June saw a record breaking month for Martin & Co Aldershot and we would like to take this opportunity to thank all our clients for their continued support in using our services and our staff for their continued hard work.
However the property market is ever changing and we wanted to offer our predictions for the future in the sales and lettings market. You may have heard in the press that house prices are starting to rise, in our recent experience properties are starting to sell and getting much more interest than they would have done this time 9 to 12 months ago. We could argue that prices have increased very slightly in this location but it is more the positive signs of activity and sales being agreed that leads us to believe this change in market condition will continue.
The recent improvement in the sales market will have a knock on effect in the lettings market. In fact we are already starting to see signs of a changing rental market as a result. Rents have increased steadily since 2009 but this year we are renewing more and more tenancies at the same price that was agreed 12 months ago. If your property has been let recently or had an increase last year, it is likely that you may have to keep the rental price the same on renewal to remain competitive and keep your tenant in place. In fact this month for the first time we are offering a property to let that has an asking price less than the current tenant is paying. We must stress that this may be a “one off” but feel it is worth mentioning as we like to feedback what the market is doing as it happens.
The governments help to buy scheme is being rolled out to all property next year whereas at the moment it is restricted to just new build purchases. This will only create an upsurge in the sales market and whilst many will welcome the capital gains and increases in equity, it may mean that many quality tenants are going to try and buy, meaning the lettings market could become more competitive. So if this scenario were to occur, what can you do? Well, in our experience you can do 3 things.
1. Improve your property and make it more appealing than the competition. Renew decor, carpets, replace old kitchens or bathrooms etc.
2. Open up the criteria of the sort of tenants you will consider. E.g. if you haven’t considered tenants on housing benefit or with a pet before this could open up the pool of potential tenants.
3. Make sure your price is competitive against other similar competing properties available in the market.
One thing is certain and that is the property market will always be changing, sometimes fast and sometimes slow. As always we are here to offer advice if you wish to discuss anything contained within this update or if you have any property related questions.