Rental properties and new EPC rules

[JimJay]

My experience of renting in the UK is from the 70s and I've never been a landlord there, so I can't add much directly to the discussion. I did think about renting my UK house out when I moved abroad but the regulations and stories of "tenants from hell" put me off.

However, I am a landlord where I live now and my experiences might be if some use/interest to anyone looking a bit further afield for investment opportunities.

Property here in Bulgaria is cheap, particularly in rural areas. There's more rental potential in the cities; either houses (mostly aimed at foreigners) or apartments for both foreigners and locals. The regulations are very relaxed - often to the point of non-existence - and getting tenants out if needed is a simple and quick process. Most tenants are fine - the only real problems we've had have been with foreigners, so we only rent to locals nowadays. The tax rate is low, and you can form a company if you want to reduce it even further.

The normal procedure is an annual and renewable contract, with one month's notice either side.

For those put off by the rules and regulations in the UK, it may be worth looking across the Channel!

 

[Jacob]

No-one can deny we need more housing but you’ve missed out the word ‘affordable’ in your analysis. IMHO we are caught in a trap at the moment - house prices can’t come down in any real way because they are intrinsic to most people’s personal wealth. A lot of buyers also have big mortgages on essentially poor new housing - small, cramped, badly built. Virtually the back-to-back slums of today.
What we desperately need are more and higher quality rental properties for those who can’t afford or don’t want to buy. Young people starting out in careers need the flexibility of renting to be able to move for jobs. Way back in the ‘70’s I found a new job in London, put my stuff in the back of my old car, drove to a rental agency in Notting Hill and was in a bed-sit that night!

What we need is massive inflation. We have it already in terms of house prices but we now need it across the board so that wages and everything else catches up whilst house prices stay where they are.

 

[deema]

What we need is massive inflation. We have it already in terms of house prices but we now need it across the board so that wages and everything else catches up whilst house prices stay where they are.

Well, for those retired inflation is a killer and a betrayal of the elderly. They have planned skimped and saved to have a retirement only to see their nest eggs reduced to ashes. Inflation is a result of poor fiscal management and is done thing to be avoided.
Of course, if you follow the spend spend spend and never save, live off the state inflation isn’t much of a concern. That’s not a very self reliant mature attitude, but one often proposed by the mire socialist persuaded who believe the state should run and control everything.

 

[Jacob]

Well, for those retired inflation is a killer and a betrayal of the elderly. They have planned skimped and saved to have a retirement only to see their nest eggs reduced to ashes. Inflation is a result of poor fiscal management and is done thing to be avoided.
Of course, if you follow the spend spend spend and never save, live off the state inflation isn’t much of a concern. That’s not a very self reliant mature attitude, but one often proposed by the mire socialist persuaded who believe the state should run and control everything.

So do you think that house price inflation is a good thing, somehow different from inflation in other areas?

 

[Phil Pascoe]

What we need is massive inflation. We have it already in terms of house prices but we now need it across the board so that wages and everything else catches up whilst house prices stay where they are.

Best of luck with that.

 

[Phil Pascoe]

What we desperately need are more and higher quality rental properties for those who can’t afford or don’t want to buy. Young people starting out in careers need the flexibility of renting to be able to move for jobs...

Council and housing association housing having the exact opposite effect, of course.

 

[Jacob]

Best of luck with that.

We have had inflation continuously anyway, it just gets out of balance, as it has with house prices, currently less "affordable" than they have ever been for over 100 years. Corrective measures would be easy if it wasn't for the risk of negative equity.

 

[Terry - Somerset]

Some more annoying facts to get in the way of preconceived notions. From 2010/11 to 2020/21 the proportion of income spent on different types of housing barely changed:

• owner occupiers spent between 17.2% and 18.8% on mortgage costs
• social housing rents varied between 26.7% and 29.2%
• private sector rents from 35.4% to 31.2%

The recent increase in interest rates will have changed this - although it is unclear whether it will be a "blip" or lead to a long term realignment. Conclusions:

• the real measure of housing affordability should be the proportion of income required to meet the need, not house prices as a multiple of income
• owner occupiers seem to get a good deal - but they (a) have to pay for repairs and maintenance, (b) made some sacrifice to save for a deposit, and (c) may be from generally higher income groups with more secure jobs required to get a mortgage.
• social housing is (unsurprisingly) lower than private
• private sector rents are the only one to show a limited reducing trend - although this may not be statistically significant

I am not, by the way, suggesting all is OK - there are improvements needed, and we need to acknowledge property ownership has a major impact on wealth distribution (does it matter?). But wild rantings about injustice, rapacious landlords, etc etc are not warranted.

 

[Jacob]

.....
I am not, by the way, suggesting all is OK - there are improvements needed, and we need to acknowledge property ownership has a major impact on wealth distribution (does it matter?).

It does very much matter to those at the bottom. https://www.resolutionfoundation.org/app/uploads/2020/12/The-UKs-wealth-distribution.pdf

But wild rantings about injustice, rapacious landlords, etc etc are not warranted.

oh I dunno . I think a bit more ranting and less complacency could be a good thing!
Currently we have a major crisis. the housing crisis uk - Google Search

https://england.shelter.org.uk/housing_advice/private_renting/complaints_about_private_landlords

 

[MikeJhn]

Fifty two years ago when I took out my first mortgage (6.6% rate) the re-payment where over 60% of my take home wage, increasing to a rate of 18% in 1969 does anyone know the average % of wage contribution now?

 

[Jacob]

Just got our EPC rating. "C". Above average.
Seemed quite fair, was what I expected.
We've got single glazing all round but scored higher on insulation i.e. 4" Kingspan against all external walls, etc.
Estimated annual bill was spot on! £1435
Just fitted draught brushes to bottom of all 10 doors which makes a noticeable difference in terms of draughts. I set the bread machine to go off early mornings and usually get a whiff of cooking whilst still in bed, one floor and 4 doors away, but not any more. Just shows how cold air can be stopped from slowly percolating though a house.