After a year of political surprises and economic uncertainty, the National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (ARLA) share their property market predictions for 2017.
Mark Hayward, the Managing Director of the NAEA, has his predictions and hopes:
- There will not be extensive house price growth in 2017, and the number of property sales will remain steady. Almost half (43%) of member agents expect prices to stay the same.
- As house price inflation stalls, first time buyers should find it easier to get on the property ladder. Encouragingly, almost a third (29%) of NAEA agents think sales to first timers will rise.
- While help for first time buyers is currently focused on new builds, Hayward believes that we should now focus on helping those buying older properties; fixer uppers are better value for money in the long-term.
The NAEA and ARLA Share Their Property Market Predictions for 2017money in the long-term.
- Whenever the Government sets out new housebuilding targets, we applaud their efforts, notes Hayward, but we still haven’t seen a significant increase in the number of homes being built. He insists that we need to see these promises converted into bricks and mortar to create a better housing market for all.
The Managing Director of ARLA, David Cox, shares his property market predictions for 2017:
- The number of new rental properties coming onto the market will drop next year, as a result of the higher Stamp Duty rate on additional properties. Over a third (37%) of agents think supply will drop.
- Over half (52%) of member agents expect rent prices to rise in 2017. Lower stock levels, alongside the reduction in mortgage interest tax relief and the ban on lettings fees, will put upward pressure on rents.
- Demand will continue to rise and, with less stock available for prospective tenants, competition will be high.
- Due to the increase in taxes in 2016, landlords may be forced to sell some or all of their buy-to-let properties and exit the market. For prospective new investors, it will be more difficult to obtain buy-to-let funding in 2017, as lenders strengthen their criteria.
Hayward takes a look back at this year: “It would be an understatement to say this year has not gone as expected. However, the property market is mostly still feeling the effects of events which happened last year.
“The high end London property market is suffering at the hands of increased Stamp Duty taxes, and while Brexit uncertainty definitely hasn’t helped repair this, it’s not the sole reason why London’s more expensive properties aren’t being snapped up at the same speed they were.”
He adds: “Next year, we expect it’ll be more of the same; there won’t be a property Armageddon, but things won’t get much better for first time buyers and those looking to up or downsize.”
Cox continues: “Our private rented sector report findings over the past few months have been positive, and we were confident approaching the end of the year. However, following the announcement of an outright ban on letting agent fees during the Chancellor’s Autumn Statement, we expect rent prices to rise and tenants to be forced to look for properties in cheaper areas.
“The Government continues to lash out against the private rented sector to cover its own failure to build the number of homes this country needs. Such policies will have a detrimental effect on the very people the Government aims to help the most. As a result, we predict 2017 will be a raw year for renters. We now need stabilisation from the Government before tenants are squeezed dry of every penny.”