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| THURSDAY 24TH FEBUARY 2005 |
 LONDON
& HOME COUNTIES LETTINGS AHEAD OF FORECAST
Leaders, the independent letting agency, report a busy start
to 2005, having completed January almost 10% ahead of forecast.
New tenancies were up 20% compared with January 2004, and there was
an increase of 15% in the number of new instructions received. Across
Sussex, Surrey and Hampshire average rents rose 5% compared with last January.
Says Leaders’ Joint Managing Director, Paul Weller: "This
is an exciting start to the 2005 and we are confident the year will continue
along these lines. While house prices remain high many people are unable
to buy and are choosing to rent instead."
"Of those that can afford to buy, many are waiting to see what
happens with house prices before committing to a purchase. Renting remains
an affordable and attractive alternative to many, as well as a flexible
option for students, people in between owning properties and those working
away from home."
Leaders believe house prices are unlikely to drop significantly because
- according to the Barker Report issued last year - there are still over
250,000 houses too few being built each year in the UK to keep up with
the needs of the existing population, immigration and the replacement
of old houses. This shortage will contribute to house prices remaining
high, thus keeping many people in rented accommodation.
A particularly busy area for Leaders in January was Sussex, where branches
significantly exceeded their targets, some by as much as 37%. All types
of properties – from one bedroom flats to five bedroom country
houses – were being snapped up within days of coming onto the market.
In February Sussex branches are continuing to see a steady stream of
applicants register with them for accommodation.
For landlords and prospective landlords the future looks promising,
with a number of good investment opportunities awaiting the canny investor.
There have been a number of repossessions as a result of interest rate
rises, and there are always people in urgent need of a sale, for example
because they are going travelling; moving for work; going into care or
sheltered accommodation; or inheriting a property that needs to be shared
among beneficiaries. These types of vendors are likely to consider offers
in the current slow market.
However, Mr Weller warns that buy-to-let is not a way to make a fast
buck and investors should always to seek professional advice from an
experienced, independent agent before taking the plunge. "There
are dozens of important factors to consider when buying a property to
let," he warns, "all of which will influence the success of
your investment."
For example, you need to have a good understanding of your ‘target
tenants’; the local area and amenities and how these affect demand;
potential hotspots; the effect that type of property and property features
have on demand, rental value and yield; legislation applying to let property
and landlord tax obligations; and how best to prepare your property for
letting.
"All these, and more, are important factors in the success of an
investment which is why it imperative to seek expert advice, not only
before investing, but also throughout the period of investment," said
Mr Weller.
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