As I look towards this year, I am sure that my thoughts are the same as many within the industry.
I am not completely sure what to expect, however I am confident that it will be a more consistent year compared to the previous few.
December saw the strongest growth of 2019, even with the general election, so I expect to see this filter through into the start of 2020.
There is an exceptional amount of pent-up demand in the market which has the potential to drive the market throughout the start of this year. Some experts believe that there may be an initial property boom, however I believe that if this does occur that it may be short lived in quarter one.
Despite the current outlook being the clearest it has been in years, there are still details to be confirmed regarding the UK’s exit from the EU, as well as any potential economic and housing changes that the government could look at reviewing. Because of this, RICS is predicting just a 2% growth.
The lettings market also looks like it will face more legislation changes this year, with the first major change having already been announced; compulsory electrical testing will come into play.
Subject to approval by the Houses of Parliament, both landlords and agents will need to ensure electrical installation inspections and testing are carried out for all new tenancies in England from 1 July 2020 or from 1 April 2021 for existing tenancies.
There are also proposed legislation changes for lettings regarding CO2 alarms, changes to EPC legislation, money laundering changes and the potential Section 21 abolishment.
In general it is likely that the demand for rental properties will to continue to rise, and tenants will continue to look to stay in properties for a longer period of time. I imagine that the average rental period will increase throughout the year.
Rents are currently at an all-time high, however this increase is not expected to slow down. It’s predicted that by the end of this year rents will rise again.
One area that will be key to agent success this year will be changes and advances in technology. New technology will be key in creating efficiencies and, of course, providing the customer with the best level of service and the most suitable outcome.
Despite the potential for another year of uncertainty within the property market I think that there is a real opportunity for progress within the industry in 2020.
Individuals and businesses alike are likely to be able to make more decisions and plans for the future, which can only be beneficial in moving the industry forward.
*Ellie Donaghy is head of lettings at Andrews Property Group
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Pent Up Demand! .. More Like Pent up Aspiration!
Ellie .. This will be my 4th Property Recession in my lifetime and without doubt it will be the worst.
I agree that there may well be an initial pent up demand stimulus by those that have an agreed mortgage in place to utilise and sales not yet completed during Covid lockdown.
Then reality is going to set-in; Stagnant Jobs that have been subsidised by the tax payer will come to an end. Government Policy will put pressure on Banks to recover tax burden, get their balance sheets in order and force many good businesses into Bankruptcy. Unemployment rate will remain high, with those having registered for temporary support remaining on support, with the cue growing ever longer. Foreign property investment will fall off a cliff with protectionism and self interest rife.
Social habits will have a massive hit and effect on the 2+1 demographic, who are key to pushing the market forward will change, with no doubt new dating apps with a prerequisite confirming all registrants have Covid Immunity the new norm.
I think the rental market will provide some stimulus for Housing Associations and Investors catering for those around Income Support, with greater pressure on Local Authorities to provide accommodation.
I think a cultural shift is inevitable from capitalism to socialism around the world and the must haves, or have got’s will no longer be paid homage to. Humanity has had a wake up call to the now and what might be around the corner not least a second, third outbreak.
Caution and confidence in the market will have a prolonged presence on any activity for the foreseeable future, this cataclysmic blow to aspirations will be felt and not forgotten for many years to come. The true consequences of which we will only be able to truly comprehend in the History books of the future.
So those that think the property market will carry on as normal and that a correction is a maybe are deluded and peddling fake news!. It means that we now more than ever have to be more realistic, honest, transparent with projecting trends, would be sellers being realistic about valuations, developers focusing on market needs rather than inflated profits (remain solvent), give Buyers the confidence they need to even consider entering the market by being honest and upfront.
One thing that will get us through this is that we are in this together! self interest is no longer in Vogue and I am personally assessing my own wealth and looking at what I can do to help others, but that is another Story!
cannock3136
Nah! property will still be in demand.
Even if LL don't buy still plenty of aspirant OO.
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