Lettings Market Update 2018

Our review of the residential lettings market in 2017 and our thoughts on 2018.

Whilst we saw no drop in rental values in 2016, in spite of Brexit and the announcement of incoming tax changes for landlords and new legal requirements placed upon landlords and their agents, come 2017 we did see a drop. When broken down the statistics showed that some segments of the market dropped in value (high end) and others plateaued (smaller units) but when looked at as a whole, market values were down by 7%, the first decrease in rental value in Hackney since BlakeStanley started trading on Broadway Market in 2003.

Attraction for the area remained however enquiry levels did decrease, so provided a property was priced correctly it would rent quickly. Also many landlords found tenants extended tenancies meaning our clients experienced the pleasure of no fuss long term tenants.

Taking into account the factors mentioned above and the rise in rental values over the last 10 years, we see values remaining at a static level for 2018 to those in 2017. In our opinion, this is a reflection of the current market conditions and the area reaching a ceiling in achievable values for the time being when compared to surrounding areas. Hackney has also gone through a huge amount of residential development over the last three years, much coming to fruition in 2018. Obviously this means there will be more property available which will affect the supply/demand balance, hence keeping values on an even keel for 2018.

All predictions aside, the rental market is susceptible to change very quickly so please do contact us for an up to date market appraisal if you are considering renting out a property.

1. Many changes to your Tax liability as a private landlord. Please see www.gov.uk and search ‘tax relief for landlords’.

2. Changes to the Energy efficiency regulations – all privately rented property will need to have a minimum rating of E, or the landlord could be faced with a £4,000 fine.

3. Coming in for 2019 - a ban on agents fees for tenants. BlakeStanley will not be passing on the cost of referencing and administration to our clients, which we expect other agents will do.

4. Licensing for landlords – many UK councils have implemented various licensing regulations for landlords and it is viewed as only a matter of time before these are universally adopted, holding either the managing agent accountable, or a private landlord should an agent not be managing the property.