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Behind the Rental Demand

10 months ago
Behind the Rental Demand

The rental market continues to grow, and we are constantly experiencing a heavy demand from tenants looking to secure a home in the west London area.

According to ARLA Propertymark, the industry trade body, across the country, there are 13 tenants battling it out for every property available to let, and this is a 57% year-on-year increase to the imbalance between supply and demand.

The Government, in recent years, has been accused by industry experts of creating policies against the individual, private landlord in favour of the large institutional landlords who are, of course, easier to administer and revenue generate from.

This has translated into 400,000 individual landlords selling their buy-to-let property since 2016, according to property consultancy CBRE.

For new landlords entering the market, since 2015, it has been a lot more difficult to finance a buy to let to property. Lenders have been set tougher lending criteria by the Prudential Regulation Authority, meaning that mortgages have to be stress tested at 125% of rental income against mortgage payment, with the caveat for the test being the mortgage payment is set at the actual product plus 2% or an overall 5.5% (whatever was highest).

With buy-to-let rates at 5/6% now, it means that new entrants to the market are being stress-tested at 7/8% interest, further restricting access to capital for new landlords.  

Michael Dell, Area Lettings Manager for Go View London, comments:

“We have facilitated many ‘best and final’ processes for landlord clients this year, but ultimately quality of tenant is always the guiding principle we set out with landlords. There is no point in just going for the highest offer if the viability doesn’t stack up.  

“Finding a tenant is one aspect, but our reference procedures and the detail we collect ensure we select the right tenants and not just the ones who offer the most. We have built up great personal connections with landlords over the years, and our best advice principles help guide them to ensure we all make the right decision.

“The market shows no signs of slowing down from a value perspective given how the supply and demand factors are playing out locally, and if we can provide any assistance to landlords thinking of putting their property on the market, please do get in touch.”

Please get in touch with Michael via his details below.

Michael Dell

Area Lettings Manager 

mdell@goviewlondon.co.uk

Direct Dial: 020 8017 7946

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