Goodbye 2013 – Hello 2014!
2013 may have been the year when the recovery of the UK housing market began following the introduction of the Government’s Help-To-Buy scheme and Funding-For-Lending initiative, but it also saw proposals for greater regulation of the private rental sector including extra responsibilities for UK landlords.
New regulation proposals caused major concern among property professionals after the Government announced that they wanted UK PRS landlords to police the immigration status of all tenants. Landlord associations and industry professionals argued over the proposals claiming that landlords would end up unpaid agents of the UK Border Agency and demanded that the legislation be watered down.
The Government want to have more control over the private rented sector as they know that property investors and landlords are able to generate decent returns offering property for rent as tenant demand remains strong, however there is the danger that over regulation may end up discouraging property investors and landlords from expanding property portfolios.As yet there has been little discussion over the easing of the proposals and landlord associations are keen to keep up the pressure on the Government to withdraw or change the proposals before they are implemented in 2014.
So, what will 2014 bring for property investors?
Despite the proposed legislation changes, the forecast for the UK property market continues to improve with many property professionals and mainstream mortgage lenders already predicting the healthy growth of property prices, with average predictions suggesting property price growth of around 8% in most UK regions during 2014.
Buy-To-Let mortgage availability should also continue to improve, with mortgage lenders easing lending requirements fractionally, allowing landlords to expand rental property portfolios, however despite all the promises previously made by the Bank of England (BoE) over interest rates, these are also expected to increase before the end of the year, a situation that could spell disaster for many landlords who are only enjoying low rental yields from some of their investment properties.
Increased interest rates could be disastrous for property investors unless they are able to switch mortgage product or fix rates for a period of time, the advice to them is to “Be Prepared!”
What do you think will happen in the UK Property Market in 2014?
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