Reports2Go

Why Reporting will be Essential for 2023

There are several reasons landlords and agents might be concerned about property prospects for 2023. First, in the wake of the pandemic, total property income decreased by over £6 billion, representing an overall decline of 11% in the last 5 years. But it’s not all bad news.

Here, we’ll discuss the current state of the market and some things to watch out for during 2023.

Current State and Forecast for 2023

Due to steep hikes in costs and tenant issues, landlords saw an increasing rise in the need for possession actions. In fact, during 2022 repossession claims increased by a startling 106%. Along with the legal fees incurred by these actions, average inflation rates rose by 9.6%.

Some might see this as positive, with average rental prices rising by 10.5% in urban areas and 8.5% in the countryside. However, homeowners must also consider that the squeeze on tenants will have knock-on effects. For instance, according to Zoopla, demand for 2-bedroom and 3-bedroom housing has decreased. Families and renters are turning to smaller properties to tackle increased rental prices and the cost of heating larger homes. And on energy prices, in particular, which have reached 34.0p/kWh (pence per kilowatt hour) for electricity, many are paying closer attention to energy efficiency.

The Zoopla report adds that D and E-rated homes need 25% and 48% more gas to run compared to a C-rated home. With this in mind, landlords will need to consider how they can match these trends in the year to come.

A Closer look at your Portfolio

The first thing will be to look closely at your property portfolio and where your current assets lie. While some experts recommend diversifying portfolios for 2023, it’s wise to first investigate which properties are providing the best yield and how many properties you can acquire now. This is particularly because larger properties may decline in the year to come. One holistic solution is to pay closer attention to your checkout reports.

Using Check-out Reporting to Plan Ahead

When a tenant checks out, it’s the perfect opportunity to get a low down on your property conditions and assets. A comprehensive check-out can help you get the facts straight and make the best decision for your portfolio.

For instance, analysing your checkout report can bring you closer to understanding where you stand regarding energy efficiency, property needs, and improvements needed for 2023.

Panos, 06 January 2023