HOT TOPIC: BREXIT
Currently the most talked about issue facing the UK investment market, Brexit uncertainty has cause ripple effects across many different sectors and markets. The UK housing market is experiencing a mixed response with the south of UK experiencing asset price depreciation, whilst the north and Scotland experience some growth in property prices. In a recent survey almost all respondents noted that deals were slowing down and investors, sellers and vendors were taking a more cautious approach.
Read more detail here: Developmentfinancetoday.co.uk
UK PRS IN THE NEWS
Landlords continuing to bale out of the property market – as Government intended. The article states, “the main reasons for landlords exiting the market are tax changes, constant regulation and increasing legislation, landlords moving back in to their properties, and lower investment returns, as well as uncertainty over Brexit and what this will mean for the market.”
Read the full article here: propertyindustryeye.co.uk
THE UK MARKET
The UK Private Rented Sector, with a total value of £900bn, is now a significant market sector and credible investment asset class, and one which has recorded consistently high growth over the past 5 years and is projected to continue to grow over the next 5. Property management in the UK continues to be a very fragmented market (over 15,000 agents currently in the UK) dominated by small companies with little scope, appetite or finance for growth. With an increasingly high proportion of total housing stock being in the private sector, significant investment opportunities exist for companies with the passion, expertise and financial capital to capture market share.
The market is extremely fragmented and has developed this way over the last 50 years. This is now changing rapidly driven mainly through new government initiatives such as increased taxation, increased legislation and regulation. The government is determined to tighten up on this previously unregulated sector and improve standards and force professionalism into the market. The days of the smaller landlords and agents are numbered and the market is wide open for larger experienced operators to dominate this sector.