What is the Property Market Outlook 2017?
Don Holmes, the Managing Director of Go Direct Lettings ask this question and more here.
Hi, In the first-place Happy New Year and welcome, as if you are reading this you are also visiting our Brand-New website.
There have been many predictions by many different commentators about what to expect in the property market during this year, of course much of it is bull, guess work and unfounded speculation, as the recent bank of England’s change in the UK economic growth predictions have indicated, changing its 2017 predictions from 1.2% to a full 2% anticipated growth this year.
What’s that all about, it’s clearly a political blunder as most of this last 6-8 months has been and we are still waiting for ARMEGEDDON?
The facts, in as much as property is concerned are clear, the UK should have been delivering 250,000, ¼ of a million, new homes every year. But for the last 25 years or so we have failed. We are therefore now about 1.8million to 2 million homes short of indigenous needs.
The Private Rental Sector (PRS) was during the period between the introduction of the 1988 Housing Act as amended in 1996 been drifting along on a quiet wave causing no one any concerns, until about 1995/6 after the interest rates of the time between 15-18% settled back to some manageable levels and the birth of the “Buy to Let” mortgage. At the time, private Landlords were counted in their thousands, today over 2 million private Landlords own 4.9 million let properties, equating to 19% of the UK housing market, valuing at just under ONE TRILLION POUNDS. It is further estimated based on the major failing of new build’s that a further 1 million buy to let properties will come into the market over the next 5 years.