UK Rental Sector Braces for Major Changes as Landlords and Agents Prepare for New Regulations
The UK's rental sector faces significant changes, with landlords and letting agents expressing concerns and preparing for new regulations. The Renters' Rights Bill (RRB) and energy efficiency targets are set to reshape the industry.
The upcoming EPC Band C target has sparked unease among landlords, with 63% viewing it negatively due to compliance costs. Meanwhile, only 19% of letting agencies anticipate team growth in the coming year, suggesting a cautious approach to expansion.
The RRB's abolition of fixed-term contracts is expected to disrupt letting agencies' revenue streams. Only 4% of sole-operator agencies feel very prepared for the incoming changes, and larger agencies with 11 or more staff show mixed readiness, with 47% stating they are prepared. Tenancy renewals currently contribute significantly to income, averaging 27% and reaching 37% in London, highlighting the potential impact of the RRB.
Landlords are divided on their response to energy efficiency targets. While 39% prefer to sell rather than upgrade properties, 45% are willing to invest up to £2,000 per property, and only 19% are prepared to spend over £5,000. Letting agents, on the other hand, are focusing on attracting new landlords (70%) and generating fresh revenue streams (61%).
The rental sector braces for change, with landlords and letting agents grappling with energy efficiency targets and the RRB's impact on revenue. While preparedness varies, the industry is actively considering strategies to adapt to the incoming regulations.
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