SOUTHEND-ON-SEA, UK, 16 January 2024 — As the dawn of 2024 ushers in a challenging yet dynamic landscape for landlords and renters alike, Ruhul Shamsuddin, founder of Lordsons Estate Agents, shares key insights and predictions for the rental market. With over a decade of experience in selling and letting homes, Ruhul, also known as the ‘Big Silver One,’ sheds light on the anticipated shifts and challenges that lie ahead.
1. Landlords Facing Tough Choices: 25% Set to Sell by August 2024
A recent report by Lordsons reveals that a substantial 25% of landlords express intentions to sell their properties by August 2024. Factors such as soaring mortgage rates, diminishing returns on investments, and changes in capital gains tax allowance contribute to this trend. Ruhul highlights the potential impact of a reduced capital gains tax allowance in April 2024, emphasizing the challenges landlords face in the evolving market.
2. Rental Costs on the Rise, but Stabilising in Some Areas
Ruhul predicts that while the cost of renting has peaked, further escalations are anticipated in 2024. Average rental prices reached their zenith in August 2023, gradually moderating throughout the remainder of the year. Tenants may face challenges in coping with higher monthly rental costs, but the pace of increase is expected to slow in certain areas.
3. Politics Plays a Pivotal Role in 2024 Rental Landscape
With the General Election on the horizon, Ruhul emphasizes the significant impact politics will have on the rental market. Anticipating a focus on proposed rental reforms, the Conservative Party aims to secure a ‘better deal for renters,’ while the Labour Party prioritises ending Section 21 evictions. The upcoming election may introduce further policies, urging prospective buyers and renters to stay informed on new legislation and policies.
4. Energy Bills and Efficiency as Rental Concerns
Energy efficiency and the cost of bills are likely to be a factor in the rental market. Although proposals to raise the minimum energy efficiency standard were abandoned, Ruhul highlights the persistent challenge of rising energy bills, making this issue pertinent for both landlords and tenants.
5. Tax Costs on the Rise, but Hope for Stabilising Interest Rates
Ruhul predicts continued increases in tax costs for landlords in 2024. Despite this, he believes that interest rates will stabilise, providing some relief for landlords facing nuanced challenges in managing their financial obligations within the property market.
6. Licensing Frameworks Evolve: Focus on Refinement and Expansion
Selective licensing schemes introduced in 2023 are set to continue in 2024, with ongoing consultations for new schemes underway. Lordsons Estate Agents anticipates increased focus on refining and expanding licensing frameworks for landlords, reflecting a proactive approach to addressing housing and community-related concerns.
In conclusion, Ruhul Shamsuddin anticipates a dynamic year in the rental market, with challenges and opportunities coexisting. Prospective buyers and renters are urged to stay vigilant and informed about legislative changes, ensuring a well-informed approach to navigating the evolving landscape.