Landlords: 6 thing landlords need to know about the Fairer Private Rented Sector White Paper

Landlords and tenants will soon see changes to how tenancies are run, thanks to incoming legislation changes enforced by the Government. Letting agents across the country are digesting the contents of the new Fairer Private Rented Sector White Paper.

Our role is to support landlords in implementing what’s new, ensuring their buy-to-lets are legally compliant at all times. Ahead of the White Paper contents becoming law, we summarise the key points that need considering now:-

1. Changes to tenancy types & evictions 

The Fairer Private Rented Sector White Paper confirms the intention to scrap Section 21 ‘no fault’ evictions. Landlords will need a reason from a set list in order to end a tenancy lawfully, rather than simply tell tenants to leave with no reason. It is thought that regaining a property for the landlord to live in or sell on will be one of the acceptable reasons soon to be defined in law.

There are, however, addendums to this incoming reform. There will be improvements to the eviction process, in favour of the landlord, where the tenant is frequently involved in anti-social behaviour or is in rent arrears. On the flipside, it will be easier for renters to walk away from a tenancy agreement as fixed term tenancies will be banned. In their place, all tenancy agreements will be issued on a periodic basis, leaving tenants freer to leave a property when they wish.

2. Discrimination against some rental groups will end

Landlords have been able to exclude some groups from renting their property but this will come to an end. The White Paper will forbid landlords from making blanket bans on renters with children and tenants who receive benefits. All tenants, however, will still have to meet the landlord’s pre-set criteria and pass the referencing process.

In addition, all tenants will be able to request a pet move in with them, which the landlord must think about and cannot unreasonably refuse. To make this an easier law for landlords to embrace, the landlord can insist that the tenant has specific pet insurance.

3. Rent rises will be capped to once a year

Rent rises are unavoidable but to make it fairer for tenants, the notice period landlords give renters will double. In addition, the frequency at which rent rises can be applied will be capped to once a year. It is thought landlords wishing to increase the rent will have to use a Section 13 notice to do so or insert a rent review clause into the period agreement.

4. Living conditions will be standardised

The Government’s concerns over health and safety in private rented properties will be addressed by a new Decent Homes Standard. This already operates in the social housing sector but it will apply to all privately rented homes for the first time as part of the reforms. The Decent Homes Standard will run alongside the Landlord & Tenant Act 1985, and the Homes (Fitness for Human Habitation) Act 2018.

5. A new private renters’ ombudsman will be set up

Calls for specific housing courts have been dismissed at this stage but a new private renters’ ombudsman will be created instead. The aim will be for an impartial body to resolve disputes between tenants and landlords, without the need to go to court. Issues, such as disagreeing over deposit deductions and rent rises, will be settled without high-level judicial involvement.

6. A new advice & information portal will be launched

With hundreds of rules, regulations and now new laws for landlords to comply with, the Government will create a single online portal for landlords, listing every compliance item, together with useful property set-up and management advice. It is not known as yet whether it will be mandatory for landlords to register with the portal.

We are working to advise our landlords on how the Fairer Private Rented Sector White Paper will affect current tenancies and future buy-to-lets. You can contact us for tailored lettings advice and to discuss any aspect of the rental reforms.

Self-care crosses over into the home

Self-care’ is a concept that’s gained momentum in the last two years, especially as we look to rebalance our lives after the pandemic. Although what may immediately spring to mind is a walk in the countryside or an hour-long aromatherapy massage, the self-care trend has crossed over into our homes.

A new study has shown how self-care is shaping where we live. Not On The High Street recently questioned Brits on the matter of what it calls ‘self spaces’ – rooms devoted to self-care, hobbies or leisure activities.

The study found people in 2022 wanted to enjoy more ‘me time’ (68%), maintain a better work/life balance (58%) and spend more time on hobbies (66%). As a result, many were thinking about creating a room in their home dedicated to their passions and more holistic past-times. In fact, research revealed over a third of us have already designated a space where we can practice a form of self-care – not surprising when 7 in 10 people said they felt most relaxed while at home.

This rising interior trend is already having an effect on the property market. Almost half (48%) of those taking part in the research said a self-care room would be a priority when looking for their next home.

To quantify just how important self-care has become, Not On The High Street asked people what was most essential within the home. It found some Brits felt a self-care room was more important than a new kitchen (38%), a new en-suite bathroom (39%), a new living room (37%) or a new garden (37%).

According to the online retailer, our top 10 self-care spaces are:

  1.     Reading corner (16%)
  2.     Gym (16%)
  3.     Walk in wardrobe (14%)
  4.     Cinema room (14%)
  5.     ‘Man cave’ (14%)
  6.     Music room (13%)
  7.     Arts and crafts studio (12%)
  8.     Gaming room (12 %)
  9.     Study room (11%)
  10.     Mini library (10%)

Stay flexible when it comes to self-care

Interior trends come and go, so before you rush out to reconfigure your property or install permanent pieces of gym equipment, think about how versatile the room could be, especially when it comes to selling or renting out your property in the future.

Retaining flexibility can be achieved by using freestanding furniture that isn’t screwed or nailed down; using screens to divide rooms on a temporary basis; opting for multi-purpose furniture, such as a snooker table that converts into a dining table, and keeping the décor neutral.

Easy self-care ideas to introduce

Adding an element of self-care to your day doesn’t have to involve a dedicated room. Why not try one of these small-scale ideas instead?

  • Encourage a spa-like ambience in your bathroom: clear away empty toiletry bottles, buy a fresh set of fluffy towels and light candles instead of turning on a harsh overhead light.
  • Find bedroom bliss: banish the TV from the bedroom and instead, play a soothing soundtrack of music you may hear when going for a massage.
  • Create a reading corner: just add a comfy chair, a side table for your coffee, a freestanding lamp and a pile of classic novels.
  •  Install a window seat: if you have a window with a view, think about installing a window seat as there’s something meditative about simply watching the world go by.
  • Make a mindfulness zone: clear clutter and minimise distractions to create a place to practice mindfulness or meditation.

If you are searching for a new home and a self-care space is on your ‘most wanted’ list, talk to us about available properties.

Property positives & negatives: what puts buyers off?

For many, selling up represents a decision to leave a property that the owner has invested time and money into making it a home. Others, however, may have fallen out of love with where they live, letting it get a little ‘rough around the edges.’

Like or loathe your current home, it’s not the opinion of the seller that counts. As soon as that ‘for sale’ sign is up, all that matters is what buyers think about the property and how much they’re willing to pay to make it theirs.

New research from Tapi was commissioned to establish the top five negatives that put potential purchasers off. It’s a study that has been carried out numerous times by different people but after the last two years and many people making lifestyle changes, it’s good to get a fresh perspective on what may scupper a property sale.

The research found a home that needed a lot of work doing to it was the most off-putting aspect, with 45% of those taking part in the research saying they’d pass on a property if it needed too much modernising or maintenance.

On a similar theme, 22% of participants commented that they’d discount a property that needed complete redecoration, while 28% would be deterred if the home had an old kitchen that needed replacing.

The other two aspects in the top five property negatives really fall outside of the seller’s control. Purchasers value their peace and quiet, with 43% of respondents saying they’d snub a property if there was a lot of external noise pollution. Completing the list was unsightly surroundings in eye view of the property – a negative cited by 36% of people.

Rather than dwelling exclusively on the adverse, the study also asked what people found most attractive when looking for a new home. Unsurprisingly, more than half of Brits (52%) said private outdoor space was the most important factor when searching for a new home.

Just behind a garden or a balcony was a new kitchen, with 51% saying this was a top consideration when looking for a property to buy. Another feature that finds favour with home movers is a new bathroom, with 42% of respondents saying this was very important to them. Other property plus points included freshly painted walls (20%), new flooring (15%), modern appliances (12%) and neutral colours (19%).

Before you rush out to buy a new kitchen or rip out your bathroom, talk to us about the financial investment needed to make improvements versus the actual value and appeal it will add to your property. Sometimes the simplest (and cheapest) alterations, such as tidying the garden and repainting throughout in white, can make all the difference. Contact us for free advice and a property valuation.

Property positives & negatives: what puts buyers off?

For many, selling up represents a decision to leave a property that the owner has invested time and money into making it a home. Others, however, may have fallen out of love with where they live, letting it get a little ‘rough around the edges.’

Like or loathe your current home, it’s not the opinion of the seller that counts. As soon as that ‘for sale’ sign is up, all that matters is what buyers think about the property and how much they’re willing to pay to make it theirs.

New research from Tapi was commissioned to establish the top five negatives that put potential purchasers off. It’s a study that has been carried out numerous times by different people but after the last two years and many people making lifestyle changes, it’s good to get a fresh perspective on what may scupper a property sale.

The research found a home that needed a lot of work doing to it was the most off-putting aspect, with 45% of those taking part in the research saying they’d pass on a property if it needed too much modernising or maintenance.

On a similar theme, 22% of participants commented that they’d discount a property that needed complete redecoration, while 28% would be deterred if the home had an old kitchen that needed replacing.

The other two aspects in the top five property negatives really fall outside of the seller’s control. Purchasers value their peace and quiet, with 43% of respondents saying they’d snub a property if there was a lot of external noise pollution. Completing the list was unsightly surroundings in eye view of the property – a negative cited by 36% of people.

Rather than dwelling exclusively on the adverse, the study also asked what people found most attractive when looking for a new home. Unsurprisingly, more than half of Brits (52%) said private outdoor space was the most important factor when searching for a new home.

Just behind a garden or a balcony was a new kitchen, with 51% saying this was a top consideration when looking for a property to buy. Another feature that finds favour with home movers is a new bathroom, with 42% of respondents saying this was very important to them. Other property plus points included freshly painted walls (20%), new flooring (15%), modern appliances (12%) and neutral colours (19%).

Before you rush out to buy a new kitchen or rip out your bathroom, talk to us about the financial investment needed to make improvements versus the actual value and appeal it will add to your property. Sometimes the simplest (and cheapest) alterations, such as tidying the garden and repainting throughout in white, can make all the difference. Contact us for free advice and a property valuation.

June’s property market analysis

We’re almost halfway through 2022 and there is time to reflect on the current property market. Although the interest rate has risen, the impact has yet to hit buyer demand, with buyer numbers still high. Estate agents participating in Propertymark’s latest study reported an average of 100 purchasers registered per branch.

There is, however, a contrast between buyer demand and the number of properties for sale. This recurring theme was illustrated in the same Propertymark study. It found there were 52% fewer properties available in April 2022 compared to the same month in the previous nine years.

Sellers shelling-out over the asking price

Competition between buyers remains fierce – an aspect that should encourage sellers to come to market. As a result of demand, purchasers are willing to bid high to secure a property. In fact, 39% of agents say the majority of their stock sold above asking price.

House prices continue to rise

Rather than a cooling market that property commentators had predicted, the rate at which house prices are climbing accelerated in May. Previously, growth had shown signs of slowing, dropping to 0.3% in April from 1.1% in March.

May, however, saw the growth rate of price rises bounce back. The Nationwide detailed a 0.9% uplift in property values – the tenth month in a row where values had increased. Annual price growth now stands at 11.2%.

Rising property values have also led to a new property record. In May, Zoopla’s house price index revealed the UK’s average house price had topped £250,000 for the first time. Demand that’s 61% over the five-year average and a 37% dip in the number of homes for sale have combined with a willingness to pay over the asking price to create a new average house price of £250,200.

The residential side of agency isn’t the only place to have experienced increases. Goodlord’s May rental index shows that rents rose by 0.83% in May. This results in English tenants paying a new average monthly rent of £1,020. Rents are now 11% more expensive when compared to a year ago.

Potential buyers have two pieces of news to digest this month. The Government stunned the property industry by announcing a change to its Help to Buy scheme. The Government has brought this deadline forward, with Help to Buy purchasers needing to reserve a property before 6pm on 31st October 2022 It had been advertised that reservations needed to be made by December 2022.

There are successors to Help to Buy

The earlier reservation deadline will ensure all sales legally exchange before Help to Buy ends in March 2023. Anyone hoping to buy a new home using the scheme – which allows purchasers to buy a property with a 5% deposit – should not delay their property search. Alternatives still running after Help to Buy ends include the Government-backed mortgage guarantee scheme, shared ownership and First Homes.

Those who are buying a property in the near future are being advised to pay particular attention to their circumstance. A new poll among 940 estate agents looked into who was to blame for sales falling through. Respondents said 46% of collapsed sales were due to problems on the buyer’s side, with 22% saying purchasers further up or down the chain caused issues.

Fallthrough rates remain low

Conveyancers and solicitors, however, didn’t escape the wrath of estate agents. Of those questioned, 17% found it was the legal teams who were behind transactions that failed to complete. Thankfully fallthrough rates are low. Almost 3 out of 4 agents taking part in the research (70%) said fewer than 9% of their sales fell through.

The property sector loves a study and the latest English Private Landlord Survey found 90% of landlords plan to keep renting out their buy-to-lets after their current tenancy agreement expires. When it comes to adding properties to their portfolios, 11% of landlords said they plan to purchase additional buy-to-let.

If you would like to know more about your local property market, please get in touch.