Recent research from one London-based international property firm has shown a significant increase in rental prices in the capital with up to eighteen per cent rental increases over the last twelve months alone. A shortage of good quality property means that prospective tenants are fighting over new flats coming to the rental market and this is driving rents upwards.
The firm reports that it is seeing offers significantly over the asking price and some tenants are actually increasing their offers in order to try and seal a deal. They have a huge shortage of good quality one bedroom flats for rent and so those coming to the market are being let quickly at higher rents.
Now, Belvoir Sheffield, the regional property specialists, offering property to rent in Sheffield, are expecting the same to happen in regional towns and cities.
Rick Flay, from Belvoir Sheffield who offers houses to let in Sheffield, and flats in Sheffield, said, “These figures show that the rental market is buoyant in London. Historically we have found that provincial markets follow the trends set in London and so I am fully expecting the local Sheffield market to start seeing an increase in demand and rents in the near future.”
The demand for one and two bedroom rental flats in Sheffield, is also exacerbated by the fact that many first-time buyers are unable to get onto the housing ladder. This is due to the lack of suitable mortgage products and the problems in saving the large deposits that lenders are looking for. These potential buyers are therefore turning their attentions back to rental properties.
It is also true that many existing tenants are agreeing to an increase in rent to avoid having to search for new property and to ‘lock in’ at the current rents when the expectation is that they will increase in future.
Rick added, “It is also important that prospective tenants move quickly when they see a property to rent in Sheffield that they like. The days of second viewings look to be behind us as any delay might result in another tenant nipping in and securing the property you were looking for.
It is also important for tenants to be flexible with their budget as they may well end up having to pay more than they were expecting for the property they want.”
Belvoir Lettings Sheffield are 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.
