Buy-to-let market update 2017

 

Leading experts in lending predict property prices will continue to rise in 2017, according to an article by Landlord Today. Their estimations range between a 1-3% rise in line with RICS prediction of a 3% increase.

 

When Theresa May puts Article 50 into motion in March will we see a negative effect on the housing market, as we did during the Brexit Vote? The Prudential Regulation Authority rules, which took effect on January 1 have it tightened the affordability criteria for those seeking BTL mortgages. These changes along with changes in stamp duty and income tax have been initiated to make the property market more accessible for renters.

 

However property prices are continuing to increase in some parts of the country and for many who would like to buy for the first time it is a difficult time to save for a deposit. Research from Knight Knox reveals that "...less than a quarter - 23% - of renters are currently saving for a deposit, with many people living in private rented sector (PRS) that owning a home will remain unattainable..."

 

Andy Phillips, Knight Knox's commercial director said the following on the subject: "The reducing number of people saving for a deposit could mean we're seeing a shift towards a PRS-centric property landscape, similar to that which has long been a way of life in Germany and wider Continental Europe." The very traditional British aspiration of buying as opposed to renting is being challenged. 61% of participant's said they were "content to rent" for reasons such as the flexible lifestyle it can offer as opposed to being tied down to a single property with an extensive contract.

Published on 01 February 2017

Source Wonderlease

Written by Marc Cohen

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