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

Andrew Stanton

CEO & Founder Proptech-PR. Proptech Real Estate Influencer, Executive Editor of Estate Agent Networking. Leading PR consultancy in Proptech & Real Estate. Want to contact me directly regarding one of my articles or maybe you'd like a chat about future articles? Email me via editor@stagingsite.estateagentnetworking.co.uk

You May Also Enjoy

Home and Living

How to Protect Your Property from Flooding and Water Damage

Flooding and water leaks can cause significant damage to your home or office. However, many issues can be prevented by taking proactive measures to protect your property. In this article, we’ll explain how to minimize risks and prepare for potential water-related threats. 1. Inspect and Maintain Your Plumbing System One of the most common causes…
Read More
Breaking News

ONS House Price Index – November 2024

Headlines Average UK private rents increased by 8.7% in the 12 months to October 2024 (provisional estimate); this is up from 8.4% in the 12 months to September 2024. Average rents increased to £1,348 (8.8%) in England, £766 (7.9%) in Wales, and £976 (6.6%) in Scotland, in the 12 months to October 2024. In Northern…
Read More
Breaking News

Foxtons Lettings Market Index October 2024

Headlines October saw the highest level of new stock entering the market, with an 8% increase from last year, the highest increase in four years October’s demand is marginally lower than last October and decreased 32% from September, as expected during this time of year Following a yearly high of £593 per week this September,…
Read More
Breaking News

Breaking Property News 20/11/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Proptech powered lettings service for BTR developers needing pre-approved, quality tenants at speed gets funding A proptech-driven letting agent has secured close to £500,000 during its first equity investment raise. Property Sense, headquartered in Stockport but operating nationally, secured the half a million pounds in…
Read More
Kerb appeal
Estate Agent Talk

Why November and December are the best and most affordable months to buy

Buyers and sellers looking for the right time to move can consider top reasons from property experts to start the process this November and December. The autumn and winter months may not be the first that come to mind when considering a move, but potential buyers and sellers can be reassured by the experts that…
Read More
Breaking News

Farmers protest outside Westminster today in anger at the IHT ongoing debate – expert legal view

With today’s news about farmers set to protest outside Westminster in anger at the IHT ongoing debate, Tom Gauterin, Director at national law firm Freeths, said: “Although it is good to hear Mr Reed last week suggest that the Government is listening to farmers, today’s protests would suggest otherwise with the extent of their concerns…
Read More