Reeds Rains Property Blog

Property News from Reeds Rains

Reacroft's Return

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After a number of years working in the Trafford area of Manchester, we are delighted to welcome Glyn Reacroft back to Reeds Rains Sales & Lettings. He is bringing with him a wealth of experience, with over 30 years in the estate agency industry. Glyn is one of Reeds Rains 'Lettings Specialists' and given his history as a landlord over the past 23 years, along with a history in establishing rental business with his former employers, there is nobody better qualified in the local area to advise and help with your rental requirements.

It isn't just Reeds Rains that is welcoming Glyn back, he is returning to an area that is very familiar to him, his home town of Cheadle. His parents still live close to Kingsway School, where he himself attended when it was better known as Broadway. A keen sportsman, Glyn belonged to the Cheadle Lacrosse Club from a very early age and still turns out now and again to help out, however he admits it does take longer for him to recover nowadays.

"Knowing the area so well and given my own personal experience in renting out my own properties, I feel I can share advise and knowledge from all aspects of the rental market, something which I have found gives great comfort to new landlords I deal with." Glyn goes on to say "It can be a very daunting prospect for would be landlords who have heard horror stories, but with the back up of a great team at Reeds Rains, we have eased a number of clients apprehensions. Given that we managed over 7000 properties last year alone I honestly believe that we are the best placed agent in the local area to help let and manage any property.

Reeds Rains City Living Manchester's Hannah Gretton Takes A Look At Surveys

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Buying a property is one of the biggest commitments you will ever make, so it is essential to source a reliable survey in order to ensure your purchase is sound. In March's edition of Manchester's Urban Life magazine, Lettings Manager Hannah Gretton has shares expert advice on how to gain peace of mind and potentially save money when buying a home.

Reeds Rains City Living Manchester's Hannah Gretton Shares Advice on Finding Your Dream Home

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This year could be the ideal opportunity for you to find your perfect property, with government based schemes and increased lending bringing a hopeful outlook to 2013. In January's edition of Manchester's Urban Life magazine, Lettings Manager Hannah Gretton has some great advice on how to get started when looking for that dream move.

Reeds Rains City Living Manchester's Hannah Gretton Shares Advice on Auctions

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If you've been thinking of Buying or Selling a property, the option of house auctions is fast gaining interest. In the December edition of Manchester's Urban Life magazine, Reeds Rains City Living Manchester Lettings Manager Hannah Gretton ( regular contributor to their Ask the Expert property feature) explains the process of homes going under the hammer.  If you are interested in finding out more about our Reeds Rains Auction Services, please click here

 

Latest LSL Buy to Let Report: Rent Rises Slow, but October Sees Average Record of £744 Per Month

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Rent Rises Slow, but October sees record of £744 per month

  • Rents in England & Wales rise at slowest monthly rate since May

  • Average rents hit all time high of £744 per month 

  • Tenant arrears fall to lowest level since January 2011, at £265m

Tenants saw average rents rise by 0.4% in October, the slowest rate of increase since May, according to the latest Buy-to-Let Index report from LSL Property Services plc, which owns the UK’s largest lettings agent network, including Reeds Rains.

 

Despite the slowdown in rental inflation, the monthly increase represents double the size of the 0.2% increase seen in the same period last year. After seven months of rent rises, rents are 3.4% higher than at the same point last year, with the average rent in England and Wales at a new high of £744 per month.

 

In London and the South East rents continued to rise, albeit at slower rates of 0.9% and 0.7% respectively. Five regions saw rents fall in October, with the sharpest falls in Wales and the Midlands. Rents in Wales fell by 1.6%, while those in the East Midlands fell 1.8% – the first fall in this region since March.

 

On an annual basis, rents rose the fastest in London. They increased by 7% to £1,102 – breaking the £1,100 barrier for the first time. The South East saw the next highest rise, 3.2% higher than a year ago. Meanwhile after monthly falls, rents in both Wales and the East Midlands are lower than at this point last year – by  2.2% and 1.5% respectively.

 

David Newnes, Director of LSL Property Services comments: “Rents may be rising but the good news for tenants is that the rate of increase is at its lowest in five months. A combination of improved buyer activity and a seasonal slowdown has taken some of the heat out of the rental market as it enters the traditionally quieter final months of the year. However, despite the deceleration, the fact that monthly rents rose by twice the rate seen a year ago points to the underlying strength of tenant demand.”

 

Looking ahead, it’s difficult to see rents remaining stationary once the winter lull has passed. Admittedly, the sales market has shown signs of life in the last month, and the Funding for Lending Scheme seems to be acting as a catalyst for a modest improvement in the mortgage market. However, banks still need to set aside large sums of money for high LTV lending, so in the longer term the number of first time buyers won’t return to the level necessary to significantly undercut the strong demand for rental property.”

 

As a result of improving property prices in October, landlords saw an averagetotal annual return of 6.6% on a rental property in October, up from 5.9% in September. This represents an average return of £10,819 with rental income of £7,926 and a capital gain of £2,892.

 

If rental property prices maintain the same trend as the last three months, the average investor in England and Wales could expect to make a total annual return of 4.3% per property over the next 12 months – equivalent to £7,067 per property.[1]  The average yield on a rental property rose to 5.4%, from 5.3% in October 2011.

 

Newnes comments: “Landlords’ prospects now look even better on paper, with capital gains contributing to overall returns. But there are grounds for caution. With the long-term headwinds facing the housing market, there’s no guarantee prices will rocket upwards in the next few years, and steady rental income is crucial for an investor’s return – let alone to pay the mortgage. In this context, it’s even more important that landlords avoid void periods, and prospective investors who research the areas with the biggest rental demand before purchasing will do well.”

 

The total amount of rent late or unpaid fell to the lowest level since January 2011, with total arrears of £265m, down from £297m in September. This equates to 8.1% of all rent across England and Wales.

 

Newnes concludes: An improving economy and a resilient jobs market have helped tenants get on top of their rent. But we’ve also seen a change from landlords, who are cherry-picking the most financially robust tenants – especially for the most expensive properties. Property investors have become incredibly rigorous with their checks on prospective tenants, and are feeling the benefits.  

 

“Tenants, too, have cut down on spending as a necessity. Whether tenants can keep up this prudence over the festive season remains to be seen. 2013 will bring more austerity, and if rents rise further, arrears are unlikely to continue to fall.”

 

To read the full report including a regional breakdown click here

 

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