Welcome to our Autumn Newsletter 2024
Landlord Broadband welcomes you to the latest edition of our quarterly newsletter. We hope that you enjoy it. If the latest industry news, customer market updates, and new content interests you, then read on. Want more? You can check out our previous newsletter here.
Latest News
Blue Bricks Award
We were honoured to be nominated for Service Provider of the Year at the at the Blue Bricks Awards 2024. As well as being nominated we also sponsored the Blue Bricks Co-Living award. This winner was Chester Homeshare and we believe it was very well deserved. Below is a photo of our CEO (Andy Simpson) presenting the award.
NRLA national Conference 2024
We are really excited to be attending the 2024 Landlord Conference on the 6th of November at the NEC Birmingham. We are looking forward to meeting lots of new landlords and our existing customers. We will also be going to Scottish Letting Day on Tuesday 19 November 2024 at Scottish Gas Murrayfield Stadium, Edinburgh.
NRLA magazine advert
Please check our latest article featured on the NRLA website. Read the article here.
Industry News
Legal
Some key points from the Renters’ Rights Bill which was published on the 11 of September 2024:
- Abolish fixed term tenancies, tenancies last no longer than a month and need two months notice.
- Landlords are banned from discriminating against tenants receiving benefits or with children.
- Section 21 says that notices served before the commencement date will continue to be valid until they expire.
- Ground 4A means HMO’s let entirely to students allow landlords to regain possession of HMOs in line with the academic year.
- A ban on rental bidding wars
- Rent rises in tenancy limited to once a year and tenants must be given 2 months notice.
- Decent Homes Standard is to be introduced into the private rented sector, landlords must also make homes safe
- For issues between landlords and tenants a new service will be set up to provide a fair and binding resolution without the need to go to court.
Finance
For the first time in four years, the Bank of England has reduced its base interest rate, lowering it from 5.25% to 5.0%. This change brings welcome relief to landlords, as it translates to reduced mortgage costs and potentially boosts property values due to increased demand. With cheaper borrowing, competition in the property market is likely to intensify, driving up property valuations and creating more favorable financial conditions. However, landlords must approach this with strategic planning. While the prospect of higher rents may be tempting, maintaining a balance between tenant affordability and minimizing vacancy rates is crucial to long-term success. Staying informed about market shifts and adjusting rental strategies accordingly will ensure landlords can capitalize on these evolving conditions without risking tenant turnover or financial instability.
Technology
Research from software company Capterra reveals that 73% of tenants worldwide believe advanced technology in a property would significantly influence their decision to rent. Despite this, 44% of UK landlords are missing out by not offering convenient tech solutions, such as remote management apps. Tenants are particularly interested in features like remote security systems (35%), smart energy management (34%), and smart locks (34%). By adopting these technologies, landlords can enhance the appeal of their properties, increase tenant satisfaction, and stand out in a competitive rental market.
Customer Markets
Landlords
The National Residential Landlords Association was formed in 2020 through the merging of two major landlord organizations ins the UK the National Landlord’s Association (NLA) and the Residential Landlords Association (RLA). On Monday the 30th of September 2024 the National Residential Landlords Association rebranded aiming to “Champion a responsible private-rented sector”. The rebranding also includes modernising the logo and the brand colours green and black have been changed to orange and navy blue. The National Residential Landlords Association currently exceeds 110000 members in the UK and collectively manages more than 1.8 million properties. This makes it the largest organisation of its kind in the UK, offering guidance, support, and lobbying on behalf of private landlords. Members of the NRLA receive access to various services such as legal advice, document templates, discounts on landlord-related products, and tax advice. These benefits help landlords manage their properties efficiently and legally.
Build to Rent
Despite rising taxes and tighter regulations, landlords remain committed to buy-to-let due to strong long-term rental demand, with 60% citing it as a key reason to grow their portfolios. Over half see property as a way to supplement retirement income, while 47% are motivated by the potential for capital appreciation. A significant 34% prefer property over other investments due to its tangible nature and stability, while many also view it as a long-term wealth-building tool and a means of leaving an inheritance. Emotional factors also play a role, as 39% of landlords entered the market by accident, and 43% were influenced by friends and family. Together, these financial and personal motivations help explain why landlords stay in the market despite the increasing challenges.
PBSA
The rise in student clearing placements in 2024 presents a promising opportunity for landlords, especially those invested in purpose-built student accommodation (PBSA). According to AREA, clearing figures surged in 2023, with 8,140 18-year-olds securing university places through clearing—a 15% increase from the previous year. This trend reflects a growing reliance on clearing, with 10% of total student applicants gaining their spots through this route. As more students outperform expected grades and aim for higher-ranked universities via clearing, demand for last-minute accommodation is set to rise.
For landlords, this surge in late bookings is a significant advantage. PBSA operators, in particular, can meet the needs of students looking for immediate, flexible housing options, driving up occupancy rates. With clearing students often willing to pay a premium for well-located, high-quality accommodation, landlords can benefit from higher rental yields during the crucial post-clearing period. This trend offers an excellent chance to maximize returns, especially as competition for quality student accommodation intensifies. As clearing becomes a more integral part of the admissions process, landlords who position their properties to cater to this influx stand to benefit from both short-term profits and long-term stability in the student rental market.
Serviced Accommodation
Starting in the summer of 2026, tenants renting an Airbnb or other short-term accommodation in Edinburgh will likely face a nightly tourist tax—a 5% levy that landlords must collect. Edinburgh councilors have approved the tax, which is expected to generate up to £50 million annually for city improvements. While the tax will apply to hotels, B&Bs, and self-catering accommodations as anticipated, its extension to rentals through platforms like Airbnb has sparked controversy. This autumn, a 12-week consultation will give residents the opportunity to weigh in on whether the proposed 5% rate should be adjusted. Supporters argue that the tax will bring Edinburgh in line with cities like Amsterdam, Berlin, and New York, while critics warn it could deter visitors and create challenges for some short-term rental operators.
Social Housing
Amid a challenging market, a major national landlord, Home Group, has bucked the trend with an impressive 17% increase in housing completions. Despite rising costs impacting its surplus, Home Group managed to deliver nearly 20% more homes, highlighting its resilience and strategic approach. Over the past year, the group completed 760 affordable and social rental properties, 156 shared ownership homes, 136 homes for outright sale, and 232 units through joint ventures. This growth underscores the importance of strong partnerships with contractors and collaborators, which helped ensure the timely delivery of projects despite escalating construction costs. However, Home Group acknowledges that these rising expenses remain a significant hurdle for future developments, making cost management and strategic planning more critical than ever in maintaining momentum.
We hope you enjoyed this latest edition of our quarterly newsletter. We hope to see you next season!
If you would like to know how Landlord Broadband can help you:
Email us at customer.services@landlordbroadband.com
Call 0333 577 0600