In this three-minute read, we look at the rental property market in North London and why now is a good time to invest.
Have you ever considered becoming a landlord? Investing in property can be a great way to make the most of any money you have to invest. Generally, it’s best if you’re prepared to invest over a long period of time. So, why is right now a great time to get into property?
High numbers of tenants
The latest stats* from May 2021 showed that numbers of prospective tenants continue to increase. Per letting agency branch, the average number of tenants jumped from 82 up to 97. In 2020, the highest average number in May was 70.
Low numbers of properties
The average number of properties managed by each letting agency branch for this year was at 203 in May. The year before, it was 208. This seems like a small reduction per branch but that’s an average and multiplied across the whole of the UK, it has a significant impact.
Some tenants want to negotiate over rent. Perhaps because of the lack of available properties, this number has reduced. This could be because they would rather secure the property than worry about negotiating. The number of tenants that negotiated rent reductions is at the lowest since records began – at 0.9% in May.
Mark Hayward, the Chief Policy Adviser from Propertymark, a respected estate agent industry organisation, said: “Yet again, we continue to see incredible demand from home seekers. There has been a record-breaking number of people registered per branch for the month of May. This demonstrates the continuation of a booming rental market.
We will be keeping a close eye on the sector in the coming months. The current strength of the sales market may be off-putting to private rental investors. Also, any potential impending taxation on property will be a consideration for all landlord types. But overall, it remains fantastic to see rent continuing to flow this month.”
Contrary to opinion
Between April 2020 and March 2021, the numbers of landlord possession claims have fallen. This suggests that tenants and landlords have invested in a collaborative approach to the challenges of the pandemic. This bodes well for the future of those relationships and the industry.
If you’re not sure how to become a landlord, or are a seasoned pro but want to maximise your yield, get in touch with James Edward Properties for a free, no-obligation chat.
*Figures from ARLA Propertymark