The lettings market in particular has been the subject of significant changes last year with new legislation being brought in for landlords. The new stamp duty charges coming in to force in April this year on the purchase of second properties will make it an interesting time ahead.
2015 saw a healthy demand for rented accommodation across all the areas that we cover and we also saw a good number of quality properties being purchased by investment landlords. On balance, the demand continued to outstrip supply which kept rental values stable.
2016 could see more fluctuations in rental levels. We could see a significant number of investors rush to beat the stamp duty deadline in April which would bring more rental properties to the market causing rental levels to dip. However, if fewer investors then buy properties to let after April this could cause a shortage of properties for tenants and that could drive up rental values.
I think in the short term, this year will be one of change while landlords and tenants adjust. Long term, I don’t see any reason why the Private Rental Sector won’t continue to flourish. After all, attitudes to renting have completely changed and it is now completely acceptable to rent and in a lot of cases it is the only option.
As a long term plan, property still remains hard to beat in terms of return and for many it gives them far more control over their investment. The property market will always have its peaks and troughs and buying an investment property is not without risk but this has always been the case and will continue to be in the future. Perhaps this year, it is even more essential to do your research and get as much advice as possible before you purchase.
If you are considering letting a property for any reason, maybe it is an investment property or maybe you are being relocated with work to a different part of the UK or even going overseas for a couple of years, please do get in touch and we can advise you on all aspects of letting your property.