The massive growth of inner city living in the last decade is changing the character of tenants who rent properties both in cities and rural areas, but latest research from Belvoir Sheffield, the leading lettings agency in Sheffield. has found that recession-hit housing stocks are failing to meet high demand in both types of area.
The new research has found that cities have become the favourite for many young people and students, while couples and young families have increasingly started to join the older retired communities in rural towns and villages.
Rick Flay, Director at Belvoir Sheffield, which offers a wide range of houses to let in Sheffield, said: ” People are changing their attitudes to home ownership. A growing number of retired people, for instance, are going against historical pattern. As part of their downsizing plans they are choosing to sell or rent out their home and then going on to rent a smaller ‘dream property’ of their own.
“But the economy has slowed down new-build residential programmes. So there just isn’t enough housing to keep pace with demand at a time when new generations of younger and older tenants are developing a taste for renting.”
IN THE CITY
Twenty years ago there may have been only hundreds of people living in city centres. Now there are typically thousands.
According to Rick, popular city block apartments can, “fly off the market within days – mainly to young professionals and the local student population where there are universities or colleges.
“There can be a queue of tenants waiting for each property. City centre living will continue to thrive because young people want the bars, cafes and shops. I can see them cherry picking high quality rental properties while they delay their own property purchase well into middle age.
“But many cities are short of that kind of housing stock because all too often there is nothing new coming onto the market.”
City centre families, however, are in a rare minority as they are more likely to settle in suburbs and rural areas that offer different lifestyle choices.
IN THE COUNTRY
In rural areas, where prices tend to be higher, young couples and families are opting to commute to work while they enjoy a country lifestyle.
They choose the benefits of rural life – easier access to the countryside, a market town or village lifestyle where they can be part of a community and their children grow up in a safe environment. In exchange, they are happy to commute to work in surrounding cities and larger towns.
Rick Flay, whose agency specialises in flats to let Sheffield, added: “But their expectations are higher than ever before. They want schools, shops, gardens and parking space. They are looking for high standards of living and properties that are, perhaps, better than they could afford to buy.
“With low-rise apartment blocks few on the ground in country areas, the most popular rural lets are modern, well-maintained, relatively new build or recently refurbished to a good standard.
“When the choice is made, tenants are then likely to stay, raise their families and become part of the older, retired community.”
INVESTORS – “CONSIDER BOTH”
Ricks advice for new buy-to-let investors is to ideally build a mixed portfolio of city and rural properties because each brings its own characteristics.
In the city:
- Returns are higher and more immediate.
- Prices can be relatively cheap and yields high … making it a great time to invest.
- While rents are not going through the roof, they are nevertheless rising.
- Look for properties that can be rented to young professionals, couples or students – but not flats or apartments with sometimes uncontrollable service charges.
- When the economy relaxes watch out for ‘mothballed’ sites being released that may already have planning permission … new builds could be on the way.
- Beware – city trends can change more rapidly than rural areas and adversely affect a good investment
In the country:
- Property is relatively more expensive but there are fewer chances of an investment being damaged by fickle city trends.
- Capital growth is steadier.
- Look for well-maintained 2 to 3 bedroom houses, with gardens and parking that are cost-effective to heat and maintain. These are flexible for renting to young couples or families.
“With so many variables to consider it is always worth seeking out advice from a professional, specialist lettings agent. At Belvoir our initial advice is free and impartial, and our local knowledge, at each of the company’s 140 plus UK offices could prove invaluable to town and city and country dwellers alike” Rick added.
Belvoir Lettings Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Buy To Let Mortgages.
