Welcome to Edition #6 of our Weekly Property Roundup, where we’ve done the hard work sifting through the week’s most relevant news so you as a landlord, tenant or investor can be confident you’re up to date with everything you need to know in the property world.
This week’s Top 3
Landlords have recently been challenged by tax and regulatory changes, which has meant a concerning fall in the number of landlords in the private sector. Around 133,000 homes in the UK private rented sector could potentially be lost due to landlords selling up due to the tax changes making it unviable to operate in the sector. According to the RISC UK Residential Market Survey, the supply of rental properties has fallen for the 21st consecutive month. However, this is a particular concern due to the high demand for rental properties, as more people are looking towards renting as a long-term solution.
Almost half of aspiring first-time buyers are feeling pessimistic about their chance of owning a home, whilst at the same time the private rental sector has doubled in 20 years. A study from the Bank of Scotland showed that 48% feel they will never buy their own home, with less than a third feeling confident about their purchasing prospects. According to this research, a surprising 31% believe it is normal to think that they will never become homeowners. Simultaneously, the number of people living in privately rented homes is constantly growing, and in England has doubled over the past 20 years.
The residential forecasts for Scotland are especially positive for Edinburgh and Glasgow. JLL’s residential forecasts outline the key predictions, in terms of economy and the housing market, for the next five years. With increasing urbanisation and city living, both Edinburgh and Glasgow are set to experience stronger economic growth compared to both the regional and national averages over the next five years. The Edinburgh economy (GVA) is forecast to expand by an average of 2.3% pa, and Glasgow 2.2% pa, both above the national average. In terms of the housing market, Edinburgh and Glasgow house prices are expected to outperform. The market in Glasgow has seen a significant shift towards Build to Rent (BTR) – 2,500 units are in the BTR planning pipeline, with 1,000 set to be completed over the next 3-4 years.
Landlords are leaving the sector, and the number of rental properties has fallen for the 21st consecutive month, despite the rise in people looking towards renting as a long-term solution.
Almost half of aspiring first-time buyers are pessimistic about ever owning a home, and almost a third believe this is normal.
Residential forecasts for Edinburgh and Glasgow look positive for the next five years, with both major cities set to outperform the national averages in terms of economy and the housing market.
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