Saturday, 13 December 2008
PROPERTY - To Rent or To Sell
As house prices continue to drop and mortgage lending conditions continue to remain tight, there are sellers trying to find a silver lining by dismissing low offers for their property and becoming amateur landlords instead.
This view is substantiated by the Royal Institute of Chartered Surveyors (RICS) latest letting survey? revealing that surveyors are receiving historically high instructions of properties available for rent.
Although the theory of renting out a property allows the homeowner to take cover whilst holding out for prices to increase, many people are beginning to question whether this ‘easy’ option makes sense. There are several factors to take into account; the number of rules and regulations to which landlords need to adhere to, the collapse of the buy-to-let market and the impact of such high rental volumes has resulted in a saturated market, falling rents and empty properties. London and the South East have been hit the worst and the expectation for future rises in rent is pessimistic for the first time in over five years. This trend could hurt existing professional landlords as well as amateur landlords as they compete to rent their properties at discounted rates.
WOW Property has seen a significant rise in sellers unable to rent out their property. Nick Wright, WOW Sales Director comments: “Unless you can genuinely treat your property as an investment and be prepared to rent it out for at least five years then it is questionable whether renting will be the panacea for struggling sellers. By the time you take into account lower rents, rental voids, management costs, repairs and letting fees many homeowners fail to make a reasonable return or even cover their costs.”
“For homeowners that want to get on with their lives as well as avoiding the risks and headaches of becoming an amateur landlord then it may be far smarter to accept a lower offer for their own property. This will allow them to benefit from the buyer’s market and make a similarly low offer on the property they want to purchase. For those sellers trading up, this can potentially provide an opportunity to secure a better property for less money than they would have had to pay two years ago.”
WOW Property employs over 200 professionally trained estate agents with expert local knowledge throughout England and Wales and offers a growing and comprehensive portfolio of properties for sale.
Visit www.wowproperty.co.uk for further information.