Property insight expert Kate Faulkner will be speaking at our Future Renting conference taking place next month in London, delivering the session: “Market Prospects”. Here, Kate shares what she thinks the future holds for landlords.
Property has delivered amazing returns for most landlords – up until 2005. For those who were invested in the London market in 2000, property prices during this time rose, in just one year by 30-40%. And although it took until 2003/4, for the ‘regions’ property prices to rise across the board, they benefited from increases during one year of 20-30%.
However, since that time, property investment and buy to let specifically, has delivered a mixed bag of results. For some they have seen spectacular capital growth bar a bit of a ‘wobble’ during the 2007-9 credit crunch. While for others they have hardly seen any price growth since 2005 and for some, especially those who bought overpriced new build city centre flats in some areas, prices have shrunk by 50% – and not recovered even 10 years on, with little sign of doing so into the future.
And with the South, London and the East all seeming to be slowing in price growth, coupled with increased taxation and constant changes to legislation along with higher fines, the future for landlords is a tough one.
However, one of the beauties of property investment is that if you know what the problems and forecasts are, you can take steps to mitigate the issues and take advantage of the one thing in landlords favour. This is that we have an increasing population and whether the government likes it or not, more people want and need to rent – as well as buy. Yet, we are still not building enough of the right homes in the right areas to rent or purchase and with the recent efforts to ‘rob Peter and pay Paul’ when it comes to housing, reducing the number of rental properties available to tenants before making sure they have somewhere else to go, means demand is rising, in the main, more than supply.
As far as the future is concerned, it will be tougher to make money and stay in business, but for smart landlords that understand what’s happening now and in the future and how to mitigate the headwinds, there is still plenty for landlords to look forward to.
Future Renting is a national one day conference that the RLA is hosting on the 13th September 2018. Featuring an unmissable line up of speakers and hosted by award winning LBC presenter Clive Bull, you can book your early tickets here.
Watch: Kate Faulkner spoke at our Future Renting North conference in Manchester last month. Here she shares why it is important for landlords to attend conferences.
Find out more
- Check out the full programme of speakers and book your early bird ticket for Future Renting here.