As 2024 unfolds, Ruhul Shamsuddin, the founder of Lordsons Estate Agents and known as the ‘Big Silver One,’ brings his decade-long expertise to forecast the rental market’s path. His predictions outline both the challenges and stabilising elements expected in the coming year.
- Landlord Exodus Predicted: Ruhul’s report shows that 25% of landlords plan to sell their properties by August 2024. Soaring mortgage rates and diminishing returns, coupled with upcoming changes in capital gains tax allowance, are driving this trend. Ruhul specifically points out the impact of the reduced capital gains tax allowance coming into effect in April 2024.
- Rental Costs Rising but Moderating: The peak in rental prices was observed in August 2023. Ruhul anticipates further increases in 2024, yet the rate of growth might slow down in certain areas, offering some respite to tenants.
- Political Landscape’s Influence: The General Election’s outcomes will play a crucial role in shaping the rental market. Ruhul highlights that party policies, from the Conservatives’ ‘better deal for renters’ to Labour’s focus on ending Section 21 evictions, will significantly affect market dynamics.
- Energy Bills and Efficiency in Focus: Despite the abandonment of proposals to raise minimum energy efficiency standards, Ruhul underscores the continued challenge of rising energy bills as a primary concern for both landlords and tenants.
- Tax Burden and Interest Rate Stabilisation: 2024 is expected to see heightened tax costs for landlords. However, Ruhul believes that interest rates will level off, offering some relief amidst these financial challenges.
- Evolving Licensing Frameworks: The selective licensing schemes introduced in 2023 are expected to continue, with a focus on refinement and expansion, indicating a proactive stance in addressing housing issues.
Ruhul Shamsuddin envisions a year of both challenges and opportunities in the rental market. He advises buyers and renters to stay alert to legislative changes for informed decision-making.
