A new year, a whole new bunch of predictions for the property market. And let’s face it, after 2009 we need some cheering up. The ‘year of the accidental landlord’ saw oversupply in many areas of the property market, which pushed down rents through much of the country, even in London.
The good news is that there are already signs of recovery in the market for 2010. Rents in central London are rising, and there are some interesting new BTL products available. There’s still bargain property to be had, so now could be a good time to buy to let, for those who’ve done their homework. Lenders’ criteria will be stricter than ever, so it will be important to have a business plan, and the figures to back up your mortgaging plans.
And of course, we have a general election on the cards. Though there was disappointingly little in the Chancellor’s pre-budget report for the private rental section, both main parties are now making noises suggesting that Local Housing Allowance rules may finally be changed to allow payment direct to landlords. The government’s insistence on paying LHA to tenants might have been a nice idea, but for many landlords, it’s been a nightmare in practice.
Upad is supporting the “Raise the Roof” campaign to get the tax-free allowance for the rent a room scheme raised to £9,000. Considering that 91% of rooms in London have rent higher than the current allowance of £4,250, we’re long overdue an increase. Encouraging more people to rent out part of their main home would help cash-strapped families avoid mortgage arrears, as well as freeing up affordable housing stock.
And there’s plenty of anecdotal evidence that renting itself is becoming more normal, not just a stop-gap before owning your own home. We expect to see longer term rentals becoming more popular, and landlords who treat their tenants well should really benefit from less frequent void periods.
The era of the get-rich-quick landlord and the accidental landlord is over; in the teenies (or whatever we’re calling this decade), landlords will need to manage their rentals as professional businesses.
James Davis - Upad
A guest post by James Davis, the CEO of Upad.co.uk, the UK’s leading online lettings agent. Upad lists your rental property on 100+ sites and portals – including Rightmove – for just £59: tenant guaranteed. Follow the Upad blog and on Twitter for rental industry news and tips for landlords on making the most of your properties
