Record referrals points to healthy rental market
An appetite for investment in the rented sector
A property management firm has attracted a record number of new properties in what it regards as an indication of a continued appetite for investment in the sector.
DJ Alexander was offered 139 more properties in September than a year earlier, a 68% increase and the largest rise in number for any month since the firm began in 1982.
David Alexander, joint managing director, said: “We have been inundated with landlords approaching us to manage their property.
“In the near 40 years since I started the business, we have only twice before had just over 100 new properties in any month and this large increase is a welcome sign.”
He said the properties have come from other agents, from individuals shifting from the short-term lettings market, and also from new, first time landlords entering the market.
David Alexander: ‘last three months extremely positive’
“This highlights just how resilient the market is at the moment as landlords and investors remain confident in the medium to long term value of property and the private rented sector (PRS).”
Mr Alexander, who also owns UK-wide property management platform apropos, added: “A number of the new units that have come on to the market have already been snapped up, but we are being cautious in the advice we have given our landlords.
“Better to get a slightly lower rent and be let immediately than hold out for a higher figure that may never arrive.
“Rental prices are softening at the moment so it is vital to get excellent tenants in immediately securing the rent for the coming months which may see the market soften further.”
He concluded: “Although we continue to operate in uncertain times, we have found the last three months extremely positive.
“There remains a strong appetite for investment in the private rented sector [PRS] and there is a great flow of tenants into the market.
“It would seem that property remains a strong, central asset for investors and individuals and the PRS seems to be weathering the storm for the moment.
“But given the pace at which change happens you can never be entirely certain what is coming in the next six months, but we have been pleasantly surprised and delighted by the last quarter.”