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Category: property market
As the nation was emerging from COVID-19 lockdowns, the government surveyed tenants in the Private Rental Sector (PRS) to study how satisfied they were with their accommodation.
The 2022/2023 English Housing Survey showed that the vast majority of people privately renting property from landlords were satisfied with the state of their home, thanks to reliable and attentive landlords. The results of the survey were published last week.
82% of responders answered positively, saying they were happy with the deals that they had with their landlords. This statistic runs in stark contrast to the negative narrative promoted by pro-tenant organisations that renters are living in misery and oppression under tyrannical landlords.
Some overdue good news for landlords
With Labour’s victory in the General Election leaving many landlords uncertain about the future, particularly with regard to legislative changes that could negatively affect their livelihoods, many landlords have been holding out for some more uplifting news.
Although the survey itself is not especially recent, the results indicate a more positive trend in landlord-tenant relationships that is not often reflected on social media or in mainstream news.
What may also be interesting to consider is how the current political climate may affect future survey results. Some big changes are expected, thanks to the new government’s pledges to reform the property sector.
Changes on the horizon
UK rents are set to rise in the next year, as reported by the Office for National Statistics. London, predictably, is the region expected to experience the highest rent inflation. This has been an ongoing trend since the COVID-19 lockdowns, during which London rents decreased.
Rent rises have been driven by a number of factors, including buy to let mortgage rate increases, higher tax costs for landlords and concerning numbers of landlords leaving the sector as a result.
The Base Rate is due to be voted on in August. Whether the Bank of England intend to cut it by 0.25% or maintain it at the same level has been hotly debated by industry experts. If there is a cut, it is not expected to be by much, so mortgage rates and thus rents are not expected to see radical change.
Difficulties with the court system have prevented Labour from rushing their plan to remove Section 21. Some industry experts have recently predicted that Labour will prioritise fast-tracking this process over reforming the courts that are preventing them from rushing it in the first place.
We have covered Labour’s zig-zagging position on Section 21 extensively and it is widely understood that removing landlords’ ability to evict tenants without stating fault will make their lives much harder.
It’s possible that the power balance tipping towards tenants’ favour may further improve tenants’ appraisals of their landlords, but landlords are looking for more support as they struggle with increased costs and tightening legislation.
Though another English Housing Survey may be a while away, we will keep monitoring for any updates about landlord-tenant relations and the factors that could affect them.
