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October 2024
Rayner sets out housing vision
Deputy prime minister Angela Rayner MP opened the Labour Party conference with her vision of how housing policy will change under her watch.
The package of measures include a consultation on a new Decent Homes Standard for both private and social rented sectors, bringing forward legislation on Awaab’s Law to ensure issues such as damp and mould are not just identified, but are dealt with to set timescales, bringing forward a plan to accelerate the removal of unsafe cladding on buildings and bringing forward plans to increase the building of high-quality homes.
She also took the opportunity to set out her ambition for the Renters’ Rights Bill which will get its second reading in the House of Commons on October 9.
An updated version of the details contained within the proposed legislation was published on September 26 to include new details on rent repayment orders which had not previously been included.
In her speech, Ms Rayner said:
“Our renters’ bill will rebalance the relationship between tenant and landlord and end no fault evictions – for good.
“Our long-term plan will free leaseholders from the tyranny of a mediaeval system.
“Whether you’re a leaseholder, a tenant, a home-buyer or without somewhere to live – this government is on your side.”
Sheldon Bosley Knight’s lettings director Rebecca Dean said:
“The devil will be in the detail with the Bill and we will be watching its progress through Parliament keenly.
“The sector needs clarity but we also need to make sure it really is fair for both landlords and tenants. We will be challenging the government over any detail which we believe falls down on that.
“If it penalises landlords excessively it will lead to an exodus from the sector, putting individuals and
families at risk of homelessness –which is not what anyone wants.”
University towns achieving high yields
Coventry and Loughborough are two university towns where landlords achieve some of the highest yields.
Paragon Bank’s analysis of buyto-let mortgage offers in popular student postcodes found the two Midlands cities achieved 8.08% and 7.68% yields respectively.
Property in student postcodes across the UK achieved an average yield of 7.04% in July 2024, a figure that has risen from 6.12% in the same period two years ago.
Landlords in Stoke, who provide accommodation to students studying at Stafford and Keele universities, came top of the league table, achieving an average yield of 9.43%, based on offer data over the past two academic years.
Average annual rental income in the city’s student postcodes stood at £13,860, with the average student property priced at £146,944.
Coventry, which serves Warwick University and the University of Coventry, came in at number five with student postcodes achieving a yield of 8.08%. The average annual rental income was £29,173 and the average property valuation was £361,153.
Loughborough was 10th in the ranking with average annual rental income at £25,201 and average property valuation at £323,103 producing an average yield of 7.68%.
Sheldon Bosley Knight’s lettings manager Loren Taylor said: “I’m not surprised Coventry has scored
so highly on this table. It is a great city and with two universities there is huge demand for student accommodation.
“With property prices generally below the national average and interest rates at a more favourable level than they have been for the past two years, it is an ideal time for buy-to-let investors to add to their portfolios.
“There is also a lot of investment planned for Coventry with the £100 million Friargate scheme so it is a city which is definitely on the up and a good place to invest in now.
“For any landlord wishing to take advantage of this, please do call the team in the Coventry office to see how we can help.”
BTL mortgage rates on the slide
There is good news for buy-to-let (BTL) investors who are looking to re-mortgage.
Despite the Bank of England’s decision to resist temptation to cut interest rates last month, many lenders have announced reductions to their BTL products. NatWest, Accord Mortgages, Zephyr Homeloans and Virgin Money are among those who have all dropped their rates, some now below 4%.
Outlining the decision to hold rates at 5%, the Bank said: “Monetary policy will need to continue to remain restrictive for
sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term have dissipated further.”
“We anticipate there to be at least one if not two cuts to the base rate before the end of the year which will hopefully translate into further reductions for BTL investors looking to re-mortgage”
Associate director Nik Kyriacou said: “We anticipate there to be at least one if not two cuts to the base rate before the end of the year which will hopefully translate into further reductions for BTL investors looking to re-mortgage. “Alongside the ever-increasing demand for rentals, the increase in average rents and good yields on many properties, this is a great time to re-invest in the private rental sector.”
The Bank’s next interest rate announcement is due on November 7, a week after the Budget on October 30
Limited company structures incorporate more of landlords’ portfolios
Landlords who utilise limited company structures have incorporated an increasing proportion of their portfolios over the past four years.
In Q2 2020, for an average landlord who utilises a limited company structure, 48% of the portfolio was incorporated. This figure rose to 81% in the second quarter of this year.
Of the 799 landlords surveyed for the research, which was carried out by Pegasus Insight for Paragon Bank, this trend looks set to continue.
Of the landlords who say they intend to buy in the next 12 months, 67% plan to do so through a limited company.
This proportion has also grown significantly since the second quarter of 2020 when it stood at 45%. In contrast, only 31% plan to buy in a personal name, falling from 36% during the same period. The strategy is adopted by more experienced landlords as the propensity to own properties through limited companies increases with portfolio size. This ownership mechanism is adopted by 37% of landlords who have four or more buy-to-let mortgaged properties, compared to 15% amongst those with between one and three buy-to-let homes.
Sheldon Bosley Knight’s associate director, Nik Kyriacou said: “To mitigate the impact of tax
changes phased in from 2016, landlords are increasingly using limited companies.
“I don’t believe the tax changes imposed by the last government are going to change, or do so in landlords’ favour, so it is certainly something investors could look at, especially if they have a portfolio of properties.
“However, while incorporation may be the best course of action for some landlords, for others it may not be so I would urge any buyto-let investor to seek professional financial advice before making any decision.”
Consultation promised on Decent Homes Standard
A consultation on a new Decent Homes Standard for both private and social rented sectors is to take place “as soon as possible”. The government said it will look to ensure safe, secure housing is the standard people can expect in any rented property.
The previous government’s consultation estimated 79% of properties in the private rented sector (PRS) already meet the current standard and won’t require any additional investment. However, this leaves 21% of properties that will need to invest in upgrades.
Awaab’s Law legislation for the social rented sector will be brought forward this autumn with incidents of damp and mould to be investigated and remedied to set timescales, and protections will be extended to the PRS
through the Renters’ Rights Bill. Announcing the plans at the Labour Party conference, deputy leader Angela Rayner MP said implementing these policies would support tenants to secure faster repairs, reducing health and safety risks.
She said: “I will clamp down on damp and mouldy homes by bringing in Awaab’s Law in the social rented sector this autumn and we’ll extend it to the private rented sector too.
“We will consult and implement a new Decent Homes Standard for social and privately rented homes, to end the scandal of homes being unfit to live in.”
The social housing sector will also have other requirements imposed on it including the introduction of a Competence and Conduct standard.
The government will bring forward further plans for high quality housebuilding through the revised National Planning Policy Framework in the next few months.
Sheldon Bosley Knight’s lettings manager Josh Jones said: “Extending the Decent Homes Standard and Awaab’s Law into the PRS is welcome and those landlords who already provide such accommodation should have nothing to fear.
“Although we would support the proposals, it’s essential all landlords comply so as the consultation moves forward, we will aim to find out how the government will ensure local authorities are adequately resourced and funded so they can enforce the new rules.”
Landlords invited to industry forum
Landlords are encouraged to join a one-day industry event this month.
The Landlord Forum is led by the private sector housing teams from Warwick and Stratford-upon-Avon district councils in partnership with the local Landlord Steering Group.
The event, on Tuesday October 22, will be held at Stratford-uponAvon racecourse between 12.30pm and 4pm.
It will feature exhibitions from local specialist companies who will cover aspects of property management and bite-size talks will be held covering a range of topics, including advice on the law and practice surrounding damp and mould, self-managing landlord tips and recent policy and legislation changes.
as part of the popular Tenancy Agreement Clinic and there will also be an opportunity to network. Expert advice will also be available on subjects such as letting property, solar panels and landlord insurance.
The council’s partnership agency Act on Energy will be on hand to give advice on current energy efficiency grants and schemes suitable for rented properties.
Councillor Liz Coles, Stratford-onAvon district council’s housing and customer services portfolio holder at said: “We know that private landlords play a fundamental role in the local housing sector and this event is a great opportunity for them to learn more and see the support and help available to them as well as meeting representatives from their local private sector housing teams.”
“For our landlords who are local I would urge them to attend. Having been at the one held earlier this year it is a great way to network, find out more about legislative changes as well as a forum to ask questions of experts.
“For
our landlords who are local I would urge them to attend. Having been at the one held earlier this year it is a great way to network, find out
more about legislative changes”
“I look forward to seeing lots of our landlords there!”
Visit https://www. tickettailor.com/events/ warwickdistrictcouncil/1267797
Government confirms plans to stop landlords renting poorly-insulated homes
The government is set to crack down on rental homes which don’t reach an EPC rating of C by 2030.
Energy and Net Zero secretary Ed Milliband MP told delegates at the Labour Party conference landlords will be prevented from renting out homes which are not compliant. He has committed to consult by the end of the year on the plans to boost minimum energy efficiency standards for both private and social rented homes by 2030.
Currently those in the private rented sector (PRS) can be rented out if they meet an EPC of E while those in the social sector have no minimum at all.
The government said over one million homes will be lifted out of fuel poverty as part of its plans for
what it calls “the biggest potential boost to home energy standards in history”.
He also announced a new Warm Homes: Local Grant to help lowincome homeowners and private tenants with energy performance upgrades and cleaner heating and confirmed the continuation of the Public Sector Decarbonisation Scheme, as well as the Warm Homes: Social Housing Fund, which replaces the Social Housing Decarbonisation Fund, to support social housing providers and tenants.
Sheldon Bosley Knight’s lettings manager Gavin Stokes said: “Everyone welcomes the idea of reduced energy bills and more energy-efficient homes. However, the new EPC rules
must be realistic, achievable and affordable.
“Much of the privately rented accommodation stock is old and insulation was not thought of when they were built. Some of it will be extremely difficult and expensive to improve and any retrofit done now could be more than many landlords could afford. It may also take longer than the six years til the deadline.
“It is crucial the consultation acknowledges the different types of property across the sector so targeted support can be given and funding where it is needed most.
“We would want the government to recognise this and provide adequate grants and financial help to those landlords who will be impacted.”
Lobbying for landlords
As the Renters’ Rights Bill continues its passage through Parliament, groups representing landlords are continuing to lobby the government to ensure landlords’ concerns are heard and listened to.
representative of ARLA Propertymark, recently took part in an online forum with representatives from the Department of Housing, Communities and Local Government (DHCLG). It was a chance to find out more about the direction of the Bill as well as highlight some of the issues faced by landlords.
The lettings market continues to dominate news headlines as we approach the end of 2024.
A change in government has resulted in a change of name for a widely discussed Bill, which was first introduced in Parliament over 500 days ago. Now, the Renters' Rights Bill is gaining momentum, with the government publishing full details in its plan to transform the experience of private renting.
The Bill includes many changes: the removal of the Section 21 notice, the introduction of new possession grounds in the Section 8 notice, the removal of fixed-term tenancies, and rights to request a pet, among others. These are just a few of the changes the Labour government intends to implement.
As a regional representative of ARLA Propertymark, I had the opportunity to meet with the Department of Housing, Communities and Local Government (DHCLG) to convey landlords' concerns. Our members, including myself, have consolidated these in a letter to Housing Minister Matthew Pennycook MP, which we hope will be taken constructively to
strengthen the legislation.
These are some of the key issues we raised at the meeting.
Removal of fixed-term tenancy agreements:
Landlords and letting agents are concerned the introduction of a new tenancy regime, which eliminates fixed-term tenancies as an option, will reduce security for both tenants and landlords, as well as limit flexibility within the private rented sector.
Fixed-term tenancies provide tenants with security of tenure and guarantee rent payments for landlords. We have found such agreements are often requested by tenants, including hospital nurses working for set periods, overseas workers, and families wishing to remain in a particular area due to their children's schooling.
Similarly, areas like Leamington Spa and Leicester, which have strong student populations, rely on the stability fixed terms provide to support their rental markets. Many landlords, especially those in my area, want to plan for their future over the next five to 10 years, and having the option of a fixed-term agreement is crucial to their longterm planning.
We outlined the complete removal of an initial fixed-term tenancy would effectively turn every rental agreement into a short-term let, which, given the limited housing supply, would likely lead to higher rents for individuals, couples, and families seeking long-term homes.
To support both renters and
landlords, we advocate for retaining fixed-term tenancies as an option and have requested an impact assessment of the government's proposal to remove them be conducted and shared publicly with the sector.
Tenant pet requests:
While some landlords worry allowing pets may lead to property damage, we acknowledge allowing them can make a rental property more attractive, encourage longer tenancies, and help address issues like loneliness.
I have two dogs myself, and although they can be a handful when taking long walks across the hills, I wouldn’t trade them for the world.
However, some landlords may have had negative experiences, and even well-behaved pets can cause damage. It is a positive development the Bill proposes amending the Tenant Fees Act 2019 to allow landlords to take out pet insurance and pass the cost on to tenants.
However, insurance products and costs can vary, and policies may be cancelled or renewed at times that do not align with tenancies.
Additionally, detailed guidance is needed on what qualifies as “unreasonable” when a property is deemed unsuitable for pets. This is especially important in rural areas where the proximity of pets to
livestock may be problematic.
Ultimately, as pets do present a higher risk of property damage, the government should not only require pet insurance but also allow greater flexibility in setting deposit levels to reflect this increased risk.
Court reform system linked to the abolishment of Section 21 and additional grounds for Section 8: There are persistent concerns regarding the capacity and efficiency of the courts, with wait times from claim to hearing continuing to increase. In the case of private rental sector (PRS) possession claims, the average waiting period for a warrant to be issued is around 29 weeks, and in some regions, this can reach up to 40 weeks.
As part of plans to further digitalise court processes related to housing possession cases, mandatory eviction notices should be incorporated into the possession claim system.
Online platforms for submitting evidence need to be expanded, more hearings should be conducted remotely, and the length of hearings should be extended. However, without improvements to court infrastructure, including better support, guidance on using the systems, and reliable connectivity across the UK, these initiatives will face significant limitations. Additionally, waiting times for
private county court bailiffs vary significantly across England and Wales based on geographic demand. A shortage of county court bailiffs in many regions contributes to delays in enforcing possession orders.
These delays could be reduced by increasing the number of judges, providing more bailiffs with sufficient resources, and granting landlords automatic rights to engage High Court enforcement officers as a faster alternative to county court bailiffs for tenant evictions.
In summary, we look forward to continuing our work with the government and its officials as the Bill progresses through Parliament. I am a strong advocate for markets evolving to meet the needs of both landlords and tenants, but any change requires a well-thought-out and carefully implemented process.
“We remain hopeful feedback from landlords like yourselves will be considered constructively to help strengthen the rental market in the future.”
We remain hopeful feedback from landlords like yourselves will be considered constructively to help strengthen the rental market in the future.
• Two-bedroom mid-terraced house
• No onward chain
• Highly sought-after location
• In need of modernisation
• Current rent value of £850 pcm
• Vacant Possession
• No upward chain
• Conveniently located close to town centre
• Two-bedroom second floor apartment
• Single parking space with barrier access
Gross yield of
£150,000
• Potential rent value of £900 pcm
• Communial grounds
• EPC - B
Gross yield of 7.2% £150,000
Humber Avenue, Coventry
Coach House Court, Loughborough
• Two-bedroom retirement apartment
• Refurbished throughout
• Potential rent value of £950 pcm
• Minimum age of 60
• Highly sought-after town centre location
• EPC - C Bridgefoot Quay, Stratford-upon-Avon
• Vacant possession
• Two-bedroom mid terraced house
• Close to Walsgrave Hospital
• Well refurbished property
• Popular location • Potential rent value of £950 - £1,000 pcm • EPC - C Sewall Highway, Wyken, Coventry
Drive,
• 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
Court, Alcester Road
• Two-bedroom, first floor apartment
• No upward chain
• Walking distance to the town centre
• Allocated parking space
Gross yield of 6.9% £165,000
• Potential rental value of £900-£950 pcm
• Allocated parking space
• EPC - B
Gross yield of 6.3% £180,000
Brookfield
Rosemary
Banbury
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 sq ft to executive five-bedroom detached houses at 1,986 sq ft, 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 750sqft.
> 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
• Two-bedroom end terraced house
• No onward chain
• Highly sought-after location
• Close to excellent road links across the city • Potential
• 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,
• Kitchen with built in/fitted appliances
Pershore
• HMO licence, recently used as student let
• Close to university and town centre
• Potential rental value of £1,800 pcm
• Diner/kitchen with appliances
Pevensey Road, Loughborough Gross yield of 7.4% £290,000 SOLD
• No upward chain
• Four spacious bedrooms
• Gas central heating
• EPC - C
• Three-bedroom property
• Village location
Harcourt Estate, Harborough Road Gross yield of 4.2% £365,000
• Breakfast kitchen with built in appliances
• Modern bathroom suite
• Potential rental value of £1,300 pcm
• Car standing
• EPC - D
• Six self-contained flats within property
• No onward chain
• Excellent condition
• Sought after location within walking distance of Nuneaton
• Current rental value of £1,100 pcm
• Three rooms vacant offering flexibility
• Prominent building on Regent Street
• Historically excellent occupation rates
• Grand property located in city centre
Warwick Row, Coventry Gross yield of 8.2% £600,000
• Close to Coventry train station
• Viewings recommended to realise opportunity
• Current payable rent of £4,080 pcm
• Rare opportunity for investment
Regent
Nuneaton
• Prominent mixed use property with return frontage
• Newly refurbished
• Prominent for passing traffic
• Estimated rent of £26,600 per annum • 144.15m2 (1,550 sqft2) • EPC - E
West Midlands Leicestershire Worcestershire
