07 Mar UK Rent Prices Expected to Increase
As we move into the third month of 2017 (where does time go?), the outlook for the property market this year is becoming clearer, as are predictions for the years to follow. Just recently, rental prices have been bought into focus as surveyors, including the Royal Institute of Chartered Surveyors (RICS), have been analysing future trends.
So, What’s Going On?
In short, it looks as though rental prices are going to be on the up. Introductions of new taxes and stamp duty have led to surveyors predicting that landlords will be decreasing the amount of rental properties they hold, which, in turn, will lead to a shift in the supply-demand balance. More tenants will be fighting over fewer properties, so landlords can afford to charge more. RICS actually predicted that rent prices would rise faster than house prices in the next five years – with house prices estimated to see a 20% rise, compared to 25% for rental figures.
How Will This Affect Surrey
Barton Wyatt estate agents Surrey are, of course, focused on how this news will affect the Surrey property market, especially rental homes in Virginia Water and other areas where there are high numbers of rental properties. Of course, this is quite a positive for landlords, who can look at earning more from their properties. It also could be good news for property sales as, with rent becoming more expensive, the thought of buying a home becomes more appealing. This certainly wouldn’t be a bad thing for Surrey!
If you’re looking to invest in property with the idea of renting it out, this will also come as good news as you’ll get a greater return on investment. If you buy now, you’ll get a property whilst sale prices are still at an attractive level, and then rent it out as prices begin to increase and demand becomes higher. This decrease in the amount of properties available will make finding suitable tenants far easier too.
For those looking to rent, of course the fact that prices may be higher isn’t great news. However, the news that came from the Government’s white paper is. They highlighted the issue of some rental properties being sub-standard (none at Barton and Wyatt, of course!) and are looking to work on this, ensuring that the rent you pay is worthy of the accommodation quality you receive.
So far, 2017 is looking pretty good for the property market in Surrey. Sales have been unexpectedly buoyant and prices are remaining at a healthy level. We’re not too worried about any changes that rent prices increasing may bring, and, we must remember, the property market is constantly fluctuating up and down so when changes occur it’s nothing out of the ordinary. That’s just the way things are.
If you’re looking for rental homes in Sunningdale or Virginia Water in 2017, contact Barton Wyatt estate agents Surrey to find out what we can do for you.