Welcome to our Christmas Newsletter 2024

Landlord Broadband welcomes you to the latest edition of our quarterly newsletter. We hope that you enjoy it. If the latest industry news, customer market updates, and new content interests you, then read on. Want more? You can check out our previous newsletter here.

Latest News

NRLA Landlords Conference 2024

Did you see us at the National conference 2024? The team had a brilliant day in Birmingham meeting many landlords from across England..

Scottish Lettings Day 2024

Had an amazing time at the Scottish Lettings Day 2024 at Murrayfield Stadium! 🏟️ It was fantastic to connect with so many great people and be part of such an inspiring event. 🏡✨

Industry News

Legal

New research suggests a third of landlords are looking to sell off some or all of their rental properties, many blaming recent legislation changes. While there is a strong growth of 42% in the overall landlord population experts suggest this might not last. Over the last few years landlords have been under increasingly growing pressure as they raise rents on their tenants but still lack profits. This year 31.4% of landlords claimed that within the next two years they are planning to reduce the number of properties they let or leave the business, the main reason being ‘recent legislative changes’. The renters rights bill is being implemented next year which adds a lot more rules and regulations for landlords. The average value of loans taken out by landlords came to £364,876 five years ago rising to just under half a million this year suggesting landlords are under increasing financial pressure too.

Finance

The Treasurer (Rachel Reeves) has announced that she intends to increase social housing rents in England annually using the consumer price index as a measure of inflation and adding an additional 1%. This plan is for the next 5 years but may continue. This change is due to demand from councils over the summer. However, a high level of backlash is expected as tenants may struggle and put more pressure on governments to hand out benefits.

It has also recently been announced that from April 2025 second homes and long-term empty properties in some parts of Wales will have to pay additional Council Tax. Caerphilly Council is bringing this premium tax in to bring empty homes back into use and therefore helping increase the supply of affordable housing.

Technology

The PCS (Property Care Association) is encouraging both private landlords and social housing providers.to use their pioneering moisture diagnostic system. This is meant to help landlords identify and deal with damp and mould. The new renters rights bill extends the Awaab’s Law which expects social landlords to address health hazards in rented properties therefore this technology could help landlords achieve this effectively. The system uses environmental sensors and can pinpoint causes of moisture issues and suggest solutions. This can also help reduce complaints about damp and moisture for landlords and can save landlords time and money.

Customer Markets

Landlords

Energy Performance Certificates (EPCs) currently remain valid for a period of 10 years, with updates required whenever a rental property is occupied by a new tenant. These certificates play a key role in assessing and promoting energy efficiency in buildings. However, the government is now exploring stricter regulations aimed at improving overall energy performance and sustainability within the rental market.

As part of these proposed changes, landlords would be required to obtain a new EPC at the conclusion of a tenancy agreement, even if the existing tenant decides to renew or extend their lease. This initiative is intended to ensure that properties consistently meet updated energy efficiency standards, encourage regular improvements, and provide tenants with accurate, up-to-date information about their home’s energy performance.

Build to Rent

Nest the UK pension scheme and finance giants Legal & General and PGGM are investing a billion pounds into Build to Rent schemes. It will begin with a joint £350m investment into Build to Rent building on the joint venture between Legal & General and PGGM. The joint venture called the Access Development Partnership (ADP) and started in 2016 and aimed to increase the development of high-quality Build to Rent across the UK. Legal & General has given more than £3 billion into the Build to Rent sector this has resulted in more than 10,000 rental home. The government has been pushing for UK pension funds to boost investment in UK assets to aid economic growth. Emma Reynolds, minister for pensions said “I am delighted that Nest is harnessing the financial power of pensions to deliver more of the homes this government has pledged to build, which also serves as an excellent investment opportunity for future pensioners in their scheme.”

PBSA

Where’s next for student housing? A report conducted by QX Global Group and JLL aims to highlight new opportunities and threats for the student housing sector. Key issues addressed in the report included affordability challenges as costs increase, shifting demographics as a growth of students form lower-income households and university partnerships which require relying on financially constricted universities. The report reveals a concerningly widening gap between supply and demand. 50% of core demand will be met by 2030. The predicted increase in lower-income households require an increase in affordable housing which may mean this demographic may lose out. This is even more concerning in areas like London where there is already a large lack of housing compared to demand. To solve these issues a solution needs to be formed between all stakeholders such as universities and property developers.

Access the full report here!

Serviced Accommodation

A new initiative by Airbnb is encouraging landlords to allow their tenants to sublet their properties. Airbnb and Greystar a global landlord are working together to allow tenants in Greystars London tower blocks to rent out their apartments. Under Airbnb’s initiative tenants in nearly 1,500 flats can sign a contract with their landlord, establishing hosting rules. These rules include setting a maximum number of nights the property can be let out and must agree to share 10%-25% of the revenue with Greystar. This scheme has also been successfully launched in the USA and is hoping to expand.

Another initiative by Airbnb focused on the London borough Waltham Forest which is encouraging more owners to host on Airbnb occasionally. This should generate more income for families in the area and strengthen the local economy as more visitors can stay in the area.

Social Housing

Affordable housing has reached its lowest on record since 2016-17 having dropped from 71,771 to 43,439 . With a large 88% decrease in London with the number of social houses dropping from 3,156 to 26,386 over 2023. The number of housing association starts in London has also rapidly declined with research showing a 92% decline causing the mayor of London to dedicate an emergency £2.2bn for housebuilding. The same research also showed that 2023/24 had the largest drop in housing association starts since 1978. However, the number of affordable homes completed for 2023-24 only fell by 2% compared to 2022-2023 and was the second-highest total since 2014-15.