The Covid-19 pandemic created an unprecedented shift to working from home when many offices were forced to shut. This significantly impacted the rental market as tenants reassessed what they needed from their home property to support their new working style.
What changes did tenants want when working from home?
Working from home had an impact on how people looked at their homes, whether owned or rented, in three key areas:
• Space to work
• Outdoor space to enjoy
• Location
There was a need for working space for more than one family member for many. Extra space was needed by many to enable them to work from home. Workers desired an extra room to accommodate a home office, but even the ability to set up a specific work area or desk in an existing room made a big difference.
In addition to extra indoor space, people craved outdoor space. A garden, or even a balcony, became important to enable people to get outdoors when they weren’t allowed to leave home. Even after restrictions were lifted, being able to grab a break and some fresh air while spending a long day at a home desk is essential for physical and mental health.
Finally, where people were able to live also changed. They were no longer tied to cities or commuter suburbs to be able to get to the office, saving on travel time and expenses.
They could, and did, choose to live further afield as their homes became their workspaces, especially more flexible renters. This saw many people leaving city and town centres to find cheaper accommodation in the country or market towns where they could afford the extra indoor and outdoor space they desired.
What’s happening after lockdown?
Hopefully, we’ve seen the end of lockdown, and there’s an expectation that things will return to how they were pre-pandemic, including tenants’ expectations. But according to YouGov, 60% of British workers would still prefer to work remotely sometimes, so the need for space and desire to live in more remote locations could be here to stay.
However, there does seem to be some shift back to cities as offices begin to reopen. Last month, the BBC reported that some workers’ gradual return to the office and a winding down of covid restrictions led to increased demand in the urban rental market. In January, demand was up 76% compared to an average January in each of the previous four years.
This is encouraging news for landlords with properties in cities and larger towns. However, they still need to consider that working from home is likely to continue for many tenants and will still influence their choice of property.
Tenants’ rising lifestyle expectations.
We recently spoke about continued growth in the build to rent sector, and part of this boom is the focus on delivering facilities that support modern lifestyles. Popular properties have dedicated working areas, offer access to good broadband and amenities and maintain a high standard of living that accommodates the changing expectations of renters who consciously decide that renting is better for them than homeowning.
A complete return to the pre-pandemic world is unlikely, and landlords who can adapt and keep pace with the changing needs of tenants will continue to see a healthy demand for their properties.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go can become your inventory partner, ensuring that your property remains desirable to today’s tenants, contact No Letting Go today.
With so many people feeling the pinch and substantial rises in the cost of living predicted to continue into 2022, we’re all looking for ways to save money where we can. One area tenants could look to do this is in their monthly rent charge. If you’re looking to move home, where are the cheapest areas to rent?
Average monthly rent in the UK by region
According to a Statista survey of average rents in December 2021, the average UK monthly rent was £1,060. Starting with the cheapest average rent, the costs across the country were:
- The Northeast (£580)
- Northern Ireland (£724)
- Wales (£736)
- Yorkshire and Humberside (£737)
- Scotland (£738)
- East Midlands (£742)
- West Midlands (£786)
- Northwest (£844)
- Southwest (£983)
- East of England (£1,031)
- Southeast (£1,123)
- Greater London (£1,752)
While the Northeast was the cheapest area for rent, there are vast regional differences in average rental prices. Although the London area has seen some challenging times, with many tenants choosing to leave the capital during lockdown, the average rental cost is over £1,000 per month, more than the top six cheapest places to rent.
What is happening to rental prices?
As we start to see the worst of the Covid-19 pandemic in the UK, 2022 still looks like it could be another year of uncertainty as we continue to adjust to the post-pandemic era and manage the financial impact.
According to early indications from the ONS, in the UK, private rental prices rose by 2% in the 12 months to January 2022, increasing from 1.8% in the 12 months to December 2021. The East Midlands saw the most significant increase in rental prices of 3.6%, and London the lowest of 0.1%. In the Northeast, the area with the lowest average rent per month, there was an annual rental price growth of 2.2%.
What does this mean for the rental market?
RICS reported a supply versus demand imbalance in the rental market in January as tenant demand increased. Still, the number of new listings fell, leading to over half of respondents to their survey anticipating rent increases in the next three months.
With the expectation that remote or hybrid working will continue, tenants will continue to have greater flexibility to decide where they live and work so that they can make the most of regional price variations. But as rents are expected to increase further, it will mean that tenants and landlords will keep a close eye on the market and stay flexible as even the cheapest areas see prices rise.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could make your property more attractive to rent, streamline your costs and reduce your workload by becoming your inventory partner, then contact No Letting Go today.
The drive to improve the energy efficiency of properties in the UK looks likely to impact landlords in 2025, with the proposed EPC regulations that could require landlords to make potentially significant and expensive changes to their properties.
What are the current energy regulations?
All domestic and commercial properties for rent need to have an Energy Performance Certificate (EPC) confirming the property’s energy efficiency. Ratings range from “A” to the most efficient” to “G”.
Current regulations state that any property being let must have an EPC rating of “E” or above, with certificates valid for ten years. After ten years, landlords only need to renew their certificates when they relet their property to a new tenant.
What are the new EPC regulations proposing?
As part of the government’s objective to increase energy efficiency and achieve net-zero carbon targets, it’s driving for greater energy efficiency in homes. All newly rented properties will need an EPC of at least Band C from 31st December 2025.
Existing tenancies will have until 31st December 2028 to achieve this new practical, affordable, and cost-effective target. Fines for not having a valid EPC will also increase from £5000 to £30,000.
This new legislation is expected to come into effect some time in 2022.
How will this affect landlords?
With approximately two-thirds of homes in the private rental sector having an energy rating of D or below, it means around 3.2 million privately rented properties in England and Wales will require work to meet government targets.
When asked in a recent study, landlords with properties below a “C” rating believe it will cost an average of £10,400 per property to deliver the energy efficacy required. Still, if this action isn’t taken, landlords could find themselves with a property they cannot rent.
What can landlords do to prepare for the proposed change?
It’s difficult to see how any landlords, especially those with tenants already in place, will be able to quickly make the changes to their properties needed to meet the new C band efficiency rating. The work is likely to take time; you also need to work around your tenants to get any disruptive work done on the property and find the funding for such a level of investment.
All landlords need to start understanding the scale of the proposed changes by looking at their properties’ current EPC certificate, the recommendations made at the time, and understanding where the current areas of energy inefficiencies exist.
You can take many actions to improve a property’s energy efficiency and allow yourself time to plan the most effective and appropriate measures for your property that could help you save money.
With the potential for more regulations requiring further investment from landlords, now more than ever, it’s essential to protect your investment by looking after your property and ensuring that it’s well maintained. Regular property inspections and building good relations with your tenants keep your property an attractive proposition on the rental market, spread the cost of improving energy efficiency, and ensure you get a return on your investments.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could help keep you regulation-compliant, streamline your costs and reduce your workload by becoming your inventory partner, then contact No Letting Go today.
Our perception of homeownership is changing. For the vast majority, buying a property used to seem like a natural step, but it’s now predicted that by 2025 over 50% of adults under the age of 40 will be in private rented accommodation. In the UK, demand from renters is 43% higher than the last five-year average.
So what’s driving this change, is it set to continue, and what will be the impact on landlords?
The advantages of renting
Perhaps one of the biggest reasons more people are choosing to rent is because the rental market, once subject to rumours of unscrupulous landlords and high rents, has evolved and is perceived as a more progressive market that accommodates people’s needs. Renting is seen as advantageous because:
• You don’t have to worry about maintenance costs, unlike homeowners.
• It’s easier and quicker to rent than to buy a home.
• Financially it’s less of a burden; a smaller deposit is required, monthly rent can be cheaper than a mortgage repayment, there is no home insurance, solicitors’ fees or stamp duty.
• Tenancy terms can vary to suit needs, so planning for a future move is easier.
• More controls in the rental market mean tenants enjoy more legal protection.
• No danger of the negative equity trap
The barriers to getting on the property ladder
Perhaps the most significant impact on the rental market has been people’s ability to buy a home. Many find themselves unable to get a foot on the property ladder, particularly affecting the younger generation. It has been suggested that up to a third of millennials may never own their own home, while half will rent into their forties. This isn’t just linked to the difficulty of saving up a deposit. High house prices mean more expensive mortgage repayments; coupled with tighter lending requirements, it is harder to get a mortgage.
Unstable personal finances
The rise in house prices is compounded by wages stagnating while the cost of living is increasing. Even if finances were there to buy a home, many are put off by the perception that the housing market can be unstable and may trap you in a property that no longer suits your needs.
Whether driven by financial considerations or a general change in societal attitudes, people are now making different lifestyle choices, including more social living. Searches for UK-based co-living rental opportunities increasing by 4000% in the last four years, and the build to rent sector continues to grow, offering an exciting option for tenants.
Offering amenities such as gyms and concierge services, build to rent properties offer a different lifestyle in sought-after locations with the flexibility of long and short term tenancy periods. This seems to be speaking loudly to many people who feel that their homes should provide the flexibility to meet the demands of life today.
For landlords and agents who have well-managed properties to offer and who listen to their tenants’ needs and the market, the prospects are good. Renting is seen as an exciting alternative to homeownership, with the potential to offer something more aligned to how people are living and working today.
No Letting Go
Contact No Letting Go today if you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, streamlining your costs and reducing your workload.
The home buying and rental markets have faired well over the past couple of years, despite the challenges presented by the pandemic and possibly because of government help. But as we head into 2022, should we expect to see a continued buoyancy in the market?
While no one is predicting a sudden or dramatic decline in the housing market, it looks as though there is some uncertainty over how much will change.
What’s affecting the property market?
We’ve seen a resilient housing market over the past couple of years. The stamp duty holiday and the desire for people to move out of cities and find open space during lockdown or an extra room for a home office to accommodate new working from home lifestyles have all helped to drive demand in the purchase and rental sectors.
However, the stamp duty holiday has ended, and we see life returning more to the “status quo ante” than predicted, so how will people respond?
We also see an increased cost of living, higher interest rates and general economic uncertainty, all of which will affect the confidence of tenants and homeowners, but to what extent? The housing markets looks uncertain; however, some key themes are prevailing, which we’ll try to draw our predictions from.
Nine key predictions for 2022
Early predictions for 2022 already suggest the following:
• Economic uncertainty persuades homeowners to stay put, reducing the number of sales instructions compared to a more buoyant market in 2021.
• A reduced supply of houses to the market will see house prices increase. To what extent is debatable, but prices should level out through the year.
• A lack of properties in the rental market will also continue the ongoing increases in rental prices.
• However, rises in house prices could encourage more homeowners to sell their homes, ameliorating the supply of stock in the market.
• Increasing rental legislation and rising house prices may lead to more landlords selling their rental properties, putting further pressure on the rental market. Energy-efficient, new-build homes continue to be in demand, but supply will struggle to meet demand as shortages in materials and labour continue to have an impact.
• Homes in city centres will increase in popularity again as people head back to work in the cities to avoid commuting. However, there may still be a continued drawn to the suburbs as employees make hybrid working arrangements permanent.
• Build to rent will continue to grow and diversify to include the individual house market, rather than just flats. Big names, including John Lewis, are entering the market and attracting investors enticed by this booming market.
• The delayed Renters Reform Bill is expected to take effect this year and will encourage more people to consider the rental market as their next home because of the greater protection enjoyed by tenants.
A positive outlook for the future
An uncertain economic environment may still have a cooling effect on the housing market. Still, we expect cautious optimism after people see the worst of the pandemic recede behind them. This will probably be enough to keep the market moving and give cause for a more positive outlook on the year ahead.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could streamline your cost and reduce your workload as your inventory partner, then contact No Letting Go today.
According to the NHS, around 60 people die of accidental carbon monoxide (CO) poisoning every year. In a significant step to reduce accidental carbon monoxide poisoning in rented accommodation, the government has announced changes to the law regarding carbon monoxide alarms that all landlords and agents must respond to.
Landlord’s current responsibilities regarding CO alarms
There is already clear legal guidance in place regarding the responsibility of landlords to have the appropriate CO monitoring in place, with current requirements stating:
• At least one smoke alarm is installed on every property storey used as living accommodation.
• A carbon monoxide alarm is installed in any room used as living accommodation where solid fuel is burned. A solid fuel-burning appliance could be a coal fire or wood-burning stove.
Avoiding a large fine
In addition, to fitting CO alarms where appropriate, alarms must be checked regularly to ensure they are working at the beginning of a tenancy and audible throughout the property. Landlords should consider proving that they have checked the alarms at the appropriate times.
Failing to comply with regulations can lead to a fine of up to £5000 for landlords, so it’s important that you are aware of what you need to know about Smoke and Carbon Monoxide alarm verification.
New rule changes
The new legislation announced in November 2021 takes existing rules further, making it a legal requirement to:
- Fit carbon monoxide alarms in properties with fixed appliances, such as gas boilers and fires
- Fit carbon monoxide alarms when new appliances such as gas boilers or fires are installed in any home
- Repair or replace smoke and carbon monoxide alarms for properties in the social and private rented sectors once the landlord or their agents are informed of a fault.
How can landlords and letting agents comply with the regulations
The requirements of landlords to provide adequate protection from the risk of carbon monoxide poisoning by installing sufficient alarms means regular checks should be built into your property management routine to ensure they aren’t missed.
No Letting Go’s Smoke and CO verification will ensure you stay compliant by working with you to put in place regular checks of your CO alarms to make sure that not only are they working but that they are in the right location. This can be done at the start of a new tenancy, and during regular interim checks, so you don’t have to rely on the tenant to ensure they are in working order.
No Letting Go, giving you peace of mind
Reports generated through our checks include specific smoke and carbon monoxide safety sections that guarantee you meet regulations and any more changes brought in, giving you peace of mind that your tenants are safe from the danger of carbon monoxide.
Our local support or national network at No Letting Go can be your inventory partner for your property, whether it’s a single flat or a housing portfolio. If you wish to find out more about how we can help streamline your cost and reduce your workload, contact No Letting Go today.
During the winter months, dampness and mildew become a problem for landlords and agents to resolve with the tenants, but by completing regular property inventories, you could stop it from becoming a serious issue.
What causes dampness & mildew?
When there is too much moisture in the air, and the air is also cold, it releases its moisture onto surfaces. This moisture leads to conditions that give rise to mould and mildew.
Increased moisture in a property can be caused by activities that release water, such as cooking, showering, washing and drying clothes, which is why mould can often be found in kitchens and bathrooms. Damp can also be caused by external factors such as roofing or foundation problems, leaking pipes and leaks through the brickwork.
Excessive moisture, combined with poor ventilation, especially in the winter months when tenants are less likely to open windows to encourage airflow, will quickly cause problems.
Damp needs to be dealt with
For tenants, damp can lead to serious health problems such as respiratory infections and, potentially, asthma, particularly concerning those who already have underlying health issues.
Landlords and letting agents don’t only need to be concerned for tenants’ wellbeing but also for the impact it has on their properties. If damp is caused by structural issues, not dealing with it quickly will lead to costly repairs later.
Are landlords at risk of being sued over damp?
Landlords are required to resolve structural issues that could lead to mould. Legal provisions allow tenants to apply to the courts if they believe their rented accommodation is “unfit for human habitation”. Ventilation and freedom from damp are listed as hazards that would put a property in this category, so landlords are at risk of legal action if they don’t deal with the issue. However, if the damp is caused by the actions of the tenant, the landlord will not be held responsible.
How inventories manage mould
To prevent a dispute about damp and its causes, landlords and letting agents can take proactive steps to become aware of and monitor mould issues through regular inventories.
Check-in and check-out reports will demonstrate whether mould existed at the beginning and end of a tenancy. Still, interim reporting will provide regular monitoring, particularly important if tenants are in place for long periods. This is important for ensuring the long-term maintenance of a property because any structural causes won’t be left undiscovered.
At No Letting Go, we are aware of the challenge that damp can cause for landlords, agents and tenants, offering to check for damp as a standard part of our inventory services. Our website also offers advice for landlords on their responsibility regarding mould, and we are always available to help ensure that you stay on top of damp issues.
No Letting Go
If you want to discuss how our local support or national network at No Letting Go could become your inventory partner, streamline your cost and reduce your workload, then contact No Letting Go today.
At No Letting Go, our mission is simple: to help our clients create accurate, fully compliant property reporting, wherever you are and whenever you need it.
We understand that technology has an essential role to play in achieving our mission, which is why we partner with Teclet to enhance our services offering to estate agents and, ultimately, to landlords.
What is Teclet?
Teclet is a cloud-based portal that automates the letting process from end to end, from pre to post tenancy. This means services and transactions such as deposits and pre-payment transactions, referencing support, contact generation, compliance requirements, and tenancy renewals can all be done online and from a mobile device, such as a tablet.
Teclet provides complete flexibility for agents to manage the day-to-day running of their business, which means there are many benefits to utilising such a tool.
The benefits of Teclet
The ability of Teclet to bring so many aspects of property and lettings management into one single portal means that it is a tool that makes a real difference to how letting agents run their business:
• Dramatically decreasing the amount of administration time by reducing admin input by up to 80%
• Allowing services to continue 24/7 so tenants can continue to upload or retrieve information even when a branch is closed for the day
• Improving compliance by ensuring that all required checks are completed within specified deadlines and are never missed
• Reducing errors by ensuring all required actions are completed
• Providing a seamless and efficient service and a better experience for all stakeholders
Delivering exceptional service
Our focus at No Letting Go is to provide the tools to empower agents to deliver the best service possible and build their reputations so that both landlords and tenants benefit. The partners we work with share the values that support this focus and our overall mission.
Like us, Teclet utilises technical innovation to drive efficiency that ultimately reduces overheads and costs for agents, taking staff away from administrative tasks and allowing them to focus on activities that generate revenue.
This allows businesses to focus on activities that build for the future and keep their competitive edge. In addition, the platform offers agents numerous additional solutions via “best in class” plug-in partners. It provides the adaptability to be a long-term solution that grows with the business and meets changing demands.
No Letting Go
No Letting Go provides fast, reliable inventory management for the agency market on a national basis. All reports are stored on our portal, providing a full audit trail, and our network of specialists carries professional indemnity, public liability insurance and are members of the PRS. Our partnership with Teclet lets us continue to innovate to deliver cutting-edge tools to these services.
If you want to discuss how our local support or national network at No Letting Go could become your inventory partner, streamline your cost and reduce your workload, then contact No Letting Go today.
This year’s State of the UK Rental Market Report paints a picture of optimism for the sector, tempered by some significant concerns.
What are the report headlines?
With 550 agents and 1,700 tenants participating in the survey, this annual report provides an extensive view of the state of the lettings market. Assessing key aspects of the rental sector, we can get a good feel for the pulse of the industry and, looking at some of the report headlines, note some trends emerging:
• Rent arrears: Over the past year, those reporting an increase in rent arrears has halved from 64% to 32%. This is a positive development, but it is still the case that 48% are reporting arrears have stayed at the same level over the past year. Despite this, 81% of tenants said the pandemic had not affected their ability to pay rent in the past year.
• Tenants remaining in the rental sector: Only 46% of tenants expected to own their property within five years. This means the majority are expecting to continue renting for a few years to come. The report highlights that only 16% had moved or considered moving because of Covid-19, and tenancies are looking stable.
• Landlords leaving the sector: 83% of lettings professionals report landlords leaving the sector, more than you would expect to see in a normal year. This means agents must ensure that they are allocating the necessary resources and taking the right approach to continue attracting new landlords, especially if they want to see growth in the market.
• Lack of rental stock: Letting agents of all sizes are reporting their businesses have struggled due to a lack of stock of the last year. 54% of smaller agents (up to 200 properties) reported this as an issue, whilst 70% of agents with 500-999 properties raised this as a concern.
Looking ahead
While optimism among agents is down from the previous report, it remains relatively strong, with 67% saying they felt very or somewhat optimistic about the future of the lettings industry. However, with 32% of agents stating a lack of stock as their main concern, winning more landlords and finding new ways of generating revenue are among the top priorities in the coming year.
In addition, ongoing concerns around legislation and compliance will continue to shape the sector, especially with the Renters Reform Bill on the horizon.
Adapting to the changing circumstances of the past 18 months will have been a priority for all agents, landlords and tenants, but looking to the future, there is a need for agents to assess how they remain competitive by tackling the challenges ahead.
Greater innovation
We have seen the industry embrace innovation and technology, with only 1% of survey respondents saying they do not use any form of technology in their business. The sector will need to continue evolving to attract, engage and retain all existing and potential stakeholders.
No Letting Go
If you want to discuss how our local support or national network at No Letting Go could become your inventory partner, streamline your cost and reduce your workload, then contact No Letting Go today.
With a full range of property inventory services and nationwide coverage provided by a network of over 80 offices, No Letting Go is the one-stop-shop for property inventory services. We take the stress and strain out of property management for letting agents looking to meet the high expectations of their corporate clients.
What is expected from corporate letting agents?
We understand that managing corporate lettings comes with its trials and tribulations, but there is one constant factor, and that is the high standard of letting accommodation that corporate clients expect. This puts pressure on corporate letting agents to go that extra mile in a very competitive market.
The condition of a property needs to make the tenant feel as though they are the only one who has ever lived there. This means spotting and making repairs quickly and having the tools to make a thorough assessment while still facilitating a swift turnaround when necessary.
The challenge for corporate letting agents is to allocate the time and resources required to ensure that corporate lettings are consistently maintained to the highest high standards. Partnership with an efficient inventory management specialist can make this work much more straightforward.
How we support corporate letting agents
No Letting Go’s range of property services creates and maintains an agreed set of standards without any drain on letting agents’ resources, allowing them to direct their attention towards business development. We provide this service through our extensive range of inventory services:
• Pre-tenancy processes
• Check-ins
• Mid-tenancy checks
• End of tenancy inspections
Standards and safety
Before the tenant moves in, the standard is set and then maintained throughout the tenancy. Any issues are spotted early, and both tenants and landlords will feel assured that they are being dealt with. In addition to these checks, we produce smoke and CO reports and Legionella risk assessments, ensuring tenant safety and landlord compliance with the law. Our services also extend to estate and block management services, conducting visits at agreed intervals to inspect and test fire systems, estate facilities, cleanliness and maintenance.
Standards and safety
Before the tenant moves in, the standard is set and then maintained throughout the tenancy. Any issues are spotted early, and both tenants and landlords will feel assured that they are being dealt with. In addition to these checks, we produce smoke and CO reports and Legionella risk assessments, ensuring tenant safety and landlord compliance with the law. Our services also extend to estate and block management services, conducting visits at agreed intervals to inspect and test fire systems, estate facilities, cleanliness and maintenance.
Attracting tenants
In addition to maintaining your property and setting the required standards, we provide 360 virtual photography, creating immersive imagery which offers a wide range of applications but is particularly useful for providing potential clients and tenants with a virtual, but detailed, tour of properties, especially for those coming from overseas.
The benefits of experience
Our extensive experience in managing inventory services lets us know what to look out for and work proactively, delivering efficient inventory management from start to finish.
Our digital inventory platform ensures easy access to reports and a quick turnaround with our DigiSign technology so that tenants can sign reports electronically, with minimal contact needed. Not only does it save them time, but it also reassures clients who may have concerns about social distancing.
No Letting Go
Maintaining your property, keeping tenants happy and assuring the high level of service demanded by corporate clients require investment in time and resources; we can help you deliver and maximise your ROI.
If you want to discuss how our local support or national network at No Letting Go could become your inventory partner, streamline your cost and reduce your workload, then contact No Letting Go today.