House prices in the UK have skyrocketed over the years. It is mind blowing to think that once you could buy a house for £3000 which nowadays is equivalent to a couple of months rent in some part of the country!.
Back in the 1950’s if you were able to buy a house and still have the same property it is very likely that you will be reaping the benefits today. It hasn’t been all plain sailing though. House prices have risen decade upon decade, but it has been a bumpy ride. Do you remember the 1990’s? House prices plummeted by 20%, but were still twice as much as they were 5 years previous. The market recovered over time but now it appears that we might be in a similar situation.
The uncertainty in the housing market is naturally concerning BUT here’s why as a landlord you should keep calm and carry on…
- The only way is up – Demand for renting is only likely to go up for the foreseeable future. Personal circumstances such as short-term contract work or education commitments for example mean that demand for rental properties will never cease. However, in the next 12 months or so there is likely to be a further surge for rentals as a result of increasing mortgage rates pricing people out of the buying market. This is also expected to impact the number of new buy-to-let properties/new landlords, placing further demand on existing rental properties.
- Your rent should reflect your rate – As interest rates rise, so should your monthly rental fee. If a tenancy is coming to an end, now is the time to futureproof and increase your prices. If you have a mortgage on your buy-to-let property, find out when your fixed rate ends, and the new rates available to you. You can then offer your new tenants a term and price that reflects this and gives you the security you need.
- The market will bounce back – The housing market has withstood rollercoaster times before, so we can take comfort from history that this is just a period in time. If you can withstand the current climate and keep hold of your property, then it’s likely to pay dividends in the future.
"I would advise landlords to keep letting as there are far more people looking to rent than properties available. Rents are keeping pace with interest rises, costs and void periods are pretty much a thing of the past" Bill Rockett, Rockett Home Rentals.
If you want advice or to find out more from an independently owned residential letting agent with 19 years’ experience, contact Rockett Home Rentals now on 01782 638 111.