The rental market is continuing to look strong for landlords as we head into summer, with Zoopla reporting a 7.8% increase in rental prices between March 2023 and March 2024.* Let’s explore how this increase benefits landlords and how a letting agent can help you increase rental prices correctly.

Benefits for landlords

Increased rental income

As inflation drives up expenses such as property taxes, maintenance, and insurance, landlords often adjust rental prices to maintain profitability and cover their investment costs. By making sure you don’t exceed inflation rates, you can remain competitive while still covering your expenses and improving your return on investment.

Financing property renovations

The additional rent income you earn from rental prices increasing can be allocated towards funding renovation projects aimed at enhancing the property’s overall value. These improvements could include upgrading appliances, improving energy efficiency, and modernising interior spaces, all of which can help you command higher rent prices and increase the property’s value to boost long-term profitability.

Mitigating financial risks

Increased rental prices also help you protect your finances and reduce the impact of unforeseen expenses, such as vacancy periods. Additionally, as you can allocate more funds to maintenance and repairs, you are less likely to encounter issues with your property in the future, further stabilising your income.

Why it’s important to set a realistic rental price

Tenant affordability

Although it may be tempting to significantly increase rent, it is important to keep any increases to a sensible level. Setting rental prices too high can outprice tenants and reduce the amount of interest in your property, potentially leading to costly vacancy periods. 

Tenant retention

Rental prices directly impact tenant satisfaction, so your current occupants are much more likely to stay in the rental property if they feel that they are receiving fair value for the rent they pay. If the rental price is too high, tenants could seek alternative housing options.

Market competition

An accurately priced rental property is a key component of remaining competitive in the market, as overpricing your property can deter potential tenants and lead to prolonged vacancy periods. Overall, setting a realistic rental price is essential to effectively navigate market competition, attract tenants, and optimise your property’s profitability.

How a letting agent can help you increase rent fairly

A letting agent can play a crucial role in helping you increase rent fairly by providing valuable market insights, professional guidance, and effective negotiation strategies. Using their expertise in the local rental market, letting agents can conduct in-depth analysis to guarantee that any proposed rent increase aligns with the current market conditions. 

Additionally, letting agents can advise you on the best timing and rate of rent adjustments to maximise rental income while remaining competitive and fair to tenants. By setting a realistic rental price that aligns with rental inflation, comparable rates in the area, and the property’s value, you can ensure that your property remains accessible and affordable for a broader range of tenants.

As we head into the summer months, the property market is continuing to bolster as an increase in market activity continues to benefit home movers. Let’s take a look at recent property market data and how the current market conditions benefit sellers and buyers alike.

Recent market data

According to Zoopla's house price index, there were 20% more properties for sale in March 2024 than the previous year.* There was also a 9% rise in sales agreed during this time period.*

This rise in market activity is partly due to an increase in the average working wage and an overall robust job market, both of which boost consumer confidence. In fact, confidence in personal finances has reached the highest level in more than two years, according to GFK's Consumer Confidence Barometer.** This made homeowners considerably more interested in buying a new home, therefore increasing market activity.

Benefits for buyers

More choice

An increase in market activity leads to a wider range of choices available for buyers to consider. This improved choice empowers buyers to explore various properties, compare features and prices, and ultimately make more informed decisions that align with their preferences and needs.

Price stability

The market remains well balanced as the demand for properties and the supply of homes for sale have equally increased. Because of this, prices are less likely to fluctuate, potentially making for a more stable investment. Increased market activity also helps to create a clearer picture of the true value of properties, further contributing to stable pricing.

More negotiating power

Due to increased confidence, buyers have the opportunity to be more assertive when negotiating a price for a property. Since the supply of properties is so high, buyers are less desperate to secure a particular property and can carefully consider their options.

More opportunity for investment

For those looking to invest in property, the increased supply increases their options massively. In a busy market, investors can buy a property, make renovations, and sell for a profit in a shorter timeframe.

Benefits for sellers

Increased demand

With more people in the market for a new home, sellers can command higher sale prices for their properties as buyers engage in bidding wars. By achieving a higher sale price, sellers can then look for a higher-value property than they previously considered possible.

Faster sales

The increased level of demand makes it easier for sellers to find potential buyers, which can lead to faster sales and less problematic property chains. Additionally, if a buyer is particularly interested in a property, they may be willing to pay a slightly higher price to secure a quick sale.

Flexible terms

Strong demand can give sellers the upper hand in negotiating certain terms. For example, if the seller needs to close the sale quickly, they can choose the buyer who is in the best position to complete the transaction as soon as possible.

Less pressure

In a balanced and active market, sellers may experience less pressure to accept lower offers or make compromises that they're uncomfortable with. They can feel confident that a more suitable buyer will soon show interest and make a better offer.

How an estate agent can help

Estate agents use their in-depth knowledge of the property market to assist buyers and sellers alike in taking advantage of summer 2024’s active market. They have access to a wide range of property listings and can help movers identify suitable properties that match their needs and preferences. They are also skilled negotiators who can secure favourable terms and prices while guiding movers through every step of the process.

Selling your home involves countless difficult decisions, and knowing which offer to accept is no exception. You might have asked yourself: What if the first offer is the best one? While achieving the highest possible price for your home is an important goal to keep in mind, there are several other factors that might come into play.

Here are some key considerations to help you make your decision.

Buying position

The term ‘buying position’ refers to the buyer's readiness to proceed with the sale. Therefore, factors such as being in a chain, having a mortgage agreement in principle, and being a cash buyer, all affect the buyer’s positioning. A first-time buyer, for example, might be in a great position to buy your house since they don’t have one to sell first.

If you’re hoping for a quick move with fewer complications, you should take buying position into consideration when comparing offers.

When the first offer comes in

The first offer is an important one for a multitude of reasons. You aren’t obligated to accept the first one that comes in (or any offers for that matter) but there may be circumstances in which you do accept the first offer made on your home. 

For example, if your home has been on the market for a long time without generating much interest, you might be more inclined to accept your first offer. Conversely, if you’re in need of a quick sale, you might accept the first offer in favour of waiting for more to come in. 

There are also some compelling reasons why you might not accept your first offer. For example, you might fear that the offer is too low and you could risk missing out on a better offer if you hold out. There’s no way to be certain of this, which is why it’s important to have an agent guiding you through these tough decisions.

What happens if I receive two or more offers on my home?

If your house draws in multiple offers, you could be well-positioned to sell it for a high price. If both offers are identical, you have two options:

1. You can accept the offer from the buyer who is in the best position to close the deal fast. This could be someone without a chain, or someone who has a mortgage deal in principle.
2. You can move to sealed bids. This is when your estate agent asks each party to put in writing the highest amount they are willing to pay for the property. The bids must then be sealed and sent back to your agent by a specified date.

Should I pick the highest offer?

Sometimes the highest offer is the right one to choose, after all, it makes logical sense to sell your home for the highest price possible. However, some sellers might choose a lower offer in favour of a better buying position. For example, a cash buyer might offer a lower amount in exchange for a less complicated sale. 

The same goes for first-time buyers, or those with a mortgage agreement in principle. If the seller places more value in a quick move, they might lean towards offers from these groups. 

Our experts aren’t here to tell you which offer to choose, but we can use our local market expertise and sharp negotiating skills to guide you towards the best outcome for your sale. Remember – it’s your home, so the choice is yours!

Searching for the right rental home is rarely a simple task, but throw family into the mix and you’ve got a seemingly endless list of wants and needs to consider. We’re proud to offer an extensive range of suitable properties for a variety of unique households. But if you’re unsure where to start, here are the key things you should look out for.

Community

The community surrounding your property is all the more important when you’re raising children. You’ll want a location that feels safe, with friendly neighbours and a warm community spirit. You can find out a bit more about the local community through online forums, checking the local crime rates, or even paying the place a visit before committing to finding a home.

Schools

Proximity to schools should sit high on your list of priorities if you have young children. Many schools have a catchment area, so you should start your research as early as possible. Catchment areas are calculated based on the distance to the school, but each school will calculate this differently. You will most likely need to directly contact your chosen school to find out more about their specific catchment area.

Pets

Pets are a huge part of many families, and if this is the case for you, you’ll need to look out for a pet-friendly rental home. If you are lucky enough to find one in your desired location, it’s important to prove that you’re a reliable pet owner from the offset as this may increase your chances of having your application accepted. You can do so by providing details about your pet such as their demeanour (are they quiet and friendly?), their vet records (are they flea’d and dewormed?), or even a solid reference from a previous landlord regarding you and your pet.  

Outdoor space

You may not need a huge garden for your family home, but you do need access to outdoor space. Whether it’s a balcony, a communal outdoor area, or a pretty nearby park, fresh air is vital for everyone in your household. 

Transport links

Whether you drive or not, it’s important to research the area’s transport links. You can find most of this information online, or you could ask questions during your viewing. Are the buses reliable? How close is the railway station? Are there any roads you should avoid on your commute?

If you plan on making use of the local public transport regularly, you can also find out the fastest and cheapest routes using Google maps and ticket apps.

Family-friendly fixtures

The fixtures and fittings inside your family home should cater to the practicalities of modern life, with a healthy balance of durability, safety, and convenience. This might include a large fridge and plenty of cupboard space, hardwood flooring, or a reliable washing machine with a large load capacity. Every family is unique, so draw up a list of wants and needs before you set off on your search.

When you’re on the move, it’s vital that you take care of the legal aspects of moving home but with so much to remember, it can get confusing at times. It can help to have the right property professionals in place so that you are not left waiting around.  

Is there a difference between conveyancers and solicitors?  

Often, the difference between solicitors and conveyancers comes down to their level of training, however both can achieve similar results. A conveyancing solicitor is a qualified lawyer whose expertise is in dealing with clients who buy and sell property. A solicitor will be trained in other aspects of the law, whereas a conveyancer specialises in the buying and selling of property. A solicitor will be able to help you with other legal matters if required, such as cohabiting agreements.  

What do conveyancers or solicitors do?  

Solicitors and conveyancers take care of the legal part of transferring a property from a seller to a buyer and this is called the conveyancing process. A solicitor or conveyancer can take care of the following:  

• Preparing contracts for the exchange of contracts and assisting in the negotiation of any details.
• Checking the land registry to define what is included in the sale.
• Taking care of local council matters such as land registry searches, water and drainage searches, environmental searches, and local authority searches
• Offer legal guidance
• Prepare the transfer of funds from the new owners to the seller

What does a surveyor do?  

A surveyor conducts a survey on a property by checking it for any defects or issues. They will inspect a house and carry out visual checks. Through doing this, they will produce a report on its condition and other basic information such as the type of property it is, when it was built, the number of rooms and the property’s EPC rating.  

More in-depth surveys

There are more in-depth levels of surveys, such as a HomeBuyers report, which checks things like the construction and condition of the property or potential issues that need further investigation. A Building Survey will check for structural elements and is useful if the property has had a high level of structural modification or a previous report has recommended further investigation.  

Who instructs the surveyor?

Homebuyers typically arrange a house survey. It’s worth noting that they are not a legal requirement but could save you thousands by discovering hidden issues, which could help in negotiations, and more often than not, they give you peace of mind that you won’t run into any nasty surprises.  

A house survey is different from a mortgage lender’s valuation  

It's worth noting that if you are buying with a mortgage, your mortgage provider will carry out a valuation. They do this to verify that the property is valued correctly. This is not the same as a home survey.  

Your agent can help  

Finding the right property professionals is not always easy. Good agents can often connect you with the right people, such as conveyancers or solicitors. When it comes to getting a mortgage, most now have in-house mortgage advisors. But the choice as to whether you use their services is entirely yours.  

With a rapid increase in rental inflation in recent years, the good news that the UK lettings market is becoming more stable for both landlords and tenants is welcome news to all ears. So why is this and what does it mean for landlords and tenants? 

Earnings growth of 6%*

According to figures released by the Office for National Statistics, annual growth in regular earnings was at 6% in February 2024.* And with rental inflation at its lowest in two years, renting has become a little more affordable. While no one is suggesting that renting is becoming cheaper, the market is a little less frantic without rapidly spiralling costs. Increased earnings and inflation are putting the cost of renting into perspective and make it more palatable. 

The economy is improving 

With the economy growing in the first quarter by 0.6%* of 2024, the economic outlook improved further as this year progressed. With lowering inflation as the Bank of England makes headway towards their target of 2%, slow, sure-footed steps of stability and improving conditions mean increased confidence in the lettings market. All of this helps to reduce the financial pressure on landlords and tenants. 

More choice for tenants 

There is more choice for tenants, with 11% more properties available to rent in Q1 of 2024 compared with last year.** It can be frustrating for tenants searching for a new home. With a little more choice as more affordable homes for rent enter the market, tenants have a better chance of finding a better home. Happy tenants make for a happier market as tenants settle down enjoying good homes. With fewer void periods (when rental properties are vacant), uncertainty is replaced with confidence for landlords. 

More opportunities for landlords 

While the market is in a better place, there is no doubt that if you are investing in the buy-to-let market, you need to watch your costs. Many landlords will be delighted to see the costs of materials and borrowing improve. The rental market might be stabilising, but the fact remains that there is a shortage of rental properties on the market. While rental inflation might be at its lowest in two years, average UK rental prices increased by 7.8%*** on last year. This presents more opportunities for landlords to invest in the buy-to-let market and is proof of the high level of demand in this sector.  

In summary 

The UK rental market is becoming more stable with improving affordability levels, which are important steps in the right direction for tenants and landlords. However, the reality is that this sector needs more landlords to meet the ever-growing demand for good homes. Using a local letting agent is still the most comprehensive way for tenants to enjoy better properties and for landlords to match their properties with tenants. Working together so that the standard of homes, and the renting and letting processes improve with the economy is high on the agenda for many, including the government. The Renters Reform Bill will also improve life for landlords and tenants, and with the guidance of a good agent, is something to embrace rather than fear.