MIH TEAM
18/04/24
10 Good Reasons to Choose MIH
020 3637 7968
Link copied
2024 Property Management Forecast in London
Link copied
2024 holds exciting prospects for the property management industry, with technology, sustainability, and tenant-centric approaches taking centre stage.
In the last few years, we have had to adapt to several changes brought about by the revisions made to the Building Safety Act and the Fire Safety Act. MIH acted quickly to secure resources to help clients manage their responsibilities and MIH team member, Joe Starkey, headed up a Special Projects department to focus specifically on this area. This year the Renters Reform Bill may begin to be implemented, we will be keeping a close eye on developments and will be providing plenty of guidance and support when the time comes to prepare for any changes and new requirements.
In this article, we will explore key predictions for property management in 2024 in the areas of block management, commercial property management and residential property management.
BLOCK MANAGEMENT
London’s block management in 2024 is poised to be a dynamic landscape, driven by innovation, sustainability, and a heightened focus on enhancing the quality of communal living and streamlined communication becoming standard. With Knight Frank predicting a 10% increase in property sales, it is even more important that buildings are maintained to a high standard at a reasonable cost. This coupled with a good reserve fund and a long-term maintenance plan can only add to the appeal for any purchaser and MIH is keenly aware of this when looking after your block.
Likewise, the rental market continues to be very strong in London due to the lack of supply and very high renewals. With more students arriving in the capital and corporate professionals returning to their offices in London full-time, rents in blocks of flats are at an all-time high and tenants will be very keen to live in buildings that are looked after.
COMMERCIAL PROPERTY MANAGEMENT
Opportunistic investors will continue to be attracted to parts of the retail market by the high yields on offer and there is an opportunity to buy at the very bottom of the cycle, with retail, industrial and office space looking “comparatively cheap”.
With the prospect of good rental growth over the next few years development schemes are more viable in 2024. Savills’ global adviser predicts that buy-to-let in the London industrial and retail warehouses will all experience annualised investment returns of between 8.5% and 9.2% between 2024-28.
Residential property management
The London residential property market is looking increasingly attractive to investors with lower prices, boosted rental yields and more favourable financing options.
Money markets are forecasting the Bank will reduce interest rates to 4.25% by the end of 2024 and Chestertons forecasts a 5% increase in rents in Prime Central London and the UK and a 4.5% rise in Greater London for 2024.
MIH are keen to work with their landlords to ensure that we can maximise their investments taking a sensible approach to increasing rents while minimising void periods, keeping both tenants and owners happy.
IN CONCLUSION
After a few turbulent years for the London property market, we are stepping into 2024 with optimism. As a Property management company, we aim to proactively adapt to the evolving landscape while remaining committed to providing exceptional service.
