With the summer months coming to an end, and parliament coming back from summer recess, here is everything letting agents need to know this September.
September signals potential changes in the lettings industry. A Labour government is back after 14 years, and new selective licensing schemes are rolling out. Agents must stay updated, as Labour’s policies could significantly impact the sector.
What to look out for in September 2024:
- Housing (Scotland) Bill continues
- Introduction of selective licensing schemes
- Parliament in and out of session
And don't forget, you can download newsletter templates for your landlords to inform them of big changes ahead.
A recap of the past three months:
Housing (Scotland) Bill continues
The Housing (Scotland) Bill, introduced on 26 March 2024, continues to progress through the Scottish Parliament this month.
This Bill addresses a range of property topics such as rent control, evictions, pets in lets, and letting agent registration.
Since its introduction, this bill has had mixed responses from property professionals. Propertymark recently called the Housing Bill “unworkable in its current form”, and there have been significant concerns from professionals specifically regarding rent controls.
Currently, it is in Stage 1 - General Principles, where the Local Government, Housing and Planning Committee will examine the Bill and gather views. This September, Scotland’s Housing Minister, Paul McLennan MSP, will provide evidence for this Bill.
The outcome of this stage, set to conclude on 29 November, will determine whether the Bill advances or is rejected. Letting agents should monitor these developments closely, as they could significantly impact Scottish rental practices.
Introduction of selective licensing schemes
September also marks the introduction of new selective licensing schemes.
From 2 September, Lambeth and Brighton and Hove are implementing these schemes, with fees of £923 and £690 per property, respectively.
Non-compliance risks fines, making it essential for letting agents to stay updated on licensing requirements in their areas.
Other areas, such as Wandsworth and Salford, will host consultations regarding additional selective licenses.
However, this doesn’t cover all the potential licenses introduced this month. Agents must check every relevant local authority website to determine if a property requires any additional licenses.
Customers of Goodlord can use our integration with Kamma to minimise the time spent researching all properties.
Checking local authority websites is crucial, and tools like Goodlord’s integration with Kamma can help streamline this process.
Find out what letting agents need to know about selective licenses with our info sheet
Parliament in and out of session
Parliament resumes on 1 September, bringing with it the potential for significant legislative updates that could affect the lettings industry.
It has already been confirmed that the initial discussions on the Great British Energy Bill will take place on 5 September.
However, Parliament will briefly recess again on 13 September for party conferences and will resume on 6 October.
The key dates for some political parties are:
- Liberal Democrats Party: 14-17 September
- Labour Party: 22-25 September
- Conservative Party: 29 September - 2 October
During each conference, each political party will gather politicians, party members and affiliated groups. The party conference may determine a new leader for a political party, and outline any key agendas and issues relating to UK topics.
August 2024 - lettings recap
1. Base Rate Decision is made
The Bank of England describes base rates as the “single most important interest rate in the UK”. This rate dictates the interest rates for mortgages, loans and savings accounts.
The base rate is determined by the Bank of England’s Monetary Policy Committee (MPC) and influences how banks charge people on how much they can charge to borrow or pay for savings.
On 1 August, the MPC met to determine the latest base rate for the UK. They have voted to cut the rate to 5%, this is the first drop since March 2020.
Since August 2023, the base rates have remained unchanged at 5.25%.
This cut may lead to lower mortgage repayment deals, creating some relief for landlords and letting agents.
2. Energy price cap review
Ofgem, the energy regulator for the UK, review energy price caps every three months. This is to determine the maximum price energy companies can charge for energy units as standard.
Currently, there is a UK gas and energy cap which will run from 1 July to 30 September, charging 5.48p per kilowatt hour (kWh) and 22.36p kWh respectively.
Energy price caps are reviewed every three months, with the next taking place this month. The new price cap will be confirmed on the 27 August 2024.
This next cap will be integral following Chancellor Rachel Reeves’ decision to scrap winter fuel payments, affecting pensioners who don’t receive benefits.
3. Parliament in recess
The UK parliament will be in recess during the month of August. Despite having a general election at the beginning of July, parliament activities will be postponed from 31 July until 2 September.
Once parliament resumes in September, there should be further progression on bills such as the Renters’ Rights Bill. We can also expect the first Labour Budget announcement at the end of October.
Stay in the know and get the latest legislation all in one place with our newsletter.
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July 2024 - lettings recap
1. The General Election is coming
Since the announcement of a snap general election made at the end of May, we’ve all been waiting for voting day on 4 July.
From 7am to 10pm on Thursday 4 July, polling stations will open to decide who will become the next leader of the UK government.
Voters do not need to bring their polling card to vote, but they will need a form of photo identification, otherwise, they will be turned away.
The results will be released the following day on 5 July.
There is no set time on when we’ll get the final results. However, during the 2019 general election, the majority was announced at 7am the following day.
If you’re still undecided on which party to vote for on 4 July, Goodlord has put together guides on what each political party promises for the general election.
2. Energy Price Caps introduced
Ofgem announced a cap on gas and electricity bills from 1 July. This cap will run until 30 September 2024.
The caps will limit the maximum price of the units of gas and electricity rather than the total bill.
Despite energy prices being at their lowest levels since February 2022, they are still an average of £400 higher than pre-pandemic.
For a dual-fuel household paying direct debit, average energy bills in England, Wales and Scotland will become approximately £1,568 a year.
The cap will be reduced by 7%, or £122 a year, in comparison to the last price cap.
However, your energy bills could be higher or lower, depending on how much energy you use. The price cap is the maximum amount suppliers can charge for gas and electricity.
3. The Kings Speech
Following the General Election, parliament has been called to meet on Tuesday 9 July, where new MPs will be sworn in.
On Wednesday 17 July, King Charles will host a speech in the House of Lords and start the State Opening of Parliament.
The King's Speech will mark the start of the parliamentary year and is written by the newly appointed political party.
During the speech, we will be told about any proposed laws and announcements the government plans to focus on in the upcoming months. The House of Commons will also meet on this day to begin debating the contents of the King’s Speech.
Download a letting agent's guide to the Kings Speech here
June 2024 - lettings recap
1. End of Multiple Dwellings Relief
Originally introduced in 2011, Multiple Dwellings Relief (MDR) was created to encourage investments in residential property and boost the housing supply within the private rental sector.
MDR meant that if someone was purchasing two or more properties in a transaction, “Stamp Duty Land Tax (SDLT) was reduced by a relief”.
Buyers could claim tax breaks through the MDR scheme, with a minimum of 1% of the amount paid for the dwelling.
However, as announced in the Spring Budget earlier this year, MDR would end on 1 June. This was encouraged by HMRC who created consultations and reports on whether this relief was encouraging housing supply in the private rental sector.
For landlords in the sector, the end of this policy could create higher costs associated when increasing their portfolio. For letting agents, this could also impact the housing supply within the sector.
Any purchases made or not finished after 1 June 2024 will therefore not receive any relief.
2. Preparation for the General Election
On the 20 May, Prime Minister Rishi Sunak announced the UK General Election for the 4 July. Throughout June, there are key dates letting agents should be aware of that will help prepare before July.
The deadline to register to vote is on 18 June. If you cannot vote on the day, you must also register for a postal vote by 19 June. You can also to register vote by proxy, meaning that someone can vote on your behalf, by the 26 June.
You can check if you need to register to vote by visiting your local council’s website.
The political parties' complete manifestos are expected to be released in June. While there is no set date on when manifestos must be released, the Institute for Government explained “Labour and Conservative manifestos have been launched between 18 and 29 days before the election. That means they will likely launch between 5 and 16 June.”
The first debate for the general election between the leader of the Conservative Party, Rishi Sunak, and the leader of the Labour Party, Sir Kier Starmer, will take place on 4 June at 9pm.
If this feels like a lot to keep up with, subscribe to Goodlord’s newsletter and we’ll keep you up-to-date with everything about the general election.
3. A possible decrease in interest rates
Interest rates determine “how high the cost of borrowing is, or high the rewards are for saving”. This is determined by inflation rates, the increase in the price of something over time.
In May, the Bank of England held interest rates at 5.25%, which is currently the highest rates have been for the last 16 years. As of April 2024, the inflation rate for the UK is at 2.3%.
However, for interest rates to drop further, Bank of England’s Governor Andrew Bailey said he needs to “see more evidence" in inflation rates reducing before interest rates can then be lowered.
But what does this mean for June? The next interest rate announcement will be on 20 June, following the inflation figures being released on 19 June. If the inflation rate is close to the 2% target, the interest rates should also be lowered.
However, despite the promising decrease in inflation rates over the past months, the general election could affect them in the future.
For letting agents, having an understanding of interest rates is key, as they affect mortgage rates as well as saving or credit card rates, which could affect their landlords.
