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Category: prs
Many regions of the UK are experiencing a Private Rented Sector (PRS) resurgence, after the details of the Autumn Budget were broadcast, with thousands of new homes hitting the market.
The immediate future of the property market was unclear before the Budget was announced on the 30th October, and some prepared for the worst. However, various estate agencies have reported positive signs of growth in the sector.
Property listings on the up
According to estate agent Yopa, the regions that experienced the highest growth were Scotland, London and the North East of England. In total, they reported an 11.4% increase in property listings in the two weeks following the Budget announcement.
Scotland really was a trailblazer on this front, with the two largest cities, Glasgow and Edinburgh, leading the way with a 13.4% surge in listings. Meanwhile, Nottingham and Brighton also had a good innings.
Meanwhile, Chestertons – another estate agent chain – experienced a massive 71% increase in property sales throughout October compared to September. Property buyers were rushing to finalise any outstanding mortgage deals before the Budget.
However, many sellers have adopted a cautious approach, leading to a 24% drop in the number of homes listed for sale.
But aren’t more landlords selling up?
Despite these promising statistics, there is a widespread concern that private landlords are selling their properties in large numbers, with fewer electing to purchase.
Pegasus Insight have reported that 19% of landlords sold their properties this year, while 8% purchased new properties.
Fears of a “landlord exodus” and subsequent rental home shortage are exacerbated by reports that 41% of landlords plan to sell properties in the next year, potentially upsetting the balance further.
That said, market demand is strong, especially in the South East where 84% of landlords reported experiencing particularly high demand.
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), has weighed in on the issue:
Tenants the length and breadth of the country know that there are not enough homes to rent.
Rather than seeking to tackle it, the Government is instead doubling down on policies that have caused the chasm between supply and demand to widen in the first place.
Whilst landlords selling up might benefit a minority of tenants in a position to afford a home of their own, the vast majority will face a growing struggle to access rental homes.
It’s time for a change of course. We need policies to support the provision of more decent quality homes for private rent alongside all other tenures.
So, while it may be true that growth and demand are high, the overall picture is more nuanced and uncertain at the moment than a ‘good/bad’ summary can do justice to.
