LANDLORD TIMES
Monthly news for landlords brought to you by:
August 2024
Cautious welcome for new government’s housing plans
The government has prioritised economic growth, focusing on housing and planning reforms, as it promises to “get Britain building”.
In a speech as part of the state opening of Parliament, the King outlined prime minister Keir Starmer’s key policies which included a Planning and Infrastructure Bill, a Leasehold and Commonhold Reform Bill and a new Renters’ Rights Bill.
The government has promised to “accelerate” the delivery of “high-quality infrastructure and housing” pledging to build 1.5million homes during the next parliament. It has also stated local communities won’t be able to prevent building and will only be to able influence how, not if, new houses are built.
The draft Leasehold and Commonhold Reform Bill will aim to end the “feudal leasehold system”, continuing the regulation
of ground rents and banning the sale of leasehold flats.
However in a move which could cause alarm to landlords, renters will be given “greater rights and protections ….. including ending no fault evictions and reforming grounds for possession”.
Sheldon Bosley Knight’s associate director Nik Kyriacou said: “As with all new statements, we cannot scrutinise as the devil will be in the detail.
“However, with the change in name to the Renters’ Rights Bill, we hope it is not going to be geared solely for the benefits of tenants, and indirectly punish landlords.
“We endorse any positive changes to allow renters a more secure tenancy and create a happier home. However, if the government ignores landlords, they will unintentionally exacerbate the rental crisis by scaring landlords away and creating an even worse
supply and demand imbalance.
“We also hope the government takes its time on making the correct decisions for the benefit of the industry as a whole, and not pressure itself in making a mark within its first 100 days in office. A rushed, unfitting decision will become a stain on the private rental sector rather than a mark.
“We will continue to lobby our local MPs and the government to ensure the new Bill is fair for all.”
Average rents continue to rise but more slowly
The average advertised rent of new properties coming onto the market has hit a new quarterly record. Figures published by property portal Rightmove show average rental prices are 7% higher than a year ago, slowing from a peak of +12% in 2022.
Excluding Greater London, the average asking rent per month in Q2 this year was £1,314, 6.8% higher than the same period last year. However the rise is less than the 8.5% increase for Q1 rents this year from last year.
In a further study, the Goodlord Rental Index published figures this month showing average rents had breached £1,400 per month, up 7.5% year on year.
The smallest shift was seen in the West Midlands, where rents are up by 4% compared to July 2023.
According to Rightmove, the number of enquiries each rental property is receiving is now 17, down from 26 this time last year, good news for renters struggling
to find a tenancy. However, it is still more than double the eight at this time in 2019.
The number of available properties is currently 14% higher than this time last year, while tenant demand is down 16% compared to last year.
However, despite these improvements, there is still some way to go to reach pre-pandemic supply and demand levels. The number of available homes to rent is still 20% below 2019, while 22% more tenants are looking to move than in 2019.
A recent Rightmove study showed around 120,000 more rental properties are needed to bring rental price growth back towards more normal pre-pandemic levels of around 3%, based on current demand.
Sheldon Bosley Knight’s lettings manager Claire Paginton said: “The imbalance between demand and supply is thankfully shrinking but it’s clear from these figures there is still some way to go.
“What is needed more than anything is more rental stock to come to the market. We have been calling for more homes for some time and we hope the new government makes good its promise to build the 1.5 million homes it says it will in the next five years”
“What is needed more than anything is more rental stock to come to the market. We have been calling for more homes for some time and we hope the new government makes good its promise to build the 1.5 million homes it says it will in the next five years.
“This will make a huge difference to the lives of people looking for a home – whether first time buyers or those looking to rent.”
Most tenants happy with their accommodation
More than eight in 10 (82%) of tenants in the private sector are happy with the housing and services provided by their landlords. The figure is more than the 74% recorded for the social rented sector.
According to the latest English Housing Survey, which covers the period 2022 to 2023, private renters were more likely to report being satisfied with the housing services provided than any other tenure.
Elsewhere in the survey, 63% of private renters and owner occupier leaseholders were satisfied with the repairs and maintenance provided by their landlord or freeholder. One in 10 were neither satisfied nor dissatisfied and 28% were dissatisfied.
Assessed against the Decent Homes Standard, and why they were
dissatisfied, 29% of respondents said the “landlord is slow to get things done”, over a quarter mentioned the “landlord does not bother” (26%), 13% said the “landlord does the bare minimum” and 12% said the “work done is of poor quality”.
Private renters complained mostly about repairs (79%), the quality of their home (32%) and the behaviour of the landlord (8%).
Other figures from the governmentpublished report show 4% of dwellings had a problem with damp, an increase from pre-pandemic levels (3%) and over the previous 10 years, the proportion of homes in the highest energy efficiency bands A to C increased from 19% to 48%.
The survey confirmed 4.6 million households in England are currently in the private rented sector,
representing 19% of all households. There are 4 million households in the social rented sector, representing 16% of householders in England.
Sheldon Bosley Knight’s lettings manager Josh Jones said: “This survey of official data is broadly good news for landlords.
“We know from speaking to our tenants, landlords are doing a good job providing a decent home and it is welcome to see official figures confirm our experience.
“However improvements can always be made and we would encourage landlords to call us if they need help sorting out any issues.
“If any of our landlords would like more information please call us and we would be happy to help.”
Private rental sector contributes £45 billion to UK economy
It’s well known one in five households (4.6 million people) in England and Wales live in private rented accommodation, but now new data also reveals the sector’s economic worth.
A report, commissioned by the National Residential Landlords’ Association and Paragon Bank, has found the sector in England and Wales contributes £45 billion of Gross Value Added (GVA) to the UK economy.
The Economic Contribution of the Private Rented Sector also found it supports approximately 390,000
full and part time jobs, benefiting industries such as construction, building maintenance and public administration.
The report focuses on economic value generated and supported by small and medium-sized landlords, those with 15 or fewer properties. Eight in 10 properties in the private rental sector (PRS) are estimated to be owned by small and mediumsized landlords.
In the West Midlands where there are approximately 311,000 properties in the sector and the GVA contribution was £3 billion
Levelling up moniker gone
Deputy prime minister and housing secretary, Angela Rayner MP, has scrapped the “levelling up” title from her government department, Ms Rayner told staff at the Department of Levelling Up, Housing and Communities that it is to become the Ministry of Housing, Communities and Local Government.
Ms Rayner said she planned to hand back power to local communities.
In a letter to local leaders she promised to “devolve new powers over transport, skills, housing, planning and employment support”.
In a statement following the announcement she said: “For too long a Westminster government has tightly gripped control and held back opportunities and potential for towns, cities and villages across the UK.
“That’s meant misguided decisions devastating the lives of working people, while our elected local leaders are forced to beg for scraps at the whim of Whitehall.
“It’s time to take back control, and this new government is focused on setting that potential free, with a full reset of our relationship with local government”
“It’s time to take back control, and this new government is focused on setting that potential free, with a full reset of our relationship with local government.”
which is 1.74% share of regional GVA. Approximately 26,000 full and part time jobs are supported by the PRS here.
Sheldon Bosley Knight’s lettings manager Natalie O’Sullivan said: “These figures highlight what a vital and positive contribution the sector makes not just in housing people but economically too.
“They will also be useful as we, on behalf of our landlords, continue lobbying for more properties to be built to accommodate the increasing need for privately rented housing.”
Investor appetite for rental property increasing among younger landlords
The average age of landlords buying new buy-to-let property has fallen over the last 10 years.
Analysis by Paragon Bank suggests this has been driven by strong growth in the proportion of landlords in their 30s.
According to the data, contained in Paragon’s report Next Generation Landlord Report, in 2014, 21% of purchases with a buy-to-let mortgage were made by a landlord in their 30s, compared to 31% in 2023. It also found the average age of a landlord fell from 46.4 years in 2014 to 42.9 last year.
The report shows there was a pronounced fall in the number of landlords in their 50s and 60s buying new property. Those in
their 50s accounted for 29% of purchases in 2014 and fell to 20% last year. For those in their 60s the figures decreased from 10% to 6%. For those in their 40s the figures remained consistent with 34% in 2014 and 32% in 2023.
For those aged between 18 and 29, 6% of purchases were from their age group in 2014, rising to 10% in 2023.
Overall, nearly three quarters of investment properties bought last year were made by a landlord aged 49 or younger, compared to six in 10 a decade previously.
Sheldon Bosley Knight associate director, Nik Kyriacou said: “This is hugely encouraging for the private rental sector. For too long we have
been hearing about how more landlords are exiting the market due to retirement.
“This report highlights investment in property is still viewed as not only attractive but desirable by the very group of people we need – those who are young and have the time to build a portfolio and are in it for the long term.
“Property is still a great investment and I would encourage any young person who has money to invest to think positively about investing in bricks and mortar.
“For anyone who would like advice please get in touch with me or one of our agents and we would be happy to help.”
Haven Lodge, Clay Lane, Coventry Gross yield of 8% £3,250,000
• 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
Cavalier Court, Siddeley Avenue Coventry, CV3 1BP
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Cavalier Court, Siddeley Avenue Coventry, CV3 1BP
A fantastic opportunity to acquire this two bedroom first floor apartment situated in the popular residential location of New Stoke Village. The property is perfect for a first time buyer or investor with a potential rental yield of 9.7% and is offered with no onward chain.
The accommodation on offer comprises generous lounge, fitted kitchen with oven and electric hob, two spacious bedrooms and bathroom
Further benefits include an allocated parking space, well maintained communal gardens and double glazing throughout.
A fantastic opportunity to acquire this two bedroom first floor apartment situated in the popular residential location of New Stoke Village. The property is perfect for a first time buyer or investor with a potential rental yield of 9.7% and is offered with no onward chain.
Siddeley Avenue, Coventry,
• Two-bedroom first floor apartment
• No onward chain
• EPC - C Siddeley Avenue, Coventry
• Highly sought-after location
• Allocated parking space
Cavalier Court, Siddeley Avenue, CV3 1BP
The accommodation on offer comprises generous lounge, fitted kitchen with oven and electric hob, two spacious bedrooms and bathroom
Further benefits include an allocated parking space, well maintained communal gardens and double glazing throughout.
• Current rent value of £850 pcm
Gross yield of 11.3% £90,000
2 1 1 C
• No upward chain
• Conveniently located close to town centre
Coach House Court, Loughborough Gross yield of 7.2% £150,000
• Two-bedroom second floor apartment
• Single parking space with barrier access
• Potential rent value of £900 pcm
• Communial grounds
• EPC - B
values and subsequent yields are only estimates unless tenanted, and subject to market fluctuations.
Bridgefoot Quay, Stratford-upon-Avon
• Two-bedroom retirement apartment
• Refurbished throughout
• Highly sought-after town centre location
• Vacant possession
• Potential rent value of £950 pcm
• Minimum age of 60
• EPC - C
A great opportunity to acquire this two bedroom end terraced property located in the popular residential location of Stoke. The property is perfect for a first time buyer, family or investor and is offered for sale with
The accommodation on offer comprises entrance hallway with stairs rising to the first floor, lounge with bay window which is currently used as a bedroom, spacious dining room, fitted kitchen, family bathroom with bath
Further benefits include a low maintenance rear garden, gas central
• End of terrace
• Spacious lounge/diner
• Perfect for a first time buyer or investor
• No onward chain
2 1 2 C
•
•
Highway, Wyken, Coventry
• Perfect for a first time buyer or investor
• Two double bedrooms
• Highly sought-after location
• Current rent value of £895 pcm
• Utility room • EPC - D
• Front and rear gardens with a workshop
• A charming and characterful terraced home
• Excellent central location
• Current rent value of £825 pcm
• No onward chain
• Perfect for a first time buyer or investor
• EPC - D The Old Stables, High Street, Pershore
• Kitchen with built in/fitted appliances
location of Stoke. the property is positioned close to University and Coventry City Centre, is perfect for a first family or investor and is offered with no onward chain.
accommodation on offer briefly comprises dining four with bay window, spacious lounge, beautiful kitchen including new appliances and family featuring bath with over shower. To the first floor are two bedrooms and a generous single bedroom.
include gas central heading with a new boiler, throughout, new electrics and a well presented and landscaped rear garden.
*INVESTMENT OPPORTUNITY*
Road, Coventry, CV3 1AP
A great investment opportunity for a current or aspiring Landlord within walking distance to Coventry City Centre. This traditional three bedroom property with four lettable rooms is situated in the convenient location of Stoke and has a current payable rent of £9,900 per annum with an increase once fully let.
• Three generous bedrooms
• No onward chain
A great investment opportunity for a current or aspiring Landlord within walking distance to Coventry City Centre. This traditional three bedroom property with four lettable rooms is situated in the convenient location of Stoke and has a current payable rent of £9,900 per annum with an increase once fully let.
Bolingbroke Road, Coventry Gross
• Close to Coventry university and Coventry city centre
Bolingbroke Road is located in Stoke and is situated within walking distance to Coventry University and Coventry City Centre making it convenient for professionals and students alike. A variety of local amenities are situated a short walk away for ease and the property is also positioned on a bus route.
• Recently renovated throughout
The ground floor accommodation on offer comprises entrance hallway, double bedroom, communal lounge with stairs rising to the first floor, fitted kitchen and shower room. To the first floor are two double bedrooms rooms, a shower room and a further bedroom featuring en-suite shower
• Current rental value of £1,100 pcm
• Contemporary ground floor bathroom
• EPC - C
Great road links such as the A444 and M6 are also only a short drive away.
Further benefits include a rear garden, double glazing throughout and gas
The ground floor accommodation on offer comprises entrance hallway, double bedroom, communal lounge with stairs rising to the first floor, fitted kitchen and shower room. To the first floor are two double bedrooms rooms, a shower room and a further bedroom featuring en-suite shower
Further benefits include a rear garden, double glazing throughout and gas central heating with a new boiler installed in March 2023.
4 3 1 D
• Perfect for an investor
• Four lettable rooms
Harley Street, Coventry Gross yield of 8.7% £225,000
• HMO Licence
• Close to university and town centre
• Current payable rent of £19,740 pa
• Communal lounge
• EPC - D
A fantastic opportunity to acquire this three bedroom end-terraced property positioned within walking distance to University Hospital. The property is perfect for a first time buyer, family or investor and is offered
The ground floor accommodation on offer comprises vestibule, hallway with stairs rising to the first floor, spacious lounge/diner, fitted kitchen and integral garage. To the first floor is a generous family bathroom with bath and over shower, two double bedrooms and a single bedroom all
Externally the property boasts front and rear gardens, parking space at
Further benefits include gas central heating and double glazing
Farber Road, Coventry, CV2 2BH
Farber Road, Coventry, CV2
Farber Road, Walsgrave, Coventry
• End of terrace three-bedroom property
• Walking distance to university hospital
• Garage
• No on-ward chain
3 1 1 D
• Current rental value of £1,350 pcm
• EPC - D
£230,000
• Central location with access to mainline railway station and town centre
• No upward chain
• EPC - C Jordan Close, Market Harborough
• Potential rent value of £950 pcm
• Two first floor bedrooms
• Single attached garage
*All rental values and subsequent yields are only estimates unless tenanted, and subject to market fluctuations.
Gross yield of 4.8% £235,000
• No upward chain
• Close to village centre
• Two bedrooms and family bathoom
• Car standing for two vehicles
• Potential rent value of £925 pcm
• Enclosed rear garden
• EPC - C
• Close to the town centre and all local amenitiese
• Three bedrooms, shower cubicle in master bedroom
• Lounge and separate dining area
• Enclosed rear garden
Gross yield of
£240,000
• Potential rent value of £995 pcm
• No upward chain
• EPC - D
Gross yield of 4.7% £250,000
Aspen Close, Great Glen
Heygate Street, Market Harborough
• Three-bedroom terrace property
• No upward chain
Kings Road, Evesham Gross yield of 5.8% £255,000
• Family bathoom
• Spacious garage/storage
• Potential rental value of £1,250 pcm
• Utility room and WC
• EPC - E
Pevensey Road, Loughborough
• HMO licence, recently used as student let
• Close to university and town centre
• No upward chain
• Four spacious bedrooms
• Potential rental value of £1,800 pcm
• Diner/kitchen with appliances
• Gas central heating
• EPC - C
Gross yield of 7.4% £290,000
Street, Stratford-Upon-Avon, CV37 6JF
• Prominent high street location
• Investment opportunity
• Gross Internal Area: 434m (46802ft2)
• Passing Rental Value: £47,000 per annum
• Leased to a national covenant
• Prominent high street location
• Potential for future development (STP)
• Prominent for passing traffic
• 20 parking spaces
• Development potenial (STP)
• Stratford town centre
• Freehold
• EPC - D
• Passing rent of £74,000 per annum
• Three-storey commercial property
• 793.94m (8,546ft2)
• EPC - TBC
Gross yield of 5.6% £1,300,000
Worcestershire
West Midlands
Leicestershire
