If the pause button has been pressed for some sectors of the housing market, rental demand is on fast forward, according to David Lancaster at Savills in Chelmsford.
“Tenants are crying out for good rented accommodation, particularly family sized farmhouses and cottages in areas of Essex within striking distance of a train to London,” he said. “But stocks are low and tenants move fast - what we do have on our books is snapped up very quickly.”
Uncertainty over house sales is behind some of this increase in demand. “People have all sorts of reasons which mean they have to move rather than stay put. It could be a job relocation, or a change of school or lifestyle. At the moment, many can’t find anything to buy at what they consider to be the right price.
“If they have managed to sell their property, some would rather hang onto the cash so that they are in a strong position should the market fall. In the meantime they need somewhere to live, so they rent.”
Rental values are holding up well with an attractive four bedroom house or cottage typically achieving between £1,250 and £1,750 a month and, although rents are not increasing much, the best properties are attracting competition, allowing a choice of tenant.
All this is good news for landlords, especially during July and August, traditionally a busy period for lettings when tenants are keen to move in time for the new school year.
“There simply aren’t enough good properties to go round, but it is an excellent market and anyone thinking of letting their house, perhaps to finance a move of their own, would do well to seek advice,” added Lancaster.
