The local letting market remains strong according to Phil Jones, Director at Link Agency.
Since 2007 when the property selling market effectively fell off a cliff, the lettings sector has strengthened.
The rental market does not really suffer the lows or benefit from the highs, in the way of the property sales sector.
So while estate agents have very busy months and highly profitable years, interspersed with times of slow trading, the letting sector is more resilient to the peaks and troughs of the economy.
Commenting, Phil said that the letting market has changed over the past three years with far more good quality housing stock being placed for rental.
Often this is because the owner is unable to sell the property without suffering a loss, so decides to let the house in order to release rental income, allowing them to make their desired purchase.
This is called Let to buy in the industry.
Additionally there has been in influx of high net worth investors.
Back in the heady days of 2004 through to 2007, investors could buy property as investment with virtually no money down.
Many of the people who did so expected to benefit from ever increasing values.
They got a shock when the market turned in October 2007, leaving a great many in negative equity. In effect the tide had gone out and they had been swimming without any clothes on.
Low equity landlords generally don’t pay for the services of licenced letting agents.
These days investors must lay down 20 per cent deposits for investment properties, they do not expect rapid capital growth but take a more prudent and considered long term view.
Such people tend to make much better landlords, choosing to invest in the long run and not expect immediate returns.
A feature of the market now is that investors are more solvent and tend to be more sophisticated, choosing to use the services of a licenced agent.
For advice on property letting or investment in the sector, speak to Phil Jones BA(Hons) MBA MARLA NAEA at Link Agency on 01405 768401. Or visit www.linkagency.co.uk
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Weather for Selby
Friday 06 December 2013
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