The Renters' Rights Act was meant to settle in quietly. Judging by today's numbers, you and every other landlord are checking tenants harder, holding rents and squinting at your EPC.
The lead: one in four landlords are turning more tenants down
If you've got choosier about who you let to, you're not alone. Goodlord's early State of the Industry findings, as reported by Landlord Today, say 26% of landlords are more likely to turn down applicants they'd once have accepted, and 31% would rather leave a home empty than take a higher-risk tenant. Agents feel it too: 51% are more cautious about recommending applicants than a year ago. The survey covered 3,000 agents, landlords and tenants.
The reason isn't a mystery. With Section 21 gone, rent in advance banned and bidding wars off the table, a bad tenancy is harder to end. So the checks at the start matter more.
Being careful makes sense. But an empty month costs you a month's rent, and a stricter screen can turn away a good tenant with an unusual income, like a student, someone self-employed or someone new to the UK. Goodlord, which sells referencing tools to agents, publishes the full report next Thursday.
If an agent finds your tenants, ask how they reference applicants and what happens if one falls through. Check your agreement for who pays for what.
Half of landlords held the rent last year
If you didn't put the rent up this year, you're in good company. The Dispute Service Group (TDS) surveyed more than 2,000 private landlords in England, and Landlord Today reports that 50% made no increase in the last 12 months, up from 39% a year earlier. Most wanted to keep a good tenant (47%) or knew their tenant was stretched (44%). 26% had a tenant in arrears, down from 29%.
One detail worth knowing: landlords who use an agent were more likely to raise rent. That may be because bigger landlords, who raised rents more often, are also more likely to use one.
Holding the rent is a fair trade for a tenant who pays and stays. It also means every other cost bites harder. If your agent charges a percentage of rent, that fee is the one cost you can easily compare.
Could your rental reach EPC C?
About 161,000 private rentals can't reach band C even with every upgrade on their certificate, according to Houseprice.AI analysis of the EPC register reported by Landlord Today. That's one in eleven. 53% of private lets sit below C today, and about 55,000 are rated F or G, which is already below the legal minimum of E for letting.
The deadline is 1 October 2030. The government's response to the consultation caps what you're expected to spend at £10,000 per property, and an exemption lasts 10 years. Before you price up a heat pump, look up your current rating and read the recommendations on your certificate.
Quick hits
- Mortgages: if your fix ends soon, rates have moved. Broker Fox Davidson's 23 October update quotes Moneyfacts averages of 5.93% for a two-year fix and 5.95% for a five-year in early October, up from 5.59% and 5.63% a month before. These are residential averages, not buy-to-let. The Bank of England decides on 5 November, and the broker reckons much of an expected rise is already priced in.
- Rents: Letting Agent Today reports that prime London rents are rising at their fastest pace in 18 months, according to LonRes. Unless you let in prime London, yesterday's Propertymark figures, with rents down in 9 of 11 regions, are probably closer to home.
- Mood: per Landlord Today, 81% of landlords with six or more properties feel pessimistic, against 63% of those with one. Overall, 69% are pessimistic, down from 78% last year. If you have one or two homes, you're among the calmer ones.
Number of the day: £1,060
That's the yearly gap in your tenant's heating, hot water and lighting bills between a band E and a band C home of the same size (about £2,080 against £1,020 at today's price cap), per Houseprice.AI figures reported by Landlord Today. It isn't your bill, but tenants notice it, and it can decide how quickly your home lets.