Even though there are many factors shaping the behaviour of the property market in England, there is consensus that a lack of affordable homes is a key factor. Brexit may be the issue that receives most media coverage but if there were more homes on the market, there would likely be more affordable homes and the level of pressure that buyers feel in the market would be lower.
At Williams of Petersfield, we know that many people have concerns about the property market, and they are keen to stay in touch with the latest news. You will also find that people are keen to hear predictions for the property market and information provided by the National Landlords Association is of interest to prospective buyers, property owners and even tenants.
The NLA suggests landlords selling up is likely
The NLA conducted a poll of its members and they found that in the next 12 months, around 20% of landlords are looking to sell property. Of this group looking to sell their property, which equates to around 380,000 landlords, 45% of landlords are looking to sell flats or apartments.
This news is likely to be welcomed by first-time buyers. Flats and apartments are the properties most commonly bought by people stepping on to the property ladder for the first time, so if the market is flooded with these properties, first-time buyers should have a greater chance of buying.
Given that a crucial component of property prices being high is the fact that demand is greater than supply, a significant increase in the supply of properties could lead to prices falling. That is the hope of many people, but of course, when it comes to property prices, the market doesn’t always behave in the manner that you expect it too.
Tenants wouldn’t view this news as positive
While this report will be viewed as positive news by people looking to buy property, it will be concerning news for tenants and people priced out of the property market. Many people find the rental market challenging as it is but if the supply of flats and apartments to the market dropped significantly, there could be ramifications for the market.
It would be reasonable enough to assume that rental fees would rise, and many people would find themselves priced out of the rental market, never mind the property market. Also, with flats and apartments being popular in the rental market, there could be a significant fall in the supply of suitable homes.
There is no guarantee that these predictions will come true. It may be that landlords find it easier to say they intend to sell property in a survey than it is to sell in real life, but there is no denying that the property and rental market will be significantly impacted on if these changes come to pass.
No matter what your aims or ambitions are in the Petersfield property market, it makes sense to be fully informed. At Williams of Petersfield, we look forward to assisting you and if you require any guidance, get in touch and we will be keen to assist you.