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Renter’s Rights Bill – What does it mean for you?

Posted on by prateek

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 ⬇️

https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a

Reside Review: October 2021

Posted on by prateek

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.

Reside Review: June 2021

Posted on by prateek

Reside General Manager Toby Martin rounds up rental market activity in June 2021.

Market Update

The rent trend of high tenant demand versus low property supply continued during June 2021. Competition for properties reached such heights that our average letting time between listing a property on the market and having an offer accepted by the landlord was just 3.45 days. The average rent agreed across those properties was 101.2% of the advertised rent.

The message from Reside is clear – if you are a landlord, there has probably never been a better time to bring your property to the rental market.

Landlords – are you compliant?

Whilst on the subject of interesting statistics, a recent article by property industry expert Paul Shamplina revealed last month that there have been no fewer than 47 changes to regulations affecting landlords during the Covid pandemic alone.

There’s been 47 changes to regulation and law in the UK during Covid and for the small portfolio landlords now everything has changed massively.

I believe it’s essential that they have a letting agent on their side albeit the correct agent by picking the right one, which is very important.
– Paul Shamplina

Meanwhile, new research by the National Residential Landlords Association puts the total number of laws with which landlords must comply at 168. In 2010, this figure stood at 118 – that is a 42% rise in 11 years. The rate at which regulations are changed has only accelerated over recent years, and more law changes will continue to come for the foreseeable future.

Without a professional, ARLA Propertymark qualified agent managing your property, it is very difficult for a landlord to be 100% confident that they have complied with all of their legal obligations.

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.

COVID-19 Update: Back To Work

Posted on by prateek

The New Normal

On Wednesday 13th of May, the government removed restrictions on residential lettings and issued strict guidelines, specifying how we can return to work. Safety remains paramount and we have had to radically adapt our methods to ensure that our staff and our customers are safe. The peak of the epidemic may have passed but the virus is still a very real threat and we have a clear duty of care towards everyone we engage with.

From Monday the 18th of May, our office will be staffed, however it will not be open to the general public for safety reasons. We have a self-contained space adjacent to our office (pictured), which is COVID-Safe and can be used for meetings by prior arrangement, if you need to see us in person. Even so, it would be safest for everyone if you were to contact us via email or phone.

We are now able to respond to non-urgent repairs, however many trades have not yet returned to work, and many are finding it difficult to source parts and materials. As a result, there may be a delay in some issues being resolved.

Like many others, we have adapted our processes and procedures during the lockdown period, making use of video technologies and remote working.

Although we are now permitted to return to work and visit properties, many of our clients will continue to act with caution and may prefer to meet with us remotely. If you would like to discuss letting your property, please contact us to arrange a full market appraisal via video call, or in person.