Assessing the Impact of Recent Legislation on the Private Rented Sector in Wimbledon
Here in London SW19 it’s estimated that up to 30% of the 25,000 or so privately owned properties in the borough are rented. The private rented sector (PRS), is in the throes of being significantly reshaped by both legislative reforms and shifting landlord sentiment. The latest developments, particularly the Renters’ Rights Bill and energy efficiency requirements, are generating significant debate and uncertainty, writes Zah Azeem, Partner at the Wimbledon-based Chartered Surveyors Scrivener Tibbatts Ltd, London leasehold valuation specialists.
There is mounting apprehension regarding the upcoming energy-efficiency standards. Under proposals outlined by Ed Miliband, all new tenancies must meet EPC C standards by 2028, with all properties achieving this benchmark by 2030. From a surveyor’s perspective, the implications are considerable: 19% of landlords report that their properties already achieve a C rating or higher, while 63% believe their properties are at or above average but are seeking guidance on necessary improvements.
Among those landlords who remain in the PRS, there is a notable trend towards portfolio reduction. In a survey reported by Property 118 half intend to downsize, 40% plan to maintain their holdings, and a mere 4% are contemplating expansion. This contraction is particularly apparent in London, where property values and regulatory pressures are acutely felt.
One prominent concern among landlords is the risk of pet-related damage. The Renters’ Rights Bill now grants tenants a statutory right to keep pets, which landlords can only refuse on ‘unreasonable’ grounds. This shift inevitably introduces new considerations for both property maintenance and insurance, as many landlords in this area are now reassessing their willingness to accommodate pets.
The current form of the Bill also casts doubt over the future of student lettings. Nearly half of surveyed landlords (47%) indicated they would cease renting to students if the proposed changes proceed. Of that group, 50% would convert their properties to non-student rentals, while 40% would exit the market entirely. In an area like SW19, which is home to a mix of student and professional tenants, this could significantly diminish the availability of affordable student accommodation.
More importantly, over half of landlords (55%) express a willingness to invest in upgrades if required, though 39% indicate they are more likely to divest their properties instead. For those of us advising clients in Wimbledon, the challenge lies in navigating these complex requirements while maximising both compliance and asset value.
A Sector in Transition
The PRS sector is undoubtedly shrinking. The imperative for landlords to operate with increased professionalism is now greater than ever. For my clients in SW19 and beyond, remaining well-informed and proactive is crucial in safeguarding their investments and navigating forthcoming changes. With evolving legislation, higher compliance standards, and a shifting landlord profile, it is essential for property professionals and landlords alike to adapt. As always, I advise keeping abreast of regulatory developments, seeking expert guidance, and proactively planning for the future.
If you would like to discuss the rental market or something else related to a property valuation please contact Zah via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.
