With the recent news of the Renters Reform Bill that the Government is proposing and increasing interest rates, there has been much talk in the press about what this means for landlords going forward. While nothing is 100% certain, here at Clarendons we are seeing really healthy signs for landlords and we believe our location in the South East of England is a real positive. Here’s why…
The South East of England has long been a region where property prices have historically seen healthy increases. While the area will follow the market trends, the capital growth and property prices continue to see healthy increases, making an investment in the south east an attractive long-term investment.
Record High Rents
Despite the uncertainty over the past two years, rental prices have flourished. Here at Clarendons we have seen properties renting for record highs on a monthly basis and Zoopla reported last month that the average UK annual rental growth has reached a 14 year high (+11%). So, for landlords it’s a great time to be letting a property.
Part of the reason rents are rising is largely due to the fact there is such high demand for them. Quite simply, there are not enough properties coming onto the rental market at the moment. Here at Clarendons, on average we have at least 6-8 prospective tenants vying for each property.
We may be biased, but we have some great tenants and prospective tenants on our books. All a landlord really wants in a tenant is someone who can pay the rent on time and keep the property in good order. As a region, the South East has one of the highest levels of employment (more than 78% according to statista.com) and therefore means salaries can generally support the higher rents that the area commands.
A Reliable Investment
Property ownership and development has proven the test of time that it really is a solid investment. Again, there will be highs and lows in the market,but compared to other investments (Bitcoin crashed to an 18-month low in May 2022) which are higher risk, it’s a savvy way to earn and future proof your money.
Low Finance Options
Despite the rise of interest rates of late, mortgages are still one of the lowest rates around when it comes to finance options. And speaking to our contacts within the mortgage world, there’s good competition between lenders, particularly when it comes to Buy-to-let mortgages for both individuals and companies
Building up your property portfolio in the South East could look after you for life. With capital growth and rental income, it could even assist you in early retirement and it is a good alternative to being reliant on the pension pot.
A ‘Hands Off’ Investment
Keen to have a rental property, but don’t have the time to manage it? Find yourself a reliable local agent to do it for you. Offering varying levels of service, a reputable agent will ensure they manageyour needs – be that maintenance work or keeping with compliance rules through to regular inspections. You can they be safe in the knowledge the hard work is being done for you keeping both yourselves and your tenants happy.
Interested in finding out more about our services and what we can do for you as a landlord? Get in touch with the team at Clarendons today.