Countless homes across the country have recently been plighted by flooding, with many privately owned and buy to let properties being left inhabitable or in need of thousands of pounds worth of restoration. However, even though these issues are extremely serious, they are only short term compared to the effects the flooding will have on the property and private rental markets in the future.
In order to find out more on how the recent flooding will affect landlords as well as homeowners in the next few months, PropertyQuoteDirect has been in touch with numerous estate and letting agents across the country for professional advice. Mike Kelly, from Runnymede Lettings in Runnymede, was just one agent kind enough to talk to us, and provided some very interesting insight into the property and private rental sectors.
“I think the after effects of the flooding in this area will last at least six months, maybe up to twelve,” said Mike. “In particular, three to four bedroom privately rented houses are now in high demand around here due to the amount of families that have had to leave their homes due to the flooding.” Runnymede, along with neighbouring towns such as Chertsey and Egham, have been in the news countless times recently due to the Thames breaking its banks, leaving many houses under several feet of water.
Mike continued: “The problem is that most tenancies are fixed at six months minimum, so even if these families’ homes are back to habitable states in a few months’ time they will still be tied into a contract for their private rental property.” The only good news is that even with the recent flooding in the area, Mike is still confident that property prices will not be too adversely affected, mainly due to their close proximity to Central London.
“Property prices are increasing around here at the moment, but that doesn’t mean they can’t go back down,” Mike added. “It’s therefore important for landlords to think about the market and the type of property they invest in before signing on the dotted line. Generally, three to four bedroom houses can produce greater yields than one to two bedroom properties; however it all depends on the market.”
However, things are very different near the Somerset Levels, where dozens of towns including Bridgwater have been hit by the worst flooding in years. Nick Puddy, from Saxons estate agents in
Bridgwater, even went so far to say: “All the houses that have been affected round here are now unsaleable – both individually owned and buy to let properties.”
“I think we are going to see very severe after effects on both the property and private rental markets for at least three to four months. Even if homeowners claim on their home or landlord insurance to restore their properties it is unlikely anyone will want to invest in them until measures are put into place to prevent future flooding.” Nick added that he has also seen a huge increase in the amount of people who have been affected by the flooding looking to rent properties while they try and decide what to do about their homes.
Discussing the future of the markets in the area, Nick said: “I think the property and private rental markets will soon be affected by the new power station being built in town, as more people will start to invest in properties closer to it. That, and the amount of rural areas that have been affected by the flooding, will probably lead to demand for properties in town increasing in the near future.”
Even though the long term consequences of the flooding on the property and private rental markets in Somerset differs from those closer to London, the fact of the matter is that they are both likely to see various changes over the next six months at the very least. As usual, PropertyQuoteDirect will keep readers in all areas of the country updated with any changes as and when they happen, so check back on our news section for future information.