You would forgive some landlords for not feeling optimistic about the condition of the rental and lettings market. In recent times, the Government has imposed many new regulations and challenges on landlords, and there has been anecdotal evidence of many lettings professionals deciding it is time to leave the market. Thankfully, a recent study suggests otherwise, and it looks as though there are many landlords feeling optimistic for 2019. Continue reading “Landlords Feeling Optimistic For 2019”
It is important that landlords remain up to date and fully information of all regulations that impact on their business. While many of these regulations make sense and create better living conditions for tenants, the fact that there are so many new regulations and updates to consider, places landlords under considerable pressure. Even landlords who are keen to fully comply with regulations sometimes struggle to remain up to date, but Williams of Petersfield aims to assist Petersfield landlords remain fully informed.
While there is no date announced for rented properties to have electrical installations tested every five years, it looks likely to be implemented soon. There have been various calls for this measure to be introduced over the year with the most recent occurring at the end of 2017. It is likely that this move, backed by a variety of working groups from leading industry bodies, has shaped the recent Government decision.
New measures will be introduced soon for Petersfield landlords to be aware of
The plans were introduced by James Brokenshire, the Housing Secretary, alongside a package of measures which are aimed at improving the standard of building safety. It was also announced that there will be a consultation in building regulations, with this arising from the review undertaken by Dame Judith Hackitt. Very few people would argue against improving standards with respect to rental accommodation but there is a need to ensure that landlords can make these changes and alterations without harming their own business.
The news has been welcomed by the Electrical Safety First group, with their Director General Phil Buckle stating; “We are delighted the Government has finally recognised the importance of regular electrical checks in the private rental sector which protects both tenants and landlords. Electrical Safety First has led the charge for this to be made a legal requirement for UK homes and successfully lobbied for these to be introduced in the PRS in Scotland – with Wales and Northern Ireland set to follow suit.” This is a group that has lobbied for these changes, so are understandably pleased with this outcome.
MPs from all parties have backed these plans
The organisation was quick to point out that their calls for these tests have been supported by 71% of MPs, which includes support from all political parties in the country. With this sort of backing, it was always likely that these changes would be passed, and it is another issue that Petersfield landlords will have to consider.
By itself, these additional checks on electrical appliances shouldn’t cause too much bother but it is the fact that there are so many tests and checks for landlords to deal with which creates a problem. If you are a landlord in Petersfield who is struggling to remain fully informed about what you need to do to run your business, contact Williams of Petersfield. We are local lettings specialists and we are here to provide you with the support and guidance you need to run your business in an effective manner.
If you are considering the rental market, or you just want an overview of the complete property market in England, you’ll be interested to note that one in five households currently rent privately in the country. With 20% of the market, this is a notable part of the market and with predictions suggesting that this will increase further in the next few years, it is easy to see why many people are considering the rental market.
It should be stated that homeownership is still the most common tenure in England with 63% of households. There are 14.4 million homes in England with owner-occupation status and 34% of English properties are owned outright and 28% of properties in the country are currently under mortgage.
There is also the social rented sector to consider and this accounts for 17% of households in England, which is equivalent to 3.9 million households.
Owner-occupation levels have fallen in the past decade
Statistics provided by the English Housing Survey offers an insight into the current market and recent behaviour. Something which will be of interest to investors is the fact that owner-occupation has dropped considerably from its peak in 2003, when it reached 71%. There has however been a consistent level since 2013/14 so it may be that the market is plateaued with first-time buyers replacing people selling up to move on or who pass away. 2013/14 was also the year when the number of outright owners was greater than the number of mortgage holders, a return which has remained true since then.
An aging population shapes the property market
While there may be many reasons for this status, it is likely that the aging population of the country has influenced this. After all, with people living longer, they have hopefully paid off their mortgage before now, which is reflected in the status of property owners.
While shared ownership has been stated as a way of getting on to the property ladder, it only accounts for less than 1% of all owner-occupiers which equates to around 136,000 households. Another interesting issue from the findings is the fact that homeowners are getting under. In 2016/17, homeowners under the age of 35 accounted for 9% of the market. Just two decades ago, the same group accounted for 18%.
In the same time-period, there has also been a significant increase in the size of the private rented market. In fact, this has accelerated greatly in the past 10 years, with 2 million households being added to the sector in this time, resulting in 4.7 million households being classed as private rental property in 2016/17.
A variety of factors shape the property market, and therefore, so many investors have confidence in the rental market. There are so many signs that indicate this will be a market that continues to grow for years to come, offering confidence for people looking to enter the market. If you are a Petersfield landlord looking for support or you would like guidance on becoming a landlord in Petersfield, contact Williams of Petersfield and we will be more than happy to assist you.
Even though there are many factors shaping the behaviour of the property market in England, there is consensus that a lack of affordable homes is a key factor. Brexit may be the issue that receives most media coverage but if there were more homes on the market, there would likely be more affordable homes and the level of pressure that buyers feel in the market would be lower.
At Williams of Petersfield, we know that many people have concerns about the property market, and they are keen to stay in touch with the latest news. You will also find that people are keen to hear predictions for the property market and information provided by the National Landlords Association is of interest to prospective buyers, property owners and even tenants.
The NLA suggests landlords selling up is likely
The NLA conducted a poll of its members and they found that in the next 12 months, around 20% of landlords are looking to sell property. Of this group looking to sell their property, which equates to around 380,000 landlords, 45% of landlords are looking to sell flats or apartments.
This news is likely to be welcomed by first-time buyers. Flats and apartments are the properties most commonly bought by people stepping on to the property ladder for the first time, so if the market is flooded with these properties, first-time buyers should have a greater chance of buying.
Given that a crucial component of property prices being high is the fact that demand is greater than supply, a significant increase in the supply of properties could lead to prices falling. That is the hope of many people, but of course, when it comes to property prices, the market doesn’t always behave in the manner that you expect it too.
Tenants wouldn’t view this news as positive
While this report will be viewed as positive news by people looking to buy property, it will be concerning news for tenants and people priced out of the property market. Many people find the rental market challenging as it is but if the supply of flats and apartments to the market dropped significantly, there could be ramifications for the market.
It would be reasonable enough to assume that rental fees would rise, and many people would find themselves priced out of the rental market, never mind the property market. Also, with flats and apartments being popular in the rental market, there could be a significant fall in the supply of suitable homes.
There is no guarantee that these predictions will come true. It may be that landlords find it easier to say they intend to sell property in a survey than it is to sell in real life, but there is no denying that the property and rental market will be significantly impacted on if these changes come to pass.
No matter what your aims or ambitions are in the Petersfield property market, it makes sense to be fully informed. At Williams of Petersfield, we look forward to assisting you and if you require any guidance, get in touch and we will be keen to assist you.
Being a landlord can be very difficult and there are many challenges that must be overcome, including legislative changes. In recent times, there have been notable rental fee increases and to the outsider, this will seem like positive news for landlords.
You could argue that Petersfield landlords have enough to consider and deal with given all the regulatory changes that have been imposed on the profession of late.
It is important that landlords keep up to date with all of the changes with respect to rules and regulations of their industry. There have been many changes in recent times but any landlord who felt that 2018 was going to be slightly easier will probably want to think again. As of the 1st of April 2018, there will be big changes relating to the Energy Performance Certificate (EPC) rating for new lets.
The change is related to the Energy Efficiency (Private Rented Property) (England and Wales) Regulations of 2015 and the Minimum Energy Efficiency Standards or MEES, which are being introduced. The change comes into effect for new lets and renewals of tenancies from the 1st of April of 2018 and by the 1st of April 2020, this regulation will be applicable to all existing tenancies. The minimum rating for these tenancies will be an E rating and if a landlord doesn’t comply with the regulations, they may face a civil penalty of up to £4,000.
Know the full regulations regarding the MEES
There are some exemptions where a landlord will be able to let property that holds a lower EPC rating than this, and these exemptions include:
- Where a third party has to provide agreement for improvements to be undertaken and they don’t
- Where work carried out on the property would lower the value of the property by at least 5% (this will be evaluated by an independent professional)
- Where all possible improvements have been carried out and the property still falls below the EPC rating
- Where the landlord would be left out of pocket
It is essential that landlords are aware that there are grants and funding on offer to ensure they comply with the regulations. The exemptions can only exist for a maximum of five years and they are not able to be transferred over to another landlord.
It makes sense to improve the EPC rating of your property
There is a lot to be said for improving the energy efficiency rating of a property and this is true for landlords and tenants. A real benefit to the tenant comes with the fact that moving from a G rating to an E rating can lower the average annual heating bills by more than £1,000. This is something that will please a tenant and may help them stay in the property for a longer period. This will be of benefit to the landlord, minimising void periods and ensuring that they have less work to do.
A landlord can also take comfort in knowing that their property is in better condition, it’s value should have improved and they will likely be able to raise rental fees with some justification.
We know that things are difficult for landlords at the moment and if you need any assistance or guidance, please get in touch with Williams of Petersfield and we will do our best to help you out. This is just one of the many changes that landlords have had to deal with but we are on hand to ensure you know what you need to know.