The Royal Institute of Chartered Surveyors (RICS) conducted a survey and the data reveals some striking information. The 2018 survey reveals that there are constant decreases of new property that is placed on the markets in the lettings division. Additionally, data shows that it has 9% more members, while responders see a decrease rather than a rise in New Landlord Instructions. Unexpectedly, the RICS indicator has documented a negative number, while this being the eighth sequential quarter.
This trend portrays the alteration within the Buy-to-Let market, implying that the wake of tax changes is in the process of being applied, as smaller landlords are leaving the sector. This major drop in instruction is obvious in all sections of the country to a lesser or greater degree.
Moreover, the Tenant Demand indicator stays resilient, since the quantity of fresh rental stock to the market is progressively controlled. The rising energy seems to have slowed, however, the number of tenants searching for a brand new property that stays within a positive territory at a significant level.
One major concern is that there is a difference in the prospects for rental growth, and the intensifying rents for customers seem to be reinforced again. Recent statistics show that over the course of the next 12 months, rents are expected to upsurge by a slight short of +2% nationally. However, during the middle of 2023, it is predicted that the deficit stock over the medium term is to advance an accumulative rise of around +15%. In addition, we observed that East Anglia and South West will seem the most likely to have the sharpest growth of the period.
About the Author
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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