UK housing market: Rent prices set to continue rising as bleak autumn looms
Rent prices will continue to rise as landlords quit the property market in record numbers, experts claim
PA
Rent prices will continue to rise as landlords quit the property market in record numbers, one of the country’s leading property associations claims.
The National Association of Property Buyers, warns that the current market conditions are leaving it “deeply unattractive” for landlords to enter - resulting in many existing ones to sell up and quit.
Spokesman Jonathan Rolande said: “At the moment with such a lack of capital growth, you have to ask who would choose to be a landlord?
“Higher rents have gone some way to balance the books but many with a mortgage do little more than cover the interest each month.
The National Association of Property Buyers, warns that the current market conditions are leaving it 'deeply unattractive' for landlords to enter - resulting in many existing ones to sell up and quit
PA"More landlords will try to quit this year as capital values and saleability falls.”
Rolande added that he expects overall activity in the housing market to drop off rapidly in the next six months.
He continued: “The traditional dip in sales during the holiday season is almost upon us.
"Expect sales volumes to fall over the next six weeks exacerbating the downward pressure on prices.
"The normal bounce in September is likely to be very subdued as the burden of increased interest rates begins to bite.
"Those with an existing mortgage are more unlikely to move upmarket, landlords – at least those requiring a mortgage – are not expected to add much volume to their portfolios and many more will exit altogether, selling in the Autumn market."
"With the current circumstances, a price freefall is very unlikely but an increased supply of property and reducing buyer numbers will inevitably lead to anxious sellers slashing prices to attract a diminishing number of purchasers.
"In terms of property, it looks like there is a very bleak Winter ahead.”
Jonathan Rolande said he expects overall activity in the housing market to drop off rapidly in the next six months
PAA report unveiled last week, found that buyer interest, sales and property prices suffered in June as mortgage rates continued to surge.
In June, new buyer enquiries dropped to an eight-month low due to a "renewed deterioration" in the UK sales market, according to the Royal Institution of Chartered Surveyors (Rics).
Many estate agents surveyed by Rics believe further falls could continue over the coming months.