Another week draws to a close with the prospect of a Brexit deal hanging in the balance and looking more and more like failure. So how will Brexit affect landlords?
Brexit troubles?
For many landlords, there may be no comeback, although there will be added complexities with doing right to rent checks.
However, Housing Hand have made some dire predictions
Fewer international tenants, an increase in tenants defaulting on rent and a likely oversupply of rental accommodation shifting the national picture to a tenants’ market rather than a landlords’ one
It also looks like there will be
Problems for new overseas landlords
LandlordZone has an article on the immigration rules, which mean overseas property investors and landlords will find it very difficult to access the UK’s buy-to-let market next year.
I’m not sure I see that as a problem though – do we want any more overseas landlords? It sounds more like a benefit to me.
A new How to Rent Guide is published
All landlords and agents should note that we have a new edition of the Right to Rent Guide – which needs to be given to all new tenants. And to all replacement tenancies if the guide is different from the version given previously (which it now will be).
Remember that you can only provide an electronic copy if tenants have agreed to this in writing (the tenancy agreement is a good place for this) and even if tenants do agree, it’s no good just giving a link to the download page, you have to send the guide as an attachment. See more about the rules here.
You will find the new guide here. Nearly Legal has an archive of the older versions.
However, bearing in mind the climate emergency, the new guide has been criticised for having no information about how energy efficiency in rented properties can be improved other than by just mentioning EPCs. Ross Nichols of Just Move In saying
The How to Rent Guide performs an important legal function but it’s also an opportunity for the government to start changing the narrative on energy efficiency within the Private Rented Sector, making sure that the issue stays on the table and isn’t pushed aside,” he says.
“The government has an open consultation on raising energy performance standards for the domestic PRS sector – including reducing energy bills, improvements and carbon emissions – so it’s disappointing that the new Guide doesn’t reference sustainability at all.
Just another example of how the government talks the talk but does not (yet) walk the walk on sustainability.
Landlords warned on gas boilers
Continuing on a sustainability theme, Landlord Today has a story on gas boilers and how they could be banned from sale in around 13 years.
The Committee on Climate Change – an independent body advising the government – says gas boilers should not be sold beyond 2033 and all electricity production should be zero carbon by 2035 if the UK is to reach the target of net zero emissions by 2050.
Kevin Wellman, chief executive of the Chartered Institute of Plumbing and Heating Engineering, says that despite some key dates being over a decade away it is clear that “natural gas-fired boilers are on borrowed time.”
Landlords may therefore want to consider gas boilers which can also be used for hydrogen (there are some around), electric heating or heat pumps. Heat pumps are still expensive but the running costs are very low so may be cost-effective where landlords rent a property with bills included.
Rents due to drop in London
Who wants to live in London now that you can work from home? A lot of people it seems are saying ‘not me’ and moving to more congenial larger properties in the country.
As a result of this, London rents are due to drop maybe by some 10% in 2021 which will be good news for those renters who are essential workers still forced to live there.
It may also help drive up standards if London properties have to do more to attract tenants. Let’s hope so.
Snippets
- Are you prepared for new agent regulation?
- What landlords need to know about ventilation
- Some tenants using evictions ban as ‘green light’ to stop paying rent
- Lock maker calls for fire door inspections
- Buyers and renters support the introduction of Flood Protection Certificates
- Is this Britain’s worst rogue landlord?
Newsround will be back next week.