Reflecting on the 2016 lettings market, and what 2017 has in store, Zaza Oswald, Head of Lettings, Carter Jonas Winchester:

“2016 was a seminal year for lettings and with its buoyant market, Winchester was at the forefront of change.

While landlords felt the pressure of Stamp Duty reforms, interest rates dropped and the market was rocked by the unprecedented EU Referendum result, 2017 is a new year and there is already evidence of adaptation and resilience across the lettings landscape.

As we look ahead, our focus is drawn to Brexit and the trigger of Article 50. As the most divisional vote taken to the polls for a generation, Brexit is inextricable from the UK’s economy. However, our Prime Minister Theresa May has shown great conviction as she negotiates the terms of the exit, and all signs indicate a constructive process ahead of the split from the EU, which is expected in 2019.

While 2016 was dominated by scaremongering around the impact of Brexit on the property market, Winchester’s rents have either remained steady or increased. The UK’s departure from the EU also allows for a further two years of growth, creating a cushion against any uncertainty that might emerge nearer the time.

Looking ahead, we must remember that since the millennium, the housing market has proved resilient; while many recall the downturn of 2008, the overall picture of the past 17 years paints an upward trajectory. We encourage our investors to take a long-term view of macrotrends that underpin Winchester’s market historically, rather than focusing on monthly fluctuations.

Demand is unwavering for two-bedroom apartments and three-bedroom houses, which make for a great investment for landlords. We are also inundated with requests for generously proportioned, manageable homes in a central location, which prove consistently popular with tenants.

However, it has proved critical that we maintain a breadth of properties across our lettings portfolio, following a stream of enquiries for homes across the spectrum, from studio apartments to six-bedroom houses. It is worth landlords noting that given the excellent state and independent schools in Winchester, there is a family market to cater for.

Following the Stamp Duty reforms in 2016, there has been a fundamental shift in the mindset of Winchester landlords and how they evaluate rental property. For those buying in cash or looking long term, there are capital growth opportunities and scope for an increase in yields as the loan to value mortgage repayments reduce.

For those looking to sustain their rental yields, it is vital that landlords maintain and refurbish their properties, updating and replacing kitchens and bathrooms before they look dated. For those looking to start or expand a portfolio, Winchester’s new build schemes in the city centre offer good rental yields for investors.

Having just been voted the best place to live in the UK by the Halifax, Winchester enters 2017 with great prospects and growth opportunities, and we welcome any new clients to contact us for advice and guidance as they navigate the year ahead.

Zaza and her team can be contacted on 01962 876838