Rentals are going to be hot this summer
Ten Belvoir experts give their predictions on what this summer holds for the lettings market.
With the recent boom in lettings set to continue throughout 2009 we asked 10 Belvoir Lettings experts throughout the UK for their summer forecast.
The forecast for summer 2009 is hot with many Belvoir owners reporting that the booming rental market is set to continue with only a slight softening of rental yields and two-bedroom well-maintained properties once again proving to be a great investment. The survey of Belvoir Franchise Owners also revealed that the UK is becoming much more in line with Europe where more people rent than buy and long-term renting is becoming more acceptable.
Here’s what the experts at Belvoir had to say…
• Terry Lucking, Proprietor of Belvoir Peterborough and Corby, predicts… “This summer we will see a gradual increase in tenant demand, plus a softening of rental prices as more landlords’ buy-to-let mortgages go on to SVRs and their payments drop by 50 to 75%. Small family homes (ex council type); one beds to meet the growing demand for single households and two-bed starter-type homes for young couples will show the most growth and well presented, competitively priced properties will make the most successful lets.”
• Mike and Angie Allgood, Proprietors of Belvoir Tamworth and Lichfield, predict… “I’d estimate that there are twice as many properties to let than this time 12 months ago. I think this is due to the current economic climate – people who, in a different climate, would have sold their properties are now going into lettings. Town centre and two to three-bed family homes have always out-performed any other type of property and I think this will continue. Also, in the current climate, I think tenants are attracted to properties which are affordable.”
• Charlotte Baker, Proprietor of Belvoir Melton Mowbray, predicts… “I think the recent lettings boom will continue through the summer with the UK becoming more like European countries – many people will even keep their own properties and rent another elsewhere in the UK. We’re finding new builds are letting well as people seem to like the newness, the modern kitchens and the fact that they’re economical to run. 3-bed family homes will always be popular too.”
• Harpreet Garcha, Proprietor of Belvoir Kettering, predicts… “This summer I predict a mini-boom, due to seasonal factors but also an appreciable increase in activity in the economy. We are already witnessing more house sales and rentals, meaning more landlords and tenants are coming into the market.”
• Adam Rastall, Proprietor of Belvoir Liverpool Central and West Derby, predicts… “Renting is becoming increasingly more attractive with tenants being protected by the government-backed deposit schemes and better quality rental properties being available. I think that there will be a lot of new landlords who will continue to rent out their property when the market picks up and also a lot of tenants who will continue to rent instead of buying because they know it offers them more flexibility.”
• Rick Flay, Proprietor of Belvoir Sheffield and Chesterfield, predicts… “We continue to grow month-on-month in terms of the number of lets we achieve and I think this is because of the additional property stock which once would have been sold. Summer is always our busiest time and indications are that there will be no difference this time round. We already have a significant database of people looking to move in July, August and September. I think rental yields are likely to level off, with no obvious growth or fall and one and two-bed flats and two and three-bed houses will make the most successful lets.”
• Sharon Walker, Proprietor of Belvoir Glasgow North, predicts… “The current trend of home owners deciding to let their main residences instead of selling will continue over the summer months. The house resale's market has slowed down dramatically due to lack of funding - home owners who have purchased new homes aren't able to find buyers for their current residences and are then forced to let their homes to continue with their property purchases. Good quality two-bed flats in densely populated areas with a realistic rental figure and good local amenities and infrastructure will make the most desirable lets.”
• Donna Burrell, Proprietor of Belvoir Boston, predicts… “Buy-to-let will certainly be on the increase – it’s a big growth market at the moment. Last year there were a lot of new landlords as they couldn’t sell but in recent months we’ve seen a lot more investment landlords too - it seems that many people want to see their savings in bricks and mortar rather than the bank. As always, it’ll be the two to three beds in town or within walking distance, that make the most successful lets.”
• Andrew Jack, Proprietor of Belvoir Belfast, predicts… “I think there will continue to be a growth in ‘accidental landlords’ – we’ve already seen an increase in this over the last 9 to 12 months. Also, rental yields will increase for new landlords who have bought properties cheap, plus for old landlords who are on tracker mortgages and can take advantage of the current low interest rate. The most popular lets will be the good quality one, two and three beds which offer good value for money and are within a key area with good transport links.”
Dorian Gonsalves, Sales Director of Belvoir Lettings, concludes, “This is clearly a very exciting time for both Belvoir and the Lettings sector as a whole, and I am wholeheartedly looking forward to a superb 2009! Belvoir has consistently risen above the competition to become recognised as market leaders within the residential lettings market, achieved entirely by ensuring our landlords and tenants receive the highest standard of service in the industry. We are extremely proud of our network of over 140 offices nationwide and firmly believe Belvoir will continue to be the agent of choice for both landlords and tenants!"
To find your nearest Belvoir office, visit their website at www.belvoirlettings.com
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