Every new year brings with it a flurry of predictions and goals for the 12 months ahead across many industries. Real estate is no exception. The past few years have been turbulent in the property sector, largely due to the uncertainty due to Brexit. Fewer overseas investors are interested in snapping up property in the UK without knowing how well the economy will recover.
Similarly, property management companies are changing their style to suit the long-term renters and changing building regulations. In fact, it’s forecasted that the built-to-rent system will be in the spotlight, along with home improvements and a focus on health and safety.
Here’s a look at those predictions in more detail:
The Built-To-Rent System
The built-to-rent system has been in talks since 2017. It’s a system that attracted £2.4bn in investment for purpose-built blocks of rental homes. For tenants, it’s set to offer a more streamlined renting experience with the personalised, superior quality style property management Manchester and other main cities are famed for. They’re tailored towards “hard-working professionals” with a monthly rent price-tag to match. These private rental communities are, on average, 11% more expensive than other rental properties in their area.
Property management will be forced to give the same care and attention to residential properties as they already do to commercial property management. This is because the calibre of the new BTR homes is much higher, offering tenants a new standard of renting. Many developments include amenities such as gyms, cinema rooms, communal lounges and gardens. Residents will no longer stand for below-par property management in response to the premium prices.
2019 is set to be the year where the built-to-rent system truly takes off in areas up and down the country. It’s also great for investors who have been put-off by Brexit, offering them a more secure scheme to be a part of. It’s anticipated that property buyers from the USA, France, Canada and Spain will be entering the UK property market as a result of the system. Additionally, because the built-to-rent scheme has the potential to fulfil the demand for homes and improve conditions for renters, many have backed it as an efficient way to solve the UK housing crisis.
Improving, Not Moving
Homeowners are taking advantage of easy credit, meaning that they can install a new kitchen or extension for virtually nothing if they manage their borrowings right. Building on your existing home has always been an appealing factor to property owners, adding a great deal of value to the house. Whether it’s a simple conservatory, loft conversion or full scale extension, home improvements could be the way forward for many. Many believe that because of Brexit, home owners will be less inclined to move house or upscale this year, meaning that renovations may prove to be even more popular.
It’s also great news for property management companies or landlords, who are presented with opportunities to potentially expand their property by a number of rooms or even another floor. Home owner’s not wanting to budge also makes it difficult for young professionals to enter the property ladder – which is there the aforementioned built-to-rent may come into play. More young people are inclined to rent than consider moving into a house, a trend which is predicted to continue this year.
Health and Safety
After the Grenfell Tower tragedy in the UK, the aspect of health and safety has been raised as a matter of upmost importance for every property management company. In 2017 and 2018, we saw a call for action in removing unsafe cladding from buildings. The Grenfell Tower property management company claimed the blame lied with Kensington & Chelsea council. Council’s up and down the country were forced to re-evaluate their current practices in regulation over construction and property management companies. In 2019, it’s expected that health and safety will be stepped up a notch to meet the high standards now in place. For property managers, this may mean spending more money per property than they did previously.
A Year of Change for the Better
The year ahead is certainly looking busy for changing property management practices. Not only will commercial property management be revisited, but it may be that residential property is also managed to the same degree. This has been long overdue, with more needing to be done about exploitative estate agents, unfair agency fees and improved safety checks.
Furthermore, it will be interesting to see whether the proposed built-to-rent system is able to alleviate some of the concerns the UK government has about the housing crisis. As with all predictions, it’s yet to be seen whether any come into fruition over the course of 2019. The only thing certain is that it will be an unprecedented year for the housing market thanks to Brexit.