9th
Feb 2018
If landlords are targeting younger tenants then the best way to attract this market is by offering shorter term lets, because the age group is far more likely to move around rather than taking a long term tenancy.
www.canstockphoto.com
An estate agency has recently reported from its research on the prime lettings market, that landlords should be far more open to short lets as in areas that have high numbers of rental properties which can cause rent reductions to compete. Prime markets outside of the capital have fallen 1.5 % over the last twelve years. The types of properties that are being 'snapped up' with the highest rents are in excellent condition and 'ideal' location whether close proximity to schools and or travel network.
Despite the government wanting landlords to rent their properties out on longer term tenancies, there has been a significant change in demand in the rental market, because of the younger age group of renters preference for short term lets.
The agency said: "Landlords will need to bear the current climate and supply in mind, remaining flexible on price and focused on the condition of their properties to remain competitive with the new build stock. The rising popularity of short-term lets means tenant’s expectations have changed and to appeal to a younger demographic, landlords should also consider what they include in a rental package and remain flexible on terms."
London's prime market in the Q4 of 2017 saw a small reduction in rents but over the last year rents on average across the UK fell by 3.1%, which was lower than 2016. Tenants are now far more concerned with living costs because of the uncertainly of the economic situation, which has had an impact of slowing down the prime market. The agents are still optimistic about the private rented sector and say that investors should not be put off as the changes are very little.
The agency finished by saying : "A high level of supply has continued to hold back rents, with tenants remaining cost conscious in the current economic climate."
News Archive »