It seems that new regulations relating to energy efficiency of rented properties are creating shockwaves among landlords, such that many are selling up and cashing in. Supply of rental stock has plunged by 50% and consequently rental costs are soaring – up by as much as 15% since 2020.
Source: Rightmove, the chart shows the year on year rent increase in different parts of the UK.
At PLG we are 100% behind the need for energy efficient homes in a time when fuel costs are soaring and when many of our clients require warm homes 24/7, we understand and endorse the need for ensuring homes can be run as efficiently as possible. But this has come at a price. The cost for landlords of ensuring homes are energy efficient is immense, some estimates put is as high as £10 billion. So many landlords are cutting their losses and getting out of the market altogether, hence the shortage of rentals around.
We know that a rental property provides a vital bridge on the way between what is often wholly unsuitable housing for our clients and their forever home. It’s a place where they can start to feel the benefits of space, care and therapy, of real accessibility. But suitable properties are already hard to find and this crisis is likely to make them harder still. In a market place that is already highly competitive, good rentals are being snapped up simply because there are fewer of them. Source: ONS, The UK annual private rental price growth rose to 2.3% in the 12 months to February 2022. Index of Private Housing Rental Prices percentage change over 12 months, UK and London, January 2016 to February 2022 Many of our clients are in a good position to put down deposits quickly and offer a secure rental stream, but even so, in today’s climate, beating the other would-be tenants is becoming a greater challenge simply because there are a lot more people after each rental property that becomes available.
This is why PLG’s property search team of former estate agents gives us an edge in securing that golden nugget of a property that has become almost impossible to find.
We trust our ability to work with other professionals in the industry and we have an excellent track record for engaging with landlords directly. We know that we can work smartly for our clients. So we are positioning ourselves to the best advantage for our clients.
But we also know that when there is a distinct shortage of properties as we are witnessing now it is likely to prove a challenge to all those who seek properties to rent. And this doesn’t look like an issue that is going to go away anytime soon. Until then we’ll be doing what we do best. Thinking outside the box and working unbelievably hard to ensure that we can find the best possible properties for our clients.
”I have been able to do things i haven’t been able to do in years. The new house is wonderful, we are living the dream for real” Mr L, Client.