In order to stay ahead of the game landlords need to keep a keen eye on the property market as it enables them to buy and sell properties at opportune times. For instance, a number of landlords started expanding their property portfolios a few years ago when demand began to increase, and now most of these landlords are making a considerable amount of income each and every month. However, it’s not easy knowing where and when to buy property in the UK, especially as the property and private rental markets are want to rise and fall with little warning.
This is why even though Rightmove has recently revealed the hottest places to currently sell property in the UK, the situation may be extremely different in just a few months’ time. Surprisingly, London isn’t top of Rightmove’s list even though we regularly hear stories about how ruthless the market is in the capital right now. In fact, according to Rightmove the hottest area to sell a property at the moment is Cambridge – a whole hour away from London’s Liverpool Street.
According to Rightmove’s figures, a property in Cambridge takes an average of just twenty seven days to sell, meaning that most properties are now on the market for less than a month. Second, third and fourth places are all taken by areas in London (Lewisham, Sutton and Waltham Forest respectively) where the average number of days to sell a property is between twenty nine and thirty one. Discussing the figures, Andrew Bradshaw, of Bradshaws Residential in Cambridge, said: “In the current market, we are finding a number of buyers for many properties within two weeks or even a week in some cases.
“The appeal of the area does mean that stock is extremely low. We have one interested buyer looking to move from Wales to Cambridge, but they’ve had their property on the market in Wales for over a year with no sign of it selling. We have others who have already sold their property elsewhere and are renting until a property to buy comes available in the city.” Rightmove’s data also shed light on the other end of the scale of the UK property market where most properties take at least one hundred days to sell.
According to their research, properties based in Powys, Wales take the longest to sell, with each one spending an average of 113 days on the market. Gwynedd in Wales came second to last with an average of 112 days on the market. Melfyn Williams, of Williams & Goodwin The Property People in Gwynedd, said: “While the number of sales has improved and some property is selling in days or weeks, the average time is three to four months to secure a sale, and there are many properties that have now been for sale for over 12 months.
“There are fantastic opportunities ahead and over the long term we will see price growth, but currently the market here is different to reports we are hearing from other parts of the country. Unfortunately some people are sucked into the hype and insist on setting asking prices too high, resulting in them having to then reduce later.” Rightmove’s director, Miles Shipside, also commented on the results of their research, and said: “This new data shows just how different the pace of the housing market is at a very local level, and clearly displays that speed is key for both buyers and sellers.
“Buyers want to know that they can be the first to find new properties on the market, and sellers expect to have their property marketed as quickly as possible to find a suitable buyer.” Landlords across the country are therefore currently in two minds when it comes to both selling their properties in order to take advantage of the market or purchasing more buy to let properties in order to continue to receive a regular income.
The main issue is that no-one can predict what will happen to the property and private rental markets over the next twelve months, which is why it is so important for landlords to protect their businesses with products such as rent guarantee insurance. Remember, just because the market in a certain area looks good now it doesn’t mean it will remain that way in the future!