There is talk that changes happening across the country could well impact on the number of properties available to buy, and Crawley could well be affected. On the 1st of April 2018, the Minimum Energy Efficiency Standards (MEES) is established and it is likely to impact on landlords. This is because MEES requires the owners of property that is rented privately to hold a minimum of an E on the Energy Performance Certificate (EPC) before they can agree any new tenancy.
Landlords are under increasing pressure
Landlords and private owners are now no longer able to offer new lets or extend existing rents if their property holds a F or a G rating. A failure to comply with this regulation is likely to result in a fine with the punishment ranging between £5,000 and £150,000. The size of penalty imposed on the landlord depends on the tenancy term, but this is a penalty that could make many landlords reconsider their place in the market.
These new regulations will make life tougher for landlords but further problems for landlords can be found in changes to the way mortgage lenders judge the suitability of a landlord. Lenders will now consider the profitability of all properties in a landlord’s portfolio, not just the property they want to buy. This means that landlords may have to sell off unprofitable properties or the ever-increasing pressures placed on landlords could see some professionals in the sector decide to sell out.
If this is the case, and there are also landlords who cite the support provided by the Government to first-time buyers as a reason to exit the market, it could lead to an increase in the supply of properties being placed on to the market in Crawley. If landlords sell property and other landlords are not looking to extend their portfolio, there will be more homes available for buyers in the market.
A lack of supply can increase prices
When prices rose in the beginning of 2018, according to Nationwide figures, a lack of supply of homes to the market was cited as the leading factor. If a sizable number of landlords decide that this is the ideal time to exit the buy-to-let sector, the increase in vacant properties may help many buyers find their perfect home, and at a more affordable price.
The last few years have seen many landlords say that they are unwilling or unable to operate in the market. While there will always be a demand for rental property, a large movement from landlords may be enough to impact on the market, which could lead to buyers in Crawley receiving a helping hand.
If you are looking for a helping hand when buying property in Crawley, come and speak to Taylor Robinson. We are always keen to assist you, no matter what your next move is.