Friday, March 18, 2011

Rental sector to continue expanding well into 2012

Devon based lettings specialists Scott-Bates & Coles Lettings and Estates are expecting busy times ahead in the Devon Lettings sector as demand for rental property in the county continues to outstrip supply.

James Askew-Coles, a director of Scott-Bates & Coles says:

“With every property we are instructed to market we are surprised, and of course very pleased, by the numbers of potential tenants contacting us either via our own website, or indeed the external property portals, whether the property concerned is in the Exeter lettings sector or areas further afield such as East or Mid Devon. This appears to be something of a nationwide trend that we expect to continue throughout 2012”.

The reason for this is of course the ongoing issue of the credit crunch, as recognised by Ian Potter, Operations Director of the Association of Letting Agents.

“The lack of new rental stock for the private rented sector (PRS) was the dominant factor in the market last year, and will continue well into 2012 because of the broader issues of diminishing housing supply and lending drying up,” said Ian Potter, operations director of ARLA. “The Leader of the Labour Party, Ed Miliband, recently flagged research that shows 41 per cent young low-to-middle earners live in privately rented accommodation compared with 14% in 1988. This trend looks set to continue while mortgages are so hard to come by and the capital barriers to home ownership appear so entrenched.”

Robyn Bates, co-director of Scott-Bates & Coles says:

“It is therefore clear that now is a great time to let a property, and with sales still hard to come by for many local selling agents, good deals are available on purchases. Rental values are still on the rise, so if funding is available to you, it could be the perfect time to begin or expand a buy-to-let portfolio.

Contact either James or Robyn for a free, no obligation rental appraisal, or for advice on a potential buy-to-let property and the possible rental yields.