2009 has been a mixed bag for rentals. The beginning of the year was horrendous with a large number of notices being given by tenants due to affordability issues. This in turn led to unprecedented levels of rental properties being up for re-let. Many agents found themselves struggling to fill properties with between 20% and 25% of their lettings portfolio re-available at one time. Unfortunately, this contraction in the demand also led to reductions in the market rents achievable with many Landlords having to discount the asking rent on their properties by 10%-15% to help re-let the property quickly.

Although May to August has seen significantly higher levels of tenants wishing to rent, rental values remain low and are unlikely to increase much, if at all, during the rest of 2009. Whilst interest rates stay low, and therefore borrowing cheap, this drop in rents will not concern most Landlords too much. However, if the cost of the borrowing increases over the next six months, I would expect to see a good number of Landlords either looking to increase their rents or to sell their properties.

Our prediction for 2010 is that a large number of reluctant landlords who have been letting out their properties over the past 18 to 24 months (because they couldn’t sell), will put their properties back on the market in the Spring. With the expected increase in activity in the sales market, it is likely that many of these properties will sell next year and thereby reduce the supply of rental properties. This, in turn, should push the rental values up over the course of next year, though probably by less than they have come down!

As a final word, we would continue to recommend rental guarantee and legal expenses insurance for all Landlords in what is still an uncertain economic environment.

With property values at a low point, funding relatively cheap and interest rates on savings unattractive, it is not surprising that there is an increasing number of Buy to Let investors out in the market. Many registered in the first half of the year, but have put off buying until the second half. We are always happy to talk to potential Buy to Let investors about where and what to buy and our Landlord Guide includes a section specifically on this subject. To help further, however, the table shows approximate initial yields across the areas we cover, based on average rents and asking prices in August.

As you can see from the table, Amesbury consistently provides the highest rental yield within the local area.

For more information, call us on 01722 415141 and ask to speak to David Clayton. Alternatively, ask to book a time to come and see us at our next Buy to Let evening in our Salisbury Office on Tuesday 6th October.

Our First Time Buyers’ guide offers help and advice for those looking to get on the ladder and buy their first home. What follows below is a précis of the guide.

1) Define Your Buying Power

Before you start looking for a property speak to a mortgage consultant who advises on mortgage products across the whole of the market and find out from them what you can realistically afford to buy. Obtain a mortgage offer in principle.

2) Find the Right Property

Register with all the local Estate Agents and on Rightmove’s website search facility so that you automatically receive details of suitable properties which are new to the market.When
viewing properties ask the Estate Agent questions such as:
• How long has the property been on the market?
• What position are the owners in?
• What level of offer might the owners consider?
• What is included in the sale?
• Is the Agent aware of any problems with the property?

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60,000 homes are sold each year to fund Long Term Care. Don’t let yours be one of them!

Most retired married couples have worked hard all their lives, paid off their mortgage and now own their own home. If one needs to go into Long Term Care, as long as their spouse is still living at home, then the Local Authority cannot attack the value of their house.

The problem occurs after the first has died and the survivor then needs to go into Care. If the survivor now owns 100% of the house, the Local Authority can assess its value.

By changing the way Wills are worded and with the careful use of Trusts, we can create a situation in which the house is deemed valueless by the Local Authority and this valuable asset is completely protected.

To find out more, contact Ian Hunter of Quay Asset Management on 01 722 327427

Bassets has teamed up with the Salisbury Foodbank to launch a ‘Bring a Tin’ campaign to help feed the growing number of people facing short term crisis.

A crisis can crop up through many ways but the main ones are benefits delays, sickness and of course rising unemployment. The Trussell Trust’s foodbank network has fed 24,000 people across the UK in the last year – a 71% increase on the previous year.

Foodbanks work with frontline care professionals to identify people who have hit crisis point and provide people with three days emergency food, as well as support. For many, the foodbank is a lifeline.

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