You may count yourself lucky if you are a homeowner as it recently came to light that the stark reality for younger generations is that it is becoming increasingly difficult to get on the UK property ladder.
The most recent report from economists at the accountancy firm PwC, suggests that over 50% of people under 40 in 2025 will be living in privately rented properties. The accumulation of rising house prices, which is at an average of 5% for 2015, plus the shortage of homes means ‘generation rent’ is at a peak with no sign of slowing down.
Due to the expected continual rise of property prices, particularly in preferred Property Moose investment areas (such as the North West and North East where growth was initially slow out of the recession), rental demand is only going to increase.
Furthermore, following the results by PwC, the Guardian spoke with some of its readers regarding the current frustrations potential house buyers are facing and sheer exasperation is apparent among their responses. Obvious reasons that caused such resentment were the unaffordability of mortgages, but one surprising development was the huge resentment they feel towards landlords and local letting agents who mistreat them.
This made us think of what we do to avoid such situations and work towards improving life for tenants who reside in Property Moose properties. The ways we go about this are:
- Property Inspection
Before even signing an option agreement with a Vendor, a member of the Investment Team along with an independent RICS surveyor will go to the property to ensure it is at a good, rentable standard.
- Renovation & Works
Following the inspection, if there are any negative comments from the review then we will take the appropriate steps to assure that the property is renovated to a high standard.
This is an extremely important part of the process as this can make the tenant search much easier, and also add value to the investment.
- Due diligence of rent
An essential factor when finding a tenant is ensuring we request a realistic rental figure when advertising for tenancy. We often use the figure that is suggested by the RICS surveyor but we also do our own DD by comparing with houses in the area and consulting local letting agents.
- Due diligence of local letting agents
Being a management agent can be a demanding job and we emphasise to the agents we use, what it means in particular to be a Property Moose management agent. When investing in a new area we will meet with many letting agents to ensure we have found what we believe to be the best option in that area.
- Build relationship with the letting agent
We meet with our management agents on a quarterly basis to catch up and review all current investments.
- Encourage building management and tenant relationships
The Investment Team at Property Moose has decades of experience in the property market so we know the importance of building a relationship with the tenant.
We have been extremely impressed with our management agents so far, most recently, one spent their Saturday afternoon at a property helping tenants with a plumbing issue! It is gestures like this that we hope improve tenants’ experience.
With the rental demand in the country growing, along with the scale of property purchases we are making, we want to make sure we are doing what we can to improve living standards for our tenants. By keeping the properties to a high standard to ensure they are in an appealing condition for tenants, they meet rental projections, and we find this often makes the sales process more efficient - leaving both investors and tenants happy.
Disclaimer and Legals
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your Capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).
Sources
1 http://www.pwc.co.uk/en_UK/uk/assets/pdf/ukeo-section3-housing-market-july-2015.pdf
2 https://uk.finance.yahoo.com/news/house-prices-expected-rise-5-110800714.html
3 http://www.theguardian.com/money/2015/jul/22/pwc-report-generation-rent-to-grow-over-next-decade
4 http://www.pwc.co.uk/en_UK/uk/assets/pdf/ukeo-section3-housing-market-july-2015.pdf
5 http://www.theguardian.com/uk-news/2015/jul/23/generation-rent-locked-out-of-housing-market
