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Tag: housing

Housing market predictions for Summer 2023

by Sorcha DugmorePosted on

The UK housing market has been subject to instability and lack of clarity for Landlords and tenants over the past few years, but are we heading towards a more stable future? 

This month, recent data from HMRC showed that property sales fell by 19% in March, a somewhat expected trend which we also saw hitting the market in March 2022. Additionally, HMRC stated that the total transactions this year have been “significantly lower” than the previous year, but noted that this activity was boosted by a boost in demand and the stamp duty holiday.

Despite the annual fall, it looks like there are some silver linings. This year we have seen a month-on-month uptick of 1%, breaking the trend of declines seen in previous months, such as the 4% monthly decline in February and a 3% dip between December and January.

The head of lender relationships at Legal and General Mortgage Club, Danny Belton, stated it was “positive to see an uptick in transactions from February to March kickstarting a strong spring selling season”.

It isn’t possible to accurately predict the state of the housing market going forward, and there are still many obstacles for landlords to overcome; however it seems like there might be some positive outlook. According to a recent report by Zoopla, the UK property market is currently experiencing its strongest sales market in a decade. 

Landlords back minimum housing standards

by Sorcha DugmorePosted on

Landlords across the UK are showing their support for policies ensuring minimum housing standards, according to a new survey conducted by the Paragon Banking Group. The results of the survey show that the majority of Landlords believe that all rental properties should meet a set of minimum standards to ensure safe and comfortable living conditions for tenants.

The standard would include requirements for heating, insulation, and ventilation, as well as basic amenities such as running water and working appliances.

This marks a significant shift in attitude among Landlords, who have previously been resistant to government regulations and requirements for rental properties. Showing that they clearly recognise the importance of providing safe and comfortable homes for tenants.

Commenting on the survey results, John Heron, managing director of mortgages at Paragon, said: “It’s clear from our research that the majority of landlords are supportive of minimum standards for rental properties, and this is a positive step for the sector as a whole.”

Heron added that the survey results reflect a growing recognition among Landlords that good quality housing is essential for the success of the private rented sector. He also noted that many Landlords are already investing in their properties to meet or exceed minimum standards.

The findings of the survey have been welcomed by housing campaigners, who have long called for greater regulation of the private rented sector. The government is currently considering proposals for a new minimum standard for rental properties, and the survey results may provide additional support for these efforts.

Overall, the survey suggests that Landlords are increasingly recognising their responsibility to provide safe and comfortable homes for tenants. By supporting minimum housing standards, Landlords can help to improve the reputation of the private rented sector and ensure that tenants have access to high-quality rental properties.

Why Landlords are holding onto their investments – A positive outlook for Landlords in the UK Housing Market

by Sorcha DugmorePosted on

The UK property market has been unpredictable for some time now, it’s important for Landlords to carefully consider the pros and cons of selling up versus holding onto their investments. While there are certainly challenges to be faced in the current housing market, there are also reasons to be optimistic about the future.

The current housing crisis in the UK has been a highly talked about topic through the property investor communities over the last year. The crisis, caused by a lack of Landlords and an increasing demand for rentals, has caused significant impact to both property investors and individuals seeking suitable rental accommodation. 

The Guardian reported on the top challenges faced by current Landlords and buy-to-let investors:

  • Recent stamp duty increases have made buying new properties more expensive, reducing the amount of new landlords entering the market
  • The phased reduction of mortgage interest tax relief has reduced landlords’ profits, making it less financially viable to continue renting out properties
  • Proposed changes to the eviction process (For example, abolishing section 21 evictions) could mean that landlords may have to give tenants longer notice before evicting them

However, despite these challenges Landlords are holding onto their property investments and here’s why:

  • Yields – Rental yields in the UK are still high compared to other countries, providing a strong income stream for Landlords. Landlords have justifiable reason to raise rental prices in the current market, maintaining profits in the short term and potentially leading to high-yields in the long-term when financial strains ease again.
  • Demand – The demand for rental properties is likely to remain high, as many people continue to struggle to get onto the property ladder due to rising house prices. This creates a pool of tenants willing to pay higher monthly rent, and provides landlords with a wider choice of higher-quality tenants who are less likely to miss rental payments.
  • Long-term investment – While the market currently presents some concerning challenges and instability, it’s important to remember that it will stabilise again. When that happens, Landlords who hold onto their investments might benefit from increased yields in the future. 

As a Landlord, you should ensure that you are well-informed about changes to the rental landscape in the UK and how your investments will be affected. It’s best to take time to properly research the potential implications the changes have on your investments and weigh up the risks vs benefits. Whilst it is tempting to sell up when there are challenges in the market, impulse decisions can lead to large losses and potentially missing out on opportunities in the future.