Renting to overtake home sales in 2017 - Palmers Solicitors

Renting to overtake home sales in 2017

Renting to overtake home sales in 2017

A new study has found that, for the first time since the 1930s, property lettings may overtake property sales – a trend which could benefit the buy to let market.

In recent months the buy-to-let sector in the UK has been hit hard by changes to tax and regulations, which looked set to affect returns on investment properties and yet, if new figures from estate agents Countrywide are to be believed, the UK is about to experience record levels of lets agreed.

This new report comes on the back of other research which shows that homeownership is at its lowest level for more than three decades.

Analysis by Countrywide, into the number of homes advertised for sale and for rent online, showed that during the past five years, rental activity has been catching up with sales and is likely to exceed them in 2017.

Johnny Morris, Research Director at Countrywide, said: “As some would-be buyers and sellers sit on their hands, Brexit-induced uncertainty has continued to boost the rental market. September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts.

“On current trends, 2017 could be the first time since the 1930s that more homes are let than sold.”

Meanwhile another report from online estate agent, Rightmove, showed that sellers coming on to the market in October asked 0.9 per cent more for their properties than those putting their homes up for sale in September – hinting that the trend is likely to continue as prices increase.

Nicola Tubbs, an Associate Executive with Palmers, who specialises in legal services for residential landlords, said: “Landlords have not had the easiest of years with the introduction of additional stamp duty, but this positive news for the rental market suggests that not only is the sector weathering the storm but that business is buoyant for many.

“Whether you are letting out a single property to supplement other income or a pension or are running a large portfolio as a full-time business, quick, easy access to expert legal advice can bring real benefits. Of course, as with any business, specialist taxation advice should also be sought from accountants.”

To find out more about Palmers complete range of services for residential landlords, please contact us.