Spooky season is coming. But forgetting Halloween for a moment, other things might be frightening you as a landlord in the current market. From the state of the sector to new compliance requirements and mortgage costs, it’s no surprise you might want to just hide behind the sofa until such threats have disappeared. But fear not. We are here to help guide you.
New compliance obligations
Following the first implementation of the Renters’ Rights Act in May, the next phase begins with the launch of the Private Rented Sector Database, with the initial rollout starting in the West Midlands from December 15. The government seems to have rebranded this currently – calling it ‘a new and simple register your rental property service’.
Whether the revised title is less scary or not, the new obligation will require landlords to register their details and those of their property. The information provided will be used by local councils to monitor property standards and landlord compliance. Landlords must register and pay a £65 fee annually. Regions will be added on the 15th of each month, including the South East on 15 March and London from 15 July. Landlords have three months to register after their area is called forward.
Right to Rent checks have also been updated since October 1, with changes to digital verification service provider (DVSP) requirements and their expanded role, an amended list of acceptable documents, a revamp of the guidance and updates to notifications for the scheme among other changes.
Rising mortgage costs
If you need to refinance any of your rental properties or are looking to expand your property portfolio, mortgage costs may also be worrying you. Although the Monetary Policy Committee held interest rates in September, they are widely expected to rise before the end of the year – with four rises also predicted for next year.
Such market expectations have already begun pushing rates up, with five-year rates hitting 6% for the first time in three years in early October for homeowners. Naturally, buy-to-let rates are higher still. Homeowners and those looking to buy are being urged to examine their options and lock in rates as soon as possible. However, it could prompt some first-time buyers to hold off from buying, possibly continuing to rent until stability returns.
An interest rate rise will also impact other landlord costs, such as maintenance and repairs. This will further squeeze margins even as rents continue to rise, making it even more important to keep your property management and budgeting under control.
The threats are, sadly, real, but we are here to help and advise you to make it all a little less frightening. Proctors is an independent network of individual estate agent businesses with branches in Beckenham, Bromley, Park Langley, Petts Wood, Shirley and West Wickham. We’ve been buying, selling and letting in these areas since 1946. Get in touch to find out how we can help you with your property requirements.