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The Renters Rights Bill: What We Know, What is to Come, and What Might Change?

Posted on by prateek

The UK rental market is no stranger to change, and with the Renters’ Rights Bill (RRB) on the horizon, landlords, tenants, and letting agents need to stay informed as those who do not keep up to date now, will be left in the metaphorical dust after the bill is passed.

Nothing is set in stone until the bill receives Royal Assent, so take the following as purely what we know for now, rather than gospel. Got it? Good! So, without further ado, here’s what we know so far—and what it could mean for the rental market landscape in the months to come.

Current Rental Demand & Market Trends

Before we step into the Renters Rights Bill, it is important to understand the current market landscape. Here is what we know –

  • Across the UK, there has been a ~30% drop in rental demand from tenants since January 2024.
  • Despite this decline, rents continue to rise due to a lack of available rental stock.
  • With rents up and mortgage rates down, now could be a favourable time for property investment despite the turmoil caused by the RRB.

New Sanction Checks – Effective 14th May 2025

Letting agencies will be required to conduct sanctions checks on all landlords and tenants under the Sanctions and Anti-Money Laundering Act 2018. If a guarantor is paying rent directly or interacting with the agent/landlord during the tenancy, they must also undergo checks, a big change from days past.

  • These checks will be mandatory for all letting agencies in the UK, agencies that do not comply will face fines.
  • Third-party companies such as Goodlord can manage these checks for tenants and guarantors as part of the referencing process. Check with your local agency how they intend to undertake these checks, as this might differ.
  • One major change is that AML checks will be conducted on all new landlords upon instruction.

For the official government guidance, visit: Sanctions Guidance for Letting Agents.

The Renters’ Rights Bill – What’s Coming?

After what feels like an age, we now have some potential dates to put in place. Firstly, the Bill is expected to become law between July & October, with an implementation date shortly thereafter, likely in January 2026. We are expecting the changes to take effect immediately, there will be no grace period, meaning all fixed-term Tenancies will become periodic overnight.

Key Changes Include:

Impact on Letting Fees – With fixed terms disappearing, renewal fees will all but disappear. A sliding scale fee structure may be necessary if tenants leave shortly after starting a new Tenancy. This is something we are monitoring closely and will update all of our current landlords as and when we have more information. For landlords outside of our network, do check with your letting agent too and make sure to keep in contact with them about the RRB over the coming months.

Applies to Assured Shorthold Tenancies (ASTs) Only – Corporate lets remain unaffected.

A New Single Ombudsman – Landlords must register with a centralised Ombudsman or face fines. Agents are expected to be allowed to register on behalf of Managed Landlords.

New Digital Portal – A government-run landlord portal will be introduced for compliance monitoring.

Bidding Wars Banned – It will become illegal for tenants to offer over the asking rent, regardless of their situation. We are currently anticipating this could lead to landlords pricing higher initially before adjusting down. However, advice about this approach will be given as and when the time comes. It is not something we are expecting to recommend as you may end up pricing out a lot of your target demographic.

Anti-Discrimination Measures – Landlords cannot refuse tenants based on family status, children, pets, or benefits. For most landlords, this won’t change anything, but it is something to be made aware of.

Advance Rent Restrictions – The first rent period cannot be an advance payment, but loopholes are being debated. Our advice? Avoid creative workarounds – they are unlikely to hold up in practice and could well result in fines.

Rent Reviews & Inflation – Rent increases will likely have to align with inflation. Tenants will have easy access to tribunals to challenge hikes beyond this threshold at no cost to themselves going forward.

What Happens Next?

We’ll be keeping a close eye on updates, with more details expected in the coming months. Our MARLA-qualified colleagues are attending many Propertymark conferences over the coming months where more information will be available to us and will pass relevant details on to landlords and tenants as and when is suitable.

As we have stated, until the final bill is produced, everything remains hypothetical. But one thing is certain: change is coming, and preparation is key. If you have any questions do get in touch with us. We will help you as well as we can for now. We are planning on creating plenty of videos and blogs over the coming months about the RRB so be assured we will not be leaving anyone in the dark.

For expert guidance on Renting, Letting, Buying or Selling property in Bath, contact us today.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

To Read Previous Renters Rights Bill Articles, click below:

https://residebath.co.uk//20241003/renters-rights-bill-what-does-it-mean-for-you/
https://residebath.co.uk//20240913/renters-rights-bill-update-what-bath-landlords-need-to-know/

For more from Reside Bath: Lettings and Estate Agency, click the icons below!

Bath retirees turning to rental properties: what it means for landlords.

Posted on by prateek

Recent figures from the Office for National Statistics (ONS) revealed that across the UK, nearly half a million households are occupied by individuals aged 65+ living in the private rental sector. This represents 6.7% of all OAPs now renting privately.

Ten years ago, only 267,000 households were occupied by individuals aged 65+ who lived in privately rented housing. At the time, this represented just 4.39% of OAPs. So, it is clear from the outset that the dynamics in the market have changed significantly, with over a 50% increase. So, what does this data mean?

WHY ARE RETIREES RENTING?

A survey by The Prudential a few years ago shed light on this upcoming trend. Nearly 60% of older renters have always been renting. Around 20% have sold their homes to address debt challenges, and another 10% have sold their properties intentionally with the desire to rent in older age, often using the proceeds to fund their retirement or allow more freedom and less maintenance.

Financial stability is increasingly important. Men in Bath, upon reaching 65, have an average life expectancy of 19.6 years, while women can expect to live an additional 22.1 years. Interesting when compared to the national averages of 18.1 years for men and 20.6 years for women.

However, longer life expectancies come with the challenge of sustaining finances over an extended period, particularly as inflation, rising living costs, and low interest rates erode retirement savings.

THE RENTAL LANDSCAPE IN BATH.

30% of people who live in Bath and North East Somerset (BANES) are over 65 years old. A significant majority of over 65’s, 76%, own their homes outright. 6% own their homes with a mortgage and then social housing accounts for 12%. This leaves 5% of over-65s in the area being privately rented.

This figure, whilst small, is on the rise. Anecdotal evidence suggests that property professionals are seeing more retirees in Bath choosing to sell larger homes they own and downsize into rented accommodation. This reflects a desire for more simplicity and financial flexibility upon retirement. Selling a home with or without a mortgage offers up substantial equity which can then be passed down to future generations via better investments, funds and allow a more comfortable retirement.

Renting also offers predictability. With a fixed monthly expenditure that typically includes property maintenance and potentially even services like gardening, retirees can budget with confidence. This arrangement removes the financial and logistical burdens of homeownership, such as unexpected repair costs, allowing for a more carefree retirement. Renting also offers flexibility, enabling older tenants to relocate with ease if their circumstances change, such as moving into assisted living or care facilities.

OPPORTUNITIES FOR BATH’S LANDLORDS:

This shift presents a unique opportunity for Bath’s buy-to-let investors. Older tenants often seek properties that are low-maintenance and designed to suit their needs. Semi-detached bungalows, particularly those located near essential amenities such as bus routes, GP surgeries, and shops, are in high demand. These homes are often preferred for their accessibility and practicality.

For landlords, catering to this demographic can yield excellent returns. Retirees typically value stability, making them reliable, long-term tenants. Furthermore, if a property meets their needs and provides additional conveniences like included maintenance services, they are often willing to pay a premium rent for the right home.

The Bigger Picture for Bath Landlords

As the population ages, the demand for rental properties suitable for older tenants is likely to grow as the Centre for Economics and Business Research (CEBR) stated in the report this summer that they expected the number of OAPs privately renting to double in the next decade. This trend presents both challenges and opportunities for landlords in Bath. By understanding the needs of this demographic and tailoring their portfolios accordingly, landlords can not only secure steady returns but also play a role in supporting the housing needs of an ageing community.

For the private rental sector, this demographic shift highlights the importance of creating housing solutions that balance profitability with social responsibility. As leaders in the Bath property market, we must champion approaches that meet these emerging needs while promoting long-term sustainability in the rental sector.

Bath Properties are selling, on average, in 55 days.

Posted on by prateek

Are you a Bath homeowner or Landlord looking to sell in 2025?

If the answer is yes, then let us have a look at, on average, how long it takes for you to find a buyer for your Bath property and how long the solicitors will take to help get you moved in.

Independent research from Denton House shows that in the last 12 months, looking at the 1.06m properties sale agreed and the 816k properties exchanged, on average it has taken 73 days from the property coming on the market to the property becoming sold subject to contract (SSTC). This is up 6 days from the 12 months ending in June of this year.

From this point, it has then taken 113 days from the sale being agreed to completion. This is an improvement on the 117 days for the 12 months ending June 2024. The journey is a long one and not guaranteed as nationally, only 53.6% of UK homeowners who placed their homes on the market in 2023/24, have sold and moved. The remaining 46.7% have come off the market unsold.

STEP 1 – FINDING A BUYER

The first stage is to engage an estate agent (naturally, we’re here to assist) who will work with you to develop a pricing and marketing strategy tailored to attract the right buyer for your situation.

Recent data shows that over the last 3 months, a property here in Bath has taken an average of 55 days to reach an agreed sale STC. However, the bath market is far from uniform and each area in Bath has its own micro-market where it can be longer or shorter, remember this is an average.

On top of this, every ‘type’ of house also reflects different data. Let’s break it down.

(Bath centre plus a 3-mile radius).

  • Under £100k – 10 days
  • £100k to £200k – 62 days
  • £200k to £300k – 41 days
  • £300k to £400k – 65 days
  • £400k to £500k – 60 days
  • £500,000 to £1m – 53 days
  • over £1m – 76 days

STEP 2: INSTRUCTING SOLICITORS AND MORTGAGE BROKERS

Here at Reside Bath, we have our own list of recommended solicitors and mortgage brokers that we can get you in contact with. As the seller, your solicitor will begin preparing the legal documents for your property with your input and then forward this all to the buyers solicitor.

STEP 3: LEGAL WORK AND SURVEYS

After receiving the paperwork, your buyer’s solicitor will request local searches from the local authority and/or land registry to ensure there are no planned developments that could impact on your property. These searches can take a few weeks to complete as during this time the buyer’s solicitor may raise some questions with your solicitor. Simultaneously, a surveyor will inspect your property to confirm to the buyer that it is structurally sound and valued at the correct purchase price.

STEP 4: EXCHANGE OF THE CONTRACTS

Once the mortgage, the survey and the legal paperwork are all cleared and have come back without any issues, both the buyer and the seller can sign the contracts, leading to the ‘Exchange of Contracts’ between solicitors. At this stage, the buyer pays a non-refundable deposit, legally committing both parties to the sale. There is now one last step.

STEP 5: COMPLETION

Completion is when the money and keys are transferred. Typically, this takes place one or two weeks after the exchange of contracts, although, since the pandemic, there has been a shift to completion being on the same day as the exchange of contracts. At this point, the buyer’s solicitor sends the purchase funds to the seller’s solicitor. Once received, the keys are handed over and the sale is completed.

So to reiterate, here in Bath, it currently takes 55 days to get to the end of step 1 (finding a buyer) and a further 126 days from instruction of solicitors to completion (steps 2 to 5).

So, anticipate waiting 5 to 6 months from the point the property goes live on the market to the day that you move out. If you’re considering selling your home here in Bath, or a landlord looking for your next buy-to-let property, feel free to reach out to us.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

For more from Reside Bath: Lettings and Estate Agency, click the icons below!

The Future of Buy-to-Let

Posted on by prateek

Upcoming future legislation and the recent announcements in the autumn budget have stirred up some anxiety for the future of Buy-To-Let (BTL). The chancellor’s decision to increase the Stamp Duty Land Tax (SDLT) from 3% to 5% for landlords purchasing additional properties initially suggested a grim outlook for the buy-to-let sector. This move, coupled with the introduction of the Renter’s Rights Act, which proposes to abolish section 21 and effect a landlord database, poses new challenges for Bath Landlords but also opens doors to new opportunities. Despite these new hurdles approaching, looking in detail at market insights reveals reason for some optimism among property investors.

Taxation Changes: Assessing the Impact

The Tory and now Labour government policy changes towards the BTL sector aim to cool an overheating property market. Raising SDLT aims to redirect investment opportunities toward first-time homebuyers priced out of the market. Although this policy aims to level the playing field, it has raised concerns among investors about shrinking profit margins and thus the overall attractiveness of investment in the property market.

Despite these concerns, maintaining the current (lower) capital gains tax rates has provided a buffer, easing investor anxiety and stabilising the investment climate. However, many landlords remain cautious, aware that the stability of these rates can change as part of broader fiscal adjustments.

The Renters’ Rights Act: A New Standard

The proposed Renters’ Rights Act will abolish section 21 evictions, which allows landlords to terminate tenancies without fault. This change aims to offer greater security to tenants and ensure that there is fair treatment across the whole rental sector. Whilst this move is a positive one for renters’ rights, it does require landlords to adapt to more rigorous property management and dispute resolution strategies. This potentially increases the cost and complexity of property management.

In addition to this, the act will likely introduce stricter property standards and tenant engagement protocol. These regulations will compel landlords to improve the quality of their offering and engage more transparently and effectively with their tenants.

Market Resilience – Looking into the local market in Bath

Despite the challenges posed by increased taxation and regulatory changes, the Bath BTL market remains resilient. Demand for rentals continues to grow in the city. The average rent in Bath in 2024 was £1,759 PCM a 29% increase from 2019. Meanwhile, the number of rental properties on the market has dropped by 41.7% between 2024 and 2019.

One might say that’s all well and good, but what will this extra 2% stamp duty cost the average Bath landlord? The average price of a Bath buy-to-let property in 2024 is £345,400, meaning:

The average Bath landlord will only need to pay an additional £6,908, which is only 3.9 months’ rent.

Adapting for Success in Bath

To navigate this evolving landscape, landlords need to adopt new strategies to conquer a changing market.

  • Diversification: Landlords can spread risk and tap into different markets by creating portfolios that include a mix of residential types and target different demographics.
  • Reduction of Rent Arrears: A study by Denton House Research a couple of years ago showed that landlords who don’t use a letting agent to find them a tenant have a 272.5% greater chance of that tenant being two or more months in arrears.
  • Rent Protection: The removal of Section 21 will mean Bath landlords will only have Section 8 to remove tenants if they aren’t paying their rent or being antisocial. This could mean that if the tenant decides they don’t want to move, there could be a good 6 to 9 months of no rent (if not more). Therefore, you must take on rental insurance.

Final Thoughts for Bath Landlords:

While the initial outlook for buy-to-let investments in Bath might seem daunting due to recent legislative and fiscal changes, the underlying market dynamics suggest a different narrative. The demand for quality rental properties will likely continue to remain strong and provide opportunities for those willing to adapt to new changes.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

For more from Reside Bath: Lettings and Estate Agency, click the icons below!

The New Stamp Duty Increase – Another hurdle for Bath Landlords.

Posted on by prateek

The last decade has been a relentless barrage of new regulations and tax changes. From the 3% stamp duty surcharge introduced in 2016 to section 24’s limitation on mortgage interest relief, then the new renters rights act slowly passing through the government and its removal of section 21 eviction notices and finally recent reductions in capital gains tax allowances –  it is fair to say that Buy-To-Let (BTL) investors have been under relentless pressure.

Now to add to this long list, the looming EPC regulation change, requiring properties to meet tougher energy performance standards, and the latest increase in stamp duty – raising its surcharge from 3% to 5%, there feels like another layer of financial burden on top of another, and it is no wonder that many landlords are feeling stretched to the limit and want to draw a line and sell up.

However, although these changes all seem daunting –  let’s take a step back and evaluate the bigger picture.

For landlords with a long-term view, this extra cost is unlikely to fundamentally alter the financial viability of their investment. This one-off expense becomes ‘lost in time’ when spread out of the lifetime of an investment. Yes, it is a higher upfront cost, and as with any additional cost, it is not welcome. However, for most BTL investors, this increase won’t dramatically change the fundamentals. In fact, it’s like when the initial 3% surcharge was implemented in 2016; back then, very few landlords were deterred, and the market quickly adapted.

Another reason to stay positive is the remarkable growth in the rental sector seen over the last few years. In the last few years, rents have risen by 8-10% (Largely fueled by wage growth and continued supply/demand imbalance in the market) and are set to continue growing thanks to minimum wage rises, further bolstering the case for long-term BTL investment.

Furthermore, capital gains tax, though perceived as a deterrent, was reduced last year for higher-rate taxpayers, from 28% to 24% on residential property, which helps retain more of the gains made on property sales. Labour has made no change to that.

In real terms, UK house prices are now 15% cheaper than three years ago, another boost to the incentive to invest in BTL. So, ultimately, for savvy investors, now is potentially a more favourable time to secure a good deal for long-term gain. There will be a higher upfront cost that will have to be absorbed, but with a long-term vision, your investment can definitely be profitable.

While landlords are certainly facing pressures from the new EPC regulations in the coming years, history shows that when the government mandated the EPC rating to an “E” in 2018, it tempered the impact to avoid a market disruption with a maximum of £3,500 maximum spend to reach that level. We’ll likely see a similar approach this time if it risks an excessive withdrawal of rental properties from the market.

Ultimately, the buy-to-let market remains one of the few investment avenues where one can achieve both income and capital growth.

Bath landlords may need to consider this stamp duty increase when negotiating purchase prices, but for those with a long-term perspective, this is simply another bump in the road.

While change is inevitable, BTL still represents a sound investment – especially for those who are in it for the long haul.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

For more from Reside Bath: Lettings and Estate Agency, click the icons below!

BATH PROPERTY MARKET OVERVIEW – OCTOBER 2024

Posted on by prateek

Are you a homeowner in Bath? Perhaps you’re an individual or an investor planning on moving, buying or selling a property in the next six to twelve months, or maybe you’re on the lookout for your next home, perfect for the family, but not up against any time scale. Either way, having a clear understanding of the current state of the market here in the city of Bath is vital to making an informed decision and the right one for you or your family.

By reading our blog you can stay up to date on the latest market trends and activities which will help you plan effectively.

WHAT KIND OF PROPERTY MARKET DOES BATH HAVE RIGHT NOW?

One of the best ways to determine the current state of the market is to determine whether the market currently sits in a ‘buyers’, ‘sellers’, or balanced market. We can achieve this by looking at the ratio of properties marked as ‘sold STC’ or ‘under offer’ compared to the total number of properties available for sale.

For example, if 41 properties are marked as “Sold STC” out of 100 available, then the market is operating at 41%. This ratio isn’t just a random figure – it’s a reflection of the overall sentiment in the market.

Here is how the percentages breakdown to determine the market –

  • Extreme Buyer’s Market (0%-20%): Buyers hold all the cards.
  • Buyer’s Market (21%-29%): Buyers have the upper hand but not as strongly.
  • Balanced Market (30%-40%): A stable equilibrium between buyers and sellers.
  • Seller’s Market (41%-49%): Sellers begin to gain the upper hand.
  • Hot Seller’s Market (50%-59%): Strong competition among buyers.
  • Extreme Seller’s Market (60%+): Sellers dominate, with properties moving fast.

These benchmarks play a critical role, influencing everything from listing prices to negotiating leverage.

THE CURRENT SNAPSHOT OF THE BATH PROPERTY MARKET:

  • Oct-16 – 51%
  • Oct-17 – 44%
  • Oct-18 – 37%
  • Oct-19 – 38%
  • Oct-20 – 46%
  • Oct-21 – 65%
  • Oct-22 – 64%
  • Oct-23 – 50%
  • Oct-24 – 51%

As is expected, it was a stronger market for Bath sellers in the post-Covid years, yet things have settled down now to levels seen before the pandemic, this current percentage of 51% puts us just into a hot sellers’ market.

WHAT THIS MEANS FOR BATH SELLERS:

If you’re looking at selling your property in Bath, the current market conditions require more patience and flexibility than in 2021. The days of the stamp duty holiday and properties flying off the market within days are behind us and this means that sellers need to focus on their property marketing and prepare for longer periods on the market.

A crucial step in getting your property sold in this market is to make sure that the property is priced correctly. Now that supply is outstripping demand, it is crucial that you price your property correctly to attract demand and not deter potential buyers.

This month, 57% of properties that came to the market sold STC and to completion. The rest left the market unsold. Nationally there has also been a downward trend in the number of properties selling. This is likely due to the impending budget and potential buyers wanting to secure a lower mortgage rate if inflation continues to fall.

In light of these changes, your marketing approach should be one that is well thought out and gives your property the best chance of selling. Utilising digital tools such as virtual tours, video marketing and social media posts can give your property a competitive advantage, and help gain more serious buyers in a market where securing interest is becoming increasingly challenging.

WHAT THIS MEANS FOR BATH BUYERS:

For buyers, particularly in sought-after areas in the city, the competition remains fierce. Securing a mortgage agreement in principle will give you a significant advantage over others in such a competitive environment.

In less competitive areas, buyers have more room to negotiate. You’ll likely find more flexibility on price and even some extras, such as fixtures, fittings, or other incentives thrown in by sellers eager to close a deal. The pressure to make quick decisions is reduced, allowing you more time to thoroughly consider your options.

It’s also worth remembering that most sellers are also buyers, so any loss you may experience on the sale side should be offset by a better deal on your next purchase.

External factors such as global economic trends, events, inflation, and interest rates will continue to influence the Bath property market in the coming months. Keeping an eye on these trends is essential for buyers and sellers alike.

Final Thoughts

As we enter November 2024, the Bath property market presents both opportunities and challenges for buyers and sellers. Understanding the subtle shifts in market dynamics is crucial for anyone planning a move, whether you’re a seasoned investor, a first-time buyer, or looking to relocate within the area.

Staying flexible, informed, and prepared will make all the difference in navigating this market. The experience of moving is as much about the journey as it is about reaching your destination.

RENTERS’ RIGHTS BILL UPDATE – WHAT BATH LANDLORDS NEED TO KNOW.

Posted on by prateek

On Wednesday, Parliament had the first hearing of the Renters’ Rights Bill, the revision by Labour of the previous government’s Renters Reform Act. There was a lot of information given during the hearing so let’s take a moment to take a look at what this could mean for your investments in the future.

Let’s begin by reassuring you that nothing groundbreaking was heard in these proposals that will catch you off guard. Most of what was heard was already in the previous bill by the Conservative government. Regardless, let’s break down what was involved and what might affect you as a Bath Landlord going into the future.

THE END OF SECTION 21 (‘NO FAULT’) EVICTIONS:

The big headline in the news outlets was the abolition of Section 21 evictions. For years now, landlords have been able to issue a section 21 notice, which gives tenants two months to leave the property through no fault of their own. Many have viewed this as unfair, particularly when they have been used to displace tenants who challenge landlords’ provision of poor living conditions or challenge rental increases they deem unfair.

Landlords won’t be without power. You will still be able to evict tenants who break rules under Section 8 of the Housing Act. This will cover situations such as failure to pay rent, damage to the property, and antisocial behaviour. The main difference here between a section 21 and a section 8, is that the latter requires a court order. The concern here is that in recent years these court orders have faced significant delays. However, the government has assured us that they will work to clear the backlog and streamline the process.

RENT INCREASES AND BIDDING WARS:

Another important point heard on Wednesday’s hearing was the ban coming in on bidding wars. Over recent years, some cities have seen an influx in rental bidding wars. This has been caused by over-demand and under-supply, which has then led to two people trying to offer more than the other over the asking rate of rent and leading to ‘a bidding war’. This new piece of legislation will make it illegal to ask or accept any offers from potential tenants over the advertised rent. This may stabilise the market, but it is something to keep in mind when setting rent prices for your Bath rental property.

In addition, in-tenancy rental increases will be limited to once a year and will no longer be allowed during the period of the fixed term of a tenancy. Whilst this ban may seem restrictive, it does provide a sense of stability for tenants and in turn may encourage longer-term lets.

ENERGY EFFICIENCY AND PROPERTY STANDARDS FOR BATH LANDLORDS:

 This proposed act introduces a stricter regulation on the quality and energy efficiency of rental properties. By 2030, landlords will need to ensure that their properties are given an Energy Performance Certificate (EPC) rating of C or above. (For more information about EPC Certificates see this article: How will the new EPC rules affect Landlords? (residebath.co.uk)). This is a long-term requirement, so although it may require investment at first, there is plenty of time to plan these changes, check the regulations, and plan accordingly.

The introduction of the Decent Homes Standard into the private rental sector means that Bath Landlords will also need to ensure their properties and maintained to a certain standard. This will particularly look at hazards such as dampness and mould, a common issue among Bath properties in particular. It is a move that is aimed at improving the overall quality of rental accommodation and whilst it may mean more responsibility for more landlords across the city, most landlords will already be meeting these standards.

GOING FORWARD:

If any one of these proposed changes is causing any concern then do not hesitate to get in touch with our team, we would be happy to help you understand these changes further. Being a team in Bath affiliated closely with the governing body, Propertymark, we are continuing our professional development and are constantly keeping up to date with the latest changes. Do also keep an eye on this blog page which is continually updated with all the latest news in the property industry here in Bath and beyond.

Is Bath becoming overcrowded, or are the numbers misleading?

Posted on by prateek

This wonderful city, with its rich heritage, stunning architecture and deep-rooted history has always been an attractive place to live. However, there has been recent concern that suggests the whole of the UK and thus Bath, may be facing a population crisis, impacting the quality of life for its current and potential future residents.

With 10,128 people living in Bath per square mile, the city appears to be bursting at the seams. However, is Bath truly overcrowded, or are these figures misleading?

UNDERSTANDING POPULATION DENSITY –

To put things in perspective, the UK has a population density of approximately 1,065 people per square mile. This makes it the second most densely populated country in Europe. If we then zoom into the local area, Bath covers a 9.4 square mile area and has a population of 94,800 people. This translates to 10,128 people per square mile. Now this sounds like an extremely high figure at first glance. However, for comparison, there are 33,465 people per square mile in the Lambeth Council Area in London.  

However, back in Bath, let’s break down these figures further. A square mile is a large area and is hard to comprehend, so let’s break it down into acres. 1 Acre is 64m² and is a more relatable unit of measure.

So with this in mind, Bath has an average of 14.43 residents per acre, as Bath covers 6,570 acres.

THE HOUSING SHORTAGE –

The real issue within the city at the moment isn’t just the number of residents in the area, it is the lack of available housing in the market.

To put it simply, there isn’t enough housing to accommodate everyone who wants to live in the city. This shortage is placing immense pressure on public services. Many parents end up struggling to secure their first choice of primary or secondary school for their children, and being able to find a local GP or dentist with available appointments is becoming increasingly difficult.

You would think that with all the new developments being built in and around the city, there would be plenty of new homes. The truth is that even with this number of new homes being built we still aren’t building enough. So why is this?

The source of the issue began back in the 1980s when councils stopped building houses. Before 1979, an average of 147,000 private homes were being built yearly. Since then, around 153,000 private homes have been built per year, which is not a lot different. However, the disparity comes when we look at the amount of homes councils were building per year before and after 1979. Pre 1979, councils were building an average of 165,000 homes per year, and since 1979 they have only been building 11,400 per year, a stark contrast.

In 2007, then Prime Minster, Tony Blair set out a target of 240,000 new homes per year to keep pace with population growth. The conservative government then adjusted this target to 200,000 homes per year. However, since 2012, the UK has been building only 175,641 homes per year. This shortfall has exacerbated the housing crisis, particularly in densely populated cities such as Bath.

Since their landslide victory in the recent general election, the new Labour government has announced ambitious plans to build 300,000 new homes per year. This new initiative aims to address the housing shortfall and improve housing affordability across the country.

The government’s commitment to this large-scale construction project reflects its focus on boosting the housing supply and supporting communities that are in need of new homes. However, assuming they find the people to build all these new homes, where are they going to be building them?

IS THERE SPACE FOR ALL THESE NEW HOUSES?

One might be left to wonder, if the government plans to build that many houses, where are they going to fit on a seemingly crowded island?

Interestingly, a recent government report reveals that residential properties cover only 1.2% of England’s landmass, increasing to 4.7% when we include these properties’ land and gardens. So, as well as homes, how is the rest of the land used in England:

  • Residential Houses and Flats: 1.2%
  • Gardens: 3.5%
  • Shops and Offices: 0.7%
  • Highways (Roads and Paths): 2.3%
  • Railways: 0.1%
  • Water (Rivers and Reservoirs): 2.6%
  • Industry, Military, and Other Uses: 1.4%
  • Open Countryside: 88.3%

This means that 88.3% of the land remains open countryside. If we factor in gardens, which are green spaces, the country is 91.8% green space. Thus, if we were to adopt the 300,000 annual target for the next 20 years, there is ample room to build those additional six million homes, and it would occupy only 0.3% of the country’s land.

SUSTAINABLE DEVELOPMENT:

Focusing back on Bath, the key to solving Bath’s housing crisis lies in sustainable development and innovative urban planning. Massive housing estates and towering apartment blocks are not the answer for this city. Instead, we need to consider creative solutions that allow these new developments to seamlessly integrate with the natural landscape here in and around the city.

THE ROLE OF TECHNOLOGY:

Modern technology can also play a significant role in addressing modern housing challenges. For example, prefabricated and modular homes can be constructed quickly and efficiently and reduce the strain on resources. These types of homes can be designed to be environmentally friendly, incorporating energy-efficient systems and sustainable materials.

Furthermore, advancements in urban planning software also allow for better simulation and planning of new developments, ensuring that they are both efficient and harmonious with the surrounding environment.

COMMUNITY INVOLVEMENT:

Public engagement and community involvement are crucial in addressing Bath’s current housing needs. Bath residents should have a say in how their neighbourhoods evolve. Collaborative planning can lead to more acceptable sustainable solutions. Fostering a sense of ownership of these developments can create pride among residents when developments are community-driven and with their local interests in mind.

FINAL THOUGHTS:

Bath’s apparent overcrowding is a complex issue that goes beyond mere numbers. While the city does have a high population density, the real challenge lies in the availability of housing and the efficient use of space.

By rethinking urban development and leveraging modern technology, Bath can accommodate its growing population without sacrificing the quality of life that makes it such an appealing place to live.

What are your thoughts on the matter? We would love to hear from you.

Property Insights: How to sell your property faster in 2024

Posted on by prateek

One of the most crucial indicators of the health of a property market is the length of time it takes to sell a property. The metric provides insight into supply and demand dynamics, and the market confidence that people have, and also is a market of the efficiency of estate agents in an area.

For homeowners in Bath and investors alike, a better understanding of these trends can help with decision-making. When properties sell quickly, it is indicative of a strong market and reflects a high demand. However, a long sale time often reflects either a surplus of properties on the market or decreased buyer interest.

So, in summary, monitoring the performance of the market is helpful when wanting to make informed decisions about buying or selling.

AVERAGE TIME TO SELL A PROPERTY IN BATH:

Whether you are a Bath Landlord looking to liquidate your buy-to-let investment or a Bath homeowner contemplating selling your home, understanding the latest market trends is crucial. Recent data from Q2 of 2024 provides us with valuable insight into how the local property market has been performing.

Recent independent research indicates that of the 624 Bath homes sold in Q2 of 2024, it has taken an average of 41 days to agree on a sale (Sold STC). This is a notable improvement on Q1 of 2024 where we saw an average time to sell STC of 56 days.

However, this is an average so not all properties sell in this time frame. It is important that we break down the time to sell STC into separate price brackets so we can see what types of properties might sell quicker than others.

PERFORMANCE BY PRICE BRACKET:

The time it took to find a buyer in Bath in Q2 of 2024 by price bracket:

  • Under £100k: 25 days
  • £100k-£200k: 41 days
  • £200k-£300k: 36 days
  • £300k-£400k: 34 days
  • £400k-£500k: 40 days
  • £500k-£1m: 54 days
  • £1m+: 44 days

The time it took to find a buyer on average across the UK in Q2 of 2024:

  • Under £100k: 69 days
  • £100k-£200k: 63 days
  • £200k-£300k: 69 days
  • £300k-£400k: 62 days
  • £400k-£500k: 64 days
  • £500k-£1m: 81 days
  • £1m+: 92 days

TIPS FOR BATH HOMEOWNERS TO EXPEDITE THE PROPERTY SALE:

If you are a Bath homeowner looking to sell quickly, then there are a handful of strategies you can employ to speed up the process.

  1. CHOOSE THE BEST BATH ESTATE AGENT: Selecting a reputable Bath estate agent with a proven track record for providing the best service possible is crucial. Ask all the agents you approach their average time to find a buyer. An experienced agent will be able to provide detailed information that can be tailored to your specific inspiration.
  2. Ensure your Bath Home is a high-quality listing: Make sure your property is listed on all the major property portals. Make sure any agent you use is getting professional photography as a standard as the first impression is crucial. Alongside this make sure that your property has a well-crafted description, allowing readers to better assess if the property is of any interest to them. All of these aspects allow a home to stand out and are vital when coming to a competitive market.  
  3. Effective Marketing: Given the increased number of listings coming to market in recent times (Over 200,000 more homes listed nationally now versus two years ago), additional marketing efforts can go a long way. When listing your property, consider additional marketing efforts that agents may offer such as premium listings, video tours/virtual tours, and social media promotional videos.
  4. Competitive Pricing: Price your property competitively. Overpricing can lead to longer times on the market, while a well-priced property can attract more immediate interest.
  5. Flexibility and Presentation: Be flexible with viewing times. Always make sure that your property is clean and presentable at any time when on the market. For potential buyers, first-time impressions are crucial and a well-maintained and presented property will impress buyers and can potentially expedite the sales process.

TIPS FOR LANDLORDS LOOKING TO SELL:

If you are a landlord looking to sell your rental property, then it is important to weigh up the pros and cons of keeping your tenants during the sales process.

PROS:

If your property is likely to attract another potential investor rather than a homeowner, then having a tenant in place can be advantageous as it can attract another potential landlord due to the appeal of having rental income from day one. Alongside this, tenants who have kept the property well maintained can showcase the value of the property well.

CONS:

On the other hand, if you have tenants in a property who may not cooperate with viewings and do not maintain the property to a high standard then this can deter potential buyers.

Overall, it is crucial to determine the approach that is best for your specific situation. It is crucial to consider factors such as current market conditions, and the type of buyers you are trying to attract. For example, if the property is in a high-demand area with a robust rental market then keeping tenants in may present itself as an attractive quality. However, if your target market is owner occupiers then keeping tenants is going to deter buyers and vacant possession might make the property more appealing.

PROPERTY MARKET CONTEXT:

It is important to note that these statistics only relate to the properties that have successfully sold. Nationally, only about 53% of properties that have been listed have ended up selling through to completion. This means nearly half the properties that come to market don’t achieve a sale. This is often due to poor marketing and agents overpricing the property. As committed property agents in Bath, we are here to help give you the best advice when it comes to either listing your property for rental or for sale and would be happy to help any time.