The Richmond Magazine - February 2010
Susan Fitz-Gibbon, partner at Fitz-Gibbon Richmond, answers some big questions on the lettings market
Why is Adequate Insurance Vital for Tenants?
When it's cold outside, we're lured home by the prospect of cosy blankets, scented candles and a warming glass of wine. However, image a scenario in which tenants inadvertently spill red wind on a landlord's sofa, accidentally burn a hole in the carpet or ruin all the cushions and coverings. What happens then? All these 'accidents' have already occurred in landlord's properties this winter, but thankfully the tenants in question had adequate insurance and were covered for any permanent damage they had caused.
Sadly, thousands of others face costly bills because they are not given the best insurance advice by their agent. Many assume that accidents are covered by the landlord's buildings and contents insurance. In truth, however, 'accidental damage' is rarely covered by a landlord's policy.
Here at Fitz-Gibbon we ensure that everyone is protected. With 21 years of experience behind us, we are only too well aware that accidents happen. That is why we fully inform our tenants and require them to take adequate insurance cover as part of our terms and conditions. As a result, they are able to sit back and relax, while our landlords have complete peace of mind about every tenancy.
What is the lettings outlook for 2010?
Owing to the economic climate, 2009 was an unpredictable year for everyone in the industry. Whilst local tenants extended their tenancies, investor landlords had few properties in which to invest, as owner-occupiers didn't want to sell in a falling market. Yet as sales prices have started to move, it's already clear that the local lettings market will be buoyant in 2010. Buy-to-let investors have returned to the market and are taking advantage of low property prices, reduced fixed rates and the highest projected rental yields in years. Interest rates look set to rise by the end of 2010 and, with the retail price index already creeping up, rents will increase as tenancies are extended.
Fitz-Gibbon has hit the ground running. As the corporate market begins to flourish again, landlords will become more bullish and less willing to negotiate on reduced offers. We continue to expand our footprint towards Teddington and Kingston in response to market demands, and are already taking on instructions and letting within days to top tenants. In particular, we're seeing strong demand from professionals and postgraduates seeking studios and one- and two-bedroomed properties.
For further details about the local market call Susan Fitz-Gibbon on (020) 8892 8921.