Happy New Year to all, and let's hope it's a prosperous one! I think we are all expecting an interesting year to say the least. We have the uncertainty over the future existence of the Euro, the death of Kim Jong Il and the potential for a new North Korean foreign policy, the Olympics and Paralympics taking place on our own door step, and perhaps most difficult of all, having to deal with the ever growing list of micro-celebrity reality TV shows!
Has 2011 shaped our 2012 before it has even taken place? Well, Thorgills made certain predictions that certainly followed up and look set to continue to have a knock on effect in to the New Year. For instance, rental prices would continue to rise! Perhaps this was a given, but stability, longevity and the eradication of void periods we felt would come from smaller rental increases at point of renewal, with existing quality tenants choosing to stay on. We also discussed the first rule of economics at the start of 2011, a shrinking supply would lead to increased demand. This has certainly played its part on the London Lettings market, with fewer landlords able to gain the necessary finance to increase their portfolios, forcing the prices of the limited properties available in London, up by as much as 30%. Thankfully, It would appear as though the reins are starting to loosen slightly. More mortgage products are being made available for would be landlords, which should hopefully lead to an increase in available properties for the ever growing list of tenants wishing to rent in London.
So what can we expect from 2012 that perhaps strikes us as 'different' and not your 'usual' start of the year predictions? Firstly we have some wonderful events to look forward to this year that should fill the entire country with pride; we have the Queen's Diamond Jubilee at the start of June creating a four day mini summer break. And of course, this year's main event is the London Olympic and Paralympic Games, taking place in July, August and September.
The Olympic Games has certainly led to an increase in enquiries from potential landlords considering cashing in on London's shortfall in accommodation. Whilst this looks a good idea on the surface, and Thorgills are actively advising landlords on the benefits of short term letting over long term, there are a number of factors to consider. Mainly being costs, required permissions and making sure all regulations are adhered to. Being a landlord is a profession that you must be willing to commit to, be it long term or short term. Risking your biggest asset for what looks like a 'quick buck' just isn't worth it. This may sound as though Thorgills are looking at short term Olympic lets negatively, we simply feel it is our responsibility to point out areas you may have overlooked, and of course would always advise speaking with us before taking any action.
The other big prediction for 2012 is that we will see an influx of foreign investors taking advantage of the weak pound and the apparent bullet proof London buy to let market. At this time rental properties in London are still in huge demand and we are speaking with more and more foreign investors who want to invest in an asset that offers both a strong yield and the potential of significant capital gain. Of course, we have to mention the fact that rental prices look as though they will continue to rise, even with the influx of foreign landlords and buy to let mortgages becoming more readily available. The level of tenants registering with Thorgills continues to rise and put blunty, properties simply don't look as though they can keep up.
All in all 2012 looks set to be a busy year for Thorgills and landlords alike, if you can get your hands on the properties we can let them for you. If you're a tenant make sure we are your first point of call as we continue to list more properties all over West London each month.Please remember we are voluntary members of both the National Landlords Association and the Property Ombudsman, so our work is always carried out to the highest standards. Thorgills advice and valuations are free so please do not hesitate to get in touch.