Agents are predicting that rents in Britain will rise or remain static in 2019 and prices likely to fall or stagnate with Brexit only having an impact on certain areas, research shows.
The survey by Belvoir of its franchisee across the country found that the majority of offices are predicting rental increases or static rents, primarily due to Government legislation and shortage of supply. In contrast to this, they are expecting a decrease in house prices.
Out of four offices surveyed in the North West, all believe that rents will increase or stay the same in 2019 due to increased landlord costs from increased legislation and potentially the tenant fee ban.
In the South East, out of nine Belvoir offices surveyed, six predict that rents will decrease or remain the same, and eight offices predict a fall in house prices in their area.
Overall Rents 14% of franchisees expect rents to fall in 2019, 27% expect no change in 2019 and 59% expect rents to rise in 2019. While in the sales market 40% predict that prices will fall this year, 23% that they will rise and 37% that they will be unchanged.
Belvoir Tunbrige Wells, in the South East, reported that political uncertainty is prohibiting people from putting their properties on the market, and therefore stocks are low.
People who have already put their houses on the market in this region are unable to find anything suitable to buy, resulting in an increase in the number of people looking for rented property in the three bed plus family market.
The Belvoir Tadley office, which is also in the South East, said that the underlying fear of a substantial negative blow to house prices due to Brexit will cause an influx of new instructions, which in turn will push down prices overall.
However, the Belvoir Doncaster office is much more optimistic about the market, as there is substantial investment planned for the region, and the franchisee forecasts a good return on investment.
‘It is not easy to forecast rental prices and house prices for the year ahead, but political uncertainty is making it even more difficult, with Parliament failing to agree on the next steps for Britain,’ said Belvoir chief executive officer Dorian Gonsalves.
‘However, Belvoir franchisees know their own areas extremely well, and are in an excellent position to be able to advise on local market conditions and those areas that have the best opportunities for investment,’ he pointed out.