Tamara Price, Lettings Manager, takes a look at some of the findings from a recent ARLA Propertymark survey...
Results have been revealed from a property survey that was conducted by ARLA Propertymark members just ahead of last November's UK general election. The survey found that 84% of letting agents predict that rent prices will rise next year, which is up on the 65% of letting agents who predicted the same this time last year.
The survey also revealed that 61% of letting agents believe demand for rental properties will continue to rise, while 68% believe the number of landlords currently operating within the private rental sector across the UK will decline over the next 12 months, mainly due to the pressure and struggles of trying to meet rising tax costs.
In terms of property sales, just 28% are expecting supply to increase and 32% are predicting an increase in property demand from buyers, while 28% believe house prices will fall over the next year – down from 43% who predicted the same last year - and 58% expect prices to largely remain the same.
Propertymark bosses have given their backing for new regulations to be introduced by the government sooner rather than later.
David Cox, chief executive at ARLA Propertymark, believes that successive governments have added to the strain and difficulties that landlords are now facing having introduced significant amounts of complex legislation. As a result, landlords have been showing less appetite to invest within the UK rental market and expand their portfolios. Instead, many landlords are in fact consolidating their assets and reducing the size of their portfolios, while others are removing themselves from the sector altogether.
Cox highlights the fact that tenants have been impacted the most by this, as a diminishing supply of available rental properties has resulted in less choice on the market along with being asked to pay higher rents.
The hope is that 2020 will see some degree of change, as professional bodies within the property industry are urging the government to recognise the importance of increasing supply for tenants and to use it as a prime opportunity to make the market far more attractive for landlords. This in turn will encourage more landlords back into the market while ensuring that tenants, including those who are most vulnerable, are not at a disadvantage when trying to source a suitable and affordable home to rent.
Change to the private rented sector should make things fairer for all those involved, as opposed to penalising those landlords who provide high quality and affordable properties to the housing market for thousands of tenants up and down the country.
Are you a landlord in Cardiff looking to source the perfect tenant or find appealing rental investment opportunities? If so, contact CPS Homes to discuss your situation with our expert lettings team. With branches in Cardiff Bay, Roath and Cathays, our knowledge of the city is second to none. Call us on 02920 668585, email firstname.lastname@example.org or pop into one of our branches.