Rent rises coming as Landlords sell up
Thu 14 Sep 2017
Over the last few years, the government have introduced numerous new rules and regulations in an attempt to improve the lettings market for tenants and solve the housing crisis. There are also further regulations in the pipeline along with tax changes that are making the lettings sector a far less attractive place to invest. We’re seeing 3 landlords selling up for 1 landlord buying right now. The result is less rental properties.
Less supply means private rents are likely to outpace house prices in the next five years, the Royal Institution of Chartered Surveyors (RICS) found. This will be further exasperated by the forthcoming tenant fee ban where landlords will seek to recover the cost of necessary pre-tenancy work through even higher rents.
The inevitable long term consequences: Great news for large (rich) property investors and companies who will remain invested, and bad news for tenants through increased rents. Completely the opposite of what (one would hope) the Government are trying to achieve.