SarahBeenySpringIssue2017 - 54
Meanwhile, the Financial Conduct
Authority, the watchdog charged
with maintaining financial stability
in the UK, has tightened the rules
on buy-to-let lending amid concerns
some landlords may previously have
One way to ensure you don't come
a cropper is to work with a property
mentor. The potential for making
costly mistakes is huge so a mentor
will not only help you avoid the
pitfalls, but help you realise your goals
more quickly. Property investment
can still be a good idea - if you make
sure you follow the rules...
Times of political uncertainty rarely
go hand-in-hand with soaring house
prices and so it is now with the Brexit
negotiations in full swing.
Some estate agencies such as JLL
and Savills have predicted average
prices across the UK will rise by no
more than 0.5% in 2017. Savills has
even predicted that more than half of
Britain's regions will see no houseprice change at all or possibly even falls
of up to 2.5% by the end of the year.
This means 2017 could be a good
year to shop around if you're looking
for a long-term property investment.
But Sarah Beeny says forecasts by
Tepilo, her online estate agency, are
more optimistic so if you're in for the
long haul then you should see the value
of your investment grow over time.
SUPPLY AND DEMAND REMAINS THE KEY.
WHILE THERE ARE TOO FEW PROPERTIES
AVAILABLE, RENTS WILL CONTINUE TO RISE
Owner-occupation has slowed down
since the economic downturn as
lenders have tightened their criteria
for mortgages, insisting on larger
deposits. Office of National Statistics
(ONS) data shows owner-occupation
has been in steady decline since its
all-time peak in 2001, when 69% of
households were owner-occupied.
Between 2001 and 2011 there was
a 1.7 million rise in the number of
households, the ONS says, of which
1.6 million were renting.
Many experts believe the lack of
new affordable housing (see point
054 | MAY 2017
six) and the threat of an economic
downturn after Brexit will ensure the
rise in people renting will continue, so
demand for rental properties looks set
to remain strong for years to come.
CONTINUE TO RISE
As more and more of the population
turns to renting rather than owneroccupation, rents are set to continue
to rise. Added to that, many experts
believe the recent tax changes (see next
page) will cause some landlords to sell
up, reducing the number of properties
available in the private rental sector,
which will potentially force rents up.
Rightmove forecasts rent rises of
around 4% outside London this
year, although it believes prices in the
capital may stay flat - at least initially.
The area with the highest rental
growth last year was Swansea, with an
annual increase of 11.4%, just ahead of
Gillingham in Kent (11.1%).
However, there is also the 'Brexit'
effect to consider - in the next few
years there may be fewer workers who
want to rent homes in the UK.