UK Rents Predicted to Rise
It is Anticipated that rents across the UK are predicted to jump 25% over the next five years & that House Price will rise 20%. RICS said landlords are likely to increase their rents as they scale back on their portfolios. Changes made to the tax system, have made, The buy-to-let market slightly less attractive to landlords, the most significant change was the hike in stamp duty on 2nd home and buy to let investment purchases. In the three months to January, demand for rental properties continued to outstrip the supply of homes. The RICS survey expects the imbalance between supply and demand will squeeze rents higher. Meanwhile, the survey also showed UK house price growth in January accelerated. The RICS house price balance rose to 25% last month from 23% in December, beating expectations of 22%.
Regional Markets Out-pace London
We are seeing the regional markets out-pace London. Central London reported its eleventh consecutive monthly price decline.; the premium property market comes under pressure, amid concerns about Brexit and high purchase taxes. As a result, the outlook continues to look promising for the UK property market. The expection is that house prices will continue over the next three to 12 months in all regions across the UK, apart from central London. The survey comes after the government released a housing white paper outlining its strategy for solving the housing crisis. The shortage of available housing is so sever; the government have laid out plans for accelerating construction of new homes and building more affordable homes to rent. Which is a move to address the growing disparity of housing wealth in the UK, between home owners and renters. “The scale of the challenge government faces as it announces its new approach to housing is clearly demonstrated in the results from our latest survey,” said RICS chief economist Simon Rubinsohn. “Not only are the headline price and rent series pointing to further increases over the course of this year, but more significantly, the medium term view of RICS professionals working up and down the country is that both house prices and rents will over the medium term continue to grow at a faster pace than wages putting even greater pressure on affordability.
