A survey conducted by ARLA among its members has predicted a rise in rent of residential properties in the UK in 2018.
“Almost three in five (59 per cent) letting agents think rent prices will rise next year, compared to just 19 per cent who predict they will decrease,” NAEA said in a press release quoting ARLA survey findings.
Two thirds (62 per cent) of the surveyed agents expected the supply of rental stock to fall in 2018, while 53 per cent expected demand to continue to rise. Seven in 10 (70 per cent) letting agents expected private rented taxes to rise further next year, as agents started altering their business models to survive in the wake of the Government’s ban on tenant fees.
In terms of the supply of rental properties, which agents largely expect to fall, up to 300,000 properties could be taken off the market because they don’t reach the minimum energy efficiency standards requirements. This will also – in turn – push rent costs up.
According to NAEA, the industry is going through a “seismic change” and the lettings market will be radically altered over the next five years.
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David Cox, Chief Executive, ARLA Propertymark, said: “2017 was a big year for the lettings industry, and tenants felt the effects of this. Unfortunately, it looks like rising rent costs are going to continue into the New Year."