CAUTIOUS OPTIMISM FOR 2012 RENTAL MARKET

6 01 2012

2012 could be the year in which property renting becomes the new ‘owning’. Increasing consumer nervousness, rising levels of unemployment and a squeeze on peoples’ purchasing power triggered by a global downturn and the current Euro zone debt crisis are all factors which could make many turn their back on prospective home ownership.

 
It is believed that, for reasons of flexibility, mobility and budget, 2012 will see a shift towards more people viewing renting as a preferred lifestyle choice, rather than a necessity.
By renting a property people are able to plan their spending much more accurately and also have the flexibility to relocate and follow job offers. These factors are currently gaining increasing importance in the current financial climate.

Experts predict that more and more housing stock will be turned over to the private
residential property lettings sector, which is still experiencing solid rental yields, propped up by modestly increased levels of buy-to-let funding made available to professional landlords.

A trend towards longer lease rental agreements means that a rented home is, for
many, no longer just a temporary, short term place to live. Following the model set by their European counterparts, many UK tenants are now looking to make a rented property their long term home. And with more and more families looking to rent rather than buy, this trend is predicted to continue throughout 2012 and beyond.

From a prospective landlord’s viewpoint, the current market still offers great opportunities, but anyone looking to invest in buy-to-let in 2012 must, as always, have a clear strategy, since it is not a ‘get rich quick’ scheme.
They need to ensure they buy property at the right price and identify the type of property
which people will want to rent from them both now and into the future.

For free, no obligation advice please do not hesitate to contact Belvoir Stoke-on-Trent.  Tel: 01782 478444   Email: stoke-on-trent@belvoirlettings.com

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