Calling all landlords! Have you noticed a distinct shortage of property in the private rental market? You may be seeing the effects of a rental crisis.
Luckily, the team of property investment experts at Mistoria Estate Agents are on hand to help you understand how it could be impacting your business.
What is the rental crisis?
If you’re a landlord on the lookout for your first or next investment property, it’s likely you’ve heard the term ‘rental crisis’ recently, but what does this actually mean and how has it come about?
Put simply, the rental crisis (also referred to as the housing crisis) means a general shortage of property on the buy-to-let (BTL) market.
There are three main factors that have contributed including a shortage of new builds, high interest rates, and rising demand from tenants.
With high interest rates, the rising cost of living, and greater demand for rental properties, landlords have widely increased their rental property prices across the UK. Consequently, renters (particularly those with low income) are finding themselves with no affordable housing options.
Similarly, landlords are being put off from investing in BTL properties due to the higher interest rates, exacerbating a shortage of housing in the private rental market.
With every property and investment type being impacted to some degree by this crisis and its multiple causes, we’re here to help!
Top tips for tackling rental crisis
As a landlord, you may be wondering how you can help both yourself and your tenants to get through this affordability crisis.
We have a few top tips that we recommend taking on board if you want to combat the consequences of this significant shortage of housing.
- Get to know your tenants
The first step to supporting renters through the rental crisis is to reach out to any of your existing tenants. With 38 per cent of private households currently relying on local housing allowance to help cover the cost of their rent, understanding more about your tenants financial situation can ensure you’re providing as much support as possible.
Creating a better relationship with your tenants can also encourage them to be more transparent, helping you to prepare in the event that they need to move properties or can’t cover the entirety of the rent.
- Support liberalising planning laws
In order to meet the rising demand for affordable housing, new homes need to be built. To accomplish this aim, it’s widely believed that planning laws and regulations will need to be reconsidered and more funding will need to be channelled into this area.
You can get involved with these initiatives and voice your opinion as a landlord on a local level by getting in touch with your local council and parliamentary representative.
- Consider bill-inclusive tenancies
One way you can make your property a more affordable and popular choice is to offer a bill-inclusive tenancy. While this does mean more responsibility on your behalf, you could protect your tenants from some of the additional rising costs of living (such as energy and water bills) by choosing a more favourable tariff or deal that may not be available to your tenants.
In turn, this can help you to increase your tenant retention and ensure your property isn’t left vacant and making no money for longer periods while you search for a new tenant.
- Research cost-of-living payments
While it’s important to look at all the Government-provided support available to yourself as a landlord, you should also explore any grants that are available to your tenants – especially those that they themselves may not be aware of.
In 2022, for example, there was a cost-of-living payment that was sent out automatically to those who are eligible.
Get in touch with Mistoria today!
If you’d like to find out more about tackling the rental crisis or the reasons behind the shortage of housing, feel free to get in touch with our expert team of property professionals.
Operating throughout the North West of England, we have in-depth knowledge regarding prime rental and lucrative property investment locations including Bolton, Cheadle Hulme, Worsley, Liverpool, and Salford.
Our experienced team (more than 100 years of invaluable experience, to be exact!) is composed of chartered accountants, qualified estate agents, and property investment experts, so you know you’re in safe hands when you choose Mistoria Estate Agents to help you invest in your first or next property.
To discuss your property investment requirements with a member of our team, please feel free to give us a call on 0800 500 3015. Alternatively, we also welcome enquiries submitted via email to email@example.com or sent in using our handy online contact form.