Rental bonanza is unprecedented says local lettings agency
With demand outstripping supply, rents are currently at an all-time high – and they are likely to stay that way for some time to come.
What we are experiencing is unprecedented. In the last few months, we have seen a soaring demand for rental properties - from one bedroom flats to family homes - and rents are continuing to rise rapidly.
We believe demand for rental properties will continue to surge due to a number of national factors.
The average age of a first time buyer is now 37 and with restrictions on mortgage lending this is unlikely to change.
Student debt is also on the rise which will make buying a property out of the question for many people and we also believe that the public sector cuts will have a huge impact.
Across the board, people are more and more reluctant to commit to buying and want to remain in rented accommodation long-term.
Whilst the boom is good news for landlords who can expect greater returns on their investment, it is not such good news for tenants who are having to fight harder to secure properties.
In this market, the best piece of advice for anyone considering either renting or letting out a property is to research every aspect. Both landlords and tenants should obtain advice from reputable licensed letting agents who can guide them every step of the way.
Labels: Darlows, Felicity J Lord, first time buyers, haart, Haybrook, letting agencies, letting agent, lettings agencies, Spicer McColl, Spicerhaart
Offering a lifeline to landlords
Residential landlords are in need of advice and guidance more than ever before.
With demand for rental properties higher than ever, landlords are not always getting the correct advice to ensure they understand the myriad of regulations involved in renting out a property.
Despite the fact that the new government has recently scrapped plans for a landlords’ register, a huge amount of regulations still govern the private rental sector and it is vital that landlords realise what is involved in renting out a property.
Many landlords are so keen to capitalise on today’s buoyant market that they are neglecting to look into the legal requirements which govern letting a property and this could have disastrous consequences.
More than 50 Acts of Parliament and over 70 sets of regulations govern the private-rented sector and this makes it impossible for landlords to cover all bases. This is why it so crucial that they seek professional advice from a reputable lettings agency which can safeguard them against possible litigation.
One of our recent surveys revealed that over 86 per cent of our clients would recommend our services to landlords.
In today’s market it is more important than ever that landlords safeguard their assets and ensure that they remain compliant with the law.
Labels: landlords, letting agencies, letting regulations;private rental sector
Buy-to-let – still a good investment
Now is the best time in years in which to purchase a buy-to-let property.
With increasing numbers of people choosing to rent rather than buy and the level of demand pushing rents higher, a buy-to-let property is a fantastic long-term investment.
With the shortage of rental properties and increased demand, a buy-to-let property is a great investment.
Many potential landlords were put off buying properties to rent because of fears around a predicted huge increase in capital gains tax.
These have been unfounded and although capital gains tax has increased from 18 to 28 per cent it has not been enough to put people off and with rental yields higher than ever, many new landlords are already reaping the benefits of a buoyant rental market.
Buy-to-let property has proven lucrative for thousands of investors over the years and now is a good time to invest.
Labels: buy-to-let, landlords, letting agencies, letting agent
Landlords must be aware of new planning rules
Landlords may not realise they need to apply for planning permission to let houses in multiple occupation (HMO) under new rules.
Where a landlord lets or is considering letting a property to three or more sharers, this creates a house in multiple occupation (HMO). As a result, they will need to apply for planning permission for “changing the use” from a family home to a HMO.
The new planning rules have been introduced in response to the growth of “sharer properties” in certain areas predominately occupied by sharers such as students and migrant workers.
This legislation has come into place at very short notice and has not been very well-publicised, so many landlords may not be aware of it.
In effect, it means they need to obtain separate planning approval if they wish to let any property as an HMO. Furthermore, as the planning process takes about two months, landlords need to take this into consideration.
The new rules do not apply to tenancies which are currently in place, but a planning application may need to be made on tenancy renewal.
This will undoubtedly cause a massive increase in the number of planning applications and the number of appeals, as well as an increase in cost to landlords. Inevitably, many will now have to consider whether to let to sharers and what hoops they have to jump through to do so.
Do not forget that the HMO licensing introduced in 2006 is still very much in force, where certain types of HMOs require mandatory licensing. In addition, local authorities are able to create selective licensing for other HMOs by type or area under the licensing regulations. This new requirement for planning permission is an additional requirement to licensing.
Conditions are also likely to be attached to the new planning permissions. These could include an order to carry out a full health and safety assessment or perhaps restrictions on the number of cars allowed at the property.
I suggest landlords check with their local planning authority on their particular situation, or call us for advice.
Labels: ARLA, buy-to-let, Darlows, haart, Haybrook, landlords, letting agencies, lettings, properties, rent property, rental properties, rentals, Spicer McColl, Spicerhaart, tenants
Rental income on the rise
Rising demand for rental properties and an increase in rental income is good news for landlords - heralding the return of a more confident lettings market.
Recent figures have revealed that rents increased by 1.2 per cent in February following two months of decline. It is predicted that they will continue to rise throughout the year due to a shortage of rental properties.
A year ago, the market was flooded with rental properties but the situation is now reversing. A shortage of rental properties is already pushing some rental incomes higher and if this tightening in supply continues, landlords may enjoy a further recovery in rents over the course of the year.
However, it is vital both landlords and tenants receive good advice. We are committed to ensuring our landlords get the very best return on their investment and also that tenants are treated fairly.
As the rental market recovers, it is very important that landlords remain realistic about the sort of rental income they can achieve. This is why we offer extensive advice and guidance on how not only to attract the best tenants, but also what sort of rental income is appropriate in today’s market.
Demand for rental properties is very high, particularly as more people are deciding to rent. Competition for high quality rental properties is strong which is good news for landlords and hopefully signals the return a more buoyant market which will benefit everyone.
Labels: ARLA, buy-to-let, landlords, letting agencies, letting agent, lettings, lettings agencies, rentals, tenants
A successful spring for landlords is predicted
With spring just around the corner, landlords should do everything they can to ensure their properties are in the best possible order and reap the benefits of a predicted rise in rental income.
The rental market has seen greater demand but there are fewer quality properties available. This of course means that tenants no longer have as powerful bargaining power as they once did. However despite this, landlords should do everything they can to ensure their properties are presented in the best possible order to maximise their worth and achieve a quick let.
There are a number of steps landlords can take to make their properties not only more attractive to potential tenants but also to ensure they achieve the highest rental income. The property needs to be spotlessly clean, in good order with all the appliances tested and working and of course the legally required safety checks carried out.
Interiors should be painted in neutral colours to give a light and airy feel to the property, worn carpets and flooring should be professionally cleaned or replaced, windows kept spotless and gardens and external spaces immaculately presented. Adding up-to-date lighting and fixtures can also make a huge difference to the appearance of a property.
Spring is a particularly busy time in the lettings sector and the outlook for 2010 is very promising. However it is always important to remember that whereas a buyer might be happy to purchase a tired property which they can then add value to, a tenant wants a home which is fresh and ready to move into immediately. Our advice to landlords is not to expect anyone to live in a property that they themselves would not live in. Keeping a rental property in good order is good news for everyone as it means that it attracts better tenants, yields a higher rental income, and also maintains its value.
Labels: ARLA, buy-to-let, haart, landlords, letting agencies, letting agent, lettings, lettings agencies, properties, rent property, rental properties, rentals, tenants
Landlords urged not to lose out
Many rental properties are not adequately safeguarded against possible weather damage such as burst or frozen pipes or ill-fitting or broken roof tiles which can lead to major problems.
It can be extremely stressful when problems arise. Many landlords work full-time and have other obligations so making sure their rental property is well maintained, especially during adverse weather conditions, although a very high priority can be difficult. This is why it is so important to choose a lettings agent carefully and to consider how the property will be managed.
For example, something as straightforward as a tile which has blown off the roof, can lead to major problems. Replacing the tile will cost very little but if snow or rain seeps through damaging ceilings and walls it can be very expensive. We advise landlords to always consider a full-management service as in the long-run it can save a lot of money not to mention time and inconvenience.
We offer a full property management service with highly trained staff who visit properties regularly and are also very knowledgeable about developments in the law affecting landlords which gives great peace of mind.
We also advise that landlords should appoint an agent who is registered with the Association of Residential Letting Agents (ARLA) whose members are governed by a strict code of practice.
ARLA Membership is achieved only by agents who demonstrate that they have a thorough knowledge of their profession and conduct their business according to current best management practice. All members are required to have professional indemnity insurance cover and are covered by a bonding scheme which provides financial protection for client monies which have been misappropriated. Appointing an ARLA-approved letting agent means the landlord will receive the professional help he or she needs to realise a rental income without the constant worry that something could go wrong.
All landlords want to safeguard their properties which are extremely important financial assets. Choosing an ARLA member and also undertaking a full management service are simple steps which alleviate unnecessary stress.
Labels: buy-to-let, landlords, letting agencies, letting agent, lettings
Landlords benefit from increased rental yields
With the demand for rental property increasing, landlords are cashing in on rent increases and making a profit of, on average, 5.6%.
Nationally, the average rent currently stands at £591 a month and the average cost to buy a rental property is £115,000, with a landlord return of 5.6%. However, in London and the South East where property prices are higher, the rental return is also likely to be increased.
It’s great to see a healthy lettings market and we’re committed to ensuring our landlords get the very best returns on their investment. Our knowledge of the local area and our list of potential tenants means that we can make sure owners get the maximum from their property.
Our figures portray a really positive picture for landlords across the UK. As house prices continue to rise we expect to see some new landlords come to the market; and who can blame them?
Labels: buy-to-let, landlords, letting agencies, letting agent
Top postcode property shortages
A shortage of properties for let in popular areas is leading to rapid rent increases.
Latest figures show that nationally rent has increased for the first time this year since the beginning of the slide in 2007. The average UK rent now stands at £604 per month.
Demand for quality rental properties in sought-after areas is extremely high at the moment. We’re seeing a lot of new tenants moving into rented accommodation while they wait for more stability in the housing market.
This is particularly true in popular areas. These are often areas with things like sought-after schools or good transport links. Here we’re seeing landlords being able to demand high rental returns.
This is encouraging news for the lettings market. Across the UK, some areas saw rent increases of up to 6% in the second quarter of this year compared to the first. Add to that the fact that property prices are stabilising and this means improved yields for landlords and excellent investment opportunities.
This demand for quality rental properties is an opportunity not to be missed by landlords.
Labels: haart, landlords, letting agencies, letting agent, tenants
haart launches residential lettings expansion programme
The haart estate agency group has responded to consumer demand for rental properties by expanding 22 sales branches across the UK to include residential lettings.
With the number of lettings increasing, haart has identified areas of the country where there is a strong demand for rental properties and has trained staff to provide a lettings service in addition to sales.
Haart sales branches that now offer lettings include Streatham, Earlsfield, Petersfield, Hayes, Wembley, Woodbridge, East Ham, Norwich, Norwich Golden Triangle, Westcliff on Sea, Torquay, Hornchurch, Harold Wood, Lincoln, Peterborough, Gidea Park, Grayshott, Lowestoft, Maidstone, Romford, Shirehampton and Wadhurst.
Tenants and landlords expect a good level of service, so thorough training has been a key part of the expansion programme. With lettings continuing to be popular, our focus remains on the excellent customer care for which we have become renowned.
Labels: letting agencies, letting agent, lettings
