Update from the Labour Conference on the PRS England

 

Update from the Labour Conference on the PRS England   Dear Landlords, After the Labour conference, we wanted to update you on some feedback. The government is set on its trajectory for the Renters Rights Bill, and they are already well underway with the background work preparing for the raft of regulations that will come with the Bill, for example, details around the Landlord Portal and the Decent Homes Standard. At times like this, the name of the game with lobbying is to focus on constructive feedback on the unintended consequences rather than fight against the concept, which we shall focus our efforts on. There was much talk of net zero and the EPC grade C by 2030. the good news is the proposed modification of the EPC system and the MEES system that underpins the EPC grade will hopefully make things a little more sensible for the specific properties. We hope they will retain a cap of circa £10K and plan to start a consultation on this soon. They have also released details of a new Warm Homes grant scheme to local authorities which if it comes to fruition, will allow Landlords in the PRS access to a fully funded grant of up to 15K to get a property up to a C grade and a potential 15K for low carbon heating. The eligibility is based on the property falling within specific postcodes, or having a low income tenant. The funding will be in full for the first property if it also fulfils the property criteria e.g. it is a band D to G currently (amongst other criteria) but Landlords with more than one property can apply for other properties that fit the rules for 50% funding. There is a limit to this number but it is probably circa 10 – 20 properties). There will of course be an application process and limited funds for councils! To be clear this is not accessible yet. It is at the stage for councils to apply for funding, but it is a useful message for Landlords that the government is planning support measures to help achieve their goals. For those of you who like the detail please see the Guidance note here. The Decent Homes Standard as we know will be part of the new regulations but there is a consultation, being launched imminently, on how the current one will be amended. As such there is little point worrying about the current one as it stands. Labour has confirmed the social sector will have mandatory levels of competency for their staff but they have not included PRS agent competency at this point so we will watch this space on that one. As always we will keep you informed, Regards Chan Khangura BA (Hons) DipRLM MARLA MNAEA Managing Director Whitegates Estate Agents

Analysis of Trends in UK Property Ownership (1918-2023)

 The UK property market has seen significant changes over the last century, with distinct trends emerging in the areas of owner-occupied properties, social renting, and private renting.

 

In 1918, the UK property landscape was dominated by private renters, who made up 75% of all households. At the time, only 25% of the population owned their own homes. Over the next few decades, home ownership gradually increased, reaching about 38% by 1958. This shift was accompanied by a decrease in private renting, which fell to 41% during the same period.

 

The most significant growth in home ownership occurred between 1958 and 2003, where the percentage of owner-occupiers surged from 38% to 70%. This period saw a corresponding decline in both private renting, which fell to just 8% in 2003, and social renting, which peaked at 29% in 1978 before declining to 22% by 2003.

 

Interestingly, the trend for private renting reversed around the time of the global financial crisis. Between 2003 and 2008, private renting began to grow again, rising from 8% to 10% of households. This growth continued, reaching 20% by 2023. This resurgence in private renting may be attributed to various factors, including increased housing demand, affordability challenges in the homeownership market, and changes in government housing policies.

 

Meanwhile, social renting has seen a gradual decline since its peak in the late 1970s, stabilising around 18% in recent years. The reduction in social housing reflects broader changes in government policy and the gradual shift towards promoting homeownership and the private rental sector.

 

In summary, the UK property market has evolved significantly over the past century. The initial dominance of private renting has given way to an increase in homeownership, although recent years have seen a renewed growth in the private rental market. 

 

As a Huddersfield estate agent, it’s important to recognise these trends and consider how they may impact local homeowners and landlords alike. The current levels of private renting and homeownership resemble those seen in the 1970s and 1990s, respectively, highlighting the cyclical nature of the property market. 

 

Understanding these trends can provide valuable insights for making informed decisions in the current property landscape

The Resurgence of the Huddersfield Terraced House: Or Has it Ever Been Out of Fashion?

The terraced house, once considered a relic of the past, is making a notable comeback. But one might wonder—did it ever truly go out of fashion? The simple, unassuming two-up two-down, a hallmark of Victorian red-brick Britain, is now being rediscovered by modern Huddersfield buyers looking for more than just a place to live. They want a home, a slice of history, and the benefits of ownership that many newer properties simply don't provide.

 

While the allure of the sleek modern flat may have dominated recent decades, the terraced house is proving to be a surprisingly attractive option for many - particularly for first-time buyers. According to recent research by Zoopla, terraced houses, in particular two-bedroom terraced homes, are currently the fastest-selling type of property in England and Wales, with an average sale time of just 27 days. So, what’s behind this resurgence, and is the same happening in Huddersfield? Also, why are terraced houses, which some may have once considered outdated, now back in vogue?

 

The Terraced House - A Longstanding British Staple

 

The terraced house has deep roots in the UK’s architectural history, dating back as far as the 1600s when it was first introduced in the aftermath of the Great Fire of London. With their symmetrical design and efficient use of space, terraced houses quickly became a go-to solution for housing in urban areas. They provided a dignified alternative to the overcrowded slums of the Industrial Revolution, offering practical yet comfortable living arrangements for workers flocking to cities like London, Manchester, and Liverpool.

 

In towns such as Huddersfield, where Victorian terraced houses are still a prominent feature of the local housing market, these properties once housed factory workers and their families.

 

Their typical layout - two reception rooms downstairs, two good-sized bedrooms upstairs (sometimes a third off the back bedroom or a converted loft) and a small kitchen or scullery to the rear - allowed for flexible living, even if modest by today’s standards. Yet despite their simplicity, they’ve managed to stand the test of time, evolving with the needs of their occupants.

 

Why Are Huddersfield Buyers Rediscovering Terraced Houses?

 

Several factors are driving the renewed interest in terraced houses. One is price. As Huddersfield buyers feel the pinch of rising interest rates and tightening budgets, many are realising that a two-bedroom terrace often offers better value than a similarly sized flat. Buyers are attracted by the fact that they can often have an entire house for the price of a flat, complete with a garden, their own front door, and no shared floors with noisy neighbours upstairs. These are benefits that flats simply can't compete with, especially in densely populated urban areas in London, Manchester and Birmingham.

 

Post-COVID priorities have shifted the focus toward homes with outdoor space, and the humble terraced house often comes with some yard/garden space, even if it is usually on the small side. This is appealing not just to first-time buyers but also to those looking to escape the claustrophobia of apartment living. Additionally, the cladding crisis, brought to light by the awful Grenfell Tower disaster, has caused many to lose confidence in some modern flats, turning instead to the more traditional Victorian terraced home.

 

Another factor is the freehold nature of most terraced houses. Unlike leasehold flats, where buyers must contend with service charges, ground rent, and sometimes unreliable management companies, a freehold terrace gives buyers full control over their property, which is a huge plus for many.

 

Transforming Spaces and Adding Value

 

Terraced houses also offer a significant potential for customisation and renovation. Stories of buyers transforming run-down Huddersfield terraces into modern masterpieces are increasingly common. I have seen many terraced homes with the addition of a contemporary extension, the homeowner has not only made the home liveable but has also increased its value significantly (although be careful you don’t spend too much as there is a ceiling price for a terraced house). For many Huddersfield home buyers, especially those with an eye for design, these houses offer the perfect balance of history and potential for modernisation.

 

Extensions, loft conversions, and open-plan layouts are just some of the ways Huddersfield terraced homeowners are reconfiguring their homes to suit contemporary lifestyles. These renovations often add both space and value.

 

The Huddersfield Terraced ‘Scores on the Doors’

 

According to my analysis, terraced houses represent 38.0% of the homes in Huddersfield - higher than the national average of 22.5%.

 

For comparison, Huddersfield apartments/flats represent 15.1% of Huddersfield homes.

 

Next, let’s look at the house prices of the Huddersfield terraced home.

 

Between 1995 and today, the average price of a terraced house in Huddersfield has risen from £32,880 to £127,853 (an impressive rise of 289%), interesting when the overall Huddersfield average rise is 200%.

 

Finally, in the last 3 months, the average Huddersfield terraced home has taken 56 days from the property going on the market to achieving a sale, impressive when compared to 117 days for Huddersfield flats.

 

 

A Bright Future for the Huddersfield Terraced House

 

In conclusion, the Huddersfield terraced house has never truly fallen out of favour. While it may have been overlooked at times, especially as modern flats and larger detached homes grow in popularity, the terraced house has always been a reliable, affordable, and adaptable choice for Huddersfield and British buyers. With its combination of history, practicality, and untapped potential, it’s no surprise that this humble house is once again becoming a mainstay of the national housing market.

 

For first-time buyers, those seeking to downsize, or anyone looking for a flexible home with character, the terraced house may just be the perfect fit!

 

London: Europe's Most Expensive City to Rent!

 

London has officially topped the charts as the most expensive city in Europe to rent a home, with an average price of £39 per square metre per month. But the costs can skyrocket even higher if you’re looking to live in central West London, where rents can reach a staggering £59 per square metre per month!    For the rest of the UK, the picture is quite different. Outside of London, the average rent stands at a more reasonable £17 per square metre per month, yet still expensive when compared to many of the mainland European cities in the graphic.   A lot of this comes down to the fact that homes on the mainland of Europe are much bigger, so the price per square metre is lower.   This data also highlights the divide between rental prices in the capital and the rest of the country. Whether you're already in the rental market or thinking of moving, understanding these figures is crucial in making informed choices.    It’s clear that while London offers unique opportunities and experiences, it comes at a price.    Our question to the people of Huddersfield is, what do you think about these statistics?

Renters' Reform Act Update

 The bill has a way to go and may have amendments yet, we will be keeping you in the loop as it moves on its journey through the Houses of Parliament. There are more readings due to take place in the Houses of Parliament before a further two committee readings.

Let’s break down what’s involved and how it might affect you as a landlord.

“It is not as bad as some of the rumours”

The following will run from the date the Act comes into effect and for ALL tenancies:-

Periodic Tenancies

• All tenancies will be periodic tenancies from the beginning
• Tenants will be allowed to serve 2 months’ notice at any time
• This includes existing tenancies which are in a fixed term on the ‘commencement date’, they will convert to periodic.

Rent Increases and Bidding Wars

• There will be a ban on bidding wars. It will now be illegal to ask for or accept bids higher than the advertised rent.
• You will legally be required to publish an asking rent for the property.
• In-tenancy rent increases will be limited to once a year by the serving of a section 13 notice but are not allowed during the fixed term of a tenancy. The positive of this is that it can encourage longer-term lets in your properties.

Safe Housing

• There will now be a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free
• 'Awaab’s Law’ will apply - letting tenants challenge dangerous conditions and setting clear legal expectations about the timeframes within which landlords in the private rented sector must adhere to.

Tenants with Benefits and/or children

• It will be illegal to discriminate against tenants in receipt of benefits or with children when choosing to let your property.
• You can say no to someone with children if it would breach overcrowding rules

Landlord Ombudsman Service

• This will provide fair, impartial, and binding resolution, to both landlords and tenants and reducing the need to go to court. This should help save you time and expense
• ALL landlords are required to join.

Pets

Tenants will have the right to request a pet :-

• You must consider the request and cannot unreasonably refuse.

BUT

• You will be able to request insurance to cover potential damage from pets if needed.
• Evictions & Notices

• You are NOT powerless. You will still be able to evict tenants who break the rules under Section 8 of the Housing Act.

This covers :-

• Non-payment of rent
• Damage to the property
• Antisocial behaviour.

Although you will need a court order the aim is that this will be a streamlined process going forward.

• A new ground for possession will allow landlords renting to students in HMOs to seek possession ahead of each new academic year.

• Notice to sell or move back into the property will be extended to 4 months and will apply where the Tenants have been in the house for a minimum of one year before you can evict them on these grounds.
• Severe anti-social behaviour – Requires no notice, you can just start proceedings.

Energy Efficiency and Property Standards

There will be stricter regulations on the quality and energy efficiency of rental properties:-

• By 2030 you need to ensure that your properties have an Energy Performance Certificate (EPC) rating of C or better.  We are not sure at this stage if this is feasible.
• You will need to ensure properties are maintained to a certain standard, particularly regarding hazards.

Private Rented Sector Database

• This aims to bring together key information for landlords, tenants, and councils.
• Tenants will be able to access information to inform choices when entering new tenancies.
• Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike.
• Councils will be able to use the database to target enforcement where it is needed most.

Rogue Landlords

We know as a landlord you act in a responsible way. The changes will help to weed out the small number of unscrupulous Landlords who are tarnishing your reputation.

You can find the full Bill as drafted here

Remember the bill has a way to go and may have amendments yet, we will be keeping you in the loop as it moves on its journey through the Houses of Parliament. There are more readings due to take place in the Houses of Parliament before a further two committee readings.

Why not take the stress of the new reforms away from you?

Have a chat with our experienced team here at Whitegates about our managed services. We are  well placed to help you to  let your properties quickly and at the best possible price and we also ensure that your let meets Safety standards and protecting you as a landlord.