Welcome to another Newsround and our first one for June. Lets see what has been trending this week in the housing news.
The Big Landlord Sell-off begins
According to Zoopla, many landlords are quitting the sector with the threat of higher mortgages and stricter legislation.
They claim that 11% of homes currently on the market were previously rented out, buy to let, and this is the highest percentage so far this year.
Average house prices have fallen by 1.3% over the last six months with demand running above a five year average in Scotland, the North East and London, whereas southern England is not so popular. The impact of mortgage rates on house prices is likely to affect demand further if the interest rates go above 5%.
Richard Donnell, Exec Director at Zoopla says
Sellers shouldn’t get carried away by more positive data on the housing market and need to price their homes realistically if they are serious about moving home in 2023. Home buyers remain price sensitive with one eye firmly on the outlook for the economy, the cost of living and the trajectory of mortgage rates which appear likely to edge higher in the coming weeks.
Could be time to snap up a bargain if you are a landlord wanting to increase your portfolio.
Section 21 abolition will help nuisance tenants
Some are saying removing Section 21 under the new Renters Reform Bill, will only be an enabler for helping nuisance tenants. The wording within the bill has changed from behaviours ‘capable of causing’ rather than ‘likely to cause’, which a leading solicitor, Ian Narbeth claims
Lawyers may argue about the subtle change in wording, but most cases don’t get to court and by the time they do, the behaviour is serious and anti-social – not just capable of being so. Until now, landlords served section 21 notices on anti-social tenants and did not need to go to court.
The government will be helping nuisance tenants at the expense of the weak and vulnerable, which is the opposite of what it is claiming.
He fears that landlords have no guarantee of succeeding in court once getting there, and any witnesses may be unwilling to come forward in court for fear of reprisals.
We will have to see if the government listen as the bill progresses through government.
Accepting pets in the new Reform Bill needs a lot of work
Areas of concern regarding the new rule of accepting pets under the Rental Reform Bill need a lot more clarity, say a group of leading animal charities and property owners.
They say it must address issues from both the tenant’s side and the landlord’s.
- Landlords will have to be able to make a fair and reasonable decision about accepting a pet, and
- Tenants must be able to easily obtain the right pet insurance without it causing delay in taking up a tenancy or being the reason for a refusal.
Jen Berezai founder of Advocats says
We need to get portals like Rightmove engaged with the issue of pets because it’s no good having ‘yes’ or ‘no’ to them within listings – once the bill gains Royal Assent, ‘no’ (due to property decisions) or ‘pets considered’, will become the accepted options.
Also, a report out says that 60% of landlords will be forced to raise their rents in order to cover extra insurance they might need to take out to cover pet damage. Or increase the tenant’s deposit to help cover the costs of any pet damage.
Propertymark say that in 2022 85% of landlords incurred damage to their property due to pets, and that 57% were unable to recoup the cost of damage made by pets. Jeni Browne director of Mortgages for Business says
An important unintended consequence of the ill-conceived Renters (Reform) Bill is that three-quarter of landlords are going to be forced to jack-up rents for all tenants in case some of them have a pet.
Maybe it won’t be a dog’s life after all.
More affordable housing, not more regulations
A leading property expert has come up with a rather ingenious idea that might help solve the affordable housing situation. Kate Faulkner says
What if we could incentivise 50,000 investors to build two homes to hand over to the council each year? We should work with the private sector which is currently taking the strain from a lack of social homes.
She believes that the housing crisis is nothing to do with the PRS and that building one million social homes would free up homes in the private rented sector.
She also says that there is no explanation as to how any extra enforcement coming out of the Renters Reform Bill will be funded. She further adds
HMO licensing has already been tested – that’s failed and cost lots of money. In London there are 2.2 people enforcing 10,000 PRS properties and enforcement takes too long. As we’ve got so little stock, tenants can come out of a property quicker, but they’ve got nowhere to go.
She makes a fair point.
Snippet
Fraudster tenant evicted after ‘decades of deception’
Working From Home still a fact of life for many tenants
Propertymark backs carbon monoxide regulation changes
First time ever – Landlord loses the right to overturn Banning Order
More landlords resorting to quick buy operators – claim
Mayor back calls for councils ‘to have more selective licencing powers’
Scotland’s rent cap to be extended again
Renters Reform Bill – new landlord database to expose tax mishandling
Newseound will be back next week.
The UK is currently facing a housing crisis, with a shortage of affordable homes for people to buy or rent. The situation has been exacerbated by the COVID-19 pandemic, which has made it even harder for people to get on the property ladder. One potential solution to this problem is fast-build modular homes.
Fast-build modular homes are prefabricated houses that are built off-site and then assembled on the building site. They are typically made from sustainable materials, such as timber or steel, and are designed to be energy-efficient and low-maintenance. These homes can be manufactured in a factory in a matter of weeks and then assembled on-site in just a few days, making them a fast and cost-effective solution to the housing crisis.
https://networkinfodomain.com/2023/04/uk-housing-crisis-and-its-solution/