Senior PropTech figures have given their predictions for 2025 – with one predicting a storm ahead of landlords.
William Reeve, the chief executive of Goodlord, says: “I believe this could be the calm before the storm and that rents will see another major spike in 2025. With the introduction of the Renters’ Rights Bill, bidding wars will be outlawed, meaning asking prices are likely to be set that bit higher.
“Likewise, the new compliance requirements landlords must meet will also drive up costs, some of which could be passed on to tenants. And as we’ve seen throughout recent years, demand continues to outstrip supply across the rental market.
“So whilst 2024 was a huge year for lettings, 2025 has the potential to bring even more upheaval and change.”
Reeve says he expects to see rental asking prices to rise sharply, as bidding wars are outlawed.
“I also foresee significant disruption in the student rental market due to the abolition of fixed-term tenancies. As supply decreases, we may see reports of students unable to secure housing or even sleeping rough by the Autumn, unless Parliament makes significant adjustments to the Bill.”
Another PropTech leader – Tom Goodman, managing director of Vouch – adds: “There’s still a lot of heat in the market and house building won’t come quickly enough to disrupt the upward trajectory around rents and demand any time soon. Both landlords and agents should expect the pace to remain brisk and demand to stay strong throughout 2025.
“It will also be a huge year for policy changes. The seismic change will come in the form of the Renters’ Rights Bill, but this won’t be the only regulatory or legal shift the sector will face over the coming 12 months.
“ … I believe it will be a year of pragmatism. With a market that’s moving so quickly and set to experience a huge regulatory overhaul, agents and landlords will be deploying large doses of pragmatism to get themselves through the upheaval. As it’s proved before, the sector is incredibly resilient and good at adaptation. This spirit will be required in spades during the coming year.”
This article is taken from Landlord Today