THINGS ARE LOOKING UP FOR LANDLORDS!

After recent announcements, is the future looking brighter for landlords?

Landlords have faced a steady stream of new legislation and regulations in recent years, while inflation driving up costs has simply exposed the fragility of the rental ecosystem.

No more EPC uncertainty.

The government has U-turned on its long-promised proposals to increase Minimum Energy Efficiency Standards to an EPC C in the private rented sector.

After the proposals landed, very little further information was released, making it difficult for landlords to plan with no legally required deadline and no additional financial support announced either.

Then, back in July, the first murmurings that the government could be softening its approach. Housing Secretary Michael Gove declared: “I think we’re asking a little too much of [landlords] and therefore we will give a greater degree of breathing space.”

And now, Prime Minister Rishi Sunak has confirmed that plans to force landlords to upgrade “will be scrapped”.

This will be a relief to landlords that were faced with paying up to £10,000 to reach the required rating, with limited support, had the proposals gone ahead.

Properties with high EPC ratings are already proving popular for buy-to-let investors. Hopefully, this means that landlords will continue to see the long-term benefit of energy efficient properties – but with the flexibility to make any upgrades to their own timescales.

Mortgage interest rate freeze.

Another big concern for landlords is high mortgage rates, which 44.2%% of those surveyed in our State of the Lettings Industry Report 2023 say is a big reason for landlords leaving the sector.

Although the recent interest base rate freeze was not a decision taken by the Bank of England with landlords in mind, it will nonetheless signal some light at the end of the tunnel for property owners that have seen their costs squeezed.

This freeze doesn’t mean rates won’t increase again in the future, but the surprising dip in inflation bodes well for forecasts that suggest we’ll soon see those rates peak.

Delays to rental reform.

Finally, the Renters (Reform) Bill. We still wait patiently for a second reading, to continue to push the bill through the houses towards Royal Assent.

But the delay appears to be due to Conservative party whips that are also landlords, who are “amplifying the level of concern among Tory MPs and holding things up”, according to reports.

NEW ‘HOW TO RENT’ GUIDE ISSUED!

The government only updated its How to rent guide for tenants in March of this year, with new information about carbon monoxide rules.

On 2 October 2023, the government updated its How to rent guide. The updated version covers the new Housing Loss Prevention Advice Service, which offers tenants legal advice on housing and possessions.

What is the How to rent guide?

The How to rent guide is for tenants that rent a property privately under an assured shorthold tenancy in England. They can rent either directly through a landlord or a letting agent.

The guide outlines everything from how to search for a new home and what they need to do once they’ve found one, through to their rights and responsibilities when living in the rented property and then how to end the tenancy.

Link to new guide:- How to rent – GOV.UK (www.gov.uk)

Court solution for abandoned tenancies requested.

Propertymark has pushed for the government to release better guidance and legislation to support landlords if their properties are abandoned by tenants. The association highlights that this could be a bottleneck when section 21 is abolished, as there is currently little clarity on how possession cases will be prioritised.

Tim Thomas, Propertymark’s Policy and Campaigns Officer, highlights that it’s more important than ever to “bring such homes back into circulation with urgency”.