Anyone who regularly follows this article will have pieced together the fact that the autumn has been disappointing from the sales prospective. There are many reasons for this which have previously been explained albeit from the difficulty of acquiring lending, shortage of stock and of course the reduced confidence in the overall economy. As we enter the darker winter months the sale of property gets harder. I believe that over the last few years this has been more and more the case.
Rental sector demand
However as one sector slows down the rental market appears to be flat out. Certainly from our position we have rented all our available properties in quick succession. The reason appears clear to me. Individuals and family need roofs over their heads and if they are not going to purchase then renting is the only other choice. In fact the Association of Residential Lettings Agents (Arla), say some 70% of member offices are saying demand now outstrips supply.
We have seen flats and house that are well presented in great demand and often the landlord is in an attractive position where they can select a tenant from an attractive short list. This is important because different landlords have different objectives therefore it is appealing to have the opportunity to consider the best candidate for the property.
Buy to let investors
This upturn in rental demand has also been of encouragement to the buy to let investors. Indeed we are seeing a resurgent in the property investor after all the doom and gloom of the last few years. The difference is that these investors are much more cash oriented and will not be susceptible to increases in interest rates. The investors are attracted by the high yield that can now be achieved in the market especially compared to the bank interest they would have been receiving on deposits.
The interesting analysis is that with the increasingly difficult sales market there is considerable opportunity still existing for investors. Coupled with demand from tenants such buyers can purchase with the confidence that they can secure good quality tenants in the right sort of properties. With the general uncertainty in the economy such security could well be attractive in the short to medium term.