Probably the question you are most often asked if you are a lettings agent! Right now, it is not an easy question to give a sensible response to.
We have seen significant price growth over this year and most landlords have been very happy that their property has been let swiftly. So it has been a good year to date.
However, things are changing. Properties are not letting as swiftly and the prices are not as strong. We are seeing some property dropping in price before being able to let (that is not counting the ones that went to market at an inflated price!).
The strong supply available means tenants are being much more picky and not willing to commit as fast.
If you are trying to let your property you need to have your price and presentation right. It goes without saying that you need a proactive agent on side giving you the right advice. If you stumble in to a void period things get expensive pretty quickly. Don’t forget that as we move in to the festive end of the year the number of tenants seeking to move will reduce further. Much better to let now at a price you don’t like than to wait and let at a price you like even less in November…or not at all.
If it is not at all then those weeks without a rental income become expensive real quick and it won’t be a very merry Christmas.
If you were to look at Rightmove today the figures are quite telling. In the last 7 days 30 properties have come on to the market, 13 properties have been reduced in price and ONLY ONE property of those has been let.
I have looked at the level of applicants we have registered in the third quarter of the year for the last three years and this year is 10% down on last year and 18% down on 2015
If I was a landlord trying to let at the moment I would be taking action immediately to secure a tenant.
One more thing to think about…The sales market locally like much of the South East is slowing down (950 properties available on Rightmove today for ‘Aylesbury’)…as it does so this represents both a threat and an opportunity.
The threat is from those sellers that won’t or can’t reduce in price to sell in this climate but still need to move. They will become your competitors as they turn to the lettings market to allow them to move.
The opportunity comes from those that need to sell because they need to move. These vendors are more likely to reduce or take a lower offer to get moved…they could make a great addition to your portfolio. Look out for properties that have just come back on the market…there may be a developer at the top of the chain who will throw money at the bottom of the chain to see a swift exchange. The same applies to Part Exchange properties…you can often identify these as they likely come on to the market the same day but with 2 or more agents.
If you are trying to let without success or want to sanity check your investment plans just drop in, call or email firstname.lastname@example.org 01296 398555 5Temple Street Aylesbury HP20 2RN