Guaranteed Rent in the rental sector is set to grow
Good news for London’s private landlords
- The number of British households in rented accommodation more than doubled in the first 14 years of this century
- The Royal Institution of Chartered Surveyors, who provided those figures, says another 1.8 million households will need somewhere to live by 2025
The City of London Corporation sees the bulk of that increase in renting as coming from London. By 2021, the Corporation expects the London population to have risen by 786,000.
That’s even more homes than it might suggest, because a trend towards smaller households means that the number of households will increase by 36% by 2031.
Private renting will have a large share in the housing growth. A quarter of all London’s rentals are now private sector and by 2025 that figure is expected to have increased to 37%. And tenants are changing.
Not so long ago, private renting was mostly short-term, and by students and young professional people.
Now there are far more families with children, many in the middle income bracket, and more older people.
The Greater London Authority said in 2012 that 20% of the growth in the private rental sector in the previous two years was families with children, and that more than 200,000 households were now in this category.
Brexit and the private rented market
These forecasts may well be on the low side, since the reports mentioned were all completed before the Brexit vote. Savills are only one of the property agents reporting that people have become more nervous about committing to purchase since the vote to leave the EU, and that the number of people seeking to rent has increased.
Small portfolios bring headaches of their own
Two thirds of private landlords in London own five or fewer properties. A small portfolio of rental properties has advantages – it’s a lot easier to decide what and where to buy, and to have a clear picture of your properties and their place in the market.
On the other hand, small portfolio landlords are frequently people with other jobs and other things to look after, and being a landlord brings with it two responsibilities that can be onerous:
- Repairs; and
- Credit control.
What Guaranteed rent in the rental sector brings to the party
If you’re the Peabody Trust, with 27,000 properties in London, that business of repairs and credit control is still there, but it isn’t a problem. They have people on call 24 hours a day, so if a tenant rings at two in the morning to say the roof’s leaking and there’s a thunderstorm, the landlord isn’t woken up.
They also have a network of subcontractors who can be called out to fix the problem. And, if rent is sometimes slow, they have a mechanism to deal with it.
None of that is true for the landlord with a small number of rental properties. But, if you sign with Assetgrove, you have what amounts to the same thing.
Assetgrove: peace of mind for the small and medium-sized landlord
Assetgrove takes away the two biggest problems that small and medium-sized landlords face. They guarantee your rental income for up to 5 years, come what may. If one tenant moves out, and the property remains empty for a couple of months, you still get your money.
And they take care of repairs – if anyone does need to telephone in the middle of the night because rain is coming through the roof, you won’t even know about it until later.
Assetgrove will do everything necessary to put things right. So, not only is the phone not going to ring just when you don’t want it to; you also get a reputation as a landlord whose tenants are looked after. Why should you want that? Because it helps get good tenants in the future.
Being the landlord of rented property will never be completely without hassle – but Assetgrove will take a lot of those hassles from you. Call us now. There’s no obligation, but you’ll almost certainly be glad you did. Most people are.