As well as ushering in summer, May 1st was also International Workers Day. And perhaps the Renters Reform Act, with the best of intentions, coming in on that day, will help those self-same workers to have greater security of tenure when renting – and who knows, perhaps have a better chance of buying as more ex rental properties come to the market.
Landlords, though you wouldn’t think so to listen, have benefitted too. The old section 21 notices didn’t allow for either vacant possession for sale, or to house their own families – they now can.
Not every landlord is a Rachman or a van Hoogstraten – in the same way not every tenant is a bastion of the community.
THE FINAL STRAW
Over the last year, the major auction houses have been selling on behalf of landlords in anticipation of the new act coming in.
For many of them it is the final straw, the last in a long line of government implemented measures to make the landlords life more difficult – and the asset class much less desirable.
What has been the (unintended) consequence?
Fewer properties to rent – those listed in London have dropped by over 20% and homes for sale up by a similar figure, just at a time when interest rates looking more likely to rise along with inflation. A brave time to buy? The consequence? Increasing rents.
CRASH TEST DUMMIES
One lesson from 2008 – and there are many. In difficult economic times the ability to get a mortgage becomes a lot more difficult and the range of mortgage products offered decreases – with larger deposits often required.
And if there were a crash?
The average house price as of July 2025 in the UK was £292,000 – would a 15% reduction (as they did in 2008) suddenly make buying a realistic option for many tenants?
And who could meet the more difficult lending criteria in 2008? Landlords – buy-to-let mortgages operate under different criteria.
PLANNING NIGHTMARE
We all know building more houses is the solution but still the planning system, despite promises, is no nearer unblocking the log jam. Indeed, many would say it’s worse than ever.
Property Soup reported last week on the widening gap between houses the Capital needs, and those started.
Any developer who has the will power and bank balance to play the planning game has long since had second thoughts.
The major house builders have stopped and the Housing Associations have no money – with those promised not materialising – and must contend with contractors going bust mid construction.
But not to worry. At least summer is now here.
