Welcome to Part II of our final collection of updates and insights for 2024! As we approach the end of another busy year for our industry, we conclude by drawing your attention to several positive trends that have emerged within the housing sphere, and by highlighting a number of situations, events etc. to keep an eye on.
Housing
The Renters’ Rights Bill in the UK:
With the introduction of the new Government in July 2024, elements of the Bill are still subject to change. However, as it stands:
- The Bill is expected to come into force between late Summer and October 2025.
- Section 21 ‘no-fault’ evictions will be abolished.
- Fixed-term tenancies will be abolished, with all assured shorthold tenancies becoming periodic.
- It is more common for tenants to serve notice to end a tenancy rather than for landlords to do so.
- New guidance will be introduced to help landlords regain possession of their property if specific criteria are met.
- Landlords will still be able to propose rent increases, but only through an annual process aligned with market rates and only on the anniversary of the tenancy.
- Landlords may opt for NHA (Non-Housing Act) or corporate tenancies to ensure certainty of terms and to gain more flexibility.
Many London estate agents believe that good landlords, i.e. those who maintain their properties well and who have a long-term rental strategy, shouldn’t be overly affected by these changes. Despite this, some landlords may choose to leave the market, keeping competition for available properties high. More landlords are requesting mutual break clauses whilst they are still able to, not necessarily because they plan to end tenancies early, but as a safeguard in case financial circumstances or tax policies change and they need to have the option to sell available to them.
APAC:
- In Shanghai, there has been increased investment in corporate serviced accommodation. However, due to the high demand for temporary housing, availability is already becoming limited.
- Rental pricing for permanent housing in Shanghai and Beijing has stabilised. Local residents may take advantage of this and upgrade their housing.
- Selected markets such as Tokyo, Hong Kong, and Seoul are experiencing quarter-over-quarter growth.
- India remains a strong market for training and short-term assignments.
- Locations impacted by the energy sector, such as Brisbane, Kuala Lumpur, and Jakarta are seeing temporary housing volumes fluctuate based on the business and staffing needs of major industry employers.
- The Global Business Travel Association (GBTA) has identified APAC as the travel market which will end 2024 with the greatest annual overall growth in spend and volume.
EMEA:
- In Amsterdam and Copenhagen, new property development is limited due to government restrictions and stringent green energy building requirements.
- In Paris, temporary accommodation costs have now stabilised following the Summer Olympics.
- In Cape Town and Johannesburg, most serviced accommodation properties are fully booked out until the end of March 2025. The cost of those properties that are available is extremely high.
- Sticking with Cape Town and Johannesburg, many long-term rental properties have been rented out as holiday lets, meaning that they won’t be available to lease until February.
The Americas:
- New York City, Vancouver and Mexico City continue to be the major markets to keep an eye on. All three cities are experiencing further location and business travel growth, even with activity in Mexico City dipping in the third quarter of the year.
Keep an eye on…
- K2 China opening! – Our new office in Shanghai, which will be fully operational by Q1, 2025, and which will extend K2’s global footprint to 14 offices across 11 countries. As has been the case since day one, our clients are the driving force behind our international growth. By establishing an on-the-ground presence in China, we will be able to more comprehensively support those clients who have activity within the country, plus enhance our operational efficiency globally.
- Burkina Faso, Guinea and Niger, which are currently under military rule and in a heightened state of political instability. Rapid changes in the political landscape are likely.
- Juba in South Sudan, where political unrest may result in the suspension of services.
- South Korea, which is experiencing unrest following the motion to impose martial law. This unrest may cause some disruption to on-the-ground service delivery as well as an increase in costs.
- Rome, Venice and Florence in Italy – these three cities will be welcoming many visitors in celebration of the Jubilee, which commences on 24th December 2024 and continues throughout 2025.
