What does 2022 have in store for the rental market and Bristol landlords?
As we enter 2022 with a new variant of Covid-19, but millions of people in the UK on their third jab, many Bristol landlords are asking themselves, “what will 2022 look like for the rental market, and will I finally see a sense of relief after the economic turmoil from the past nearly two years?”
There is much speculation on how the housing marketing will look regarding purchasing and letting properties.
Our team at Brunt and Fussel, a letting agency in Bristol, compiled a list of what landlords can expect from 2022.
Will rental prices continue to rise?
Rental price growth hit a 13-year high during Q3 in 2021, but will it continue to grow?
Zoopla’s 2021 Rental Market Report found that rental growth reached 4.6% across the UK between July and September, with robust markets in the South West, Wales, and the East Midlands - thanks to remote working.
Zoopla’s predictions are that rental prices across the country by another 4.5%, and London will see a 3.5% growth. Both of which will exceed pre-pandemic rent prices.
The Renters’ Reform Bill is delayed.
The bill will have widespread changes to the rental market, and the white paper is expected in the first few months of 2022. However, they will not introduce the changes before 2023.
Even though we won’t see the changes for another year, we highly recommend that Bristol landlords begin to prepare in 2022 to be compliant.
Here’s a recap of the new regulations:
- Section 21 was removed from the Housing Act 1988 and replaced by Section 8
- Lifetime deposits for tenants will be introduced, which will reduce the cost of moving between properties
- A public database of rogue landlords and letting agents increase transparency
Preparing for energy efficiency changes
Since April 2020, if your property has an Energy Performance Rating of F or G, it’s been illegal to let your property without an exemption. And in 2025, the minimum rating will be increased to C for all new tenants and until 2028 for existing tenancies. There are around 3 million properties in the UK that have an EPC rating of D or below, and if you’re a Bristol landlord of one of those properties, 2022 is the year to improve your rating.
The Autumn Budget announced that from April 2022, Bristol landlords could access £5,000 to pay for heat pumps, as one of the best ways to improve energy efficiency is replacing gas boilers with a heat pump.