This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The ongoing political and economic uncertainty is doing little to halt the private rental market, according to a new report.
Research from letting agency Belvoir however suggests that this situation could change, unless the Government changes plans to alter mortgage interest tax relief. In addition, the agency wants to see new measures that will help boost supply of rental homes on the market.
Policy reversal
Dorian Gonsalves, chief operating officer at Belvoir, stated: ‘If there is no reversal in Government policy with regards to mortgage relief taxation and no measures are introduced to increase the supply of rental properties then landlords are likely to come under increasing pressure to raise rents.’[1]
‘If they subsequently start selling off properties, this will clearly have a negative effect on the availability of good quality accommodation. We await the chancellor’s Autumn Statement on 23rd November with great interest,’ Gonsalves continued.[1]
Data from the Belvoir report reveals that rents rose slightly in the third quarter of 2016. 88% of Belvoir offices reported a rise in demand for house, while 63.5% saw an increase in demand for flats.
In terms of rental price movement, Belvoir agents do not foresee a big change in the lead up to the festive season.
Private rental sector thriving…for now
Vacant
Continuing, Gonsalves said: ‘Historically Q2 and Q3 tend to show an increase and Q4 tends to be when there might be a decrease, as landlords don’t want properties to be left vacant at this time of year and so it is an opportunity for tenants to pick up a bargain.’[1]
‘Two to three bedroom houses remain top of the list for stock shortages, with 81% of offices reporting a shortage of three-bed semi-terraced houses, 68% reporting a shortage of three-bed detached homes and 66.5% of offices reporting a shortage of two-bed houses.’[1]
Concluding, Gonsalves observed: ‘’Our analysis of rental periods in Q3 versus Q2 showed that almost half of franchise owners (46.3%) reported that the average time for tenants to rent was 13-18 months and over a quarter (27.78%) reported the average time in a rental property was over two years.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/buy-to-let-market-continues-to-thrive
