Latest Rental News
There are definite signs of a return to health of the buy-to-let industry. For months now, landlords’ biggest source of frustration has been the lack of finance available to them, but now mortgage lenders are reaching out to landlords rather than first-time buyers, realising that the buoyancy in the lettings market should be supported.
This change in attitude from lenders couldn’t have come soon enough for landlords. Those very same people who can’t get a FTB mortgage are, of course, fuelling the demand for rental property. With the average first time buyer aged 38 (source: http://is.gd/wLsXJG), renting is not just the preserve of students and those on their first job any more.
These older, more professional tenants will be more demanding for landlords, requiring a better standard of properties and furnishings, more aware of their legal rights and frequently more concerned with green issues. Landlords will have to work to keep these tenants happy, providing a really professional level of service and homes that are truly fit for purpose, but in return, they’ll be rewarded with tenants who look after their property, and who habitually pay the rent on time.
Of course, there’s always a cloud or two on the horizon. Interest rates may have stayed at their low rate for another month, but there will be a rise some time. And while tenant demand may be up generally, some landlords outside London are telling us they’re struggling: one recently said: “I am finding it difficult to let a 4 bedroom family property in Surrey and a 3 bedroom property in Stoke-on-Trent. Even smaller properties have been difficult to let because tenants can't raise the money for the deposit.” In these circumstances, finding a tenant you can trust, and keeping them happy and staying in your property is ever-more crucial.
In short, we’re going to see the lettings industry becoming much more like the European model, where renting is “normal”, and aspiring to own your own home is not automatic. Renting is becoming a longer-term proposition for many people, which can only be good news for landlords.
