Date Published 01 April 2024
The UK rental market is thriving and has a lot going on. The good news is that it seems to be calming. This promises a better future for tenants and landlords. However, a good agent will help you find what you are looking for, whether you are investing or looking for a nice home to live in.
Lowering buy-to-let mortgage rates for landlords is good news for tenants
Lower mortgage rates are helping to reduce costs for landlords, which are often passed on to tenants, reducing the financial pressure for both. Average rents increased by 8.3% last year; in the previous two years, this figure was in double digits.* It's important to remember that average figures mentioned in the news include more expensive regions. You can find affordable homes to invest in and to rent with the right agent.
The impact of lower-deposit mortgages
Lower government-backed deposit schemes are giving first-time buyers a leg up on the property ladder. This is reducing pressure on the rental market by increasing the supply of homes as renters become homeowners. Landlords needn't worry, as the supply of tenants far outweighs the supply of housing. This move by the government may also help to increase the value of property portfolios.
What do reforms mean for the market?
The government has been planning to reform the Renters Bill for some time. Improving rights for landlords and tenants with the abolishment of Section 21, some landlords have feared the proposed reforms. However, with the strengthening of Section 8, landlords have nothing to fear. And the government has announced that the court system needs to be reformed first, delaying its implementation until late this year or next year.
The general election is on the horizon
New elections bring new promises that are not always delivered. The Renters Reform Bill could be an example. That said, politicians will be trying to appeal to landlords and tenants, and if this eventually leads to simpler legislation for both parties, this is a good thing. New legislation to improve EPC ratings from E to C by 2028 has been scrapped. However, many landlords have already invested in EPC improvements, which is good news for tenants.
Listen to your agent, not the news
Your agent will be able to find a property that suits your needs and budget. If you are on the move now or waiting for the right opportunity to appear in your inbox, the more you communicate with your agent, the better. With a fully managed service, you have very little to do except enjoy the benefits because property maintenance, rent collection, and the latest compliance checks will be taken care of for landlords and tenants.
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