What does the latest government reshuffle mean for the rental industry
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- 14th Nov 22
After a turbulent few weeks, what does Rishi Sunak’s government mean for the lettings industry? Stats from Love to Rent, has shown that visits to the site have increased by 26% since Boris Johnson resigned as leader of the Conservative party and during the short premiership of Liz Truss, they jumped up a further 5%.
This is a strong indicator that the state of the government directly affects how people view investing in property and how they plan to live. With the rising cost of living and increased mortgage rates, many people are pausing to consider their options, which is where Build to Rent comes in.
Unlike the traditional rental market, Build to Rent gives customers full control over their rental experience. This includes how long they want to remain in their rented home, thanks to the flexible tenancies as well as enjoying an easy living experience with professional management.
With many people reconsidering their house buying options, there is a gap in the market for quality rental homes, which is only going to increase based on statistics. According to Nationwide, house prices fell by -0.9% in October, making it the biggest fall since June 2020, taking average house prices back to their level in April 2022. With demand easing and higher mortgage rates, it is expected that prices will fall further during 2023.
“Although it is hoped that Rishi Sunak will bring in a new era of financial and economic stability, what can’t be ignored is the impact that the last few months have had,” says Peter Sloane Chair of Love to Rent. “The Love to Rent platform has been particularly busy with people unwilling to make big financial commitments right now and that doesn’t look set to change in the near future. What makes Build to Rent unique, is that it puts all the power back into the hands of the customer, allowing them to dictate the length of their stay, whether they want to bring a pet, the choice of homes with different budgets and the guarantee of receiving exceptional standards of customer care.”
Another significant change for the housing industry is the end of Help to Buy. The last day for registrations under the scheme was 31st October, which will further impact many first-time buyers who are likely to turn to Build to Rent in order to have the best rental experience possible.
The return of Michael Gove as Secretary of State for Levelling Up, Housing and Communities suggests that the government's plans to reform the rental market could be back on the agenda.
With the rate of corporation tax increasing next year, the number of buy-to-let companies could start to dip in 2023 as landlords weigh up their options.
“The rental market has stopped growing in size, yet the demand for renting is growing, which is why we urge the government to engage more with the Build to Rent industry, who can help alleviate many of these problems,” adds Peter Sloane. “The government wants to improve the standards of rental accommodation as well as having a more cohesive partnership with landlord and customer, which are areas where Build to Rent operators excel at.”
The top priority for Rishi Sunak’s new government is to keep the economy growing and long-term stability. Together with this, his team could take a leaf out of the strong community focus that Build to Rent providers foster within their developments.
Build to Rent customers can expect a high level of customer service including effecitient repairs and maintenance, a concierge or 24/7 security. But more than that, it offers residents the feel of living within a community in higher quality accommodation, which in turn encourages longer tenancies to create real friendships and an improved quality of life. Build to Rent residents experience being part of a community because of the focus on interaction throughout the development. Whether that is an improved working life with co-working spaces, access to wellness and fitness using a gym or yoga studio and opportunities for social events such as barbecues, quiz nights or supper clubs thanks to the on-site events team.
“Rishi Sunak’s government has many issues in front of them and we are hoping that they don’t ignore the thousands of people who choose to rent for lifestyle reasons,” adds Anne-Marie Brown, Founder of Love to Rent. “As more people discover the benefits of Build to Rent, the more will understand that this is an option that they want to explore. We would gladly work with government and would like to address the need for a Minister of Renting. The industry at large believes a dedicated minister is needed to support the households which are private rentals and to encourage and play a part in the growing Build to Rent sector, which can improve the lives of millions in the future.”