Estate agent speaks of changes in Shropshire's rental market
Investors in the know are adding properties to their portfolio after online search activity for rental property increased by 40 per cent on one website, a Midlands estate agent said today.
The rental market is very competitive with the amount of homes available falling so more homeowners across the UK are becoming landlords.
Caroline Eaton, of Berriman Eaton in Bridgnorth, Wombourne and Tettenhall, said the property market is changing.
She said: “Buy to let mortgages are frequently discussed as commonly now as endowment versus repayment mortgages were 20 years ago and I’m sure people recall the financial advice of the time.
“But although freely available, lenders now require in the region of a 25 per cent deposit and often a costly arrangement fee.
“This Summer we have seen a positive increase in sales, particularly below the £250,000 range, not only fuelled by investors but also a re-emergence of first time buyers as parents are using equity release options to give their children the necessary deposit to buy.
“This ‘early inheritance’ method is quite beneficial for the young, not only could it be a long term good tax free investment, but the rental market is competitive – Rightmove in the last 12 months has reported search activity for rental property on their website increased by 40 per cent with the stock supply falling by three per cent.”
The change in the market is creating a lot more first-time landlords who are looking for advice on the best way to do things.
“Tips from two landlords who built up a £180million property portfolio include buying houses, never flats, buying new or nearly new to avoid DIY costs, choosing tenants carefully, going with a magnolia colour scheme and buying close to home,” added Ms Eaton.
“One thing which does surprise people is that these landlords said generally dog and car owners kept the house in better condition than those with no pets!”
