2019 Will Be 'Difficult' For Landlords
The UK's letting agents say that 2019 will be 'difficult' for landlords, according to a survey.
The findings from ARLA Propertymark highlight that the next 12 months could be a mixed year for property investors.
The organisation asked its members for their predictions covering the private rental sector and many say rent costs will rise.
One reason for this is the growing demand from tenants and the potential impact of the tenant fees ban.
Agents also warn that for BTL investors wanting to sell-off part of their portfolio, then property prices will soften because the number of homes for sale will increase.
‘Sector has undergone a tsunami of change’
ARLA Propertymark's chief executive, David Cox, said: "The sector has undergone a tsunami of change over recent years and there are difficult times ahead with the tenant fees ban.
"With the new legislation landlords have been faced with over recent years, they will find themselves either being forced to pass on their rising costs to tenants or being pushed out of the market - a trend that will continue."
He added: "Looking further ahead, however, we believe the industry will come out more professional, stronger and better respected and the best agents and landlords will adapt and survive in these new circumstances helping to keep the private rental sector afloat."
The predictions for 2019 affecting the UK's private rental sector are:
* 65% of agents believe that rent prices will increase, up from 59% who answered the same question last year
* 53% of agents believe tenant demand will continue to rise
* 78% of agents believe the number of landlords will decline as they are driven out by growing costs
* 67% of agents say they are expecting landlord taxes to rise again in 2019.
Northern rental sector is growing quickly
Meanwhile, significant investment has seen the northern private rental sector growing at a quicker pace than four investors in London.
Landbay’s National Rent Review highlights that London's tenants are moving out of the capital because of rising living costs to live in other towns and cities.
The findings also show that many northern cities are outperforming the UK average for rent price growth with landlords in Leeds seeing a 2.54% rise in 2018.
In Birmingham, rents grew by 2.05% and in Manchester by 1.91%.
The review also reveals that rents grew by 0.03% in November, the lowest monthly rise since the study began.
The average monthly rent is now £1,212, a rise of just £10 over the year and with the London’s rents removed, rents are £769, a rise of £8 over the year.