Even before Boris announced his decision to appoint a new Housing Minister (13 in 12 years) and then resign a number of our Landlords were asking us what the real implications/consequences of the new Renters Reform White Paper were for them and their investment/prospects.
Our response – very consistent over so many years is – “ hold a steady nerve and all will be well “.
It does however make very good sense to have a great Letting Agent as a trusted partner in these more uncertain times – we recommend Myrings.
Most of the Media so far have focused on Section 21 No-Fault Evictions / Energy costs & EPC C regulations and Pet-friendly regulations in the new White Paper.
As often happens, they just don’t see the landscape as we do here in Harrogate and District.
House price inflation and price/value robustness here in the face of economic storms raging elsewhere in the country is the stuff of legend – and not for nothing is Harrogate known as the Teflon Town.
Rents are strong here, as is demand, especially for larger family homes with outdoor space/garaging. Yields are decent – not spectacular – but voids are rare, incomes predictable and Capital Growth excellent.
As we see it going forward the real change in the local Rental marketplace could be the proposed legislation heralding the introduction of periodic ( month by month ) tenancies as standard.
We would say to Whitehall – “beware of the laws of unforeseen consequences “. Having a higher turnover of Tenants will not only cost our Industry more in terms of referencing and marketing, but it’ll also mean that Landlords must deal with a shorter turnaround time if a Tenant decides to vacate unexpectedly. This could increase void periods, cost money and require an increase in rent. New contractual periodic tenancy agreements will need to be introduced and the opening of the rental marketplace to an expanded pool of people looking for shorter/more transient tenancies will require even closer tenant qualification. So there you have it – this is where we stand today. In addition to political turmoil, there is an increase in bank base rate every month (higher mortgage costs), high inflation/steep rises in the cost of living and overall many tenants are now “staying put” and unwilling to move. Periodic tenancies, if they arrive, will come with their own set of challenges but maybe, if properly managed, turn out to be acceptable to all parties, offering increased flexibility and reducing the number of administrative tasks required throughout the tenancy. We shall see.
If you are a Harrogate homeowner or involved in the local property market in any way then please contact us for a free no obligation chat about the above and the property services we provide in Residential Sales and Lettings. When it comes to rentals we would steer you towards a chat with Mr Richard Chapman – our new Lettings Manager.
Charles.
