According to the Valuation Office the average cost of rent in inner London hit £1,500 last Autumn with the most expensive areas being Kensington and Chelsea, however, with other figures suggesting that more landlords are choosing to sell because the market is more open, what is the shape of things to come for letting in London?
In 2009 94% of letting agents said that the landlords they worked with were renting their properties as they were unable to sell them; this year that figure dropped to 13%. This is good news for first time buyers but will inevitably lead to a change in the lettings market.
Is it the case that some owners deem it more profitable to sell rather than contend with rent free periods? If so then guaranteed rental income could persuade more owners to hold onto their properties for rental purposes.
At 59 days the average void period in London is almost two months meaning that the average loss of rental income is close to £3,000 per annum; a loss that could be eliminated by joining a guaranteed rent scheme.
If more landlords chose to enter into a guaranteed rent contract rental and sales markets will inevitably change as with more profitable rental properties landlords will be less likely to sell up.
As guaranteed rent schemes become more common place in London we also see the number of rent guarantee providers growing but each with different characteristics.
At Homebridge Housing we provide emergency housing for those whom are unintentionally and temporarily homeless. Generally they are victims of floods, fires, burglary and those whom are fleeing domestic violence as well as short term solutions for the corporate sector.
We work with public and private sector bodies to provide them with short term housing solutions, from the aforementioned homelessness to corporate employees on short term visits from abroad. Managed to a high standard and unlike regular letting agents we do not charge a fee for our service; simply tell us how much rental income you want to achieve for your property and let us do the work to guarantee your financial security with a low risk solution including guaranteed vacant possession at the end of the term, a feature most rent guarantee “schemes” cannot provide.
If you have heard about rent guarantee schemes in the past please read our articles “The truth about Guaranteed Rent Schemes” and “When does a Rent Guarantee Scheme become a Guaranteed Rent solution?” to help you understand how they have changed over time.
If you would like to know more about Guaranteed Rental income and how we can make it work for you then please contact us for more information and to ask any questions.