Lettings market in South East off to a strong start in 2009

As the UK struggles with the effects of the recession, credit crunch and slow sales market, the lettings market in the South East at the start of 2009 is bucking the trend, according to Leaders, the UK’s largest independently owned letting specialist.

Says Leaders’ managing director, Paul Weller: “We are currently seeing high demand for rented accommodation along with a good choice of quality properties available. The start of the year is a traditionally busy time for lettings as many people move home, and we often find that January can be a good indicator of the year to come.

“Last January was exceptionally busy, as many were priced out of the property market and opted to rent until they could afford to buy – a trend that continued well into the latter part of the year. This January – following the onset of the economic crisis and significant house price falls – was even busier, with an average increase in lets of 7% across our regions. Our figures demonstrate that as the economy and housing market continue to struggle, renting has become more popular because of the flexibility it offers.”

There has also been a significant increase in landlord instructions, with Leaders taking on 35% more properties in January than the same time last year.

Of course, the lettings market is not immune to the wider economy. Tenants are currently very cost-conscious and looking for a bargain so landlords need to be aware of the importance of marketing their property at a realistic rent.

At the same time, because of exceptionally high demand for good quality flats and houses at the lower to middle end of the market, rents have held firm for these types of properties which are letting quickly.

Leaders’ advice to landlords at this time is to be realistic about the rent they are asking, particularly in the case of high value properties, and to ensure their property is of a good standard. Their advice to tenants looking for a flat or 2/3 bedroom house is to act quickly if they find a property they like because it is not likely to be available for long in the current market.

Leaders point out that, boom or bust, the letting market has the capacity to thrive: when the economy is doing well, people want the flexibility to move for work opportunities; when it is doing badly they prefer not to commit to a mortgage and the additional expenses of home ownership. Throw in the current issues of a credit crunch and falling house prices and it is clear why the lettings market is doing so well.

Says Paul: “Overall, we are very positive about 2009 as we expect the high demand for rented accommodation to continue in the face of both the slow sales market and the wider economic uncertainty.”