2024 year in review
2024 has been a quieter year for us in terms of headline transactions, but a productive one for the underlying portfolio — and an important year for thinking about the regulatory landscape ahead.
The market we wrote about in our mid-year reflection of 2023 has, broadly speaking, continued. Sellers have become more realistic, properties have spent longer on the market, and the gap between asking and achievable prices has narrowed. Our pipeline this year has been fuller than at any point since we started, but we have remained selective — completing one off-market acquisition in the spring, progressing the development plans on our 2023 portfolio and passing on a number of opportunities that simply did not stand up to our underwriting.
Operationally, the existing portfolio has performed well. Demand for quality rental accommodation has remained strong across the locations we operate in, voids have been low, and the rent base has continued to support comfortable debt service even at the higher rates we have all become used to. Where leases have come up for renewal, we have prioritised long-standing tenants and stable income over short-term increases — a stance we expect to continue.
The most significant story of the year, however, is one that has not yet fully played out: the Renters' Rights Bill. As we move into 2025, the legislation is working its way through Parliament and will, if enacted, represent the most significant change to the private rented sector since the Housing Act 1988. We will write more on this in the coming months as the picture becomes clearer, but our early view is that the direction of travel — toward greater security for tenants and clearer obligations for landlords — is not unreasonable, and is broadly consistent with how we have always tried to operate.
Looking ahead to 2025, we expect to be active on both the acquisition and development side, while watching the regulatory picture closely. Wishing you all a happy new year — and if you'd like to discuss anything property-related, do get in touch.