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Monthly archive for January 2019

Top Three Reasons People Rent Out Their Home

Top Three Reasons People Rent Out Their Home

Here at Letters Group we get a flurry of home buyers and sellers at this time of the year. We also get lots of home owners asking about the current rental market and if it is worth them renting out their property instead of selling it.

While everyone we speak to is different, there are some common reasons that people choose to rent out their home, instead of selling their home. We have put some of these most common reasons below for you, but if you are considering renting out your home, or are not sure if selling or renting is the best option for you then contact us directly. We would be happy to chat about your home, your goals and make recommendations for you.

  1. Always Wanted An Investment Property: Some people have always wanted to have an investment property and if they are looking at selling their home, then now is the time to consider taking this first step into owning an investment property. As a homeowner you will have gained a competitive loan on purchasing the house, offering better rates than you would get as an investor looking to buy an investment property. You can also trial renting out your home for a year or two, see how you get on, and make a more permanent decision from there?
  2. Want To Generate Additional Cash Flow: If you have lived in your home a few years it is likely you will paid down your mortgage balance a bit and will have got competitive loan terms. By renting out your home you will be able to increase your cash flow by a couple of hundred pounds each month, and in these uncertain economic times, this extra money can be extremely useful.
  3. Want A Security Blanket: Perhaps you are moving out of your home to move in with a partner, or purchasing a new home as you have moved with work? By keeping your home and moving into a new one, you have the security blanket and know that if it all goes wrong, you always have a property that you can go back to if the job doesn’t work out or the relationship fails.

While renting out your home can be a scary experience as you don’t know who is living in your property, you can work with letting agents in Peterborough, like the team here at Letters Group and we can manage your property for you.

13% On House Prices Expected By 2023

13% On House Prices Expected By 2023

A recent report from CBRE, one of the foremost property consultancies in the UK, has given an, unexpected by some people, relatively upbeat prediction of the housing market in Great Britain over the next 5 years.

We have put together some of the highlights of the research by CBRE together for you so you can quickly and easily see the research that is relevant to you, whether you are buying or selling a home, or renting / looking to rent your property.

  • CBRE forecasts a 1.8% growth in the average price of houses in 2019. While this may be a modest forecast, it is more optimistic that forecasts from other property experts. It is important to note that 2019 transactions volume is restricted because of the growing caution among property owners, buyers and lenders, along with a muted buy to let market.
  • The CBRE consultancy predicts that compound price growth will be up 13.1% by the end of 2023.
  • CBRE warn that while ‘Help to Buy’ schemes currently underpin the new build market, it is likely this will change after 2021 when only first time buyers will be eligible for these schemes.
  • CBRE feels that house prices are approaching the limit that current incomes and credit conditions can support. This means that the ability for buyers to bid up prices has now become, and will continue to be, limited. It is important to note that affordability and mortgage regulation will constrain the price growth of house prices.
  • Speaking on the lettings market, CBRE forecasts that rents will increase by 11.4% by the end of 2023. CBRE add that the demand for rental homes is expected in increase after a two year period, and this in turn will weaken tenant enquiries, more so from younger people in lower-earning brackets.
  • CBRE feel that biggest highlight of private rental landscapes is the growing ‘Build to Rent’ niche. This niche attracted £2.1 billion of investment in year to the end of the 3rd quarter in 2018. This is 51% higher than the same period in 2017. CBRE add that property investment is on a firm upwards trajectory and it is likely that the investment volumes in 2019 will exceed the total of 2018.

If you’d like to know more about the housing market and how it could affect you and your own property or home, then why not call us now. We make it our business to stay ahead of the latest news so we can make sure we help our customers get the most from buying, selling or renting a home in Peterborough.