Ruhul Shamsuddin of Lordsons Estate Agents, with his extensive experience in the property sector, shares his perspective on the 2024 rental market. He anticipates a challenging yet hopeful year, marked by key shifts and stabilising factors.
- Landlords Contemplating Sales: Lordsons’ data reveals that about 25% of landlords plan to offload their properties by August 2024. Influenced by rising mortgage rates and diminishing investment returns, plus the looming change in capital gains tax allowance, landlords face tough decisions. Ruhul particularly notes the impact of the reduced capital gains tax allowance set for April 2024.
- Rising Rents with Moderation in Some Regions: Although rental prices peaked in August 2023, Ruhul expects rent costs to continue escalating in 2024. However, some areas may experience a slowdown in the rate of increase, providing some relief to tenants.
- Political Changes Affecting the Rental Market: The upcoming General Election is likely to significantly impact the rental market, according to Ruhul. He points to the varying housing policies of the major political parties as key influencers.
- Energy Costs and Efficiency a Top Concern: The abandonment of higher energy efficiency standards does not diminish the importance of energy costs in the rental market, with rising bills remaining a concern for both landlords and tenants.
- Tax Increases Offset by Stable Interest Rates: While tax costs for landlords are expected to rise in 2024, Ruhul suggests that interest rates might see stabilisation, offering a balancing factor for landlords.
- Developments in Licensing Schemes: The expansion and refinement of selective licensing schemes from 2023 into 2024 are anticipated, reflecting an ongoing commitment to improving housing standards and community welfare.
In his conclusion, Ruhul Shamsuddin predicts a year filled with both challenges and opportunities in the rental market and encourages stakeholders to stay abreast of legislative changes for successful navigation.
