Too much demand...

Private Rented Sector Running Out of Capacity

74% of agents are reporting that demand is seriously outstripping supply. The number of agents who are reporting that their are more tenants than properties has hit a record level.

Recent surveys also show that that the period in which tenants are staying in there properties has increased to 19 months, as tenants give up trying to find a new property in such a competitive market.

The number of new tenancies signed up by agents has risen rapidly in a consistently upward trend since 2001. But this figure has remained consistent at 34 new tenants every month per branch throughout 2011 after record numbers of new renters entered the market in 2010.

Amy Wray from Applegate Lettings had this to say on the matter: "Our reserve lists are getting larger and larger, with more and more people competing for each property.

"We are also running out of appropriate properties to offer our prospective tenants. We receive phone calls everyday for people looking for properties to rent, but can't always offer them one."

Tim Hyatt, president of ARLA, said: “The UK cannot rely on the rental sector to support the housing market in perpetuity.

“The reality is that there is a finite amount of rental property, and unless both housing supply and mortgage availability improves, then renters will find that their options in the market are reduced.

So, if you've thought about offering a property for rent, but have been on the fence. Or if you're thinking it could be something you might do in the future, then don't delay any longer. Now is the perfect time for your property to be snapped up by some wonderful tenants.

Award Nomination!

Holmfirth based Applegate Lettings was set up by Amy Wray in 2010 because she was tired of letting companies that didn’t reply to messages, that didn’t inform her of what was going on. She decided she would become that letting agent. The one that lets her clients know exactly what is going on, that lets her clients know she is there for them whenever, whatever their needs are.
It is this commitment to her clients, and that commitment to her job that has got her the recognition among The Property Awards for Women 2011 committee, who have singled Amy out as one of the top 5 contenders for the Customer Service Award of the Year 2011.
Amy was whittled down into the top 5 contenders from well over 700 who were nominated around the country. She has now been invited to the awards show at Wembley Arena on the 3^rd November in the hope that she will be the one to receive the award. Karren Brady (Sir Alan Sugar’s assistant on The Apprentice) will be hosting the show and presenting the award to the winner.
Amy Wray is obviously very proud of being nominated for the award, and has this to say; ‘It is such a great privilege for such a small Huddersfield based company to be recognized for such a prestigious national award.’
This is a highly prestigious award that bodes extremely well for Applegate Lettings whose main focus is customer service. Customer service in this instance, doesn’t just mean doing what the customer wants, it really means going above and beyond for their customers. Applegate Lettings obtain 70% of their new business from referrals alone, which shows just how important good customer service is to their clients.
The rental market at the moment is more buoyant than ever, with more people deciding to rent first, rather than buy their first home. With competition so high, it is important that Applegate Lettings stay on top of their game, this award is proof that Applegate are doing exactly this.

Content to Rent

THE rental market currently stands at an unprecedented high level as prospective buyers turn towards the more flexible option of renting a property in these difficult economic times.

Currently the average first time buyer needs £28,770 for a deposit to secure a property. In 2000, that figure was £9,865. This inflation, and continuing worldwide economic uncertainty, means more and more people are abandoning plans to become homeowners and instead choosing to rent property. The aspiration to own your own home remains high, but there are signs that expectations may be moderating, especially among younger people.

Ian Potter, operations manager of the Association of Residential Letting Agents (ARLA), said: "Our research suggests that, while more and more people seem to be renting post-recession, for many this is through need rather than choice - a trend that will likely continue as long as the demand for homes outstrips supply.

"Further, with the average age to buy a first home now reported to be 35, it's also possible that renting will become the norm for more people than ever before.”

The number of loans for house purchase has more than halved between 2007 and 2010 making it far more difficult for the younger generation to get onto the property market. New figures show 67 per cent of private renting tenants are under the age of 35. According to Holmfirth-based Applegate Lettings, a large number of their clients were young adults looking for somewhere they can call ‘home’, rather than a short term let.

Amy Wray, managing director of Applegate Lettings said, “We have seen a significant increase in letting homes to younger people, who are excellent tenants, but just can’t afford to buy at this time. This has been the case for a large majority of homes in the last year.” Applegate currently have a wide range of properties in the Holme Valley and Huddersfield area for both families and single tenants seeking short and longer term rental homes. “Locally, the rental market has been extremely strong and this trend looks set to continue,” said Amy.

Renting certainly has its positive side – flexibility to move around at short notice, due to work or personal reasons or to ‘try’ an area before committing to it; freedom from problems such as negative equity as you are responsible for the rent and not monthly repayments on bigger loans or upkeep; cheaper insurance than a home owner, and the rent is usually less than mortgage payments.

According to Ian Potter of ARLA, “What is important for both 'reluctant tenants' and those who rent by choice, is to conduct thorough research before making a move. While there are many benefits to renting or letting a property, things can and do go wrong.”

Horror stories from those who use non industry-approved agents who operate without any indemnity insurance shows the need for would-be landlords and tenants to use agents they can be sure can provide the best for them.

Applegate Lettings, one of the few fully qualified ARLA accredited letting agents in the local area, are determined that clients should be fully satisfied with their service – and point to the fact that 65 per cent of their new business comes from referrals rather than advertising. Using such fully insured and industry-recognised agents brings with it a hassle-free quality service to its clients.

There are few more beautiful places to live than the Holme Valley, whether renting or buying a property. That perhaps is the one certainty in an era of financial and housing uncertainty.