Are you considering becoming a landlord?
13th April 2023
13th April 2023
Having been letting properties locally for over 20 years we are more than aware of changes that impact market conditions. More recently, we have seen rents rise above pre-pandemic levels as tenants fight it out to secure a property.
Rents soar as stock levels fall
According to figures released in December 2022, the number of homes available for rent is 40% lower than average. This is while the properties available for rent have reduced dramatically to 38% and demand is 46% higher.*
Some landlords are sitting on the fence
With so many changes to interest rates in the latter stages of last year, many landlords have hesitated before making further investments. This is creating more opportunity for new investors to get on the buy-to-let ladder. As others wait to see what happens, now could be the perfect time to invest in property.
More properties are entering the market at the right price
Spring always brings a fresh influx of properties to the market as homebuyers and sellers get on the move. So, this is a good time to find a home that may make a great buy-to-let investment and with a little more room for negotiation.
Renters Reform Bill
The renters reform bill is due to kick in at the end of the year. While it aims to improve rights for tenants, it offers a framework for landlords to address issues arising with tenants. So, in many ways, it’s a good thing and not to be feared by landlords.
With some landlords retiring, even fewer properties for rent become available. This means there is more scope for new investors to fill this gap and benefit from high tenant demand as they move back to cities after the pandemic.
Buy-to-let mortgage deals are recovering
More choices of buy-to-let mortgages are returning to the market, with some 2400 deals available.* This is a sure sign that the market is stable and strong with good levels of confidence, creating the perfect environment for long-term investment.
Tenants are renting for longer
It’s harder for many to get on the property ladder; people are choosing to rent over buy, deciding to invest in lifestyle instead of bricks and mortar.
The demographics are changing
The trend a few years ago was typically that younger people rented before they bought their first home. This has since changed, as we are now seeing more older tenants choose to rent. As a landlord, you are no longer pitching to a younger audience, creating yet more market sector opportunities.
Many renters are looking for bills included
According to Rightmove, tenants are searching for bills included in their search more than ever, and it is the most searched for term in their property portal.**
If you are ready to invest read on...
This is an exciting time to be a property investor. It’s time to move on from the days of making vast profits exceedingly quickly, as has occurred in the past few years. What replaces this is a more stable, lucrative market with better long-term prospects than ever before.
If you’re ready to invest but don’t want the headache of managing a rental property our experienced team can help. We adhere to all the appropriate regulations and legislation, offering a worry free, comprehensive service that you and your tenants can trust. Contact us on 020 8882 7888 to find out more.
*According to Rightmove