Rental market frenzy: Nottingham landlord sheds light on supply and demand imbalance

Rental market frenzy: Nottingham landlord sheds light on supply and demand imbalance

0:03 AM, 11th October 2023, About 12 months ago 11

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The mismatch between supply and demand is worse than ever with a frenzy of activity in the rental market.

New research by Rightmove reveals letting agents report an average of 25 enquiries from prospective tenants for every property on offer.

One of Nottingham’s largest landlords reveals why tenants are struggling to get housing and why landlords are not to blame.

Never know when the next charges are coming

On BBC Radio Nottingham, Mick Roberts told presenter Sarah Julian why landlords “are not raking it in.”

He said: “A lot of landlords are not actually making money, with interest rates going up and legislation.

“For example, Nottingham’s selective licensing scheme costs landlords £900. What do tenants get from that, they get nothing! The more charges a landlord gets the more they put the rent up and if it doesn’t add up then they sell.”

He added: “You just never know when the next charges are coming next.”

Undersupply from landlords selling up

Mr Roberts says a lot of the frenzy in the rental market is undersupply from landlords deciding to sell up.

“I’d like to sell a lot of my properties but my tenants can’t get any properties anywhere. I wish they could get somewhere but they can’t. I’ve had some tenants for more than 26 years and if you’ve got morals and a conscience you look after them.

“You get one bad landlord down the road, the council say right, all landlords are going to have a charge now, and then what happens then, all tenants will suffer.”

Mr Roberts told Property118 that landlords have to suffer with over regulation.

“There have been over 176 new rules and regulations since 2015 all making rents more expensive. Who is benefiting from that?”

The full interview with Mick Roberts can be heard here at 1 hour 57.


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Rod

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12:16 PM, 11th October 2023, About 12 months ago

Mick, your tenants are loyal as they clearly know a good thing when they find it.

Sorry to read in the weekend FT that Barclays have stuffed your credit history - they must think they are the Post Office, with such shoddy computer systems.

Back to your observations on supply and demand:

Steve Smith, Chairman of PRS REIT, which has the largest portfolio of single-family rental homes in the UK [5,500], made the following comments in the company's year-end report:.

"The portfolio's outstanding asset performance to date demonstrates the continuing market need for high-quality family rental homes. Supply side issues have worsened over the year, with private landlords continuing to exit the market, while demand has been further fuelled by rising interest rates and general economic uncertainty. These factors have put further obstacles in place for potential homeowners.

In its latest Housing Insight Report, published in September 2023, Propertymark, the leading professional body for estate and letting agents, commercial agents, auctioneers, valuers and inventory providers, stated that the number of new applicants registered in August 2023 per member branch was up by 32% year-on-year, and that the number of properties available to rent per member branch in August was an average of 11, unchanged from August 2022. This "remains drastically below what is needed to keep up with current demand". Propertymark expects this gap to widen as more people come to the market to look for a home with very few properties available to rent. Research by TwentyCi, which provides UK residential property data, shows that the number of UK homes available to rent has dropped to a 14-year low. The Company's experience of tenants bidding above asking prices to secure rental property reflects this mismatch of supply versus demand."

Mick Roberts

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14:02 PM, 13th October 2023, About 12 months ago

Ha ha don't know about loyal, they know I try to get repairs done quick (if they paying the rent) and they know my rents are super cheap.and I don't just put up every year like I should, so inflation don't overtake us.
Yes Barclays are the most thickest ignorant people on the planet.
Yes, when will will Govt and Councils come to us and say
Mick, we clearly getting this wrong, u all selling and remaining landlords of u r charging what u like cause u can.
What can we do for you instead of us telling u what to do?
We know the answers don't we Rod, could save em £ billions in seconds.

Monty Bodkin

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8:33 AM, 14th October 2023, About 12 months ago

https://www.bbc.co.uk/news/uk-england-nottinghamshire-67084522

A Nottingham City Council report has said the demand for urgent housing is "extremely high and increasing".

.........

Mr Redfern says Framework has been noticing a few new groups of rough sleepers, including those who have been evicted from private rented accommodation.

This is either due to not being able to afford rent, or being evicted due to landlords selling up because of selective licensing costs.

Lisa008

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9:50 AM, 14th October 2023, About 12 months ago

I was rather hoping that Nottingham would scrap its selective licensing scheme (wishful thinking)... They can build all this student accommodation everywhere... make something for non-students! It's an article 4 area so that's messed things up. If you didn't need 'planning permission' then there'd be LOADS of 3 and 4 bedroom houses that could take 3-4 people off the rush for housing list. Reduce costs for the sharers and ease the housing pressure! If you have 25 people going to a viewing then clearly... there's a massive supply issue!

Crouchender

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10:45 AM, 14th October 2023, About 12 months ago

Reply to the comment left by Lisa008 at 14/10/2023 - 09:50
Nottingham like all other Labour SL councils are using LLs as cash cows. Even their 'external audit review' report of the SL said that as Mick will know all too well.

Mick Roberts

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12:38 PM, 14th October 2023, About 12 months ago

Reply to the comment left by Monty Bodkin at 14/10/2023 - 08:33
Yes Monty,

He's a good man Andrew Redfern, he knows how Selective Licensing has took loads of houses away for his people.

Mick Roberts

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12:40 PM, 14th October 2023, About 12 months ago

Reply to the comment left by Lisa008 at 14/10/2023 - 09:50
Yes Lisa,

They've just made loads more homeless with the Selective Licensing new scheme.

Mick Roberts

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12:41 PM, 14th October 2023, About 12 months ago

Reply to the comment left by Crouchender at 14/10/2023 - 10:45
And they still press ahead Crouchender,

Still not coming to talk to us to ask
What we doing wrong Mick? We spending £ millions a year on homeless, how can we reduce this?

Monty Bodkin

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16:22 PM, 29th November 2023, About 10 months ago

Nottingham City Council declares itself 'bankrupt'

https://www.bbc.co.uk/news/uk-england-nottinghamshire-67380096

The authority cited increased demand for children's and adults' social care, rising homelessness and the impact of inflation as putting extra pressure on its finances.

Crouchender

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16:49 PM, 29th November 2023, About 10 months ago

Reply to the comment left by Monty Bodkin at 29/11/2023 - 16:22
This follows Birmingham section 114 although Birmingham has only just started city-wide selective licencing madness which will make life worse for all tenants as it has in Nottingham but councils wont listen as LLs are there only cash cow income from penalties and Licencing fees

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