Following the official announcement made last month confirming the UK's exit from the European Union, we are now able to shift focus from speculation of what either outcome would bring onto speculation of what this now really means. Unfortunately, the most honest answer we can give is, despite what various ‘experts’ say, we won’t really know for some time. We of course have various thoughts and opinions shaped from experiences from previous ‘uncertain’ times, but we can’t give definitive outcomes, certainly not until the dust starts to settle over the coming months when we will be able to advise further.
For now, providing the changes haven’t impacted your position in terms of wanting to continue to be a Landlord and rent your property, our advice is to keep calm and carry on and let us do what we do best!
The market for lettings leading up to Brexit has been and still is strong with the amount of lets agreed by Living in London at the highest levels this year. People still need a place to live.
As an agency in London, this is not the first time we have handled uncertain times in the property industry. Speaking from experience, we understand some of the trends that the lettings market may see, which we wanted to take the opportunity to share with our landlords.
Tenants More Likely to Consolidate
As there are still many questions to be answered in regards to the economic conditions, such as employment levels, it is likely that tenants will rather remain in their current tenancy agreements rather than moving until they have more of an idea of how Brexit will impact them and they are more confident in their plans. Lettings applicants won’t be moving in and around London for jobs at the same frequency we saw before, so potentially more renewals can be expected.
Increased Supply on the Market
During the last few significant changes which slowed the property sales market, we saw more sellers becoming ‘accidental landlords’. Sellers who need to move for personal circumstances, but may not be able to sell their properties for the price they were hoping to achieve, may opt to let their properties until they can make a more confident introduction onto the market. Furthermore, there has been a huge influx of newly built rental properties on the market over the past few years which has further increased supply, especially in the SE16 and surrounding areas.
As above, if we do witness a falling number of tenants looking to rent and we are seeing an increased amount of rental properties coming to the market, we will advise our landlords on the best route to securing qualified tenants. Working with an agency you trust and has a proven record in maintaining high quality tenants is essential.
Keep Your Tenants Happy
If you have a good quality tenant occupying your property, take measures to keep them content, as should always be the case. This may be through increased attention to repairs and requests and perhaps even be more flexible with terms when it comes to renewals. Due to the uncertainty, committing to standard 12 month contracts may be more difficult for tenants, so making renewals as easy as possible as mentioned above will ensure protection of your investment.
Don’t Compromise on the Quality of Tenant
We have talked about keeping good tenants, but it also goes without saying that it is not worth the short-term gratification of agreeing to enter into a tenancy agreement if it requires accepting an applicant profile you aren’t comfortable with. A bit more time on the market may help bring a more qualified applicant to the table that will keep further complications down the line at bay. We strongly advise on never compromising on the profile of the tenant. It is much more advisable to consider offers where you have to undertake a few more requirements, a slightly lower rent, or a more flexible term than accept the wrong tenant with the wrong profile.
Do Your Due Diligence On Agencies
If you are represented by another agency for bringing your property back onto the market during the uncertain market conditions post-Brexit, be sure to do your due diligence into the type of candidates they place, how they vet their applicants placing offers and, most importantly, their referencing processes. Getting the tenant profile and terms right will help protect your investment in the long run and ensure minimal undue stress relating to changes in tenancies.
As a company of landlords ourselves, we appreciate that each scenario of property ownership and letting is unique. If you have any questions, please do not hesitate to call us on 020 7231 0002 or email me at firstname.lastname@example.org. Fundamentally, nothing has changed and we can continue to serve the remaining demand for living and moving to London with a personalised service.