association of residential letting agents the private rented sector in 2025 david cox, arla managing...

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ASSOCIATION OF RESIDENTIAL LETTING AGENTS

The Private Rented Sector in 2025David Cox, ARLA Managing Director

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Rental prices in 2025:• Rents will increase:

– 2015 = £132pw– 2025 = £164pw– c.25% increase

• Supply will not meet demand:– 4x as many households as houses– Housing crisis will continue

• Depoliticise housing:– Sustained housebuilding programme– Regulatory certainty– Institutional Investors

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The Landscape to 2020:• No substantive change:

– Tinkering around the edges– Lots of little changes

• Will this solve the problem?– Under resourced and over

worked enforcing bodies– Housing Bill changes may go

some way

• Letting agent regulation:– Highly unlikely with current

Government

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The Corbyn Effect:• Election pledge revamp:– Mandatory 3 Year tenancies – Capping Rents– Ban on agency fees to tenants

• Leadership election policies:– Security of tenure– Strict rent control– Rents linked to earnings– Landlord regulation– Council house building programme

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Landlord Licensing:

• Wales and Scotland:– Existed in Scotland since 2006– In force in Wales soon– Influx of discretionary licensing

• A National Register of Landlords:– A bureaucratic nightmare;– Or a consistent approach?

• London Rental Standard:– This model can work– Make it mandatory

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Longer Term Tenancies: • Tenancy Reform:

– Will 3-year contracts be the norm?– Does Section 21 have a future?

• Wales and Scotland:– Complete overhaul of Tenancy Law– The removal of Section 21

• A European Model?– Should we look to Germany?– France’s eviction laws– Lisbon: Crippled by rent control

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Property Conditions & Rent Control:

• What is the priority:– Good quality homes– Or cheap properties

• Market Economics:– House prices are unlikely to reduce– Higher standards increase costs– Rent Control reduces income

• Learn the lessons of the past:– Or history will repeat itself!

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Tax Changes:• Autumn Statement 2014:

– SDLT Changes

• Finance Bill 2015:– Mortgage Interest Relief– Wear and Tear Allowance

• Changes to Buy-to-Let– Linked BTL to earnings?

• Future Tax Changes:– Capital Gains Tax Relief– Taper Relief– Treat landlords as businesses

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Look for the Logo:

You will receive a professional service from a qualified professional but if things go wrong you will get you

money back

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For more Information:

Association of Residential Letting Agents (ARLA)Arbon House6 Tournament CourtEdgehill DriveWarwickCV34 6LG

Email: davidcox@arla.co.uk