A fifth of properties for sale are former rental homes
For those of us who have spent many years in the lettings business this may be no surprise. However, this hard evidence does bring it very much into focus that landlords are quitting the sector at a greater rate than usual.
Respected research firm TwentyEA latest report reveals that 18% of properties listed for sale last month (approximately 28,000) had also been listed for rent within the previous three years which is a shocking 100% higher than the previous year.
The reasons for landlords leaving the sector are a mix of uncertainty about changes the government have in store, steep interest rate rises (especially for those landlords coming ending fixed rate mortgage deals) and a general increase in all costs.
For those landlords who remain in the rental market there is some good news. Due to lower stock levels, the supply and demand balance is tipping their way and therefore rents continue to slowly rise as demand continues to increase.
BIG NEWS IN THE KINGS SPEECH!
For landlords who were naturally very concerned about the Renters Reform Bill there was a brief sigh of relief when the last government announced the ‘snap’ election which meant that all ministers were released back to their constituencies and therefore no further bills would become acts under that parliament. Thankfully, the Renters Reform Bill was not rushed through before parliament dissolved.
Today in the King’s speech there was a clear announcement that the Renters Reform Bill is back; “Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions” .
How quickly this bill will go through parliament is currently unknown. However, it very likely to be much quicker than the last governments efforts, the Renters Reform Bill was first announced formally in Her Majesty the Queens speech on 19th December 2019.
Inevitably, the new government will want to stamp their own mark on this bill, hence it is likely to take some time to go through. However, the basic principles of still being able to obtain possession on certain grounds (sale of property, landlord needing to move back in, arrears, anti-social / illegal behaviour) must still apply in order to avoid landlords leaving the rental market in droves.
It has been voiced that Awaab’s Law (currently only applicable to social housing) will be introduced to the private sector. Boiled down, this will place greater responsibility on landlords to combat damp and mould in rented properties.
We will provide more information as soon as it is announced, however please don’t hesitate to contact our Lettings department for any advice on how best to prepare and ‘future-proof’ your rental property investment.
Second but still happy!
Last week we were delighted to attend the Great Yarmouth BID awards for best presented office/shop front in Great Yarmouth. We didn't win! But we were delighted to come second to the marvellous Specsavers! You can't win them all but having the second best shop front in Great Yarmouth can't be a bad thing!
Performer of the Month for June
Congratulations to Claire Fielding at our Broadland, Stalham office!
Claire is our Performer of the Month for June, nominated by David McMaster, our Associate Director in Lettings. Claire has passed a number of good client referrals to the Lettings team and she has successfully helped them to let a notable coastal property this month, having carried out a number of viewings on the property on their behalf.
Well done Claire!
Promotion at Aldreds Great Yarmouth!
Congratulations to Richard Harpley on two counts!
Firstly, he is the performer for the month for May with a massive 18 referrals to our mortgage partners saving clients money in the process.
Secondly, he been promoted to senior negotiator!
In a year that has been a real rollercoaster for ‘Rick’ this is a great achievement!
Keep up the fantastic work!!
We are hiring!!
Looking for a career in estate agency? Aldreds Great Yarmouth office are looking for Business Administration apprentice to join our team.
You will train in all aspects of estate agency whilst over seeing the administration and smooth running of the office.
This position involves working every Saturday 9am till 3pm and a driving licence or planning to do your test soon is a big advantage.
Follow the link below to apply!
https://www.findapprenticeship.service.gov.uk/.../1000255938
Aldreds on awards shortlist!
We are delighted to have been shortlisted by Great Yarmouth BID for best presented office/shop front in Great Yarmouth. Winner to be announced 11th July. Watch this space!
Landlords – lucky escape for the time being
It has just been announced that the Renters Reform Bill will not pass into law during this Parliament.
All Landlords can now breathe a sigh of relief that this ill thought out, rushed piece of legislation has been effectively binned.
If all the polls are to be believed we will have a new Government in July. Labour do have plans for the private rented sector, however it will take some considerable time for a new Government to implement any such legislation. No doubt, a re-branded bill is likely to have some similar key points, however the most important thing is to have the court system streamlined and able to cope with the volume of potential cases that the proposed changes will inevitably create.
The Renters Rights Bill, though fundamentally flawed, did have a couple of positive points in terms of landlords rights for possession on certain grounds. However, without the necessary reform to the court system this would simply disadvantage all landlords. We can only hope that the next government, if they do implement new legislation, prepare the framework correctly and ‘put the horse before the cart’.
All the best to Katharine Tomlin
It's a sad day at Aldreds Gorleston as Katharine moves on to pastures new! 'Kat' started with Aldreds in 2012 and has worked in every office apart from Stalham over the years. We wish her all the best in her new career in the NHS!
Fantastic News on Inflation!
Inflation has dropped to 2.3% it has been announced today. Down from 3.2% the month before
This is getting close to the Bank of England’s target of 2%.
Although we do expect base rate cuts in 2024 analysts feel this unlikely to happen in June.
However, two and five year fixed mortgage rates are still more generous than they were a year ago as lenders predict rate base rate cuts through 2024/25.
