2012 Round-Up and Predictions for 2013
Predictions for 2012 were for greater demand for rental property, leading to a rise in rents, as well as increased scrutiny of the private rental sector.
As predictions go this was possibly one that was fairly easy to call, and does not look to be much different from predictions being made for 2013, with rental prices predicted to increase at 2012 levels, and greater demand for homes to rent due to a combination of restricted mortgages, low transaction volumes, and few homes being built.
As we highlighted in our November Newsletter, there has been increasing calls throughout the year for regulation, and with the recent Government enquiry into the private rented sector closing for submissions on January 17th, it will be interesting to see if any actual changes will be made in 2013.
The end of 2011, start of 2012 seen many news stories questioning if the UK market was moving away from being a nation of home owners e.g. Julian Knight: This could be the year Britain abandons the dream of being a nation of property owners, who within this article states, that with regulation of the private rented sector would not be a bad thing. With the release of the Census for 2011 it seems to confirm that the rise of ‘Generation Rent’ has been quantified, in fact in the last ten years renting has increased from 9% to 15%. This trend is set to continue throughout 2013 as “the problem lies with unduly oppressive planning restrictions and still unsustainably high house prices. Until these two things corrected, the number of renters will continue to grow”.
Going into 2013 it appears that landlords are confident about the buy-to -let market, according to the survey by specialist lender, CHL Mortgages, a third of landlords said they intend to expand their portfolios in 2013. If a greater move towards some form of regulation for the private rented sector materialises in 2013 it will be interesting to see if so may landlords remain positive and expand their portfolios.