Why letting remains resilient
We understand things haven’t been easy for landlords in recent years, with changes like:
- An additional stamp duty charge for second homes
- Mortgage interest tax relief tapered down
- New regulations for houses in multiple occupations
- Tightening of energy performance regulations
- More stringent electrical safety standards
However, buy to let can still be a lucrative investment. Landlords up and down the country are staying in the market and even feeling confident – with the increase in demand for rented accommodation, rising property values, and rental prices all offering a great opportunity.
Tenants too can have confidence – regulation changes are there to help provide them with fit-for-purpose accommodation, zero deposit schemes make renting more affordable and there are specific insurance policies designed to help with contents and possessions damage or loss.
How tenants and landlords can succeed together
Whatever happens in the market, there are ways to strive for a good outcome for all parties, if landlords follow some sensible guidance;
- Property match – who is the property appropriate for tenant-wise? Think about the location and amenities and who they might be best suited to. Not only will you get the right tenants but a fair rent can be set in line with the value of the benefits the property brings to the tenant.
- Property presentation – legal requirements aside, a well-cared-for, nicely maintained property with the facilities tenants would expect will help you attract more tenants – and find the one that is best suited for the property.
- Setting a fair rent – take a look at the rental value of similar properties in the area. Get a free valuation from local agents. There are simple ways to benchmark your rental value which will help ensure you get the rent you need as well as setting a fair market price for your tenant.
- Think long-term – by matching your property to the right tenant and by setting the right price, you are helping to set the groundwork for a long term tenancy. A happy tenant who is treated well is more likely to stay settled in your property.
- Be safe and legal – underpinning the above is making sure your property follows all the current regulations, from electrical safety to Right to Rent checks. It can be over-whelming or complex – if you have doubts a good letting agent will be able to help and save you from worry.
As demand continues to rise and the number of properties decreases, rent prices may inflate further, so we will continue to support both landlords and their tenants throughout this busy market.
There is no guarantee that the future will continue as the past has but the signs are positive, and with a sensible approach landlords and tenants can both benefit.
Successful letting starts with an accurate valuation. It’s worth finding out how much you could let your property for – or even if you’re charging too much or too little.
*Office of National Statistics / * https://www.zoopla.co.uk/discover/property-news/house-prices-jump-by-gbp10-000-in-a-year/ **Rightmove rental market report Q2 2021 / ~Zoopla rental market report May 2021