Four leading landlord figures have rejected claims by some within the sector that the property market will crash once the post-Covid boom subsides.
This includes Kay Neufeld of the Centre for Economics and Business Research who this week said current activity levels are ‘not sustainable’ and that rising unemployment will see a significant housing market cooling. She also predicts a 5.5% drop in house prices later this year when this happens.
But senior figures from the landlord community speaking during a round-table at the National Landlord Investment Show show disagree with this outlook.
These were Eddie Hooker, CEO of Hamilton Fraser, chair Paul Shamplina of Landlord Action, property investor Jimmy London and agent Richard Jones.
“I don’t think the property market will ever crash,” said Hooker. “I can see the government allowing inflation to rise in the short term and therefore interest rates could change, which would affect people’s ability to borrow.
“But I don’t think interest rates will go up significantly so I think demand for property across the whole market will continue to be strong.”
Hooker says the big unknown at the moment is the end of the furlough scheme during October/November when up to a million people currently the scheme discover whether they will keep their jobs.
Jimmy London agreed, but said rather than crash, the property market activity will level out and prices may drop as properties take longer to sell.
Richard Jones said that the current boom, fuelled by the stamp duty holiday, low interest rates and the government’s 95% LTV mortgage scheme for first time buyers, will continue throughout 2022 with any correction taking place in 2023.
“It is certainly an extraordinary period – the rental and sales market is flying at the moment and we’re selling properties four or five times over at the moment,” he said.