Leicester property market analysis Q3/Q4-2016
Following the increase in stamp duty land tax at the beginning of April 2016, the Land Registry data shows a gradual sale volume increase each month in Leicester from 203 in April 2016, to 215 in May 2016, to 268 in July 2016. Buyers really took advantage of the uncertain property market.
Now that the Chancellor has announced that letting fees for tenants are to be banned, I feel that this may not be as beneficial for tenants as it may have been intended.
Richard Price, of the UK Association of Letting Agents, said: ‘A ban on agent fees may prevent tenants from receiving a bill at the start of the tenancy, but the unavoidable outcome will be an increase in the proportion of costs which will be met by landlords, which in turn will be passed on to tenants through higher rents.’
Higher rent means Landlords may be able to get back into the driving seat and explore other avenues in which higher income streams can be achieved.
Rightmove provide in their 2016 3rd Quarter Rental Price Tracker Report:
• ‘Buyer enquiries from potential landlords and investors are now up 30% since May, following a short-term dip as additional stamp duty changes came in on April 1st
• New rental listings this quarter are 6% higher than in 2015, allaying concerns that the drop in investor activity would lead to less choice for tenants’ (Source: http://www.rightmove.co.uk/news/rental-price-tracker/)
With the Christmas period finally here, tenants will be fighting neck and neck to agree tenancies on their chosen homes before Christmas. I would advise landlords to ensure that all the necessary tenant checks are completed alongside property gas/electric safety certification etc. This will hopefully ensure less troublesome Christmas holiday period. Lets be honest, the last thing you need is your tenant calling you with property disrepair / rent payment issues during your family time.