Landlords hedge their bets
With the need to balance tenant affordability and achieve a sustainable yield landlords are being a little more cautious when considering their rental forecast. An article in The Negotiator explains that in October we saw the second successive month in which rents only rose a minimal amount of around three percent. It is a tricky time for Landlords as the higher Stamp Duty levied on buy-to-let purchases and the incoming reduction in tax relief on buy-to-let mortgage interest makes owning a second home more difficult and less attractive. There has also been some anxiety over the uncertainty of the economic outlook and whilst the Bank of England predicts lower growth and higher inflation, wage increases have for the most part been kept at inflation or below. This all means that the tenant has less disposable income. However with Landlords showing restraint there has been an increase in tenants wanting to remain in their accommodation longer and for good reliable tenants there is a desire by Landlords to keep those tenants longer. Never the less privately owned rental property will play an increasingly important role in a market where house prices erodes affordability and rental property remains high in demand. If you are an existing or potential Landlord, or if you are a tenant looking for quality accommodation, please call us on 020 8440 6449 visit us on www.chaslowe.com or come in and see us at 10 Church Hill Road. We are always happy to discuss the current market and offer free advice and valuations.