ONS - Index of Private Housing Rental Prices, UK: February 2023
Over the last 12 months there has been a lot of discussion surrounding rent increases on the private rented sector. Many landlords took the decision not to increase rent during the Pandemic or post Pandemic, however, due to the cost living crisis, the cost of energy and increases in interest rates, landlords took the decision to increase rents.
Landlords are permitted to increase rent at the end of every 12-month term. This can be done by relying on the rent review clause found in the tenancy agreement. If the tenancy is periodic and the tenancy is silent on rent increases, the landlord must serve a Section 13(2) notice (Form 4).
Importantly, a discussion with the tenant before increasing rent would be sensible as this allows both landlrod and tenant to negotiate on an increase which suits both parties.
The Old Cliche - Knowledge is Power rings True
How many times have we heard that knowledge is power? Countless no doubt and now more than ever this rings true in the Private Rented Sector (PRS). Twenty years ago the PRS was not deemed as important as estate agency commercially and also by the consumer. The PRS had a stigma attached to it that only those who could not get on the property ladder would have to rent - the UK was a nation of would be homeowners.
Yet, the recession in 2009/2010 changed this perception, driven predominantly by Supply V Demand, repossession and the lack of housing stock. Not only has the demand for rental property increased, the Letting Sector became an industry in its own right and Letting agencies and lettings departments played a key role in the property sector.
CYBER RISK ASSOCIATED WITH PROPERTY PROFESSIONALS
Not a day goes by without cyber security being in the press in one way shape or form. Cyber and Cyber Crime claims are now making up more than 50% of all claims in the insurance market and property professionals are by no means immune, yet the complacency around cyber liability insurance remains staggeringly high.
Cyber Liability is an area where firms feel they are unlikely to suffer an attack, and therefore choose to bear the consequences themselves should an incident arise. They believe their systems are rock solid or they are too small or of little interest to cyber criminals to justify the expense.
No business is 100% protected against cyber-crime. Cyber criminals are now more sophisticated than ever before and inclined to go after smaller more vulnerable businesses which they see as low hanging fruit compared with more complex larger companies who may have better security systems in place and take more time to penetrate.
Property Specialist recognised in New Year’s Honours List
Kate Faulkner has been recognised for her work with the Home Buying and Selling Group and The Lettings Council and overall for her ‘services to the property industry’. Kate and co founder of the Lettings Council, Theresa Wallace of Savills managed to do something that had been missing in the property sector, the letting sector that is and that is to bring professional bodies, letting agents and suppliers together. The Lettings Council has created a forum and a platform for change that unifies the industry rather divides the sector.
Kate’s response to the honour was “I feel a bit like I’ve been given the award for ‘top goal scorer’ – which you only get thanks to everyone that has supported you and in the HBSG’s case that’s an awful lot of very committed people that have worked tirelessly over the years together.,” she says.
Congratulations Kate, well deserved.