The importance of a thorough London property inventory may have become even greater, due to prospective tenants now having a greater amount of choice than was the case until relatively recently.
This is at least the warning issued by several key observers of the capital’s buy-to-let sector, including one leading letting agency that has said owners of rental property are having to work harder to protect their investments.
As reported by the website Letting Agent Today, the agency has described the current buy-to-let market in the capital as neutral. This is due to the number of tenants having gone up, but those tenants also having so many properties from which to choose, that rental values in such areas of the capital as Zone 2 and 3 have been left flat.
A finely balanced situation for both landlords and tenants
The agency stated that across most postcodes in London, an even spread was observed between 2% drops and 2% rises, partly because of various new schemes being rolled out that are suitable for buy-to-let investors. Nor is this stable situation one that the agency imagines changing any time soon.
“Tenants are looking for value for money, especially as corporate budgets haven’t increased and they know that in a tenants’ market, they can drive a hard bargain”, the agency observed. “Many landlords are taking the business decision to renew contracts with existing tenants with no rental increases in order to keep good tenants and avoid any possible void periods.”
This latter analysis is backed up by the agency having seen 17% of its landlords renewing their existing tenants while not increasing their rent.
Enhanced stock levels making life easier for tenants
The agency did also notice, however, surprising rental decreases in popular areas ranging from Golders Green, Hampstead and Barnet in NW11 to South Kensington and Knightsbridge in SW7 and Marylebone and Westminster in W1H. Barnes and Richmond upon Thames in SW13, Hammersmith and Fulham in W6 and South Lambeth, Vauxhall, Battersea, Clapham and Stockwell in SW8 saw similar declines in rent values.
Lettings director at the agency, Marc von Grundherr, explained that “the drops are all in desirable areas that continue to be very popular. What we are seeing is more stock coming to the market thanks to large developments and that is giving tenants more choice on places to rent and more power to negotiate lower rents.”
He urged landlords in not only these areas, but also other parts of London to pay close attention to the maintenance and presentation of their properties to increase their competitiveness at a time when tenants frequently have many options for a new rental home in the capital.
Such diligence towards the condition of your property – assisted by such measures as the right London property inventory by a reputable independent company like Yellow Oak Inventories LTD – could go a long way to keeping your investment occupied with good tenants.
So, to learn more about the inventory, inspection, check in and check out services that we can provide, why not call our team today on 020 3713 4933, or send us an email?