Martin Sims, distribution director at Molo Finance, has painted a positive picture for private rented sector (PRS) in Q4 of this year, despite concerns around the Budget and the usual seasonal slowdown.
Sims said: “Inflation has finally returned to around 2%, and house prices are rising again, offering potentially good news for landlords.
“We anticipate this general upward trend to continue across the UK, with some market growth over the next two quarters.”
Private rent in the UK increased by 8.6% in the year to July 2024, according to data from the Office for National Statistics (ONS).
The average rent in England is now £1,319, in Scotland £965, in Wales £965.
Despite positive trends, Sims was only “cautiously optimistic, given the situation in the Middle East and potential fallout from the October Budget.”
Nevertheless, with 28% of Molo’s UK business generated in the international market via expat and non-UK residential markets, Sims said the business would likely “experience consistent activity.”
He said: “While activity in the UK housing market tends to ease towards the end of the calendar year, we experience consistent activity amongst expat and non-dom landlords, who continue unabated during the seasonal domestic slowdown.”
Sims added: “In terms of property preferences, our international borrowers tend to favour new-build properties with easier upkeep and modern conformity.
“Tenants, on the other hand, often prefer older or period properties, citing location, room size, and kerb appeal. So, there is a mismatch in this area.”
He continued: “The Budget will certainly have an impact on the winter lettings landscape, with money being tighter in all quarters.
“The Renters’ Rights Bill carries a huge weight of expectation to improve and clarify the current system for both the 11 million private renters and 2.3 million landlords in England.
“It will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities and avoid the risk of homelessness.
“They will also see small wins, such as the uniform acceptance of pets.
“We should remember that a good landlord will remain a good landlord, and a bad landlord will continue to stretch legislation and guidelines to the full.”
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