Happy New Year to you!
I do hope this finds you well and healthy.
I am delighted to be starting January with some positive news for our landlord clients which will hopefully come as some welcome relief!
Firstly – for those landlords with mortgage debt – lenders have continued to reduce their product rates with mainstream lenders such as Halifax and HSBC reducing rates by up to 1% at the start of 2024. Clients now have the ability to borrow at rates not seen since 2022 with sub 4% options. Although this is well above the 1-2% deals of the past it is great to see some stability and a little competition emerging.
Further good news -although we always proceed with caution!
The emergency cost of living legislation will expire on 31 March 2024. Our understanding of the government’s current proposal is that from 1 April 2024, landlords will be able to issue a rent increase notice for any amount – i.e no 3% cap. The tenant could then, if they wished, refer it to the rent officer for adjudication. The rent officer would be able to restrict the rent increase through a tapering mechanism. The larger the difference between the current rent and the open market rent, the larger the increase which would be permitted by the rent officer subject to a maximum figure yet to be announced (but likely to be in the region of 10-15%).
These proposals are still under consideration and we will notify members as soon as a firm announcement is made about rent increase procedures from 1 April.
Rent increase notices issued before 1 April are still subject to a 3% cap, even if the increase doesn’t come into force until after that date.
Please note that we will be preparing for the 1st of April and will be in touch nearer the time for our suggested bespoke strategy for each of our clients.
Thirdly – some more great news – our programme of Lead testing all relevant properties in order to be compiaint with the New Repairing Standard is well under way and over 100 properties have now been tested and all were within the 3 mcg per litre limit – excellent news and a major relief! We really didn’t want to be lifting floorboards nand replacing any pipes! Plus it is great knowing that the tenants aren’t at any risk.
Exciting Plans for the Year Ahead: Better Communication and Enhanced Information
We have big plans for this year! Building on the success of last year, we will be utilising our new website even more to provide you with valuable information. Our goal is to enhance our communication with you through the use of smart technology. We are currently trialling Loom videos, where we can send you short snippets of information to save you time reading lengthy emails. And more of our ewsletters will hopefully be video generated to save you time!
Market Update: Adjusting and Supporting Each Other
In this market place we need to constantly be able to adapt and reflect on the current legislative regime and likely changes to ensure a successful outcome. To do this we wish to strive even harder to deepen our relationships with you, your tenant, our contractors and suppliers. I would always urge you to listen to our advice as there are always situations that don’t meet the narrative that you see in the press!
While the current market favours tenants just now – which is normal for this time of year –we will emerge from this gradually as we move towards March and this will be followed by the easing of rent restrictions from April. Just now there are fewer tenants for many more properties so if we are coming to you with fewer choices of tenant rest assured we are striving hard to seek the best of the applicants out there. One bedproeprties seem to be bucking the trend with the highest levels of demand just now. 2 beds are steady but there is less demand in 3 plus non HMO properties – which is typical for this time of year. Families are recovering from the festive period, getting children back into school and routines etc before they turn their attentions to relocation. We do not doubt this market will improve but we may bring you a smaller choice of tenants to choose from if your property is empty.
Adapting to the Changing Landscape: Our Commitment to Success
We are very positive about the year ahead – there will no doubt be challenges but my agile team are always ready to adapt and as always love to here from you – let us know what we can do better – and also what we are doing well!
Personalised Support: Review Invitations and Open Communication Channels
We will be sending out invitations for review meetings, but please don’t ever hesitate to reach out to us if you have any concerns or simply want to chat. We are here for you and can connect over Teams, Zoom, Loom, phone, or even in person. Your satisfaction is our priority, and we appreciate your proactive approach in keeping us informed.
And without further ado I wish you good health for the year ahead!
