Legislation uncertainty causing chaos in PRS, claims industry body

Legislation uncertainty causing chaos in PRS, claims industry body

0:01 AM, 5th December 2023, About 5 months ago

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Uncertainty in legislation is causing high rents in the private rented sector, according to a new report.

Propertymark’s Housing Insight Report, reveals 44% of letting agents have seen rents rise in October.

One agent told the report that the Renters (Reform) Bill has caused landlords to become somewhat cautious.

More carrot and less stick

Nathan Emerson, chief executive of Propertymark, said whilst there has been a slight dip, demand remains high.

He said: “In the letting sector, the number of new prospective tenants registered per member branch has decreased month on month since July 2023.

“However, demand remains high with around nine prospective tenant registrations per available property.

“This continues to have an impact on rent levels. As does the continued legislative uncertainty in each of the home nations, which clearly weighs upon landlord investment decision-making.

“For example, this month, 72% of the properties that left our agent’s management were due to the property being sold. It is time for UK legislators to consider more carrot and less stick.”

Cautious apathy

Toby Martin, ARLA Propertymark regional executive, for the West Country weighed in on the evolving landscape shaped by the Renters (Reform) Bill.

He said: “Now that the Bill is finally gathering momentum, it has been interesting to gauge landlords’ reactions to the proposals.

“The general response has been one of cautious apathy, with most landlords conceding that little will change for those committed to offering good quality, long term accommodation.

“The recent amendments recognising the student tenancy cycle have been particularly welcome.”

Uncertainty for first-time buyers

In the residential sales sector, high interest rates have caused uncertainty for first-time buyers.

Mr Emerson said: “In the residential sales sector, interest rates remain high, causing first time buyers and movers to think twice.

“This is evidenced by the number of prospective buyers registering at our member branches falling and the number of market appraisals being undertaken trending downwards.”

According to the report, there has been a 19% reduction in new properties coming to the market. The report also revealed, a 13% decrease in the number of potential homebuyers registered.

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