also be able to delay rent increases by up to two months in cases of hardship.

Landlords in limbo

The Times reports that any rent increase upheld by the tribunal would take effect only from the date of its decision, rather than when the landlord first served notice. This means that even unsuccessful challenges could delay higher rent payments for months, leaving landlords in limbo.

Geoffrey Vos, Master of the Rolls and head of civil justice in England and Wales, warned the Housing Law Practitioners’ Association that the rules under the Renters’ Rights Act could create “an incentive for tenants to apply to the FTT in respect of every increase in order to delay its implementation”.

Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), told The Times: “With just 34 judges sitting on it, the tribunal is unlikely to cope with such an influx of cases once the act comes into force.

“It is one of many aspects of the act where warm words are not being matched by any evidence of the detailed work needed to ensure it works in practice.”

Court capacity could be overwhelmed

As previously reported on Property118, the NRLA has written to the Justice Select Committee, warning that court capacity could be overwhelmed by the Renters’ Rights Act.

The NRLA pointed out that landlords are having to wait weeks for court hearings to regain possession of their properties.

The NRLA said in the letter: “At Report Stage of the Renters’ Rights Act, the Housing Minister told the Commons that: “Court readiness is essential to the successful operation of the new system”. We agree with the Minister.

“However, the government has yet to define what it means by the courts being “ready”. Without that clarity, it is unclear what the planned digitisation of possession cases is intended to deliver or how success will be measured.”

The post Rent increase challenge rules spark court backlog fears appeared first on Property118.

View Full Article: Rent increase challenge rules spark court backlog fears

Selling with tenants in place, or after vacant possession? A realistic route to a certain sale

admin    Uncategorized     agents

Property118

Selling with tenants in place, or after vacant possession? A realistic route to a certain sale

It goes without saying, and certainly judging by the amount of landlords we’re speaking to, that many of you are exiting or getting ready to exit the sector.

It’s a smart decision. With the Renters’ Rights Act coming into play this May 1^st, the end of Section 21 and the raft of tax penalties and new regulations, we’re over and out. It’s time to cash in and invest elsewhere.

But with the decision to sell comes the “how.” How do I sell without overpricing? How do I avoid long delays, price reductions or deals falling apart? And, importantly: how do I work with someone who genuinely understands landlord property and can get the job done fast?

At Landlord Sales Agency we specialise in selling tenanted, recently vacated and soon-to-be vacant properties in a way that’s realistic, well-managed and designed to complete.

We’re not a traditional estate agent, and we’re not a fast-sale company either. Our focus is simply on certainty of sale at a fair, achievable price.

Many of the landlords, like you, who come to us worry that selling can mean being forced into expensive refurbs, paying for certificates or compliance without clarity or throwing money at a property without knowing whether it’ll actually pay off.

But the reality is, most sales don’t need full refurbs. What they actually need is practical, targeted improvements that guarantee a great sale.

That’s where Landlord Sales Agency comes in. We have teams throughout the country who can get to you – in some cases within a day – for tidy-ups, basic works, furniture clearance, access issues and ensuring the right certificates are in place. We only do what’s absolutely essential for your properties to sell, and our process is fast, gets the most achievable prices and allows you as a landlord to sit back and relax knowing it’s all in hand.

So how do we achieve the best results once we’ve got your properties ready? Easy.

• We have an extensive database of over 30,000 active, chain free buyers looking to purchase anything from a single property to a full portfolio, allowing us to quickly match you with the perfect buyer.
• Buyers commit with non-refundable deposits, reducing fall-throughs
• We use realistic guide pricing to create momentum and competition, driving a bidding war on your properties
• And we work in combination with trusted local agents to ensure that your property is marketed via every possible avenue.

What’s more, our team of landlord experts is the best in the country at managing tenants, access and compliance.

We’re also completely transparent. We don’t promise the highest price at any cost. We don’t sign you up for unrealistic values that leave your properties sitting on the market for months, even years. We focus on the best achievable price that actually completes. And it works. On average all our properties sell in less than 28 days.

This month we’re focusing on properties in the North West and North Wales, where buyer demand is strongest. Last week we had landlords approach us from Liverpool, Nottingham, Manchester and Leeds and we got to work delivering.

Fast, realistic, structured sales managed by experts that complete with zero fuss.

So if you’re a landlord looking to get the job done, we’re ready to do it.

There’s no obligation to sell, and absolutely everything to gain.

/* “function”==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(“The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.”),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(“gform_main_scripts_loaded”,()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(“gform/theme/scripts_loaded”,()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(“DOMContentLoaded”,()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(“action”,o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(“filter”,o,r,e,t)},doAction:function(o){gform.doHook(“action”,o,arguments)},applyFilters:function(o){return gform.doHook(“filter”,o,arguments)},removeAction:function(o,r){gform.removeHook(“action”,o,r)},removeFilter:function(o,r,e){gform.removeHook(“filter”,o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+”_”+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){“function”!=typeof(t=o.callable)&&(t=window[t]),”action”==r?t.apply(null,e):e[0]=t.apply(null,e)})),”filter”==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});
/* ]]> */

/* = 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find(‘#gform_wrapper_515′);var is_confirmation = jQuery(this).contents().find(‘#gform_confirmation_wrapper_515′).length > 0;var is_redirect = contents.indexOf(‘gformRedirect(){‘) >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery(‘html’).css(‘margin-top’), 10) + parseInt(jQuery(‘body’).css(‘margin-top’), 10) + 100;if(is_form){jQuery(‘#gform_wrapper_515′).html(form_content.html());if(form_content.hasClass(‘gform_validation_error’)){jQuery(‘#gform_wrapper_515′).addClass(‘gform_validation_error’);} else {jQuery(‘#gform_wrapper_515′).removeClass(‘gform_validation_error’);}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ }, 50 );if(window[‘gformInitDatepicker’]) {gformInitDatepicker();}if(window[‘gformInitPriceFields’]) {gformInitPriceFields();}var current_page = jQuery(‘#gform_source_page_number_515′).val();gformInitSpinner( 515, ‘https://www.property118.com/wp-content/plugins/gravityforms/images/spinner.svg’, true );jQuery(document).trigger(‘gform_page_loaded’, [515, current_page]);window[‘gf_submitting_515′] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find(‘.GF_AJAX_POSTBACK’).html();if(!confirmation_content){confirmation_content = contents;}jQuery(‘#gform_wrapper_515′).replaceWith(confirmation_content);jQuery(document).trigger(‘gform_confirmation_loaded’, [515]);window[‘gf_submitting_515′] = false;wp.a11y.speak(jQuery(‘#gform_confirmation_message_515′).text());}else{jQuery(‘#gform_515′).append(contents);if(window[‘gformRedirect’]) {gformRedirect();}}jQuery(document).trigger(“gform_pre_post_render”, [{ formId: “515”, currentPage: “current_page”, abort: function() { this.preventDefault(); } }]); if (event && event.defaultPrevented) { return; } const gformWrapperDiv = document.getElementById( “gform_wrapper_515″ ); if ( gformWrapperDiv ) { const visibilitySpan = document.createElement( “span” ); visibilitySpan.id = “gform_visibility_test_515″; gformWrapperDiv.insertAdjacentElement( “afterend”, visibilitySpan ); } const visibilityTestDiv = document.getElementById( “gform_visibility_test_515″ ); let postRenderFired = false; function triggerPostRender() { if ( postRenderFired ) { return; } postRenderFired = true; gform.core.triggerPostRenderEvents( 515, current_page ); if ( visibilityTestDiv ) { visibilityTestDiv.parentNode.removeChild( visibilityTestDiv ); } } function debounce( func, wait, immediate ) { var timeout; return function() { var context = this, args = arguments; var later = function() { timeout = null; if ( !immediate ) func.apply( context, args ); }; var callNow = immediate && !timeout; clearTimeout( timeout ); timeout = setTimeout( later, wait ); if ( callNow ) func.apply( context, args ); }; } const debouncedTriggerPostRender = debounce( function() { triggerPostRender(); }, 200 ); if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) { const observer = new MutationObserver( ( mutations ) => { mutations.forEach( ( mutation ) => { if ( mutation.type === ‘attributes’ && visibilityTestDiv.offsetParent !== null ) { debouncedTriggerPostRender(); observer.disconnect(); } }); }); observer.observe( document.body, { attributes: true, childList: false, subtree: true, attributeFilter: [ ‘style’, ‘class’ ], }); } else { triggerPostRender(); } } );} );
/* ]]> */

The post Selling with tenants in place, or after vacant possession? A realistic route to a certain sale appeared first on Property118.

View Full Article: Selling with tenants in place, or after vacant possession? A realistic route to a certain sale

Rents skyrocket in North of England as UK average stabilises

admin    Uncategorized     agents

Property118

Rents skyrocket in North of England as UK average stabilises

Despite rents stabilising across the UK, some areas are seeing prices skyrocket, prompting calls for increased housing supply to tackle rising rents.

A report by SpareRoom reveals the steepest average rent increases were recorded in towns and cities across northern England, the Midlands and Scotland.

The report reveals that the UK average rent continued to stabilise, rising just 0.5% year on year, while London saw a slight fall of 0.9% and is now £985 per month.

However, the flat-share website warns only significant decreases will make a real difference for households spending 40–50% of their income on rent.

Too many renters are at breaking point

Matt Hutchinson, director at flatshare site SpareRoom, said: “Those navigating the market today will tell you affordable accommodation is scarce and only meaningful decreases would make life easier, so the fact rents are stabilising is far from a silver lining.

“In terms of affordability, too many renters are at breaking point, spending half their income on rent.

“The high cost of living is pushing people into traditionally more affordable areas and away from major cities, which of course means these areas won’t be affordable for much longer.

“A laser-focus on boosting supply to the rental market is our best way out of the housing crisis.”

North of England sees rent rises

According to a report by SpareRoom, almost half of the most popular towns and cities among flatsharers that saw rents increase by more than 5% year-on-year in Q4 are located in the North of England.

West Yorkshire town Keighley, long known for its affordability, is seeing room rents rise 14% year on year, pushing average prices to £600 per month.

In Merseyside, Bootle, historically the cheapest place to rent in the UK, has been overtaken by Lancashire town Burnley, which recorded the highest year-on-year rise nationwide.

Renting a room in Bootle now costs £527 per month on average, up 18% from Q4 2024.

In the Midlands, Stourbridge (+17.7%) and Wolverhampton (+9.6%) are leading the charge on rent increases. Stourbridge’s average room rent now stands at £649 per month, £31 higher than Birmingham, where rents fell 2% year on year to £618. Wolverhampton remains more affordable at £65 below Birmingham’s average.

SpareRoom says all of these towns, however, still offer considerably cheaper rents than Edinburgh (£778) and Glasgow (£690).

Despite Scotland’s average rent dropping slightly in Q4 (-0.2%), some cities are bucking the trend. Perth (+7.4%), Paisley (+5.7%), Livingston (+6.7%) and Kirkcaldy (+6.1%) have all seen notable increases.

The post Rents skyrocket in North of England as UK average stabilises appeared first on Property118.

View Full Article: Rents skyrocket in North of England as UK average stabilises

Government U-turn as Warm Homes Plan sets EPC C deadline for 2030

admin    Uncategorized     agents

Property118

Government U-turn as Warm Homes Plan sets EPC C deadline for 2030

The government has U-turned on its plans and scrapped the 2028 deadline for new tenancies to meet EPC C targets, though the cost cap has been reduced.

The government has published its Warm Homes Plan, which will require landlords to ensure their rental properties meet minimum energy-efficiency standards.

Energy Secretary Ed Miliband says the plan will “call time on landlords who don’t meet energy-efficiency standards” and all private rented properties will need to meet EPC C targets by October 2030.

However, the government has yet to clarify how it will work with landlords to achieve these standards, with industry experts warning energy efficiency upgrades will be costly for landlords.

All properties need to meet EPC C targets by October 2030

In a video on X, formerly Twitter, Mr Miliband said the Warm Homes Plan “will call time on private landlords who meet proper energy-efficiency standards.

“If you are a tenant, you deserve to live in a safe, affordable and warm home.”

The government has confirmed under the Warm Homes Plan, all private rented properties will need to meet EPC C targets by October 2030, unless the property has a valid exemption.

Under the plans, landlords will be able to choose between the smart or heat metrics, and the cap on the amount they are expected to invest to meet the new standards will be reduced from £15,000 to £10,000.

The cost cap will be lower where £10,000 would represent 10% or more of a property’s value.

Any spending on energy-efficiency works carried out since October last year will also count towards the planned cap, and the government will deliver a range of finance options, including Boiler Upgrade Scheme (BUS) grants.

Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said: “We have long supported the need to improve the energy efficiency of the rental housing stock. However, the government’s initial proposals were simply unrealistic and had no hope of being delivered within the timescales originally set out.

“The government has clearly listened to our pragmatic proposals to improve its plans, and we look forward to working with it to ensure its ambitions work in practice.”

Proposals are deeply concerning for landlords

However, many industry experts warn that the Warm Homes Plan proposals are deeply concerning for landlords, due to a lack of clear and long-term funding commitments.

Timothy Douglas, head of policy and campaigns at Propertymark, said: “While the ambition of the Warm Homes Plan to improve energy efficiency and tackle fuel poverty is acknowledged, the proposals as they stand are deeply concerning for landlords and agents across both the residential and commercial sectors.

“In the private rented sector, landlords are being asked to deliver, in many cases, substantial and costly upgrades to reach EPC C by 2030, yet this is being imposed without clear, long-term funding commitments, realistic delivery timescales, or sufficient flexibility for older, complex, and hard-to-treat properties.

“A phased and realistic approach would allow landlords to maintain the Decent Homes Standard, manage costs effectively, and contribute meaningfully to the UK Government’s ambition to achieve net zero by 2050.”

A one-size-fits-all approach to energy efficiency will not work

Mr Douglas adds the government has given little details for how commercial landlords will meet EPC B targets by 2030

He said: “Crucially, there remains no clarity on Minimum Energy Efficiency Standards for non-domestic property, despite expectations that commercial landlords will be required to meet EPC B by 2030. The absence of detail on interim targets, exemptions, enforcement, and financial support makes it impossible for landlords to plan responsibly or invest with confidence.

“Propertymark has consistently warned that a one-size-fits-all approach to energy efficiency will not work. Without certainty, genuine flexibility, and practical financial support, there is a serious risk that both residential and commercial landlords will withdraw properties from the market.

“This would reduce supply, drive up costs for tenants and businesses, and ultimately undermine the government’s stated objectives on affordability, energy efficiency, and economic growth.”

Compliance deadline of 2030 for all tenancies is unrealistic

Rob Wall, assistant director (Sustainability), British Property Federation, welcomed the 2030 deadline for private rented properties but warned it is still unrealistic.

He said: “At last we have some clarity on the government’s plans for domestic EPC reform and for new minimum energy efficiency standards for the private rented sector.

“We still believe a compliance deadline of 2030 for all tenancies is unrealistic, but we welcome the proposed transitional measures and the recognition that more consultation is needed to understand how the new EPC regime will work in practice.

“However, the government’s Warm Homes Plan has left commercial buildings out in the cold. The failure to provide any clarity on future minimum energy efficiency standards for the non-domestic private rented sector will do little to arrest the growing sense that Ministers don’t understand or see the case for supporting commercial real estate in its transition to net zero.”

“Further delays to clarifying EPC targets for commercial buildings will have a significant impact on investment and the UK’s competitiveness. While clarity on changes for domestic property will be welcome, the absence of a clear strategy to support the decarbonisation of commercial buildings risks undermining the government’s ability to deliver net zero by 2050.”

Landlords need clear guidance

Landlord organisation iHowz say they welcome the clarity on the 2030 EPC deadline, but due to it being provided at such a late stage, iHowz will push for more generous financial incentives and support to ensure homes can be retrofitted before the 2030 deadline.

Rodney Townson from landlord organisation iHowz said: “It is difficult to assess how many landlords will view this as too onerous, as without sufficient Fabric First Measures, to ensure adequate insulation, many of these measures will not be suitable for flats or other properties without space for the new equipment.

“The Warm Homes Plan presents both challenges and opportunities for landlords, requiring significant investment to meet the upcoming EPC C standard by 2030. While mandatory upgrades add costs, the accompanying government grants through the Boiler Upgrade Scheme and Local Grants offer vital support to install heat pumps and improve insulation, ultimately reducing tenant bills and cutting carbon.

“Our focus must be on ensuring landlords have clear guidance, timely access to these funds, and support to navigate the new EPC regulations, turning this into a shared success for sustainable, affordable, and compliant renting.”

The post Government U-turn as Warm Homes Plan sets EPC C deadline for 2030 appeared first on Property118.

View Full Article: Government U-turn as Warm Homes Plan sets EPC C deadline for 2030

Tenant demand is easing but remains historically strong

admin    Uncategorized     agents

Property118

Tenant demand is easing but remains historically strong

Tenant demand across the private rented sector has eased slightly over the past year but remains strong by long-term standards.

The Landlord Trends data from Pegasus Insight shows that 68% of landlords still describe tenant demand in their area as strong.

That’s despite an 11 percentage point drop compared with a year earlier.

Of those surveyed, 30% said demand was very strong, while 38% described it as quite strong.

Only 5% reported weak demand.

Affordability playing a part

The firm’s managing director and founder, Mark Long, said: “This slight easing in perceived tenant demand doesn’t indicate any fundamental weakness in the rental market.

“Demand remains strong by historical standards, but we are starting to see a shift away from the exceptionally tight conditions of recent years.”

He added: “Affordability is now playing a bigger role in shaping behaviour on both sides of the market.

“Tenants are more cautious about moving, while landlords are balancing rising costs, regulation and the realities of what renters can afford.

“The result is a market that still has solid underlying demand, but one that is gradually becoming more measured and sustainable.”

Regional demand varies

The research found that regional variations persist, with landlords in the North East again recording the highest levels of demand.

The data shows that 71% of landlords there report strong interest, matching the previous quarter.

The East Midlands sits at the lower end of the scale, although 60% of landlords there still characterised demand as strong.

At the same time, voids have become more common with 44% of landlords experiencing an empty property at some point during the past 12 months.

Pegasus says that is an increase of 7% on the previous quarter.

The post Tenant demand is easing but remains historically strong appeared first on Property118.

View Full Article: Tenant demand is easing but remains historically strong

Renting by room and help with future eviction laws?

admin    Uncategorized     agents

Property118

Renting by room and help with future eviction laws?

I am struggling to understand the new Renters’ Rights Act regulations and eviction process. I hope you can help.

I currently rent 2 rooms in my flat out to two separate lodgers/tenants, and keep the 3rd bedroom in the flat for myself (though it is not my main home). The 2 lodgers (technically tenants?) have both stayed in the flat for 5-10 years.

I had known them for years, and therefore, they pay very low rent for their respective rooms compared to the market. I also pay their council tax, utilities, etc., so I subsidise their stay by paying for the bills myself.

While I have been happy with this arrangement at present (though I’m paying for bills that usually landlords don’t pay), in future, at some point, I would like to rent the whole flat out to a family as a normal rental.

Am I right in understanding that from May 2026, the new regulations will mean that I cannot request these tenants to leave the property in order to rent the flat to a single household?

What happens if one of the tenants leaves because of personal reasons, but the other decides to stay? Will I be forced to keep him in the flat indefinitely, even though he only pays for a room? Neither of the tenants have income enough to rent the whole flat themselves.

I understand I can only ask the tenants to leave if I am selling the property or moving in myself, but what options do I have if I want to rent the whole flat to someone?

If I can’t ask them to leave to rent out the flat properly, I wonder if I should be asking them to leave now, even though they are good tenants?

Rita

The post Renting by room and help with future eviction laws? appeared first on Property118.

View Full Article: Renting by room and help with future eviction laws?

Government reveals what must be included in Renters’ Rights Act tenancy agreements

admin    Uncategorized     agents

Property118

Government reveals what must be included in Renters’ Rights Act tenancy agreements

The government has released details of what information landlords must put in new tenancy agreements under the Renters’ Rights Act.

The information could be subject to change, with the final version expected in March, but is unlikely to change much before the Renters’ Rights Act comes into force on 1 May.

The government has also confirmed that existing tenancies already in writing will not need to provide a new tenancy agreement, but will be expected to provide a separate information sheet to tenants outlining the changes in the Act.

The government will publish this in March, and it must be served to existing tenants no later than 31 May.

Mandatory information to be included in tenancy agreement

New tenancy agreements will have to include mandatory information such as:

• The name of the landlord (including all joint landlords) for the tenancy and name of all the tenants
• An address in England or Wales where notices can be served on the landlord
• The address of the property being let
• The date on which the tenant is entitled to possession of the property from
• The rent and when it is due
• A statement that the landlord must serve a Section 13 notice to increase rent
• Any bills that are included in the rent
• Any bills payable to the landlord that are in addition to the rent (ie. for utilities)
• The deposit amount if one is being taken

Most of this information is already included in tenancy agreements, but the government has introduced some new additions under the Renters’ Rights Act, including the right for tenants to request a pet:

• A statement that the tenant may request a pet in accordance with Section 16A of the Housing Act 1988 and that the landlord may not unreasonably withhold consent.
• The minimum notice period a tenant must give to terminate the agreement (usually two months).
• A statement that the landlord is obligated to ensure the property is fit for human habitation.
• A statement setting out the landlord’s obligations under Section 11 of the Landlord and Tenant Act 1985.
• A statement setting out the landlord’s obligations under the Electrical Safety Regulations.
• If there is gas in the property, a statement setting out the landlord’s obligations under the Gas Safety (Installation and Use) Regulations.

Landlords and letting agents could face fines

Timothy Douglas, head of policy and campaigns at Propertymark, warns landlords they must provide tenants with the required information or face fines.

He said: “For new tenancies entered on or after 1 May 2026, tenants must be provided with the Written Statement of Terms and Information.

“Also, this applies to any current tenancies that are based on verbal agreements started before 1 May 2026. This will need to be done before a tenancy agreement is signed or otherwise agree the tenancy. The information can be provided within a written tenancy agreement or given separately.

“Failure to provide a compliant written statement can expose landlords and agents acting on their behalf to enforcement action, including a fine.”

“The list of information that will need to be included has been published in a draft Statutory Instrument. This information list is a draft and may change with a final version expected in March.”

Landlords won’t need to change a current tenancy agreement

He added: “Following feedback, we are pleased that the UK government has clarified when and how the information must be provided alongside tenancy agreements. Furthermore, the Written Statement of Terms includes an address where notices can be served on the landlord by tenants.

“However, the document should include the agent’s details if one is used and be future-proofed to include space for the landlord’s unique identifier to match information on the PRS Database.

“For existing tenancies (created before 1 May 2026), landlords won’t need to change a current tenancy agreement if one is in place or issue a new one. Instead, landlords with existing tenancies will need to provide tenants with a copy of the UK government published ‘Information Sheet’ on or before 31 May 2026.

“This will be published in March 2026. The information sheet must be given to all tenants named on a tenancy agreement. It can be provided electronically or in hard copy.”

The post Government reveals what must be included in Renters’ Rights Act tenancy agreements appeared first on Property118.

View Full Article: Government reveals what must be included in Renters’ Rights Act tenancy agreements

London tenants threaten legal action over excessive heat in flats

admin    Uncategorized     agents

Property118

London tenants threaten legal action over excessive heat in flats

Possession Friend has drawn attention to Property118 about a group of tenants threatening legal action against their housing association over excessive heat.

In what could be the first case of its kind, residents living in flats managed by PA Housing in Woolwich, London, claim the flats are not fit for purpose, with temperatures reaching 43°C in the summer.

Chris Daniel, founder of Possession Friend, told Property118 that landlords now appear to face criticism whether they under-improve or over-improve their properties’ energy efficiency, particularly through insulation.

He also questioned whether the Homes (Fitness for Human Habitation) Act was really needed, given the powers local authorities already have.

Building is inhumane

The BBC reports that residents are planning to take action against their housing association, marking the first claim filed for excessive heat under the Homes (Fitness for Human Habitation) Act 2018.

A resident living in Canada Court and Clifton Lodge in Woolwich told the BBC the building was not fit for purpose.

Chris Sayudo, chair of the tenant association at Clifton Lodge and Canada Court, said the buildings’ corridors reached 48 degrees in the summer.

He told the BBC: “It’s a combination of problems; the build-up of heat in the building, because there’s no real ventilation, and the fact there are leaks in the cupboards and communal areas means there is a massive amount of mould.

“Not just in communal areas, but in our flats as well, because we don’t have ventilation. There’s a built-in new air ventilation system but it doesn’t do anything. It’s not effective.”

Will be putting measures in place to monitor internal temperatures

The BBC claim when they went to film the flats last year the communal cupboards were covered in thick black mould.

However, the housing association told the BBC they have now cleaned the mould and are supporting residents.

Michael McDonagh, chief executive of PA Housing, said the issue was mainly concentrated to communal intake cupboards rather than residents’ homes.

He told the BBC: “This is an issue that, we agree, needs to be addressed across the housing sector. Like most properties in the UK, Canada Court and Clifton Lodge were designed to keep heat in rather than keep them cool.

“However, when they were built, they met all relevant planning and building regulations at the time.

“All the same, we will be putting measures in place to monitor internal temperatures at both buildings as a way of understanding whether this is just an issue during excessive heat or throughout the year so we can support residents as much as we can.”

“This is a difficult situation that the sector and the government, not just PA Housing, need to address.”

Can you make a property too energy-efficient?

Mr Daniel tells Property118 that many private landlords remain concerned about the uncertainty surrounding EPC C requirements and questions whether cases such as this show how the legislation may be interpreted in practice

He said: “Landlords will want to ensure a good level of thermal efficiency for the benefit of their tenants and their properties. However, can you make a property ‘too energy efficient’?

“Many private landlords are still concerned about the uncertainty surrounding EPC C requirements and it would seem that you can, in this case, where a group of tenants complain that flats are too hot and therefore unfit for human habitation.

“Didn’t landlords express concern about how this legislation would be used and whether there was even a need for it, given local authority powers under the Housing Health and Safety Rating System (HHSRS)”

He adds: “If there could be any concerns about excess heat, then perhaps landlords add temperature checks to their morning routine and open windows before serving tenants breakfast in bed!”

When asked by Property118 for comment on the legal action case, PA Housing declined to comment.

The post London tenants threaten legal action over excessive heat in flats appeared first on Property118.

View Full Article: London tenants threaten legal action over excessive heat in flats

Discrimination against benefit tenants under the Renters’ Rights Act?

admin    Uncategorized     agents

Property118

Discrimination against benefit tenants under the Renters’ Rights Act?

The Renters’ Rights Act is trying to prevent overt discrimination (blanket no DSS policies) when private letting.

At the moment, if a tenant approaches you, and they are claiming benefits at an existing address, then this claim is tied to this specific circumstance at this particular time, i.e. at X address and X benefit subsidy is agreed according to the claimant’s own specifics.

The Department of Work and Pensions (DWP), who pay the contribution towards housing costs according to the person’s claim, will only reassess the claim and, ergo, the level of rent subsidy it will make only AFTER the tenant has declared a change of circumstance. Therefore, the tenant will have already moved and been supplied a copy of a signed AST.

How is it possible then that an applicant who is receiving any rent subsidy can provide evidence that the affordability criteria can be met until they have moved in?

The landlord has no idea what the current claim involves and how it will be affected by a change in circumstance, and neither does the DWP until it happens. At the application stage, therefore, the amount of rent subsidy that may be granted to the claimant is unconfirmed.

Given that no landlord is legally mandated to let a property to anyone who cannot prove affordability BEFORE a tenancy can be offered, is this now what we will all be focusing on to avoid accusations of discrimination when letting?

Thanks,

Reluctant landlord

The post Discrimination against benefit tenants under the Renters’ Rights Act? appeared first on Property118.

View Full Article: Discrimination against benefit tenants under the Renters’ Rights Act?