Day: 7 February 2024

Good news: the latest data on buyer demand shows that the number of property hunters out in force is up by 14%*.

So, what’s driving this increased demand? And what does it mean if you plan to buy or sell in 2024?

Let’s take a look.

Interest rates

For a good chunk of 2023, interest rates were high (relative to recent years), and the possibility loomed that they could go even higher.

Many buyers, uncertain about where it would all end, were spooked and put their property-hunting plans on hold.

But in the latter part of the year, things started to shift. The Bank of England held rates steady three times in a row.

Then, a few days into the new year, there was further good news when many lenders dropped their mortgage rates.

Some banks even dipped below 4% on their five-year fixed deals** to woo customers.

With the situation now much clearer – and more positive – expect more wait-and-see buyers to act (especially if they’re renting).

This will not only create more market demand but also increase supply because while some buyers will be first-timers, others will have to sell a property to fund their move.

And more sellers means greater choice for buyers.

Resilience

Some dire predictions about what could happen in the housing market did the rounds last year.

Brace yourself for repossessions and an almighty price crash, some warned.

Thankfully, the doom merchants were wrong, and the market proved to be far more resilient than some expected.

This may partly be because the government tightened mortgage lending rules after the 2008 banking meltdown. The aim was to stamp out reckless borrowing and suppress housing bubbles, and it seems to have worked.

Recent data (released by Zoopla) shows that the average UK home is worth 18% more now than it was pre-lockdown in March 2020.

So, buyers wondering if property is still a good investment need be in no doubt.

Contact us today at Chamberlains if you’d like a free property valuation.

* Source: Zoopla, comparing activity in the first week of January 2023 with the same time in January 2024.

** Lending conditions apply.

 

After years in the making, it looks like the Renters Reform Bill – the biggest shake-up of the private rental sector in decades – will become a reality in 2024.

 

So, how much do you know about this wide-reaching set of proposals, and are you ready for them?

 

Be prepared

 

Perhaps you’ve read a few articles about the bill but have put off getting to grips with the details (after all, politicians put forward all sorts of proposals, many of which never happen).

 

Or maybe you’ve taken the ostrich approach, hoping it will go away.

 

Whatever your response thus far and whatever you think of the bill’s contents, now’s the time to start preparing for its introduction.

 

Timeline

 

The bill had its first and second reading in the House of Commons last year. It will be scrutinised further by MPs and the House of Lords this year and is then expected to receive royal assent.

 

Insiders suggest the bill could come into effect in October; however, with a general election also on the cards (at some point in 2024), nothing is set in stone. Initially, the new legislation will only affect new tenancies.

 

Main components of the Renters Reform Bill

 

The bill is still subject to amendment, but here’s a general overview. The bill will:

• Abolish fixed-term tenancies.
• Scrap Section 21 ‘no fault’ evictions.
• Bolster Section 8, beefing up the existing grounds under which landlords can regain possession and adding new grounds for possession. Landlords will have grounds to regain possession if they wish to sell up, move into the property or move in close family. They can also evict on the grounds of anti-social behaviour or ‘when tenants wilfully do not pay rent’.
• Allow landlords to increase rents once a year in line with market rates.
• Introduce a Private Rented Sector Ombudsman.
• Ban landlords from discriminating against people on benefits or who have children.
• Give tenants the right to request to have a pet in the property. Landlords cannot ‘unreasonably refuse’ the request, but they can insist a tenant has pet insurance to cover potential damage.

 

Implications

 

The bill undoubtedly represents change. But while some systems and processes will need updating to ensure compliance, proactive and responsible landlords shouldn’t panic.

Conducting thorough reference checks and regular inspections and having a proactive maintenance schedule and good rapport with tenants, remains the best protection.

 

Here at Chamberlains, we’re available to discuss the bill in more detail with Teignbridge landlords interested to know more.

 

We’ve already had several landlords get in touch, keen to find out more about how the expanded Section 8 rules will work in practice given the abolition of Section 21.

 

Contact us to discuss the changes in relation to your specific circumstances.

 

And we’ll be closely following the bill’s progress through Parliament, so stay tuned for further updates.

 

Contact us here at Chamberlains to find out more about the Renters Reform Bill.