While we are focused on the Stockport property market at Spencer Harvey, there is a need to be aware of what is happening in the overall property market in the United Kingdom. No local property market exists in a vacuum, not even the London property market, so it makes sense to remain aware of what is taking place in other areas. There is also the fact that big changes which impact on the entire country will have an impact on the Stockport market, and this is why a recent report may be slightly concerning for some people.
The survey was undertaken by the Royal Institution of Chartered Surveyors, RICS, and they believe that many landlords intend to pull out of the housing market in the next twelve months. This would be a concern for many people and there could be an overall impact on the property market. There have been a number of policy changes that impact on landlords of late, and this has led many professionals to re-evaluate their situation and decide what is best for their needs. With a lot of pressure being placed on landlords and new financial implications for their role, it is easy to see why some people are looking to get out rather than keep battling on.
Tenants may need to move quickly
The people who will be immediately affected by a landlord pulling out of the market will be their tenants. A tenant is never fully settled in a property but there will be some people who are happy in their current home, yet they will find that their landlord is looking to sell up and move out. If the tenant is unable to find the finance to buy the property, and this is a big factor in why many tenants rent as opposed to own, they will likely have to move on.
Of course, if many landlords exit the industry, this means that there will be fewer rental homes on the market. This will make it more difficult for tenants to find property and this may also lead to an increase in rental fees. Simple supply and demand rules will see a drop in supply leading to an increase in rental fees, which is bad news for people who are already struggling to pay rent on a monthly basis.
There will always be people willing to enter the property market but if more landlords decide it is time to leave the sector, there could be new issues to contend with in the UK property market.
Anyone looking to talk about the Stockport property market and wants to find out more about what sort of impact these changes may have should get in touch with us, Spencer Harvey. You can give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html