In Focus (2023 Qtr 4): Adaptations & leaseholder issues
Introduction
This 2023 Quarter 4 consultation asked landlords to comment on a range of topics:
- Landlord confidence and their views of the Private Rented Sector (PRS).
- Property adaptations and landlord awareness of a growing demand.
- Leaseholder reforms and legislation.
- Rent to rent agreements - landlords were invited to share experiences.
Over 700 landlords (713) took part in this consultation. The consultation was an on-line survey, which was conducted between 7th December 2023 and 9th January 2024.
2023 Qtr 4 In Focus: Adaptations & leaseholder issues
Landlord confidence
Landlord confidence continued to move upwards in Quarter 4, landlords had a more positive outlook during the second half of the year than the first.Quarter 4 saw the highest confidence score recorded in the last six quarters.
Over the year as a whole, confidence rose most strongly in Wales - reflecting the low levels experienced at the start of the year in the confusion that followed the implementation of the Renting (Homes) Wales Act.
This section of the report looks at the drivers of confidence. The consultation also presents some evidence that the PRS may be beginning to reach a new equilibrium after a period of instability.
Adaptations
Population data indicate a significant demographic shift is taking place: According to ONS data, UK residents aged 65 years and over, will make up 24% of the total population by 2043.The PRS is already home to a wide range of tenants, including individuals with disabilities and older renters who require adapted properties, and this is likely to increase.
Yet, just 7% of landlords have properties with adaptations in their portfolio. Why? Quite simply they lack awareness of the demand for such property.
The report delves into this market failure (supply not meeting market demand) more deeply. How landlords could be persuaded to make adaptations are also explored.
Leaseholder reform
The Leasehold and Freehold Reform Bill will apply in both England & Wales. Almost one third of landlords who let leasehold properties typically pay ground rents of over £100pa and annual rents of £250+ are not uncommon.
The Government launched a consultation seeking views on options to restrict ground rents for existing leaseholders. The NRLA response to that consultation was part-based on the responses of landlords collected for this report.The experiences of landlords attempting to renew or buy freeholds are shared by landlords.
Rent-to-rent agreements
Many landlords offer property to let through a third party via a Rent to Rent agreement, often known as Guaranteed Rent agreements.
These agreements offer landlords a guaranteed income, irrespective of the presence of tenants.However the NRLA are aware of agreements which turn sour for a landlord.
This consultation invited landlords to share their experience of these agreements - when do they work...and when don't they.
2023 Qtr 4 In Focus: Adaptations & leaseholder issues
