Sometimes it feels as though there is only doom and gloom surrounding the property and letting markets. There are aspects which cause problems in these areas but it is important to know that there are positive aspects to the industry as well. This means that there is a lot for landlords to be pleased about this year and here are 5 reasons for mid-Somerset landlords to be cheerful in 2017.

1. There is a fall in competition

Let’s be honest, it isn’t easy being a landlord and with a lot of new legislation and rules to consider, it is becoming tougher. With the additional stamp duty charges, changes on tax, increased focus on energy requirements for rental property and other regulatory requirements which need to be met, you can see why some landlords are deciding to get out of the market while they can.

However, the demand for rental property isn’t going to go away, it is likely to increase, and this means that the scope for experienced and skilled landlords to achieve success will increase. If there is less competition and you show that you are willing to work hard and provide the best service, the landlords that stick around have a fantastic chance to prosper in the industry.

2. Development work

Landlords are boosted by development work and projects that improve the infrastructure of local areas. When local councils and Government spend money to enhance a local area, it draws attention, it draws demand and it should provide existing and new landlords with an opportunity to enhance their business.

An example of a development project that is taking shape in Somerset can be seen in Taunton. The area has been classed as one of the new Garden Towns in the UK, which should the area be seen as a major centre in the south west of England. It is hoped that there be strong financial support from the Garden Towns and Villages fund set up by the Government.

Anything which provides a boost to an area without asking the landlord to spend their money should be seen as a positive factor.

3. Continuing rises in property prices

While landlords often have to focus on short term matters, there is no denying that owning property is an investment opportunity that can pay off in the long term. Investing in property is seen as a smart move because of the physical nature of the asset but historically, there has been a rise in property prices that makes houses a smarter investment than stocks and shares. There is nothing to suggest that this will change for present day property owners, whether they are landlords or people living in the house they own.

4. Expected rise in rents

Linked with the possible fall in supply of rental options and various other factors impacting on the market is the fact that 2017 is expected to see a rise in rents.

5. Increased demand for rental property and lengthening tenancies

A very strong reason for landlords to look forward to 2017 is the fact that the level of demand for property is set to remain in place. This is a positive factor and with demand outstripping supply, there is a genuine chance for good landlords to achieve success in the industry.
This should be coupled with the fact that the market is showing a trend towards longer tenancy periods. A landlord with a good tenant should be looking to have them in place for as long as possible. After all, void tenancy periods harm a landlord and should be avoided wherever possible.

There is a wide range of opinions on the UK lettings market but for landlords in Somerset, there are many reasons to be cheerful in 2017.

About Tom Morgan

Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk

• Mail
|
• Web
|
• More Posts(119)

The first half of 2016 had more than enough going on to shape the property market. First of all, there was a marked rise in demand for property in Q1 thanks to the introduction of additional stamp duty charges coming into effect from April 2016. Landlords and investors looking to add to their portfolio were encouraged to buy homes before the close of March to save money.

This inevitably led to a fall in property sales in Q2 as savvy buyers had already concluded their property deals and plans for the year ahead. This fall then fed into the build-up to the EU Referendum vote and the uncertainty of that vote was always going to convince many people to hold off from buying property.

The falling pound impacted on the market as a while

In the immediate aftermath of the Brexit vote, the pound fell dramatically, reaching a three year low against the Euro in October of 2016. There was a further fall in January of 2017 as it was believed that comments made by PM May would lead to the UK leaving the single market. For the UK market as a whole, the fall in the value of the pound would lead to materials from abroad costing more and it made UK property more attractive to foreign investors. However, most of the interest in UK property from foreign investors occurs in London, so this is unlikely to impact the property market in mid Somerset.

Since the vote, the Bank of England has been proactive in supporting the economy. In August of 2016, it cut interest rates to 0.25% from 0.5%, which is clearly something that will impact on the property market and mortgages on the whole. However, the majority of landlords in mid Somerset, buy property without a mortgage, so this will not impact on these buyers. There is also a wide range of factors to consider in the offering of a mortgage to a person and there’s nothing to suggest that this change has had any impact on the mid Somerset property market.

The Somerset property market is robust enough to withstand external influence

While the full extent of Brexit on the UK property market (or the country as a whole) is yet to be determined, the fact that so many experts are now downplaying fears for the market is well worth considering. When it comes to Somerset, the nature of the market means that any impact that Brexit has would be diluted or minimised anyway. No matter what the economic impact on the country is, the key factor in the Somerset property market at the moment is that there aren’t enough homes. This is the case for people looking to buy their own home and it is the case for people looking to rent property.

This is the case across the country, so whether Brexit is able to have a big enough impact on demand for property is unlikely, but for the Somerset property market, 2017 looks set to be a year where more of the same occurs. This may not be the news that some people want to hear but with consistency on the horizon, this is positive news for most people in the local area.

About Tom Morgan

Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk

• Mail
|
• Web
|
• More Posts(119)