2017 Outlook on Rental Properties in the UK

Falling rents in the South East and London are dragging down the growth of UK’s rental market.Currently, they have more properties and also less tenants looking for homes. There has been a rise in the supply of privately rental properties and houses and it has resulted in a situation where renters have more properties to choose from.Rents have now actually started to flatten in many parts of the UK.A lot of experts have been divided on the projections for the rest of 2017.The buy-to-let market expects a huge slump with the criteria for lending tightening ahead of the introduction of new taxes in April 2017.


Uncertainty in the sales market should push demand into the rental market from those reluctant to commit to a purchase. We may also see an increase in the number of accidental landlords bringing more stock to the market. This means landlords will need to remain competitive in their asking rents and flexible on terms to continue to attract tenants.Some are now feeling that tenants should have the upper hand when they are negotiating for rent no that the demand has already weakened and the supply increased.


There has been a lot of economically ignorant people who have been saying that buy to let landlords, whose property is bought with the sole intent of letting , have been pushing rental prices.This is the sort of level that the debate about housing in England have gotten so far with a good half of the political class who just cannot get their heads around this issue.

The effect has a been the addition of extra taxation to the market.A higher stamp duty is applied to those buying a home not their main residence. Interest on a mortgage can no longer, in most circumstances, be counted as a cost of doing business. But there was a future date set for these changes and a certain amount of grandfathering in the legislation. Thus a rush to buy before the rules change.And look what happens, the rush to buy produces more properties to rent, more properties available leads to a reduction in rents paid. Thus our conclusion is that buy to rent lowers rents charged by increasing the supply of rental properties. Markets really do work you know, prices change in order to balance supply and demand.