Property Predictions 2017
With ECO in transition and a lack of progress with a pay-as-you-save model to replace Green Deal, the state of the house sale and rentals market is critical for most Domestic Energy Assessors.
Elmhurst Energy were interested to read the views of the National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (ARLA) and their predictions for 2017.
- There will not be extensive house price inflation in 2017 and the number of transactions will remain steady;
- As house price inflation stalls, first time buyers should find it easier to enter the market.
- The number of new rental properties coming onto the market will fall next year, as a result of the increased stamp duty surcharge on additional properties;
- Lower stock levels, combined with mortgage interest relief and the ban on letting agent fees will put upward pressure on rents
- Demand for rented property will continue to rise, and with less stock available for prospective tenants, competition will be high in 2017
- Due to the rise in landlord taxes in 2016, landlords may be forced to sell some or all of their buy-to-let properties and exit the market. For prospective new investors, it will be more difficult obtain funding in 2017, as lenders up their criteria.
In our view it can be seen that new build volumes have risen steeply in recent months and a domino effect should have a positive impact on the sale of existing dwellings. The observation about private lenders releasing property is interesting and may be an opportunity for corporate investors and maybe an opportunity for Elmhurst Members to work with new clients, especially as the Minimum Energy Efficiency deadline approaches in April 2018.
ARLA are a professional and regulatory body for letting agents; representing over 8,500 members. For more information visit www.arla.co.uk
NAEA are a professional body for estate agency personnel; representing over 7,000 members who practise across all aspects of property services. For more information visit www.naea.co.uk