2018 was a turbulent year for all sectors, what with ‘the B word’ causing unrest, but for landlords and letting agents in London it’s been particularly rough. Renters were leaving The Capital in their droves, longer lets seen rental yields plateau, then there’s the issue of the letting agent fee ban. At times we questioned whether the sector was ever going to be lucrative again, but the future could be brighter.
Rental Sector Predictions for 2019
- Two thirds (65 per cent) of letting agents think rent prices will rise next year, up from 59 per cent when agents were asked the same question last year, looking ahead to 2018.
- More than half (53 per cent) think demand will continue to rise, but over three quarters (78 per cent) think the number of landlords operating in the private rented sector will decline next year, as they are driven out by rising costs.
- In line with this, 67 per cent expect landlords’ taxes to rise again.
Aside from the tax rises, the outlook is positive but, like we said, there is a warning to any landlord looking to reduce the size of their portfolio. 43% of the estate experts who answered Propertymark’s questions, expect house prices to fall next year due to increased supply and a drop-in demand.
This is almost certainly driven by a no deal Brexit with over 46% of buying and selling professionals believing that crashing out of the EU without an agreement will have a negative impact on the housing market.
Chief Executive of NAEA Propertymark, Mark Hayward, said: ‘As we look ahead to 2019, there’s a fog of uncertainty. Brexit is undoubtedly fuelling a sense of apprehension in the housing market, which in turn affects sentiment. With details of the final deal still unknown, both buyers and sellers will continue to hold off on making any decisions. However, this slowdown presents a window of opportunity for first-time buyers who will find more affordable properties, granting them greater bargaining power.
‘We usually see demand spike in the first few months of the year, but the landscape will probably be very different in 2019 as buyers sit on the fence and adopt a ‘wait and see’ strategy until the Brexit deal is complete.’
How We Can Help
At Assist Inventories we are working with Landlords and Letting Agents to help them navigate changes in the sector with our growing team of property professionals bring more than just property inventory services to the table.
By working with us landlords and agents can harness our decades of experience in the sector. Contact us now to talk to us about our services or to book one of our inventory clerks for London right away.