With the new year upon us, landlords across the UK have one question in their minds. What will 2023 have in store for the lettings sector?
Those who can identify trends in tenant preferences, are aware of impending legislation, and stay up to date with the upcoming changes will be able to grow and thrive.
By understanding what is, and might be, coming, landlords will be able to prepare themselves for what the new year has to offer them and their tenants.
Here, London Stadium Associate Partners Griffin Group have broke down what they know so far.
Rental reform is finally coming…probably
Housing Secretary Michael Gove confirmed the radical proposals for rental reform will come into action in 2023. Gove recently stated: “We will bring forward legislation that will give them [tenants] better protection. It will come in the next calendar year, so 2023.”
Since the proposals were announced, concerns about power shifting too much to tenants have been raised by landlords. A recent survey found many have considered leaving the sector. Of the 63% of landlords who contemplated leaving the private rented sector, nearly three-quarters owed this to the impending legislation and regulation changes.
The Renters’ Reform Bill includes plans to ban Section 21 ‘no-fault evictions’, extend the Decent Homes Standard, end arbitrary rent review clauses, make blanket bans on renting to families with children or who have benefits illegal, and make having a pet throughout a tenancy easier.
The idea of rental reform has been in the offing for some years now and has been held up and delayed for various reasons. There are no absolute guarantees that it will be introduced in 2023, although it’s likely that it will finally reach Parliament, where it is likely to face strong opposition from some quarters and a range of possible amendments.
Energy efficient homes to grow in popularity
The minimum Energy Performance Certificate (EPC) requirements for rental properties could rise to a C-grade in 2025 for new tenancies and existing tenancies in 2028.
Meeting these standards could be challenging for landlords considering the higher mortgage rates and rising costs that come with being a landlord at present. However, reaching these standards will not only keep landlords compliant, but will also help them meet the preferences of tenants.
As energy bills continue to rise, tenants are becoming aware of the benefits of having an energy-efficient home. For this reason, there is an increasing level of popularity and a higher premium for these homes.
With this in mind, Griffin expect tenants to become more willing to pay more money for an energy-efficient home and the demand for these to further increase in 2023 and beyond.
Tenants renting for longer
The supply and demand imbalance in the rental market is ongoing, making competition fierce among tenants.
A study of 1,300 landlords found that the most common length of tenancy is over two years, yet 18% of landlords reveal their average length of tenancy has risen over the past 12 months.
This is likely to result in more tenants choosing to extend their existing tenancies for longer as a way to evade entering a new agreement with higher rent.
The lettings sector is constantly changing, but landlords who make it their mission to keep up with legislation and market trends will be able to weather the storm.
When you are in the process of buying, selling or letting your property, it’s important to find an estate agent who can be trusted. Our London Stadium Associate Partners Griffin, combine the passion and knowledge of traditional high street estate agents with a modern approach to ensure that theirr customers’ needs come first.
When you use their estate agency in Essex, we will work to ensure that the whole process goes as quickly and smoothly as possible. They will provide a customer-focused service based on your needs and make sure that you are happy throughout.
For more information on how London Stadium Associate Partners Griffin Group can help you find your happy place, visit: https://www.griffingroup.co.uk/