LANDLORD TIMES
Monthly news for landlords brought to you by:
January 2025
LANDLORDS CONTINUE TO INVEST IN PROPERTY
Labour’s buy-to-let stamp duty hike in the Budget appears to have had only a minimal impact on the market.
Of the home sales agreed across Britain in November, 10.7% were made by a landlord, above the 2024 average of 10.2%.
While these purchases remain well below the 2015 peak of 15.7%, the number of homes sold to buy-to-
let investors remains broadly in line with more recent years when such purchases have become rarer.
It is welcome news for tenants in the private rental sector as the industry had braced itself for an exodus of investors following the budget.
Landlords accounted for 10.8% of buyers in 2019 and 10.9% in 2020,
both of which were years when movers made up a much larger share of the market.
The figures, from Hamptons, also show most investors who agreed deals before the higher rates were announced have remained committed to them.
Only 28% of sales agreed by investors in the three months running up to the surcharge
increase were either renegotiated or remarketed. This is about half the level recorded during the aftermath of the 2022 mini budget when mortgage rates rose quickly.
The increase in stamp duty rates means a typical £300,000 property will see an investor pay £17,500 (5.8%), a mover £2,500 (0.8%), and a first-time buyer nothing. These figures will rise by an extra £2,500 in April 2025 for investors and movers.
Sheldon Bosley Knight’s director of lettings, Rebecca Dean, said: “This is good news for the private
rental sector. There had been worries when the Budget was announced the surcharge increase would put new investors off, and encourage those already in it to leave the sector, but this doesn’t seem to be the case for either scenario.
“Prospective tenants will breathe a sigh of relief as landlords have clearly not been put off by the decisions in the Budget, showing there is still appetite for investment in the market.”
“Prospective tenants will breathe a sigh of relief as landlords have clearly not been put off by the decisions in the Budget, showing there is still appetite for investment in the market.
“In what has been a year of uncertainty for the sector as a whole, these figures should give us all cause for optimism.
“Hopefully with the reduction in interest rates predicted for this coming year, more landlords will see it as an opportunity for further investment and crucially, not cash in their chips.”
Have your say on new EPC rules
Landlords are being urged to have their say on proposed changes to EPC rules.
The government is consulting on the changes, which are for England and Wales only, as part of its drive for net zero.
Amongst the issues are the accuracy and validity of EPCs. The proposal is to make them more useful, complete and understandable.
The government says it wants to provide a system which gives homeowners and tenants accurate information about the energy performance of their homes to allow them to make informed investment and purchase decisions.
It also wants to be able to provide accurate information to determine eligibility for schemes and measure progress against
government targets; provide an information tool to support a range of actions including reducing carbon emissions, tackling fuel poverty, improving decency and the Warm Homes Plan; and reflect the needs of wider users of EPCs beyond homeowners and tenants, such as suppliers of energy efficiency products and services, as well as lenders.
To achieve this, the consultation includes proposed reforms in five areas. These are: updating what EPCs measure through additional metrics; updating when energy certificates are required by refining the rules for obtaining EPCs and DECs; managing energy certificate quality; improving the accessibility of building performance data; and strengthening the quality of air conditioning inspection reports.
In addition the government is proposing to end the 28-day rule so homes would require an EPC before they are put on the rental market. It also wants to extend the scope of EPCs so a valid one is required for an entire house in multiple occupation (HMO) every time a room is rented out.
Short term holiday lets will also require EPCs and testing will be more frequent than the current 10year period and a valid certificate will be required for the whole tenancy period.
The consultation will run until February 26, 2025. Visit Consultation on Reforms to the Energy Performance of Buildings Regime - Ministry of Housing, Communities and Local Government - Citizen Space to take part.
New MTD income tax toolkit for landlords
HMRC has launched a new online toolkit to help landlords prepare for the up-coming changes regarding Making Tax Digital (MTD).
Making Tax Digital for Income Tax will be introduced in phases for sole traders and landlords, based on their gross annual income from self-employment and property (before expenses, allowances, and tax deductions).
HMRC says the changes will help those affected to pay the right amount of tax, reduce the change of making errors, have a clear view of their finances and plan for the future.
From April 6 next year, sole traders and landlords with a gross income of more than £50,000 from self-employment and property will need to use Making Tax Digital for Income Tax when they file their tax returns to HMRC.
From April 6, 2027 this threshold reduces to £30,000.
The toolkit includes an overview of the changes, who is affected and how to prepare, links to detailed guidance, FAQs and answers and communications resources such as an agent checklist, videos and printable posters.
Making Tax Digital for Income
Tax will require those sole traders and landlords affected, to keep digital records and send quarterly updates of their income and expenses to HMRC, using Making Tax Digital for Income Tax compatible software.
If they have kept accurate and upto-date digital records using the compatible software, the quarterly updates will be a simple check and send of a report generated by their software.
To access the toolkit click here. Agent toolkit — accessible version - GOV.UK
RRB back in Commons on January 14
The Renters’ Rights Bill will be debated in the House of Commons once again on January 14.
It is the “remaining stages” of the Bill and allows MPs to consider amendments to the legislation which were put forward at committee stage in November.
Following this is the Bill’s Third Reading which is likely to be pushed through the same day.
The Bill will then move to the House of Lords for debate and scrutiny.
Should the Lords reject or amend the Bill it will be sent back to the House of Commons for MPs to look at again before returning it to the Lords for final approval.
Sheldon Bosley Knight associate director Nik Kyriacou said: “Given how quickly this has gone through the parliamentary process since Labour got into government, it seems likely it will become law quite quickly.
“However I hope the Lords do their due diligence and go over
the Bill to highlight areas to the government which are still contentious – such as the ending of fixed term tenancies.
“While everyone in the industry wants certainty, it’s vital this incredibly important piece of legislation is not rushed through without the necessary checks and examination.”
Stamp duty threshold could encourage tenants to stay
longer
The forthcoming change to the stamp duty threshold will encourage longer tenancies and could even boost rental demand.
Asked how the government’s decision not to extend the temporary stamp duty threshold for buyers past the end of March might affect the rental market, nearly half (49%) of landlords said they thought more tenants would stay put or rent for longer.
A third (35%) of the 1,800 who responded to buy-to-let lender Landbay’s survey said they thought the move might increase demand. The threshold change announcement has provided landlords with a silver lining in what was an otherwise disappointing Budget for them.
Those landlords with mediumsized portfolios were the most optimistic about the change. Nearly a third (30%) of those who thought it would increase demand were landlords with between four and 10 properties while 24% had 11 properties.
Landbay’s sales and distribution director Rob Stanton, said: “The threshold change has given landlords cause for optimism in what is an uncertain time. But it is worth remembering the market is incredibly resilient as it is.
“Demand for decent rental properties already continues to outstrip supply, with many tenants ready and willing to rent across the country.”
Sheldon Bosley Knight’s lettings manager Loren Taylor said: “Although a small snapshot this is nevertheless encouraging news.
“The
Budget did not offer a great deal to investors but with so much demand it is still a great sector to be in and there are wins to be had.
“The Budget did not offer a great deal to investors but with so much demand it is still a great sector to be in and there are wins to be had.
“If any of our landlords would like advice or help with their investments, please call us or pop into branch as we'd be happy to help.”
Average rents continued to grow in 2024
Average rents grew 9.1% in the 12 months to November 2024. The latest figures from the Office for National Statistics (ONS) show a rise from 8.7% in the 12 months to October.
In England, average rents increased to £1,362 (an increase of 9.3%) in the 12 months to November 2024. In Wales the figure was £772 (8%) and it was £980 (6.5%) in Scotland. In Northern Ireland, average rents increased by 9% in the 12 months to September 2024 - the most recent month for which data is available.
Unsurprisingly in England, rents inflation was highest in London with an 11.6% rise. Yorkshire and The Humber saw the lowest inflation at 5.7%.
Average house prices also grew with the average UK house price increasing by 3.4%, to a provisional estimate of £292,000, in the 12 months to October 2024. This annual growth rate is up from 2.8% in the 12 months to September 2024.
Elsewhere rental growth dropped to the slowest rate for four years in November. Figures released by Hamptons in December showed average rents on newly let properties in Great Britain rose by just 2.6% over the 12 months to November, the lowest annual increase since the 2.4% recorded in November 2020.
However, between November 2020 and November 2024, rents rose by a total of 31.6%, outpacing average earnings.
In the Midlands, Hamptons' figures show average rents at £993 pcm on newly let properties which is a year-on-year increase of 5%.
Sheldon Bosley Knight’s lettings manager Claire Paginton said: “The fact rents are rising so much is a direct result of the imbalance between supply and demand in the private rental sector. There are simply too few properties available for those looking for somewhere to live.
“We need more landlords to invest in the sector to enable more people to find their rental home and this will help ease the pressure on rents.”
Tenant demand high with enquiries still double pre-pandemic figures
The average number of enquiries letting agents get about each available rental property is nearly double the level it was in 2019.
Figures from Rightmove show each available property receives an average of 11 enquiries. At this time in 2029 it was six.
This summer, agents were receiving 19 enquiries per property. Although the rental market is still busy, there are signs the imbalance between supply and demand is easing. Rightmove’s figures show the number of available properties improving by 7%. The number of prospective tenants looking to move has dropped by 19% compared to this time last year.
The latest market snapshot shows average rents outside London are £1,339 pcm, 4.5% above this time last year, the slowest rate of annual rent growth since 2021.
Rightmove predicts newly advertised rents outside the capital will rise by an average of 3% by the end of 2025.
Average UK rents have risen by 40% over the last five years, whilst earnings have risen by 28%. Just over a quarter of rental properties (26%) are currently seeing a reduction in the advertised rental price.
Sheldon Bosley Knight’s lettings manager Josh Jones said: “This year I have seen an ever-increasing
number of prospective tenants per property leaving many disappointed and with nowhere to live.
“We badly need more properties available for rent – which means encouraging existing landlords to stay in the sector, new ones to come in and invest and more homes to be built.
“Until this happens, rents will continue to be high as will the numbers of those seeking somewhere to live.
“If any landlords would like information or advice on any aspect of their portfolio, please do get in touch as we’d be delighted to help.”
Longford Bridge Court, Union Place
• Great investment opportunity
• Lease length - 107 years
• Communal gardens and parking
• Current rent value of £615 pcm
• Tenants in situ
• EPC - D
• No upward chain
• Long extended lease
• Walking distance to Jaguar Land Rover
• Great for first time buyer or investor
£90,000
• Current rent value of £735 pcm
• EPC - D
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 sqft and two-bedroom apartments at 750 sqft.
> 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
Coach House Court, Loughborough
• No upward chain
• Conveniently located close to town centre
• Two-bedroom second floor apartment
• Single parking space with barrier access
• Potential rent value of £900 pcm
• Communial grounds
• EPC - B
• Two-bedroom retirement apartment
• Refurbished throughout
£145,000
• Potential rent value of £950 pcm
• Minimum age of 60
Bridgefoot Quay, Stratford-upon-Avon Gross yield of 7.6% £150,000 SOLD
• Highly sought-after town centre location
• Vacant possession
• EPC - C
• Two-bedroom, second floor apartment
• No upward chain
• Allocated parking space
• Easy reach of mainline rail to London Marylebone
• Current rental value of £950 pcm
• Tenants in situ
• EPC - C
• Two-bedroom, first floor apartment
• No upward chain
£160,000 SOLD
Court, Alcester Road Gross yield of 6.3% £180,000
• Walking distance to the town centre
• Allocated parking space
• Potential rental value of £900-£950 pcm
• Allocated parking space
• EPC - B
Brookfield
Rosemary Drive, Banbury
• 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% £2,500,000
PART OF | SHELDON BOSLEY KNIGHT
• Two-bedroom end terraced house
• No onward chain
• Highly sought-after location
• Close to excellent road links across the city •
• A charming and characterful terraced home
• Excellent central location
• 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
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
• Beautifully presented six bedroom property
• No onward chain
• £650-£675 pcm per room
• Great addition to portfolio
• EPC - C Kensington Road, Earlsdon, Coventry Potential yield of 9.6% £450,000
• Fantastic Earlsdon location
• Six en-suites
Milverton Crescent West, Leamington Spa
• Stunning town house
• Sought after location close to town centre
• Secure gated parking for two cars
• Three bedrooms and three bathrooms
• Current payable rent of £1,850.00 pcm
• Exceptional finish
• Rare opportunity for investment
• EPC - B
Gross yield of 4.4% £499,500
• 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
• 144.15m2 (1,550 sqft2)
• EPC - E
West Midlands Leicestershire Worcestershire
