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- Housing market flying ahead but private rental market tenants in arrears
- Average house price dropped by 1.9% according to the latest Land Registry data
- Agents say pressure to exchange and complete by month-end is biting
- Commercial landlords will endure “another nine months of pain”
- Market cooling, or is it the Euros?
Housing market flying ahead but private rental market tenants in arrears
It may be a boom time for the residential housing sector, but the National Residential Landlords Association feels that as many as 800,000 tenants are behind with rent to their respective private landlords.
The pandemic is seen as the common factor, with NRLA hypothesising that over three-quarters of tenants in arrears racked up the debt during the period of the pandemic.
The situation is not being helped as the government is not giving additional direct cash to ease the situation.
Average house price dropped by 1.9% according to the latest Land Registry data
The latest analysis just in from HMLR shows that in the recent period average house sale prices have dropped by nearly 2% in recent months, though the annual national picture shows an almost 10% rise.
It will be interesting to see if this is just a blip caused by many factors, or if it continues in the coming months.
Agents say pressure to exchange and complete by month-end is biting
A large Independent agent has said: “Because many buyers are looking at up to a 15K saving on stamp duty if they complete by the last day of June, we are getting repeated calls daily to get the sales across the line. But the solicitors and lenders just are not responding. There is going to be a lot of upset people.”
Commercial landlords will endure “another nine months of pain”
The Government has just announced that commercial tenants cannot be evicted for another nine months. Whilst this gives some businesses respite, commercial landlords will be powerless to start with a new tenant who can pay. The government needs to think long and hard about the repercussions.
Market cooling, or is it the Euros?
Some agents are saying that although instructions are low, the pace seems to be dying down from would-be buyers. They are not sure if it is the good weather, which makes people think of socialising, the football, or just the market going into a cooling down phase, as the seasonal trends of holidays typically play into the market.
Andrew Stanton is the founder of Proptech-PR, a consultancy for Founders of Proptechs looking to grow and exit, using his influence from decades of industry experience. Separately he is a consultant to some of the biggest names in global real estate, advising on sales and acquisitions, market positioning, and operations. He is also the founder of Proptech-X Proptech & Property News, where his insights, connections and detailed analysis and commentary on proptech and real estate are second to none.