RLA : RPI : Accredited to thrive

News from the Residential Property Investor, the bi-monthly magazine for RLA members

other artilces from the June / July 2002 issue

Accredited to thrive - June / July 2002

It is becoming increasingly evident that there is an over supply of private rented accommodation. This is resulting in longer void periods and lower rent levels and hence reducing returns.

Many point to the over supply being created by the burgeoning number of buy to let investors. But in the student market current conditions are primarily due to the development of purpose built student halls by corporate investors. Interestingly, in many cases these halls charge more rent than landlords do when offering shared houses.

The Government and local authorities are increasingly looking for demonstrable standards from private landlords. Proposed licensing in selective areas is primarily aimed at landlords in receipt of housing benefit. Even the Rent Service is considering setting higher rent levels for accredited landlords.

Local authorities now have greater power over who they give grants to. They are insisting on landlords being accredited or registered in order to receive grant. Some are also insisting that landlords attend training courses on letting if they wish to qualify for assistance.

With ease of entry by investors into the market, and a greater number of landlords chasing fewer tenants, property standards and service delivery is going to become very important. Tenants are already insisting on seeing guarantees from landlords on quality of service and the standard of property being offered. Landlords will need a competitive edge in order to achieve a reasonable return.

Being accredited was once a luxury. It is now becoming the minimum standard. Those who are accredited will survive and thrive. Those who are not, will struggle in an increasingly tough competitive market.

Martin J Moylan

other artilces from the June / July 2002 issue

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