Historically when the housing market is doing well with increased demand and house prices rising, the lettings market usually takes a bit of a hit until the housing market cools back down and then lettings picks back up again.
It is unusual therefore to see both markets equally as buoyant with demand outstripping supply and prices generally rising in both sectors.
The Private Rented Sector is experiencing another strange phenomenon brought about by the recovery in the housing market. Those landlords who were forced to let out their properties due to the poor housing market now find that house prices have risen and demand increased allowing them for the first time in quite a few years to sell at the price they need. This would normally reduce the stock level and stifle the rental market but there are an equal number of new investment landlords buying properties to let out which is keeping the rental market stable.
Demand is still high for rented accommodation but it is important not to get carried away and set the rent too high as an empty investment property is not a good investment. When a property is marketed at the correct level the response is usually instant with prospective tenants making use of text alerts to keep updated on new properties.
Our advice to anyone thinking about buying an investment property is do your research and remember you are not buying it for yourself to live in and therefore your own preferences are not as important, you need to think like a tenant and consider why someone is renting and what they would be looking for.
Please contact me if you are looking for advice on all matters lettings and I will be happy to help.
Michael Clarke, MARLA, Lettings Director
firstname.lastname@example.org 01252 514000