Lettings Market Brief: Positive changes on their way
Despite everything that is happening in the wider economy, I’m pleased to say that the year has got off to a positive start from a lettings point of view.
Although Brexit and the uncertainty it brings are hard to ignore, there is a still a high demand for good quality rental properties and we don’t expect the rental market to be severely affected, whatever the outcome may be.
Landlords are however, exercising caution when it comes to making new investments which, although is expected, they should be encouraged by the fact that there remains a shortage of good rental properties in York with the demand from tenants remaining high. If you are looking to make an investment this year, property does remain one of the safest options, and a good alternative to the turbulence of the stock market, especially here in the North where property prices are continuing to grow. Average rental yields in York at the moment are between 4.5 – 5%.
Another factor affecting the lettings industry specifically is the Tenant Fee Ban which we now know is expected to be implemented on all new tenancies from 1 June. The ban is likely to see a rise in rent prices, as agents and landlords look to recover the costs of fees that would have previously been charged to the tenant.
Whilst this isn’t great news for tenants in the short term, it does mean that we are likely to see many of the weaker, less professional agents fall by the way side. This is good news for the industry as a whole, and indeed tenants, as it is yet another step in it becoming more professional, and better regulated. At Hudson Moody, we are focusing on continuing to offer a pro-active and personal service to both our landlords and tenants to ensure that they are always receiving good value for money on both sides.
If you would like to discuss your property investment opportunities in more detail, please call our team on 01904 629629 or visit our website for a free online rental valuation for your property.