The number of property investors investing in the buy-to-let sector has continued to increase in recent years as more people look to augment their pensions and achieve better returns than those available in low interest savings accounts.
Investing in buy-to-let can prove an excellent way to make money. But many people appreciate that becoming a landlord or expanding a property portfolio comes with added responsibility.
Effective property assistance is essential, but can be time consuming especially for part-time or temporary landlords. A lack of professional organisation can leave some tenants paying high rental prices for poor quality housing and an inadequate property management service.
But times are changing and fewer tenants are now prepared to put up with bad housing conditions or poorly managed properties, especially in light of record high rents, with the latest rental data from LSL Property Services showing that the average cost of renting a home in England and Wales stood at £736 in March, up 0.5 per cent month on month, led by gains in London, where rents increased to a new average high of £1,106 a month, following a 1.3 per cent month on month increase.
“As rents continue upwards it is no surprise that more tenants are now demanding better quality homes that are clean and presented in good order,” said Adam Feather, Head ofcentral London property management firm, Robert Anthony.
With many more people now living in rented accommodation, there isadded pressure on the private rental sector to supply better quality housing and an improved letting experience, accordingto leading letting agents Napier Watt.
A company spokesperson commented: “The vast majority of tenants, particularly professional tenants in the English capital, generally prefer a professionally managed property. They like the third party intermediary between them and their landlord. Also professionally managed properties have access to 24 hour services which may not be available when a landlord manages the property themselves.”
Professional property management services are proving particularly popular in and around central London, such as in Marylebone, where investors are actively buying properties, thanks to attractive rental returns and good prospects for future capital growth, according to various Marylebone estate agents, owed in part to a surge in local rental values.
Fresh research from London Central Portfolio (LCP) goes a long way to explaining why more people are actively buying property in Marylebone.
The report shows that that, on average, Marylebone saw the largest rental increase of around 10 per cent over the past year, as its buzzy atmosphere and convenient links to Canary Wharf and Heathrow dominated tenant priorities. Marylebone is now catching up with the internationally favoured areas, achieving average weekly rents of 96 pence per square foot.
London Central Portfolio’s CEO, Naomi Heaton said: “Capital values continue to increase strongly as buyer demand outstrips supply. This is both due to prime centralLondon continuing to attract global wealth, whilst existing owners are not motivated to sell and divest of their best performing assets.”
With many signs showing that rents and capital values in the heart of the capital are likely to rise further, demand from investors for homes in prime central London will undoubtedly continue to grow, placing further upward pressure on property management services in the process.
james forbes talks to Marylebone Estate Agents and finds that many people actively Buying Property in Marylebone for investment purposes are opting to hire the services of Central London Property Management firms.