Private landlords are concerned about their current or future property investments and what the UK property market has in store for 2019.
With Brexit the biggest issue for the country, it is still uncertain how it will impact the demand for rental accommodation or property prices in the UK.
Here is our guide to what will impact the UK property market in 2019.
Predicted Rise in Property Prices
Halifax published its property outlook for 2019, with a positive message that house prices have risen at the end of 2018.
The bank also predicts that house prices will rise throughout 2019, forecasting a rise to 2.4 per cent.
The need for first-time home buyers to raise a large deposit is still acting as a deterrent to those hoping to buy a home, which limits the number of potential buyers.
In 2019, mortgage payment affordability is difficult to anticipate. There are competing factors, with possible annual pay growth potentially supporting affordability, but the risk of higher interest rates will pull affordability in a different direction.
With house building still at low levels and a shortage of homes on the market, this will continue to support high house prices, which will also inhibit demand in the year ahead.
Positive News for Landlords
The rise in property prices and a shortage of homes creates a positive outlook for landlords, as capital growth will increase the value of investment portfolios.
Investor landlords with large portfolios are examples of which businesses would use property inventory software. A useful tool, property inventory software ensures the checking in and checking out of tenants is as seamless as possible.
The difficulties of saving for a deposit also ensures that there will be plenty of tenants available to rent good-quality homes. Interest rates are also predicted to remain low, as it was thought that the Bank of England would increase interest rates in May 2018. However, this did not happen, which created a more positive outlook for landlords.
In February 2018, the Monetary Policy Committee committed to keeping the current bank base rate of 0.75 per cent due to the potential impacts of Brexit, along with gloomy forecasts for economic growth. This will mean that landlords who have buy-to-let mortgages will not have increased financial pressures in the short-term future.