The Price Is Right…?
Unless you have only just entered into the rental market, you are probably aware of the current rental climate. Low Supply vs High Demand. So how do landlords make the most of this market?...
This market trend has now been the case since summer 2021, and has continued until now. With properties sometimes not even reaching the open market before they are being bid on by tenants who have just missed out on the last property.
It is a difficult market for tenants, a good market for landlords. Achieved rents have increased over 30% since 2019.
With the mortgage interest rate rise and all of the new tax complications, landlords are equally trying to earn as much as possible on their rental as they can to make it all worthwhile.
The current market level for a property is what a tenant is prepared to pay. It is widely known by tenants that most properties at the moment go very quickly either at asking price or they have to enter into a bidding war.
However we have also found that overpricing your property, even in a strong market will make your property unseen, as people will not be searching for an overpriced property to begin with and if there is no competition, they will certainly not offer over asking price.
Landlords who price their properties (still at peak prices), but correctly, are reaping the benefits of bidding wars, best and final prices, and sometimes achieving over what they would have received if they overpriced their property in the first place.
The market has started to see an increase in property reductions over the last quarter, with landlords being told to ‘test’ a higher price and having to reduce after two weeks of it sitting on the market without any results. LonRes data shows that in Q2 of 2023, within Bloomsbury, Fitzrovia and Soho; 17.3% of flats currently available have seen a reduction in asking rents since they were first put on the market.
If you are not in any rush to find a tenant and you are happy to keep your property on the market for slightly longer to achieve a specific price, this may be the tactic for you. However if you are worried about a void, would like to have options when it comes to choosing a tenant, then pricing the property correctly when first entering the market is the right thing to do to get your property seen, even in a ‘peak’ market.
Contact us today to get an up to date and honest sales or rental value on your home to achieve amazing results.
Megan Cutforth
0207 113 1066