Propertymark chief executive Nathan Emerson has given his prediction as to what the big issues will be in the 2022 lettings market.
“The private rental sector is still awaiting the Renters’ Reform White Paper with 2022 looking like it could be the year the UK government sets out the abolition of Section 21 and what will replace it. Many agents are warning of the loss of landlords from the market and the effect it could have on homelessness and rent rises” he says.
Emerson believes that energy efficiency – so much a part of the 2021 landscape – will be a major issue next year as well.
“But what we need to see from all UK governments is clarity and support for both homeowners and landlords. At Propertymark we are wary of the one-sized fits all approach currently being taken and the lack of funding support for landlords and homeowners to improve their properties” he says.
“Policy makers must take into account the disparity of age, size, location and construction of the UK’s housing stock when deciding how best to tackle this huge challenge. Since the failure of the green homes grant, the approach has felt decidedly more stick than carrot; penalisation via green mortgage targets and restricting landlords who can’t achieve an EPC rating C band risks stalling the market and depleting the PRS.”
He says his organisation has been worked with UK government departments plus the administrations in Wales and Scotland to look at financial solutions to the huge costs involved in upgrading properties for energy efficiency.
And he concludes: “The fate for both the sales and rental markets in the next 12 months will rest upon the COVID-19 pandemic. Heading into winter there is an anxiety of the Omicron variant with the UK government moving to Plan B measures – which could push a new wave of movers looking to change their surroundings, or we may see more wanting to stay put until life feels more certain.”
