The private rental sector is changing. We’re moving into the era of the professional landlord, more recently referred to as ‘brand’ landlord and the effects will be felt the most by small portfolio and accidental landlords.
Professional or ‘brand’ landlord is not a new concept, as Residential Land has been a private landlord brand since 1991. Organisations like us want to change the perception of renting, acting as professional landlords yet operating within a bigger company structure.
‘Brand’ landlord is the product of a number of current factors, although Residential Land has always been ahead of the game. There is a growing need for fair, transparent and fit-for-purpose rental accommodation and some private landlords are not in a position to deliver this. Large branded private landlords like Residential Land have the resources, infrastructure and specialist skills to deliver quality professionally-managed properties across Central London.
In fact, we are signed up to The London Rental Standard – a voluntary set of minimum standards that the Mayor expects from landlords, managing agents and letting agents that operate in London’s private rented sector. Our tenants also benefit from clean and modern properties, dedicated building managers and 24-hour maintenance support.
The lettings landscape will also alter as Build to Rent gathers pace. This Government-backed initiative is encouraging developers, organisations, charities, REITs, pension funds and other investment vehicles to build new homes, retain ownership and release the units into the private rental sector.
Build to Rent is an approach that’s here to stay. The British Property Federation has just recommended that a quarter of all public land in London be earmarked for build-to-rent projects, and that the rate of build in London should be doubled. It is also encouraging the Mayor to identify 20 new build-to-rent opportunity areas in the capital.
It’s also worth mentioning what’s happening to small property investors and one-man band landlords. The National Landlords Association (NLA) reports that the proportion of landlords in Central London who intend to sell property has quadrupled since 2015’s Budget, squeezed by a new second home stamp duty levy (from 1st April 2016), cuts to mortgage interest relief and alterations to the wear and tear tax break. This trio of changes will mean some landlords will run at a loss, perhaps prompting them to sell up and leave the private rental sector altogether.
Private lettings is becoming an institutional grade investment business with a corporate face and household names behind new rental communities. Tenants are savvy. They want a trustworthy source, professional assurances and a smart lifestyle – something that ‘brand’ landlord is ready to deliver.
If you are looking for short or long term rentals in Central London, Contact Residential Land, we have a portfolio of over 1200 flats and houses in some of the best postcodes across the Capital.