Everything you need to know about the Bath rental market in January 2022. This month: just how bad is the Bath property shortage?
Tenant demand has far exceeded property supply for the last 12 months, but just what is the extent of this property shortage? As Reside’s Toby Martin discusses in the above video, the number of rental properties on the market at any one time is currently 35-40% below the average for the last decade.
This month’s round-up also includes news of upcoming smoke and carbon monoxide alarm regulations that landlords should be aware of. Be sure to watch the video for full details.
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
Bath landlords helped by ultra-low mortgage rates and a stamp duty holiday
Yet, some landlords anxious about a possible end to no fault evictions
New EPC rules could cost landlords £10,000+ per property
In this article, I will look at what happened in 2021 in the Bath buy-to-let property market and give you my opinion as to what lies ahead for Bath landlords in 2022 and beyond.
On a positive note, Bath house prices have rocketed, rents have risen faster than inflation, at the start of the year we had the benefit of a stamp duty holiday and finally, ultra-low mortgage rates, meaning Bath landlords had lots to be happy about in 2021.
On a more cautious note, the laws regarding renting are currently being debated in Parliament which will see the end of no-fault tenant evictions, and changes in regulations will require landlords to make their buy-to-let rental properties more eco-friendly at a cost of up to £10,000+ each.
So, let’s have a look at these points …
Bath Rents will Continue to Rise in 2022
Bath buy-to-let landlords have seen the average rent of a Bath rental property rise by 6.5% in the last 12 months.
The number of Bath properties available to rent on the property portals (e.g. Rightmove, etc.) at any one time is roughly 35% to 40% below the last decade’s average, meaning there is greater competition for each rental property.
Demand has increased for several reasons.
Firstly, some homeowners cashed in on the high prices, sold up and moved into rented property.
Secondly, some Bath buy-to-let landlords have also cashed in on the buoyant property market and sold their rental property when their existing tenant handed in their notice.
Finally, the rental sector has an inverse relationship to the state of the general British economy, meaning with the uncertainty in the British economy in the early part of 2021, this meant more people decided to rent rather than tie themselves into a mortgage.
Looking at the supply side of the Bath rental market, in the short term, rents will continue to grow as some Bath landlords are abandoning the rental market – some because of the impending regulation changes which I will talk about later, and others with the natural flow of people cashing in their investments on retirement.
With increased demand and restricted supply, this will only lead to competition becoming more severe between renters, thus making Bath rents continue to rise.
Bath House Price Growth Will Slow
Bath house prices grew by 15.3% in 2021, but slower growth is anticipated during 2022
For those that own property, the way house prices grew in 2021 surprised most people.
Bath house prices, according to the Land Registry, grew by 15.3% in 2021, with the typical Bath home reaching £425,500.
Many local landlords have been helped by this increase in Bath house prices and will be in a place to cash in on those capital gains by either selling their buy-to-let property (as mentioned in the previous section) or releasing some equity by re-mortgaging.
Whether Bath house price rises carry on at such a rate in 2022 will mainly depend on whether the imbalance between the number of properties that come on to the market (supply) is by the number of buyers (demand).
Most commentators believe that nationally house prices will be between 3% and 5% higher by the end of 2022 and I can see no reason why Bath house prices won’t be in that range by the end of the year either.
Mortgage Rates Will Rise
The reduction in tax relief for Bath buy-to-let landlords with mortgages in the last five years hit some landlords hard, yet this has been tempered by the inexpensive ultra-low mortgages available to buy-to-let landlords.
Yet even with the Bank of England increase in base rates, landlords with big deposits of 40% or more can benefit from low rates. For example, at the time of writing, you can get a BTL mortgage at 1.49% fixed for 5 years with a 40% deposit (meaning borrowing £180,000 on a £300,000 purchase would only cost you £719 per month on a 25-year mortgage – or £224 per month on interest only).
However, those with only a 25% deposit must pay slightly more, but only at a mortgage rate of 1.64%… Who can remember mortgage rates of 14% to 15% in 1992?
With inflation rising, the Bank of England has already indicated further interest rate rises are on the cards. I suspect they will be around the 1% mark by Christmas 2022. Therefore, if you are one of the one in five landlords on a variable rate mortgage, your margins will be squeezed as your variable rate mortgage will rise in line with the Bank of England interest rate rise.
Maybe it’s time to consider fixing your mortgage?
The End of No-fault Evictions?
The Renters’ Reform Bill in England and The Renting Homes Act in Wales are both set to abolish Section 21 (no fault eviction). Section 21 laws allow landlords to take back possession of their rental properties without having to prove fault by the tenant.
Yet in 2022, Westminster will issue plans for a change of this law which will probably incorporate the eradication of Section 21, which would signify a major change in the balance of power between the landlord and tenant.
Some doom mongers are worried that with the abolition of Section 21, landlords may be unenthusiastic about renting and therefore sell up and leave the rental sector altogether. Yet these people said the same when tax relief for landlords was changed five years ago.
The Scottish equivalent of Section 21 was abolished at the end of 2017.
At the time, there was some anxiety about how this would affect the Scottish rental market, as anxious landlords and letting agents felt that they could lose control of their rental properties under this new law. Nonetheless, just over four years later, the rental sector has not collapsed in Scotland. The buy-to-let market remains upbeat, and there are signs that a Scottish landlord’s right to evict their tenant has been reinforced by these changes in the law.
The reason the Scottish changes worked was because the new grounds for repossessing rental properties was clear and wide-ranging. The Scots sped up the slow and unwieldy eviction process where the landlord had a legal and genuine reason to re-claim their property.
All I hope is the same changes to court procedures are made south of the border.
New EPC Rules Could Cost Bath Landlords £10,000+ per Property
The law currently stands that landlords need an Energy Performance Certificate (EPC) with at least a rating of E.
Westminster is anticipated to increase the EPC requirement for private rental properties in England and Wales to an EPC rating of C for all new rental tenancies by 2025/6, and for all existing tenancies by 2028, whilst Scottish landlords are also expected to see energy efficiency measures in their new proposed Housing Bill.
The problem is 1,959,045 of the 2,965,455 registered rental properties on the EPC database have an energy rating of D or below.
To take a property from an EPC D rating to a C rating might only cost a few hundred pounds, yet the average for all rental D and E rated properties has been calculated at just over £10,000 per property.
My advice to every Bath landlord is to look at the full EPC report of their rental property (and if you haven’t got it, contact me and I will send it to you – whether you are a client or not) as that will tell you whether this will be a big or small job.
Renovating the UK’s rental stock to meet the Government’s carbon neutral targets will be a big trial for landlords. There is talk of exemptions, which may apply to a great many Listed buildings, as there currently is for the existing minimum EPC E rating – yet only time will tell on that front.
Maybe those landlords currently buying properties to add to their rental portfolio should reconsider their buying strategy? In the past, it has been normal for Bath buy-to-let investors to be attracted to the inexpensive older properties that need an overhaul. However, with the potential energy efficiency laws coming into the game, it’s rational to suggest that buy-to-let landlords will be more predisposed to buying slightly newer properties rather than have the cost for the upgrades to meet the potential energy targets.
Conclusion
Roll the clock back 20 years and making money from buy-to-let in Bath was as easy as falling off a log. Yet with increased legislation and regulation, together with the changing dynamics of the British economy and the requirements tenants want in a rental property, making money won’t be as easy over the next 20 years.
It amazes me that 11 out of 20 landlords do not use a letting agent to help them with their rental portfolio, considering the cost can be offset against your tax.
Moving forward, savvy landlords will increasingly utilise their letting agent not only to collect the rent and manage the property, but also build up their portfolio to withstand the regulatory and demographic changes on the horizon, and to ensure that their investment is fit for purpose in the medium to long-term.
If your existing letting agent does not offer such advice, or you are a self-managing landlord, let’s have a chat about the future of the Bath rental market.
Whether you are a Reside client or not, if you would like me to look at your rental portfolio and see where you stand, then drop me a line and maybe we can meet for a coffee (or we can meet virtually over Zoom) to discuss the matter – all at no charge.
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
Finding your next Bath property, be that as a buy-to-let landlord or for yourself to live in, can sometimes be a scary task. You are possibly making one of the biggest purchases of your life, and you want to ensure you make the right choice.
Buying your next property is all about finding a Bath property with the features that match your requirements. However, what might be important to you as a homebuyer, might not be as important to other homebuyers.
Some features will be red line must haves, whilst other features might be more negotiable, yet understanding what your requirements need to be, will make it easier to find the home of your dreams.
Let’s look at my top 11 rules you need to consider when buying a property in Bath.
1. Location, Location, Location
You can change many things within a property, but location isn’t one. They say you should buy a property for the things you can change. From Lansdown to Combe Down, Newbridge to Larkhall, go and visit the different neighbourhoods of Bath. Don’t just drive through them, walk through them at different times of the day. Look at weekdays as well as weekends. Think about transport links with access to bus routes, arterial roads. If you have children (or your tenants may have), think about school catchment areas for primary / secondary schools.
2. Bath Bedrooms
Did you know there are 107,751 bedrooms in Bath?
Well, you do now! Anyway, the number of bedrooms is a very significant consideration when buying your new home. If you need bedrooms for your children, the location of the bedrooms could be an issue. Depending on the age of any children, you might not want them to be a long way from the master bedroom, or if the children are teenagers, the opposite could be true. Bedroom size is also important. Is there enough space for children to study or have wardrobes? Do you need bedrooms for an office? If office space is required, you might want to consider a property with one less bedroom and one more reception room – and it will probably be a little cheaper. All things to consider.
3. Potential Future House Price Growth
The type of house you buy will determine how it increases in value in the future. Now this shouldn’t be the main consideration, yet it’s important to consider.
Since 2001, the different types of property in Bath have risen by different percentages.
Bath detached properties have risen by 156.7%
Bath semi-detached properties have risen by 166.2%
Bath town houses / terraced properties have risen by 191.7%
Bath apartments / flats have risen by 148.4%
On a standalone point for Bath landlords, the level of rent and yield are important considerations for your Return on Investment (ROI). There tends to be an inverse relationship between capital growth and yield (i.e. Bath properties with higher capital growth tend to have lower rental yields).
I am regularly sent Rightmove links by Bath landlords, keen to know a prospective purchase’s rental worth so that they can calculate their yield. Please feel free to email me a link to the property you are thinking of purchasing; I will be able to give you a very quick estimate of its rental value, completely free of charge and obligation.
4. The Overall Interior Size of Your Future Property
On average a person only views five houses before they buy a house and only spends around 20 minutes in each on a viewing. Therefore, I would advise that you have a good idea about the size of home you require before you start your search. If you have a big family you are going to need a bigger house obviously, yet you still need the budget to afford to buy the bigger home.
One great idea is to calculate the square metreage of your potential home. Ask to view the full copy of the Energy Performance Certificate, as it has the size of the property in square metres.
Bigger houses tend to cost more money to run with utility bills and council tax.
A final thought on size is the question of whether your family is likely to grow in the next decade? Will you have more children or is a parent coming to live with you?
5. The Price You Will Have to Pay For Your Next Bath Home
In the last 12 months, the Bath property market has remained buoyant as Bathonians were forced to spend more time at home. Therefore, they looked for more space… but what did they have to pay for that privilege?
303 Bath detached properties have sold for an average £692,100
333 Bath semi-detached properties have sold for an average £420,400
503 Bath town house / terraced properties have sold for an average £447,700
211 Bath apartment / flats have sold for an average £343,300
Look at the property portals (e.g. Rightmove, Boomin, Zoopla and OnTheMarket) and search for Bath property that is both available and sold subject to contract. Get a feel for asking prices of the properties that are sold subject to contract as these will give you a good idea what they roughly sold for. Again, if you are not sure, pick up the phone or drop me a line.
6. Bathroom(s)
Check the bathroom for water leaks. Do the toilets flush OK, do the taps drip? Is there any mould? And do you need more than one?
7. The Lounge / Living Room
You will undoubtedly be spending a lot of time in the lounge / living room, so it needs to meet your requirements. Do you need a dining area? Does the design and arrangement of the room suit your lifestyle (or your tenant’s). Will you need new furniture? Are there enough electrical sockets? What are the carpets like? That goes for all rooms.
8. Central Heating for your Property
What type of central heating system is present, and does it meet the requirements of you and the home? The Energy Performance Certificate (EPC) will tell you how energy efficient the property is and how much it will cost to run. You would be amazed how few buyers ask to see the full copy of the EPC – yet you have the right to view it – always ask the estate agent for a copy or download it for free from the Government website.
9. The Outside
The outside space of your future Bath home is also something you need to reflect on before you start your search. What sort of back garden do you want? Do you want low maintenance? Do you want a bigger garden? You also need to ensure the outside of your next home is in great condition. Yet, if it’s a ‘do’er-upper’, does the price allow for those works to be done?
10. The Loft & Vault
Another aspect to consider when buying a property is the loft (or even the vault / basement if it has one). In both, look for water damage that could mean problems in the future whilst in vaults / basements, a musty smell could be poor ventilation meaning dry damp could be an issue. Also check for insulation in the loft (the Energy Performance Certificate will tell you if it’s up to standard).
11. Garage / Off Road Parking Space
How many cars do you have in your family? Can you park them all on your drive? Visit the property during the day, the evening, and weekends to see how the parking provision changes. If the property has a garage, can it be used for something else?
These are my top 11 rules – please let me know if you have others I haven’t considered.
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
You may have seen recent reports detailing how one of the most prominent estate agents in the UK had left its landlords open to fines of between £9million and £30million in the last few days.
This is because they allegedly failed to send some paperwork to their tenants when their tenancy started.
This has had many Bath landlords picking up the phone to me to ensure they are compliant with their Bath rental property. So, what should every Bath landlord consider to ensure they are compliant and won’t be fined?
To start, there are nearly 170 pieces of legislation to comply with; these are some important ones that Bath landlords should consider.
Registering your Bath tenant’s deposit
Every Bath landlord (or their agent) needs to register the tenant’s deposit. It is believed that one in six tenants’ deposits are not registered, leaving the landlord (not the agent) liable to a fine three times the amount of the deposit, plus making it very difficult to evict them.
When your Bath tenant pays their deposit, it has to be protected in one of the government-approved schemes within 30 days.
Yet even if you do register the deposit, you must also give your tenant proof of being in the scheme. That must include information on which of the three schemes (The Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme) protects their deposit and how your tenant can get their deposit back at the end of the tenancy.
Gas Safety Certificates
Every Bath landlord must offer a safe rental home for their tenants. Every Bath rental property must have an annual Gas Safety Certificate. The certificate, issued by a qualified and registered Gas Safe engineer, is only valid for 12 months. All certificates must be retained for 24 months, and give your tenant a copy of the existing certificate.
EPC for your Bath rental property
The Energy Performance Certificate (EPC) is just like the colour-coded energy rating diagrams you see on fridges and washing machines, albeit it’s for your rental property. If you don’t have an EPC, you can’t rent your property. Also, since this summer, rental properties have had to achieve a minimum energy efficiency rating of ‘E’. If your property doesn’t meet this requirement, you’ll be unable to rent it out (although there are a handful of exemptions). Again, you also must give your tenant a copy of the up-to-date EPC certificate.
Right to rent checks
Every Bath landlord can only let their property to a tenant who has the legal right to rent in the UK. You have the legal responsibility of checking the prospective tenant’s identification and confirming that the tenant is legally in the British Isles. If you let your property to someone in the UK illegally, you might face a substantial fine.
Anything else Bath landlords should be aware of?
How about…
Smoke alarms
Licensing
Health and Safety
Client Money Protection
Homes (Fitness for Human Habitation) Act 2018
Fire safety risk assessment
Legionella risk appraisal
Electrical Safety checks
That’s just the tip of the iceberg. The list goes on…
As you can see, there are many things a Bath landlord must consider when it comes to being legal. Yet, apart from a logistical nuisance there are actual financial penalties involved if you do not observe with all your landlord obligations.
Final Thought for all Bath Landlords
Bath landlords can make sure they are fully compliant by having a free Bath Landlord Compliance Health Check with us at Reside. We can, within a couple of days, give you peace of mind that you are compliant, be you a landlord that manages your own Bath property or even with another agent (because being with one of the most prominent estate agents in the UK was not a guarantee the landlords would be safe from prosecution).
Call me, Toby Martin, on 01225 445777, and let’s have a no-obligation chat. What have you got to lose, versus you potentially losing thousands of pounds… the choice is yours!
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
Everyone should be doing their bit to help reduce the UK’s carbon footprint on the globe – yet the question is, is that burden being put too much on the shoulders of Bath landlords with potential bills of £7,600+ in the next four years?
The background – the UK has obligated itself to a legally binding target to be carbon neutral by 2050. One of the biggest producers of greenhouse gasses is residential homes.
To hit that carbon-neutral target (as one-fifth of the UK’s carbon output comes from residential property), every UK home will need to achieve a minimum grade of ‘C’ on their Energy Performance Certificate (EPC) by 2035. Each EPC has a rating between ‘A’ and ‘G’ – ‘A’ being the best energy rating and ‘G’ the worst – like an energy rating on a fridge or washing machine.
All UK rental properties are required to have an EPC. From April 2020, the Minimum Energy Efficiency Standards (MEES) regulations have required all private rental properties (including rental renewals) to have a minimum EPC rating of ‘E’ or above.
Yet new legislation being discussed by the Government’s Climate Change Committee has suggested that landlords should play their part and increase the energy efficiency of their private rented homes. Sounds fair, until you dive into the details.
The Government is mooting the idea that all new tenancies (i.e. when a new tenant moves in) in private rented properties should be at an EPC rating of ‘C’ or above by 2025 (and all existing tenancies by 2028). The issue is…
72.34% of all private rented properties in Bath and North East Somerset have an EPC rating of ‘D’ or below.
The problem is that some Bath landlords will find it very expensive, neigh impossible, to improve the energy efficiency of their Bath rented properties, especially those Bath landlords who hold older housing stock such as terraced properties built in the 1700s and 1800s. These Georgian and Victorian terraced houses never perform well on EPC ratings as they have solid walls and single glazing.
Now, of course, you can improve the EPC rating of a terraced house by improving roof insulation, boiler replacement, solar heating, and high-grade uPVC windows. Yet, with some terraced houses, there will come the point where you will be unable to get to the hallowed ‘C’ rating without installing external or internal wall insulation, sometimes even floor insulation.
With wall insulation costing between £5k and £15k and floor insulation around £5k…
the bill to improve all Bath and North East Somerset’s private rented properties will be a minimum of £75,704,760.
But before I talk about what the options are for Bath landlords, here’s the weird part about EPCs. An EPC rating is calculated on the cost of running a property and not the carbon output or energy efficiency, despite its name.
My advice to Bath landlords – although it’s correct to create a future strategy, all I can say at this point is ‘more haste, less speed’. These rule changes are only a discussion paper, and it remains open for consultation by any member of the British public until 30th December 2021. That means the Government’s strategies and tactics may change.
Given that 57% of private rented properties are below a ‘C’ EPC grade, it is hard to believe the Government could achieve this without making big cash grants available.
For example, there is presently a cap of £3,500 for energy improvements that Bath landlords have to spend to get it to the existing EPC ‘E’ target grade on private rented homes (i.e. if you have a privately rented home at an ‘F’ or ‘G’ EPC rating, you only need to spend a maximum of £3,500 as a landlord on improving your EPC rating). So, if the current rules allow an exemption to the EPC renting rules, if a Bath landlord can’t improve their Bath property enough, conceivably, could this be extended?
So, what are Bath landlords’ options?
One thing you could do is put your head in the sand and hope it all goes away!
Another thing some savvy Bath landlords do (be they my client, clients of other letting agents in Bath or even self-managing landlords) is to sit down and plan a strategy for their Bath rental portfolio. I print off all the EPCs of their rental portfolio, look at the recommendations, then discuss a plan to ensure they are covered, whatever the Government decides to make the new EPC rules. Like all things in life, plan for the worst and hope for the best.
If your agent isn’t offering that service, please drop me a line because I would hate for you to miss out on the advice and opinion that so many Bath landlords have already had from me. The choice is yours.
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
Everything you need to know about the property rental market in October 2021. This month: an in-depth look into Bath’s rental property shortage.
More Reside records fell by the wayside during October, with more properties let over the course of the month than any preceding October since the company’s inception. Our average letting time was just 3 days between placing the property on the market, and having an offer accepted by the landlord. During the month of October, we achieved an average of 101% of the advertised rent.
This month’s data once again bears out the recent pattern of property supply being vastly outweighed by tenant demand, but exactly how in-demand are Bath’s rental properties?
Bath Property In High Demand
At the time of recording the above video, a quick Rightmove search revealed just 50 properties currently on the market across the entire city, with only 15 placed on the market in the last seven days.
As Reside’s average letting time of 3 days suggests, if a property has been on the rental market for longer than 7 days in the current climate… something is wrong. It could that the property is overpriced or poorly marketed – either way, the landlord owes their letting agency a serious conversation.
So just how much competition is there for these 15 recently launched properties?
In the above video, General Manager Toby Martin looks closely at the Rightmove data of two apartments that we recently let for £1,200 per month. One property let after just one day; the second apartment was launched on a Friday and let agreed on the Monday. Between them, they amassed around 1,500 views on Rightmove between going on the market and an offer being accepted by the landlord.
Two apartments. 5 days on the market between them. 1500 views on Rightmove. It’s no wonder that properties are letting so quickly, and that rents have been pushed upwards.
Will The Winter Market Slow Down?
Traditionally, both supply and demand dwindle during November, before almost shutting up shop entirely during December. It is likely that supply to the market will reduce even further over the next couple of months, as tenants bed in for the winter and delay home moves until the New Year.
What is unlikely to change, however, is the discrepancy between supply and demand. For every property on the market during November and December, there are still bound to be multiple interested parties. The property shortages of the past few months will have left a large backlog of home hunters who have been unable to secure their next move.
In that respect, it will still be a buoyant climate for landlords bringing their homes and investments to the rental market.
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
Rishi Sunak’s budget holds little of interest for landlords, but a support scheme is announced for vulnerable tenants
For landlords, the most salient parts of the Autumn Budget were the omissions, rather than Rishi Sunak’s raft of announcements.
There was no mention of Capital Gains Tax, nor was there any review of stamp duty. This may come as a relief to landlords, many of whom had been expecting the Chancellor to announce increased property taxation and red tape.
This comes after months of lobbying by ARLA Propertymark and other organisations, who have long called for more financial support to be made available to tenants at risk of eviction as a result of the Covid pandemic.
“The £65m funding for those in rental debt provides some support but the devil is in the detail. Almost four million low-income households are in arrears with their household bills, yet this money will be targeted at those who are most at risk of homelessness, excluding a significant number of others from help.” ARLA Propertymark
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
Hours: This role can be adapted to suit part-time and full-time applicants Salary: £18-20k per annum
Reside is an independent, award-winning letting agent whose innovative, ethical and successful service is highly praised by its tenants and landlords.
We are looking for a motivated, approachable and conscientious candidate to support our busy property management team, helping to oversee the upkeep of our managed property portfolio. This is a varied and rewarding role, which we can adapt to suit part-time and full-time applicants.
In this role, you will:
Instruct property maintenance when required and manage repairs through to completion
Liaise with tenants and landlords, providing updates of maintenance jobs
Monitor our CRM system to ensure records are kept up to date
Carry out property visits, recording condition and meter readings
Assist with key management, collecting and delivering keys to local contractors and providing access to properties when required
Record property floor plans
Provide support to a busy team
Perform general office duties including filing, scanning, and typing
Requirements:
A compassionate and approachable manner, with the ability to form a good rapport with our clients
You can command a busy workload, offering and accepting support from your colleagues
Confident computer user, especially MS Office
A clean full UK driving licence
Industry experience is not required
Benefits:
Salary from £18,000 to £20,000 per annum, based on your experience
The opportunity to obtain an industry qualification
Headspace account to encourage a healthy and mindful approach to you work
This role can be adapted to suit part-time and full-time applicants.
If you are interested in applying for this role, please send your CV and a covering letter to ben@localhost.
The latest in lettings, from Bath and beyond. This month: pets, notice periods and the Renters’ Reform Bill
Over the course of this year, we have firmly established that demand from tenants is comfortably exceeding property supply, with many tenants struggling to secure their property of choice. Reside’s vital statistics over the last month bear this out – average letting time of 3.5 days, achieving an average of 102% of the advertised rent, and agreeing more lets over the course of September than in any other month since the company’s inception.
At this time of year, we usually urge landlords to bring their property to the market as quickly as possible, to avoid the quiet winter market. Whilst that is still advisable, it is difficult to image demand dwindling during November and December, as there are still a great many home-hunters who have been unable to secure a property.
Supply is bound to reduce further between now and the end of the year, meaning that there will still be fierce competition for those properties that do come to the market.
Pet Deposit Peeve
The government has clarified that it will not revisit the deposit caps that were mandated by the Tenant Fees Act. Conservative MP and pets campaigner Andrew Rosindell has led calls for reforms that would make it easier for tenants with pets to secure properties, and the reintroduction of additional pet deposits was widely considered to be most practical way to achieve this.
Deposits are currently capped at 5 weeks’ rent, or 6 weeks’ for high rent properties. This has seen the majority of landlords adopt a more cautious approach to tenants with pets, due to concerns about additional damage being incurred and not adequately covered by the deposit.
Notice Periods Return to Normal
Notice periods finally returned to their pre-pandemic levels on the 1st of October, for the first time since March 2020. Landlords, who had previously been required to serve three, then six, then four months’ notice on their tenants under Section 21, are again able to serve two months’ notice to bring their tenancy to an end. Tenants, whose notice period remained unaffected throughout the pandemic, can serve one month’s notice to end a tenancy.
Reform In The Pipeline
This year’s Queen’s Speech put us on notice that a significant White Paper would be delivered by the government this Autumn, which will propose significant changes to the private rented sector. Whilst recent comments by Housing Minister Eddie Hughes from the Department of Levelling Up, Housing & Communities have suggested that these are still some weeks away, the minister did clarify that lifetime deposits and Section 21 are very much on the agenda.
We want to get this right. For example if we start from a position of ‘Landlords Bad/Tenants Good’ then the approach might be too stringent for landlords and they’ll be forced out of the market. We don’t want that.
Eddie Hughes MP
Lifetime deposits will allow a tenant to port a single deposit between tenancies, avoiding the need to pay a new deposit at the start of each new tenancy.
Section 21, also known as ‘no-fault evictions’ has long been in the crosshairs of the government, but it remains to be seen how the evictions system will be reformed.
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
You may have seen recent reports detailing how one of the most prominent estate agents in the UK had left its landlords open to fines of between £9million and £30million in the last few days.
Everyone should be doing their bit to help reduce the UK’s carbon footprint on the globe – yet the question is, is that burden being put too much on the shoulders of Bath landlords with potential bills of £7,600+ in the next four years?
