November round up of the private rented sector
Through the year there has been continuous calls from various bodies for regulation of letting agents, and this month is no different with Arla calling on the Chancellor to regulate agents working in the expanding private rented sector, and to also encourage landlords to make improvements to existing properties.
Whether or not this call will have any impact though seems unlikely, as yet, apart from the Government announcing reviews into the sector and setting draft rules that are to be debated next month, there has been no solid positive movement on this so far from the Government.
It has not been all doom and gloom this month, with many stories reporting how the private rented sector is growing rapidly with property group Savills predicting that “more than a million households are expected to join the UK’s growing army of tenants over the next five years, despite government efforts to boost home ownership.” Knight Frank also argued that the Help to Buy scheme would not have a negative impact on the rental market particularly with rising interest rates putting further upward pressure on rents from 2015 to 2016, and affordability levels for home ownership also being eroded, they expect residential property rents across the UK to rise by 16% by 2018. The campaign group, PricedOut has even claimed that “First-time buyers would be better off renting than buying a home with a 95% mortgage through the government’s Help to Buy scheme, and are being pressured into taking on unaffordable amounts of debt“.
So as we start to look towards next year it could be said that the private rented sector is not going any where and is firmly set to stay for a while. Now only if the debating could materialise into action on regulating agents to assist with this growth could be decided upon!