With a general election, numerous new taxes, and perhaps some brand new transport hot spots, 2015 will bring some huge changes to the UK property market. But how will these changes affect landlords, and will 2015 be a good year for those looking to buy to let?
In 2014, house prices rose by 8.8% across the country, with the East Midlands in particular witnessing a growth of 6%. In Nottingham, house prices rose by 14% in 2014, placing the city in the top five healthiest UK property markets.
The main thing that landlords, buyers, and letters alike will want to know is – will property prices continue to rise in 2015, or will they fall? The Centre for Economics and Business Research predicts that the combined effect of the election and higher interest rates will cause property prices to fall by 0.6% in 2015, though not everybody agrees. Organisations such as Halifax and the Royal Institution of Chartered Surveyors instead predict growth of up to 5%.
How Will This Effect Landlords?
Regardless of how the property market performs, it seems that speculations concerning rising interest rates, and the effect they will have on mortgage payments, will cause landlords across the country to increase the amount of rent they charge by as much as 3%.
According to a recent survey by a leading online renting forum, around 40% of landlords are planning to raise rents in 2015. 27% will demand around 3% more, which is triple the rate of inflation, whilst 13% are contemplating an increase of less than 3%. On top of this, 55% of landlords claim that they will keep charging the 2014 rates, whilst 5% claim that they’re actually planning to reduce the amount they charge in rent.
On the whole, 2015 is looking as though it’s going to be a good year for landlords. Throughout 2014, across the country we saw falling rent arrears, rising rent prices, and a growth in demand for rental property. According to a study by a leading property firm, this has made many landlords feel optimistic, and over 50% are looking to expand their property portfolios in 2015.
The predicted rise in property prices will result in a decrease in the amount of UK homeowners, which of course will serve to increase tenant demand across the country. This means that, in 2015, buying to let will likely remain a very good investment.
Full Property Management From Fairveiw Estates – Because Being a Landlord Shouldn’t Be Hard Work!
Whatever happens in 2015, we at Fairview Estates will go out of our way to make life for landlords as easy as possible.
Costing just 10% of the total rent over the course of the tenancy, our Managed Plan is designed to help you to make the most out of your property investment. It’s thanks to our Managed Plan that we regularly receive five star reviews from our customers.
As part of our Managed Plan, we will conduct periodic property inspections and issue safety inspection reminders to help you fulfil your legal obligations. In addition, we will manage utility transfers, before undertaking the many complex tasks that arise at the end of the tenancy. We also offer a keyholding service, and 24 hour maintenance call outs.
For more information on our letting fees, or to discuss which plan is right for you, feel free to get in touch. Call us on 0115 958 7791, or email firstname.lastname@example.org.