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Rents across the UK are set to rise considerably faster than house prices over the next three years, according to the chief operating officer of one of the UK’s leading property franchises.
Dorian Gonsalves, of Belvoir, which has a network of 300-franchised offices nationwide, predicts a 15% increase in rents by 2020, on the back of what he described as “a raft of recent anti-landlord government policies in the past year”, although the rise in rents will vary from region to region.
New measures include increasing stamp duty costs, introducing tougher mortgage lending criteria, and removing mortgage tax relief for landlords, which could see many landlords make a loss. In addition, the government’s failure to increase the availability of social housing for rent has resulted in a real shortage of good quality rental accommodation in the private rental sector, according to Gonsalves.
He commented: “Throughout 2017 Belvoir will continue to work with decision makers and we hope that some of the government’s recent changes will either be reversed or incentives will be launched to help drive up the supply of rental properties. This would then bring down rents and benefit millions of tenants, making for a healthier rental sector.”Related: Rents to rise faster than house pricesGonsalves continued: “People from all walks of life, including students, migrant workers and professionals with families, are struggling to meet stringent lender affordability ratios.
“When someone is not in a position to buy, they obviously start looking for somewhere to rent, but unfortunately, government policies seem to lack any direction, and have done nothing to benefit either landlords or tenants, so tenants could find it more difficult to find good quality suitable accommodation in 2017 and beyond.”
Full/source articleSEE ALSO - Housing expert warns of tax change impactUP NEXT - 17 property market predictions for 2017DON'T MISS - Changing landlord dynamics & rent rises NOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I would like to see the predictions for the last 5 & 10 years and see how close they were to reality - does anybody have these?
I personally think 15% rise is possible but it will take 5 years so if you are staying in BTL it will help pay your tax bill
That's of course if you have Mortgages
Learn Change and Adapt ?????
The pace at which rents are rising is set to triple next year as landlords force tenants to bear their rapidly increasing costs, according to one expert.
The chief executive of property investment platform Landbay is predicting that rental inflation, which has slowed this year amid a tumultuous year for landlords, will see a spurt next year with rents rising 3 per cent in 12 months - almost tripling this year's inflation rate.'When you look at the raft of regulatory, political and economic challenges coming to bear on the buy-to-let sector in 2016, it’s clear to see why rental growth has slowed this year, but the fall in rents is unlikely to last,' he says. 'We expect the tide will turn in 2017.' - John Goodall, CEO of LandBay.Full/source story
For anyone wondering, 15% rise in 4 years would be a 3.5% yearly increase.
Tweet from Great Buy to Let debate which took place in London earlier today:
Rental price growth has now fallen below the general rate of inflation, research shows.
HomeLet’s February Rental Index showed that new rents had risen 0.8% year-on-year, below the general inflation rate of 1.8% recorded in the same month.
The rental inflation figure is also well below the high of 4.7% recorded as recently as last June.
On a monthly basis rents were up 0.7% at £895 in February.
London still remains the area with the highest average rents on new tenancies, at £1,520, while the lowest was £596 in the East Midlands.Source article