In the Coming years, rents in the property market in the UK will grow

The increase in Stamp duty for investors to purchase property in the UK, which will come into force from April 2015, has led to a pessimistic prediction about the future of the sector “Buy to let”.

Report submitted by agencies Association of Residential Property in the UK – Association of Residential Letting Agents (ARLA) showed that about 40% of agents considered that the proposal in the rental market will shrink in the next five years.

The new rates of Stamp duty will make many real estate investors United Kingdom unprofitable and the investors will leave the market.

The Association report also showed that for the current year reduced the proportion of tenants in the UK, which increases rents. If in October 2015 it was 25% in November 2015 – 23% . This despite the fact that the demand for real estate market increased slightly in November. The lack of real estate does not allow potential investors to find the desired object and make the buying decision.

In November, a 9% increase in the average number of new registered properties, available for rent per office with 173 in October to 189, which indicates improvement proposals. In London, the situation with the supply of new homes and apartments for rent not so good, the only object 121 on average, each office account in London, which is 36% less than the average for the UK.

The good news is that rents for tenants will cease to grow, it seems, it will please us long, as already in April, will start decreasing the number of new investors who will come on the market. The lack of properties for sale will inevitably lead to the fact that rents will start to grow.

® Maxim Savitsky G. 15.12.2015

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