Our Residential Manager, Paula, shares her roundup of property investment and rental news from the first month of 2017 and also sheds light on what to expect in the year ahead...
January is normally a buoyant month for the rental sector, a “New year, new home” attitude often prompts movement in the market.
We saw 2017 kick off with a lift in supply and demand as people begin to look for and achieve their property aspirations. Some tenants feel they have outgrown their apartments and are looking for houses, others are looking for their first apartment away from their families. This all contributes to a busy month at Garness Jones Residential.
January 2017 was our second busiest month in the past year in terms of properties let which presents the promising message that the Hull rental market is as active as ever.
In January we saw tabloid news stating, “England's housing market is "broken", ministers have admitted, as they unveil plans to build more affordable homes.”
It is easy to feel uncertain about what lies ahead for renters and landlords alike – London, for instance, saw a dip of 6.9% versus the previous year although this is more likely due to with the massive hike in Stamp Duty Land Tax and the area having a large proportion of investors.
In Hull, we are in a slightly different position, as we are segregated in terms of location. Our housing is still relatively affordable, and compared to other locations, our rental pricing is very reasonable. This is one of the reasons we are seeing increasing interest from investors outside of the city.
Experts are divided on the outlook for rents in 2017. Many expect a slump in the buy-to-let market with lending criteria tightening ahead of the introduction of new taxes on the sector in April. But others say with few attractive alternatives, individuals will continue to invest in rental properties for their pension. I agree with the second statement, there are very few areas where people can invest their money so surely, bricks and mortar is still as near to a guarantee as you can find to see a return on invested cash.