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Buy-to-let news
2010 looking tough for PRS,
says ARLA
While 2009 was a difficult year with property oversupply should have a positive effect on will become an even greater
for the entire property market, decreasing due to reluctant the PRS, creating opportunities issue, as homeowners and
2010 looks likely to present an landlords leaving the market, for new and existing investors landlords alike are encouraged to
even greater challenge for the according to ARLA. Evidence of and driving standards up. make their homes energy
private rented sector (PRS), increasing sales in certain areas "In a recent debate the efficient. Yet without incentives
according to the Association of seems to indicate this trend. Housing Minister displayed a like tax relief, it will be difficult
Residential Letting Agents "As demand rises, in particular lack of empathy with those living for an already struggling sector
(ARLA). due to a lack of social housing, in the PRS when he argued that to make the necessary
Yet there are also there will also be mounting it consists of three million improvements.
opportunities, in particular as pressure on the sector to provide households - when it in fact "The Pre-Budget Report was
availability of lending begins to good quality rental properties," consists of eight million people. a missed opportunity for the
increase while house prices are said Ian Potter, operations Perhaps we should question why Government to show its
still historically low, enabling manager at ARLA. "There has he seems to have depersonalised commitment to the PRS -
timely investors to purchase been little commitment from the the PRS, as the Government the boiler scrappage scheme,
properties for the buy-to-let Government thus far on continues to evade implementing for example, should include
market. economic measures to help the measures to help the sector." rental properties and be part of
The residential rental market wider industry meet property ARLA predicts that Landlords Energy Saving
will continue to stabilise in 2010, demand, but increasing demand throughout 2010 standards Allowance (LESA)."
Property investment Landlord advice for 2010
confidence increases
Townends estate agents has given currently the most talked about
advice to landlords as to what subject area. With so many
For the third month in a row, Two thirds say that they are they need to take into influential factors that could
figures from the Worldwide benefiting from the current low consideration moving into 2010. help to stable rents or push an
Property Group reveal an level of interest rates and of these According to the latest RICS increase or decrease Caroline
increase in confidence amongst 60 per cent say that this has survey residential rents are set to advises landlords to have a
property investors. increased their desire to purchase rise next year as the number of competitive edge when
The property investment property. properties coming onto the marketing their property.
company's monthly survey Although the number of market drops off. The survey “Moving into 2010 there will
reports that 88 per cent of those people who are considering also stated that demand for be an element of sensitivity, but
people who responded during buying a property in a foreign rental property is still rising. landlords need to be receptive to
November say that now is a good location fell slightly, nearly 50 Caroline Kavanagh, group their agent’s feedback on what is
time to invest in UK property per cent of those who completed lettings director of Townends required on the property and
compared to 87 per cent in the survey say that they would estate agents, agrees that demand price. Generally, landlords will
October and 85 per cent in consider buying overseas, with has been strong in recent need to be realistic on price.
September. This is yet another the most popular location months but says, “If demand Pricing in line with other
sign that improvements in the identified as the Caribbean. continues to rise then it will give available stock will be critical to
UK property market are Commenting on the figures, tenants bargaining power which achieving a timely let.
continuing despite ongoing Kevin Wilkes, managing director could affect rental prices on a “People absolutely ‘rent a
economic difficulties. of the Worldwide Property downward curve.” lifestyle’ as they do ‘buy a
Further positive results were Group said: "The results of this A lot what happens next year lifestyle’ and landlords will also
revealed with a higher percentage survey once again show the is, of course, dependable on need to consider décor as
of respondents expecting UK resilience of the property market. other elements as the current tenants are much more
house prices to rise by a greater With dreadful savings rates and upward trend in the housing discerning now even in the right
amount. 23 per cent of those continuing stock market market continues to affect the location. Presentation will be key
people who expect prices to rise volatility, investors are still lettings market. Caroline believes in the new year so I would
over the next 12 months believe turning to bricks and mortar as a that next year’s activity will be recommend to anyone about to
that this will be by more than 5 safe place in which to invest their very much governed by put their property up to let to
per cent versus just 14 per cent hard earned money. I see no borrowing ability. start thinking about how their
of respondents from last month's reason why this will not continue Pricing however continues to property looks in order to
survey. throughout 2010 and beyond." dominate discussions and is capture the right tenant.”
January 2010 Mortgage Introducer www.mortgageintroducer.com
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