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Landlords, time to be informed, not just opinionated. 2018's box of not so 'Quality' surprises.

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Published: 20/12/2017   Last Updated: 20/12/2017 13:15:21   Tags: Lettings, Property, 2018, EPC, Landlords, Tenants

Going into the New Year, there will be many hurdles on the horizon. As Brexit negotiations  linger on, further interest rate rises and the cost of living still rising, we could see substantial changes.
 
It is predicted that for generation rent (20-39 year olds)it will take 19 years to save for a deposit in order to get on the housingladder, without any assistance from family or friends, according to the mostrecent PWC property report, therefore placing further demand on the private  rental market.
 
In terms of the supply of available property, we are anticipating a significant drop overall, with the accidental or small-time landlords forced to make a vital choice whether to retain their current tenantsand renew at the same or a reduced rent, or to ultimately sell up, as the costs will become to much to bear.
 
Major factors contributing to this decision will includefurther reductions on landlord’s fixtures & fittings allowance, mortgage tax relief and minimum energy standards of rating E (https://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents).
 
The latter is predicted to see up to 300,000 propertiesbeing withdrawn from the private rental market nationwide as the costs of bringing them up to standard will be too high.
 
Landlord & agents are also having to factor in the looming tenant fee’s ban, with ARLA Propertymark advising to prepare for the ban coming into force by October 2018. This in turn will push rents upfurther, with the costs inevitably passed onto tenants in the short-medium term.
 
However, plenty of planned positive regulation changes arein the pipeline for 2018, with the ultimate conclusion being fairer regulation of the industry, ensuring housing courts are more reasonable and transparentfor landlords and tenants alike, and continuing to develop more secure longer term tenancies.
 
Overall, the lettings industry is going through some dramatic changes, and the market that we see today will be drastically transformed over the next five years. This change will initially wound most agents and landlords, but with the firm conclusion that the industry will come out the other end stronger, more professional and with a robust reputation among consumers.

Spring has sprung for the lettings market...

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Last Updated: 15/03/2017 15:54:07   Author: Danny Brewer    Tags: Lettings, Market, Lambet, Southwark, SE1

To grasp how the lettings market will react in 2017, it is best to look at the wider economic effects and political changes brought in by the UK government in 2016.

Whilst the number of properties coming to the market was at an all-time high, conversely, rents did not increase as in previous years. Principally it was buy-to-let portfolio landlords attempting to beat the 3% stamp duty deadline so a swathe of new-build SE1 property hit the shelves post April 1st 2016.

Wage increases were also sluggish in comparison to the sharp rise in the cost of living, directly affecting rent affordability. High rents and lower wages did not equal properties going under offer, which in turn created a saturated market. Landlords had to adjust to the stabilising market to ensure they avoided costly void periods.
However, it was not all doom and gloom! The market did settle in the second half of the year and activity levels picked up, further highlighting the resilience of central London, particularly in the traditional heart of Southwark and Lambeth boroughs.

Despite all the negative press in the last few months and the on-going political crises surrounding the UK’s property market, trends indicate that rents will continue to remain strong. According to Savills 2017 forecasts, rental growth is predicted to outstrip sales growth.

This can be attributed to the struggle of the ever-increasing cost to first-time buyers. Consequently, stock levels are predicted to remain high, with fresh instructions appearing daily in the ever-popular Waterloo & Bankside areas.
However too many properties are being brought to market at over-inflated prices by estate agents, eager for an instruction. This bullish approach, fundamentally, costs the landlord money by having a property vacant for numerous weeks.

To achieve quick and effective results, we recommend pricing a property at the true, current, market price; this will ensure landlords  secure a tenant fast, minimising losses by avoiding unnecessary void periods.