Breaking Property News 11/11/24
Daily bite-sized proptech and property news in partnership with Proptech-X.
Navigating new legislation in the Lettings sector
Paul Starkey, technology and property industry veteran and also advisor for Symple, gives his take on how to better monetise lettings operations.
‘During a housing crisis, the last thing the UK needs is a subsequent catastrophe in the private rented sector (PRS) market. However, this could occur if the sector witnesses a mass exodus of landlords in the coming 12-24 months. With the Labour government proposing so much change to the housing market, including increased taxation, new EPC legislation and banning section 21 evictions, it is more difficult than ever to operate as a buy-to-let (BTL)landlord.
The sector is currently at a crossroads, one which has prompted many landlords to consider selling, which could lead to a significant reduction in rental stock, driving up prices at a time of high demand. It’s simply a scenario that agents and the government must work to avoid.
The cost of sustainable housing The push towards net-zero carbon emissions continues to place a huge financial burden on landlords. It has largely been suggested that upgrading properties to meet the new ‘C’ EPC rating by 2030 could cost around £10,000 per property. For landlords managing multiple properties, the investment can seem insurmountable, particularly with rising mortgage rates squeezing margins. This raises a pressing question: is it worth holding onto these properties, or should landlords cash in on today’s high sale prices?
Without greater Governmental support, such as interest-free loans to facilitate these upgrades, it’s expected many landlords will choose to exit the market rather than face such mounting costs.
Proptech as a lifeline This is where letting agents, equipped with Proptech solutions, can make a real difference. Proptech provides a way to streamline property management, ensuring landlords can more easily comply with regulations and manage their portfolios effectively. By offering tailored support, agents can help landlords navigate the complexities of the new market landscape and encourage them to remain in the BTR space. Meanwhile, technology can simplify the landlord experience by automating routine tasks, tracking compliance, and offering advice on meeting new standards.
Whether it’s managing a large portfolio, meeting new sustainability targets, or coordinating with local tradespeople for property improvements, there are Proptech platforms available on the market to help manage the entire journey, end to end.
Navigating a new era As the PRS market enters a new era, the Government must provide two essential components to encourage success: transparency and support. Firstly, landlords desperately need a clear outline of their responsibilities under the new legislation. At present, it’s not clear what will be required of private landlords or when, and this must be made crystal clear to allow adequate time for preparation and action.
Secondly, the Government must back innovative Proptech firms that can assist in implementing these changes nationally. By fostering a supportive environment and encouraging the use of digital technology, the government can make the transition much easier for landlords, helping to reduce the risk of them leaving the market entirely.
A win-win for the PRS Adopting Proptech isn’t just beneficial, it’s absolutely vital if the PRS is to thrive in this new landscape. Digital platforms can lessen administrative burdens, improve communication between landlords, agents, and tenants, and ensure compliance with ever-changing regulations.
The market is at a crucial turning point; now is the time for agents and landlords to embrace Proptech to make property management more efficient, reduce costs, and keep properties in the rental market. Acting now will help to ensure a stable, long-term impact on the sector’s future’.
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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