How Will Tenants Survive The Rental Pressure – Here Is What They Can Expect

If you’re a tenant, you need to read this before renting. In this blog post, we’ll delve into this pressing issue, exploring what tenants can expect in the coming year so you are well prepared to navigate the challenging rental conditions.

The decisions made by landlords are often influenced by external factors such as rising costs of inflation and evolving legislation. These factors, in turn, have a direct impact on the supply of rental properties and tenants. It also influences the broader rental market landscape and affordability for tenants.

Tenants Will Be Given New Protections

The Renters Reform Bill advances through parliament, with potential enactment expected by the close of 2024. This legislative proposal introduces significant changes geared towards strengthening the rights of renters.

A key aspect of the Bill involves the establishment of new regulations dictating how frequently landlords can raise rent. Tenants will now have the ability to challenge steep increases through a tribunal process, ensuring a fair and balanced approach to rent adjustments.

Moreover, the Renters Reform Bill introduces a fresh and more efficient method of resolving disputes between landlords and tenants. A dedicated ombudsman will play a pivotal role in swiftly addressing issues without the need for lengthy and complex court proceedings, providing a streamlined avenue for conflict resolution.

In a move that acknowledges the importance of companion animals in people’s lives, tenants will soon have the right to request permission to keep pets in their rented properties. Landlords will no longer have the authority to issue outright bans on having animals, fostering a more accommodating and flexible approach to pet ownership in rented homes.

These comprehensive reforms represent a positive shift towards a fairer and more tenant-friendly rental landscape, offering increased protection and options for individuals residing in rented accommodations. As the Renters Reform Bill progresses, it signals a promising era for tenants’ rights and a more equitable rental environment.

Rents Are Continuing To Rise

The upward trend in rental costs persists, driven by a scarcity of affordable rented housing and mounting expenses for landlords. The year 2023 witnessed a substantial surge in rental prices, attributed to these factors.

Projections from Hamptons indicate an average increase of 6%, with forecasts suggesting continued growth at 5% in 2023 and 4% in 2024. This surge in rental costs prevails even as house prices experience a plateau amid economic turbulence.

Landlords Won’t Be Able To Set Blanket Bans

Starting in November, the government introduced crucial amendments to the Renters Reform Bill, aiming to prohibit landlords and letting agents from imposing widespread bans on tenants who receive benefits or have children.

This significant move, applicable to England and Wales initially and set to extend to Scotland during the later stages of the parliamentary process, is designed to prevent discrimination against families and vulnerable individuals. It marks a pivotal step in ensuring fair and inclusive housing practices.

It’s important to note that these amendments won’t be applicable to tenancies in Northern Ireland. However, landlords implementing blanket bans could potentially find themselves in violation of anti-discrimination laws, emphasizing the broader implications of these legislative changes.

Landlords Are Still Selling Up

The ongoing trend of landlords divesting their properties is a key dynamic influencing the current landscape of rental prices and holds significant implications for both tenants and potential property buyers. In recent months, buy-to-let profits reached their lowest levels since 2007, with landlords experiencing a dip in net profits, falling below the 4% mark, as reported by Savills. The surge in the sell-off of buy-to-let properties can be traced back to government-initiated changes in mortgage interest tax relief.

Compounding this trend, data from Hamptons reveals that since 2016, nearly 300,000 more rented homes have been sold than purchased. A recent survey conducted by Confused.com further underscores this situation, indicating that 52% of landlords expressed concern about forthcoming reforms in 2024, with 10% contemplating a complete exit from the market by selling their properties.

It’s crucial for tenants to stay informed and prepared for what lies ahead. The changes outlined in this blog paint a comprehensive picture of the challenges and opportunities on the horizon.

If you have questions or seek further insights to your specific situation, the lettings team at Keystones Property in Romford are here to help. Contact us today, stay informed and feel free to reach out for any additional information you may need.