How Will The Kings Speech Impact the Rental Market?
In his King’s Speech to Parliament last month, King Charles III announced nearly 40 Bills the new Labour Government would like to introduce, and housing was right in the spotlight. H&H Land & Estates Property Manager for the Northeast, Rebecca Robins, outlines the impact of the Government’s new measures for the property industry and for investors.
The priority focus in the Labour Government’s manifesto for housing is to look at regulating the private rented sector, to ensure there is better housing available for tenants, and good landlords who will do everything they can to provide well maintained properties to the market.
Secondly, they would like to abolish the Section 21 eviction notice known as the ‘No Fault Eviction,’ to help provide more security for tenants. What is yet to be made clear is how Labour are going to help landlords deal with poor tenants, but overall, their aim is to increase the number of landlords and properties within the rental market.
Within the proposed new Renters’ Rights Bill several measures will target the improvement of property standards, with a Decent Homes Standard (DHS) and Awaabs Law to cover the private rented sector (PRS). A DHS will set minimum standards before a property can be let to tenants. Awaabs Law will provide clear legal expectations about how and when agents and landlords must respond to and resolve hazards reported during a tenancy.
The current rental market is saturated with prospective tenants compared to the amount of rental housing available, which has caused the demand for rental properties to be higher today than it has ever been. Rightmove reported in October 2023 that they receive on average 25 enquiries per rental property. Compared to 2019, the number of tenants looking to move had increased by more than 40%, while the number of available homes to rent had dropped by 35%. These figures are estimated to have increased even further in 2024.
If as a landlord or a prospective landlord you are becoming concerned about new legislation, please bear in mind that it will take time to bring in any changes and organise the court systems to work in conjunction with new legislation. Over the next 12 – 18 months, landlords will be able to have their say beforehand to ensure any changes made are fair for both parties.
But there is little doubt that the changes proposed in The King’s Speech will make the letting process more complex and challenging than it seems already, and that will make it even more sensible to rely on the expertise of professionals to ensure that your letting experience is as smooth and profitable as possible.
If you are thinking of investing in property or have an investment property that you would like to rent out, finding the right tenant to suit you is key. The best way to do this is by using a good letting agent you can trust to be thorough and honest with you every step of the way – starting with vetting prospective tenants well by checking their employment references, affordability references, credit rating, right to rent in the UK and previous landlord references, and customising tenancy agreements to suit your needs.
By following this best practice, we have been able to help landlords throughout Northumberland, County Durham and North Yorkshire create major portfolios of successful tenancies with low turnover rates. With the right guidance and the right tenants, you can leave the due diligence and spadework to the experts, and you won’t need to worry about the new laws outlined by the King.
