With everyone talking about Brexit, it’s understandable why London landlords might be wary about the knock-on effects on their property income. But while no one knows what the future will bring, here’s why now could be just the right time to rent out your London home.
Right now, it’s a challenging time for people trying to sell property in London. Rightmove’s November 2018 House Price Index reported that inner London asking prices are down 2.5% year-on-year. With volatile financial markets and political uncertainty in the air, it’s no surprise why homeowners are choosing to hold onto their properties, with a 26% annual drop in new seller numbers for homes in zone 1. Looking further ahead, Savills’ five-year forecast predicts London house price growth of just 4.5% by 2023, and if you want the really worst case scenario, Bank of England Governor Mark Carney says a no-deal Brexit could hit UK house prices by as much as 35%. So yes, the sales market is tough, but here’s the good news: there are plenty of reasons to believe that 2019 could be a great time to rent out your London home.
It’s worth remembering that while there might be a big freeze when it comes to London property sales, it’s a different picture in the booming rental market. Average paid rents went up by 1.9% in the third quarter of 2018, according to the Centre for London’s latest London Intelligence Report. And it’s safe to say that whatever the politicians decide, there’ll be no shortage of professionals looking to rent in London, which will remain the world’s most buzzing, vibrant and dynamic capital city.
While it’s a tough time for London landlords looking to offload their properties, there’s another way to protect your home investment. London Shared provides stability and peace of mind for landlords who want a reliable rental income come rain or shine. We keep things simple: the rent we agree at the start of the tenancy will remain the same for the length of your contract, so even if your property lies empty, you’ll still get a guaranteed rent from us. Effectively we become your tenant, so if the rooms aren’t filled it’s our problem — not yours. With our fixed term commercial contracts (usually between 3 and 5 years) London Shared helps to secure your home investment for as long as you need. It’s no wonder why 96% of landlords choose to renew with us.
Of course, none of us can really predict how Brexit will affect the economy in years to come. But whatever the ups and downs, when you choose London Shared you’ll have the security of knowing your property is being taken care of. Find out more about how London Shared can benefit landlords like you.
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Sources:
https://www.bbc.co.uk/news/business-45516678