Richard Rabin (FNAEA, MARLA) Director of Lang Town & Country looks at what issues are being discussed and how potentially the property market may react.
With 2017 drawing to a close we now turn our attention to what could be in store for us during 2018. There is a real split in predictions for 2018 according to agents and consumer views.
We at Lang Town & Country are predicting a steady 2018 with maybe a small rise in property prices in the South West region. Nationally agents are split with whether house prices will rise, yet over 50% of consumers are predicting further house price rises during 2018.
No one knows how the political scenery will affect people’s decisions regarding selling/renting but we believe the Plymouth and surrounding area is well placed to see off any negative national reactions. With large investment still coming to the City with over 270 million already in the pipeline over the next 2 years Plymouth is attracting attention. This can only be positive to keep the property industry buoyant.
With the lettings Christmas slow down already upon us Lang Town & Country is seeing a lot of activity from both Landlords looking to rent their property out in the New Year as well as Tenants registering for January 2018.
With a lot of new legislation coming to the property industry especially in Lettings 2018 will be an interesting year to see how agents and Landlords react alike. We have a clear strategy for 2018 with the new Energy Efficiency standards coming into effect in April and banning of tenants fees expected late in 2018.
ARLA Propertymark’s predictions and hopes for 2018, from David Cox, Chief Executive:
- Almost three in five (59 per cent) letting agents think rent prices will rise next year, compared to just 19 per cent who predict they will decrease1
- Two thirds (62 per cent) expect the supply of rental stock to fall in 2018, while 53 per cent think demand will continue to rise
- Seven in ten (70 per cent) 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.”
1 Opinium Research carried out an online survey among 264 ARLA member branches between 31st October to 8thNovember 2017.