UK Landlords look to increase portfolios after a 47.9% increase in the Private Rented Sector according to latest figures
According the latest market report from Jones Lang LaSalle, the UK private rented sector has grown by 47.9% since 2007. With high prices, unrealistic deposit requirements and mortgage constraints making homeownership unattainable, the expansion of the private rented sector (PRS) looks likely to accelerate with UK landlords looking to benefit from increasing rental demand.
James Davis, CEO of online lettings agent, Upad comments,
“The latest report from Jones Lang LaSalle suggests that 1.7 million additional privately rented homes will be needed over the next four years to meet demand. And, as a result of growing tenant demand, there is strong motivation for landlords to increase their portfolios and take advantage of the market.”
Meanwhile, according to a recent Private Rental Sector Trends survey from specialist buy-to-let lender Paragon Mortgages, 91% of landlords said they thought that demand was fixed or had increased between July and September this year while 68% of landlords said that their rental income had remained the same during Q3 2012 and 27% said that it had actually increased – another reason for landlords to feel positive about the performance of the PRS.
With this positive news in mind, it seems UK landlords plan to increase their portfolios with the survey research revealing that the average holding is set to increase from 12.5% to 12.9 properties within a year. Of those surveyed, 16% plan to buy more property to rent out over the next 12 months.
Davis explains,
“The UK’s private rented sector is not only stable, it is increasing. There is more incentive than ever for UK landlords to invest in rental properties with the likelihood that we will see a significant increase in the number of accidental landlord’s entering the market over the next year. As a result, it is important to highlight exactly what it takes to be successful in this game that’s why have provided our top five tips on how to be a better landlord.”
For UK landlords looking to take advantage of the PRS, why not brush up on your landlord skills with Upad’s top tips.
1. Meet your tenants
It is essential that you get to know your tenants and form a professional relationship with them. If you make the effort to form a solid relationship this should make for a smoother tenancy with less hassle.
2. Reference your tenants
This might sound obvious but always make sure a tenant can afford the rent. It is also worth doing your research and checking that their rental history is free of any problems.
3. Professional photography
Getting professional photographs for your ads will get you up to 8 times as many tenant enquiries per day. At Upad, we recently had a property advertised with standard landlord photographs for 58 days which only received 10 tenant enquiries. When we advertised the same property with professional pictures for just 18 days tenant enquiries jumped to 27. The results speak for themselves.
4. Set up a standing order mandate
Why not set up a standing order mandate which will mean that your tenants will never forget to pay the rent. Alternatively, why not let Upad do it?
5. Name drop
When advertising a property, mention you are a private landlord in your ads. Only 15% of tenants want to meet an agent for viewings, so this is a big selling point.
As one of the UKs largest and fastest growing letting agencies, Upad specialise in helping professional tenants rent properties from landlords directly by allowing landlords to manage their own viewings. As a result, Upad receive around 20,000 tenant enquiries per month.
Upad offers a complete lettings service for a flat fee of only £299 (+ VAT) which includes professional photography and a floor plan, a ‘To Let’ board erected outside the property and advertising across all major UK lettings sites as well as comprehensive tenant referencing, drawing up of the tenancy agreement, deposit registration and crucially, rent collection. For more information please contact Upad, on 0333 240 1220 or visit www.upad.co.uk.