In the third instalment of our State of the Property Nation report, we look at how both consumers and agents believe the rental market is going to evolve in the next 18 months.
Despite property prices slowing nationwide, a 62% majority of consumers now believe that rents are likely to increase in the coming year. Amongst renters themselves, this figure is even higher at 67% – up from 2016. Meanwhile, only 58% of agents believe that rents are likely to rise. Whilst this could be due to the recent changes to letting fees, it could also be linked to agents believing that demand will outstrip supply. So while 57% believe that there will be an increase in people renting, only 30% believe there will be an increase of rental properties available on the market.
When it comes to renters’ views on their personal finances, only a little over a third of them feel confident about their situation, and this decrease in confidence is most prevalent amongst the 25-44 year age group. This is juxtaposed with two thirds of landlords feeling more confident about their own financial year ahead. This suggests renters are starting to feel the pinch of rising rents, increased competition for rentals and are in poorer personal financial positions.
For agents to prepare for the expected increase in rentals, they should focus on maintaining best practice standards. They need to be visible, informative and be ready to give up to date information by being armed with the latest reports and detailed insights in order to best advise clients, applicants and landlords. Agents can ensure all parties proceed smoothly through the process by maintaining transparency, and keeping up to date on important changing legislation and cost structures.
PropertyFile allows agents to keep their clients in the know, at any time of day. It enables them to do everything from accessing important documents to managing maintenance issues, so they feel looked after around the clock. And with Property Intelligence from Hometrack, agents can make sure they’re fully informed with up to date with market trends at a local and national level.