As Belvoir’s network turnover reaches an all time high, Glenn Wakeham owner of the Guildford Office predicts perfect market conditions for long-term investment landlords.
The good news for landlords is that new tenants will have to pay substantially more for a similar property than they did two years ago. The Belvoir monthly rental index, produced by 140+ offices nationwide, has shown a steady rise in rental income across the country throughout 2010 and all signs suggest this will continue through 2011. The latest figures show a further rise in national average rents from £695 to £700 in January. On a local level, Guildford has seen some rents rise by as much as 10% over the last year.
“As the fallout from the Government’s Comprehensive Spending Review (CSR) continues, it is clear that the impact on the housing market and private rental sector (PRS) will be significant”, says Belvoir Guildford Owner, Glenn Wakeham. “However, contrary to many knee jerk responses within online forums and industry blogs, I strongly believe that these exceptional market conditions, which include falling property prices, continued low interest rates and unprecedented tenant demand, now makes buy to let (BTL) a fantastic opportunity for long-term landlords.
“However, it is clear that our Government needs to better understand and take note of the needs of the PRS, and the critical role landlords play within the housing sector. Many industry bodies are asking the Government to help support the PRS by offering incentives to landlords and to increase pressure on lenders to make funding more accessible.
“With an estimated 490,000 public sector job cuts planned, and the residential sales market bracing itself for another dip, the situation is predicted to continue for the foreseeable future and new BTL landlords will be attracted by higher yields and attractive purchase prices. Belvoir is well placed to provide unique and expert advice to landlords looking to extend their portfolios as we are specialist residential letting agents and do not operate within the sales market, hence there cannot be a conflict of interest when providing free BTL advice.“
