With a thriving rental market, 2024 looks to be a great year for landlords. However, with the upcoming Renters (Reform) Bill, it's become even more important to keep up to date with the latest influences affecting your let.
With that in mind, here's what you should pay close attention to in 2024.
Rental income
Average rents hit yet another high at the end of 2023 - their 15th consecutive growth - and, according to Rightmove and Zoopla, this shows no sign of slowing next year. Zoopla even suggests that monthly rent will gradually surpass wages next year as demand for properties drives up asking rents.
What does this mean for landlords?
In spite of the legislative changes on the horizon (which we’ll look into later), 2024 should be a lucrative year for landlords. With the highest ever asking rents and no shortage of prospective tenants, with the right letting agent on your side, landlords should make a considerable return from their rental properties next year.
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Rental yields
As property prices decrease and rents increase, it stands to reason that there may be a slight growth in rental yields in 2024, according to Rightmove.
What does this mean for landlords?
If you’re looking to expand your portfolio, 2024 may be a good year to actively look for the right investment. When you work with us, we’ll make sure you’re the first to know about new properties within your budget
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Demand for new rental properties
In Q3 2023, there were an average of 25 applicants for each rental property and this trend shows no sign of slowing. High mortgage rates and fewer properties available to rent will continue to drive demand.
What does this mean for landlords?
With the best choice of tenants, landlords should think carefully about who to let their property to. When you work with our letting agents, we’ll fully reference prospective tenants to give you every assurance that your property will be in safe hands.
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The Renters (Reform) Bill is set to pass (but will it?)
The Renters (Reform) Bill will be finalised in 2024. Although the abolition of Section 21 has been postponed until details of the court reform are known, other crucial aspects of the Bill are set to come into law next year, including:
The institution of periodic tenancies as standard
Stricter regulations stopping landlords from discriminating against families, pet owners, and those on DSS
Changing standards for decent homes.
What does this mean for landlords?
With an impending General Election, there is still no guarantee the Bill will be turned into law next year. Even if it is, there will be a grace period for existing tenancies.
With so much uncertainty, the only way landlords can ensure they are protected is to work with a letting agent. After all, the law is changing all the time. In a recent Uswitch survey, two-thirds of landlords are considering a switch to a managed let. Out of these, a third cited no longer having to deal with legislative changes as their main reason for the switch.
When you work with us, you can be assured that whatever happens with the Bill, your lets will always be compliant. Book your free compliance call today with your local branch for help with understanding your next steps.
*Data supplied by Zoopla and Rightmove Rental Trends Tracker Q3 2023.
