Landlords fear Labour government as demand outstrips supply

12:02 AM, 6th August 2024, 2 years ago 7

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Supply and demand are still out of balance as landlords worry about what a Labour government might do.

Propertymark’s Housing Market Insight report reveals demand continues to outstrip supply, with around nine new applicants registered for each available property in June 2024.

The report also reveals rents fluctuate by market and region, but most members reported that rents remained static (52%) or increased (38%) in June 2024.

More landlords selling up

One member of Propertymark in the East Midlands says they are worried the landlord exodus could get worse under a Labour government.

The member said: “Following the election of the Labour government, I am having lots of phone calls from landlords who are worried about the ‘immediate’ withdrawal of Section 21, and I seriously think the flow of landlords selling, which had slowed down, is going to increase again.”

The report also reveals rental arrears decreased slightly in June 2024 with members reporting that just under 2% of their fully managed and rent collect/rent management properties were in arrears.

Base rate cut will stimulate the market

In the residential sector, house prices increased by £3,453 to £285,20. The average number of new prospective buyers registered per branch decreased from 74 in May 2024 to 69 in June 2024.

According to the report, 42% of adults reported finding it ‘very or somewhat difficult’ to afford their rent or mortgage payments.

Nathan Emerson, chief executive officer of Propertymark, says the interest rate cut will help boost the market.

He said: “June marks the beginning of the Great British Summer and a seasonal change in the activity of home buyers.

“Key demand metrics, including the number of prospective buyer registrations and the number of viewings, have reduced slightly as consumer attention turns to the holiday season.

“The general election has also had a moderate effect. Although we expect activity to remain subdued in July, pent-up demand and robust stock levels will see increased activity towards the end of the summer period. The base rate cut to 5% will also help to stimulate the market.”

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Tags: base rate cut, East Midlands property, House prices, Housing market, interest rate cut, labour government, Landlord Concerns, landlord exodus, Property market, Propertymark report, prospective buyers, rental affordability, rental arrears, Rental market, section 21, supply and demand, UK Housing Market

Comments

northern landlord Read Full Bio

Member Since March 2022 - Comments: 365

4:07 PM, 6th August 2024, About 2 years ago

HMRC are already seeing a boost in Capital gains tax takings. Who would be paying CGT? Landlords disposing of property perhaps? As for new investors who is going to borrow and pay back money to invest in an asset that you have no control over, that you potentially even won’t be allowed to sell when you want to and could involve you in costly EPC upgrades while you can’t even get tax relief on the interest payments like a normal business.
I think the death Knell is sounding for the PRS. The Government had better get building affordable housing. I wonder how far behind schedule they are already?

8 Report Comment Reply
Yellard

Member Since May 2019 - Comments: 42

8:04 PM, 6th August 2024, About 2 years ago

I know I need to get out of BTL but am reluctant to evict my good tenants… And… anyhow there is more than six months left on existing contracts. I can’t therefore even serve Section 21 even if I want to and by the time I can Section 21 will be likely abolished.

1 Report Comment Reply
Reluctant Landlord

Member Since September 2018 - Comments: 3538 - Articles: 5

10:09 AM, 7th August 2024, About 2 years ago

Reply to the comment left by Yellard at 06/08/2024 – 20:04
get the paperwork in order to serve as soon as you can. S21 wont be going in the next 6 months at least.

2 Report Comment Reply
Philip Wright

Member Since April 2023 - Comments: 11

12:21 PM, 7th August 2024, About 2 years ago

wait till sir kneelalot gives amnesty for all the potential terrorists,and allows them in society…… how do we check their status

1 Report Comment Reply
Jane Smith

Member Since August 2024 - Comments: 1

12:56 PM, 7th August 2024, About 2 years ago

I live in private rented accommodation. In order to afford this after retirement (I’m now 75) I bought a small buy to let which almost covers my rent – maintenance and tax bill taking a chunk out of course!! I bought the house to keep abreast of the property market for when I need a retirement flat or house. I now have it up for sale with the tenants in situ – they have been very good over the past 9 years. If I can find anyone wanting this in the current BtL market, I will have to pay a chunk of capital gains tax so it will not equate to a retirement flat. I will, therefore, be unable to buy anything but a very small house or flat – if anything at all.

1 Report Comment Reply
Reluctant Landlord

Member Since September 2018 - Comments: 3538 - Articles: 5

2:08 PM, 7th August 2024, About 2 years ago

Reply to the comment left by Yellard at 06/08/2024 – 20:04you can issue a S21 notice 2 months before the end of the contract so it coincides with the last date of the fixed period. You can issue a S8 with less notice
but that is dependent on grounds used.

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Stella Read Full Bio

Member Since May 2014 - Comments: 620

11:05 AM, 8th August 2024, About 2 years ago

Reply to the comment left by Jane Smith at 07/08/2024 – 12:56
Would it be possible to live in your rented property.

You can still use a section 21 notice

The problen selling iwith tenants is that you may have to accept below market value.

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