Rising rentals

Thu 10 Jan 2013

This autumn investors worldwide are wanting buy-to-let property in Richmond borough. Katie White, of Fitz-Gibbon St Margarets, reports.

Late summer has been busy this year with local demand for one-or two-bedroom flats high. And, as the mists of autumn kick in, things are metaphorically hotting up further still.

Investors are back, the corporate market is returning and many new landlords are looking towards specialist letting agents like Fitz-Gibbon to manage their portfolio of properties.

Many such landlords live overseas, often in the Middle East, Australia or the States. Fitz-Gibbon, for example, manages over 60% of its properties, with around 30% of those landlords residing abroad and using its property management services for a minimum of two years. In these circumstances, refurbishment frequently forms a significant part of the remit.

Currently, rental prices are robust. Whereas one-bedroom flats were achieving £1,000 per month a year ago, today they are considerably more impressive, fetching between £1,150 and £1,200 a month. Similarly, a two-bedroom property that would have achieved £1,350 can now earn up to £1,500 or £1,600 per month. As for three-bedroom homes, now letting for £2,000 per month, these would have made a more modest £1,800 a year ago.

Investors from all over the world realise the opportunities in the UK rental market. At Fitz-Gibbon, we recently assisted investors from Australia and Switzerland seeking guidance as to which properties would let quickly and generate the capital growth and yields they required.

Others may be looking for lettings to supplement pension funds, perhaps through the purchase of a new build, or want advice on the finishes and furnishings required for a successful let. In either case, a good letting agent can help.