Financial markets are in for a bumpy ride. The consequences of the current economic climate are affecting the interest rates, with the knock-on effect being the monthly mortgage payments raising with each payment. Moreover, the Bank of England raised rates to their current level of 2.25 percent.
In response to the market volatility, the banks have withdrawn more than 1000 mortgage deals, bringing more turmoil to the already unstable present.
While landlords are now considering selling their properties Chris Norris (Director of Policy & Campaigns at the NRLA) is advising to “Keep Calm. No one is sure what is going to happen but take this opportunity to consider your future plans.” The possibility being that landlords could miss out on the increased rental return.
HOW MUCH RENT COULD MY PROPERTY ACHEIVE
If you are one of those who have decided to keep renting or to put your property up for rent, you are probably wondering how much rent could you achieve. It used to be easier to come up with an amount, however given the current circumstances, it is increasingly difficult to position yourself in the correct bracket and ask for an amount that truly reflects your property.
At this point it is very important to do your research and use an experienced letting agent in order to mitigate the risk of fraudulent appraisals. And while it is normal to let yourself be impressed by the highest valuation, you have to ask yourself “Is it the correct one?”
BE CURRENT WITH YOUR ASKING PRICE
Unfortunately, in order to gain more business, many valuers would feel the need to be too optimistic in their recommendation, paining an unreal picture and as a consequence struggle to rent out the property. This will in turn cause more financial loss to the landlord.
It is true that when it comes to the letting market, the supply does not meet the demand, and this naturally resolves in increased rent.
In over 60 years of letting and managing properties, Kings has seen it all: Sunny days as well as turmoil. Although we are not easily shaken by the usual fluctuations and dramatic effects that impact the markets, we must admit that now more than ever, are extremely aware of the precision needed when conducting a valuation.
WHAT TO CONSIDER WHEN CONDUCTING A VALUATION:
There are many key elements that must be taken under consideration before reaching the correct rental amount when letting your property.
- The potential Return On Investment (ROI) is one of them. For this we take into account any expenses, including mortgage fees, repairs, void periods and so on.
- Another important aspect is the property’s features, size and other related factors such as property’s age, location, furnishings & appliances. All these can greatly impact the overall maintenance cost and the appeal.
- Our valuation will always be based on the latest market trends, demand and our experience of letting other similar properties in the same area.
It might be a difficult process to undertake, but the good news is that every property, no matter how new, quirky or small can find it’s perfect tenant as long as the rent asked reflects on it’s the true value.
Are you interested to find out how much your property is worth on the letting market?
Find out today. Contact us for a comprehensive valuation and let’s discuss your option.
KINGS LETTINGS, 103 HIGH STREET, MAIDENHEAD, BERKSHIRE, SL6 1JX
Lettings and property management offices in London, Reading, Maidenhead, Staines & Windsor.
T: +44 (0)16 2863 2188 | E: MAIDENHEAD@KINGS-LETTINGS.CO.UK
