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
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.
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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.
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Healthy returns forecast on buy-to-let properties
With interest rates at rock bottom, one of the best ways of making profit on a nest egg is to look to the buy-to-let property market.
Competitive mortgage rates, increased demand for cheaper properties at the lower end of the market and falling house prices have become attractive propositions for potential new landlords.
Buying property to let is an excellent investment. You can now get yields in excess of 6%, and in some cases up to 8% and 9%, which is more than you would get from investing in a savings scheme. For example, a property worth £100,000 would provide a yield of 6.6% if you charged rent at £550 per month over a 12-month period. It is certainly a great way of capitalising on the current downturn - if you have funds to invest.
Investing in a buy-to-let property can potentially provide landlords with much higher returns than traditional forms of investment. However, to get the best yields, investors will need to use an experienced agent like ours, which is fully insured so the landlord’s interests will always be protected. We also know the local rental market, which ensures investors who are looking to buy a property, will purchase one that is in demand.
haart is a member of the Association of Residential Lettings Agents (ARLA), offering peace and mind to tenants and landlords alike.
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Tenants staying longer
We have noticed at haart lettings that Increasing numbers of tenants are choosing to rent their properties for longer periods because of the credit crunch.
We have seen average rental periods increase from nine months to around 14 months, with tenants staying for longer and opting for security and stability.
The number of people terminating their leases has greatly reduced as people are staying where they are, no doubt concerned about their employment prospects and the squeeze on credit.
Many would-be first-time buyers are opting to rent, even though property prices have come down significantly, preferring to see what happens to the market during the coming months.
As an experienced lettings agent, we are able to give plenty of help and advice to people choosing to rent, particularly if it is their first time. It is important they choose an agent like ours which is a member of the Association of Residential Lettings Agents, ARLA, to give them the peace of mind they require.
At the same time, we need to ensure that landlords’ rights are also protected, and while they are benefiting from having tenants stay for longer periods, we are also advising landlords they should include a break clause in case their tenants’ personal circumstances do change.
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Landlords advised to choose regulated letting agent for peace of mind
As the credit crunch continues to bite, increasing numbers of estate agents are diversifying into lettings, without the necessary experience or training. In addition, more investors are putting their money into property over traditional stocks and shares, creating a higher demand for such services.
Getting it right the first time is always the best policy. Engaging the services of an ARLA-approved letting agent means the landlord will receive the professional help he or she needs to realise an income from their asset without the constant worry that something could go wrong.
Choosing a non-ARLA letting agent or going it alone may leave the landlord with a reduced financial return or hefty legal costs.
Potential pitfalls also include health and safety laws covering fire safety, gas and wiring, and Energy Performance Certificates. Breaches of the legislation can mean a big fine, or even losing the property to local authority control. Recent changes to tenancy deposit legislation require the deposit to be held in a protected account; if it isn’t, the landlord may have to pay three times the deposit to the tenant.
Landlords are invited to contact Spicerhaart if they have any queries, or would like to find out more about renting their property out. For more information, log on to www.spicerhaart.co.uk
Labels: haart, letting agent, lettings, lettings agencies
