Unless you are in hiding deep underground (and to be honest who could blame anyone for doing just that?!!), the cost of living crisis is something that we are hearing about almost hourly whether it’s on news bulletins, in newspapers or the debates between prospective candidates to become the next Prime Minister.
Yesterdays hike in interest rates, the biggest in 27 years, means that for many concerns about having somewhere actually to live will be added to the gloomy list of problems that already include brutal choices on whether to eat or to heat. No, I cant believe I have just written that in this day and age either.
To add further pain we are likely to see things get worse before they get better. Further rises in interest rates this autumn are looking more likely by the day as the Bank of England struggles to get to grips with inflation although many already fear that particular horse has bolted.
However, it’s about much more than fuel bills and the price of daily food items. It’s affecting renting property too.
As interest rates rise, mortgages get more costly to service and landlords are highly likely to pass this cost on to the tenant in hiking the rent. Indeed for many landlords gone are the days of making money and having a rental property is now a significant financial burden which is why many are leaving this arena while they can. For those that remain, and set against a background of rising mortgage costs and much higher maintenance costs, it is easy to see why rents have been rising.
Some websites such as Zoopla and Rightmove are reporting rent increases in England of somewhere between 15% and 20% in places which is much higher than the Office for National Statistics are reporting which is in the region of 2%.
Our view on the market is much more in line with the portals rather than the ONS which clearly has a huge effect on the market and is not likely to change any time soon.
So what is the answer?
In truth, there isn’t one. Well not an easy or straightforward one that’s for sure.
At PLG we constantly look at how we are dealing with each case and monitor every aspect of every transaction to look at what is working and what isn’t. Rental deals are taking longer to process and we are spending infinitely more time ensuring that our clients are chosen ahead of the plethora of other tenants we are competing with.
We’re looking at more innovative ways of sourcing properties and working ever closer with agents to ensure our client is near the, if not at the, top of the list when a new property is listed.
However, we cant do it alone and there are ways that other stakeholders can help make the process as smooth as it possibly can be. We have listed a few ideas here:
* Funds: It might seem obvious but ensuring that the right amount is immediately available is vital but also frequently overlooked. We’re not only looking at rental monies here but also funding the cost of adaptation works as well.
* Court Orders: Again an obvious one but we have had situations where a property has been found before a deputyship order is in place (not a deal breaker but its vital everyone knows this from the start of a search) or it is not written appropriately enough to allow the deputy to rent a property.
* The Brief: Do we actually know what we need? Has this been thought through from the outset? Again, this is something we look to pull together at the start of the search but very often additional information that arises later can have a big impact on the search as a whole.
* Accommodation Expert: Do we have one? Are they aware of a rental search? What are their thoughts on cost? What are their thoughts on rental adaptations? Again, obvious questions but often overlooked whilst everything else surrounding our clients is happening.
This is not an exhaustive list but a few ideas on what can be done to give us that edge which might just make the difference in securing that gem of a property.
Little did we think that following the rental rises that arose during the global pandemic we would be facing quite so quickly such a predicament as the current global cost of living crisis and we know that no one is immune.
As previously mentioned, things are probably going to worse on many fronts before they get better so it is absolutely vital we are all looking to seek advantages where we can.
At PLG we feel, however, that we are best placed to offer the best protection to those already renting. For those looking for properties we have the expertise and skills to not only find those special properties which can work for our clients, but also get the best deals over the line, even in this climate.
We always want to make sure that it pays off to have us on your client’s side.
Click here to get more information on how we can help you (https://plg.uk/about/)