Mon 29 Mar 2021
Lauren Laffey, Property Manager
Is NOW the best time to Let your investment property?
It is fair to say that this last year has been unpredictable, to say the least! As a country, we have had to deal with the unknown and come together as a team. Businesses have had to change how they operate and everyone was unsure as to how we would cope, have a look at how we have Rented properties safely during this pandemic.
In the first lockdown, the property market was frozen for almost 2 months which was a huge shock to the industry. It is no surprise that during that period, demand for rental properties would start to grow as people’s circumstances began to change.
Demand has increased, and so Rent has too. But by how much?
The property market has shown great resilience during this time. And since coming out of lockdown, the demand for rental properties has continued to grow, which in turn has caused the average rent for a property to increase in most of the UK;
- Demand is up by 21% year on year in January.
- UK rents have risen by 2.3% in 2020 since Q3.
Although there is a huge increase in demand, the supply in most areas is quickly decreasing. In some areas, supply has decreased by 11%.
A further trend is also showing that the demand for properties outside of the city centres is up by 7%. This has likely been caused by the fact that most people are currently working from home, some on a permanent basis.
What type of Property is letting quicker?
Another point for landlords to take note of is the type of properties that are letting quicker. In Q4 of 2020 compared to the same period in 2019, shows that houses are renting out a great deal faster than apartments. Figures show that houses have been renting out a huge 26% faster than apartments.
What is the outlook for Rents later in 2021?
COVID-19 has changed the rental market and changed the key drivers for demand. The demand for properties in a city centre will really depend on how quickly restrictions begin to lift.
Although some people will continue to work from home on a full-time basis, which will result in ‘the search for space’ continuing, and the demand for family homes will continue to grow.
Furthermore, the demand for rental properties will also be affected by the current struggle for first-time buyers to get a mortgage. Many lenders have tightened their terms and increased the deposit required to get a mortgage. In turn, this has forced first-time buyers to stay in rented for a longer period.
The trends are showing that the demand for rental properties is not going to decrease any time soon. And with the supply of properties is quickly decreasing, this means now is the time to get your rental property on the market!
Other important considerations for landlords
For landlords, now more than ever is very important to use an agent you trust to market and manage your properties. The law is constantly being reviewed and changed. And not keeping up to date can result in large fines or even a prison sentence. A key example are the new rules surrounding Electrical Safety.
As a fully qualified and compliant agent, we always stay up to date with all changes to regulations and keep our clients on the right side of the law. So, should you need further advice or guidance give me a call on 01925 988232. Alternatively, email me directly: Lauren@MarkAntonyEstates.com - I'd love to hear from you.
p.s. Are you curious about what your rental property could be worth? Find out in around 53 seconds. Click here.
p.p.s. Download our eBook on how to get the best selling price for your property by clicking here.