Anyone who is considering becoming a letting agent may be interested in predictions made by one industry expert that the market in London is to move towards more long-term tenures.
According to Mariella Petralia from Felicity J Lord, the firm is seeing a rising number of tenants opt to remain in the same properties for up to three years and in some cases longer. It is thought that this trend is down to the fact that there is a shortage of affordable housing stock available.
Meanwhile, another factor that may benefit those seeking to start a letting agency concerns the fact that consumers are finding it more difficult in the wake of the banking crisis to leverage the finance needed to get a mortgage. Banks and building societies are demanding larger deposits, which is preventing many individuals from getting on to the housing ladder.
Commenting on her experiences in the industry, Ms Petralia said: “Rents in London have risen faster than any other part of the UK in the last year. Whilst they have showed signs of slowing down since October, the cost of renting is still rising annually at nearly twice the speed of the average salary and as such, tenants will need to dedicate a growing portion of their disposable income to the cost of accommodation.
“As a consequence, tenants are preferring to stay where they are for longer than ever before to avoid having to look for an affordable and available alternative.”
She added that her firm is also finding that this is suiting landlords, as it means they can enjoy greater security and there is less risk of them experiencing “expensive void periods”.
However, the specialist went on to note that there are still many individuals who are keen to sign up to 12-month rentals.
In general, now is seen as a good time for those thinking of becoming a letting agent because it seems as though the market will remain strong for some considerable time.