One in five households (19%) live in the private rented sector (PRS), a figure that has stayed constant for the last four years. And every one of them deserves a good quality, warm home. The vast majority of landlords provide exactly that, and many are highly motivated to improve their rental properties. In return for this investment, they know they’ll attract better, long-term tenants and maximise their return. Boosting the overall quality of homes in the PRS is good for everyone. So, how are landlords doing? Making strides The government’s latest English Housing Survey, published in December, highlighted some of the areas where landlords are making strides. Support for those receiving housing benefit: Landlords are now providing much-needed homes to a quarter (24 per cent) of renters in receipt of housing benefit, up from 20 per cent in 2018. Historically many of these households would have lived in social housing but, with stock remaining low, the PRS plays a vital role. At BM Solutions, we welcome landlords who are supporting these renters and most lenders are happy with landlords letting to tenants in receipt of benefits (despite a persistent myth that it isn’t allowed). Energy-efficient housing: Over the last 10 years, the proportion of overall homes in the highest energy efficiency bands (A to C) increased from 19 to 48 per cent. Homes in the social rented sector saw the largest rise (36 to 70 per cent) but the PRS saw an increase too, more than doubling from 20.2 to 44.8 per cent. Average Standard Assessment procedure (SAP) ratings in the PRS rose from 57.2 in 2012 to 65.2 in 2022 (from a low to a high D rating). And, despite the cost of living crisis and rising mortgage rates, SAP ratings even inched up between 2021 and 2022 (from 64.9 to 65.2). Landlords are doing a good job of providing more energy-efficient properties in the PRS, and we expect and encourage this trend to continue. Room for improvement It’s not all good news. The cost of living crisis has inevitably impacted both landlords and tenants and the latest figures on damp and mould prevalence in the PRS reveal a small slide backwards. Despite landlords having made improvements to energy efficiency, nine per cent of homes in the PRS now have damp compared to seven per cent in 2019. This compares unfavourably to the 5.4 per cent of social housing and 2.3 per cent of owner-occupied homes with damp issues. However, it’s not necessarily down to poor Improving the quality of rental home benefits landlords and tenants 06 SPRING MORTGAGE NEWSLETTER Leigh Church Head of BM Solutions BM Solutions
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