The Landlord's Weekly Update

Landlord-advice

Welcome to your landlord's weekly update. Giving you the latest news, legal changes, and management tips straight to your inbox. Click the button below to read the full newsletter.

Zoopla Rental Report

Zoopla released their March rental report last week and some key findings are below;

  • Average UK rents for new lets as of January 2024 were £1223pcm which is an annual growth of 7.8%. Looking specifically at the South East, Average rents were at £1325pcm which is an annual growth of 8.9% and is the 6th best performing region across the UK.
  • Average rents have now jumped up 29% since January 2020.
  • Nearly all private rented homes in the South East are now in areas with average rents higher than £1000pm compared to less than half in 2020.
  • Rental affordability for tenants now hits 34% of income.
  • On average there are over 15 enquiries for every home to rent.

*Stats above are up to January 2024

Scrapping Section 21 is Landlords Headache

A new report from Propertymark reveals growing concerns among landlords due to upcoming changes in housing legislation. A significant 72% are worried by the removal of Section 21 notices, while 69% are wary about the end of fixed-term tenancies. The Renters Reform Bill is set to transform current agreements into periodic tenancies, eliminating the 'no fault' evictions. Yet, understanding remains low, with only 18% of landlords feeling informed about the new Bill. Amidst this uncertainty, Propertymark emphasises the crucial role of professional letting agents in guiding landlords through these changes.

Important HMRC Update for Landlords on Boiler Expenses

HMRC is revising its guidance for landlords regarding boiler expenses. A recent correction letter states that a new boiler, even if it's an upgrade due to technological advancements, can now be considered an allowable expense against rental income, provided it performs the same function as the old one. This change follows concerns that previous advice in the One-to-Many campaign letters by HMRC sent in December 2023 might have misled landlords into misclassifying boiler upgrades as capital costs, which are not deductible. If you've amended your self-assessment based on the initial guidance, HMRC advises reviewing your return. For potential additional tax relief, contact HMRC directly at responseteam5@hmrc.gov.uk.

Should you risk using Openrent to let out your property?

On The Investors Corner podcast last week, Andy and Ian had a conversation about Openrent and if you should use them to rent out your property and self manage your property investment. There were positives and negatives that came from the conversation and conclusion made was that Openrent could be great but for only one type of property investor. Have a listen to the episode and see what you think.

Listen on Spotify Here

Listen on Apple Here

Do you research the market or leave it with an agent on how much your property is worth?

One of the common things we get told by Landlords is that they haven’t done their own research of the market to gain an understanding of what their property could be worth. This is bonkers. This is your investment and asset so you should have an idea for yourself on its worth so you know you are being guided correctly. Check out this blog which shows you why and how to research the market when you’re a landlord. Click Here

Key Insights from the Property Redress Scheme's Major Survey

The Property Redress Scheme has released findings from a survey of 2,700 landlords and letting agents. Key findings include:

  • A rise in self-management among landlords from 56.3% to 65%, despite regulatory challenges.
  • Only 43.3% of landlords and 52.2% of agents currently see the sector as 'fit for purpose', a sharp decline from previous years, attributed to stricter regulations and economic pressures.
  • Although most landlords (85.8%) initially believed renting provided good value, financial satisfaction has dropped to 51.7%.
  • Government support is deemed lacking, with 61.9% of landlords feeling unsupported, an increase from 43% last year.
  • Legislation remains the primary challenge for 67.5% of landlords, up significantly from last year.
  • The abolition of Section 21 is viewed negatively by 80.5% of landlords and 71.9% of agents.
  • The acceptance of pets in rental properties has decreased, with only 8.7% of landlords in favour.
  • Despite challenges, 57.1% of landlords intend to continue in the sector, a decrease from 80% last year.

These results spotlight the challenges and perspectives within the PRS underlining a call for clearer guidance and support.

Need help with your rental property? Contact me!

Struggling with property letting, investment, or management? I'm here to help. Whether you're new to the game or an experienced landlord needing a fresh perspective, reach out for support.

Many Thanks

Andy Brown

andy.b@avocadopropertyagents.co.uk

07585 913564

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