Could 2015 be the year you become a landlord?
Rebecca Shirley of Spencers Estate Agents - Lettings Manager
The private rented sector (PRS) in the UK has more than
doubled in the past 14 years. Ten million people are currently living in the
PRS, accounting for four million households - 17% of the households in the UK –
and it is predicted for continued growth. By 2016, the amount of households
living within the private rented sector is expected to grow beyond five
million!
There are various factors which have contributed towards
the increase in the private rented sector. Many will say that rising house
prices in relation to earnings have forced buyers into the rented sector, as
owning their homes becomes an unaffordable option. The increase coincides with
less properties being rented through the local authority, largely down to the
re-sale of such homes, combined with the lack of new development. The general
election this year could also defer people from buying a property as they
eagerly wait in anticipation for the results!
An increase in the private rented sector where landlords
can particularly take advantage, is the demand for rental accommodation in
urban areas. The increase in ‘employment mobility’ means that properties within
easy access of Universities and Hospitals are in particular demand. We speak to
many professional tenants who are relocating to Sheffield for work in such
places. Rental properties surrounding S11 and S10 are of specific interest due
to the convenience of access into the City Centre and railway station.
The question to ask is could 2015 be the year you become
a landlord or even add to your existing portfolio? There is no question that
the current demand for properties in the private rented sector far outweighs
the supply. Legislation changes in 2014 to include stamp duty reforms, coupled
with the proliferation of buy to let mortgages assisted those looking to buy a
rental investment, which is set to continue into 2015. April 2015 brings new
measures that will enable over 55’s access to their pension pots without the
implications of paying a high tax. From this, we expect to see an increase in
‘silver landlords’ who would like to invest their money into a rental property.
The Sheffield rental market is and continues to be
buoyant. If you are thinking of becoming a landlord, whether for the first
time, tenth time or even as a result of the pension changes, we would be happy
to give advice on areas where rental properties are in high demand. We
can offer services ranging from fully managed with rent guarantee down to a
tenant find only option for the more hands on landlord. We can include
professional photography, floorplans, energy performance certificates,
comprehensive tenant referencing, professional inventories and not to mention,
a friendly face! We take pride in specialising in the South and South West of
Sheffield and know the market inside out, some of us are even landlords
ourselves! Come to our office on Ecclesall Road for a chat about how we can
help make 2015 be the year you become a landlord!
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