Potential Eden Project North Investment Property

Rental market predictions for 2022

The pandemic has influenced rental demand and opportunities across the country, but what does this mean for tenants and landlords in 2022?

Changing demand and supply

The last two years have witnessed a boom in house prices, with the average property in October 2021 commanding £24,000 more than it did a year previously. * This dramatic rise has forced many potential first-time buyers to remain in rental accommodation for longer.

UK rental prices, in turn, increased by 8.6% between November 2020–21. ** Despite this, Zoopla’s recent market report shows that affordability remains roughly the same, with 37% of a single tenant’s income spent on rent.

However, some regions have been significantly affected as workers from more populated areas retreated to the countryside, drying up an already holiday-centric rental market. This has spiked demand in rural heartlands such as the South West, which also contends with lower wages.

What will 2022 bring?

Zoopla also reported that overall demand for rental homes has increased by 43% while supply has dropped by the same amount, based on a five-year average. Thanks to fluctuating movement patterns and remote working, renting is likely to remain a problem in places where affordable rental stock is already thin on the ground.

The pressure on rural hotspots may ease now workers and students are being encouraged back into urban centres, but this also means an uptick in city prices.

While London’s rental prices are still lower than pre-pandemic levels, we can expect this to increase as supply dips in the coming months. Zoopla’s data shows there has likewise been a 60% hike in demand in Birmingham.

Alongside underinvestment in social housing and fewer landlords, the pandemic has created an unbalanced situation that’s likely to increase rents by 4.5% in the UK and 3.5% in London.***

The good news? Now is a great time for landlords to invest in quality housing to make a strong return while easing pressure on the rental market – a win for tenants too.

Call our property experts today to have your property valued for the lettings market.

*According to recent data from the UK House Price Index

**Based on the HomeLet Rental Index

***According to Zoopla’s November 2021 Rental Market Report

How to prevent emergency property issues as a landlord

As a landlord, it is a legal responsibility as well as a moral obligation to make sure your tenants feel safe in your property.

Additionally, emergency property issues are costing landlords billions every year, according to research from Direct Line.

For both the reasons above, it is important to help prevent the need for emergency callouts and issues – where possible.

The most common issue for landlords to fix is plumbing, closely followed by gas or heating.

Thankfully, on average, plumbers have the best arrival time out of all contractors, with a typical response time of 13 hours from first contact, whilst gas and heating engineers take a little longer to respond at 21 hours.

We've provided a few useful tips, which should go a long way to preventing these problems.

1) Clean your pipes often

Hair, grease and other gunk can build up in your drains over time, potentially causing a blockage.

Using a non-corrosive drain cleaner is a great idea to clear the grime in your pipes.

2) Annually service your boiler

Whilst it might sound unnecessary to have your boiler checked every year, a qualified heating engineer will be able to spot minor issues that need fixing before the situation escalates.

3) Insulate your pipes

During winter, it’s important to ensure your pipes don’t freeze, as this could cause them to burst.

Insulation can be cheaply purchased from many DIY stores and is easy to install.

 
4) Check your fuse box is in date

It is easy to forget about your fuse boxes, however, they contain essential features that prevent electrical faults and fires.

If your fuse box is close to expiring, hire a qualified electrician to ensure the property is safe.

5) Change the smoke alarm batteries

Whilst this isn’t an issue that requires an emergency contractor, it could require the emergency services if left neglected.

Smoke alarms are crucial to alerting people in the property of a potential fire and could be the difference between life and death.

Batteries are cheap to buy and easy to install, making it a simple job to protect your tenants and your property.

For any questions about our services for landlords, get in touch from our website.

Your essential checklist as a landlord this winter

With the countdown to Christmas on, it’s essential that landlords prepare their properties for the colder months.

We’ve put together the following checklist so you can keep your property in the best condition for your tenants this winter, right through to spring.

Boiler

With boilers working extra hard over the winter months, it’s essential to make sure that they have been serviced ahead of time.

You may want to consider putting a service plan in place to minimise future breakdowns and disturbances.

Water pipes

Frozen water pipes are a common problem when the weather starts to turn colder.

Ensuring pipes have been properly lagged and insulated will prevent them from freezing or splitting – an expensive job to repair as a landlord.

Advising tenants to keep the heating on, even at a low temperature, may be worth considering to further prevent any problems with pipes.

Guttering

Whether your property is rented out or vacant this winter, clearing out your gutters is important to avoid potential leaks.

A build-up of leaves or debris in your gutters can stop rainwater or snow from draining away.

If not cleared away properly, this can cause several problems, including leaks, damp and cracked drainpipes.

Insulation

If the insulation in your property is properly checked, then it can go a long way to helping reduce your heating bills.

A better-insulated property will reduce the amount of heat lost and can therefore be a lot more attractive to tenants. Investing in your property’s insulation can also fetch you a higher rent too.

If you own older buildings or houses with a loft conversion, it’s important to make sure these are well insulated, it’s also worth noting that grants can be available to help improve insulation.

Windows and doors

Before the cold weather really sets in, you should take the time to inspect your seals on both windows and doors.

Draft excluders can often be a popular and cheap method to tackle drafts coming through doors.

As your leading local agent, we know how important it is to carry out a winter inspection on your properties to ensure the comfort of your tenants and avoid future repair costs.

For more information on any of the above or to talk with a member of our team, contact us.