Yorkshire Evening Post
Homes To Let- Friday 3rd October 2008
Credit Crunch leads to Rentals supply crisis.
As the credit crunch starts to bite deeper and repossessions of properties across the country start to affect Landlords nationwide, there has been a lettings phenomenon taking place in Leeds. Investors, who have been fortunate enough to ride the storm and hold on to their investments, have seen the demand for their rental properties dramatically increase. Properties which had previously experienced voids due to the apparent "oversupply" in Leeds, are now starting to be let and in some instances, potential tenants are bidding against each other to get the property they want and thus increasing their offers of rent to achieve this. Good news finally for the investors.
In 2002 Leeds city centre had very few blocks of brand new apartments and a 2 bedroom apartment in The Quays on Concordia Street would fetch up to £1250 per calendar month, without parking or a river view. Today, the same apartment is on the market at £800 per calendar month, a 36% decrease in rental income. Living in the city centre was certainly attractive at that time but the supply of apartments wasn't there which resulted in the higher rents being achieved. Those high levels of rents were not sustainable and now apartments in Leeds are fortunately far more affordable as the increase in supply has meant a greater selection of apartments with varying specifications for the end user to choose from.
The supply of apartments in Leeds has increased dramatically and the skyline has changed forever. This has given potential tenants a massive choice and competition has forced rents down over the past few years. However with the future supply of apartments being drastically cut for the foreseeable future, the demand for lettings has grown helped by the decline in affordability and lending for potential buyers who now choose to rent rather than buy for the time being. The student population in Leeds is increasing year on year and many of these can now afford to live in city centre apartments. Leeds continues to create new jobs and this also creates demand for rental properties. This means that as the supply of apartments starts to dwindle, most letting agents are suffering from a real shortage of properties for their ever-increasing database of potential tenants. This is great news for investor landlords who are likely to see shorter void periods for their properties.
The supply of properties is running out dramatically and many people who are looking to rent a property in the city centre, are struggling to find what they are looking for. Jordan Yorath, of Flats In Leeds, has some great advice for those looking to rent properties across Leeds today and over the next few weeks. " I would advise anyone who is looking to rent an apartment in the city centre, or a property in any suburban area, to make sure they follow 3 important guidelines. Firstly, make sure you arrange viewings for properties up to 3 weeks from the date you are looking to move in, the days are gone when you could look 2 months in advance and expect the property to be still available when you came back a few weeks later. The availability of properties to rent in Leeds changes daily so you need to move quickly and decisively. Secondly, when you have decided on a property, make a sensible offer if not the asking price as soon as possible. Those days of bartering over rents have gone as landlords now have tenants queuing up to take their properties; I have seen several cases over the last month where people have said that they will call back tomorrow to make a decision and when they do the property has been taken and they have had to start the whole viewing process again. Thirdly I would always recommend that you rent properties through a letting agent who is not only registered to a government approved tenancy deposit scheme but also registered with NALS or ARLA and has a proven track record of good customer care. On the whole, people who are renting properties have a far better knowledge of lettings than in previous years and understand the importance of a well managed property so they choose to deal with professional letting and management agencies such as Flats In Leeds."
Flats In Leeds have been securing some of the only brand new stock apartments left in Leeds direct from the developers who have decided for economic reasons to let their properties out and this week alone have agreed lets on 25 properties at The Chandlers on The Calls. We are now building a waiting list for those looking to rent at the brand new KW Linfoot development, Manor Mills. "Our availability list changes on a daily basis and the interest we have had for lettings has been phenomenal, our aim, all along, has been to achieve our 3 way win policy, which is providing our landlords with good quality tenants in the shortest timescale possible and with minimum voids, providing our tenants with good quality accommodation and getting them moved in and looked after as efficiently and effectively as possible and as a result building a successful business for Flats In Leeds. There are still quality properties being built and coming soon, such as the YOO designed Manor Mills, The Chandlers and the brand new Gateway development in Rothwell town centre where we have seen massive interest. "
Jordan, who is an Associate of Flats In Leeds comments on how the credit crunch has led to a rental supply crisis, "We have been letting at such a rate that we are running out of two bedroom apartments in the city centre, we are renting these types of property very quickly and potential tenants need to act fast".
Flats In Leeds, who won the Yorkshire Evening Post's Yorkshire's Finest Property Award for the Best Letting Agency website last year, are one of the leading letting and management companies in Leeds and are constantly taking on new stock across the city so why not visit their one stop property shop at www.flatsinleeds.com or call their offices on 0113 232 3252 to arrange viewings. If you are struggling to let your property or have recently invested in a property in Leeds and want to talk to a letting agent whom you can trust, Flats In Leeds will be happy to help you find a tenant.