It’s good news for landlords: Properties are being tenanted quickly
According to a recent report, more landlords are letting their buy-to-let investments, even before an existing tenant has moved out. Auction House London explores some of the reasons why properties are being let so quickly in the UK, making it now a good time to make a buy-to-let investment.
Latest statistics show that 33% of new lets in 2015 are arranged with potential new tenants, even before existing incumbent tenants, have vacated. This is an increase of 27% on last year’s figures. David Fell, Research Analyst at Countrywide, say’s “Some landlords have arranged new tenants, over a month before their existing tenant leaves”.
In London, the statistics are even higher, 51% of new lets are arranged before a sitting tenant leaves the property and this is up from 41% from the previous year. When a deal is decided before the existing tenant vacates, there is just an average of six days before a new tenant moves in. 10% of the time it may all happen on the same day.
Double the numbers of lets are agreed during the week in London than in any other area of the UK. Outside of cities, a landlord normally has to wait an average of 15 days longer to acquire a possible tenant at the property asking price.
Void periods between tenants are rare at the moment and with professional managed property assistance, should not lead to landlords accepting lower monthly rent than originally considered. The average annual void period for landlords has dropped to its lowest level since 2002, some 13 years. If the property does remain empty, then prospective tenants may be able to ask for reductions, 95% of landlords would agree rather than continue to hold an empty property. If the landlord is reliant on the income to support themselves, as is the case with retired property owners, this could be a good bargaining point for new tenants. A very strong demand for accommodation in the property sector, allied with a decreased supply, is making the United Kingdom a popular centre for investment in the property market.
Within the UK, statistics suggest that it now only takes an average of 32 days for any property to be re-let. For investors in property, it means that rental rates could be increased by £35 per month on average.The first tenant to look at a property is often eager to pay a small extra premium to make sure that the owner removes the property off the market so that no more viewings occur. These types of proactive potential tenants, who may want to move quickly and secure the property they want, are usually willing to pay the asking price without quibbling.
Auction House London are specialists in selling buy-to-let properties to potential investors. For up-to-date information and assistance, in all areas of buying and selling at auction, please study our website and contact us if we can be of assistance.