What should the lettings market expect from 2020?

What should the lettings market expect from 2020?

The UK lettings market in 2019 has been a challenging year for all. We saw the introduction of the Tenant Fees Act, numerous other legislative changes and an outflow of private landlords resulting in a significant shortage of new instructions, with supply not even close to meeting the demand. This imbalance is not anticipated to change.

Rents to rise further

The Royal Institution of Chartered Surveyors (RICS) predict rental increases at a faster pace in 2020 as the sector continues to struggle with a lack of supply and ever-changing legislation. Sam Arfield, Lettings Manager at Cameron King agrees, “The RICS is suggesting increases of 3% for landlords this year alone, which is considerable when you think that rents have increased by only 7% since 2015. This is good news for existing landlords, however it has come off the back of a number of landlords selling their portfolio and leaving the private rental market. Sam Arfield adds “Supply is definitely low, and properties are letting as soon as they come on the market, particularly around areas close to Burnham and Slough stations, and around Slough trading estate and Wexham Park hospital.”

Legislation changes for 2020

2020 is expecting to see more legislative changes with landlords no longer being permitted to deduct mortgage interest from taxable profits. This has been phased out over the past few years and will be fully enforced by April.

April will also see a change to EPC ratings where properties will need to show a minimum energy efficiency rating of at least and ‘E’ and as such, works may be required to bring the properties up to standard prior to letting. There are other expected changes, currently with no set roll-out dates, which include mandatory five-year electrical system checks for residential rental properties and rent controls in London.

“Legislation can be a bit of a minefield”. Sam Arfield adds, “however, at Cameron King we pride ourselves on keeping on top of the changes so that our landlords do not have to, giving peace of mind on top of the usual excellent service”.

If you are considering letting your property, do not hesitate to contact the team on 01628 667442 for bespoke advice and support.