Landlord Market Update
Our CEO, Richard Crathorne reflects on how the market has performed since the financial turmoil of late 2022.
The good news is, the lettings market continues to perform well, with record rental figures still being achieved. It's clear the market is as strong as ever.
Whilst there are signs that competition between tenants for the homes available to rent is starting to ease as more properties become available, the imbalance between demand and supply is still very high. That said, we've also seen a growing number of new and existing landlords looking to buy, as bricks and mortar remain a staple of any investment mix. Of course, more rental stock coming to the market is a good news story for tenants too; offering them a better choice of property which in turn encourages them to rent for longer. Happy tenant, happy Landlord….I think it’s a win-win situation.
Rightmove have reported the number of people enquiring about a rental property is up by 7% compared with last year and up by 53% compared with pre-pandemic 2019. Of course, the national picture doesn't always reflect what we see regionally. Our stats show...
With continuing high demand, Landlord's are in a good position to maximise rental yields, especially at tenancy renewal. Of course, whilst increasing monthly rents may seem attractive, the balance needs to be struck in securing and retaining the best tenants too and Landlord’s should be mindful of over-pricing, because of the demand in the market!
Affordability concerns are always a factor and should not be overlooked; even more so with the ongoing pressure on the cost of living. Thorough referencing and vetting of prospective tenants is critical. Just because a prospective tenant agrees to a rental figure, does not mean they can afford it. Our rigorous referencing process ensures we only place tenants we are satisfied can meet their obligations. Of course, Landlords can add additional protection and ask for a guarantor. They can also have Rent & Legal Protection, to protect their investment for complete peace of mind.
Lenders are gradually reducing interest rates now that the economic outlook appears less sinister than before and with strong rental yields, property remains an ideal long-term investment for many. If you’re thinking of adding to your portfolio, contact one of my team. We've got some great investment properties available right now, and we can help source the right investment for you.