Legislative uncertainty impacts tenant demand

Legislative uncertainty impacts tenant demand

0:01 AM, 7th May 2024, About 2 weeks ago 5

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Ongoing legislative uncertainty and high rents are causing demand to decrease, according to one industry body.

Propertymark’s Housing Insight report reveals tenant demand decreased in March this year compared to last year.

However, the demand and supply imbalance still remains, presenting challenges for landlords and tenants.

Legislative uncertainty

According to Propertymark’s Housing Insight report, tenant demand decreased from 89 in February 2024 to 82 in March 2024.

The number of new tenancies signed also decreased by 6%.

The industry body said the decrease suggested demand was slowing down, possibly due to legislative uncertainty.

However, despite being slightly weakened, demand continued to outstrip supply, with around nine new applicants registered for each available property in March 2024.

Demand continues to outpace supply

Nathan Emerson, chief executive officer of Propertymark, said: “In the residential lettings sector, tenant demand decreased, and stock levels increased marginally.

“However, demand continues to outpace supply overall, with nine new applicants registered for each available property.

“Legislative change including the Renters (Reform) Bill and Housing (Scotland) Bill, continues to dominate the wider discourse. We continue to work with our members to lobby for change that supports investment, minimises unintended outcomes and enables a well-functioning housing system.”

Uncertainty in sales market

The report also reveals the average UK house price increased by £1,216 to £280,660 in February 2024.

The data reveals the number of market appraisals undertaken in March fell by 7% and there was a slight decrease in the number of new properties coming onto the market.

David Votta, founder and owner of Votta Sales & Lettings Limited told the report that there is still a large amount of uncertainty within the sales market.

He said: “There are still many buyers unsure of whether or not to buy now or wait, news headline grabbers can confuse the consumer and skew what’s happening in the market.

“Ultimately, if you need to move, then move, but the importance of a regulated agent in today’s property world has never been so important. Standards are still incredibly low and the consumer must make the correct choice in agent.”


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Comments

Mick Roberts

19:20 PM, 7th May 2024, About 2 weeks ago

U telling me, I've just wrote this elsewhere which applies to this too.

Aah no, we han't got to do all new tenancies have we. I've been ignoring this Renters Reform bill, as they constantly changing it.

But if all need new tenancies, this could be the final straw for me. All my tenants that can't get anywhere, they gonna have to sign up with Letting Agent to make sure all my paperwork 2024 compliant. I can't keep up with it any more. We were all fine.
They gonna have to pay the increased cost of Letting Agent fee from their too cheap rent now.
And many of mine not paid deposit years ago, or a £300 Rent up front, when now we'd need £1800ish. I can't keep subsidising em forever and Govt are now making it more expensive for many tenants. Another example of Govt interference when nothing was going wrong.

Reluctant Landlord

8:33 AM, 8th May 2024, About 2 weeks ago

Reply to the comment left by Mick Roberts at 07/05/2024 - 19:20
...and to top it all Mick the letting agents themselves have come out and said the RRB is going to be a nightmare for them to digest and guide LL's on. Costs are going to increase and guess what - all passed onto tenants.

I see a lot more letting agents getting it wrong for landlords (knowingly or unknowingly) and LL's getting screwed over in the process. Its ok saying the Ombudsman is there for disputes but it shouldn't be that complicated in the first place.

The RRB is nothing but a ticking time bomb and no one has really thought it through. The collateral damage is going to be significant.

Freda Blogs

9:57 AM, 8th May 2024, About 2 weeks ago

Reply to the comment left by Reluctant Landlord at 08/05/2024 - 08:33
"Costs are going to increase and guess what - all passed onto tenants."

Depends what costs you have in mind RL - most likely passed on (and having to be absorbed by) Landlords. The Tenant Fees Act puts paid to passing costs to tenants, and LLs can only charge rent up to the max the local market will take, so doubtless some extra costs will be down to LLs, thus increasing risk and diminishing returns even further, hence contributing to the rapid destruction of the PRS. As you say, the collateral damage is going to be significant.

Mick Roberts

10:13 AM, 8th May 2024, About 2 weeks ago

Reply to the comment left by Reluctant Landlord at 08/05/2024 - 08:33
Yes, we all know extra costs for tenants, but they still press ahead.

Mick Roberts

10:15 AM, 8th May 2024, About 2 weeks ago

Reply to the comment left by Freda Blogs at 08/05/2024 - 09:57
And then when the numbers don't add up, we pack up. Leaving the remaining landlords to charge what they like to the smaller number of those tenants that can afford it.

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