From Robert Ulph on May 7, 2021
The latest figures on the property market have been issued and they show an increasing demand for private rental properties, while supply of this type of housing has fallen.
The report that ARLA Propertymark carried out for March shows the number of new prospective tenants registered per agency branch was 84. This was up slightly from February’s figure of 82 and represents a rise for the third month in a row.
However, agents are seeing managed properties per letting agent branch fall for the fourth month in a row from 195 in February down to 193 in March.
ARLA also report that 60% of agents saw rent increases in March, compared to 49% the month before. This figure is up 20% from March 2019, however March 2020 figures are not available due to Covid-19 so it may be that increases have not been seen over that time due to the uncertainty being faced.
In terms of landlords looking to sell their buy-to-let (BTL) properties, these figures have remained constant. At four per branch, this has remained the same for the sixth month in a row and year-on-year this figure is the same as March 2018 and March 2019.
While this is the national picture it does reflect what we are seeing locally here in Suffolk and this often raises the subject of BTL investments, which is perhaps unsurprisingly, what I get most questions about.
I always advise, as with any investment you make, do your research and remember it is important who you get advice from. As well as initial sale price you will also need to look at what rents have been achieved in the past, how long it will take to let, what your potential outgoings will be for the property, also what is required of you as a landlord and more importantly what regulations you need to adhere to.
For many, the lettings market can feel like a minefield, as there are many potential pitfalls with letting a property. If you are not up to speed with legislation and the changing implications of owning a BTL property, you could leave yourself exposed to penalties and incur hefty fines and financial losses as a result.
The best advice I can give is to get assistance from a professionally qualified agent, who is ARLA Propertymark licensed. ARLA membership requires us to know the current legislation but also carry out Continuing Professional Development which ensures we are always up to date. At Pennington we have a number of in-house licensed members of ARLA Propertymark so there is always someone on hand to assist.
I have assisted hundreds of first-time landlords and seasoned investors purchase the right BTL property, so please do not hesitate to contact me for any advice or if there is anything else you need to know on the local property market, I am always happy to help.