Well, old news is often good news and there’s been a spate of recent reports out, all confirming exactly what we know already – that rental demand is up and up.
The ongoing increases that we see in Bristol is the same as everywhere else across the UK.
As you know I like to keep my eye on what’s going on with all the latest surveys – and yet another report just out (the Buy-to-Let Index from LSL Property Services plc) confirms both ongoing increases month by month – and record rent levels too across most areas.
As usual these trends are due to ongoing demand from tenants, linked to a shortage of quality properties available and a trend away from property buying and towards renting.
Interestingly this report also highlights improving tenant arrears, partly due to landlords taking a tighter approach to tenant references. This is one of those things I always recommend you are careful about. Cutting corners on teh quality of the tenants never pays off – and we know it’s perfectly possible to have minimal voids as well as being fussy about your processes for new tenants.
In fact the whole point is that better tenants, matched carefully to your properties, lead to fewer voids. They are happier so they stay longer, take care of the property and co-operate with viewings when they do move on. It’s a win – win.
This is what David Whittaker, managing director of Mortgages For Business, had to say about the LSL BTL Index:
“This is the busiest time of year for landlords and property investors as demand from renters surges and properties literally fly off the shelves. Stagnant sales prices over the summer gave investors an excellent opportunity to build their portfolios and take advantage of the yields currently available and with prices unlikely to grow significantly over the next twelve months, investors must look beyond capital gains and focus on maximising yields. Demand for rental property is unlikely to diminish in the short to medium term so looking beyond straightforward buy to lets to more complex deals which can offer yields of up to 9% is an option many professional landlords might find worth exploring.”
Following on from my last blog, there’s also been yet more reports out confirming the ongoing demand for student property – despite slightly falling overall student numbers due to the huge increase in student fees this year. All the indications are that this is just a short blip for this year only – and there are still masses of students looking for high quality accomodation.
If you’re looking to invest in property in Bristol – or elsewhere – and especially if you are new to property investment, then do come along to our new Property Investment Meetings – PIMs – which we’ll be holding every month, starting this Thursday 27 September at Holiday Inn, Bristol City Centre. We have some great speakers and it’s a great opportunity to network and make contacts, or just find out more.
See you there!
To Your Property Success
Del Brown, Property Investment Expert and author of Making Money From Property – Bristol Fashion