Will the strength of the UK lettings market continue? As we enter the busy summer period, the appetite to move shows no signs of slowing down – with demand outweighing the supply of homes available to rent. In fact, we’re already conducting searches for prospective tenants hoping to move by September.

Join Jane Cronwright-Brown, Head of Residential Lettings, Lucian Cook, Head of Residential Research, and our panel of lettings experts, as they review the current rental market, explain the latest in legislative requirements, and explain how you can capitalise on this year’s fast paced, high value opportunities.

Thanks also to Chloe House, who joined the panel as a guest from SPF Private Clients, a funding, wealth management and insurance advisor. If you’re considering the structure of your buy-to-let portfolio and associated financing, do reach out to Chloe and her team.

 
We didn’t manage to answer all of your questions during the webinar, so we’ve included a few more below. Our answers are based on limited information and landlords should seek further advice regarding any specific situations. If you asked a question specific to your personal circumstances, one of our lettings experts will be in touch directly.

Q: If the tenant doesn't pay their utility bills, how can I reclaim these costs other than from their security deposit?

A: If they are in breach of their tenancy agreement by not paying (i.e. there is a term in the agreement that says they must pay and how) then the only way to pursue them if they won't pay is through the courts. You could do this through the on-line small claims system.

Q: Is it possible to adjust rent in the middle of a tenancy?

A: If you are in a fixed term then no. If you have a periodic (rolling) tenancy then you can serve a section 13 notice, which is a rent increase notice, once every 52 weeks, or you can agree a fixed term renewal with a rent increase and you don't need to serve a section 13 notice. A section 13 notice can be challenged and can be referred by the tenant to the rent assessment committee so you need to provide evidence that the increase you are looking for is the market rent. You should seek legal advice or do some research before you serve a section 13 notice so you understand all of the implications.

Q: Is there a move towards longer term rents rather than short term lets whilst looking for a property to buy?

A: There have definitely been more instances of buyers looking to rent in order to make themselves chain free for their onward purchase, but supply of properties to rent is often as hard to find as supply of properties to buy.

Q: Would be interested to learn more about EPC requirements.

A: Although we don’t have the draft legislation yet, we expect new tenancies to be required to reach a minimum of a C rating from 2025, and for all existing tenancies to reach a C rating by 2028. We asked for this timing to be delayed but don’t know if they will amend the timings at all. There will be exemptions, which we think might concern where a landlord has spent the cap on energy efficiency improvements, they won’t have to do anymore for at least 5 years. We wait to see what the cap will be; either £5,000 or £10,000. These improvements should be tax deductible. There are also some ‘green mortgages’ where you can achieve a better lending rate if you have a better energy rating.

Q: Where in your opinion are we currently with the cladding issues and where are we heading?

A: Cladding falls under The Consumer Protection Regulations and is classed as ‘material information,’ so anyone looking to rent or buy property should be told about any cladding and its fire safety risk before they make an offer to buy or to rent. National Trading Standards are launching a material information project in phases starting on 1st June with Part A. When they launch Part C (expected next year) it will mean that you have to include information about cladding in any advertisement or property brochure.