If you’ve been paying attention to the domestic rental market over recent months, you’re doubtless aware of a couple of disturbing trends. The one that has made all the headlines is, of course, that rent rises are slowing to their lowest pace in almost four years as the cost-of-living crisis continues to impact the affordability of rental properties for UK households.
While not dominating the news schedule to the same degree, November 2024 saw the demand for UK rental properties decline for the first time since the early days of the coronavirus pandemic, with demand hitting -2%, a marked drop from 17% the previous month.
This startling data came from a national survey of estate agents conducted by the RICS (Royal Institution of Chartered Surveyors), which covered a variety of important issues of concern to private landlords, letting agents, and property management firms alike. These included -13% of the number of properties being put up for rent, which neatly mirrored the 12% of new buyer enquiries. This suggests that more people are committing to a house purchase than pursuing a rental property.
What do these figures mean for you?
If you’re a private landlord in the London area, the possibility of the rental market stagnating or even decreasing is a worrying one. With house prices in the capital already at a premium, you simply can’t afford to have homes standing empty for a protracted period of time. While there are still plenty of interested tenants in the market, a slowdown in demand can cause problems.
Chief among these is the concern that you cannot afford to be as choosy with who you let rent your property. When availability exceeds demand, potential tenants have more options when it comes to signing on with a landlord. If you run your business on your own, you may feel compelled to offer incentives to new clients—anything from lower rent or fewer weeks paid in advances down to a reduced security deposit to entice them to sign on the dotted line.
Corollary to this, many private landlords have expressed concerns about evicting nuisance or non-paying tenants. While it’s never a good thing to have these kinds of tenants on your books, evicting them immediately is a less attractive proposition if you don’t know for sure if you’ll be able to find a new tenant any time soon.
What can you do to protect your investment?
Fortunately, there is a solution. If you are concerned about lower tenant demand for your London-based properties, speak to Abel Living today about our guaranteed rent scheme. This arrangement means that we take responsibility for sourcing tenants and ensuring they pay on time while guaranteeing you a set sum each month, based on the total rental of the property.
While this might be a little lower than you might expect handling the rent payments on your own, it comes with two distinct advantages. Firstly, we pay you upfront at the start of every rent cycle, whether or not the tenant has paid, recouping the full rental cost ourselves. Secondly, and more importantly given these latest figures, a guaranteed rent scheme means exactly that. Even if the property is standing empty, you will receive your regular rent payments from us for as long as the house is under contract.
Enjoy Guaranteed Rental Income in London
Here at Abel Living, we understand the challenges faced by landlords in a stagnating rental market. Our team of property management experts can help you get the most out of your current property portfolio. We work closely with landlords and tenants alike, finding the ideal partnership that meets the needs and expectations of both parties. To see what we can do for you, call Abel Living today on 020 3924 4001 for a free consultation.