Both the Sales and Lettings markets locally have seen their ups and downs.
Data from the NAEA says in the sales market there are 425 registered prospective buyers for 44 properties each month. Yet conversely, 77% of properties were sold for less than their asking price, and only 4% were sold for more than the original asking price.
The Lettings market, as always, peaked at the start of the year, with an average of 1,800 registered prospective tenants for 188 properties each month. 27% of tenants had experienced rent increases, and it was taking 10% more viewings per property to find a suitable match.
‘It was always going to be an interesting year, following the announcement of the letting agent fee ban in last November’s Autumn Statement. I think we’re starting to see a consolidation of some agencies in the industry as the fee ban looms, which could explain why the number of properties under management has increased,’ said David Cox, ARLA chief executive.
He pointed out that landlords are becoming more selective about their property investments in light of last year’s stamp duty changes. ‘Mortgage Interest Relief (MIR) is starting to bite which is why we saw an increased number of landlords selling up. It’s likely that as we move into 2018, tenants will continue to see rent increases as supply starts to reduce, demand continues apace, and legislative changes increase costs for landlords,’ he added.
2018 will pose new challenges and new adventures for us as an independent and local agent in North Manchester.
Our knowledge of the market makes us highly attractive to overseas and remote investors, we specialise in a densely populated 10 mile radius, containing over, 300 communities and 1.5 million properties. Our average BTL yield is 6-8% and the population growth of the city is expected to swell a further 10% within the next 5 years.
Our managed portfolio continues to grow as we see further remote and overseas investment coming in. We are forecasting a manageable growth of 20-30 properties/month as we enter 2018 and are restructuring internally to absorb the upcoming ban on tenant fees.
2017 has had its ups and downs, 2018 will bring whole new challenges – and we will be ready for them.
Merry Christmas from Mike and All The Team @ Brentwood Lettings