At Williams of Petersfield, we do our best to support our clients, but we know that many people find the present-day property market to be challenging.
There is a wide range of factors that influence the market, which makes it difficult to for even experienced professionals to know what is coming next. In recent times, you will have heard Brexit and a decrease in real wages cited as factors that have made it difficult to buy property, but the role of landlords and agents have also been criticised, with many saying irresponsible landlords have harmed the industry.
One of the areas that has come in for criticism has been overpricing. The former president of the National Association of Estate Agents, the NAEA, has claimed that irresponsible landlords and agents have harmed the UK property market. Simon Gerrard says the actions of agents in trying to win clients and meet targets has pushed property prices higher and has caused a lot of uncertainty and unhappiness within the market. With some agents overvaluing properties, agents who aim to price fairly have been overlooked and left behind in a highly competitive market.
Rental and property markets are highly competitive
There is no denying that the property market, and the rental market, are highly competitive. This means agents are competing to win clients and one of the most effective ways to convince a client to sign with you as opposed to a rival firm is through financial incentives. This leads to estate agents increasing the initial asking price for a property and for letting agents to promise higher rental fees to landlords. You cannot blame for property owners looking to sell and for landlords looking to maximise their monthly income but in the long-run, this approach is harming the market, which is why the efforts of irresponsible landlords causes concern.
This situation was apparent in 2017, at least according to figures provided by NAEA Propertymark. In their year-end report, it was stated that 77% of properties were sold for a lower price than the initial asking price of the property. By contrast, just 4% of properties sold for a price higher than the initial asking price.
Should irresponsible landlords be monitored?
If this trend continues, it is likely to cause further problems in the property and lettings market. If sellers or landlords start to see that they are not going to receive the price or rent that they expect to earn, they may decide against placing their property on to the market. In January of 2018, property prices rose unexpectedly, after many specialists predicted that prices would fall at the start of the year, and it is believed that an unexpected drop in the supply of properties led to this rise in prices.
If you are looking for an estate agent that has a responsible approach to the property and lettings market, come and speak to Williams of Petersfield. We are more than happy to provide you with the