The three big priorities renters are looking for in 2021

As we continue with imposed regional restrictions in 2021, we are reminded of how it began and what it has taught us all so far.

The March lockdown caught many people off-guard and the world was forced to adapt quicker than they had ever expected. The letting market is no different. Tenant priorities have changed, as they look for new features within their tenancies and their properties.

Bigger spaces

Lockdown restrictions and social distancing guidelines throughout the year have forced people to assess their living situations. As more people are working remotely, the demand for extra working spaces has risen. This has been evident in larger cities where extra space, whether indoors or outdoors, can come at a premium. The rise of the home office has pushed tenants to look elsewhere to properties that can match that demand and give them that extra space.

A noticeable trend is the growth in appetite for properties outside of the capital and large cities in the UK. Not needing to be in such close proximity to the office has allowed prospective tenants to widen their radius. Pre-COVID, the thought of living in a city centre high-rise apartment complex wouldn’t come with too many challenges.

Now however, the isolation factor may still linger even with recent news of a potential upcoming vaccine. Time will tell when, and if, normality significantly returns, but people won’t forget. The idea of living in a different type of property, in a different area and possibly nearer family is becoming more popular.

Longer tenancies

The desire for tenants to stay in larger properties for longer has accelerated during 2020. Properties with more indoor and outdoor space have taken precedence over city-centre flats in close proximity to the office. This has ultimately increased the average tenancy length across the board.

Recent data from, Zoopla, indicates that tenant demand in rental property continues to rise. On average, demand from tenants in the private rental sector in September rose by 20% compared to the previous year. This increase has pushed prospective tenants to look for longer rental periods.

While the housing market remains open, remote and virtual management is highly encouraged. IPM are already at the forefront of technology by using their app to help manage, assess and communicate with tenants.

More flexibility

While 2020 has forced many people to adapt, it has also encouraged them to be flexible. More people are looking to try new areas, new properties and new ways of living before they commit to a purchase. This has been the case even pre-COVID.

However, what we are seeing now is more people trying new areas and properties that they otherwise would not have considered. For example, the growth in demand from London-based individuals for properties outside of the capital attests to this.

By renting, tenants can analyse the short to medium-term with an eye on the long-term. What they value now, or previously, might have changed. Tenants can see how the economy responds and whether a vaccine will return us to a more normal working/living environment.

For many, living further away from work and working from home has encouraged a better work/life balance. This trend is showing no signs of slowing down. Therefore, it is becoming clearer how significant the rental sector is for the future of the housing market.

Flexibility doesn’t just mean in terms of how people want to live, but the way the live with the increased rise in pet ownership. Many tenants are looking for flexibility in their leases to allow pets and designated exercise areas within their developments.

There are lots to think about in 2021 but the biggest factor is how we all adapt to these new changes.

 

Jenrick extends ban on evictions and notice periods

The ban on evictions extended for another 4 weeks and new 6 month notice periods to be in place until at least 31 March 2021.

Renters affected by coronavirus will continue to be protected after the government extended the ban on evictions for another 4 weeks, meaning in total no legal evictions will have taken place for 6 months, Housing Secretary Robert Jenrick announced on the 21st August 2020.

The government also intends to give tenants greater protection from eviction over the winter by requiring landlords to provide tenants with 6 months’ notice in all bar those cases raising other serious issues such as those involving anti-social behaviour and domestic abuse perpetrators, until at least the end of March.

The government will keep these measures under review with decisions guided by the latest public health advice.

When courts do resume eviction hearings they will carefully prioritise the most egregious cases, ensuring landlords are able to progress the most serious cases, such as those involving anti-social behaviour and other crimes, as well as where landlords have not received rent for over a year and would otherwise face unmanageable debts.

The government has taken unprecedented action to support renters during the pandemic, preventing people getting into financial hardship and helping businesses to pay salaries – meaning no tenants have been evicted since the start.

As a result, according to independent research, 87% of tenants have continued to pay full rent since the start of the pandemic, with a further 8% agreeing reduced fees with their landlords.

The vast majority of landlords have shown understanding and leadership, taking action to support tenants.

With coronavirus still posing an ongoing risk to public health, the government will continue to take action where necessary to further protect households in both the private and social rented sector are supported over winter, helping to keep them safe.

Today’s extension to the stay and 6 month notice periods will ensure those most at risk are protected. If tenants are unable to afford their rent we encourage them to speak to their landlord to agree a solution, and some households may decide to consider moving.

Government will continue to work with the judiciary and stakeholders to ensure that the courts are prepared for eviction cases to be heard safely.

Housing Secretary Robert Jenrick MP said:

I know this year has been challenging and all of us are still living with the effects of COVID-19. That is why today I am announcing a further 4 week ban on evictions, meaning no renters will have been evicted for 6 months.

I am also increasing protections for renters – 6 month notice periods must be given to tenants, supporting renters over winter.

However, it is right that the most egregious cases, for example those involving anti-social behaviour or domestic abuse perpetrators, begin to be heard in court again; and so when courts reopen, landlords will once again be able to progress these priority cases.

Further information

Case listing, including prioritisation, is a judicial function and we are working with the judiciary through the Master of the Rolls’ Working Group on possession to consider the categories of serious cases that would be prioritised when hearings resume. Further detail on those categories will be set out in due course and we will engage with key stakeholders on this.

Independent polling for the National Residential Landlords Associationrecently found that 87% of private tenants have paid their rent as normal throughout the pandemic so far. An additional 8% said that they had agreed a reduced rent, a rent-free period or made some other agreement with their landlord or letting agent.

The extension to the ban on evictions and prioritisation of the most serious case applies to courts in England and Wales

The intention to extend notice periods to 6 month applies to England only.

On 5 June the government announced that the suspension of housing possession cases in the courts had been extended by a further 2 months.

To support those on Universal Credit or Housing Benefit in the private rented sector, Local Housing Allowance rates have been set to the 30th percentile of rents in each area. For those who require additional support Discretionary Housing Payments are available.

As announced at the spending round for 2020/21 there is already £180 million in Discretionary Housing Payments for Local authorities to distribute for supporting renters with housing costs in the private and social rented sectors.

We remain committed to bringing forward reforms to provide greater security to tenants, but it is only right that this is balanced with an assurance that landlords are able to recover their properties where they have valid reasons to do so. This is vital to ensuring the future supply of good quality housing in the rented sector.

We will bring forward legislation in due course, once the urgencies of responding to the pandemic have passed, to deliver a better deal for renters and a fairer more effective rental market.

SOURCE: https://www.gov.uk/government/news/jenrick-extends-ban-on-evictions-and-notice-periods

How Digitisation is Impacting Residential Buildings

Like all UK industries, property is impacted by COVID-19 and the effect of the lockdown on the way it works. But despite this ‘new normal’, we cannot ignore our sector’s other key issues. The use of building technology is changing the way we live. In the last decade we have seen a revolution in technology; in particular the way in which data influences our daily lives. It is increasingly being used by stakeholders across the property sector to inform decision-making and digitise both information flow and transactional business.

In response, today the Institute of Residential Property Management (IRPM) publishes the second part of its 2020 Tech Insight programme. Making the right connections: the impact of technology on building management is a white paper highlighting the key issues raised by the impact of technology on the way our buildings are built and managed. From building management systems to resident portals and from repair reporting to the internet of things, there is a myriad of ways in which technology can be used to improve the pace and quality of service delivery.

The IRPM brought together a group of leading industry experts to discuss the impact of data and advances in building technology on the management of residential blocks. The white paper captures this conversation, highlighting the technological challenges for the sector and sets out next steps for the property management profession.

Key points are that:

  • Assets that are digitised will yield higher values.
  • A cultural shift is needed if the property management sector is to reap the benefits of digitisation – and in turn deliver value for residents.
  • If property managers can effectively harness the data they hold and use it to drive innovative customer-facing products, in future this will act as a differentiator between technical competence and technical excellence.

To address these challenges, the paper pinpoints the need for:

  • A platform for tech and software providers to communicate with the property industry.
  • Cross-industry collaboration to determine what is needed by operators and occupiers and avoid development of unsuitable and ineffective solutions.
  • Government intervention to unleash the potential of this market segment.

Launching the White Paper today, Andrew Bulmer, CEO of IRPM said: “These discussions and white papers are pivotal to start the conversation around the ways in which technology is already impacting our residential buildings and will change the way they are built and managed in the years to come.”

Please click here to download the full white paper.