The property news this week
By Andrea Wong, 08 March 2018
It has been another busy week in the world of property with more good news for the Private Rented Sector. Here is a roundup of the latest stories…
Growing number of landlords
The latest analysis from HMRC has revealed that many people have given up on banks and building societies as they are delivering dismal returns. Instead they are turning to buy-to-let investments to supplement their income with UK property continuing to deliver fantastic returns.
The number of private landlords has been increasing by more than 100,000 per year since 2011/12 with 1.9 million people having earned an income from property in 2015/16. Income from property has increased £4.1bn in the last four years, reaching £16.2bn.
Energy Efficiency rules
It is worth reminding landlords that we are only a few weeks away from the new legislation which will ensure that all rental properties have a minimum energy performance certificate (EPC) rating of E or above.
Councils will have the power to impose fines of up to £5,000 if landlords do not make the necessary change and their property energy rating is still below the required standard. The new rules that will come in on 1st of April will cover all new lets and renewals and will apply to existing tenancies as of 1st April 2020.
Northern cities identified as hotspots
Manchester, Leeds and Liverpool have all been identified as global property investment hotspots, offering some of the best returns in the property market. Manchester is occupying top spot with rental yields of 5.6% and house prices having increased 8.6% from 2016 to 2017. Rent prices have been predicted to increase 16.5% from 2018 to 2022, which makes it an fantastic location for property investment right now.
Liverpool is also up there as one of the best performing cities with average rental yields at 6.2%. Property prices in the city have risen 14% since 2015 and rents are predicted to grow 17.6% from 2018 to 2021, making it one of the UK’s top buy-to-let hotspots.
New data from Knight Frank indicates a healthy rental market in prime central London
New data reveals a lack of knowledge surrounding current deposit protection laws
It is important to be up to date with current legislation in the rental sector - are you aware of the latest regulations?
A new bill is set to pass through Parliament which will give tenants greater rights when it comes to hazardous homes
The tenancy deposit cap has been reduced to five weeks rent