York rental market 'perfect storm', say Naish Estate Agents

Uncertainty caused by the possible effects of the government's planned Renters (Reform) Bill, which includes a number of plans to alter the relationship between landlords and tenants, has thrown the market into turmoil.

Helen Jollands and Sam Carroll from Naish Estate Agents say there is huge potential for renters and landlords to be caught in the crossfire both while they wait for the bill to go through parliament and once it becomes law.

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And, while the wait continues for the bill to go through parliament the market is haemorrhaging landlords creating less stock, higher demand which in turn means higher rent and can even lead to homelessness in some cases.

The headline measure of the bill, which is still going through parliament and is hoped to come into law some time next year is a proposal to ban Section 21 evictions for new and existing tenancies. Removing Section 21 evictions from the Housing Act 1988 means tenancies will only be ended by a tenant or if a landlord has a valid reason, defined in law.

But Sam says: "Their motivations are noble in an ideological sense, but the final result could end up causing more damage without realising it."

Sam Carroll, head of residential property management at York estate agent, Naish (Image: Supplied) "We have got to prepare our landlords for the changes, but we don't know what they are going to be," said Helen.

"In my opinion the Government are creating a perfect storm because they are putting pressure on landlords who, in some cases, in response to mortgage increases, are in a position where the rent isn't covering the mortgage."

She said that most landlords are on interest only mortgages meaning that they are subject to fluctuations in interest rates.

Helen said: "They are trying to say to landlords that they can only increase the rent once a year, but if mortgage rates are going up twice a year it will lead to landlords charging higher initial rents to future proof for any rate rises."

Another factor is the ancillary businesses connected to the property market in the wider economy who are all affected by the the uncertainty, say the duo. These include electricians, plumbers, decorators, curtain and blind companies as well as furniture and white goods suppliers.

Helen said: "I think it needs to happen sooner rather than later so people know what's going on and we can prepare our clients for the change."

"It feels like a lot of the legislation is geared towards the London market where the landlord has the upper hand," said Sam.

"Here in York there's a lot more negotiating between the tenant and the landlord with us in the middle."

Helen Jollands sales and lettings business development manager at Naish (Image: Supplied) Naish Estate Agents, is a residential sales and lettings business in High Petergate, and traces its trading roots as far back as 1939.