Written By Em

The proportion of homes bought by landlords dropped to a nine-year low of just 12.5% last year, as tax changes deter many from investing in property, reports Countrywide in its latest monthly lettings index.

Between 2016-17, the proportion of homes sold to landlords fell in every region – nowhere more so than in London, where 5,400 fewer properties were bought by a landlord year-on-year.

The declining volume of landlord purchases has caused the number of homes on the rental market to drop.

In December 2017, there were 4% fewer homes to let across Great Britain than in the same month of 2016, with London recording a 21% decrease – the highest of any region.

Although 2016’s Stamp Duty hike induced a fall in stock, there were 5% more homes available to let than there were two years ago. However, in London, the number of homes on the market has fallen by a third.

The decline in the number of investors in the buy-to-let sector comes despite the fact that rental growth across Great Britain picked up in 2017.

Last year, rents rose by an average of 2.4% – up on 2016’s rate of 1.8%. The average rent price ended the year at £960 per month – up by £23 on the start of 2017. While rents rose a third faster than they did in 2016, rent price growth was still behind the 3.2% recorded in both 2015 and 2014.

Unsurprisingly, given the higher taxes that they now face, 46% of landlords increased their rent price when re-letting a property last year – up from 37% in 2016.

London had the fastest rate of rent price growth in England last year, rising by an average of 3.2%. However, it was Scotland, at an average of 3.3%, that had the fastest rate of rent price growth in Great Britain.

Johnny Morris, the Research Director of Countrywide, comments: “Last year saw the rate of rental growth pick up to get closer to its long-term average. Most of the rise comes from a pickup in rental growth in London, after falls in 2016. Rents rose across every region of Great Britain last year, although the north of England saw rents rise at a slower rate than they did in 2016.

“Rental growth has been supported by a fall in the number of homes on the rental market, with the biggest fall in London. It looks like increased competition between tenants for rental homes will drive faster rental growth in 2018.”

Councils have approved new powers to tackle rogue landlords in West Suffolk, following a joint cabinet meeting of Forest Heath and St Edmundsbury this week.

The councils want to deter rogue landlords in West Suffolk who have unscrupulously left tenants living in appalling conditions from operating, but it has been acknowledged that the vast majority of West Suffolk landlords provide a great service.

Councillor Sara Mildmay-White, the Lead Member for Housing for both Forest Heath and St Edmundsbury, says: “West Suffolk landlords are in the main excellent, providing decent, well-maintained homes, and we are keen to work with and support them.”

At Monday’s council meeting, councillors agreed to begin consultation and engagement on new enforcement routes available via the Housing and Planning Act 2016, which will enable the authorities to fine people, issue rent repayment orders and banning orders as an alternative to taking a prosecution.

Mildmay-White adds: “[There are] a small minority of irresponsible rogue landlords who knowingly rent out accommodation that is unlicensed, substandard and/or unsafe, and for whom the current sanctions are not a sufficient deterrent.”

The councillor also believes that tenants have an important role to play in terms of knowing their rights and working with their landlords.

She explains: “We are developing this policy with local landlords, tenants and interest groups, including neighbouring councils, and the landlords association. It is important that we understand the issues and raise awareness of the role of the Public Health and Housing Service.

“The councils work closely with partner services and organisations to support the needs of the vulnerable people in their homes and to protect the wider community, and there will be consultation direct with key groups on a proportionate fine structure dependent on the severity of non-compliance with the offences.”

Rogue landlords in West Suffolk, we urge you to stick to the law and look out for the new penalties.