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FREE landlord softwareI'm not particularly convinced by the logic, but Chesterton Humberts are theorising that the increased supply of FTBs will free up rental property, therefore better fulfilling demand with the increased supply, leading to a downward pressure of rents.
Richard Davies, residential operations director at Chesterton Humberts, said: "More landlords may find their tenant(s) giving notice as they move away from the private rented sector and into home ownership."
Well, it's a theory.
Or at least a guess.
Does anyone else have any theory/guess on the effects of the Help to Buy on the property market?
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2 comments:
My take on the situation is exactly the same as Chesterton's. I just wish I didn't find myself agreeing with them of all people... Certainly I can attest to the fact that I have many tenants in inner London areas and have spoken already with 2 in the last month about the possibility of them buying the flat they are living in. This rarely happens to me. So this demonstrates that current tenants are at least considering and looking. If looking turns to buying, they will most likely buy properties similar to those which are rented, which might end up being sold by a landlord. Following this logic, it might not have any effect on rentals after all. My guess though is that the period of year on year substantial rental increases is over for a while...
My belief is that rises in rent have probably topped out for the time being anyway but not for the reasons Chesterton's give.
Rents will stay level for the next 3 months and then begin to rise shortly into the new year. Two reasons for this.
1. There will be a new large influx of people coming from Bulgaria and Romania from 1st Jan.
2. There still remains the major issue of a chronic shortage of property. Where are all the affordable properties going to come from to support the HTB scheme? This is certainly an issue in London where the shortage is most acute.
Cliff (London Landlord).
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