Collaborative post :
Whether you are looking to buy, sell, rent or let out a property, it can be difficult in these uncertain times to make plans without knowing what is in store for the months ahead. From renters and long-term landlords with large portfolios to those considering ‘should I Let my house online’, being prepared for what could occur is always a good idea.
Here we take a look at key predictions and forecasts for 2024 from some of the industry’s leading experts to tell you what might happen in the coming year for the letting market.
● Rent Prices
With the cost of living, the uncertain times people are facing and the inaccessibility of mortgage rates, it is expected that many buyers will be forced to remain in the rental market rather than moving onto the property ladder.
This combined with the long-term supply issues, lack of available stock on the rental market and the rising landlord costs, it is likely that there will be a heightened demand resulting in rental prices increasing by around 5% across the UK.
● Renters Reform Bill
Due to pass into legislation in 2024, the upcoming renters reform bill is going to shake up the rental market throughout England and Wales. The bill sets out a new list of rules and regulations with the aim of making the letting system better and fairer for both landlords and tenants.
Some of the highlights of the bill which will most impact the rental market include;
– The abolition of section 21 and no-fault evictions
– Changes to how landlords can increase rent
– Getting rid of fixed term tenancies
– Rights for tenants with pets
– A new property ombudsman
– Introduction of a private rented sector database
– A new system for assessing housing conditions
– Prohibits blanket bans on renting to people with children or who receive benefits
● Build To Rent
With the continued rise of Build to Rent (BTR) properties, 2024 has been marked as the ‘year of BTR’. These specially designed developments have been proven to work well in many other countries and offer tenants professionally managed homes with a whole host of benefits including great amenities and a sense of community that they don’t often get with typical rental properties.
BTR developments are not sold to individual homeowners, but rather purpose-built for renting and generally owned by property management companies and institutional investors. These could be a great solution for the housing shortage in the long term, but for 2024 their impact will likely be limited to some of the major cities where they are being constructed such as London and Birmingham.
● Energy Efficiency
As energy bills continue to rise, there is an increased demand for energy efficient properties, even in the rental market. This is something that will be highly sought after by some renters looking to lower occupational costs, but they can expect to pay a premium for it in return.
That being said, there is also now tougher energy efficiency rules for landlords which means that a lot of homes will benefit from greatly improved energy ratings. The downside to this is that some of the changes required to meet the new rules can work out thousands per property and landlords may decide that they need to recoup these expenses by increasing their tenants rent.