Here at Just Landlords, we often discuss how the property and private rental markets are inextricably linked, and how even the smallest changes in one can have a huge impact on the other. This is why we provide our readers with up to date information concerning both markets, as well as new changes in the social housing sector, which could also affect landlords’ businesses.
For some landlords, a keen interest in the property market was what led to them getting into the lettings business in the first place, however, for others this may not be the case. For example, accidental landlords may not know the first thing about the property or private rental markets, but this doesn’t mean they can’t start!
In this article, we look at how learning about the property market can not only improve your business, but also keep you one step ahead of your competitors in the future. Don’t forget, if you would like to know more about the current state of the private rental sector, our online blog posts contain easy to digest summaries that will get you up to speed.
At the end of the day, what most landlords want to know about the property and private rental markets is how they can take advantage of them in order to improve their income. Buying a property is normally a huge investment, and unless this investment pays off, some landlords could find themselves struggling to pay the mortgages on both their rental and personal properties. This is where keeping an eye on market values of properties is extremely important, as it means that you will know the best times to buy and sell your investments.
However, if you are new to learning about market values, then it is advisable that you think very carefully about selling or buying a property just because the market seems to be good at a certain point in time. Properties are a long-term investment, so you need to ensure that your decisions will be beneficial for years to come and not just a few months.
Those that have kept a keen eye on current issues surrounding the property market would have probably guessed new legislation would be brought into the private rental sector months before it was announced. By understanding the issues in both markets now, and looking into the preliminary suggestions MPs and other governing bodies made to solve them, you will sometimes be able to predict upcoming changes and prepare for them in advance.
For example, the issue of the housing crises was discussed in detail by both the media and politicians before it was officially announced that the Government had created a scheme to help more people buy their own properties. Those that kept up with this information would therefore be able to predict a decline in demand for private rental accommodation once the schemes first came into effect, and therefore plan their business affairs accordingly.
Expanding Your Offerings
As our previous section has shown, learning about the property market means that as a landlord, you will have a better chance of planning for the future. Not only does this mean knowing when to be more frugal, but also what type of property to invest in if you choose to expand your property portfolio. There are often news stories discussing how there is an increase in demand for properties in certain areas of the country and by keeping up with these stories, you will be able to make a more informed decision when making your next purchase.
Don’t forget that publications specialising in the property market also contain features concerning mortgages and landlord insurance policies that can make a huge difference to your business. When buying a property, the physical bricks and mortar is generally the most expensive one-off purchase, however, your mortgage and landlord insurance policy can really make a difference to your business in the long term.
If you want to know more about the property and private rental markets make sure you check back on the Just Landlords blog as well as our Facebook, Twitter and Google+ pages which, are updated on a regular basis.
- Housing Market. (2014). Retrieved from The Guardian website: https://www.theguardian.com/business/housingmarket
- 4 Changes in the UK Property Market. (2013). Retrieved from the Just Landlords website: https://www.justlandlords.co.uk/blog/4-changes-in-the-uk-property-market/
- Residential Property. (2014). Retrieved from the Royal Institution of Chartered Surveyors website: https://www.rics.org/uk/tag/residential-property/
Disclaimer: This article is for information only and is not official guidance, FCA approved, or legally precise. Just Landlords has used all reasonable care in compiling the information but make no warranty as to its accuracy. If you require information on landlord legislation or best practices please contact your legal representative. For details see our conditions.