Caroline Rutherford, Intercounty's Letting's Area Director shares her views on the rental market.
As the summer holiday season approaches we’re seeing a busy period ahead with lots of families moving into new homes for the start of the new term at our excellent local schools.
Following a raft of changes over the past year including the introduction of the 3% stamp duty land tax, the scrapping of the 10% ‘wear and tear tax relief, Right to Rent checks and the phasing out of mortgage tax relief the rental market in general continues to be stable with the Intercounty region continuing to show strong demand from tenants.
Long term predictions show that the rental market will continue to grow – recent analysis published by accountancy firm PwC suggests that by 2025, 7.2m households would be in rented accommodation, compared with 5.4m in 2015 and 2.3m in 2001.
One of the biggest issues across the property market in 2017 is going to be a lack of supply of rental properties – in fact 2 of our areas Chelmsford & Braintree featured in the recent Rightmove Rental Trends Tracker as the Top 5 most in-demand areas outside Greater London; the Top 5 were Braintree, Oldham, Chelmsford, Tamworth & Basildon. One of the contributory factors for the lack of available properties is that tenants are staying in a property for longer - based on figures from the 2nd quarter of this year, the average tenancy length at Intercounty was 27 months.
As tenant demand increases - so too does expectation and many tenants are looking for properties that provide experienced day to day management with any maintenance issues that they report being dealt with swiftly and efficiently. With constantly changing legislation in the private rental sector, landlords are increasingly looking to professional managing agents to work with them to ensure that their properties are being let legally and safely.
Whilst we can’t predict the effect that Brexit will have on the UK property market – one thing we can be sure of is that the demand in the Intercounty region from tenant for good quality rental properties will continue.