With some lenders reducing mortgage interest rates and bringing in new fixed rate deals towards the end of 2023, does this signal further drops in 2024 and will this affect the thinking of landlords and those thinking of coming in to the rental market in the short to medium term?
Whilst some lenders, in January 2024, having in fact pulled recent offers and increased rates, is the overall trend downwards?
There are many diverse types of rental accommodation in Norwich from
shared houses, HMO’s, student accommodation to many flats and larger
houses. Rent amounts can vary massively, as in most areas dependent on
the type of accommodation and what is included in the price such as
broadband, energy costs etc.
As in most areas, Norwich offers spare
rooms as well as rooms to rent in HMO’s, many catering for the student
population but also encouraging professional individuals.
OFGEM has announced that the Energy Price Cap will increase from 1 January 2024.
This will affect most consumers who are not on fixed rates tariffs at this time.
The price of energy for a typical household who use gas and electricity and pay by Direct Debit will go up by £94. This will take the price cap from £1,834 to £1,928 per year.
This increase will affect both tenants who pay their own bills or have an energy supply contract and Landlords who include bills in the monthly rent.
In January 2023, Prime Minister Rishi Sunak set out his 3 main economic
priorities for the coming term. Those priorities were to halve
inflation, grow the economy and reduce debt. The Autumn Statement aimed
to reinforce these commitments with a plan to see success on these
fronts. With the rate of inflation at 4.6% in October 2023, the
government claim to have met at least one of those commitments. However,
it is unclear what steps to government took to allow them to claim
ownership of this reduction.
Inflation was widely expected to fall as
the large energy and fuel increases from the previous year dropped out
of the equation.
The UK Government has recently scrapped (October 2023) proposals for changes to Energy Efficiency standards previously due to be introduced in 2028. This was announced in a review of green policies and means the scrapping of proposals to force all Landlords to adopt a minimum standard of energy efficiency for rental properties.