The renter’s rights bill was published last week. It is important to note that the following is not yet law as it must be passed through parliament. Many Landlords are apprehensive about these proposed sweeping changes to the private rental sector. So, let’s explore the bill’s key points and what this means for tenants and landlords.
THE ABOLITION OF SECTION 21 NOTICES –
Section 21 evictions have been long used by landlords as a means of terminating a tenancy agreement without any reason. This system will be replaced by a new measure that will only permit evictions under certain conditions, such as rent arrears or the landlord wishing to sell up. Whilst this may initially be seen as restrictive, it has been on the horizon for a while as this was also a measure proposed in the Renters Rights Act, the previous bill by the conservative party, and we have previously spoken about the limited impact this change may have.
Going back to the point, landlords in Bath and beyond will now need to follow stricter legal grounds for eviction and ensure that they are treating their tenants fairly and making sure they are not displacing their tenants.
RENTAL INCREASES AND BIDDING WARS –
Rent control mechanisms in the Bill aim to standardize rent increases across the board. It has been proposed that landlords will only be allowed to raise rents once a year and tenants will have the power to challenge this, if they deem the rent increase as excessive, at a tribunal. The aim here is to prevent unfair rental hikes from being used as an undercover eviction. Despite this, Landlords will still be free to increase the rents in line with market rates.
Another significant proposed change is the prohibition of bidding wars. In recent years since the rental market demand has far exceeded supply, there has been an increase in these rental bidding wars where tenants are bidding higher than the advertised rent to secure a property they may know has been garnering a lot of interest. Under the Renters Rights Bill, this practice will be outlawed. Lettings agents and Landlords will be forced to publish a clear asking price for rent and will not be allowed to accept offers over this rate.
DECENT HOMES STANDARD AND AWAAB’S LAW –
The introduction of the Decent Homes Standard into law aims to make sure that all properties in the private rental sector abide by a minimum safety and quality standard. Landlords in Bath and beyond will need to make sure their properties comply with these standards or they will risk facing penalties. This is an expansion of the existing standard that applies to social housing, ensuring those in the private rental sector are entitled to the same level of safety and decency in their homes.
Awaab’s Law, named after a traffic case of a child who died from exposure to mould in social housing, will also be extended to the private rental sector. This will place a legal requirement on landlords to address serious health hazards within a specified time frame. Whilst this may seem like a major regulatory burden, many landlords are already maintaining these standards so will find compliance with these new regulations relatively straightforward.
RENTING WITH PETS –
Another headline from the bill is the enhanced ability for tenants to keep pets. Landlords will no longer be allowed to refuse pet requests without reasonable grounds. However, to address concerns about the potential damage a pet may cause to the property, landlords can now require pet insurance to cover any damage.
STRENGTHENED LOCAL AUTHORITY POWERS –
Local councils will be granted additional powers to enforce the rules laid out in the Bill. This included the ability to levy fines of up to £7,000 for initial breaches of the above, and escalating to £40,000 for repeat offences. Whilst these new powers may be daunting, they are largely targeted at rouge landlords, and those who already comply with existing regulations are likely to be unaffected.
If you have any further questions, then do not hesitate to get in touch and if you would like to read further into this then click the link below ⬇️
It’s been a tough week to keep up with exactly what’s happening to Section 21. Although this video was recorded shortly before the PMQs during which the Prime Minister appeared to confirm that Section 21 would be abolished, it’s pretty much hit the nail on the head (if I do say so myself!).
It’s been a tough week to keep up with exactly what’s happening to Section 21. Although this video was recorded shortly before the PMQs during which the Prime Minister appeared to confirm that Section 21 would be abolished, it’s pretty much hit the nail on the head (if I do say so myself!).
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.
Some Bath landlords could face bills of between £11,000 to £14,000 as Michael Gove, the Housing Minister, declared an attack on poor quality private rental homes.
2,114 Bath rental properties could require upgrading. The Government announced in their ‘Levelling Up’ White Paper last week, they plan to introduce a new minimum standard for private rental properties.
Also, the White Paper wants every landlord in Bath (9,075 of you) to go on a Landlord Register and proposes the removal of Section 21 no-fault evictions.
But despite what some might think, these proposed changes are not another nail in the buy-to-let coffin for Bath landlords. Here is why…
On the face of it, yes, it could be seen as another attack on the humble Bath landlord, having to spend money on their properties and get tangled up with red tape on a register and then having no-fault evictions removed.
Yet, as always, the devil is in the detail…
This ‘Levelling Up Bill’ is a White Paper. White Papers are policy documents created by the existing Government that set out their future proposals for legislation. Many White Papers don’t even make it to the House of Commons to be debated on, and even then, it needs to be voted on by both Houses of Parliament before becoming law. Any changes are at least two or three years away, and that’s assuming it gets debated and subsequently approved.
Many have said the White Paper is supposed to lay out how to resolve the problem of rebalancing the UK economy that is suffering from the highest level of regional inequality than any G8 country. This is a gargantuan challenge…
Yet the Levelling Up White Paper reads very much like a shopping list of great ideas without the means to pay for it.
One of the 12 points in the White Paper was focusing on housing, with a plan to introduce a new minimum standard for rental properties, a landlord register and the removal of no-fault evictions (as an aside, there was also a mention of a possible reintroduction of Home Information Packs – remember those from 2009!).
So, what does this mean for the landlords of the 9,075 private rental properties in Bath?
Sub Standard Rental Properties
The proposed changes will mean rental homes in the private sector will have to meet two specific standards that the existing 6,848 social housing homes in Bath currently need to meet.
The first is called the ‘Decent Homes Standard’ (DHS) and the second, the Housing, Health and Safety Rating System (HHSRS) evaluation.
Looking at data from the Government, there are 2,114 private rental properties in Bath that are considered substandard under these two measures and each one would cost between £11,000 and £14,000 to bring up to the prescribed standard. That means…
The estimated total cost to improve the 2,114 Bath properties, that are considered substandard, could be as high as £29,602,650.
Yet both systems of standards (DHS & HHSRS) have been slated by many (even by the Government itself).
The DHS criteria for the standard are as follows:
It must meet the current statutory minimum standard for housing
It must be in a reasonable state of repair
It must have reasonably modern facilities and services
It must provide a reasonable degree of thermal comfort
Note how the word ‘reasonable’ is used in three of the four points of the DHS. Reasonable is an arbitrary and very much subjective point of view. It screams loopholes and get out clauses to me.
Looking at the HHSRS, the Government announced just before the pandemic in June 2019 that the HHSRS would be revamped after it was found to be ‘complicated and inefficient to use’.
Putting aside how one measures the standards, it is a simple fact that there are many Bath rental properties that are substandard. I believe it right the Government have an ambition to halve the number of sub-standard private rentals by 2030. However, would it surprise you that…
In 2006, 46.7% of private rented homes in the UK were classed as substandard and today that has reduced, without any legislation, to 23.3%. One must ask if new legislation is now required?
Also, if you recall in an article I wrote recently (drop me line if you would like me to send it to you), Bath landlords could be faced with bringing their properties up to an energy rating (EPC) of C between 2026 and 2028 in legislation already proposed.
Most of the works to meet that EPC rating requirement will be the same works to meet this new DHS and HHSRS. Also, in that article, I discussed how the Government have suggested that certain allowances will be made for landlords on rental properties that can’t be improved – such as Listed properties.
So, I think Bath landlords should sit tight and let the Government shine more light on this in the coming months before any knee jerk reactions are made.
Landlord Register
To be honest, there are several city/borough registers around the UK for landlords. Experience has shown they seem to add an extra level of bureaucracy and red tape. The register would be for every Bath buy-to-let landlord and rogue landlords would be struck off whilst allowing tenants new redress rights. Another reason to employ the services of a letting agent to sort!
End of No-fault Evictions
Again, I spoke about this a few weeks ago with the proposed removal of Section 21 to evict a tenant (again, if you want a copy, drop me a line). If you recall, I stated that no-fault evictions were removed in Scotland over four years ago and the apocalyptic suggestions it would kill the rental market for Scottish landlords was not forthcoming. Now of course, the Scots strengthened the other grounds to evict a tenant. If the Government strengthen the Section 8 legislation, again, I cannot see this being an issue south of the border. Time will tell once the Government put more meat on the bones of the White Paper.
Conclusion
Many of the announcements made in the Levelling Up White Paper are re-hashed proposed legislation that has been on the books for the last couple of years.
This White Paper is not another nail in the coffin of buy-to-let in Bath.
Yet, many commentators have cautioned that more landlords with substandard homes will sell up because of these proposed changes, warning the sell up would add to the private rental sector’s shortage of homes, thus pushing up rents.
If that was true, that would increase rental returns on Bath buy-to-let and attract more Bath landlords into the sector, wouldn’t it?
But if you don’t agree other Bath landlords will buy these rental properties that other landlords are selling, who will buy their Bath properties from them? It will be Bath renters, who are now able to buy because the price has come down, meaning equilibrium should return to the market.
This is all theoretical and there are shortages/gluts in specific locations. Let us not forget it was 12/18 months ago that rents were dropped by double digit percentage points in the space of a couple of months in the big cities. Those rent drops weren’t anything to do with landlords buying up City Centre rental properties, but demand plummeted with 20-something tenants moving back in with their parents during the first lockdown and the months that followed. Yet, now rents have bounced back to pre-pandemic levels (and more) with the return of tenants to the cities.
In a nutshell, if Bath landlords do end up selling in their droves (which they won’t), yet if they do, those Bath properties will still exist.
Few of them will be left empty because most of them will be bought by other Bath landlords as they will be attracted to the sector as inflation takes hold whilst others will be bought by first-time buyers.
What goes around, comes around. So, let’s see what happens in the coming months. In the meantime, if you’re a Bath landlord and you want to discuss anything in this article, please either drop me a line or send me an email.
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.
General Manager Toby Martin rounds up the month of May, with news of new notice periods for landlords, the Queen’s Speech and more.
Reduced Landlord Notice Periods
As of the 1st of June 2021, notice periods for landlords have decreased from six to four months. The government temporarily increased notice periods to six months in August 2020, to provide tenants with greater security in their homes at the height of the pandemic. If the ‘roadmap’ out of lockdown restrictions goes according to plan, notice periods are expected to return to their pre-pandemic levels, i.e. 2 months, in October 2021.
Notice periods for tenants remain unaffected; a tenant can serve 1 month’s notice to bring their tenancy to an end.
At the start of May, the Debt Respite Scheme came into force; a new initiative designed to give people in problem debt ‘breathing space’ to consider their options. The scheme, which will apply to tenants in rent arrears, permits any person who is in debt to seek a moratorium from an approved debt advice provider.
We will be posting a full blog on this subject in the coming weeks.
The Queen’s Speech
The Queen’s Speech at the start of May outlined the government’s priorities over the coming year, and contained a promise to ‘enhance the rights of those who rent‘. A White Paper has been promised in the autumn, which will address the government’s long-term promises to overhaul Section 21 evictions and introduce lifetime tenancy deposits for tenants.
In line with previous months, tenant demand significantly exceeded property supply during May 2021. At one point, the sheer weight of tenant demand saw our available properties drop to zero for the first time in many years; happily, this did not last for long as new properties swiftly became available. But for every property we place on the market, we are seeing multiple interested parties competing for it, which is in turn driving up rents across the board.
New applicant registrations increased by 22.3% compared to May 2020 which, despite being affected by lockdown restrictions, was a record-breaking month for Reside.
Our message to landlords is simple – it is a very good time to be bringing a rental property to the market.
New Recruit
We are delighted to bring you news of a new addition to the Reside team. Chris Gray has joined us in the role of Lettings Negotiator, and will be first point of contact for many of our clients. Chris brings a wealth of experience in sales and property, and knows Bath inside out.
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.
The government has announced that landlord notice periods will be reduced to four months, starting from the 1st of June 2021.
Under temporary legislation introduced in August 2020, notice periods were initially increased to three months, and more recently to six months, to provide tenants with greater security in their homes at the height of the pandemic.
Whilst the deadline to end these temporary measures has been pushed back several times, MHCLG has now confirmed that it will begin to taper notice periods, starting with a reduction to four months from the 1st of June. If the government’s Roadmap is successful, notice periods should return to their pre-pandemic levels by the 1st of October 2021.
Notice periods have presumably been tapered in this fashion for two reasons; firstly, so as not to dramatically remove this safety blanket from tenants, and secondly to discourage landlords who have already served their tenant with six months’ notice from re-serving a dramatically shorter notice.
“Subject to the public health advice and progress with the Roadmap, notice periods will return to pre-pandemic levels from 1 October. The measures will ensure renters continue to be protected with longer notice periods for the coming months, while allowing landlords to access justice – 45% of private landlords own just one property and are highly vulnerable to rent arrears.”
Housing Minister Chris Pincher
Notice periods for the most serious cases will remain lower, for example substantial rent arrears. If a tenant has accumulated more than four months’ arrears, they can be served four weeks’ notice to end the tenancy.
It was also announced that evictions will recommence on the 1st of June, meaning that bailiff action can again be enacted. However, there still remains a lengthy backlog of possession claims caused by the court closures in 2020, so landlords will have to show patience as their claims progress towards the eviction stage.
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.
Those who tuned into the Queen’s Speech on the 11th of May can be forgiven for missing the very brief promise to ‘enhance the rights of those who rent’ – seemingly a very general pledge to review standards across the sector. A delve into the detailed briefing notes, however, reveals three details that will be of particular interest to landlords and tenants.
Abolish Section 21 Evictions
Long before the pandemic interrupted their plans, the government promised to abolish Section 21, or ‘no-fault’, evictions. This is the most straightforward and common way for a landlord to end a tenancy at their property, but its future is now back up for review. The government plans to publish a White Paper in the autumn which will detail plans to reform the evictions process.
Lifetime Deposits
Another long-running government scheme is the introduction of lifetime tenancy deposits, which would see dilapidation deposits move from property to property with the tenant. Under the current system, a tenant must pay a brand new deposit when moving to a new property, which can often cause cashflow issues for the tenant if they are still waiting for their deposit to be returned by their previous landlord.
It remains to be seen how the government’s scheme will offer simultaneous protection to two landlords where there is an overlap in tenancies. Again, more information has been promised in the autumn.
Redress Schemes for Private Landlords
One of the more unexpected announcements was the plan to require all private landlords to belong to a redress scheme, ‘to ensure that all tenants have a right to redress’.
Currently agents, rather than landlords, are required to belong to a redress scheme, such as the Property Redress Scheme, with which Reside are affiliated. If a tenant rents directly from a private landlord, with no agency involvement, their only current source of redress is through the courts. It is therefore likely that this new initiative is aimed at landlords who do not use a professional agency to manage their tenancy.
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.
In news that may not be of direct relevance to our tenants and landlords in Bath, but could nonetheless be a suggestion of things to come, the Welsh government has introduced a bill that will permanently extend minimum notice periods for landlords.
The new legislation, which will be implemented before the end of the current Assembly in May 2021, will require landlords to serve a minimum of six months’ notice to end a tenancy. Such a notice cannot be served during the first six months of the tenancy, thereby preventing a landlord from ending a tenancy earlier than 12 months.
While in some cases these changes will provide more financial security for landlords, it also means it will take landlords 12 months to reclaim their property in the case of “no fault evictions”. Angela Davey, ARLA Propertymark President
The future of Section 21 in England, or the ‘no-fault’ eviction as it’s commonly known, has been a major talking point since the last General Election, when the Conservatives promised to reform the evictions process. Since then, their response to the Covid-19 pandemic saw the introduction of temporary six month notice periods for landlords, a measure that is due to run until the 31st of March.
It isn’t yet clear what will happen to notice periods in England – they will either revert back to 2 months, or the government will extend the current measures temporarily or permanently. What we can be sure of is that changes will be made to Section 21, and perhaps the Welsh Bill is a sign of things to come.
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.
Despite the current lockdown restrictions, we are all eager to find reasons for optimism in the year ahead. The cloud that engulfed 2020 has certainly not given way, but it has perhaps been lanced by some stray rays of sun thanks to the vaccine rollout.
Given the current need for positivity, what reasons are there to be cheerful about the property rental market over the next 12 months?
1. The Market in 2020
Rather unexpectedly, the rental market in 2020 remained buoyant to the end. The lengthy slump in activity that we all anticipated during the first national lockdown never came about, as agents and tenants adapted, and video tours came to the fore. Between March and September 2020, a staggering 54% of properties let by Reside were achieved without the need for a physical viewing – such was the success of our virtual tours. When the second national lockdown came around in September, the government took the decision to keep the property market open and allow viewings to continue, a policy that they have thus far maintained.
Strong demand from tenants, allied with a healthy supply of properties (partially from landlords exiting the holiday rental market) meant that 2020 was a remarkably busy year. We let more properties during 2020 than in any other year in the Reside’s history – a staggering outcome, all things considered.
There is no reason why this should change in 2021, so we expect it to be another strong year for both supply and demand of rental property.
2. Whatever Happens, We’re Ready
Whilst we hope that there are brighter times ahead, it seems likely that there could be further lockdown restrictions before things start to improve. But whatever 2021 throws at us – we’re ready.
Every aspect of our management service can be carried out from home, if need be. Every member of staff is set up with home access to our phone and computer system; property inspections can now be done remotely; we have a system for contactless check ins and check outs; contracts can be signed remotely; Right to Rent checks are carried out virtually and, as we’ve already established, properties can be marketed very effectively without anyone needing to leave their home.
Regardless of any restrictions that are put in place over the course of this year, we will be able to provide a full and professional service to our tenants and landlords.
3. Destination: Bath
Bath landlords can look forward to increased demand in 2021, as we expect the city to be a popular destination for renters leaving London (no, let’s not call it Lexit). It is widely thought that there may be something of an exodus from the capital post-Covid-19, as new working from home regimes reduce the need to commute so frequently.
4. Return of the Renters’ Reform Bill
The much-discussed Renters’ Reform Bill is slated make a reappearance later in the year. It formed part of the Queen’s Speech in December 2019 and was widely expected to progress through Parliament in 2020, until the government became preoccupied by more important matters. But with the private rental sector being inundated by so much new legislation, why is this a cause for optimism?
The Bill’s two main promises that have been outlined so far are to scrap Section 21 evictions, and to introduce lifetime deposits for tenants. If done correctly, both of these changes could be positive for landlords and tenants, so this key piece of legislation is an opportunity to improve the current system.
Lifetime deposits will travel with tenants from property to property, reducing moving costs for tenants and making the moving process easier and less costly.
Section 21 (or ‘no-fault’) evictions have long been in the crosshairs of the main political parties, and its departure is inevitable. ARLA Propertymark has lobbied the government to replace Section 21 with a more efficient system that would be fair to diligent landlords, and provide tenants with security of tenure. The detail of ARLA’s proposal can be found here, but it is not yet known what the government’s approach will be.
5. A return to normal
We have become so entrenched in our ‘new normal’, that the prospect of a return to the ‘old normal’ seems unfathomable. Nonetheless, if the vaccine rollout is successful, we can dare to dream of a return to some sort of normality later in the year.
Whilst it remains to be seen what a post-Covid world looks like, we will bring many lessons learned from the pandemic forward with us. Over the last year, we have been forced to embrace new technologies, pair back and hone our services, and work more diligently and harder than ever before. Although we wish this had never been necessary, we have discovered ways to be more efficient and innovative than ever before. Whenever we do finally emerge from the pandemic, Reside will be stronger and better for it.
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.
The Bill’s two main promises that have been outlined so far are to scrap Section 21 evictions, and to introduce lifetime deposits for tenants. If done correctly, both of these changes could be positive for landlords and tenants, so this key piece of legislation is an opportunity to improve the current system.