The Bath rental market has been extremely busy, yet that doesn’t mean there hasn’t been a long-term impact caused by the Covid-19 pandemic. As a landlord, you may be wondering what the year has in store and what may impact your plans and goals. You may be looking to slim down your property portfolio due to increasing regulation, or expand it due to demand in the private rental sector. Before you make any big decisions, it may be beneficial to understand what 2022 could have in store for Bath landlords.
Should you buy or sell?
According to a Covid-19 impact report by Simply Business, only 7 per cent of landlords plan to expand their portfolio in the next few months. This is within a rental market that is seeing rising rental prices and increasing demand. Bath is a city that offers the best of both worlds, which is no doubt why it has retained its popularity as a wonderful place to live. The city is vibrant and yet still retains the feel of a town with its boutique stores and picturesque streets. Countryside is in abundance and only a short distance away. It can meet most people’s needs in terms of lifestyle, which is why, as a city, we have not seen people move away but, in fact, more renters moving into the area.
“Demand for rental properties is currently the highest it has EVER been. This demand has, as you would expect, pushed up rental prices. These two factors alone are why we are supporting our landlords to expand their portfolios and encouraging new investors into the market,” expresses Nicola Wilkes, The Apartment Company’s Lettings and Property Investment Manager. Nicola’s expertise in thoroughly understanding the right properties for the future rental market has seen many of our landlords successfully expand their portfolios. To find out more, call Nicola on 01225 303870.
What will happen to rental prices?
Let’s begin with what is predicted to happen nationally: “2021 ended with an imbalance between supply and demand, and this is a trend that we are expecting to continue into 2022. This trend will almost certainly lead to a continuation of rental price growth as the year develops,” said Andy Halstead, Chief Executive Officer at HomeLet & Let Alliance.
We can certainly confirm that demand has not ceased for rental apartments in Bath; as soon as we list them we are inundated with requests for viewings, and they are quickly let. This demand has, too, seen the price of private rentals rise, and there does not seem to be any sign of this ceasing soon. But what is essential is that, if you are looking to expand your portfolio, you choose a property that will be attractive to tenants in all markets, and you can cover your costs should rental prices start to fall in the future.
Lets with pets
According to the Pet Food Manufacturers Association, a total of 3.2 million households in the UK have acquired a pet since the start of the pandemic. Whilst the majority of us were working from home it seemed the ideal time to purchase or adopt a pet to keep us company. Now that working from home is decreasing, sadly, animal charities are seeing a huge increase in lockdown pets being left in their care.
Rightmove revealed in August last year that tenant demand for pet-friendly homes was 120 per cent higher in July 2021 compared with the same month in 2020. We, too, have seen an increase in requests for pet-friendly apartments, but sadly, in Bath, due to covenants and apartment regulations, we rarely have an apartment that will allow a pet. This, we know, increases the number of prospective tenants who are desperately seeking a home allowing a pet; we are working with landlords and if it is at all possible to offer ‘lets for pets’ on any of our apartments, we will do so.
It keeps evolving
As with all property markets, nothing is absolutely certain, which is why it is essential that you have plans in place for any unexpected events that may arise, like a pandemic, for example. We would encourage all new and experienced landlords to have a conversation with Nicola, as she can help you to protect your portfolio and make sure you are in a strong position, not just this year but also in the years to come.