There has been big shift in the UK rental market during the last 18 months. The amount of residential properties available for let has increased by a massive 68%.
Jim Mitchell of Belvoir Lettings Agency Loughborough, believes this is the result of homeowners choosing to let their properties and become ‘accidental’ landlords rather than try and sell in a depressed housing market.
The sharp growth in the number of properties to let was initially matched by a similar increase in the number of people looking to rent. These new “tenants” were unable to raise the funds necessary to buy their own home. Hence rental incomes continued to increase until reaching a peak in June 2008, after which they went into decline as supply started to outstrip demand.
In addition to the glut of new properties coming onto the market, the national fall in rental income was 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.
“The turnaround witnessed at the beginning of the second quarter of 2009 is certainly significant,” says Jim Mitchel Owner of Belvoir Loughborough. “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 140 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 Loughborogh lettings 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
“The residential rental market remains robust but is evolving in line with prevailing economic conditions,” explains Jim Mitchell. “With our years of experience, market insight, local knowledge and understanding of an ever changing environment, we at Belvoir Lettings Agency Loughborough are well placed to ensure that both landlords and tenants continue to enjoy the many benefits of property rental.”
