Spring Statement Prediction
It has been indicated that the Spring Statement will simply be limited to an economic update and a response to the latest forecasts.
We are not expecting property to play a large role in the Spring Statement, however, we are expecting an update on the property tax regime. In the Autumn Budget 2018, Hammond announced that Lettings Relief would be limited to properties where the owner is in shared occupancy with the tenant. Interestingly, Royal Institute of Chartered Surveyors (RICS) has suggested that the move is causing smaller landlords to exit the market. When reviewing our business data, we have seen no evidence of this, suggesting that this is not the case in the North East and that the economic update will further clarify our findings.
Looking holistically at lettings market predictions… it is difficult to foresee how the tenant fee ban coming into play from June will affect the rental market, rents may increase at the time as landlords feel pressure from agents who may increase their management fees to compensate for losses in tenant fees.
It is important to make reference to the Right to Rent checks, in which the High Court recently ruled is in breach of the Human Rights Act; if it is rescinded it will help to ease the legislative burden on agents currently.