Market update by Claire Woodrow, Lettings Manager
Buyers and tenants returning to the workplace following the pandemic are already finding their employers’ attitudes to working practices have become more accommodating. A good percentage of those were previously commuting into the capital, now have the option to work from home, at least part of the week. It’s for this reason that buyers and tenants are already widening the geographic area when they look for a new place to live and we have noticed Beaconsfield has been exceptionally busy with people looking to rent or buy, moving out from London. Stock levels are the lowest that we can recall in many years and our applicant lists are growing rapidly, up over 70% on last year!
- According to the latest figures released from Homelet, at +6.2%, rents are growing at the highest rates ever outside London.
- Meanwhile, in the capital, they are falling at the highest rate ever rate seen (-4.7%).
- Homelet’s data revealed that the UK’s average rent is now £984 – a 3% increase on last year.
- When London is excluded, the UK’s average rent is £840, showing an increase of 6.2% on last year.
A recent Property Reporter notification commented on how rents outside the capital are growing at record levels, mainly due to the demand massively out-weighing supply, and this has prompting the UK’s largest rent protection provider, Homelet, to issue a stark warning to landlords:
- Ten of the twelve regions monitored by Homelet showed a year on year increase in rental values between February 2020 and February 2021, with the East Midlands seeing the most significant growth at 8.1%. As the UK economic looks uncertain for many, landlords are urged to consider
At Ashington Page, we offer a fabulous rent protection policy to our managed & rent collect landlords, and we are confident that our policy is the best on the market (having undertaken stringent research). You can find out all about it HERE.
Stamp Duty Holiday Extended
It was not too surprising that Rishi Sunak announced during the Spring Budget that the Stamp Duty Land Tax would be extended beyond March 31st, with a reportedly 100,000 property transactions still to complete. Rental stock levels remain low and with this news, whilst there may be some re-letting of properties, we are not witnessing a huge number of new instructions coming to the market in this area.
Demand remains high, so much so that we are in a position to let some properties without them going on the live websites.
If you have a property to rent please contact me, Claire Woodrow on firstname.lastname@example.org or give me a call on 01494 685518.
You can read our Budget Highlights here.
Breathing Space – Landlords be notified!
New legislation called the Debt Respite Scheme will be introduced in England and Wales from 4th May. This falls into two categories; Standard Breathing Space and, Mental Health Breathing Space. In both cases qualified debt will include rent arrears. During the time allocated, no action can be taken on the individual(s) to recover or pursue the debt owed, no default judgment can be applied, and no notice to take possession of a property on the grounds of rent arrears can be served. You can read all about this legislation here.
The Ministry for Housing, Communities and Local Government (MHCLG) is carrying out a review of the Housing Health and Safety Rating System (HHSRS). The HHSRS is a tool used to assess risk to health and safety arising from deficiencies within a dwelling. It is the first step Local Authorities take before decided which, if any, powers under Part 1 of the Housing Act 2004 Act should be used. It is also a component of the Decent Homes Standard.
Having been in place for 15 years the MHCLG want to review the HHSRS because building technology and knowledge about risks and hazards in buildings have advanced. As the review will impact on a variety of stakeholders, the project team want to engage with those who will be affected, including housing regulators and surveyors, landlords, other property professionals and residents.
COVID-19 Section 21
We are still awaiting further news on the current situation of notice periods for Landlords serving Section 21s. The Government’s policy of six months is due to end on March 31st. Please keep monitoring our blogs and website for updates as they come in.
Electrical Installation Condition Report (EICR)
The 1st April deadline is looming ever closer. Landlords please contact us if you are still requiring assistance; we would be delighted to help even if your property is not let through Ashington Page. These are mandatory requirements and fines will be issued for non-compliance. You can download our information booklet and pricing here.