Below is a brief update on the progress of the Renters Rights Bill and a short market update for landlords at the end.
Members of the House of Lords are now progressing an in-depth review of the Renters’ Rights Bill during the committee stage.
There is still uncertainty surrounding the broader impact the proposed legislation could have on the private rental market. Concerns have been raised about increased demands on landlords and the possibility of unforeseen consequences for tenants.
The Bill aims to eliminate both fixed-term assured tenancies and assured shorthold tenancies. It also introduces new responsibilities for landlords and related parties concerning rented properties, as well as temporary and supported housing.
The committee stage involves a detailed, line-by-line analysis of the bill. Starting at the beginning, members examine each clause in sequence, debating amendments and suggesting the addition of new clauses.
So far, four committee days have been planned:
- Tuesday, 22 April
- Thursday, 24 April
- Monday, 28 April
- Tuesday, 6 May (*dates may be adjusted)
During the first day of discussions, members have proposed amendments covering topics such as:
- a two-month notice requirement
- fixed-term tenancy arrangements for students
- voluntary agreements for tenancy extensions.
If you would like to see the 12 key components being discussed to read our recent blog. This will affect Brighton and Hove lettings in the same way as the rest of the UK. As the only Brighton letting agent offering a personal service to our clients we can help guide you through this tricky period, we always like to be one step ahead.
Polling by Barclays found that recent homeowners spent an extra £13,530 on costs like stamp duty and legal fees—up from £9,337 five years ago. Only 16% of renters believe buying a home is achievable in the next five years. For 38%, the deposit cost is the biggest barrier. Housing expenses now take up 28% of UK incomes, and 36% for renters. About 73% say these costs rose over the past year—by £126/month on average. Millennials are hardest hit, paying £191 more monthly. Utility bills saw the biggest rise for 47% of people, followed by council tax (30%).Due to rising costs, household finance confidence dropped to 70% in March (from 75% in Feb), and housing market confidence dipped to 28%. To cope, 40% are cutting spending to meet housing costs. What this suggests is that it is getting harder to save up for first time buyers and the costs associated with buying are increasing.
Additionally recent research by Hamptons using BoE data shows that the average monthly rent is now only £29 more than mortgages with a 10% deposit. Two years ago when interest rates first started rising rents were actually £48 cheaper.
All in all the picture this paints is one where buying is becoming more expensive, it is harder to save for a deposit and paying rent is now not much different to paying a mortgage. Our tenancy renewals have been extremely high over the last 6 months (86%) which adds weight to a reducing ability or interest in buying from tenants, and at the same time means supply to the open market remains low. All in all we do not see either the sales or Brighton lettings market changing much in the near future.
If you are looking for a personal letting service for property in Brighton, Hove, Kemptown, Worthing and surrounding areas or if you just have some general queries please feel free to contact us on +44 (0)1273 646426 or lettings@bishopsurelets.co.uk
Hope you have a great week.