STRABANE PROPERTY CENTRE PREDICTIONS FOR THE 2016 RENTAL MARKET
Estate Agent in Strabane
10th March 2016
With 2016 well and truly upon us there is a lot of speculation about how the rental market, not only in Strabane but, throughout the country will perform.
Right to Rent to cause rent rises
You may or may not know, back in October 2015, the government announced that as of February 1st, it is compulsory for all private landlords in England to check that new tenants have the right to be in the UK before renting a property.
This change in legislation looks set to affect landlords considerably, and David Cox, Managing Director of the Association of Residential Letting Agents (ARLA), commented that the introduction of this piece of legislation “will result in increased compliance costs for landlords, and as a result push up rents for tenants.”
However, if you’re thinking of becoming a landlord it’s unlikely you’ll lose out significantly, as it’s expected that in many cases rents will have to rise to cover the cost. ARLA recently predicted, for example, that average rents will rise by 25% in the next 10 years.
Longer leases will grow in popularity
It has been predicted that in 2016, the average tenancy length will increase to an average of two years, according to research by a London Estate Agent.
Longer tenancies are becoming increasing popular as renters are craving stability, and the expectation of flexible living becomes more common. The prospect of longer tenancies should be music to the ears of prospective landlords, as this means that void periods are likely to be minimised.
Rush to buy before April
In the Autumn Statement back in November, the Chancellor, George Osborne, announced that buy-to-let investors and second-home buyers must pay an additional 3% Stamp Duty Land Tax (SDLT) when purchasing an additional property after April 1st.
This announcement looks likely to force many landlords to start or expand their portfolio before the deadline and with this nearly upon us many will have missed out.
Private Rented Sector Houses to increase
The National Association of Estate Agents has reported that the average house price increased by around £20,000 across 2015, and this looks as if it will continue into this year with the Association forecasting a further average increase of £17,000.
The continued increase in average house prices has encouraged many people to turn to renting, which is positive for landlords looking to entice tenants. By the end of 2016, one in five homes will be part of the Private Rented Sector (PRS), and this is predicted to increase to half of the 20-39 age bracket by 2025.
If you’re interested in becoming a landlord and reaping the benefits from letting your home, then why not get in touch with me on 02871 880465 or email me on firstname.lastname@example.org I can offer you a one to one first-class service with varying packages to choose from.
I believe that online is the way forward and the use of multimedia platforms are an essential tool, and as a final parting note please be aware that I also offer our landlords a free property valuation, so you’re able to gauge how much you could earn in monthly rents.
I hope this first Strabane Property Centre Estate & Letting Agents Blog has been of use to you. We will publish a new blog every Friday