2024 lookahead: what RentTech Leaders expect this year
William Reeve, CEO at Goodlord, and Tom Goodman, Managing Director at Vouch share their insights into what's to come in 2024.
With the Renters Reform Bill in its penultimate stage, 2024 will be a significant year. From mortgage rates falling to mergers and acquisitions of agencies, RentTech leaders Goodlord CEO, William Reeve and Vouch Managing Director, Tom Goodman, give their views on what's to come in the upcoming year.
1. Renters Reform Bill
As it’s about to enter the report stage process, the Renters Reform Bill is over halfway through the legislation process with only the final reading left to go. Expected to come into effect in 2024, it's safe to say the bill will continue to be a large focus this year.
William Reeve says, “For agents, there will be plenty to keep them busy in 2024, particularly the Renters (Reform) Bill. It will be vital to stay one step ahead of a busy calendar of political and financial junctures. Staying nimble and being opportunistic will be advantageous in 2024 even more than ever.”
2. Mortgages Falling but Rent Rising
William says “I’m expecting a slight fall in mortgage rates in 2024, but probably not enough to alleviate much of the supply and demand strain being felt by the private rented sector”.
However, unfortunately, “It’s likely to be another tough year for landlords,” says William. “Tenant demand will remain extremely high and rents are likely to continue increasing for some months before hitting their ceiling”.
3. Mergers and acquisitions
Vouch Managing Director, Tom Goodman believes there will be more structural changes in the agency landscape with “ a continued acceleration in agency mergers & acquisitions in 2024, as more agencies acquire smaller rivals or enter into partnerships. With enough capital, this is a proven method of quickly and efficiently amassing scale”.
“We’ve already seen the beginning of this trend; with Dexters acquisition of first Marsh and Parsons and later Life Residential, Foxtons picking up Ludlow Thompson and some rumoured Leaders Romans growth activity”.
4. Independent Letting Agencies
“A key factor will be around the successful retention of not just Landlords and stock, but also key staff responsible for prior success within the incumbent business”, Tom predicts.
“Despite a rise in consolidations, there will always be room for independents, with many landlords still preferring to opt for a smaller, local agent. A rise in corporate M&As in 2024 could actually be an opportunity for boutique agencies to underscore their client USPs.”
Whether it’s an independent or larger letting agency, technology can help find solutions relevant to the modern-day lettings process. Find out how on our RentTech page.
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