Hang on in There!
Says Robert Gordon-James of Martin & Co, Tonbridge, the UK's No 1 letting agent
Did you know that the average annual price increase for properties in Tonbridge in May 2021 was 7.9% this compared to 2.4% a year ago?
I have a feeling that there is a developing crisis in the rental sector, although it bodes well for some. Across the UK and certainly throughout Tonbridge, there is a dire shortage of available rental properties-this has now been the situation for the last 12 months, and I can see little change on the horizon… if at all!
Why is this happening? Ever since the government started to penalise landlords by reducing or removing tax breaks, introducing double stamp duty and by banning tenant fees, investment in the rental market has started to have less appeal to the discerning punter. In addition, property prices have been escalating, which means that investors are looking at diminishing returns.
However, now that we have a dearth of available rental properties, rents are starting to rise. If rents rise then yields rise also; some tenants are now bidding over the asking price for rentals, such is the shortage! Last week another agent told me he had 11 offers for a one-bedroom property!
So, my message to all you landlords out there who are thinking about selling, is - hang on in there! Even in the past if rents haven’t been increasing at the rate you would have liked them to, at least the capital value of your property has increased- don't forget that investment in the rental market should be for the long term – it’s not about quick returns.
The stock numbers in the private rented sector are starting to slowly fall, so if you are already in, then stay in! I can tell you that now there are absolutely no government plans for an alternative to the private rented sector - people desperately need homes, and there will always be a shortage. High demand and low supply equals increasing rent levels- not good for tenants, but wonderful for landlords!
Martin & Co Tonbridge
126 High Street
Martin & Co are members of the Tonbridge Angels FC Business Club. For more details pease contact Jeremy Ramsden, Director of Fotball Investment 01903 214 383 or 07950 575 332