The latest news from the lettings industry

More agents are realising that they need the lettings side of the business for regular cash flow. It sees you through uncertain times and can help you grow your business, but that benefit competes with increased compliance and the cost of employing extra people. The solution? Use an outsourced property management provider - or, as I like to call it, a property management partner.

“Everything changes but change itself. Everything flows and nothing remains the same...You cannot step twice into the same river, for other waters and yet others go flowing ever on." This quote, attributed to Heraclitus the Greek philosopher, could be used to describe the challenges facing the property agent sector over the last decade or so, but certainly will be the mantra for the years to come.

Robert Bolwell, Senior Partner at Dutton Gregory, joined Goodlord's CEO, William Reeve, in a CPD certified webinar, Lettings legislation in 2022: Looking ahead, to discuss the latest developments in the Regulation of Property Agents, the Renters' Reform Bill, and the Minimum Energy Efficiency Standards.

CONTENTS

1. Regulation of Property Agents

• How is the Regulation of Property Agents progressing?
• Will there be any form of financial support or training for people for the required qualifications?
• Is there a cut-off point where exams have to be retaken?
• Would you recommend going straight to level three or starting with levels one and two?
• Will admin and maintenance colleagues or residential agents and block managers be required to do this?
• What will be the qualifying body for these qualifications?

2. Renters' Reform Bill

• What are your thoughts on Renters Reform Bill and abolishing Section 21?
• Would the abolition of Section 21 be retrospective to existing tenancies or just on rolling forward with new tenancies?
• Do you see Section 21 being abolished or maybe just amended?
  
• Could there be a specific housing court given the backlog?
  
• How do you think lifetime deposits are going to work?
  
• Are we also going to see the concept of lifetime tenancies?
  
• Is it time that deposits were scrapped if Section eight was strengthened to compensate?
  
• Will all these reforms make it possible that landlords will just move their portfolio to students and HMOs?
  
• Is the impact of lifetime deposits negative since it doesn't give the tenants any incentives to look after the place?
• Could you imagine a tenant registry, where tenants who've left a property having incurred arrears or damage are listed?
  

3. Minimum Energy Efficiency Standards

• Jumping to EPCs and the band C requirements - what will happen if properties can't achieve this?
  
• What happens if landlords won't comply or won't complete their own EIRC on a property?
  

Void periods dropped across England during November as demand for rental properties continued apace. According to the latest Goodlord Rental Index, some regions saw voids decrease by as much as 30%. During the month, the average cost of rent was also down, further fuelling tenant demand to snap up new properties ahead of Christmas. 

The Omicron variant has led the government to update its guidance on safety measures to reduce the risk of transmission. It has confirmed that the housing market can remain open at this stage. All planned moves and viewings can continue and tradespeople can continue to work in other people's homes, unless self-isolation restricts access to a property. Everyone involved in the process of letting out a property, from letting agents and landlords to prospective tenants, is advised to keep up good hygiene practices, with hand washing and sanitising.

A guest blog by Adrian Gill, Non-Exec Board Member at Reapit.

The oft-cited variation of writer Daniel Defoe’s famous proverb that "nothing is certain except death and taxes" should perhaps have a revision: that nothing is certain except increases to house prices and rents. Now, price growth certainly isn’t a bad thing in itself, but without at least or greater than equal wage growth to offset the difference, affordability becomes an issue that affects everyone and has wider implication for the economy as a whole.

We're seeing more and more agents renewing tenancies on fixed-term contracts. Why? Government statistics show that private renters stay in one place for 4.3 years on average, and letting agents can help their landlords capitalise on the extra security and regular income fixed-term contracts can provide for this extended period.

Following a consultation on the government’s proposals to extend regulations on domestic smoke and carbon monoxide alarms in both social and private rented accommodation, the government has now confirmed its plans amend the Smoke and Carbon Monoxide Alarm (England) Regulations 2015. The new regulations will make smoke alarms mandatory in all social rented homes, carbon monoxide alarms will need to be fitted in all rented properties with gas boilers or fires and in all rooms with a fixed combustion device - plus all landlords will be required to fix faulty alarms once informed of any issue.

In the lettings industry, we all took to video like a duck to water when the pandemic hit, with virtual viewings allowing us to continue to help people move and video content becoming an easy substitute for face-to-face meetings. As we head out of the pandemic, will these two innovations stick with us?

Although there are fewer Covid-related deadlines on the horizon for 2022, there's still plenty going on in lettings legislation. Right to rent checks will return to normal, and landlords and agents alike will need to start digitising their systems for Making Tax Digital. Plus, you'll need to keep tabs on the evolving energy crisis and plans to increase minimum energy efficiency standards - and prepare for the Renters' Reform Bill white paper, expected to land in early 2022.