As we move into 2023 and put thoughts of Christmas behind us, we’re already taking stock of January and how the property market has kicked off.
The lettings market has continued in much the same vein as it finished in 2022. A huge lack of stock across the board from one-bedroom flats to five-bedroom houses has forced tenants into mass competition for the best properties. Rents have risen at record rates from the bottom of the covid depression up to all-time highs across prime West London.
The government’s policy to burden landlords with ever greater tax and regulatory obligations in order to drive stock from the rental market onto the sales market has done nothing at all. It’s constricted lettings property supply, driving rents up and resulting in tenants paying more for less choice, less overall confidence and stability.
We predict the current fundamentals of the lettings market to continue for the foreseeable future. Landlords will be in the driving seat, a position they’ve not found themselves in for some time. It’s important to use this advantage to secure not only the best possible price but also the best possible tenant.
Banks have begun to adjust longer-term mortgage rates as they continue to compete to attract new customers. The turmoil in the mortgage markets following last year’s mini-budget seems to have now flushed through the system leaving behind an average additional 2-point uptick in overall rates.
As with the end of 2022, the prime central London sales market continues to be starved of good quality stock. Pent-up demand for best-in-class family houses will see the first vendor to the market in early spring inundated with viewings and may well result in several large sales coming very early this year. Expect prime properties to be going to sealed bid situations.
Landstones has a positive outlook for the market, and for landlords.
If you’re thinking about selling or letting your property, please get in touch as we’d love to help with your property needs.