LANDLORD TIMES
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April 2025
SPRING STATEMENT MISSED OPPORTUNITY FOR THE PRIVATE RENTAL SECTOR
The chancellor’s spring statement was a missed opportunity for the private rental sector (PRS).
Despite a focus on planning reforms, money for construction worker training and cash to build new social and affordable housing, the chancellor Rachel Reeves made no mention of how she might help the PRS.
Outlining the statement to MPs in the House of Commons on March 26, Ms Reeves said the government’s planning reforms will deliver an extra 170,000 homes by 2029/30. This was backed up by the Office for Budget Responsibility (OBR) which suggested the government is on track to build an extra 1.3
million homes by the end of this parliament, falling short of its manifesto promise of 1.5 million.
Alongside this was the announcement of £625 million to be spent in England on training 60,000 construction workers and an additional £2 billion to build 18,000 new social and affordable homes next year, something which
Rachel Reeves Portrait Members 4031
it’s hoped will increase confidence amongst housebuilders.
The OBR estimates the reforms will boost economic growth by 0.2% over the five-year forecast period and 0.4% by 2035.
However, there was no mention of how to boost the supply of rental properties within the private rental sector.
Sheldon Bosley Knight’s lettings director Rebecca Dean said: “The spring statement was an opportunity for the government
to set out a bold vision for growth but there seems to be a missed opportunity in the PRS.
“There should be a focus on creating the right conditions for investment to be able to supply more properties in the PRS and meet the tenant demand.
“We are already seeing landlords exit the PRS and the lack of available stock means rents are still increasing and, in some cases, private renting is becoming unaffordable to tenants.
“The economy needs to be stabilised, and an environment created which gives investors confidence in committing to property to let in the UK.”
“The economy needs to be stabilised, and an environment created which gives investors confidence in committing to property to let in the UK.”
Buy-to-let company set ups surge to
400,000
Buy-to-let landlords are increasingly moving to limited company structures to hold their property portfolios.
Data from Companies House shows by the end of February, 401,744 companies had been set up to hold buy-to-let property by the in the UK. This is an increase of 332% over the past nine years from 92,975.
There are now more companies registered to hold buy-to-let property than for any other type of business with nearly four times as many buy-to-let companies operating than either fast food takeaways or hairdressers.
In 2024, 61,517 new limited companies were established, a 23% increase on the previous year’s figure of 50,004.
The growth has been high since 2016 when full mortgage interest
tax relief was phased out from homes owned by higher rate taxpayers. Hamptons’ estimates between 70% and 75% of new buy-to-let purchases now go into a company structure.
Current tax rules mean most, although not all, new investors find themselves better off in a company structure than owning an investment property in their own name.
Under the current system, companies can still deduct mortgage interest as a business expense before calculating their tax liability. This contrasts sharply with the situation for individual landlords, who since 2020 have been restricted to a 20% tax credit on mortgage interest payments.
There are now around 680,000 properties held in limited company structures across England and Wales, with this number increasing
by between 70,000 and 100,000 annually. While some are new to the rental market, many existing landlords are now transferring properties from personal ownership to limited companies.
Sheldon Bosley Knight associate director, Nik Kyriacou said: “These figures look like good news for the private rental sector. Setting up a limited company is only worth doing if you are intending to stay for the long haul so it would suggest landlords are thinking long term.
“However, it’s always worth buyto-let investors checking with their accountants or financial advisors on the pros and cons of moving their portfolios to a limited company structure.
“As ever if any of our landlords would like guidance or help on this or any other matter, please do not hesitate to give our teams a call.”
Peers to scrutinise RRB proposals
All eyes will be on the House of Lords later this month as peers start to scrutinise the Renters’ Rights Bill.
The Bill’s detail will be debated over a number of days from April 22 at its committee stage. A total of 50 pages of amendments have been tabled since the Bill was last discussed in the Lords on February 4.
Each must be debated with no time limit and with all members of the upper chamber allowed to speak during this stage in proceedings.
The National Residential Landlords Association (NRLA) is supporting two amendments on rent arrears, aimed at giving landlords confidence they can recover their properties in a timely manner should their tenants stop paying rent.
Lord Carter of Haslemere proposes the existing (two month) threshold remains when the Renters’ Rights Bill comes into force, as well as a caveat that would exempt arrears built up as a result of issues with Universal Credit payments.
The NRLA has also recommended other changes including: The introduction of a system to assess rent increases before disputes are sent to the tribunal. This would be developed in conjunction with the Valuation Office Agency (VOA), which could advise on market rents; changes to mitigate the risk of arrears. These include a move which would allow an initial rent payment to be paid as a condition of a landlord agreeing to a tenancy, and the reintroduction the two-month threshold for rent arrears when it comes to triggering possession
proceedings using the mandatory ground; and changes to the student possession ground, namely an extension of the ground allowing it to be applied to one- and twobedroom student homes and to allow students to pay rent by term (rather than monthly).
Sheldon Bosley Knight lettings director Rebecca Dean said: “I am keen to see the outcome from this stage following the amendments suggested by the Lords after the second reading on February 4.
“The proposals made are valid and could make a huge difference to landlords with smaller portfolios and impact on decisions to exit the market.
“So far, a lot of hard work has gone into the Renters Rights Bill and getting this right. I hope this stage is given the attention needed so that any outcome is one which is fair to both landlords and tenants.
“As agents, we are using this time to plan ahead and work with our landlords to mitigate how any changes could affect their investments and our podcasts and video content will help and guide our landlords through this journey.
“We will be continuing to follow the parliamentary process closely so that we can update our landlords as soon as we know more.”
Following committee stage, there will be another two stages in the Lords before the Bill returns to the Commons for agreement ahead of Royal Assent.
In brief
The Landlord Forum takes place at the SYDNI Centre in Leamington on May 14 between 12.30pm and 4pm.
Run in partnership with the National Residential Landlords Association (NRLA) and the local Landlord Steering Group, the free event will include presentations covering a range of topics including developments in Artificial Intelligence (AI), ways to help tenants successfully manage a checkout, updates on the Renters’ Rights Bill and legal updates from the NRLA as well as local authority information.
Free parking is available and light refreshments will be provided.
Visit Select tickets – Landlord Forum – SYDNI Centre, Cottage Square, Sydenham, Leamington Spa, email balwant.rai@ warwickdc.gov.uk or call 01926 456733 to register.
MTD rollout confirmed
The government has confirmed it is pushing ahead with its Making Tax Digital (MTD) plans and expanding it to include a wider range of small businesses.
In the autumn budget of 2024, the government said MTD will start from April 2026 for sole traders and landlords with qualifying income over £50,000 and extend to those with incomes over £30,000 in April 2027.
Announcing the new changes on March 26, the government confirmed MTD will be extended to sole traders and landlords with an income over £20,000 from April 2028. Reducing the threshold means an extra 900,000 landlords and freelancers will have to comply.
Stamp duty fails to dampen
BTL
market
The hike in stamp duty rates has failed to dampen the buy-to-let market.
Just over a quarter of landlords (27%) say they are looking to expand their portfolios.
The findings by buy-to-let mortgage specialist Landbay come despite a hike in the stamp duty surcharge on purchases of additional residential properties from 3% to 5%.
Among those willing to buy, the survey found there was an equal split between investors with between four and 10 properties and those with portfolios of between 11 and 20, of 31% each.
Just over three quarters (77%) own their properties and portfolios through a limited company structure.
The main reason given for pushing ahead with purchases was a desire to build a property portfolio, at 56%.
Almost two in 10 investors said it was due to an increase in tenant demand, while 13% based their intentions on a potential increase in house prices.
However, nearly a quarter of the landlords surveyed said they did not know their purchase plans yet, while half stated that they did not intend to buy.
Sheldon Bosley Knight lettings manager Josh Jones said: “It is great to see despite the proposed changes to stamp duty, buy-to-let investors have not been put off.
“It’s still a very active market, supply still hasn’t caught up with demand, rents are still high and yields good so there are still plenty of reasons for landlords to remain in the sector.
“As ever if any of our landlords want advice on any aspect including where to invest or add to their portfolios, please do get in touch.”
Latest Podcast
Being a landlord can come with challenges and uncertainties when ensuring a steady rental income. The unpredictability of tenants' financial situations or unexpected vacancies can pose significant risks to your cash flow as a landlord.
It is therefore advisable to have some kind of insurance in place just in case the worst happens and a tenant can’t or won’t pay the rent.
In our latest podcast, Sheldon Bosley Knight’s lettings director, Rebecca Dean is joined by Mike Dawson, of Homelet, a landlord rent guarantee insurance provider to talk about the issue.
CLICK ON THE LOGO TO VIEW
Rental growth slows
Average UK monthly private rents increased by 8.1% to £1,326, in the 12 months to February 2025.
Despite the rise, the figure, from the Office for National Statistics (ONS), is down from 8.7% in the 12 months to January 2025 and below the record-high annual rise of 9.1% in March 2024.
In England, the average rent increased to £1,381 (8.3%) with the West Midlands seeing an increase of 7.5% to £917.
Elsewhere, the average UK monthly private rent in February 2025 was highest for detached properties (£1,517) and lowest for flats and maisonettes (£1,301).
Average UK private rent was highest for properties with four or more bedrooms (£1,989) and lowest for properties with one bedroom (£1,074).
LAND&PR ERTYTALK
Unplugged SHELDON BOSLEYKNIGHT
• Great investment opportunity
• Current rent value of £615 pcm
Longford Bridge Court, Union Place Gross yield of 8.2% £90,000
• Lease length - 107 years
• Communal gardens and parking
• Tenants in situ
• EPC - D
Drapers Fields, Coventry
• 71-year lease remaining
• Two-bedroom apartment in Canal Basin
• Close to city centre
• Available with tenants in situ or vacant possession
• Current rent value of £850 pcm
• EPC - C
Gross yield of 9.3% £110,000
The Hawthorn apartments
The Hawthorn apartments
Sheldon Bosley Knight is delighted to offer an off-market, exclusive opportunity of either individual plots or multiple unit discounted packages from developer Taylor Wimpey.
Ranging from one-bed apartments at 525 sqft to executive five-bedroom detached houses at 1,986 sqft, there is plenty to suit your investment needs.
> Locations include Hatton, Warwick, Gaydon, Nuneaton and Kersley.
> House types range from two-bedroom semi–detached, three-bedroom detached, four-bedroom detached and executive five-bedroom detached houses.
> Three blocks of apartments including one-bedroom apartments at 525 sq ft and two-bedroom apartments at 750 sq ft.
> House styles include the Gosford, the Byford, the Beauford, the Rossdale and the Lavenham.
> Multiple unit discounted packages available.
> Whole blocks available as single purchase.
> Potential for great yields.
*Discounts and
For more information please contact Nik Kyriacou and the New Homes Team on 01789 333 466
• 102 year lease remaining
• Two-bedroom flat in Cheylesmore
• Excellent public transport links
• Highly sought-after location
• Potential rent value of £800 pcm
• EPC - C
• Two-bedroom, second floor apartment
• No upward chain
• Allocated parking space
• Easy reach of mainline rail to London Marylebone
£135,000
• Current rental value of £950 pcm
• Tenants in situ
• EPC - C
Gross yield of 7.6% £150,000
Quinton Parade, Coventry
Rosemary Drive, Banbury
Brookfield Court, Alcester Road
• Two-bedroom, first floor apartment
• No upward chain
• Walking distance to the town centre
• Allocated parking space
• Potential rental value of £900-£950 pcm
• Allocated parking space
• EPC - B
• A charming and characterful terraced home
• Excellent central location
The Old Stables, High Street, Pershore Gross yield of 5.3% £185,000
• Perfect for a first-time buyer or investor
• Kitchen with built-in/fitted appliances
• Current rent value of £825 pcm
• No onward chain
• EPC - D
• Development with two, six-bedroom apartments, four, four-bedroom apartments and two, three-bedroom apartments
• Modern fitted kitchenettes and bathrooms
• Excellent location for Warwick and Coventry Universities
• Current rent value of £243,480 pa, potentially rising to £257,400 pa
• Tenants in situ
• EPC - B Current gross yield of 9.7% £2,400,000
PART OF | SHELDON BOSLEY KNIGHT
Barkers Butts Lane, Coventry
• Mid-terraced house
• No onward chain
• Popular Coundon location
• Extended fitted kitchen
• Potential rent value of £1,250pcm
• EPC - D
Kensington Road, Earlsdon, Coventry
• Beautifully presented six-bedroom property
• No onward chain
• Fantastic Earlsdon location
• Six en-suites
Gross yield of 6.5% £230,000
• £650-£675 pcm per room
• Great addition to portfolio
• EPC - C
Potential yield of 9.6% £450,000
Haven Lodge
> Development of 35 studio apartments
> Modern fitted kitchenettes and bathrooms
> Highly sought-after location
> Allocated parking spaces
> Current rent value of £269,285.10 pa
> Tenants in situ
> EPC - B
Gross yield of 8% £3,250,000
• Prominent mixed use property with return frontage
• Newly refurbished
• Prominent for passing traffic Class E business and commercial
• Estimated rent of £26,600 per annum
• 144.15 spm (1,550 sq ft)
• EPC - E
LOCAL BRANCHES ACROSS THE MIDLANDS
