Propertymark, both the Association of Residential Letting Agents (ARLA) and the National Association of Estate Agents (NAEA), has published its predictions for 2019.
2018 has been another difficult year for landlords, homeowners and the UK in general, and next year is looking like it could be just as challenging.
Propertymark has asked its members to share their predictions for the private rental sector, as well as the buying and selling market, for 2019:
Private rental sector
Two-thirds (65%) of ARLA Propertymark’s member letting agents believe that rent prices will rise next year, which is up from 59% when agents were asked the same question last year about 2018.
More than half (53%) think that demand from tenants will continue to rise, but over three-quarters (78%) fear that the number of landlords operating in the private rental sector will decline in 2019, as they are driven out by rising costs.
In line with this, 67% of agents expect landlord taxes to increase again next year.
The Chief Executive of ARLA Propertymark, David Cox, says: “The private rental sector has undergone a tsunami of change over the last few years, and there are difficult times ahead, with the tenant fees ban expected to come into effect next year. With all the new legislation landlords have faced over the last few years, they have found themselves either being pushed out of the market or forced to pass rising costs on to tenants – a trend which we’ll continue to see next year.
“However, looking further ahead, we firmly believe that the industry will come out stronger, more professional and better respected at the other side. The best landlords and agents will adapt and survive to the new circumstances, keeping the private rental sector afloat.”
Buying and selling market
Almost half (43%) of NAEA Propertymark member estate agents expect house prices to fall next year, as 39% think that housing supply will increase and 35% believe that demand will drop.
This is driven by uncertainty over Brexit, with around half (46%) of agents agreeing that a no-deal Brexit will have a negative impact on the housing market.
As homeowners put off plans to move home in light of Brexit, almost two-thirds (62%) of agents think that the trend of renovating, rather than moving, will continue in the New Year.
Mark Hayward, the Chief Executive of NAEA Propertymark, gives his thoughts: “As we look ahead to 2019, there’s a fog of uncertainty. Brexit is undoubtedly fuelling a sense of apprehension in the housing market, which, in turn, affects sentiment. With details of the final deal still unknown, both buyers and sellers will continue to hold off on making any decisions. However, this slowdown presents a window of opportunity for first time buyers, who will find more affordable properties, granting them greater bargaining power.
“We usually see demand spike in the first few months of the year, but the landscape will probably be very different in 2019, as buyers sit on the fence and adopt a wait-and-see strategy until the Brexit deal is complete.”
What are your predictions for the property market in 2019? Let us know what you think!