Twelve months ago rents looked to be going up. This was stimulated by the following factors.
- A reduction in stock of available properties
- Strong demand from renters.
Just a year on rents are weakening and landlords now have to compete against other landlords to win deals.
Tenants are the real winners.
What is causing this?
A record number of rental properties are available to rent in many areas of the UK and the number of properties we have to let in Peterborough is at an all time high.
This has been fuelled by:
- Developers and builders letting properties they are unable to sell
- Property owners are letting to enable them to move having received little or no interest from prospective buyers
- Potential sellers letting as they are unable to sell as the likely sale value is lower than their mortgage
- New and existing investment buyers starting to build rental portfolios while property values are low
How do I avoid having an empty property?
Although new rentals are increasing the supply of properties to rent currently exceeds demand. So prospective tenants can be more fussy and demanding.
Hence properties need to be presented well and landlords need to be open minded to help broker deals with prospective renters.
Landlords who invest and are willing to negotiate will let first!
The record low base interest rate of 0.5% means a growing number of landlords have significantly lower mortgage payments and are happy to reduce rents to let their property(s) ahead of other landlords:
- For example a £100,000 interest only mortgage before in November 2008 cost £460 to £540 per month
- Landlords with tracker or standard variable rate mortgages are now paying £170 to £290 per month for the same mortgage: saving £250 to £300 per month
- Other landlords are stuck in mortgage agreements with higher interest rates and whilst they may be reluctant to drop the rent if they don’t it could sit empty and lose them a whole lot more money!!
What can I do to let my property quickly?
A few simple steps;
- Bring the rent into line with competitors or even lower
- Make the property attractively decorated and well presented;
- Bring kitchens and bathrooms are up to date. Nearly all additional new to the market properties will look and feel very modern.
- Make sure the gardens are tidy and are well presented
- Don’t delay take action today.
Take advice from an experienced and regulated Letting Agent in Peterborough. For free advice or more information contact the writer; Terry Lucking of Belvoir Lettings 01733 321500