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Housing



UNITED KINGDOM: Incoming regulations put pressure on rental market

As per 1 April 2018 the UK government have implemented a requirement that all properties rented out in the private sector must have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). Any property in breach of this requirement will be considered unlawful and landlords could face penalties of up to £4000.

The new regulation will apply to all new lets and renewals as of 1 April 2018 and for existing tenancies as per 1 April 2020.

According to the Association of Residential Landlords Agents (ARLA) this incoming regulation will impact the rental market by taking some houses off the market while landlords prepare their properties in order to meet the requirements.

This is already visible in the market where the number of properties managed by letting agents is down compared to last year. It is estimated that approximately 300,000 rental properties could be taken off the market meaning that competition between prospective tenants will increase and subsequently rental prices will be pushed up.

For a comprehensive guide to the new regulations including a list of exemptions please find a report from the Residential Landlords Association here.

How does this affect the client?

Employers should be prepared for a sudden shortage of viable rental properties on the UK market in the coming months, while landlords update their properties to meet regulations. Good planning and consultation with letting agents and landlords will ensure a smooth transition for employees already renting and also for those transferring to the UK in the coming weeks and months.

 

 

 

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