Residential rents in Greater London have climbed steadily since 2008. Huge demand from those that cannot or will not buy has driven values ever higher. And with buy to let lending tighter and uncertainty over property prices deterring investors, the gap between prospective tenancies and supply of homes for rent has is set to widen further.
According to the latest survey from Move With Us, the property services company, rental prices are now at an average £2,270 per month in the capital.
This is some 134% higher than the typical let value in the rest of the UK.
And is this wasn’t unpalatable enough for tenants, for landlords it poses an equally bitter outcome, that of the commissions that they pay to lettings agents. Because as rents rise, so do the fees that rental agencies charge.
More often than not, High Street lettings agents will charge landlords a commission that is equivalent to one month’s rental. So this means that if you are a property owner letting a house or flat in London, you’ll pay well over £2000 per annum in rental fees. You’ll probably be contracted to pay the same each year in renewal costs even if the same tenant remains in situ too.
The irony of course, is that rents go up because demand is high. Which means that the job on a lettings estate agent is easier. Yet they receive higher earnings just when the market is in their favour.
Popping a few photos on Rightmove and writing out a receipt for rent in advance has never been so easy. Or as lucrative.
Thankfully, there is now an alternative.
www.eMoov.co.uk/lettings offer a low fee route to letting your property on Rightmove, Zoopla, Prime Location and FindaProperty, together with around 300 other UK property websites.
A home visit to provide photos and a floor plan is included. And all for a rather justifiable initial cost of just £249 plus vat. EPC’s, gas certificates, inventories and full management are no problem.
Then we’ll reference your new tenant and produce all the necessary documentation at their cost and without anything further for you to pay.
We won’t charge you renewal fees either. Ever.
The best ideas are always the simplest…