Stay informed this November: key updates on the Renters' Rights Bill, HMO council tax in Wales, and potential inflation changes for letting agents.
Significant changes will impact letting agents this November, potentially reshaping their daily operations and the rental sector overall. With the Renters’ Rights Bill progressing through Parliament and inflation rates possibly declining, staying informed is essential for agents to provide landlords with timely guidance.
What to look out for in November 2024:
- Renters’ Rights Bill enters the report stage
- Wales reconsiders HMO council tax policy
- Potential decline in inflation rates
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:
Renters’ Rights Bill enters the report stage
The Renters’ Rights Bill is advancing quickly through Parliament, with its final committee debate on 31 October.
November is expected to bring the Bill to the Report Stage, a key step closer to becoming law, potentially by summer 2025.
Letting agents should monitor the Bill’s progress to prepare for sector changes and better support their landlords.
Wales reconsiders HMO council tax policy
The Welsh Government is consulting on council tax rules for Houses in Multiple Occupation (HMOs), where each unit is charged individual council tax charges, often increasing costs for landlords.
The consultation, closing on 26 November, explores options, including aligning with England’s approach, which treats some HMOs as single dwellings for tax purposes.
Rebecca Evans MS, Welsh Cabinet Secretary for Finance, has invited feedback from taxpayers, councils, landlords, HMO owners, and tenants on the proposals.
Potential decline in inflation rates
On 7 November, the Bank of England is expected to lower the base interest rate from 5% to 4.75%, which may ease inflation and reduce operational costs for landlords.
Letting agents can help landlords adjust their budgets and plan for long-term savings in light of these potential changes.
Staying informed on these changes enables agents to effectively guide landlords through economic and regulatory shifts expected in the coming months.
October 2024 - lettings recap
1. Renters’ Rights Bill enters second reading
Labour introduced the Renters' Rights Bill on 11 September, aiming to reform the private rented sector. The bill will face multiple stages in Parliament before becoming law. On 9 October, it will have its second reading in the House of Commons - where MPs will debate its key elements for the first time.
If passed, it moves to the committee stage for further review.
Letting agents should track this bill, and key elements of the bill, closely. For example, Deputy Prime Minister Angela Rayner announced at the September Labour conference: “I will clamp down on damp and mouldy homes by bringing in Awaab’s Law in the social rented sector this autumn and extend it to the private rented sector too."
However, there has been no confirmed date on when this will happen.
2. Autumn budget
In August, Prime Minister Sir Keir Starmer warned that "October's Budget will be painful." The Autumn Budget is due on 30 October, delivered by Chancellor Rachel Reeves.
While details are still under wraps, there is speculation that tax changes could be on the agenda, including potential adjustments to:
- Capital Gains Tax (CGT)
- Inheritance tax (IHT)
- Fuel Duty
Goodlord will provide insights tailored for letting agents post-budget. Sign up for our newsletter to get updates as soon as the budget is released.
3. More changes to energy and gas prices
As of 1 October, energy prices in England, Scotland, and Wales will rise by 10% under a new price cap. The cap, set by Ofgem, is reviewed every three months, reflecting shifts in wholesale energy prices, supplier costs, and demand.
The typical annual dual-fuel bill (direct debit) will increase from £1,568 to £1,717. These prices will be capped until the end of the year.
September 2024 - lettings recap
1. 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.
2. 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
3. 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.
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