Latest news with #Renters'RightsBill
Yahoo
6 hours ago
- Business
- Yahoo
‘Not enough' landlords to cater to students and immigrants, Paragon boss warns
There are 'not enough' landlords in the UK to cater to population growth, student towns, and rising immigration, the boss of buy-to-let lender Paragon Bank (PAG.L) has warned. High demand among tenants versus a lack of available homes is pushing up rental prices, Paragon's chief executive Nigel Terrington said. 'The broader issue is that there is probably, in reality, not enough landlords,' Mr Terrington told the PA news agency. 'Demand for rented property is very high – everywhere you go you hear there are 15, 20 people for every rented property that is available and, of course, that's pushing up rents.' He said the issue was 'broad based' with big UK cities like London being strained as well as student towns. 'The potential is that it gets worse from here because the UK population is expected to grow by another four million people by 2032, and it is largely going to come from immigration,' Mr Terrington told PA. 'Immigrants tend to come into the UK and will rent, rather than buy. 'So it puts more pressure on the rental market and therefore we need greater levels of landlord formation, rather than keeping it stable.' He said landlords, like other UK businesses, need 'certainty and clarity' following events such as Brexit, a new government, and interest rates being hiked. The remarks come as Paragon revealed new mortgage lending surged by a quarter over the six months to the end of March to £810 million, compared with the same period a year ago. Activity was buoyed by buyers taking advantage of more generous stamp duty relief before the April deadline. Mr Terrington also pointed to a wider shift from 'amateur' landlords to professional landlords, who tend to own more than five properties, which he said was 'playing into our hands' because of the lender's customer base. Paragon's pre-tax profit soared by nearly 27% to £140.1 million for the half-year. Meanwhile, the bank boss called on the Government to give landlords enough time to plan for the Renters' Rights Bill, which is currently going through Parliament. The proposed legislation seeks to introduce several measures including an end to no-fault evictions, stopping bidding wars for tenancies, helping tenants challenge unreasonable rent increases and preventing landlords from demanding more than a month's rent in advance from a new tenant. Mr Terrington said it would be 'crucial' to have an 'appropriate implementation period' for the potential new laws and that they are communicated sufficiently to both landlords and tenants. Sign in to access your portfolio
North Wales Chronicle
6 hours ago
- Business
- North Wales Chronicle
‘Not enough' landlords to cater to students and immigrants, Paragon boss warns
High demand among tenants versus a lack of available homes is pushing up rental prices, Paragon's chief executive Nigel Terrington said. 'The broader issue is that there is probably, in reality, not enough landlords,' Mr Terrington told the PA news agency. 'Demand for rented property is very high – everywhere you go you hear there are 15, 20 people for every rented property that is available and, of course, that's pushing up rents.' He said the issue was 'broad based' with big UK cities like London being strained as well as student towns. 'The potential is that it gets worse from here because the UK population is expected to grow by another four million people by 2032, and it is largely going to come from immigration,' Mr Terrington told PA. 'Immigrants tend to come into the UK and will rent, rather than buy. 'So it puts more pressure on the rental market and therefore we need greater levels of landlord formation, rather than keeping it stable.' He said landlords, like other UK businesses, need 'certainty and clarity' following events such as Brexit, a new government, and interest rates being hiked. The remarks come as Paragon revealed new mortgage lending surged by a quarter over the six months to the end of March to £810 million, compared with the same period a year ago. Activity was buoyed by buyers taking advantage of more generous stamp duty relief before the April deadline. Mr Terrington also pointed to a wider shift from 'amateur' landlords to professional landlords, who tend to own more than five properties, which he said was 'playing into our hands' because of the lender's customer base. Paragon's pre-tax profit soared by nearly 27% to £140.1 million for the half-year. Meanwhile, the bank boss called on the Government to give landlords enough time to plan for the Renters' Rights Bill, which is currently going through Parliament. The proposed legislation seeks to introduce several measures including an end to no-fault evictions, stopping bidding wars for tenancies, helping tenants challenge unreasonable rent increases and preventing landlords from demanding more than a month's rent in advance from a new tenant. Mr Terrington said it would be 'crucial' to have an 'appropriate implementation period' for the potential new laws and that they are communicated sufficiently to both landlords and tenants.
Metro
7 hours ago
- Business
- Metro
Nearly half of landlords plan to raise rents by £888 this year
Nearly half of buy-to-let landlords in Britain plan to increase the rent they charge because of the Renters' Rights Bill, research shows. The bill, brought in by Labour and set to come into force this year, means landlords will only be able to increase rents on their properties once per year. This increase would also be capped at the market rate – the price they would achieve if the property had been newly advertised for rent. But figures from housing lender Landbay found 44% of buy-to-let landlords will increase rents in response to the bill, by an average of 6%. This is well above the current level of inflation of 3.6%. This increase would add £74 to the average monthly rent, costing tenants an extra £888 per year. You can access completely fee-free mortgage advice with London & Country (L&C) Mortgages, a partner of Metro. Customers benefit from: – Award winning service from the UK's leading mortgage broker – Expert advisors on hand 7 days a week – Access to 1000s of mortgage deals from across the market Unlike many mortgage brokers, L&C won't charge you a fee for their advice. Find out how much you could borrow online Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. Plus, tenants can challenge rent increases at tribunal if they think they exceed market rate. Their research also found the vast majority of landlords (89%) plan to raise rents in the next year, with about 40% planning to increase rents by 3% or more. The figures come at a dire time for renters, as there are 1.7million tenants who are only one paycheque away from being homeless, Shelter says. Rob Stanton, sales and distribution director of Landbay, said: 'This sharp rise in rents in the short term shows the unintended consequence of this new regulation, as landlords look to act now and pre-emptively raise rents in fear of future cost implications or difficulties, and to protect their investments. 'By forcing the hand of landlords in this way, there is a real risk of worsening the cost of living crisis that so many private renters are currently facing. 'Any good and reasonable landlord will agree with protecting the rights of tenants, but they also believe that the rights of the property owner should be protected too. 'There's no doubt we need to balance reform with support and safeguards for landlords to make sure that the rental market continues to play the important role it does in the UK's housing mix. 'While we may not be able to influence government policy or regulation, our role as a BTL lender is to ensure our product range is competitive and delivers exactly what landlords need – whether that's for purchases or refinancing.' The Renters' Rights Bill is bringing in new protections and rights for the 11million people in England who privately rent. This will give tenants more rights – but landlords see the reforms as giving them less control over their properties. Critically the bill will also abolish Section 21 'no fault' evictions – but the National Residential Landlords Association has warned the courts will not be prepared to cope with the increase in demand. More Trending Landbay research found that 75% of landlords are concerned about the removal of Section 21 evictions and their ability to remove 'problem tenants'. The move raised fears tenants could be kicked out of their homes before the Section 21 ban comes into effect after 'veiled threats' made by landlords. The bill is currently being looked at by the House of Lords, and if it is given Royal Assent by the summer as planned it should come into force by the end of 2025. Other changes included in the Renters' Rights Bill include: Landlords can no longer ask tenants to pay more than one month plus a deposit equating to six weeks' worth of rent Ending fixed term tenancies Extending notice periods Allowing tenants to request a pet Restricting rent increases Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Rachel Reeves reveals £15,000,000,000 transport projects – here's what we know MORE: The 5 hidden legal red flags that could derail your property purchase MORE: The UK is 'sleepwalking into a bloody ambush and may not be around in 2034'
Yahoo
7 hours ago
- Business
- Yahoo
Rents to surge £900 to pay for Labour reforms
Are you a landlord planning to raise rents because of the reforms? Get in touch money@ Labour's rent reforms will add almost £900 a year to the average tenancy, a report has warned. Nearly half of Britain's buy-to-let landlords (44pc) plan to increase rents in response to the controversial Renters' Rights Bill, according to research by housing lender Landbay. The landmark legislation, due to kick in this autumn, will limit landlords to just one rent increase per year capped at the 'market rate' – the price that would be achieved if the property was newly advertised to let. Landbay said property owners were planning to increase rent by an average of 6pc, which would add £74 to the average monthly rent, or £888 a year. The survey also found that the majority of landlords (89pc) intended to raise rents in the next 12 months. More than a third (40pc) planned to increase rents by 3pc or more over the next 12 months, while over one in 10 (11pc) said they did not intend to put up rents at all. The Renters' Rights Bill will introduce new protections and rights for the 11 million private tenants in England by reforming the current system of renting. An end to fixed-term tenancies, longer notice periods, and restrictions on rent increases will give tenants more rights and landlords less control over how they manage their property and buy-to-let business. The bill is currently being scrutinised in the House of Lords. The Government aims for the reforms to receive Royal Assent by summer 2025, with implementation expected between October and December this year. The National Residential Landlords Association (NRLA) argued that the bill could force landlords out of the sector and push up rents if it is passed in its current form. Chris Norris, of the NRLA, said the 6pc rent increase figure was consistent with the NRLA's estimates that the Renters' Rights Bill would trigger rent rises of 3pc to 4pc above inflation. He added: '[The bill] is likely to affect tenants directly in many more ways than landlords. 'You have the prospect of tenancies becoming more risky, harder to end – and you have to wait longer to claw back arrears. 'Landlords will be pricing in that risk when setting rents.' A recent survey by Pegasus Insight showed that 37pc of landlords planned to sell a property in the next 12 months while just 6pc said they intended to buy. Rents in England rose by 1pc in May to £1,226, the highest level since October 2024, according to letting agent software firm Goodlord's rental index. William Reeve, Goodlord's chief executive, said: 'Although the pace of year-on-year increases is starting to slow… ongoing supply issues coupled with landlord jitters ahead of the Renters' Rights Bill means that rents remain on track to rise for the foreseeable future.' The Government was approached for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Powys County Times
7 hours ago
- Business
- Powys County Times
‘Not enough' landlords to cater to students and immigrants, Paragon boss warns
There are 'not enough' landlords in the UK to cater to population growth, student towns, and rising immigration, the boss of buy-to-let lender Paragon Bank has warned. High demand among tenants versus a lack of available homes is pushing up rental prices, Paragon's chief executive Nigel Terrington said. 'The broader issue is that there is probably, in reality, not enough landlords,' Mr Terrington told the PA news agency. 'Demand for rented property is very high – everywhere you go you hear there are 15, 20 people for every rented property that is available and, of course, that's pushing up rents.' He said the issue was 'broad based' with big UK cities like London being strained as well as student towns. 'The potential is that it gets worse from here because the UK population is expected to grow by another four million people by 2032, and it is largely going to come from immigration,' Mr Terrington told PA. 'Immigrants tend to come into the UK and will rent, rather than buy. 'So it puts more pressure on the rental market and therefore we need greater levels of landlord formation, rather than keeping it stable.' He said landlords, like other UK businesses, need 'certainty and clarity' following events such as Brexit, a new government, and interest rates being hiked. The remarks come as Paragon revealed new mortgage lending surged by a quarter over the six months to the end of March to £810 million, compared with the same period a year ago. Activity was buoyed by buyers taking advantage of more generous stamp duty relief before the April deadline. Mr Terrington also pointed to a wider shift from 'amateur' landlords to professional landlords, who tend to own more than five properties, which he said was 'playing into our hands' because of the lender's customer base. Paragon's pre-tax profit soared by nearly 27% to £140.1 million for the half-year. Meanwhile, the bank boss called on the Government to give landlords enough time to plan for the Renters' Rights Bill, which is currently going through Parliament. The proposed legislation seeks to introduce several measures including an end to no-fault evictions, stopping bidding wars for tenancies, helping tenants challenge unreasonable rent increases and preventing landlords from demanding more than a month's rent in advance from a new tenant. Mr Terrington said it would be 'crucial' to have an 'appropriate implementation period' for the potential new laws and that they are communicated sufficiently to both landlords and tenants.
