All the facts and figures on the rental market in Bath & beyond from September 2023, plus some significant lettings legislation news.
All the facts and figures on the rental market in Bath & beyond from August 2023, including a mortgage update from Doug Miller of Lansdown Financial Services.
The private rented sector for both Bath landlords and Bath tenants is facing immense challenges, with a shortage of available homes for rent putting renters under significant pressure.
And you can see why when the average UK rent in 2021 was £1,381 and in 2023 it has been £1,706, an increase of 23.53%.
Let’s look closer to home in the Bath area.
You can understand why people are accusing landlords of “widespread profiteering”.
But as always, the devil is in the detail.
A new tenancy is when a brand-new tenant moves into a home, whilst a renewal is when an existing tenant renews the lease with their existing landlord.
Government data shows that most landlords are not exploiting the mortgage crisis, with 64% of landlords maintaining and 4% decreasing rents to shield renters from the impact on renewal of their tenancy agreement, dispelling the notion that they are exploiting the situation.
Looking at the same Government data, of the landlords setting rents for new tenants, just under half of landlords (45%) stated they increased the rent compared to the previous tenancy with the old tenant, whereas a third (35%) kept the rent they charged at the same level, and surprisingly 1 in 12 (8%) decreased the rent.
And 4.6% is much lower than the rate of inflation.
Contrary to popular belief, landlords’ profit margins have significantly dwindled in recent years. The profits for private landlords are at their lowest since the Credit Crunch due to rising mortgage rates and limited tax relief. This demonstrates that private landlords are not profiteering during the cost-of-living crisis.
Now some of you will say, Bath house prices have risen in that time. Yes, that is the case, yet not by the rate of inflation, so in fact in ‘real’ terms, their investments have gone down in value.
Landlords face growing costs, including increased mortgage payments and the negative impact of a tax system that discourages investment in the rental market. These challenges are further exacerbated by ongoing uncertainty surrounding reforms to the law regarding landlords.
With limited options available, landlords must choose between leaving the private rented sector, increasing rents as a last resort, or absorbing mounting costs. However, the latter is nearly impossible for most individual landlords who lack deep pockets. To address these challenges, the Government must provide crucial support to the rental market.
To alleviate the burden on renters, the Government should reconsider current taxes which are designed to discourage landlords from providing more rental homes. It is vital to ensure that the supply of rental properties does not further diminish, as Bath tenants simply cannot bear the consequences of a dwindling market and it will lead to further housing hardship.
Housing is such an important thing (rather like the NHS), and I would urge all parties, to move beyond rhetoric and take positive action to support the private rented sector.
By fostering an environment that encourages investment and providing support to renters, the Government can help alleviate the strain on both landlords and tenants and ensure a sustainable and fair rental market for all.
All the facts and figures on the rental market in Bath & beyond from June 2023, including some really interesting information about the differing performances of houses and flat on the market.
Bath landlords came together for an evening of insightful discussions and valuable takeaways at the Bath Landlord Conference held on 26 July 2023, at The Francis Hotel. The event, attended by around 50 enthusiastic landlords, proved to be an engaging platform for industry experts to share their knowledge and expertise.
Toby Martin, the director of Reside Bath and West Country Regional Executive for ARLA Propertymark, hosted the evening and shed light on the intricacies of the local rental market, particularly focusing on the imbalance between property supply and tenant demand.
Michael Tatters, a Partner at Thrings Solicitors, captivated the audience with an in-depth exploration of the Renters Reform Bill and its impending impact on landlords. Attendees were given ample opportunity to raise questions and discuss their concerns, ensuring they were well-prepared for the legislative changes ahead.
Adding a dash of practicality to the conference, Ben Stokes and Michael Skeath from Elite Consultancy Group delivered an engaging presentation on landlord compliance. Their valuable tips and tricks provided landlords with actionable steps to fulfill their legal obligations, steering clear of fines and penalties. Their presentation sparked interactive discussions and left landlords equipped with tools to enhance their compliance efforts.
Attendees actively participated in spirited discussions and posed thoughtful questions to the expert panel, all of which were met with insightful responses.
“We’re thrilled to witness such enthusiasm and engagement from the local landlord community,” said Toby Martin, reflecting on the event. “Our aim is to provide a supportive space for landlords to learn, connect, and stay ahead in the ever-changing private rental landscape.”
Plans for the next Bath Landlord Conference later in the year are already underway. Stay tuned for updates on the next Bath Landlord Conference by visiting www.bathlandlordforum.co.uk.
All the facts and figures on the rental market in Bath & beyond from May 2023, including a close look at how long it takes to let a property and what that tells us about the current market.
The long-awaited Renters Reform Bill, which contains the government’s proposed changes to the Private Rented Sector, had its first reading in parliament last week.
Despite some of the headlines you may have read, none of these proposals are currently law and as such have no immediate impact on new or existing tenancies.
Here is a short summary of the Bill, and we’ll be sure to keep you informed of any further developments.
The Bath Landlord Forum hosted a successful event at The Francis Hotel, Bath on 15 March 2023, which focused on energy efficiency considerations in rental properties. The event was hosted by Reside’s Toby Martin and featured guest speakers who provided valuable insights on this important topic.
The event was attended by a large number of local landlords, property managers, and industry experts, who were keen to learn more about the latest developments in energy efficiency and how they could apply them in their own rental properties.
Toby Martin started off the event by giving a lettings legislation update. He summarised a range of recent and upcoming regulations, including the importance of complying with regulations related to energy efficiency.
Olly Meyer, a domestic energy assessor from Meyer Energy, was the next speaker. He spoke about how Energy Performance Certificates (EPCs) are recorded and what constitutes a good or bad EPC. Olly explained that EPCs are a legal requirement for landlords and that they need to be renewed every ten years. He also highlighted some of the factors that can impact the rating of an EPC, such as the age of the property, the type of insulation, and the heating system.
Sonia Pruzinsky from the Centre for Sustainable Energy was the final speaker. She explained the funding options that are available for landlords looking to improve the energy efficiency of their properties. Sonia discussed the different schemes that landlords can take advantage of, such as the Energy Company Obligation (ECO) and Home Upgrade Scheme. She also highlighted the importance of taking a holistic approach to energy efficiency and encouraged landlords to think about ways to reduce energy usage beyond just making physical upgrades to their properties.
The event was highly informative and provided valuable insights into the latest developments in energy efficiency for rental properties. Attendees also had the opportunity to network with other landlords and share best practices.
“We were delighted with the turnout for this event and the engagement of our speakers and attendees,” commented Toby Martin. “Energy efficiency is an important issue for landlords, and we hope that this event has helped landlords to better understand how to deal with the government’s proposed regulations.”
The Bath Landlord Forum plans to host more events on important topics related to the rental property industry in the future. For more information about the Bath Landlord Forum and future events, please visit their website at www.bathlandlordforum.co.uk.
The latest Propertymark Housing Insight Report suggests that tenant demand is on the rise again, with supply of property unable to keep up.
