UK LANDLORDSLandlords’ uncertainty is borne from convoluted legislation. After being initially wooed by the Government with tax breaks and easy lending to facilitate the lack of state funded rental stock, landlords now find themselves ghosted as all their tax breaks and powers over their property (section 21) and who stays there (pets) are removed. This along with hefty renovation costs to adhere to new EPC ratings of C and above by 2025-28 means it all feels like too much work for the money, so they are abandoning ship. That said, as a result of this exodus driving up rents, other landlords are getting on board, investing in properties with little to no work required whilst tying tenants to ASTs that average two years – securing a good return when the world around looks uncertain.


As for renters, their uncertainty lies in affordability. Rents in the UK increased on average 3.2pc over the course of the year to July. Those who were turfed out when a rent increase wasn’t achievable, are now finding they can’t afford anything similar in the same area. To secure a space, renters are now wildly overbidding on the remaining properties that become available before they’ve even hit the market, in an attempt for certainty.


For those stuck in blocks wrapped in combustible cladding, the past five years of uncertainty has taken its toll. Physically and mentally, they are trapped, as well as financially. Until July this year, mortgage lenders forced the majority of borrowers onto variable rate mortgages, further crippling their finances after extortionate service charges, waking watch and remedial bills had been itemised. Michael Gove who was Secretary of State for Levelling Up, Housing and Communities for almost a full 10 months, managed to secure 47 signatures to make the developers pay for remedial works on buildings 11-18m, but discussions recently stalled over details and lack of leadership. Until a new PM is elected on 5 September, further uncertainty will keep cladding victims up at night.


The underlying uncertainty we face though doesn’t simply originate here in the UK but in Ukraine. The longer the war rages on the more protracted any recovery will be. Also, even if it does end in the next few months, are we suddenly going to kiss and make up with Russia overnight? Unlikely. This is all going to take time and for many impatient to get on with their lives, now is time for action.

Link to article here – Property Reporter Article