Sali's Market Thoughts
Rising rents on investment property?
This morning - Friday 16th September 2011 I was listening to the radio and was most interested to hear that the LSL Buy - to - Let index showed that rents rose 1.2% in August. They put this down to graduates looking for rented accommodation and students returning to Uni.
At Chelton Brown we have witnessed the increase, but we put it down to lack of supply and an increase in demand. However the demand we saw was from professionals relocating. We let six properties to an engineering company, bringing a management team in to work on a new contract, which is fantastic for us and great for the area.
We also feel that the quality of property that is now available has helped us to secure higher rents. In fact we find than unless a property is in good order, it may not let at all unless the rent is reduced. The tenants that are looking are willing to pay the higher rents, but they do require a high spec property in return.
This is all good news for landlords, nobody minds investing in a property if they get an increased return.
