Landlord Lettings Report

Stay informed with the latest insights and trends in the rental market

The recent general election has set the stage for transformative reforms in the private rental sector, aimed at creating a fairer and more sustainable market. These changes, while ambitious, present a host of opportunities for proactive landlords.

Key Reforms and Impacts:

• Enhanced Tenant Protections: Labour's commitment to abolishing Section 21 "no-fault" evictions seeks to foster a more stable and secure rental market. This change can lead to longer tenancy durations and reduced turnover costs for landlords.
• Energy Efficiency Standards: By 2030, rental properties will need to meet higher energy efficiency standards. This initiative not only benefits the environment but can also increase property values and attract eco-conscious tenants. Landlords can start planning improvements now to spread out the costs and take advantage of any available grants or incentives.
• Leasehold Reforms: Labour's plans to replace the outdated leasehold system with commonhold for new builds will simplify block management and potentially reduce long-term costs. Engaging with these reforms early can position landlords as leaders in modern, fair block management.
• Fair Rental Practices: Measures to end rental bidding wars and large upfront payments aim to create a more transparent and accessible market. These practices can help landlords attract a wider pool of reliable tenants.

Proactive Steps for Landlords:

• Plan for Property Improvements: Start assessing properties for energy efficiency upgrades. Utilise available resources and grants to mitigate costs. Early action can ensure compliance and enhance property appeal.
• Understand Legal Changes: Stay informed about the specific details of the new regulations. Engaging with reputable lettings agents or legal advisors can provide clarity and ensure all requirements are met.
• Enhance Tenant Relations: Embrace the new tenant protections by fostering good communication and addressing tenant concerns promptly. Happy tenants are more likely to stay longer and take better care of the property.
• Stay Competitive: By aligning with the new standards and promoting eco-friendly and fair rental practices, landlords can differentiate themselves in the market, attracting quality tenants and potentially commanding higher rents.

By adapting to these changes proactively, landlords can not only comply with new regulations but also benefit from increased property value, tenant satisfaction, and market competitiveness.

Further to the above, notable highlights from June include:

• The average rent achieved in June 2024 was up 4.95% to £1612 compared to May 2024, and 13.8% up compared to June 2023.
• A 1.5% month-on-month decrease in new instructions across the marketplace Prospect covers (May vs. June 2024). • June saw 8.5 applicants registered for every property we listed.

Essentially, the rents we are achieving are strong, there was a small decrease in the number of properties listed To Let month on month, and demand levels continue to be healthy.

To discuss the insights presented within this report, or for personalised advice, please contact Michael Gallagher on 0118 955 9701 or email mgallagher@prospect.co.uk