30th
Aug 2024
A major UK agency has forecasted what the PRS will have to face over the rest of the year alongside the doubt over what the rental reform will deliver to the sector.
The agency forecasts that the annual growth of the UK market will fall from July’s 8.6% down to the year ending at 6%.
For Inner London the agency predicts growth will fall to 2% this year as rental stock supply has increased steadily since the slump during the pandemic. In the first six months to June the growth increase was 0.9%, however in the same period rental values in Outer London rose by 0.7%. The agency forecasts a 2.5% overall increase for 2024.
The agency says it will re-evaluate the data once the government unveils more details about its plans for the PRS.
The agency says for the time two things are definite and says: “First, the Labour government will introduce their own version of the Conservative Party’s Renters Reform Bill during this Parliament. Second, it has been talking tougher on landlords”
The Bills’ measures will undoubtedly make it far more difficult to evict tenants as well as far more stringent green credentials for PRS properties and it is very likely that CGT will rise in October’s Budget.
“If enough landlords sell because the new rules are too financially punitive, it will increase upwards pressure on rents … We therefore expect the next three months to provide more clarity about the longer-term future for the UK housing market than the last three.”
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