Private landlords under pressure as new decade gets underway…
Private Rented Sector:
As we enter a new
decade under a new Government, nothing is more certain than the
landscape in the PRS is going to change, and change dramatically.
Private landlords have been under pressure for some years now as Government policy has changed and with one legislative change after another. This does not just affect the amount of tax buy-to-let landlords have to pay, but it has introduced a whole extra administrative burden, lots of extra tasks being demanded of landlords and their agents in the process of letting.
But two factors remain hugely positive for buy-to-let: (1) there’s a massive housing shortage which means that the demand for retails remains high and is likely to do so in many locations for a long time, and (2), despite the tax rule changes buy-to-let investments still return considerably more than a bank or building society savings account. Also, many other forms of long-term investments compare less favourably that an investment in bricks and mortar.
Challenges ahead
There are now two big challenges on the horizon for private landlords, (1) the banning of section 21 and (2) the rise and rise of build-to-rent.
The Government has committed to removing the no-fault eviction process known as section 21. It was included in the Conservative Party’s manifesto and in the Queen’s Speech, but that doesn’t mean there won’t be changes when the eventual legislation comes out.
Landlords would be
concerned about letting to tenants without some certainty in a system
which allows indefinite tenancies. Would they get their property back
without too much hassle if things go wrong. The Government would be
making a terrible mistake if it created a scenario where private
landlords would rather sell-up than rent to tenants, exacerbating an
already desperate housing shortage.
The second challenge
is the rise and rise of built-to-rent. Literally, in large cities
high rise blocks of flats are going up everywhere. It’s been
government policy for some years now to encourage investment in
American style professionally managed rented blocks, many with a
hotel-style concierge services, managements on-site, and shared
amenity spaces such lounges and gyms.
This sort of development will undoubtedly eat into the traditional small-scale buy-to-let market in the major towns and cities. The Government may well be factoring in this increase in supply taking over as the traditional landlords’ portfolios are depleted. According to Savills the number of build-to-rent homes under construction and in planning has reached 150,000. However, these multi-family homes are not every tenant’s cup of tea, and they attract premium rents, so they have a limited appeal.
The small-scale
private landlord will need to meet these challenges if he or she is
to survive.
On top of these major challenges are the ongoing regulatory changes. MEES, the minimum energy efficiency standards that all lettings must achieve and the new electrical installation inspection and testing regime are of immediate concern.
As from the 1st July
this year, and 1st April next year for existing lettings, landlords
and agents will have to arrange for a suitably qualified electrician
to inspect and test electrical installations of each individual
property, every five years.
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Private landlords under pressure as new decade gets underway… | LandlordZONE.
View Full Article: Private landlords under pressure as new decade gets underway…
Post comment
Categories
- Landlords (19)
- Real Estate (9)
- Renewables & Green Issues (1)
- Rental Property Investment (1)
- Tenants (21)
- Uncategorized (11,917)
Archives
- December 2024 (44)
- November 2024 (64)
- October 2024 (82)
- September 2024 (69)
- August 2024 (55)
- July 2024 (64)
- June 2024 (54)
- May 2024 (73)
- April 2024 (59)
- March 2024 (49)
- February 2024 (57)
- January 2024 (58)
- December 2023 (56)
- November 2023 (59)
- October 2023 (67)
- September 2023 (136)
- August 2023 (131)
- July 2023 (129)
- June 2023 (128)
- May 2023 (140)
- April 2023 (121)
- March 2023 (168)
- February 2023 (155)
- January 2023 (152)
- December 2022 (136)
- November 2022 (158)
- October 2022 (146)
- September 2022 (148)
- August 2022 (169)
- July 2022 (124)
- June 2022 (124)
- May 2022 (130)
- April 2022 (116)
- March 2022 (155)
- February 2022 (124)
- January 2022 (120)
- December 2021 (117)
- November 2021 (139)
- October 2021 (130)
- September 2021 (138)
- August 2021 (110)
- July 2021 (110)
- June 2021 (60)
- May 2021 (127)
- April 2021 (122)
- March 2021 (156)
- February 2021 (154)
- January 2021 (133)
- December 2020 (126)
- November 2020 (159)
- October 2020 (169)
- September 2020 (181)
- August 2020 (147)
- July 2020 (172)
- June 2020 (158)
- May 2020 (177)
- April 2020 (188)
- March 2020 (234)
- February 2020 (212)
- January 2020 (164)
- December 2019 (107)
- November 2019 (131)
- October 2019 (145)
- September 2019 (123)
- August 2019 (112)
- July 2019 (93)
- June 2019 (82)
- May 2019 (94)
- April 2019 (88)
- March 2019 (78)
- February 2019 (77)
- January 2019 (71)
- December 2018 (37)
- November 2018 (85)
- October 2018 (108)
- September 2018 (110)
- August 2018 (135)
- July 2018 (140)
- June 2018 (118)
- May 2018 (113)
- April 2018 (64)
- March 2018 (96)
- February 2018 (82)
- January 2018 (92)
- December 2017 (62)
- November 2017 (100)
- October 2017 (105)
- September 2017 (97)
- August 2017 (101)
- July 2017 (104)
- June 2017 (155)
- May 2017 (135)
- April 2017 (113)
- March 2017 (138)
- February 2017 (150)
- January 2017 (127)
- December 2016 (90)
- November 2016 (135)
- October 2016 (149)
- September 2016 (135)
- August 2016 (48)
- July 2016 (52)
- June 2016 (54)
- May 2016 (52)
- April 2016 (24)
- October 2014 (8)
- April 2012 (2)
- December 2011 (2)
- November 2011 (10)
- October 2011 (9)
- September 2011 (9)
- August 2011 (3)
Calendar
Recent Posts
- Landlords could pay tenants up to two years’ rent for failing Decent Homes Standard as PBSA is exempt
- Landlords’ Rights Bill: Let’s tell the government what we want
- 2025 will be crucial for leasehold reform as secondary legislation takes shape
- Reeves inflationary budget puts mockers on Bank Base Rate reduction
- How to Avoid SDLT Hikes In 2025