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Kinetic Money, Grosvenor House, Birmingham (2026)

20/06/2025

𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗟𝗲𝗮𝗱𝗲𝗿𝘀 𝗖𝗮𝗹𝗹 𝗳𝗼𝗿 𝗖𝗹𝗮𝗿𝗶𝘁𝘆 𝗼𝘃𝗲𝗿 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟮𝟭 𝗘𝘃𝗶𝗰𝘁𝗶𝗼𝗻𝘀

Despite the serious implications of dismantling Section 21 evictions, the government remains conspicuously vague on how it intends to equip the judicial system for the coming shift—an omission that has drawn the ire of major property industry stakeholders.

In a joint letter to Baroness Taylor of Stevenage, Minister in the House of Lords, three prominent industry bodies—the British Property Federation, the National Residential Landlords Association (NRLA), and The Lettings Industry Council—have voiced mounting concerns over the government's lack of preparation and transparency.

With the House of Lords set to revisit the Renters’ Rights Bill on July 1st, a piece of legislation that promises to bring an end to “no-fault” evictions, tensions are escalating. The bill’s lofty ambitions are clashing with a judicial system already buckling under pressure. Currently, landlords pursuing “at fault” Section 8 evictions often endure delays stretching beyond half a year, especially in cases involving tenants who have ceased rent payments altogether.

Although the government previously committed to ensuring that the courts would be “ready” to absorb the additional caseload such reforms would generate, it has not articulated what that readiness entails in any practical sense—nor how it will be achieved.

Ben Beadle, Chief Executive of the NRLA; Melanie Leech, Chief Executive of the British Property Federation; and Theresa Wallace, Chair of The Lettings Industry Council, stated in unison: “We remain extremely disappointed by the lack of substantive responses to the concerns we have consistently raised with ministers.

“We want the Bill to work in practice and enjoy the confidence of good landlords. However, unless clear answers to the issues we have raised are forthcoming from the government, those very landlords have every reason to be concerned.”

Their criticisms do not end with court readiness. The coalition of property leaders also raised red flags about another controversial proposal within the Bill—empowering tenants to contest rent hikes they believe exceed market value through a tribunal. In theory, it may seem fair. In practice, the absence of a centralized, reliable dataset to define local market rents renders the mechanism impractical and potentially chaotic.

Further complicating matters is the government’s silence on its intention to curtail landlords’ ability to regain possession of properties in scenarios where tenants experience delays in benefit payments. Currently, landlords are kept in the dark about whether a tenant is claiming benefits—a structural opacity that only becomes apparent once a possession case reaches court. This blind spot leaves landlords vulnerable, while simultaneously increasing the likelihood of costly and prolonged litigation.

Lastly, and perhaps most crucially for operational clarity, there remains a troubling absence of detail regarding the timeline for implementing the reforms once the Bill receives Royal Assent. According to the signatory organisations, establishing a “smooth transition” is not merely desirable—it is imperative.

19/06/2025

𝗕𝗮𝗻𝗸 𝗼𝗳 𝗘𝗻𝗴𝗹𝗮𝗻𝗱 𝗛𝗼𝗹𝗱𝘀 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲 𝗮𝘁 𝟰.𝟮𝟱%, 𝗖𝗶𝘁𝗲𝘀 𝗟𝗮𝗯𝗼𝘂𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 𝗮𝗻𝗱 𝗚𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗥𝗶𝘀𝗸𝘀

The Bank of England (BoE) held its main interest rate at 4.25% on Thursday, as expected. The Monetary Policy Committee (MPC) highlighted concerns about a weakening labour market and elevated energy prices linked to geopolitical developments in the Middle East.

The decision to maintain the current rate came amid ongoing global uncertainty and persistent inflationary pressures. The MPC voted 6–3 in favour of holding rates steady. Deputy Governor Dave Ramsden joined external members Swati Dhingra and Alan Taylor in supporting a 25 basis point cut.

A Reuters poll of economists had forecast a 7–2 vote to hold rates following the BoE’s decision last month to reduce borrowing costs. That move marked the fourth rate cut since August 2024.

"Interest rates remain on a gradual downward path," said BoE Governor Andrew Bailey. However, he noted that monetary policy decisions were not predetermined. "The world is highly unpredictable. In the UK we are seeing signs of softening in the labour market. We will be looking carefully at the extent to which those signs feed through to consumer price inflation," he added.

While recent tensions in the Middle East were not the main factor in the MPC's June decision, the BoE indicated it would monitor the situation closely.

"Energy prices had risen owing to an escalation of the conflict in the Middle East. The committee would remain vigilant about these developments and their potential impact on the UK economy," the Bank said in a statement.

The majority of economists expected the Bank Rate to remain unchanged at 4.25%. A majority also anticipate a rate cut in August, followed by another before the end of the year.

Market expectations are currently pricing in two additional quarter-point cuts by the BoE, which would bring the rate to 3.75% by December 2025.

The Bank maintained its forward guidance, reaffirming that it would continue to take a "gradual and careful" approach to further monetary easing.

In its accompanying analysis, BoE staff presented a less negative view of the potential impact of U.S. President Donald Trump’s trade tariffs. They suggested the global economic effects might be less severe than projected in May, although trade-related uncertainty remains a factor for the UK economy.

Inflation forecasts were broadly unchanged, with a projected peak of 3.7% in September and an average of just under 3.5% over the second half of the year.

The Bank now expects the UK economy to grow by approximately 0.25% in the second quarter, a modest improvement on its May forecast. However, it noted that underlying growth remains subdued.

Since mid-2024, the BoE has reduced its interest rate by a full percentage point. This mirrors the U.S. Federal Reserve, which on Wednesday kept its rate in the 4.25%–4.50% range. The European Central Bank (ECB), facing less persistent inflation, has cut rates by twice that amount.

Market participants expect the Fed to deliver an additional half-point of easing by year-end, and the ECB to implement a further quarter-point cut.

Earlier on Thursday, the Swiss National Bank reduced its policy rate by 25 basis points to zero, citing declining inflationary pressures and increasing concerns about the impact of global trade tensions on inflation and economic activity.

18/06/2025

𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗦𝗹𝗶𝗴𝗵𝘁𝗹𝘆 𝗗𝗼𝘄𝗻 𝗯𝘂𝘁 𝗡𝗼 𝗖𝗵𝗮𝗻𝗴𝗲 𝘁𝗼 𝗕𝗼𝗘 𝗥𝗮𝘁𝗲 𝗘𝘅𝗽𝗲𝗰𝘁𝗲𝗱

Inflation in the United Kingdom eased in May, aligning with the Bank of England’s projections, as policymakers brace to maintain current interest rates amidst a turbulent geopolitical backdrop marked by intensifying hostilities in the Middle East. While financial markets steadied for the BoE’s decision, the economic undercurrents remain anything but calm.

According to the Office for National Statistics, consumer prices grew by 3.4% year-on-year, precisely as anticipated by a Reuters economist survey. This data, though unsurprising, comes at a difficult moment. It is not expected to change prevailing expectations: analysts and investors remain convinced that Thursday’s policy announcement will bring no rate adjustment.

The pound edged slightly higher against the U.S. dollar following the data’s release—a modest signal in an otherwise restrained market response.

With the conflict between Israel and Iran now stretching into its sixth day and global oil prices surging more than 14% in just over a week, the Bank’s already-cautious tone is likely to become even more deliberate.

“The focus now will turn to geopolitical events and the rise in energy prices,” noted Sanjay Raja, Deutsche Bank’s chief UK economist. “This will undoubtedly complicate the (BoE's) task. Higher energy prices will mean higher inflation expectations.”

Yet even as global energy costs stir inflationary fears, domestic signals offer a glimmer of restraint. Britain’s cooling labour market, Raja suggested, may help counterbalance the pressure. A fragile equilibrium, perhaps—but one the BoE will be keenly watching.

Of particular interest to the central bank is services price inflation, which receded to 4.7% in May from 5.4% in April, right in line with BoE forecasts and just under the 4.8% median forecast from Reuters. Moreover, the Bank took note of its core inflation measure—a refined index that excludes food, energy, rents, and holidays—which dipped below 4% for the first time since February 2022. Encouraging, certainly—but not without caveats.

Earlier this month, the ONS acknowledged a misstep: April’s CPI figure of 3.5% had been overstated due to flawed car tax data. Although the official record remains unchanged, corrected figures were baked into May’s calculation. Notably, airfare costs plummeted, reversing a sharp Easter-driven increase in April.

Still, volatility remains. In April, rising costs for utilities—gas, electricity, and water—combined with heavier employer tax burdens, pushed inflation up sharply from 2.6% in March. Meanwhile, food prices climbed 4.4% year-on-year in May, the steepest rise in more than twelve months, dealing a particular blow to lower-income households.

Goods inflation accelerated too, advancing 2.0%, the fastest pace since November 2023.

Not everyone inside the BoE is singing from the same hymn sheet. Some officials dispute a critical assumption made at the May meeting: that the recent uptick in inflation is unlikely to embed itself into broader pricing behaviour. It would appear that dissent lingers below the surface.

Markets remain resolute. As of Wednesday, traders priced in an 89% probability that the BoE would stand pat this week. Nonetheless, two 25-basis-point rate cuts are still anticipated before year’s end.

Back in May, the central bank executed a quarter-point rate reduction, bringing the benchmark rate to 4.25%, though the decision was far from unanimous. It was a three-way split: two MPC members pushed for a deeper cut, while two others—including the influential Huw Pill—argued for no change at all.

At that time, the BoE forecast inflation would top out around 3.7% later in the year. Some economists, however, suspect April may already have marked the peak—unless, of course, the Middle East conflict injects fresh momentum into price growth.

17/06/2025

𝗙𝗶𝘃𝗲 𝗔𝗴𝗲𝗻𝘁𝘀 𝗘𝘅𝗽𝗲𝗹𝗹𝗲𝗱 𝗯𝘆 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗢𝗺𝗯𝘂𝗱𝘀𝗺𝗮𝗻

Three estate agents alongside two letting agents have been expelled from The Property Ombudsman scheme for their failure to honour compensation awards owed to consumers.

The companies now publicly named and disgraced include Prime Property Agents, Cowlings Estate Agents, Nexmove, The Jolly Landlord, and Lilypad Estates London.

This expulsion has triggered notifications to both local and national Trading Standards, as well as to major property portals, as part of the formal process.

Lesley Horton, interim ombudsman of The Property Ombudsman, spoke on the gravity of these actions: “Expulsion is a last resort and that’s evident in the low numbers.

“We always strive to be very clear and explain the evidence that has led to our decisions and any award we make, both to businesses and to consumers.

“This approach works well, with 99% of businesses complying with our decisions and paying awards when directed.

“We also highlight where agents can improve their service and proactively carry out audits to check that they are following best practice and regulations.”

Among the cases, Prime Property Agents, based on Clarendon Street in Nottingham, failed to return a buyer’s £7,200 reservation fee after the sale collapsed. Rather than adhering to their own terms and conditions, the agency neglected to offer any alternative properties or reimburse the buyer fully. The Property Ombudsman consequently awarded the buyer £7,400—comprising the full reservation fee plus £200 for distress caused.

In another instance, Cowlings Estate Agents, located on The Quay in Bideford, Devon, were ordered to compensate £1,087 after neglecting to verify proof of funds for a property sale. This oversight led to the sellers withdrawing from the deal. The agent had incorrectly confirmed in the Memorandum of Sale that the buyer was cash-ready, only for sellers to discover that financing was still being arranged. When renegotiated terms failed, the sale fell through, and The Property Ombudsman upheld the complaint, awarding compensation to cover the sellers' incurred costs.

Nexmove, officially registered as NXMVETGN Ltd and operating on Den Road in Teignmouth, Devon, similarly failed to disclose the source and availability of a buyer’s funds until after the sale failed. Without making reasonable inquiries into the buyer’s funding, the agent inaccurately assured sellers that the buyer was purchasing with cash. As a result, The Property Ombudsman ordered a £400 award.

The Jolly Landlord, situated on Dunnings Lane in Bulphan, Essex, became embroiled in a dispute for not transferring a tenant’s deposit and first month’s rent to the landlord. The Ombudsman’s investigation concluded that these actions directly caused the landlord to terminate their management agreement with The Jolly Landlord and seek to end the tenancy agreement. Despite the tenancy still being technically active and the landlord not attempting to retrieve funds from the agent directly, £350 was awarded to the tenant to compensate for the unnecessary stress and inconvenience.

Lastly, Lilypad Estates London, operating from Honor Oak Park in Forest Hill, withheld eight months of rental payments from a landlord and ceased all communication. After the dispute was fully examined and upheld, the agent was ordered to pay a £200 award plus the outstanding rent.

These firms were subsequently referred to The Property Ombudsman’s Compliance Committee, which decided on their expulsion from the scheme. So far, nine businesses have faced expulsion in 2025 alone.

16/06/2025

𝗥𝗲𝗽𝗼𝗿𝘁 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗚𝗿𝗼𝘄𝗶𝗻𝗴 𝗧𝗲𝗻𝗮𝗻𝘁 𝗗𝗲𝗺𝗮𝗻𝗱 𝗳𝗼𝗿 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗙𝗲𝗮𝘁𝘂𝗿𝗲𝘀

There is a significant increase in demand from tenants for energy-efficient features such as heat pumps, solar panels, and electric vehicle (EV) charging infrastructure, according to the Property Investor Report 2025 published by Handelsbanken.

The report found that 77% of UK property investors are experiencing increased demand from tenants for sustainable upgrades. In addition, 92% of respondents believe tenants are prepared to pay higher rents for properties that incorporate green features in both residential and commercial settings.

Richard Winder, head of sustainability at Handelsbanken plc, commented: “We’ve seen landlords’ thinking mature over recent years in response to clear market signals.

“Investing in sustainable features offers a rare opportunity to woo good tenants, grow revenues and preserve tomorrow’s financial value, while cutting long-term operating costs.

“As regulations tighten and our worsening climate moves centre stage, the clamour for more sustainable and resilient buildings will only grow.”

Although current market conditions present challenges for property investment—such as the 5% stamp duty surcharge and the anticipated impact of the forthcoming Renters’ Rights Bill—many investors remain active.

According to the report, 54% of property investors plan to increase the size of their portfolios over the next 12 months. 80% expect portfolio values to rise during the same period.

James Sproule, UK chief economist at Handelsbanken, said: “Sustainable properties aren’t just good for the planet, they’re good for business. In a market where competition is fierce and tenants have choices, going green is the edge that can make the difference.
Those who adapt will thrive; those who don’t risk being left behind.”

The findings suggest that environmental considerations are becoming more central to property investment strategy, with sustainability now viewed as a key factor in both tenant retention and long-term asset value.

13/06/2025

𝗥𝗲𝗻𝘁𝗮𝗹 𝗣𝗿𝗶𝗰𝗲𝘀 𝗘𝘅𝗽𝗲𝗰𝘁𝗲𝗱 𝘁𝗼 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗔𝗺𝗶𝗱 𝗥𝗲𝗱𝘂𝗰𝗲𝗱 𝗟𝗮𝗻𝗱𝗹𝗼𝗿𝗱 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆 𝗮𝗻𝗱 𝗛𝗶𝗴𝗵𝗲𝗿 𝗧𝗲𝗻𝗮𝗻𝘁 𝗗𝗲𝗺𝗮𝗻𝗱

Rental prices in the UK are expected to rise in the coming months, according to the latest RICS UK Residential Survey. The forecast is driven by a combination of declining new landlord instructions and a continued increase in tenant demand.

In May, a net balance of +22% of chartered surveyors reported stronger demand from tenants. At the same time, a net balance of -34% recorded a fall in landlord instructions. Reflecting these trends, a net balance of +43% now expects rents to increase in the near term.

Data from Zoopla supports the current picture, indicating annual rental inflation at 2.8%, the lowest rate recorded since July 2021.

Tarrant Parsons, senior economist at RICS, stated: “Sentiment across the UK residential property market remains somewhat subdued, with ongoing uncertainty around global trade policies and the dampening effect of transactions being brought forward ahead of the Stamp Duty changes at the end of March continuing to weigh on buyer activity.”

New buyer interest continued to decline, with a net balance of -26% of respondents reporting a fall in enquiries during May. This marks the fifth consecutive month of decline. Agreed sales also decreased, with a net balance of -28% reporting a fall.

Regarding prices, a net balance of -8% saw a reduction in house prices over the month. Looking ahead, however, sentiment is more positive, with a net balance of +34% expecting prices to rise over the next twelve months.

Commenting on recent government policy developments, Simon Rubinsohn, chief economist at RICS, said: “RICS welcomes this week’s announcement of the government’s commitment to a longer-term affordable housing settlement. This should provide greater certainty and support more strategic delivery.

The creation of a new housing finance vehicle via Homes England is also a potentially important step in boosting supply, particularly if it improves access to funding for smaller developers. Together, these measures could help address the UK’s chronic supply shortfall and support broader economic stability.

“Importantly, today’s announcements also build on the planning reforms announced earlier in the year, reported to be assessed as adding £6.8 billion to the economy. These new policies highlight the wider economic gains that could flow from an overall better functioning housing market.”

The data suggests that pressure on the rental sector may increase in the short term, while the sales market continues to face subdued activity. Policy measures aimed at improving affordability and supply are seen as constructive, though their impact will depend on implementation and uptake across the sector.

09/06/2025

𝗔 𝗧𝗵𝗶𝗿𝗱 𝗼𝗳 𝗨𝗞 𝗔𝗱𝘂𝗹𝘁𝘀 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗲𝗱 𝗶𝗻 𝗕𝘂𝘆-𝘁𝗼-𝗟𝗲𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁, 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝗙𝗶𝗻𝗱𝘀

New research commissioned by Market Financial Solutions indicates continued interest in the buy-to-let (BTL) sector, with a third of UK adults expressing a desire to own a rental property in the future. The findings challenge recent suggestions that the market is losing its appeal.

The lender instructed Opinium to survey 2,000 UK adults. Of those surveyed, 33% said they would like to become BTL landlords. Interest among younger individuals was notably higher: 54% of respondents aged 18 to 34 expressed an interest in BTL ownership, compared with just 14% of those aged 55 and over.

The study also found that 60% of respondents view property investment as a reliable method for building long-term wealth. In addition, 37% said they would prefer to invest in BTL rather than in stocks and shares, and 53% agreed that real estate is a “safe and stable asset to invest in.”

When asked how they would allocate a hypothetical £1 million lottery win, 58% said they would choose to invest at least part of the sum in property. Among those aged 18 to 34, this figure rose to 68%. However, the research also identified concerns among younger respondents, with 57% stating they resent how much harder it is to invest in BTL today compared to previous generations, citing rising house prices as a key obstacle.

Paresh Raja, chief executive of Market Financial Solutions, said: “It has become popular over the past decade to bash buy-to-let investing as being increasingly unappealing. Clearly, however, that is far from the case.”

Raja acknowledged the challenges facing landlords and prospective investors: “The rise in house prices and borrowing costs, coupled with tighter rules and regulation in the rental market, has undoubtedly caused challenges for both current and prospective landlords. I am sure this will have given some people reason to question whether BTL ownership is the right route for them, but these survey results underline the love affair that the UK has with bricks and mortar.”

He added that the long-term potential of property remains a strong draw for many investors: “Many people aspire to homeownership and property investment. The stability of the market, along with the opportunity for the value of the asset to rise in the longer-term alongside a rental income, all contribute to this. Indeed, if BTL mortgage rates do come down in the coming months as expected, we may well see more first-time landlords entering the market.”

While structural challenges persist, the data suggests that investor sentiment towards buy-to-let remains resilient, particularly among younger adults.

05/06/2025

𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗨𝗿𝗴𝗲𝗱 𝘁𝗼 𝗥𝗲𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿 𝗘𝗻𝗲𝗿𝗴𝘆 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 𝗧𝗶𝗺𝗲𝘁𝗮𝗯𝗹𝗲 𝗳𝗼𝗿 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗥𝗲𝗻𝘁𝗮𝗹𝘀

The Government is facing increasing calls to revise its proposed timetable for improving energy efficiency standards in privately rented homes, following warnings from the National Residential Landlords Association (NRLA) that the current plan is unworkable.

Under the proposed regulations, all privately rented properties would be required to achieve a minimum energy efficiency rating of band C. This would apply to new tenancies from 2028 and to all tenancies from 2030.

The NRLA has raised concerns about the feasibility of this timeline, noting that it would allow less than two years to carry out energy efficiency improvements in over 2.5 million properties.

The association also highlighted a shortage of skilled tradespeople as a significant barrier to meeting the proposed deadlines. Kingfisher Group—which owns Screwfix, B&Q, and Tradepoint—has reported that the shortfall in qualified tradespeople in the UK is expected to reach 250,000 by 2030.

In addition to workforce constraints, the NRLA has criticised the lack of a clear funding strategy to support landlords with the required upgrades. The Government has yet to respond to recommendations from the Committee on Fuel Poverty, which has called for a dedicated funding package to support investment in energy efficiency.

In its official response to the consultation, the NRLA proposed a two-stage approach. This would involve meeting building fabric standards, such as insulation, by 2030, followed by further measures—such as the installation of smart meters and more efficient heating systems—by 2036.

Ben Beadle, Chief Executive of the NRLA, said: “We want all private rented properties to be as energy efficient as possible. However, tenants are being sold a pup with timelines that are hopelessly unrealistic.

“The idea that millions of homes can be retrofitted in less than two years is detached from all reality, not least given the chronic shortage of tradespeople the sector needs to get the work done. Noble ambitions mean little without practical and realistic policy to match.”

While there is broad support for improving the energy efficiency of rental housing, industry representatives are warning that without a more realistic timeline and a clear implementation strategy, the proposed regulations may be difficult to deliver in practice.

03/06/2025

𝗡𝗲𝗮𝗿𝗹𝘆 𝗛𝗮𝗹𝗳 𝗼𝗳 𝗟𝗮𝗻𝗱𝗹𝗼𝗿𝗱𝘀 𝗣𝗼𝗶𝘀𝗲𝗱 𝘁𝗼 𝗛𝗶𝗸𝗲 𝗥𝗲𝗻𝘁𝘀 𝗔𝗺𝗶𝗱 𝗜𝗻𝗰𝗼𝗺𝗶𝗻𝗴 𝗥𝗲𝗻𝘁𝗲𝗿𝘀' 𝗕𝗶𝗹𝗹

A substantial portion of the UK’s buy-to-let landlords—approximately 44%, according to newly released survey findings from Landbay—are preparing to raise rents in advance of anticipated regulatory changes brought about by the forthcoming Renters’ Rights Bill.

This is a proactive strategy aimed at mitigating future constraints and potential financial pressures triggered by the incoming legislation.

The crux of the new bill lies in its bid to curtail arbitrary rent increases. Landlords, under its provisions, will be permitted only one rent increase annually, strictly to align with current market rates—defined as the rent that would reasonably be commanded were the property newly listed for let. However, this framework doesn’t leave tenants powerless: renters who suspect rent demands have strayed beyond fair market values can appeal to a first-tier tribunal.

Adding to the structural transformation, the bill proposes the elimination of Section 21 evictions, a clause historically used by landlords to repossess properties without giving tenants specific cause.

Rob Stanton, sales and distribution director at Landbay, sounded a note of caution regarding the ripple effects of the legislation: “This sharp rise in rents in the short term shows the unintended consequence of this new regulation, as landlords look to act now and pre-emptively raise rents in fear of future cost implications or difficulties, and to protect their investments.

“By forcing the hand of landlords in this way, there is a real risk of worsening the cost-of-living crisis that so many private renters are currently facing.

“Any good and reasonable landlord will agree with protecting the rights of tenants, but they also believe that the rights of the property owner should be protected too.

“There’s no doubt we need to balance reform with support and safeguards for landlords to make sure that the rental market continues to play the important role it does in the UK’s housing mix.

“While we may not be able to influence government policy or regulation, our role as a BTL lender is to ensure our product range is competitive and delivers exactly what landlords need – whether that’s for purchases or refinancing.”

The data also offers insight into who is most likely to act on this strategy of rent escalation. Landlords managing mid-sized portfolios—specifically, those owning between four and 10 properties—are statistically the most inclined to raise rents, accounting for 32% of the total. Not far behind are those with 16 to 30 properties, comprising 28% of that cohort.

Geographically, the South East of England emerges as the most affected region, with landlords there expected to implement increases at a higher rate. The North West follows closely behind, indicating that the impact of the legislation will not be evenly distributed across the country.

In short, while the Renters’ Rights Bill aims to establish a more equitable and stable rental landscape, its pending arrival appears to be producing exactly the kind of economic turbulence it seeks to prevent—at least in the short term.

29/05/2025

𝗛𝗠𝗢𝘀 𝗢𝗳𝗳𝗲𝗿 𝗛𝗶𝗴𝗵𝗲𝗿 𝗬𝗶𝗲𝗹𝗱𝘀 𝗗𝗲𝘀𝗽𝗶𝘁𝗲 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗖𝗼𝘀𝘁𝘀, 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝗙𝗶𝗻𝗱𝘀

The average cost of converting a standard three or four-bedroom property into a six-bedroom house in multiple occupation (HMO) is £68,067, according to recent research conducted by Excellion Capital.

With the average purchase price for a three or four-bedroom property in England currently at £444,273, the total initial investment required—including conversion—stands at approximately £512,340.

Once converted, the average HMO in England generates £711 in monthly rent per room, equating to £4,269 for a fully let six-bedroom property. This results in an average gross yield of 10%, notably higher than the typical 5–6% yields found in the broader residential market.

Regional differences remain significant. The highest average yields are seen in the North East at 12.5%, followed by the North West at 11.5%, and Yorkshire and the Humber at 11%. In contrast, London records the lowest average yield at 6.6%, while the South East returns 8.1%.

In specific urban markets, yields remain strong. Manchester reports an average gross yield of 12.2%, with an average resale price of £329,163 and monthly rental income of £4,050. Newcastle achieves an average yield of 11.9%, while Birmingham averages 10.6%.

Excellion Capital notes that the cost of conversion varies depending on the condition of the property. Minor cosmetic works and compliance upgrades for HMO licensing are significantly less expensive than more substantial refurbishments, which may include damp treatment or the installation of new kitchens and bathrooms.

Robert Sadler, vice president of real estate at Excellion Capital, commented: “We are seeing a lot of property investors in the residential space turn their attention to the bustling HMO market, especially in the regions.

“Particularly outside of London and our other major cities, investors are snapping up relatively cheap three or four-bed terraced homes and converting them to six-bed HMOs with extraordinary results when it comes to returns and yields.”

Sadler also outlined the advantages of HMO financing: “HMOs, with a few exceptions, are very popular with lenders. Because the required conversion works tend to be relatively light, investors can usually fund both the acquisition and the works with a bridge loan.

“This is ideal as bridge loans complete much faster than development loans and require much less oversight by the lender.”

He continued: “Another advantage is that lenders provide very high leverage on HMO bridge loans (75% against the purchase price plus 100% of costs).

“This means that the upfront equity requirement for the investor can actually be quite low compared to other investments.

“It is important here to choose a lender that will measure the loan against the income producing value rather than the vacant value as this can make a big difference to the final loan amount.”

Regarding longer-term financing, Sadler added: “Once the conversion is complete, the investor can repay the loan with very favourable investment finance (best rates below 6% fixed). Finally, if the investor can buy portfolios of HMOs and get to a loan amount of £1m or above, they can usually obtain better pricing from lenders. Large portfolios of retained HMOs can create a lucrative long-term income for investors.”

Kinetic Money

20/06/2025

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