Rick Flay, director at Belvoir Sheffield, the leading letting agent in Sheffield has today warned that 2012 will not bring huge price rises to the residential property marketand is advising landlords to look at their investments over a ten year period.
As the chamcellor George Osbourne delivered his autumn statement on Tuesday, the outlook for the property market seemed pretty grim indeed, but for the residential landlordtaking into account the ‘bigger picture’ there are some long term benefits to be reaped.
Failing to do enough to awaken the first time buyer crisis earlier this week, the Chancellor announced that the stamp duty holiday would not be extended beyond next Marchadding fuel to the fire that more needs to be done to breathe life into the new buyer market.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of property to rent in Sheffield, said: “The Chancellor’s decision to not extend the stamp duty holiday has been met with fierce opposition, and some may say that this move to restrict first time buyers will mean that demand for rental properties will remain strong. This is of course great for the residential landlord because it will mean fewer void periods and a steady stream of tenants.
“What isn’t as positive however, is that the cost of living is set to rise and more redundancies will be expected especially from the public sector in 2012. This means that landlords will have to be very careful indeed to avoid non-paying tenants and arrears. This is why any landlords who are keen to protect themselves such use a reputable lettings agent such as Belvoir Sheffield.”
Recent reports stillcontinue to suggest that investors are increasingly viewing property as an alternative to the stock market and other ‘safe’ forms of investment, there is now an unprecedented opportunity for investors to buy property at below market value and benefit from a huge uplift in rental yields which will bring impressive returns over the long term.
Rick added: “I predict that 2012 will not bring huge increases on rental yields and that landlords should be instead be taking a ten year view on their investment.
The year ahead may become a bumpy ride. I predict that 2012 will see:
- An increased trend for renting, with many homeowners becoming ‘reluctant’ landlords due to lack of choice
- There will be an influx of irrational buyers and sellers and for sales falling through at the last minute
- The market will be confidence driven
- Ambivalent sellers will flee the market, but there will be more ‘have to’ sellers
- Some great buying opportunities for new landlords or landlords wanting to expand portfoilios
Belvoir Lettings Agency Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs andRenovations, Furniture Packs and Investment Property Insurances and Mortgages.
