UK housing market: Rental crisis deepens, home sales improve – RICS

UK housing market: Rental crisis deepens, home sales improve – RICS

9:46 AM, 8th August 2024, About 3 months ago 6

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The UK housing market exhibited mixed fortunes in July as the private rented sector (PRS) continued to grapple with a widening gap between supply and demand.

However, according to the latest RICS residential property survey, the sales market is showing tentative signs of recovery.

RICS says that demand for rental properties persisted at a robust level, with a net balance of +18% of surveyors reporting an increase.

Conversely, sentiment towards landlord instructions remained negative at -16%, indicating a sustained shortage of available properties.

‘Difficulties in the lettings market remain’

The organisation’s chief economist, Simon Rubinsohn, said: “The difficulties in the lettings market remain as intense as ever with little prospect of any relief in sight.

“Demand is continuing to run ahead of supply with many respondents to the RICS survey noting that landlords are looking to reduce holdings in the face of an increasingly hostile environment for investment in the sector.”

The sales market, however, presents a more optimistic picture as new buyer enquiries rose to +2%, marking the first positive reading in four months.

Also, the number of agreed sales improved, though it is still in negative territory.

‘Distraction of the election’

Tom Bill, the head of UK residential research at Knight Frank, said: “Many buyers and sellers were planning their summer holiday in June and July rather a property purchase thanks to the distraction of the election and the prolonged wait for a rate cut.

“With the election over and a 0.25% cut this month, the autumn market should begin with renewed impetus.

“Pent-up demand that built in the first half of this year will be released in the second half as more mortgages fall below 4%.”


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Cider Drinker

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8:41 AM, 8th August 2024, About 3 months ago

The government clearly wants to reduce or remove the PRS. This is evident from studying changes to taxation and regulation that impacts the PRS landlords and their tenants.

This means that former PRS properties are being sold to owner-occupiers whenever tenants leave, whether voluntarily or via Section 8 or Section 21.

This direction of travel is only going to accelerate thanks to Labour’s threats of more taxation and greater regulation.

Reluctant Landlord

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9:19 AM, 8th August 2024, About 3 months ago

don't they realise something has to give when

1. tenants have more rights over a rental property than the legal owner
2. that legal safety standards demanded are higher for a rental than for every other residential occupation (council/social providers, right through to home ownership).
3. there is no incentive to stay in the PRS?

A vindictive case of they can't provide what is needed, so they want to make it really difficult for those that do.

This 'plan' will backfire. Even if they don't care about landlords, 11 million renters will demand answers.

Time the PRS turned the tables and make tenants aware what is really going on. Their anger needs to be directed to the right source...

Cider Drinker

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9:27 AM, 8th August 2024, About 3 months ago

It’s certainly time that the likes of the NRLA and other landlord groups bombarded social media with the truth as to why rents are high and why landlords are leaving the sector.

* Massive net migration.

* Unfair taxation.

* Ridiculous regulations.

Generation Rant and Shelter (who don’t provide shelter to anyone) have had it far too easy over recent years.

Paul Essex

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10:40 AM, 8th August 2024, About 3 months ago

Yes the principle reason for the housing crisis is net immigration (virtually all LEGAL immigration). There was a 700k increase last year, assuming these were all couples gives us the need for 350k new housing units - the UK only built around 167k housing units last year so roughly half what was needed just to keep pace with immigration.

The media constantly ignores the simple facts and continues to heap abuse on landlords as the root cause of the crisis.

LaLo

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12:51 PM, 8th August 2024, About 3 months ago

I’m still confused. Immigrants are still coming in and given free accommodation whilst many of our own people are homeless ??? Ah well, there will be 1.5 million new houses coming soon. Problem solved - Whoopie! Errr!

northern landlord

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14:29 PM, 8th August 2024, About 3 months ago

Uncertainty breeds fear and that is the problem. Will selling up be a mandatory ground for eviction or will hardship tests that could stop eviction be applied? Could such hardship tests be applied to ban evictions in cases of rent arrears? Will labour introduce rent caps? How much will a landlord registration scheme cost me? How much will the ombudsman scheme cost? Will I have to replace a still serviceable kitchen or bathroom under a decent homes scheme because they are getting on a bit?, How much will the inspection cost me. Will Courts accept anonymous evidence in cases of anti-social behaviour when section 21 goes? Will I be able to sell if I can’t or don’t want to afford EPC upgrades? Will I have to offer my property to a tenant under some enforced right to buy scheme? Will CGT be substantially increased? All questions no answers. It might not be as bad as it seems but there is no guarantee of that at all. That’s why landlords are giving up and new ones are not coming forward.

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