In its recent market survey, the RICS found that first-time buyers in particular are in very short supply down to the large deposits required by lenders and the low availability of mortgage finance which continues to stifle market activity.
Rick Flay, Director at Belvoir, the leading letting agents in Sheffield, said: “As first-time buyers are finding themselves shut out of the buyers market, letting agents such as Belvoir Sheffield are finding that tenant demand continues to soar.
“This is fantastic for landlords as rental yields are increasing and void periods have dramatically decreased, making it an extremely buoyant time for landlords who are already in the buy-to-let sector.
“Belvoir predicts that property rents will increase between five and seven per-cent throughout 2011
and the number of private landlords in the UK will increase by a further 50 per-cent in the
next few years.”
As the buyers market remains frozen, research also suggests that one in three homeowners are now considering the prospect of becoming a ‘reluctant landlord’, the leading lettings agent in Sheffield are warning anyone new to residential lettings to be aware of the many pitfalls, including strict regulatory requirements, insurance considerations and the stringent tenant referencing and checking procedures required to protect landlords.
Rick, whose office on Campo Lane specialises in property to rent in Sheffield, added: “We are seeing an emerging trend in the market, with many home owners becoming reluctant landlords and taking on tenants for the very first time down to a variety of different reasons.
“It is important that homeowners considering renting out their property for the very first time take specialist advice to ensure that they are well aware of the current legislative issues and pitfalls, but providing that they do this, becoming a landlord will allow them to move on with their lives, whilst generating some much needed income.”
In addition, while the number of first time buyers able to get one foot on the proverbial ladder remains at an all time low due to the lack of mortgages readily available and increased deposits, Rick at Belvoir is recommending that for those with the money to spend, now really is the time to buy.
He added: “If you are a cash buyer or can get a mortgage I would advise you to buy now. There are some great property investment opportunities at the present time, but ensure that you talk to Belvoir first. Getting professional upfront advice is key to making a profit, ensuring that you buy in the right place at the right price. We are completely independent so talk to us before you talk to an estate agent.”
Belvoir Lettings Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances
For more information, please visit www.belvoirlettings.com/sheffield