Last Updated on: 16th January 2024, 07:44 pm
Ruhul Shamsuddin, the founder of Lordsons Estate Agents, with a rich background in property dealings, unveils his predictions for the 2024 rental market. He anticipates a year fraught with challenges, yet balanced by certain stabilising factors.
- Landlord Sell-Off Anticipated: A report by Lordsons indicates that a quarter of landlords are considering selling their properties by August 2024. This trend, driven by increasing mortgage rates, lower returns on investments, and impending changes in capital gains tax allowance, is highlighted by Ruhul, especially the impact of the capital gains tax allowance change due in April 2024.
- Rent Increases with Slowing Momentum: Ruhul observes that despite rental prices reaching their peak in August 2023, they are expected to climb further in 2024, albeit at a reduced pace in some areas.
- Election’s Impact on Rental Market: The General Election is set to play a crucial role in the rental landscape. Ruhul stresses the importance of differing party policies, from the Conservative’s rental market reforms to Labour’s intention to abolish Section 21 evictions.
- Energy Issues in the Spotlight: Despite the setback in raising energy efficiency standards, the issue of escalating energy bills remains a primary concern in the rental market, as pointed out by Ruhul.
- Rising Tax Costs Amid Stabilising Interest Rates: While landlords may face increased tax burdens in 2024, Ruhul predicts a stabilisation in interest rates, which could offer some relief amidst these financial challenges.
- Licensing Framework Adaptations: The continuation and development of selective licensing schemes, introduced in 2023, are expected to persist into 2024. Lordsons Estate Agents foresees a greater emphasis on refining and expanding these schemes, signaling a commitment to enhancing housing quality and addressing community concerns.
Ruhul Shamsuddin, in his assessment, envisions a rental market in 2024 characterised by both notable challenges and compensatory stabilising elements. He advises those involved in the rental market to remain vigilant and informed about legislative changes, which will be crucial for navigating the evolving market landscape effectively.