2020 has already started with a bang at NPP Residential! We’ve had triple the amount of property enquiries in the first 5 days of January than we had in December as a whole.
Tenants are setting new goals for the year which include moving in with partners, increasing their living space or treating themselves to the property with the south facing balcony that they’ve had their eye on. Sellers are motivated to off load their assets to free up finance for further opportunities and buyers are looking for quick completions to ensure they’re in their new home for Spring. Overall, it’s resulting in waves of activity across both sales and lettings.
Looking ahead, it’s likely we’ll see rents on the increase. A surge in quality stock completing across Manchester will provide tenants with a range of amenities, high end shared spaces and stunning furniture packs – of which tenants are happy to pay a premium for. Landlords of more mature stock will need to ensure their properties are freshened up in order to minimise voids.
Businesses are relocating their head offices to Manchester and leasing large areas of commercial space for expansion – resulting in increased employment opportunities for skilled professionals with high end salaries. Ultimately this will result in an influx of highly paid tenants entering the market looking for quality living accommodation close to their workspace.
Property owners looking to sell will see fast paced completions as motivated buyers enter the market after an uncertain 2019. The yearly ‘Spring surge’ will ensure sellers achieve strong offers as properties can be showcased better in the warmer weather and viewers can appreciate spaces in natural light. Price per sq ft in the city will be positively impacted by exciting development plans in transport and leisure.
2020 will certainly need to be the year that we actively trade out of any recession that we saw in the Brexit turmoil of 2019. Property professionals will need to ensure their positivity is translated into realistic offers and quick completions in order to keep the market buoyant and moving in the right direction.
If you’re thinking of selling or letting your property – get in touch today for a FREE valuation!
0161 639 0050
The busy world of Lettings is at an all time high and at NPP Sales & Lettings, our lettings department and Manchester itself is as busy as ever.
Home.co.uk reports 1051 new rental listings in the last 14 days within Manchester resulting in fierce competition between landlords to ensure their property is let quickly and for the correct price.
Throughout November we are currently averaging 2.2 viewings per let, which reflects our quality stock as well as our strict vetting procedure when it comes to registering tenants. We will ask if a tenant is in full time employment, what their current living situation is, and when they are looking to move. By ensuring our viewers are suitable we can avoid time wasters and secure quicker lets.
The average age of our tenants in October was 35 years old earning an average wage of £30,000 per year. The average length of tenancy in the North West for October, was 8 months (Goodlord.co.uk) but at NPP Sales & Lettings our average tenancy length is 12 months as we understand the detrimental effect a void period can have on a Landlord’s investment. We also attract tenants who wish to make their rental property more like a home and settle long term into their property. Our inspection reports showed an average score of excellent across the board resulting in happy tenants and happy landlords.
Home.co.uk currently reports the average market rent in Manchester as being approximately £995 PCM. With an influx of 1 bedroom apartments across the city this is a healthy ROI for investors. At NPP Sales & Lettings our average rent for November’s new move ins is £1275 which reflects our excellent track record of achieving solid rents for our landlord clients.
December will see our record letting figures slightly tail off as our target tenants bunker down for the festive period. But in previous years we have seen a spike in lets in January – so it’s important if you’re considering listing your rental property to ensure you speak to your agent now in preparation.
On 1st June 2019 landlords and letting agents in England will be prohibited from charging fees to tenants.
Great news for tenants who can now happily hunt for their new home without the added pressure of sourcing additional funds for fees. Not so great news for Landlords who may find their fee is increased to counteract the loss of revenue.
There have been murmurs of increasing rents to counteract the ban, although this is doubtful – and something that only occurred in 2% of rental properties in Scotland when they introduced the ban in 2012.
Are you a Landlord?
Be sure your agent is transparent with their fee charging process.
Try to lock down a fixed fee period so you can be sure the fee isn’t increased from one month to the next as the agent understands how the loss impacts them.
Discuss the level of service you want from them – it may well be most cost effective to secure full management than just a let only offering.
Your agent may suggest a rent review but ensure this is line with market rents – pricing your property out of the market will just increase voids.
Are you a Tenant?
Check you are not being charged for anything that could be classed as an “agency fee” – rather than a product you are purchasing. For example you may need to purchase tenants content insurance from the agent which is a charge that is allowed. However a fee for a tenancy agreement or a reference is not.
Make sure the deposit that the agent is requesting is capped at 6 weeks
Be sure to carefully read your tenancy agreement for any associated costs during the course of the tenancy. For example tenancy amendments fees are capped at £50 but are allowed if you need to change items such as swapping tenants.
NPP Lettings are offering 7% fixed management fees for their landlord clients. For a free portfolio consultation or to find out how the fee ban could affect you, click here.
Tel: 0161 639 0050