The number of tenants in the UK’s private rented sector experiencing rent rises increased to the highest figure on record in June, the latest figures from the lettings agent industry show.
Some 55% of agents who are members of the Association of Residential Letting Agents (ARLA) reported landlords increasing rents, up 22% compared with May which was a previous record high.
This might indicate that the market is going well for landlords as demand is also increased month on month. But it is not all rosy. Indeed ARLA figures show that demand has fallen year on year.
But the sector does appear to be steady as the number of landlords exiting the market remained at four per branch, unchanged from June 2018.
However, there are a lot of issues that landlords still face in terms of regulation and protections. The Intermediary Mortgage Lenders Association (IMLA) has warned that in the buy to let market private landlords across the UK are under significant pressure from a layering of tax changes that includes the 3% stamp duty surcharge on additional homes.
The IMLA points out that the latest quarterly stamp duty figures from HMRC shows that the tax continues to deter many buyers from entering this market and prevents small scale landlords from investing to grow their portfolios.
It is calling for the Government to put the brakes on any further legislation that could restrict the Private Rental Sector (PRS). Its recent report on buy to let showed that the market could be topping out and measures like stamp duty are putting immense pressure on private landlords.
It also warned that there are unintended consequences of squeezing the PRS in order to boost home ownership, not least driving up rents and limiting the choice for tenants across the country.
Another increasing source of concern is individual councils introducing licensing schemed. The Residential Landlords Association (RLA) has just written to Coventry Council to warn that its landlord licensing and accreditation scheme is potentially unlawful.
Under the scheme, private landlords in Coventry accredited by the council are able to obtain longer licence for houses of multiple occupation (HMO) than those who are not. This is the case even if landlords are able to demonstrate expertise and ability to rent property out in alternative ways, such as through training. The only way for landlords to become accredited is to attend training courses in person, which the RLA argues discriminates against landlords who do not live close to their property in Coventry.
Meanwhile, a new association has been launched to drive forward regulation and protection for people who rent out a room in their home and lodgers who rent the rooms. The Lodger Landlords Association (LLA) aims to ensure lodgers are afforded the same level of protection as other areas of the private rental sector, with non-compliance being monitored and discouraged.
The LLA will be lobbying for the existence of a legal framework and wants to provide amateur live-in landlords with comprehensive guidance and education to ensure they meet their legal and safety requirements.
According to Richard Blanco, the London representative of the National Landlords Association, many live-in landlords would benefit from education and guidance on best practice.
Ray Clancy
Editor Property Wire
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