As an experienced letting agent in the Poole and Bournemouth in the south of England, I am not getting worried by the stories of doom and gloom that the papers seem to love at the moment. Despite the worries of a pending recession, my belief is that 2008 is going to be a good year for the rental business. We are anticipating that prices for renting will increase and more people will be renting than ever before and for longer.
Why do I think this? Well, where mortgages were once cheaper than renting, we are now seeing the reverse; hence an increase in rental prices will naturally follow over the next few years while they play catch up. The UK Government also gives statistics of 16 million more people moving into Britain by the year 2025 – to put this into perspective, this is the size of London and these people will need to rent somewhere! Put those together with our own siblings not being able to afford to get onto the property market until their late twenties/early thirties, the prospect for the property lettings industry has never been so good!
We know for a lot of Landlords, they have struggled with increasing mortgage interest rates and are having to dip into their reserves to cover shortfalls, but if they could hold on just a little longer, we believe we will see the interest rate drop this year.
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