Flatfair says it enjoyed a year of substantial growth in 2024 as its No Deposit tenancies increased by 26% year-on-year with more letting agents and build to rent operators rushing to jump on board.
While 2024 might have been a year of swings and roundabouts for the lettings sector build to rent has enjoyed the expansion many predicted.
Overall the private rented sector (PRS) though has seen more landlord departures, increased regulation and faces the prospect of tougher energy efficiency standards which are set to cost billions.
Rental prices rose 13.2% over the last 12 months which inevitably meant an increase in the cost of traditional deposits.
COST-OF-LIVING
And when combined with the lingering effects of the cost-of-living crisis, this resulted in more hard-pressed tenants looking to save money on their upfront move-in costs.
Gary Wright, Chief Executive at flatfair, says: “Average traditional deposits have risen to £1580 which is quite an eye watering amount, especially when considering tenants must also pay their first month’s rent upfront.”
“Our deposit alternative, however, has saved tenants an average of £1291 on their upfront move-in costs.”
He adds: “In total, we saved tenants £16.4 million throughout the year – money which is better spent making their house a home, at a time when they most need it.”
PRESSURE COOKER
Landlords have also come under financial pressure throughout the year.
The Renters’ Rights Bill is still making its way through Parliament, and will bring additional regulatory and compliance measures when it becomes law next Spring.
Government proposals to introduce a new minimum energy efficiency standard for all PRS properties by 2030 has prompted some landlords to leave the sector altogether.
Homes in the PRS must achieve a rating of EPC ‘C’ by the end of the decade.
RENTERS’ RIGHTS BILL
Wright says: “There is no doubt that landlords are under pressure and the cost of meeting the new energy efficiency standards is estimated at between £20bn and £25bn across England, Wales and Scotland.
“What they are looking for is security and a reason to be optimistic – especially since the Renters’ Rights Bill is set to abolish Section 21 evictions and assured shorthold tenancy agreements when it comes into force next year.”
PROPERTY PROTECTION
He adds: “More landlords turned to No Deposit than ever before this year and that’s because we provide them with market-leading protection on their property of up to 10 weeks for damages and/or rent arrears – double the amount possible with a traditional deposit and it doesn’t cost them anything at all.
“Even agents benefit because our deposit platform is slicker, more efficient and reduces the potential of human errors in the deposit process – leaving them more time to concentrate on other tasks which are going to drive revenue for their business.”
Over the last 12 months flatfair has signed up a number of new partners including Andrews Property Group; Dandara Living; Reed Residential; The Property Centre; Turay Homes and urbanbubble.
