We are now in the last quarter of 2022 and the demand for rental properties in the Weybridge, Cobham, Walton and Esher areas has remained at an all-time high and probably the highest we have seen for some years.
The effect of huge tenant demand combined with a shortage of properties has resulted in pent-up demand and big increases in rental figures. We are experiencing continuous enquiries from Relocation Agents searching at all levels of rental for their clients, many of whom are already in the UK and housed in temporary accommodation.
In many cases, properties are being let within hours of coming to the market and frequently going for, over the asking price. Applicants know they need to come forward with their best and final offers to avoid disappointment; it is still very much a landlords market.
We are still seeing demand from local applicants who have exchanged contracts on the sale of their properties and wish to rent for a year or two whilst watching the sales market before considering a purchase again.
As economic conditions change it is difficult to predict whether rental stock levels will increase over time to appease the shortage. With rising mortgage interest rates it may well be that the demand to purchase a property slows down with those vendors who have to sell, considering the rental option and we see the return of the “Accidental Landlords”. There is no doubt that the surging cost of living together with rising interest rates will result in more prospective purchasers looking to rent which may well depress the demand for sales. Many of those non-corporate tenants who are currently in the rental property whilst they consider a purchase is more than likely going to renew at the end of their term and this trend is already becoming apparent with very little stock being re-marketed.”
One thing we continue to see is that presentation remains key and properties that are presented well with fresh neutral décor and modern kitchens and bathrooms are the first to go and achieve much higher markups. We are continuing to find that the presentation is accounting for more than size and location in applicants' decision-making. With this in mind, we would recommend keeping your rental properties in top condition in order to keep up with the market demands and it is sensible to consider updates and refurbishment works between tenancies. If you would like to talk to us about the refurbishment services APW can offer please do get in touch with us.