Caroline comments:
“As anticipated, the first three months of 2011 have seen a continued uplift in demand coming through. With around seven applicants for every property on the market, it has undoubtedly been a great time for landlords who have not only had the opportunity to cherry pick the best quality tenants from increased choice, but also to achieve the best possible rent for their property.”
Caroline believes one contributing factor has been the re-emergence of more favourable buy-to-let mortgage products.
She continues:
“As a result of this increased availability, we have already seen a small rise in the number of new and current investors ready to take the plunge on that next property and grow their portfolios, and I expect to see this continue as we head towards the middle of the year.”
Despite demand outstripping supply, Caroline believes landlords should not be under the false impression that they will achieve ‘over the odds’ in rental income, or that they can be negligent with the upkeep of their property. “Yes, we have seen some record rents being achieved for those luxury and top of the range central stock but significantly, with the cost of living continuing to rise, an applicant will only pay what they deem to be fair and within their reach.”
Tenants are increasingly wise to what the market rate is and what level of standard they can expect for their money. “We have seen situations recently, where landlords have been unwilling to be flexible on price or to carry out work that might enhance the ‘let-ability’ of their property.
As a result, landlords find themselves in a situation where the property ends up being over exposed with too many viewings, leading to a significant price drop being required in addition to an extended void period. Unfortunately there are too many people out there giving out the wrong advice to landlords because of what they see being written in the press, rather than feeling the market themselves and understanding it firsthand.”
