At this time of year, people want guidance and tips on how to make the most of the 12 months which lie ahead. This is the case for people in their personal lives and in their professional life. If you are a landlord, you want to know what is expected to happen in your industry, as this will help you make informed decisions.
Propertymark is one of the leading names in the UK housing and rental market, so when they release figures and guidance, it is always worth paying attention. Looking ahead to 2020, the organisation spoke to members about what they expect to happen this year.
Of all the letting agents who responded, 84% said they believe rent prices will increase in 2020. When the same question was asked looking ahead to 2019, only 65% of letting agents tipped rent prices to increase. This is a considerable increase in respondents believing there will be price rises, which suggests there is a growing number of agents who think this way.
Demand for rental property should increase
61% of respondents expect demand for rental property will continue to rise. However, 68% of the agents who responded believe there will be a reduction in the number of landlords operating in the private rental sector. 68% of respondents also stated they expect landlords taxes to increase in 2020.
If the demand for rental property increases, while the supply of rental property falls, market forces suggest rental fees will rise. There is no denying many landlords feel under pressure, and there is considerable anecdotal evidence which states landlords want to leave the industry. The volume of regulations landlords must contend with is a growing issue, which is why landlords should seek support and assistance if they are struggling to keep up with the market.
Bridgend landlords can rely on us for assistance
At Hunters Bridgend, we are pleased to say we have assisted a considerable number of local landlords, in a wide variety of ways. If there is a particular area of your business where you need help, please come and speak to us. If you need help in general, we are also more than happy to assist you.
David Cox is the Chief Executive of ARLA Propertymark, and he said: “For far too long, successive governments of all political persuasions have passed significant amounts of complex legislation for landlords. As a result, much of this year has dampened landlords’ appetites to invest and expand their portfolios, with many consolidating their assets, or choosing to step away from the sector altogether. This has impacted tenants most, who have restricted supply and have been faced with less choice and paying higher rents.”
He continued by saying; “Looking ahead to 2020, we hope the Government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords. This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.”
If you are a Bridgend landlord, and you require assistance in 2020, please contact Hunters Bridgend, and we will be more than happy to assist you.