Across the capital, tenant demand has remained strong compared to previous years. As a result the rate of annual rental growth has stayed persistently high in Q2.
Activity continues to be constrained by low volumes of stock coming to market and prices will no doubt greatly increase as international students flood back to the market looking for 1 & 2 bedrooms before the new term starts in August/September. The majority of tenants are renewing due to the lack of supply and with the Retail Price Index currently at 11.4% rents are increasing.
We continue to have a huge number of applicants and relocation companies on our books looking for properties from 1 to 7 bedrooms. If you have been considering letting out your property now is the time, contact us today for a free market appraisal.
In legislative news the big talking point over the past three months has been The Renter’s Reform Bill which was reintroduced to Parliament in May 2023 after first being promised back in 2019. It aims to deliver a “fairer private rented sector for tenants and landlords”.
The main headlines from the Bill are:
Abolish section 21 ‘no fault’ evictions and fixed term tenancies. Tenants with an assured tenancy or assured shorthold tenancy will move to a periodic tenancy. Tenants will need to provide two months’ notice when leaving a tenancy. Landlords will need a reasonable circumstance in order to evict a tenant.
Strengthen the grounds on which landlords can gain possession of the property. These will include if a landlord wishes to sell the property or if they or a close family member wants to move in. If a tenant has been in at least two months’ rent arrears, three times, within the previous three years, landlords will also be able to evict them. There will also be changes to make it easier to repossess a property in cases of anti-social behaviour.
Landlords will be able to raise rents annually to market levels but must provide two months’ notice of any change, rather than one month as is currently the case. Tenants will be able to challenge above-market rent increases through the First-tier Tribunal (Property Chamber), to prevent unreasonable rent increases being used to force tenants to vacate a property.
All landlords will be required to join a new Private Rented Sector Ombudsman. The government is saying this will provide impartial and binding resolutions to many disputes and prove quicker, cheaper, and less adversarial than the court system.
A digital Privately Rented Property Portal will be set up to help landlords understand their legal obligations and demonstrate compliance and to ensure tenants understand the terms of their tenancy agreement. Landlords will be required to sign up and register all properties they let out.
Tenants will have the right to request a pet in the property, which a landlord cannot unreasonably refuse although they will be able to insist on pet insurance to cover any damage.
It is important to know that nothing has changed at this stage. It could take up to a year for the introduction of the Renters Reform Bill to be passed. Measures contained in the Bill will need to overcome the normal legislative hurdles, requiring Parliamentary time. During the progress of the Bill, it will be subject to amendments and whilst it is understandable that many landlords will be concerned by the abolishment of Section 21 it is not as bad as feared, though the process itself will change, the number of grounds that landlords can use to get their property back will actually increase.
As Plaza Estates is a Propertymark member, we will be updated by the professional body and closely monitor market trends and legislative developments. We remain committed to providing our clients with accurate and up-to-date information to navigate the evolving landscape effectively. We will continue to make the seemingly difficult, simple.
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Fraser Gregory
I started my career in 2008 at one of the largest agencies in the UK before taking the leap into the independent agency sector. I joined Plaza in 2012 and I’ve never looked back. Being part of a boutique family owned agency has been such a rewarding experience allowing me to be involved in every aspect of the lettings process. I have developed my skill and knowledge over the years by successfully passing the NFOPP Technical Award in Residential Lettings and Property Management. A nationally recognised qualification of Propertymark; The National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (ARLA) I’m proud to be part of a company that has been involved in the community for nearly 50 years.
If you want 5-star reviews and want to remove negative reviews from Google, contact me via my profile; my contact details are listed there.
SM
Dear Eitan
In this whole sorry saga, with headbutting, unproactive lawyers, and a comatose estate agent etc etc, you have been a beacon of light throughout. Efficient, professional and responsive. This would never have got done without you.
Thank you.
All the best.
Maurice Shasha
We have been using Plaza Estates for many years for all our property requirements (sales, letting and management) and are delighted with the results and service they constantly deliver and provide!
KS
I generally dealt with the Marble Arch branch most of the time, but I can also say that the Knightsbridge office was also exceptionally helpful and professional on the occasions I did deal with them. Plaza Estates in general are excellent.
YZ
Have interacted with Plaza Estates across a couple of sites and always been impressed. Maurice must be the hardest working, most dedicated, helpful and knowledgeable account manager for any company anywhere! A real asset to the team!
LI
I have been a client of Plaza Estates for over 30 years and received excellent service. Both Rodney on the rental side and Fiona in the property management area have been have been attentive and helpful and always willing to go the extra mile on the few occasions when there were problems.
SA
Hope both of you are doing well. I wanted to thank you for always being there for us and for addressing our concerns promptly; safe to say you have been the best agents I have had the pleasure of interacting with.
KR
We have owned our Flat since 2008, which we purchased through Plaza. Our relationship with Plaza goes back to 1982 when we purchased a nearby flat and Plaza have handled all our lettings since then. I would have no hesitation in recommending Plaza - they will find you a good tenant and ensure your ...
MS
Thank you again for all your advice and calm attitude and charm. Nobody could try harder than you, and for which, we really thank you and appreciate it all, not just now, but over the years.
Thanks again for everything!
LT
Thank you for your kind help and your advice, it's been precious!
