The private rented sector will stay "afloat" next year, with 65% of agents forecasting rising rents next year
One of the UK’s leading associations for lettings and estate agents has given its predictions for the property market in 2019.
Polling their respective members, the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) expect 2019 to be another challenging year for the market.
According to NAEA, less than half (43%) of its members expect prices will fall, whilst 39% anticipate supply will increase and 35% believe property demand will decline.
The majority, some 62%, expect fewer people will move in the new year, instead opting to stay and renovate their properties in light of Brexit uncertainty.
NAEA’s Chief Executive, Mark Hayward, said: “We usually see demand spike in the first few months of the year, but the landscape will probably be very different in 2019 as buyers sit on the fence and adopt a ‘wait and see’ strategy until the Brexit deal is complete.”
Meanwhile, 65% of ARLA’s letting agents expect rents in the Private Rented Sector will increase in 2019, compared with 59% of members when ask for their 2018 predictions this time last year.
But whilst 53% believe demand for rented accommodation will continue to rise, over three quarters (78%) warn that rising costs and tax changes will result in fewer landlords operating in the sector in 2019, with a further 67% expecting taxes to rise again.
David Cox, ARLA’s Chief Executive, said: “With all the new legislation landlords have faced over the last few years, they have found themselves either being pushed out of the market or forced to pass rising costs on to tenants – a trend which we’ll continue to see next year.
“However, looking further ahead we firmly believe that the industry will come out stronger, more professional and better respected at the other side. The best landlords and agents will adapt and survive to the new circumstances, keeping the PRS afloat.”
According to the latest rental index by Landbay, the buy-to-let lender predicts rents in Yorkshire & the Humber and the Midlands will increase further next year.