29th
Jun 2022
The government’s proposals to scrap Section 21 notices and drastically change grounds for possession is seen as another typical government attack on BTL landlords, despite the sector’s major contribution in helping ease the housing crisis.
When and not if Section 21 is abolished it will be so important for reforms to be made to the Section 8 process are made, otherwise there will be dangerous numbers of BTL landlords leaving the sector causing even further rental ‘hikes’ and discouraging new investors from entering the market.
A spokesperson for an agent body, said: “Pressures on the sector are not easing, especially in England given that the recent Renters’ Reform White Paper has now been published.
“What’s important is that landlords understand that this paper is a set of proposals and that there is still a process of debate and discussion before any legislation is brought in. The UK government have also committed to ensuring landlords have access to their properties via a revised section 8 notice.”
The agent body says that although there was an increase in available ‘lets’ since February however there is a higher demand from prospective tenants.
The trade body’s recent research shows members reporting they had 10 properties per branch available to let in May which was the same in April.
In May there was an average of 113 new tenant applications per branch in May which was higher since February with an average of 78 registering with each branch, showing a continual rise in demand and rent increases.
Members of the agent body also reported in May that average void periods was less than two weeks, which is more than one week lower than the long running average of three weeks.
Around 79 per cent of members saw month-on-month rent increasing in May.
Emerson added: “Given the ever-widening gap between supply of homes and demand, it is crucial that government’s across all nations prioritise reforms that incentivise new and existing investment in the sector.”
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