Story from Jam Press (Rental Market Predictions) Pictured: Ruhul Shamsuddin is the founder of Lordsons Estate Agents in Southend-on-Sea. Estate agent reveals rental market predictions for 2024 and it's looking bleak – but says 'interest rates and rent costs will stabilise' An estate agent has shared his top rental market predictions for 2024 – from why you should monitor politics closely to considering energy bills before moving house. Ruhul Shamsuddin, founder of Lordsons Estate Agents in Southend-on-Sea, has over a decade of experience selling and letting homes. With rising costs across the country, many renters and landlords feel uncertain about the future of the market. According to Ruhul, who is also a portfolio landlord with commercial, residential and HMO properties, there are more tumultuous changes to come. “The dawn of 2024 heralds a challenging yet dynamic landscape for landlords and renters alike,” said Ruhul, who is also known by his moniker, the ‘Big Silver One’ in the real estate sector. MORE LANDLORDS WILL SELL-UP A whopping 25% of landlords HAVE expressed intentions to sell a property by August 2024, according to a report by Lordsons. Soaring mortgage rates continue to squeeze them out of the market, minimising returns on investments, among other factors such as capital gains tax allowance. Ruhul said: “Given that the 2024 market landscape is expected to mirror the preceding year, it is unsurprising that landlords continue to weigh their options. ”While some landlords may endure, a potential deterrent is the further reduction of the capital gains tax allowance in April 2024, decreasing from £6,000 to £3,000. ”In March 2023, the CGT allowance stood at £12,000 and these alterations have substantially heightened tax obligations for many landlords who have opted to sell recently. ”Despite these challenges, only three per cent of landlords are planning property purchases in 2024, according to our research.” RENTIN

Ruhul Shamsuddin of Lordsons Estate Agents, with his extensive experience in the property sector, shares his perspective on the 2024 rental market. He anticipates a challenging yet hopeful year, marked by key shifts and stabilising factors.

  1. Landlords Contemplating Sales: Lordsons’ data reveals that about 25% of landlords plan to offload their properties by August 2024. Influenced by rising mortgage rates and diminishing investment returns, plus the looming change in capital gains tax allowance, landlords face tough decisions. Ruhul particularly notes the impact of the reduced capital gains tax allowance set for April 2024.
  2. Rising Rents with Moderation in Some Regions: Although rental prices peaked in August 2023, Ruhul expects rent costs to continue escalating in 2024. However, some areas may experience a slowdown in the rate of increase, providing some relief to tenants.
  3. Political Changes Affecting the Rental Market: The upcoming General Election is likely to significantly impact the rental market, according to Ruhul. He points to the varying housing policies of the major political parties as key influencers.
  4. Energy Costs and Efficiency a Top Concern: The abandonment of higher energy efficiency standards does not diminish the importance of energy costs in the rental market, with rising bills remaining a concern for both landlords and tenants.
  5. Tax Increases Offset by Stable Interest Rates: While tax costs for landlords are expected to rise in 2024, Ruhul suggests that interest rates might see stabilisation, offering a balancing factor for landlords.
  6. Developments in Licensing Schemes: The expansion and refinement of selective licensing schemes from 2023 into 2024 are anticipated, reflecting an ongoing commitment to improving housing standards and community welfare.

In his conclusion, Ruhul Shamsuddin predicts a year filled with both challenges and opportunities in the rental market and encourages stakeholders to stay abreast of legislative changes for successful navigation.

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