“With the general election
concluded and Brexit on the horizon, 2020 is set to be an interesting year.
There will undoubtedly be changes which will impact landlords, and although
some of the detail remains cloudy at this point, our eight offices are set to
deal with the changing face of the private rental sector (PRS).”
That was our introductory paragraph to last year’s ‘2020 outlook’, and
we were not wrong when we said it was set to be an interesting year. At the
start of last year we, like many other agencies, were expecting a bounce in
activity due to renewed confidence following the General Election (and the
Government’s conviction to leave the UK bringing some form of certainty to the
future). What the market actually experienced was a solid start followed by a
seven week shutdown and enormous dip before rebounding when the market reopened
in May (Figure 1). A soothsayer, we are not! Nevertheless, we have taken a measured
view of the year ahead:
The announcement that the housing market could remain open during the
second national lockdown in England was welcome news. We have had a very busy
few months across all of our offices, with applicant enquiries up year-on-year.
Some applicants are, of course, moving out of London as they work from home
more, while some are relocating for work and others are moving within
Oxfordshire to upsize or downsize. This solid demand has meant that we have
seen many properties letting very quickly – sometimes even before we market
them online. Last week was particularly successful across our offices:
We have seen an increase in the number of home owners contacting us because they are considering letting their property to enable their next move.
We have had an extremely busy summer, with applicant demand being the highest we have seen for the last few years. All types and sizes of properties have been letting well, and in many cases we have secured tenants for some landlords in a matter of days.
A recent report* shows that homes in Oxford take the longest to sell, with properties being on the market for an average of 152 days – more than five months – before being sold. At the same time, we have seen an increase in the number of landlords and home owners contacting us because they are considering letting where they have struggled to sell in recent months.
Home owners letting to buy Let-to-buy is when a home owner rents out their existing home and buys a new one to live in. This can benefit those who have found their next property but are struggling to sell the existing one due to market conditions. Letting out your home could facilitate your onward move and free you up to purchase your ‘dream home’. You could then revisit selling the original property once the market improves, potentially even selling with a tenant in situ.
Quarter 3 has been the most ‘typical’ quarter of 2020. The
usual ‘busy summer months’ saw strong demand for quality properties of all
sizes and locations and we let 10% more properties this year compared to the
same period in 2019. It is no surprise that coronavirus continues to dominate
much of the news; not only is there concern about a second wave or even a
localised lockdown in Oxford, but there is concern of the economic effect over
the coming weeks and months. We approach the autumn and winter with cautious
optimism – more than aware that we are not yet through the woods and this
‘recovery’ could be thrown into chaos.
Oxford office has had an extremely busy summer, letting 109 properties between
the start of June and the end of August. This is impressive not only because it
broke any previous records held for the team, but because they were able to
achieve this success in very challenging times. Many of these properties were
snapped up really quickly, including the examples below.
Oxford City Council has launched a public consultation on two licensing
schemes aimed at improving conditions in the private rented sector (PRS).
Following agreement by the cabinet on 9th September, the council is seeking
views on its intention to:
Extend the current ‘additional’ licensing scheme for houses in multiple occupation (HMOs) until 2026 A house in Multiple Occupation (HMO) is a property rented out by three or more people who are not from one ‘household’ (e.g. a family) but share facilities such as the kitchen and bathroom. In 2011 Oxford became the first council in England to introduce a citywide scheme requiring every HMO to be licensed, ensuring the property meets safety standards among other things. The current scheme is due to expire in January 2021 and consultation is required as a condition of renewing the scheme for another five years.