According to the latest Hometrack report, sellers and buyers are staying away from the uncertain property market.
The report recorded that the number of new buyers has fallen 10.5% in the last month, after a 6.3% fall in December and a 2.2% drop in November. This month, there was also a 14.3% fall in sales agreed, following falls of 0.9% in December and 4.6% in November.
There was not a single region in January where the number of sales agreed did not fall. Sales in East Anglia held up best, with a drop of 6.3%, but fell hardest in the North-East (down 23.1%) and the South-West (down 19.2%).
With the uncertain state of the sales market the outlook and demand on the rental market looks positive. Many sellers are now taking their first steps into property investment and choosing to rent out the home they have been attempting to sell. These people in the past have been called "accidental landlords" as it was thought their financial situation pushed them to renting their property out.
Now more and more are making this choice because they see and understand the opportunities that running a residential property business will bring.
Many of these new Landlords are choosing to learn their trade through other peoples experience and initially employ letting agents. This increases the prospect of them becoming successful and profitable business people. This is not a new scenario at Martin & Co., we saw this happen in the last property recession 1989 to 1993 and even when we had a slight slowdown of the property market in 2004. Many of these "accidental landlords" expanded their property portfolios and became residential property magnates.
Owner of the Pontefract office of Martin & Co, Michelle Stoppard, adds “Many of the landlords we are currently meeting are those trying to sell their property, without success, and are trying their hand in their lettings market instead. With the potential rental yields from their property looking attractive, especially when compared with savings rates, it’s an avenue more and more property owners are considering. Some of these will think about selling when that market picks up steam again, but many will remain in the market and add to their portfolios in years to come.”
If you'd like to know more about running your own profitable residential property business, benefit from our experience and ask for our advice. Contact our Pontefract office on 01977 799550 or firstname.lastname@example.org.