Landlords predict property prices to increase despite pandemic effects

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LANDLORDS believe property prices will rise despite fears of the long term implications of the pandemic a new survey has revealed.

Almost three-quarters of landlords who responded to the survey were optimistic about investment and price prospects.

The findings are said to outline the nation’s resilient housing market with a particular focus on the buy-to-let private rental sector.

Asked whether they believe average property prices will increase in the next five years, 71.5% predicted they would.

London Street, Edinburgh - Property News Scotland
The new findings are said to reflect the UK’s resilient housing market

Another 19.9% revealed they thought they would stay the same, while just 8.5% anticipate a decrease.

With concerns about what the end of the furlough scheme on March 31 may mean for unemployment, both landlords and letting agents are said to appear to be pragmatic, with 37% predicting a price increase in the next two years.

Another 37.9% believe they will stay static in that timeframe, with 25.1% believing they will see a fall.

The predictions emerged from a survey of 300 landlords, letting agents and other property professionals  accounting for an estimated 10,000 homes by Portolio

Ross MacDonald, Portolio director of sales - Property News Scotland
Ross MacDonald, Portolio director of sales

Ross MacDonald, Director of Sales at the Edinburgh-based firm, said: “Despite the general economic uncertainty that we find ourselves in, these predictions show that investors have faith in the resilience of the market – and that buy-to-let are solid investments for people to make.

“The ongoing support of lenders is, of course, critical across the entire market. Throughout the pandemic they have stood by borrowers. Them continuing to do so is an important part of the economic recovery that everyone is desperate to see.

“The signs remain positive that – beyond the discomfort that we will feel from furlough ending and job losses in industries important to the private rental sector such as tourism, hospitality and retail – that the economy will adjust and stabilise. That’s clearly reflected in landlords’ outlook.”

Figures from the UK Government’s House Prices Index (HPI) last month showed that house prices in Scotland are growing faster than the UK as a whole.

They rose by 8.6% in the year to November 2020, with the average house now costing £165,703. The UK annual rate was 7.6%.

It is hoped that the long-term price optimism will continue to bring new buy-to-let investors to Scotland’s property market.