- An increase of current landlords exiting (as opposed to entering) the residential market is anticipated over the next 12 months. This is driven primarily by the political uncertainty stemmed from Brexit and new changes concerning stamp duty land tax.
- As a result of these two events, the supply of lettable homes is subject to be reduced which may further increase the level of payable rent for renters. In contrast, home buyers will benefit from the fall in competition for residential property as existing landlords will be inclined to sell; whereas new landlords will be deterred from buying property altogether.
- However, shortages in the number of available homes provide a strong demand and thereby competition for buyers and renters of all types.
- Overall, regional house prices and inquiries for residential property is forecasted to rise due to demand exceeding supply.
Source of Information:
- RICS. (2017). August 2017: UK Residential Market Survey.