Overall, lettings have increased 13 percent since June 2016 and Director Adam Kingswood says that the thriving Nottinghamshire rental market is a reflection of the strong demand for quality accommodation and a shortage of supply.
Adam comments: “We are experiencing a strong demand for rental property across all sectors of the market. Whether it be large houses for families in the leafy suburbs or city centre apartments, finding suitable accommodation is proving difficult. This quarter over the summer months is historically the busiest quarter of the year in the Nottingham rental market due to many different tenant types all looking to move into their new rented home at the same time; particularly medics starting new placements, teachers, graduates and students, as well as everyone else. So a great time of year for landlords bringing properties to the rental market!”
“As with the sales market, we are now seeing multiple applications for each property and suitable properties are being tenanted very quickly. This is great news for landlords who are avoiding having empty properties between tenancies but not so good for would be renters who are having to move quickly to snap up desirable properties in a very competitive market.”
We predict that the demand for quality rental accommodation in Nottingham will continue given the city’s population of students and young professionals. Problems of affordability for first time buyers, most notably the requirement for large deposits, are also increasing rental demand.
However, there are concerns amongst many of Nottingham’s letting agents that demand for rented properties is already greater than the supply available which could result in increased rental costs.
Adam adds: “Government initiatives such as the removal of landlords’ tax relief and the 3% stamp duty penalty on second homes is forcing many reputable landlords to leave the sector. In Nottingham selective licensing will be another added burden for landlords and could contribute to a reduction in the number of rental properties available. When there is a shortage, prices rise. I therefore think it is important that we encourage more landlords into the sector to provide good quality rental accommodation to meet the demand, not drive them away.”
The impact of the raft of legislation is forecast to adversely affect the private rental sector. AXA’s latest survey shows that more than 40% of UK landlords plan to make adjustments to their property portfolios, with 21% planning to sell their properties by 2020 and a further 10% aiming to reduce their property portfolios. (* Figures are from a study of 382 private residential landlords in the United Kingdom conducted by AXA and Taylor Main March 2017.)
For existing investors who chose to remain in the market or new investors wanting to achieve healthy returns from buy-to-let, the message is clear that tenants are looking for well-appointed properties for longer term lets and therefore landlords are advised to ensure that their properties are brought to the market in first rate condition.
Please do not hesiate to contact us for further advice around this.