As the housing landscape continues to evolve, it is essential for renters and landlords alike to stay informed about significant legislative changes. One such development is the Renters Reform Bill, which aims to bring about substantial reforms in the rental market.

On the 17th May 2023, the government introduced the Renters’ (Reform) Bill to parliament. MPs will have the opportunity to debate the bill at a Second Reading.

In this blog post, we will cover the main points of the Renters Reform Bill, exploring its key provisions and the potential impact it may have on renters and landlords.

Background:

The Renters Reform Bill is a piece of legislation designed to address the concerns and challenges faced by renters in the UK. Introduced as part of the government’s commitment to improving the rental sector, the bill aims to modernize renting and provide a fairer balance between the rights and responsibilities of tenants and landlords.

Abolishing ‘No-Fault’ Evictions:

One of the significant aspects of the Renters Reform Bill is the abolition of ‘no-fault’ evictions, also known as Section 21 notices. Currently, landlords can evict tenants without providing a specific reason, leading to insecurity and vulnerability for renters. Under the new bill, landlords will be required to provide a valid reason for eviction, ensuring greater protection for tenants.

Introducing Open-Ended Tenancies:

The Renters Reform Bill seeks to introduce open-ended tenancies, bringing an end to fixed-term tenancies and the subsequent uncertainty of renewal. Open-ended tenancies would provide renters with the security of knowing they can remain in their homes for an extended period, subject to the necessary legal procedures.

Rent Increases and Caps:

To prevent excessive rent hikes, the bill proposes the implementation of stricter regulations on rent increases. It aims to give tenants more control over their housing costs by limiting rent hikes to inflation or a prescribed percentage. This provision aims to strike a fair balance between protecting tenants from excessive increases while allowing landlords to make reasonable adjustments based on market conditions.

Improving Tenant Rights:

The Renters Reform Bill places a strong emphasis on strengthening tenant rights. It proposes the establishment of a new regulator responsible for ensuring that all landlords meet specific standards of accommodation and safety. Additionally, it seeks to streamline and simplify the process for tenants to address concerns and report issues, ensuring a more efficient resolution of disputes.

Enhancing Health and Safety Standards:

The bill recognizes the importance of maintaining high health and safety standards in rental properties. It proposes mandatory electrical safety checks, ensuring that all rental properties are regularly inspected to prevent potential hazards. Furthermore, the bill seeks to improve standards for energy efficiency, contributing to sustainability and reducing utility costs for tenants.

Increased Access to Justice: To address the issue of access to justice for renters, the Renters Reform Bill includes provisions for the establishment of a new housing court. This specialised court aims to provide a more accessible and efficient platform for resolving disputes between tenants and landlords. The introduction of this court would streamline the legal process, ensuring quicker and fairer outcomes for both parties involved.

Conclusion

The Renters Reform Bill presents a significant opportunity to reshape the rental market, aiming to provide greater security and rights for tenants while maintaining a fair balance with landlords’ interests. The abolition of ‘no-fault’ evictions, introduction of open-ended tenancies, and stricter regulations on rent increases are notable provisions that will shape the rental landscape in the UK.

Furthermore, the bill’s emphasis on improving tenant rights, enhancing health and safety standards, and establishing a dedicated housing court highlights the government’s commitment to creating a more transparent, efficient, and equitable rental sector.

As renters and landlords navigate the evolving rental market, it is crucial to stay informed about the changes brought by the Renters Reform Bill. By understanding its provisions and implications, both parties can adapt and make informed decisions that foster a more balanced and fair rental environment for all involved.

This article is intended as a guide and does not constitute legal advice. Please visit gov.uk for more detailed information. 

Since Christmas, Rotherham first-time buyers and savvy Rotherham buy-to-let landlords have been more active than expected in the Rotherham property market.

Rents in the Rotherham area have soared in the last two years, with the average Rotherham rent increasing to £689 a month, an increase of 18.8%.

Because of these growing Rotherham rents, it has made homeownership more cost- effective for younger Rotherham buyers and more lucrative for Rotherham landlords.

On the back of this, house prices are rising in Rotherham.

But how can I say house prices are rising when the Land Registry and other indices from the banks state they are falling?

The Land Registry figures published this month will be from sales completed (i.e. keys and monies handed over in February 2023). Yet, as everyone knows, it takes on average, 19 weeks from agreeing on a sale to a completed sale in the UK, so those Land Registry house price figures are from house sales agreed upon in September or October 2022.

If only there were a more up-to-date way of calculating what is happening to house prices.

Well, there is!

By measuring what houses sell for at the sale agreed date by their square footage.

The measure of £/sq. ft is not a particular great way to judge the value of an individual property. However, when looking at a national and regional level, its accuracy is excellent (98% accurate on a national level and around 95% accurate on a regional level).

The average price per square foot at sale agreed matches the Land Registry and Nationwide House Price Index to a very high tolerance/accuracy level, albeit 7 or 8 months before the Land Registry/Nationwide publish their data.

So by tracking the regional £/sq. ft figures for Yorkshire, it will give us an excellent idea of what is happening to Rotherham house prices now.

The top of the property market was in August 2022 when the average £/sq. ft achieved for all house sales agreed in Yorkshire was £239.93/sq. ft.

By December 2022, this had dropped to £229.42/sq. ft, a drop of 4.58% (for Yorkshire homes sold stc in December ’22).

By this April, the average £/sq. ft achieved for all house sales agreed in Yorkshire had risen by 5.27% to £242.18/sq. ft.

Let’s put it another way.

House prices in Yorkshire (including Rotherham) are 5.27% higher than at Christmas.

Just for interest, these are the £/sq.ft figures split down by property type:

• Detached Yorkshire homes – £315.69/sq. ft
• Semi-Detached Yorkshire homes – £249.44/sq. ft
• Town Houses/Terraced Yorkshire homes – £202.06/sq. ft
• Apartments/Flats Yorkshire – £221.41/sq. ft

Before I move on to what the future holds, as a good comparison, currently Rotherham houses are selling for an average of £206/sq. ft.

There are several issues which could upset the ‘apple cart’.

One is the recent Bank of England base rate rise.

The recent decision by the Bank of England (BoE) to raise the Base Rate by 0.25% has only led to a negligible increase of 0.04% in average rates for two-year and five-year mortgages.

This rise in BoE interest rates is primarily attributed to their forecast that inflation will not decrease as quickly as initially anticipated.

Consequently, the underlying costs of lenders’ fixed-rate deals, known as swap rates, have risen slightly, resulting in an adjustment of lenders’ mortgage rates, but not that much.

To provide some perspective, current average mortgage rates (late May) are like those observed at the beginning of April, with some rate fluctuations in those seven weeks. 

I also have concerns about the cost of living persisting among many Rotherham households, which may continue to impact sentiment and activity in the property market. 

Additionally, the gradual impact of higher interest rates on those existing homeowners should not be underestimated. There are millions of homeowners whose existing sub 1% to 1.5% interest fixed mortgages are set to end in the coming three years. 

Some of those Rotherham homeowners would rather sell up and trade down market to reduce their mortgage outgoings than cut their household budgets regarding entertainment, holidays, etc.

However, as I have explained before in my Rotherham Property Blog, my message to those homeowners is to speak with a qualified mortgage arranger. You will be amazed how extending the term of your mortgage will reduce your monthly payments, enabling you to stay in your existing Rotherham home. Of course, you must weigh the pros and cons by talking to a qualified mortgage arranger.   

Yet, if lots of Rotherham homes get put on the market in the coming year or so (i.e. what happened in 2008), then we will have too much supply and probably not enough demand – meaning Rotherham house prices will drop again.

The consistent rise in Rotherham house prices over the past few years can be primarily attributed to a shortage of supply of properties to buy. The opposite will be the case if we get an excess supply of many homes on the market.

So that is what could go wrong in the Rotherham property market; what about the potential good news?

Contrary to expectations back in late 2022, I stated a few weeks ago, Rotherham first-time buyers in 2023 have been more active in the housing market despite prevailing uncertainty. 

I attribute this trend to the rising rental costs, which have made homeownership in Rotherham comparatively more cost-effective. 

This, in turn, has attracted new Rotherham landlords into the market to invest. I am aware some highly geared (i.e. they have high percentage mortgages on their buy-to-let properties) Rotherham landlords have been battered with the section 24 taxation changes from a few years ago.

Yet, there are lots of new landlords coming into the buy-to-let market. They had their fingers burned on crypto and the stock market and are now looking for another investment vehicle for their savings.

The simple fact is the UK doesn’t build enough homes to satisfy the demand, meaning in the medium to long term, rents and house prices go up.

Buy-to-let is an excellent hedge against inflation (do ask me for my article from late last year about that).

The British housing market, which experienced a surge during the pandemic due to the demand for more space, has yet to experience the anticipated decline that some commentators predicted last year. The resilience of the UK economy, the strength of the labour market and the expected decrease in inflation throughout the remainder of the year are all factors that only add strength to the Rotherham property market.

Tell me your thoughts on the matter – I would love to know them.

Are your potential tenants able to afford their rent?

The UK is in a cost-of-living crisis, and it’s having a knock-on effect on landlords in Rotherham. More tenants are struggling to pay their rent, and landlords, therefore, are having to take action to protect their rental income during these difficult times.

At Bricknells, we are experts in the rental property sector, and we’re bringing your our six best tips to help you make sure your rental income is well-protected.

1. Always Carry Out Checks On Tenant Affordability

You should ensure that any prospective tenant is able to afford their rental payments. A lettings agent like Bricknells will be able to carry out these affordability checks on your behalf to ensure the applicant has sufficient income to cover the rent.

2. Keep The Rental Property In Good Condition

As times are tough, you’ll want to get as much rental income as you can for your property, and the best way of doing this is by ensuring the property remains in excellent condition so that it appeals to prospective tenants. Threadbare carpets, dated fittings and dirty paintwork are a turn-off for tenants. Remember, too, that the cost of repairs has increased in the current financial climate, so regularly keeping your property in a good state of repair will help you avoid any large repair bills in the long run.

3. Consider Offering “No Deposit” Contracts

Finding a large deposit can be difficult for prospective tenants, so you may want to consider offering an option for a “no deposit” contract which will give you access to a wider pool of possible tenants who may have sufficient income to cover their rent, but insufficient savings to cover an upfront deposit.

4. Carry Out Rent Reviews Regularly

You should review your rents regularly to make sure you’re maximising your investment while avoiding overstretching the affordability of your tenant. In many cases, landlords decide they won’t increase their existing tenants’ rent when they stay in the property for several years. You should weigh up whether you are happy to leave the rent as is in return for reliable tenants and on-time payments, or if you can maximise the yield further. Our experienced rental team can discuss your options with you if you are unsure on the best course of action.

5. Take Out Landlord Insurance

It’s possible to protect your rental income as well as your rental property itself should a problem arise in the future. Rental insurance is a cost-effective way to recoup your losses should the worst happen. Problems like fire, flood and theft as well as property damage caused by your tenants can all be covered by a landlord insurance policy, and you may even be able to get contingency cover that will protect you against tenants’ non-disclosure.

6. Take Some Tax Advice

You should always take the time to check that you’re paying the correct tax. Property taxation is a complex subject so seeking out expert advice regarding your tax liability as a landlord is essential if you’re keen to reduce your tax bill by as much as you can.

If you’re considering marketing your property for rent in Rotherham, our team at Bricknells is on hand to help you find suitable tenants and manage all aspects of your rental. Call us today on 01709 365584 or drop us an email to enquiries@bricknells-rentals.co.uk to learn how we can help.

Whether you’ve just bought your very first property in Rotherham or your fifth, being a landlord is a role where you can continually keep learning new things and facing new challenges. Other than keeping abreast of what’s happening in the property market, you also need to ensure that you’re following all the latest rules and requirements for landlords.

Here at Bricknells we’ve got years of experience working with landlords and dealing with the property market, so we’ve pretty much seen it all! To help you keep on top of all that you need to be aware of, we’ve created a handy list of the eight most essential things that every landlord should know.

1. Remain aware of what’s happening in the property market

The conditions of the Rotherham housing market are continually changing. First and foremost, a good landlord should keep an eye on property market conditions. This will help inform you on how to market your property, as well as give you an idea of what price you should be expecting for it. You’ll also have a much better idea of the competition if you regularly do your market research

2. Understand the facilities in your property’s location

Knowing the local neighbourhood that your property is located in can significantly affect how well you position your property. For instance, here in Rotherham there are some excellent schools in the area, so you may want to market your property as a family home. Likewise, if it’s located on the commuter belt, you could think about converting it into separate flats to accommodate four individual tenants instead of just one household.

3. Ensure that your Rotherham property is up to scratch

When you rent out a property, you need to ensure that it meets certain requirements. You must ensure that it is a liveable space with a safe environment for any tenants that move in.

• Does it have the necessary smoke alarms?
• Are there any safety hazards?
• Is it wheelchair accessible?

Ask the team here at Bricknells, as we can help you understand all the requirements your property needs to meet before you can rent it out.

4. Short on time? Bricknells will be a huge help

Want someone else to take on the load of the actual property management? Hire Bricknells to look after your rental property and your tenants. Here are some of the many ways that we can help you:

• Advise you on rental property prices based on market conditions
• Market your property, online and offline
• Arrange and conduct viewings on your behalf
• Draw up tenancy agreements
• Property maintenance and repairs (no late night calls about broken boilers for you!)
• Collect rent every month and chase up late payments

5. Work out your taxes

Before you start getting rent paid into your bank account, you should register with HMRC to ensure that you’re taxed accordingly. You’ll be taxed on all rental income after the first £1,000.

It’s important to mention too that there are different tax rules for landlords depending on the type of property you own. Look into this on the HMRC website to make sure you’re doing all that’s legally required.

6. Set aside some money for emergency funds

As a landlord, you should always be prepared. To remain within your budget, set aside a small amount in case anything goes wrong. For example, if your property is unexpectedly vacant for a short period, you should ensure that you can cover your mortgage payments without rental income. Work out how long this period would be.

Set some money aside for any unexpected issues as well. No matter how new a property is, wear, tear, and weather may lead to the need for maintenance and repairs.

7. Comply with all legal requirements

There are many legal requirements that you must follow as a landlord to ensure the safety of your tenants and to avoid fines and penalties. These include:

• Gas Safety (Installation and Use) Regulations 1998 and Subsequent Amendments. These state that all gas appliances must be safe and checked annually.
• The Smoke and Carbon Monoxide Alarm (England) Regulations 2015. The landlord is responsible for ensuring that their property is fitted with working smoke alarms and carbon monoxide alarms.
• The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020. Under these regulations, the landlord is required to make sure that all electrical appliances in the property are safe to use.
• EPC (Energy Performance Certificate) & MEES (Minimum Energy Efficiency Standards). These state that all landlords must provide a valid EPC certificate to their prospective tenants.

8. Check whether your local council requires any specific licences

Contact your local council to check whether any other licenses are needed before you rent out your property. Some councils will have specific mandatory regulations above and beyond the ones mentioned above.

Need expert advice?

If you need any advice on renting out your property, please get in touch with our team at Bricknells on 01709 365584 and we will be delighted to help you.

With the cost-of-living crisis beginning to hit, the 20 and 30-somethings of Rotherham urgently need the help and support of the Government to help them get on the property ladder.

For the last few weeks, we have listened to the debates and hustings of Liz and Rishi. Between them, they have told us how they are going to stop building on the green belt, slash taxes, outbid each other on the number of refugees they are going to deport and push back against WOKE culture wars, but what are they doing for the 20 to 30-somethings of Rotherham? 

Dubbed ‘Generation Rent’ by the press, desperate to get on the property ladder, this is an open goal for any candidate to obtain more votes to become the next Prime Minister.

Yet only 16% of the c.200,000 Tory membership is aged 18 to 34 whilst 47% of members are aged between 55 and 74.

Therefore, it’s not a surprise that neither Liz nor Rishi aren’t speaking daily about the cost of petrol for the daily commute, rising childcare fees or the lack of opportunities for first-time buyers to purchase their own properties. 

(For balance, 16% of Labour’s members are 18 to 34, 20% for the Lib Dems and 16% for the SNP).

Everyone is feeling the effect on their household budgets with the rise in energy bills. Yet, it is the younger generation (i.e., Generation Rent) that are having to cope with the frenzy of rising energy costs the most.

Whilst increasing energy prices will affect all households across the country, younger (and less affluent) households are more prone to be disproportionately affected than those on the lowest incomes (i.e., Generation Rent).

In the financial year ending in 2020, the least well off 25% of households spent 5.59% on energy compared to 3.9% for the average UK household. With 2023 energy bills set to be triple those figures, energy bills for those in the lower quartile will rise to around 16.8% of their household budget.

And let’s look at the housing element of the ‘Generation Rent’ household budget.

The average rental of a Rotherham property in the summer of 2020 was £541 PCM; by the summer of 2021, it was £575 PCM, and today, it is £623 PCM.

Overall, Rotherham rents are 8.3% higher than a year ago and 15.1% higher than two years ago.

This is the fastest annual rate of rental growth since records began in 2006. This increase in rents isn’t standard. Before 2020, I would have expected to see this level of rent growth over a seven-to-ten-year period – not two years. Good news for Rotherham landlords, yet not so for Rotherham tenants.

Why have rents increased so much in Rotherham?

It comes down to fewer rental properties and existing Rotherham tenants not moving as much.

There are 368 fewer rental properties in Rotherham than five years ago, leaving only 6,527 private rental properties in Rotherham.

9 out of 10 rentals come onto the market because the existing tenant is moving. Yet, because there are fewer Rotherham rental properties and the asking rents for those are much higher than their current home, many Rotherham tenants are not moving, exasperating the issue even further.

Today, I looked on Rightmove, and there were only 85 properties available to rent. I would have expected that to be over double that pre-pandemic.

Neither candidate has been silent on the topic of homeownership for the young.

Rishi Sunak said he would stop building on the greenbelt. This, however, would not help Generation Rent massively.

Liz Truss has pledged to help more renters buy their first home by stating she will ensure tenant’s rental payments could be used as part of mortgage affordability assessments. This is important as the mortgage payments can be 10% to 20% lower than the rental payments. 

Tied in with new relaxed mortgage affordability rules announced by the Bank of England in early August, this is undoubtedly a step in the right direction to help Generation Rent.

Truss also plans to scrap the red tape holding back housebuilding and give local populations more say on developments. However, when Boris Johnson suggested something similar a few years ago, the policy was quietly dropped after the Liberal Democrats used this against them resulting in the Tory’s resounding by-election defeat in 2021 in Chesham and Amersham.

So, by the end of the first week of September, we will know who the Prime Minister will be. Whoever gets the job has a gigantic task on their hands. I wish them luck and ask them not to forget the younger generation and their aspiration to be homeowners.

• 254 of the 864 properties on the market in the Rotherham area have had a price reduction in the last 3 months.
• The average reduction has been 6.3% of the original asking price.
• This is great news for Rotherham home buyers and Rotherham buy-to-let landlords, strangely Rotherham house sellers as well.

The last couple of years of the Rotherham property market has seen some amazing prices being achieved with multiple offers and many properties selling for way over the asking price.

Yet, as I have been writing about the Rotherham property market over the last few weeks, the tide is beginning to turn, and pendulum swing more towards a balanced Rotherham property market as more homeowners in the Rotherham area (S60/61/62/63/65/66) have been reducing their asking prices.

Of the 864 properties for sale in the Rotherham area, 254 have been reduced in price in the last 3 months.

This can be broken down as follows…

So why is this important and why is this good news, even for Rotherham house sellers?

Property industry statistics show that 5 out of 6 house sellers will buy another property and over 80% of those sellers will move up the property ladder.

When you move up the property ladder, that normally means you pay more for the one you want to move to (that’s why it’s called the property ladder).

So, whilst you won’t be getting as much for yours as you might have done earlier in the year, you won’t have to pay as much for the one you want to buy (and the price difference between the two properties will be smaller – meaning you will end up saving money because of these reductions).

Therefore, what is the level of reduction being seen in the Rotherham property market?

The average percentage of the price reduction in the Rotherham area has been 6.3%.

I must stress house prices/values in Rotherham haven’t dropped 6.3%, just the asking prices of some of the properties on the market.

This is good news for Rotherham first-time buyers and landlords, as they will be more likely to buy a property at a more reasonable price whilst. As I explained above, this is also good news for sellers as most of them will end up paying less for the higher priced property they end up buying after selling theirs.

So, what should Rotherham homeowners be aware of if they are selling their home now or in the future?

For me it is important that I inform all Rotherham property owners of the real story. This enables them to judge for themselves where they stand in the current Rotherham property market, thus enabling them to make better informed decisions.

You see some Rotherham estate agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a bigger chance to secure the property on that agent’s book, as opposed to a competitor.

This practice is called overvaluing.

Now of course, each Rotherham homeowner wants to get the most for their home, yet some estate agents know this and prey on those Rotherham house sellers.

You might ask, what is the problem with that?

Well, you only get one opportunity at hitting the Rotherham property market as a new property. Everybody has access to the internet, social media and the four main property portals (Rightmove, Boomin, On The Market, Zoopla), and your potential buyers will know the property market like the back of their hand.

If you have a 2-bed Rotherham semi that is on the market for a 3-bed Rotherham semi-detached house price … those Rotherham buyers will ignore you.

Your Rotherham property will stick on the market as your potential buyers keep seeing your property on the portals each week.

These buyers will then start to believe there is something wrong with your property and dismiss it even further. That is until you, as the house seller, reduce your asking price. The issue is that sometimes these buyers will think something is wrong with your home and could bid you down even further, meaning you will get less even though you asked for more! (This was backed up by some research done by Which?).

Now according to research by Denton House, the average British house buyer only views around six properties before buying – so please don’t assume viewers will come round your optimistically priced (i.e., overvalued) Rotherham home, thinking they will knock you down – quite the opposite – they just won’t view your home in the first place.

And you know that because I bet you have done the same yourself when searching for property.

So, all I suggest is this … be realistic with your asking price to start with.

Do that and you will sell your Rotherham property at a decent price to a decent buyer … first time, every time – enabling you to move onto the next chapter of your life.

If you know of anyone currently selling their home in the Rotherham area and finding things difficult, please share this article with them as it could be of interest.

Well, what a weekend that was. Street parties, gatherings in the park, the purple bunting, egg and cress sandwiches, union jack flags, cheese and pineapple on cocktail sticks, and let’s not forget the trifle – the Platinum Jubilee Party. And no decent party is worth its salt without a game or a quiz.

So, if you have post-Jubilee blues, let me ask you, how much was the average Rotherham house worth in 1952?

To start with, let me look at what a property is worth today in Rotherham.

The average price paid for a property in the Rotherham area in the last 12 months was £174,290.

Now, let’s go back to 1952. Sir Winston Churchill was the Prime Minister, Newcastle won the FA Cup, London was covered in the Great Smog, free prescriptions on the NHS ended (it cost 1 shilling or 5p in new money), and King George IV, at the age of 56 passed away on the 6^th February, meaning Princess Elizabeth became the Queen – as for housing…

The average price of a Rotherham home in 1952 was £1,423.

This means Rotherham house prices are 121 times higher since 1952.

Yet over the last 70 years, the country has been subjected to 4.5% per annum inflation.

The 1952 Rotherham home is equivalent to £27,367 today when adjusted for inflation.

This means Rotherham house prices have increased by 504.8% in real terms since 1952.

So, does that mean house prices are more expensive today compared to 1952?

In 1952, the average annual male wage was £452, 8 shillings and 1 pence, meaning the average Rotherham house was 3.15 times the average wage. Today the average home is 8.85 times the average wage.

Yet let us not forget the average mortgage payment in 1952 was £11 per month. The average Brit earned £34 per month, meaning 32.3% of the household income was going on mortgage payments, whilst nationally today, according to the Nationwide, it stands at 28%. 

It’s cheaper, in real terms, to buy a property in 2022 than in 1952.

And that’s the point, some things in ‘real terms’ (real terms being true spending power of the money after taking into account wages, costs and inflation) were more expensive and some cheaper 70 years ago. For example, in 1952, petrol was equivalent (in today’s inflation-adjusted prices) to £1.02 per litre, a pint of beer £2, half a dozen eggs £2.20, 

cheddar cheese £2.40 per 500g, a basic radio £430, a Hoover £530 and a 12-inch TV £1,600.

So back to property, the Queen’s reign has seen some amazing house price rises in the UK, yet that growth hasn’t always been in constant upwards direction as we have had a couple of dips along the way.

We had a house price crash in 1990, when the average value of a Rotherham property dropped from £42,825 to £35,468 in 1996, only for them to start rising again.

Rotherham saw another house price crash between 2008 and 2009, and the average house price dropped from £128,109 to £109,215 in a year.

So, what else has changed about property and housing since the Queen came onto the throne?

In 1952, only 32% of people owned their own home, whilst 50% of people rented from a private landlord and 18% rented a council house.

By the time of the Silver Jubilee in 1977, 56% of people owned their own home, with 12% of people privately renting and 32% rented from the council.

Come the Golden Jubilee in 2002, 70% of people owned their own home, with 11% of people privately renting and 19% rented from the council.

Today, 63% of people own their own home, 20% of people privately rent and 17% rent from the council.

So, to conclude, as we look forward into the 21st century, I am sure the property market will be totally different again in 70 years. 

I hope you enjoyed reading this article and do share it with your friends if you find it interesting. 

PS for all you Rightmove fans, the average Rotherham terraced home in 1952 was worth £905, and a semi in Rotherham could be bought for on average £1,295.

Rental properties in Rotherham have reduced by 368 from 2017 to 2021.

Property prices are at an all-time high responding to the pent-up demand from 2020/21, low stock and the desire for more living space.

Talking to a number of landlords they view this is as a suitable time to exit the BTL market and take some equity that the high sales figures generate.

You would think it would be of government concern about a shrinking PRS, but the reality is that being a landlord is becoming harder with increased legislation, the debate about the abolition of section 21, not to mention the inability to offset finance costs and all coupled with the perception that the landlord is always the Bad Guy!

When landlords sell, we offer the properties with a sitting tenant to our investor base but with the current increased prices, the extra 3% stamp duty that an investor would need to pay, make the yield calculation unattractive.

The net result is that properties are lost to the PRS which with reduced supply and high demand will drive rents higher but with inflation and the cost-of-living crisis there will become an unaffordability of significant increases in rents.

Not with standing this I always remind landlords that they need to increase rents on an annual basis in line with the price indexes so that it can go some way to make the yield calculation workable. 

Otherwise, there will be no interest to investors, tenants lose their home, and the landlord sells to the highest bidder.

Isn’t it about time that the government makes it attractive to be a landlord, the overall majority of whom provide decent quality housing?

Being a landlord needs to be worth their while, if not the PRS will be in decline and then what for the millions of tenants who rely on the PRS.

Appreciate any thoughts! Feel free to give me a call 07743 702739

If you’re contemplating becoming a landlord in Rotherham, you may be wondering whether you can let out your property if you don’t have a specific buy-to-let mortgage. There is a common misconception that landlords must acquire a buy-to-let home loan before renting out their property to tenants but, in fact, it’s possible to let your home out with a standard residential mortgage as long as you have Consent to Let.

The expert team here at Bricknells have all the information you need about getting this permission from your mortgage lender.

Consent To Let – An Overview

Your mortgage lender can give you permission to let your property by giving you “consent to let”. If you have a standard residential mortgage instead of a specific buy-to-let mortgage, you must obtain this permission before you rent your home out. Consent may also be required from other authorities including your housing association or any other organisation that has regulations that apply to your home (for example, shared ownership), any other adult with occupancy rights, and your insurance provider.

Why Is Consent Required?

If you have bought your home with a standard residential mortgage, one mortgage condition will be that you live in the home yourself. If you let out your property without first getting permission from your mortgage lender, you will very likely be in breach of contract and you could end up with a financial penalty such as additional payments or extra interest. For this reason, if you have a residential mortgage and want to let out your home you must either obtain consent or change to a specific buy-to-let mortgage.

When Must I Get Consent?

Once you’ve decided to rent your property out to a tenant, you must get in touch with your lender and arrange for permission to be granted. Sometimes, it’s best to switch to a buy-to-let loan, but in some cases, obtaining Consent To Let will be the best option for you. For example, if your mortgage is currently a fixed-term product but you’re keen to leave, obtaining consent and then renting out the property can help you avoid the early repayment fees. If you’re planning to move overseas for a short period but will eventually return, obtaining consent will enable you to let out the property while you’re away, giving you some additional income to pay for the cost of renting another property in your chosen destination.

How Can I Obtain Consent to Let?

You can get consent by getting in touch directly with your lender. Every lender has their own process, however, they can discuss the options available to you. The fees you will be charged will differ depending on which lender you are with. While some charge one-off fees, others charge an increased rate of interest, and others don’t charge a fee at all. If you are granted consent, it will only be for a specified period. Usually, it will be to the end of a fixed-term mortgage, however, some lenders will work on either a 12 month or 6 month basis. After the consent period has ended, you’ll need to get in touch with the lender again to discuss your next steps. Your lender may extend your consent period or ask you to change to a buy-to-let product.

Most lenders will accept your request for consent, but it’s likely there’ll be some restrictions. For example, you may need to earn a certain amount to obtain permission, or you may have to have a specified amount of equity in the property. You may also need to earn an income from rent to cover your mortgage payments. You may also find that you have to have been with your lender for a specific period before being given consent. If you’ve defaulted on your mortgage payments you will find it hard to get consent, and you may also find extra restrictions if you have a Help To Buy or Shared Ownership mortgage.

Ready To Let?

If you’re ready to let out your property in Rotherham, the team here at Bricknells is happy to help. Just give us a call today on 01709 365584 or send an email to enquiries@bricknells-rentals.co.uk and we can get to work finding you the perfect tenant.