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  • Leicestershire TBC - Wednesday 23rd September 2020 12:00 - 15:00
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Nicol Nightingale

Nicol Nightingale
ARLA Propertymark Regional Rep

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March 2020

Written before the Coronavirus pandemic

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Regional round-up

Last year saw a wealth of legislative changes hit the lettings industry, including the infamous Tenant Fees Act, the introduction of mandatory Client Money Protection (CMP) (finally!) and the Homes (Fitness for Human Habitation) Act 2018 – that confusingly came in to force on 20 March 2019 – all of which put additional strain on an already challenging marketplace.

So, 2020 will be nice and quiet right? Not a chance if January is a sign of things to come! On 10 January 2020, we saw the extension of the Fifth Money Laundering Directive to include all letting agents who manage properties which, individually, yield an income of £10,000 per month, or equivalent or more. Just a few days later, the Government announced The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020. This means landlords must ensure every fixed electrical installation is inspected and tested at least every five years by a qualified person for all new tenancies in England from 1 July 2020, or from 1 April 2021 for existing tenancies.

And let’s not forget that from April 2020 the Minimum Energy Efficiency Standards (MEES) regulations apply to ALL existing tenancies and, by April, the phasing out of mortgage interest relief for landlords will be complete, preventing landlords from deducting mortgage interest from taxable profits on properties owned by individuals.

It is no surprise then that we continue to see individual landlords exiting the market in droves, feeling overwhelmed by the sheer volume of legislation and the squeezing of their profits to levels that just don’t justify the potential risks and level of work involved.

However, this does provide an opportunity to the Build to Rent industry and across the country – the entire Build to Rent sector has grown by 15 per cent since Q4 2018. In real terms, this amounts to over 20,000 additional Build to Rent homes in the past year. We were involved with the letting of one such scheme in Leicester, The Wullcomb, which provided 297 high-quality studios, and one-bedroom and two-bedroom apartments, with access to beautiful communal spaces, akin to luxury hotel lounges and roof terraces.

Whilst this inevitably improves the standard of rental accommodation and takes away some of the pressure points that tenants often face (poor response times, unwillingness of landlords to pay for repairs, etc.) this all comes at a price, with rents for a one bedroom apartment starting at £750 per calendar month (PCM) and two bedroom apartments starting at £900 PCM, compared to an average of £650-£675 PCM for a traditional two-bedroom terraced house in the city.

 

ExCeL London

25th ARLA PROPERTYMARK CONFERENCE

LONDON

The ARLA Propertymark Conference and Exhibition celebrates 25 years with a very special line up. It is the largest event in the private rented sector and a firm fixture for suppliers wishing to network with the cream of the industry. More info...

Date: 2 September 2020
Venue: ExCeL, E16 1XL
Members: £200.00 +VAT
Non-members: £250.00 +VAT

Register!