NAEA Propertymark and ARLA Propertymark predictions for the
rental/buying market for 2018.
ARLA Propertymark’s predictions and hopes for 2018, from
David Cox, Chief Executive:
1: 59% letting agents think rent prices will rise next year,
compared to just 19 per cent who predict they will decrease
2: 62% expect the supply of rental stock to fall in 2018,
while 53 per cent think demand will continue to rise
3: 70% letting agents expect private rented taxes to rise
further next year, as agents start altering their business models to survive in
the wake of the Government’s ban on tenant fees.
David Cox, Chief Executive, ARLA Propertymark, said: “2017
was a big year for the lettings industry, and tenants felt the effects of this.
Unfortunately, it looks like rising rent costs are going to continue into the
New Year as agents need to be moving into a 0% fee business model by October,
which will push rents up as the costs are passed through landlords and onto
tenants. There is a lot of other regulation making its way through Parliament
next year, which will more positively affect the rental market however – including regulation of the industry, housing
courts and longer-term tenancies. While these policies will be developed rather
than implemented, they should start to affect the market as agents adapt their
businesses in anticipation.
In terms of the supply of rental properties, which agents
largely expect to fall, we need to remember that the minimum energy efficiency
standards coming into effect in the New Year could see up to 300,000 properties
being taken off the market because they don’t reach the minimum requirements.
This will also – in turn – push rent costs up.
Overall, the industry is going through a seismic change and
the lettings market we know today will be radically altered over the next five
years. This change will be painful for agents, but we firmly believe that the
industry will come out of the other end stronger, more professional and with a
robust reputation among consumers.”
NAEA Propertymark’s predictions and hopes for 2018, from
Mark Hayward, Chief Executive:
1: 43% of estate agents expect house prices to fall next
year
2: 44% expect supply to remain the same in 2018 and 29 per
cent think it will decrease. 32% per cent think demand will decrease in line
with this, 46% expect it to stay the same
3: 34% expect incidences of gazumping to decrease in the New
Year too, while the trend of renovating rather than moving is expected to
continue as 60 per cent think more homeowners will do this.
Mark Hayward, Chief Executive, NAEA Propertymark said: “It’s
been a big year for the housing market, with the Government pledging to improve
the house-buying process, and stamp duty relief for FTBs coming into effect.
However, looking ahead to next year, more than half of our members don’t think
the FTB tax relief will have a real impact on the number of sales being made to
the group.
Further, agents expect supply to remain the same but demand
to grow which sounds like bad news, but if we can improve the process of buying
a property, we’ll be making vast improvements to the sector which will
ultimately make it easier and provide more certainty for FTBs. Our members want
to see stamp duty relief rolled out nationally to all buyers, and hold out hope
that housing stock will increase. This will be a case of ‘wait and see’ – the
Government has made many such promises in the past which we’ve never seen
translated into reality.”
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