The last 18 months have seen a big shift in the UK rental market with the amount of residential properties available for let increasing by a massive 68 per-cent.
Belvoir Chesterfield, the regional property specialists, offering property to let in Chesterfield, sees this
flood of new properties coming onto the rental market is the result of homeowners choosing to let their properties and become ‘accidental’ landlords rather than try and sell in a depressed housing market.
As the number of properties available to let grew sharply, this was initially matched by a big increase in the number of people looking to rent as they were unable to raise the funds necessary to buy their own home. Rental incomes continued to increase until reaching a peak in June 2008, after which they went into decline as supply started to outstrip demand.
As well as being caused by the glut of new properties coming onto the market, the national fall in rental income witnessed in the second half of 2008 (see the Belvoir Lettings Rental Index attached) was, according to Rick Flay, Director of Belvoir Chesterfield, also due to significant numbers of migrant workers leaving the UK to return home as a result of the economic down turn. However Belvoir’s Lettings Rental Index shows that rental incomes are once again on the up – and have been so since March 2009.
Rick, from Belvoir Chesterfield who offer houses to let in Chesterfield, and flats in Chesterfield, said, “The turnaround witnessed at the beginning of the second quarter of 2009 is certainly significant.
“Being optimistic, this upturn could be the first signs of ‘normality’ returning to the rental property sector. However, it could also be the result of increasing numbers of people now choosing to rent rather than buy.
“Mortgages, which drive the UK housing sales market, remain difficult to come by, especially for first time buyers and, despite rental incomes dipping in the second half of 2008, the residential lettings market remains robust, driven as it is by tenant demand.”
Belvoir is the UK’s leading lettings specialist and has a network of over 145 franchises that stretches across the whole of the UK, looking after a property portfolio valued at more than £1 billion.
As the market continues to evolve and adapt, the company offers the following advice to homeowners who, because of the recession, have found themselves becoming ‘accidental’ landlords in the past 18 months:
• Be wary of the ‘accidental’ lettings agency – the big rise in rental properties has resulted in novice letting agents opening up to cash in but it is always best to seek out a reputable and experienced agent who will know how the market is evolving and have strong local knowledge allowing them to offer professional and sound advice to both new and existing landlords
• Ensure that your mortgage lender is aware that your property is going to be let
• Seek professional advice to ensure that you have the right house insurance policies in place
• Managing your own let can be time consuming and stressful so consider employing experienced property management specialists who will professionally reference tenants for your property and manage the tenancy on your behalf.
• Make sure you sign up for a bona fide tenancy deposit protection scheme
• Ensure all required safety checks have been carried out on your property before it is let (e.g. EPC, CHAS (formerly CORGI) registered etc) – a good lettings and property management agency will be able to advise on all legal requirements.
Rick added, “The residential rental market remains robust but is evolving in line with prevailing economic conditions. “With our years of experience, market insight, local knowledge and understanding of an ever changing env
