Home Made: 2020 will see rents rise and a shortage of supply in the PRS
This year rents will rise and more landlords will leave the private rented sector leading to a shortgage in supply, Asaf Navot, chief executive and founder of proptech lettings service Home Made has predicted.
He said: “2020 poses new challenges for buy-to-let investors and landlords.
“We expect rents to rise 3- 5% thanks to market recovery post political uncertainty and a shortage of supply as an increasing number of private DIY landlords exit the market due to changes in regulation.
“But, costs are also rising driven by the inflation of estate agencies fees post the admin-fee ban, increased regulation in the form of new government policies and a generational trend for shorter tenancies.
“Overall, we expect to see gross yields increasing, but operating profit margins going down.
“In this climate landlords need to control their costs and make sure they’re not paying through the nose for agency fees.
“They should also look to take advantage of the potential upcoming drop in mortgage rates for future investments.”