LANDLORD TIMES
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ENCOURAGING YOUNG LANDLORDS INTO THE PRS
Liam West Joinery 07713 875104.
Despite the doom and gloom headlines indicating a mass exodus of landlords from the private rental sector (PRS), it’s heartening to note there is still an appetite for buy-tolet investments – particularly amongst younger people.
A survey last year from Paragon Bank indicated 21% of properties
bought with a buy-to-let mortgage in 2014 were made by a landlord in their 30s. Ten years on this figure is now 31%.
The analysis in Paragon’s report, “Who are the portfolio landlords of the future?” also found landlords aged between 18 and 29 accounted for 6% of purchases in 2014, but this figure had risen to
10% by last year.
Data from the Office for National Statistics in December 2024 shows the two most prevalent reasons given for becoming a landlord were as a pension contribution (42%) and a preference for investing in property rather than other investments (42%).
This is certainly true for one young man who has a buy-to-let in Evesham, Worcestershire.
Liam West acquired the property jointly with his mother through an inheritance six years ago.
The 26-year-old, who has his own joinery business, bought his mother out four years ago with a buy-to-let mortgage and has continued to rent the property out as he believes it to be a good investment.
Speaking to Landlord Times he said: “I took the view it was a long term investment and more profitable than having the money sitting in a bank. It’s certainly better and a less risky option than investing in crypto or stocks and shares.”
Liam may have become a landlord by accident rather than design initially but he’s keen to stay in the sector and make the most of it.
He said: “It’s a lot to take on and a responsibility. It’s also hard and at times very stressful. However, there are a huge number of positives, including the financial rewards if I were to sell.
“It helps in that I’ve been lucky with the two sets of tenants I’ve had, making it a generally positive experience so far. There is mutual respect and trust and my tenant knows if anything goes wrong –such as the boiler which needed replacing earlier in the year – it will be fixed.
“I’ve also had a great managing agent in Josh Jones at Sheldon Bosley Knight which has been key. He’s been a massive support to me, especially in the early days,
and I know I can count on him to help me navigate any bumps in the road, such as what will happen with the Renters’ Rights Bill.
“He was a fantastic help when interest rates shot through the roof as a result of the mini budget. At that time my mortgage went up £350 a month instantly which was awful but I adapted to it.
I know interest rates will come down at some point and/or rents will catch up.”
As well as being pragmatic and having a positive outlook, he’s also keen to encourage other young people to think about becoming a landlord.
He said: “For me being a landlord is great and I’d encourage anyone to do it if they can. Not a lot of people I know, or who are my age, are landlords but it is definitely do-able for my age group.
“My advice is see it as a long term investment rather than a quick win. Play the long game, get a decent managing agent, listen to their expert opinion and advice, take out income protection insurance, don’t overspend and make sure there is mutual respect between landlord and tenant.
“Unfortunately you do hear horror stories and there can be a stigma attached to being a landlord. However, we are providing a roof over someone’s head and most of us are here to do the right thing by our tenants, so it is very rewarding.”
Sheldon Bosley Knight senior lettings manager Josh Jones said: “At a time of negative headlines suggesting landlords are exiting
the market, it’s great to see stats which suggest younger people are inspired to join the sector.
“Liam is a great example of how young people can be a positive force within the PRS. He is a great landlord, responsible and respectful and I hope he continues to be part of the sector for many years to come.”
“Liam is a great example of how young people can be a positive force within the PRS.
“We desperately need landlords such as Liam in the sector who can provide the very homes people are crying out for.
“He is a great landlord, responsible and respectful and I hope he continues to be part of the sector for many years to come.”
Josh Jones
Evesham senior lettings manager
Lords’ detailed examination of RRB has begun
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.
Rents and yields still on the up
UK rents increased by 7.7% in the 12 months to March 2025.
Figures from the Office for National Statistics (ONS) show monthly rents are now an average of £1,332. However, the annual growth rate is down from 8.1% in the 12 months to February 2025.
In England average rents rose to £1,386 (7.8%) in the 12 months to March 2025 with the highest annual inflation seen in the north east at 9.4%. In the West Midlands the annual growth was 6.9% and in the East Midlands it was 8.3%.
Yields too are up with typical returns of 7.4% in the first quarter of 2025 across England and Wales.
Figures from Fleet Mortgages’ Buyto-Let Rental Barometer for Q1 found it was an increase from 7.1% during the same period last year.
Yields improved across every region of England and Wales with
the exception of Yorkshire and The Humber, where they still stand at 8.1%.
The West Midlands saw typical yields of 7.7%, a 1.1% uplift on the previous quarter, although almost identical to the same period in 2024.
The East Midlands saw typical yields of 7.1% a drop of 0.6% on the previous quarter but a rise from 6.6% seen in the first quarter of 2024.
The best rental yields across England and Wales are in the North East, at 9.2%, increasing by 0.8% year-onyear.
Elsewhere, Fleet’s data shows the dominance of the limited company landlords within the buy-to-let market. Almost 80% of mortgage applications received by Fleet during Q1 of 2025 were held in a limited company name.
The data also shows the average number of properties held within
a typical landlord’s portfolio is nine properties, with over 55% of applications received from landlords holding four or more rental properties during the last quarter.
Sheldon Bosley Knight’s associate director Nik Kyriacou said: “The fact average yields and rents are remaining steady and/or increasing is good news for landlords.
“The sector is still a good place to invest in and data such as this supports this.
“With the tax changes we have seen in the last few years it’s also no surprise many landlords are choosing to set up limited companies.
“If any of our landlords would like advice or help in getting the best out of their portfolio please do contact one of our offices as we’d be happy to help.”
Numbers of older renters set to rise
The proportion of people aged 65 and over living in the private rental sector (PRS) is predicted to increase in the next 15 years.
A report by charity Independent Age, suggests if current trends continue, by 2040 more than one in every four older people could be privately renting.
“Turning the dial: energy efficient homes for older private renters in England” revealed the difficult experience of older renters in the PRS in cold, energy inefficient homes and the barriers in making the necessary property improvements.
Interviews from tenants aged 65 and
over and landlords were analysed to understand the effects of an energy inefficient home.
One of the key findings from the study showed there was little awareness amongst tenants of Energy Performance Certificates (EPCs) and what they mean.
It found there was a lack of trust in EPC ratings and 66% of those polled supported raising the Minimum Energy Efficiency Standards (MEES) in the private rented sector from E to C.
The charity wants the government to support landlords to improve their properties so they can be more
energy efficient and less costly to heat for those living in them.
Its report found only 38% of landlords in England were aware of existing grants to do so. Just over half (58%) said cost was a barrier to retrofitting their home.
A spokesperson for Independent Age says: “It’s vital the government acts to ensure homes in the private rented sector are brought up to higher standards of energy efficiency.
“Not only will this help reach the UK’s net-zero targets, importantly, it will mean older private renters on a low income do not have to live in a home that is dangerous for their health.”
Investors target doer-uppers
Landlords look for doer-uppers when investing in property, spending approximately £8,500 a year on improvements across their portfolios.
A survey of more than 500 landlords found 44% prefer buying homes requiring some form of improvement. A quarter are more likely to buy properties ready to move into while 32% had no preference.
The research, undertaken for Paragon Bank’s “Improving standards and sustainability in PRS properties” report, found investment varies amongst landlords but obviously tends to increase with portfolio size.
Those with between one and three properties spend £3,500 a year on average, increasing to £8,100 amongst landlords with between four and 10. An average annual investment of approximately £11,800 is made by those with a portfolio of 11 or more rentals.
Like investment levels, the types of maintenance varies but there is a propensity for internal renovation.
Around six in 10 landlords – 65% and 62% respectively – enhance the look and feel of homes with new bathrooms or new kitchens.
Three quarters (76%) of landlords
have installed new boilers, but only 3% opt for heat pumps.
Installing new windows is done by half of investors, while one in four (39%) have replaced a roof or external doors. Over a quarter (27%) have landscaped a garden and 6% have extended a property.
Alongside changes to enhance properties, landlords have also improved the safety of their rental homes, with 54% remedying damp issues and 22% addressing any structural issues.
Sheldon Bosley Knight’s lettings manager Claire Paginton said: “In the current economic climate, it’s not a surprise many investors are choosing to tackle a property which needs renovation.
“These properties are often cheaper so any upgrade can add value as well as command better rents and yields.
“These properties are often cheaper so any upgrade can add value as well as command better rents and yields.”
Alternative deposit solution
In our latest podcast, Kate Gould talks to Sheldon Bosley Knight’s lettings director Rebecca Dean and flatfair’s senior partnership manager, Collette Naylor, about alternative deposit solutions for landlords and tenants.
They talk about the benefits of flatfair’s solution as well as how it’s
helping make renting simpler and fairer for all.
With the Renter’s Rights Bill including a clause to prohibit landlords from claiming rent upfront, alternative deposit solutions will be in demand.
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“However it’s also heartening to see how landlords are taking positive steps to refurbish their existing properties with maintenance work such as installing new boilers, fixing damp and structural issues and replacing doors or roofs.
“As well as having a duty of care to their tenants to ensure they are living in a home which is safe, warm and dry, any refurbishment or renovation will increase the value of the property.
“If any of our landlords would like advice with any improvement works, please do call us as we’d be happy to help.”
Claire Paginton
Leamington lettings manager
• 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 SOLD
Quinton Parade, Coventry
Rosemary Drive, Banbury
• 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
• Mid-terraced house
• No onward chain
• Popular Coundon location
• Extended fitted kitchen
£185,000
• Potential rent value of £1,250pcm
• EPC - D
Gross yield of 6.5% £230,000
The Old Stables, High Street, Pershore
Barkers Butts Lane, Coventry
• 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
Kensington Road, Earlsdon, Coventry Potential
• Beautifully presented six-bedroom property
• No onward chain
• Fantastic Earlsdon location
• Six en-suites
• £650-£675 pcm per room
• Great addition to portfolio
• EPC - C
Church Street, Leamington Spa
• 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
Gross yield of 5.6% £430,000
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
• Development potential STPP
• Investment opportunity
• EPC - D Forest Road, Loughborough
• Current rent £20,000 per annum
• 255m2 (2,739.81 Sq Ft)
• Centrally located close to the town centre
Large Car park
LOCAL BRANCHES ACROSS THE MIDLANDS
