With more than 100 regulations to adhere to and more in the pipeline, on the surface, it may seem that the lettings market is facing a challenging time, but with the right balance between supply, price and demand, properties will let quickly.
Recent activity within our lettings department certainly underpins this view, only last week, an change to the price of one of our homes resulted in an influx of interest. As a result, the property was let by the weekend with three asking price offers from quality tenants. This also verifies recent findings from a number of industry reports that highlight strong tenant demand for properties, with particular note to consider the impact of price, for a property to remain competitive within the market.
Unsurprisingly, price is a sensitive factor in the world of property, with the lettings sector reflecting the competitive pricing demands of the wider market. Inevitably, an accurately priced property can mean the difference between letting your property, and having it stand empty. This then brings along the question, what is accurate pricing? The property market differs here, where price is a subjective matter and dependent on many factors, such as location. Fundamentally, it is the tenant who determines the ‘accurate’ price as they generate demand. Consequently, this is why you may see properties marketed with price alterations, so the supply can meet demand.
As a landlord in the current market, it is paramount to stay on top of the game, as your investment needs to fulfil tenant demands to make it profitable. Many of us think of an investment in terms of yield; buy low then rent high, to make a profit in return. But your rental property is a long-term investment that needs to adapt to the market in order to fulfil demand, which is certainly there. The strong tenant demand results in fewer void periods, which will impact your overall yield. A recent study by Endsleigh reinforces this, finding landlords that use an agent to let their home make an average saving of £1,910 a year, equivalent to £159 each month. This is largely because an independent agent will proactively find a quality tenant and offer swift re-lets that result in fewer empty periods. This proves that although the perceived cost of using an agent may seem higher, when factors such as pricing, finding quality tenants, managing a let and arranging an efficient re-let are thrown into the equation, it is in fact often far more favourable to use an agent.
In addition to offering landlords a steady income, a letting agent proved to offer a better quality of life, with many landlords benefitting from greater peace of mind, and saving up to 5 hours of quality time each month, along with long term financial savings.
As a ‘trusted’ agent, we have sound knowledge of the market and continually remain up to date with changing regulations and market demands. Our aim is to offer the added reassurance that your investment is presented well within the market and remains productive as your source of income to generate a greater yield.
We are always happy to discuss the changing market demands and value your home so that it competitively attracts tenants, do contact us on 01252 514000 or email@example.com.