May 2022 - Lettings Market Update

Since the Tenant Fee Ban that came into effect in June 2019, we have noted that May has seen less activity than would have been traditionally expected in terms of lettings when many tenants held off moving to avoid having to pay fees.

It seemed that what set in, in those months in 2019 has continued, and the strange thing is now, demand is still as high as ever whereas stock is now much harder to come by. Many people are now taking stock with global events and the cost-of-living crisis perhaps making people think twice about moving. Tenants are preferring to renew their contracts so as to fix their rent for a period of time – some have even taken two-year contracts, which offers some certainty and securing for both parties involved.

Legislation

The Queens Speech took place on 10 May, and opened up the governments’ intention to press on with the Renters Reform Bill. This will likely put a focus on mediation in times of conflict, creating mechanisms for what it calls –
“A more effective legal framework for landlords to invest in.”

The headline for some time been the idea scrapping of the current Section 21 notice for regaining possession, the replacement for this has still not been outlined but it is expected that there will still be ways for landlords to get possession of their properties back, it will just be through different methods.

Separate to that there are also provisions for a Register for Home Standards, which may be a hub like environment for property data to be store for all properties across the country. Similar hubs are already in place for social housing. The idea of Lifetime Deposits however has been scrapped. These were supposed to pass from property to property whenever a tenant moved.

There will be lots of detail to consider when further information is presented, but the industry will be well represented by organisations like ARLA Propertymark when policy makers finalise matters. It won’t be immediate and there will be some timeframe for changes and we’ll be sure to keep you posted when we know more.

Something else which came out last week and separate to the Reform Bill, is that Carbon Monoxide alarms will be required in ALL rented properties with a fixed combustion appliance, such as gas boiler. Previously it was only required in properties with a solid burning fuel in place.

Please watch our latest video update for more information -
We cover the increase of higher rents and general lack of stock in sales and lettings market locally, the cost of living crisis and how this affects tenants and landlords, legislation updates including Carbon Monoxide alarms, and the Renters Reform Bill. Plus we share some exciting developments at Christopher Shaw HQ in Bournemouth.