Hot topics in the world of letting, April 2024

Spring budget

So, the anticipated spring budget comes at a time when the housing stock is insufficient and in high demand. Unfortunately, it seems all the changes are election driven with little or no thought to the bigger picture we are being faced with. The tax changes with regards short-term letting are being taken into business realms and no longer income driven for the landlords. A further disappointment is the incentives for buy to lets being removed and almost scare mongering landlords into not renting properties. This anti-landlord’s campaign is only going to encourage home ownership rather than letting, in an already bleak lettings market. 

The Renters Reform Bill

There is still no date for the 3^rd reading of the bill, which means it still needs to be passed through the Commons and House of Lords before the next election. Rushing this through will inevitably create mass uncertainty: Will there be the end of the fixed term tenancy? What will happen to Section 21s? Will there be a 2 month notice period for end of tenancy, no fault evictions? Will there be clarity for landlords over purpose-built student accommodation versus the private rental sector?

Sadly, there is no more certainty under a Labour government, if the bill is passed, there will be further changes, which could see a watering down of the original bill or major changes with regards notice periods, protection for tenants, need for lettings agents to have qualifications or scarier still…there could be a completely new reform introduced.

Therefore, what should lettings agents look out for and need to know… in Scotland they are continuing to freeze rent and have a pause on evictions, which is affecting exiting landlords at a high rate. In the private rental sector, there are 200 pieces of legislations that you as an agent/landlord must be compliant with. 

Finally, the projected impact that an election is going to have in the letting’s world. The burning question is, when will the actual election take place? It could be as early as May but most probably an Autumn election is more realistic. Let’s be optimistic – the new government will build more homes and have a broader thought process to support the supply and demand issues which are currently being experienced. Above and beyond, let’s believe that private rental will be on their manifestos!