News West Sussex Rental Market: 2018 Expectations
Published by Ben on 13th November, 2017
With 2018 fast approaching, it is natural that people are keen to look ahead and see what predictions are being made for the New Year. For many people, there are fears over what the property and rental market has in store in 2018, particularly in the South East of England. While this part of the country has benefitted from good growth over the past longer period, 2016 and 2017 hasn’t been great, although there have been many reasons for this.
While the market in West Sussex and in South East England is unlikely to fully bounce back in 2018, it is believed that some level of correction will occur. When there is positivity and growth in the property market, it can be argued that there will be a downturn in the rental market but this isn’t expected to be the case for the UK in 2018. The level of demand for rental property is likely to remain strong and research undertaken by Countryside has led them to expect that the proportion of households privately renting in 2018 will reach 25%.
The housing market impacts on the rental market
So many of the factors that leave people with doubts and concerns over the property market only raise demand in the rental market, which means that Brexit, increased interest rates, difficulties in obtaining a mortgage and a lack of suitable supply of property will all play a role in increasing the demand from tenants. Landlords are also being squeezed and there has been a variety of regulatory changes that have hampered their ability to make a living. One issue that has definitely impacted on landlord’s ability to serve was the extra 3% stamp duty imposed on people buying a second or additional property. This came into effect as of April 2016 and many landlords have now decided that it is not in their financial interests to purchase other buy to let properties.
With all of these factors having a strong influence on the market, it is likely that rental fees are going to rise but with mortgages also tipped to become harder to obtain, many tenants will have no option but to find the money required for rental property.
Make sure you know what your budget is
As of November 2017, the average rents per calendar month, according to Zoopla, for parts of West Sussex are:
· West Sussex - £1,079
· Crawley - £985
· Worthing - £938
· Horsham - £1,168
With rental fees expected to increase in 2018, it is best tobear these figures in mind if you are looking for rental options in the New Year. The average price for one and two bedroom properties are usually lower than the overall average for the market, so you may need to adjust your expectations depending on what sort of property you are looking for.
No matter what your rental aims and ambitions are for 2018, it makes sense to call on the services of an estate agent with demonstrable local knowledge and experience. At Taylor Robinson, we are West Sussex estate agents who you can trust for the best guidance and support in the local rental market.