Buy-to-let: a strong appetite from potential tenants remains
Rising interest rates and higher energy and food bills have left many people understandably shaken. These uncertain times have caused ripple effects within the rental property market, and whilst it is always a fine idea to have one eye on the changes, we believe there is hope for landlords who may be feeling the pressure.
What is causing this concern?
Recently, MPs have heard of the potentially serious impacts on the availability of homes to let, partly due to rising mortgage rates. Due to the recent mini-budget, the rates took a sudden and sharp increase and landlords are becoming more concerned with what it means for them. There are always knock-on effects for those with mortgages, but there needn't be too much concern for those who buy-to-let. With everybody cutting back on spending, needless outgoings don't seem to be a priority for those renting, because their focus, like many, is on paying their bills and rent on time. People want a roof over their heads.
Our current buy-to-let demand
Our buy-to-let demand is still high. This year, on average, 500 tenants have registered directly with Sandersons UK to hear first about new property listings. This is fantastic news as they are actively ready and pre-qualified via our online forms . It also shows there is still much interest in the buy-to-let sector. With many tenants in our database, we aim to help each and every one find their perfect home, and we pride ourselves in being able to do so.
This demand should provide comfort to landlords who may be sensing an air of anxiety during these days and weeks. At this time, we really don't know of a sector of business that isn't slightly concerned with current events, but there is light at the end of the tunnel. We are often letting properties before they even reach the portals, because the interest is so present. Last week month, 50% of our properties were let to people already registered with us for property alerts – that's half our properties in just one week.
Our message to landlords
As things currently stand, it is understandable to have concerns regarding any tenants and how they will come to make their rent payments. Financial distress is affecting the masses, but one thing is for certain – giving up a home is seen as a last resort in the eyes of a tenant.
Despite the wariness of renewing your mortgage on your buy-to-let property, our advice would be to weather the current financial storm, as it will pass. Hundreds of people and families are wanting to rent, so things can change quickly for the better, as demand is still there. Personal circumstances for many mean they are being priced out of owning their own home, so rental is their best bet for the current time being, not to mention it being a suitable way to live due to the greater flexibility that renting provides.
There is a fear of the unknown, which leaves room to wonder what may happen, but this is something nobody can be sure of. What is important is recognising the importance of renting, and being given assurance that there is demand for tenants to fill your property. High demand coupled with an expert agent to represent you and your property at its best can also help you to achieve the maximum rent.
