Market Commentary on Renting and Letting Feb 2009

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The rental market continues to boom from a volume perspective with lots of properties coming through for appraisal. Some of these properties are landlord's that are struggling to rent, others are private sellers who have opted to rent rather than continue trying to sell.

In the main, the market is currently in favour of tenants and the first properties to rent are those that are reasonably priced, or have a landlord that will negotiate, or are in a great location and in tip top condition. 

Rental incomes however aren't falling at anywhere near the rate of properties for sale, but tenants are managing to negotiate around £25 off a £400-£500 per month rental (or more in the Home Counties/London).

The main two issues in renting that are coming to light is that now interest rates are so low, property has suddenly become a great place to invest again with 4-6% or more returns and the cost of purchase of course has fallen. So with many predicting 'Buy to Let' being 'doomed' in the early part of 2008, suddenly it seems a much safer place - especially away from the banks!

Ian Potter, operations manager of the Association of Residential Lettings Agents (ARLA) says
“With financial markets in crisis, it’s clear that bricks and mortar are a safer bet than stocks and shares - .05% versus 4-6%+"

The second key issue is tenant's defaulting, typically sadly due to growing redundancies. The National Landlords Association (NLA), the leading representative body for private-residential landlords in the UK, has published figures showing its advice line has received an average of 2,500 calls per month of which, 74 per cent of calls were from landlords seeking advice on how to deal with tenancies when rental arrears start to build.

Kate Faulkner from www.designsonproperty.co.uk says "It's essential that any landlord in 2009 seeks to find a good value insurance policy that will protect them if a tenant goes into arrears and help get their property back". "To try and cut corners on cheap policies or not purchase the insurance at all, for some, could lead to the property being repossessed if the landlord doesn't keep up with payments".

Visit our Renting an Letting section for more information or contact us: 0845 838 1673 or enquiries@designsonproperty.co.uk for help on landlord and tenant insurance.  

For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit ABOUT US, see Kate on video and for media appearances, contact:

Sylvia Tidy-Harris
STH Management                    
Tel  +44 (0) 1530 263221
Mob  +44 (0) 7970 646872
Fax: +44 (0) 1530 264018

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