"Here’s hoping the new government majority and the fact that some of the more controversial political discussions are behind us, means we can finally enjoy a bit of stability."
The Housing Minister’s job is no small task. It’s central to tackling everything from the property shortage to the ins and outs of rental market regulations. Yet, all too often, these ministers are in and out of the role like a fiddler’s elbow.
Matthew Pennycook, our latest Housing Minister, is the 16th person to fill this role since 2010. Sixteen! That rate of turnover is much too high to address the market's issues. Just think of your own business. How many mortgage lenders, brokers, networks, or packagers would be firing on all cylinders with that rate of change at the top?
Here’s hoping the new government majority and the fact that some of the more controversial political discussions are behind us, means we can finally enjoy a bit of stability. We don’t need another minister hopping in and out with every reshuffle. We need prolonged attention and focus on solving the issues at hand. Consistency at the top would be a breath of fresh air for the market.
Putting some respect on the private rental sector
Too often, the private rented sector gets a bad rap and is painted as the villain in housing issues. When things go wrong for homeowners or renters, landlords are usually the first to get the blame. That’s always been grossly unfair. Gone are the days of unscrupulous landlords exploiting tenants. Most landlords aim to provide top quality housing for their renters. And now, more than ever, we need the private rental sector to be treated with respect.
The UK desperately needs a healthy rental sector. We all know the headlines. The population is growing and the number of people per household is falling meaning we need more homes. But we aren’t building enough. Archaic and Byzantian planning laws combined with a shortage of skills are to blame for that. We need to build close to 300,000 homes each year but for the last 10 years the average number of homes built each year sits at 180,000... that’s quite a miss.
Of course, homeownership remains, and will always remain, an aspiration for many but with the double challenge of affording to save for a deposit and affording a mortgage, becoming a first-time buyer isn’t easy. We need to dramatically improve the rate at which we build new homes. The new government has already talked about revamping the planning laws to kickstart production – let’s hope we can see the desired effects.
In the meantime, we need a flourishing private rental sector that delivers for its tenants by providing quality housing for people to live in before they start their homeownership journey. Investors and landlords deserve support to deliver the best possible experience to tenants.
Those of us in the industry need to step up as advocates. It’s on us to champion the private rental sector and ensure it is treated with the respect it deserves.
Delivering for landlords
Speaking to brokers and landlords, a genuine sense of optimism is emerging. Forget the challenges of recent years — there are plenty of reasons to believe that good times lie ahead.
Tenant demand is growing. The latest data from Propertymark shows that the average number of tenants registered with letting agent branches has increased from 90 in April to 97 in May. More tenants mean more choice for landlords and better prospects for rental and capital growth.
Political stability might be the cherry on top, further boosting investor confidence and stirring up activity in the buy-to-let market – the rental market has always been closely connected to the employment market. A buoyant jobs market leads to a buoyant rental market. So, an improving UK economy is good for everyone.
However, landlords will need agile support from lenders to achieve their investment goals. Too often, we hear of cases where lenders have been put off by perceived complications, leaving both the broker and borrower in limbo.
We have all the ingredients for a thriving rental sector. But just as we need some stability at the top of government, we also need stability from lenders. That means embracing a positive attitude, finding solutions, and ensuring cases proceed smoothly.
By collaborating with like-minded individuals and organisations, we can put the rental market into a much better place. And just maybe, we can stop holding our breath every time there’s a Cabinet reshuffle.
