Can Rent Guarantee Schemes Change the London Lettings Market

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According to the Valuation Office the average cost of rent in inner London hit £1,500 last Autumn with the most expensive areas being Kensington and Chelsea, however, with other figures suggesting that more landlords are choosing to sell because the market is more open, what is the shape of things to come for letting in London?

London, United Kingdom, May 7, 2014 - (PressReleasePoint) - In 2009 94% of letting agents said that the landlords they worked with were renting their properties as they were unable to sell them; this year that figure dropped to 13%. This is good news for first time buyers but will inevitably lead to a change in the lettings market.

Is it the case that some owners deem it more profitable to sell rather than contend with rent free periods? If so then guaranteed rental income could persuade more owners to hold onto their properties for rental purposes.
At 59 days the average void period in London is almost two months meaning that the average loss of rental income is close to £3,000 per annum; a loss that could be eliminated by joining a guaranteed rent scheme.
If more landlords chose to enter into a guaranteed rent contract rental and sales markets will inevitably change as with more profitable rental properties landlords will be less likely to sell up.
As guaranteed rent schemes become more common place in London the number of rent guarantee providers is also growing but each with different characteristics.
Homebridge Housing provide emergency housing for those whom are unintentionally and temporarily homeless. Generally they are victims of floods, fires, burglary and those whom are fleeing domestic violence as well as short term solutions for the corporate sector.
Homebridge work with public and private sector bodies to provide them with short term housing solutions, from the aforementioned homelessness to corporate employees on short term visits from abroad. Managed to a high standard and unlike regular letting agents Homebridge do not charge a fee for their service; the landlord must simply tell them how much rental income they want to achieve for their properties and let them do the work to guarantee landlords financial security; a low risk solution including guaranteed vacant possession at the end of the term, a feature most rent guarantee “schemes” cannot provide.
Heard about rent guarantee schemes in the past and want to know more? Please read articles “The truth about Guaranteed Rent Schemes” and “When does a Rent Guarantee Scheme become a Guaranteed Rent solution?” for a better understanding of how they have changed over time.
To find out more about Guaranteed Rental income and how Homebridge can make it work for landlords then please contact them for more information and to ask any questions.

Property, lettings, landlords, income, London

Press Contact:
Graham Colliss

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