I think that Spring may finally have sprung as I am writing this article on a sunny Sunday afternoon. So, what is Spring bringing to the property market?
I usually write about the sales side of the business, so this time I thought I’d spend some time exploring the rental market. At Berriman Eaton we have one of the largest lettings agencies in the area, with a portfolio of “managed” properties that exceeds 450 houses, bungalows and apartments.
Run by Andy Roberts, one of the Directors of our company, the letting team look after all manor of issues that arise on a day to day basis. How does the team deal effectively with huge efficiency.
Quite simply by being professional and being knowledgeable. I still find it quite shocking that anyone can become a letting (or estate) agent without a professional qualification or even any knowledge of how the housing sector in general operates.
Michael Gove, the housing secretary, has announced that social housing managers will now need to acquire a professional qualification, but this has not been extended to the private sector! When choosing a letting agent please make sure they are properly qualified and professional. One owner of a Wolverhampton Letting Agency is currently serving time at his Majesty’s pleasure for fraud, so be warned.
And what of the letting market in itself? It is a very busy and competitive arena, with multiple tenants looking for a dwindling supply of private rental sector properties. Various governmental policies in recent times have made the rental of properties increasingly unattractive to investors.
This is short sighted as theses investors are “selling up” which is reducing the supply of private rental sector properties and inevitably places local councils and social housing providers under increased pressure, at a time when this sector is already at breaking point.
The private off-market luxury rentals is a strong focus for our Lettings Department that requires complete privacy and professionalism and, for that reason, we don’t list online and have a discrete procedure in place to ensure both the tenants and the landlords’ requirements are met quickly. High-profile people from the world of sport, business and entertainment are increasingly tapping into this specialist offer, which has even included identifying a property on Christmas Eve and moving the client in on Boxing Day.
A further side effect of this is that, with fewer homes available to let, competition is driving up the rents being achieved.
This is a major problem for tenants. Tenant referencing provider Canopy has recently released data showing that almost one in five tenants in the UK are spending more than half of their salary on rent, with Stirling in Scotland being extremely tough with the average tenant spending almost two thirds of their wage on rental costs alone. If these tenants are also aspiring homeowners then how can the ever save up enough to cover the deposit to buy a home of their own?
I would love to be able to wave a magic wand and make all of the issues affecting the lettings market go away, but this is clearly impossible! Unwise governmental policies and market forces are beginning to create a perfect storm. What can we do to help?
Just by making sure that we are qualified and professional. If you need any advice on any aspect of the rental market, please do not hesitate to call!
