Our first Newsround for May lots of housing news this week and most importantly we start with news on the Renters’ Reform Bill.
Renters Reform Bill to be published next week
Yesterday the Government announced that its long awaited Renters’ Reform Bill will be introduced into Parliament next week.
Housing Secretary, Michael Gove says
We’re introducing new legislation, it will be out next week and it will change the way in which the relationship between landlords and tenants work, providing tenants with new protection which should ensure that they’re better protected from arbitrary rent increases.
The Bill is likely to include:-
- Abolition of non-fault evictions (Section 21)
- More rights for landlords to evict anti-social tenants
- A Landlords register
- Decent Homes Standard
This bill was first mentioned back in 2019 and has faced criticism from landlords and activist groups alike, it will be very interesting to see what they have finally decided to do. Although note that it may change considerably during its passage through Parliament and indeed if a general election intervenes, it may not make the statute book at all.
Switching to holiday lets is not straightforward
An industry figure predicts that more landlords will switch to holiday letting and short-term lets rather than BTL. Their figures show that 2,426 holiday let companies were set up last year compared to 592 in 2016.
Holiday lets can be more lucrative – for example, the average monthly rent in the southwest was £800 in 2022, but let under an Airbnb under a short let, it could, on average, command £155 per night, making the same rental income in just over 5 days. However, holidays lets require very labour intensive management with a ‘hands on’ approach. Regular tenant turnover, supply of all consumables, more issues with noise and placating the neighbours, paying for gas, electric and water to name just a few, whilst a BTL is relatively ‘hands off’ once the right tenant is found. So be warned if you are considering the switch.
Jonathan Rolande from the National Association of Property Buyers says
There is no doubt that holiday letting has its place for both landlord and holidaymaker. They also allow a greater number of people to visit an area, boosting the local economy. But landlords who are considering switching should ensure they do their homework, the extra income could be very hard-earned.
Build to Rent slows down in London
Figures show that build-to-rent has slowed down in London compared to other areas. Growth was at 19% in the year 2021-2022 compared to only 9% for Q1 2023.
This is due to many factors such as fewer available sites, higher construction costs, decrease in funding and addressing issues of building safety which are all hampering growth in this field. This means that they will not hit their target of 66,000 homes per year which is what is needed to house current and future Londoners.
Stephanie Pollitt, programme director for housing at BusinessLDN says
The pace of construction between other parts of the country and the capital continues to widen for BTR developments, which have a vital role to play in tackling the capital’s housing crisis. The need to accelerate the delivery of this accessible and high-quality accommodation is critical.
BTR is only one piece of the housing jigsaw puzzle, but its continued growth alongside other tenures must be supported to ensure that London is able to attract and retain the talent that businesses need. Tackling the capital’s housing crisis through a mix of solutions – including Build To Rent – is vital to secure the long-term global competitiveness of the city.
Many challenges all round, it seems.
Women only renters
It seems we have our first ever tower block for women renters only. This has been given the green light by planners in west London. It comes with quite strict criteria, namely, the 102 flats will be available to women who face inequality, abuse and disadvantages in the housing market. Men can only live there if they are a partner to the woman tenant or they are an adult child of the female tenant.
Fully embracing today’s diversity, transgender women will be allowed to rent, but cross-dressing, transgender men and those with a history of violence will not. Furthermore, drilling down into more detail, kitchen worktops will be slightly lower and careful attention to ventilation will be taken into consideration for the comfort of menopausal women. It seems they have thought of everything!
Whilst this is great news for women, it has been accused of discriminating against men on social media.
The landlords are Women’s Pioneer Housing (WPH) who plan to build more of these complexes in Shepherd’s Bush.
Rents hit a record high
Latest figures show that rents continue to climb with an average of 1.3% in April, making rents £1,1199 per month. Outside of London they have reached £1,006 per calendar month.
The South East and Scotland both saw the sharpest rise in monthly increases rising by 2.1% with average rents now as high as £1,277 per month and £868pm, respectively. London rents continue to increase, with average rents now as high as £2,003pm, which is 1.2% above last month.
Andy Halstead of HomeLet says
Rental prices continue to rise across the board, with every region showcasing a monthly and annual rise. The situation we’re hearing about daily is one where tenants struggle to find available rental properties. Offers for rental properties are often rising above the asking price, with many landlords receiving multiple offers for their properties.
The quantity of rental properties on the market is showing no signs of a sudden rise, so prices are likely to continue to rise, with prospective tenants left with a battle on their hands to secure a suitable property.
Snippets
Criminal record for landlord who dumped waste after building work
Clarity over changes of tenancies to ‘converted contracts’
Starmer vows to get even tougher on landlords AND free-up market for renters
Rishi Sunak’s proposal to relaunch Help to Buy will not fix housing crisis
Jail for landlord after tenant’s horrific death in fire ordeal
OPINION: ‘Rent-to-Rent craze adding to UK’s renting crisis’
Scrapping housebuilding targets could cost tenants £200 a year by 2023 – Labour
Newsround will be back next week.