John Heron Quotations

September is a busy time in the rentals market with many people starting new jobs and the new academic year starting in universities and colleges.

There are issues clearly in the property investment club area but they have not flowed through into the buy-to-let and main residential mortgage market.

When looking at the private rented sector, its important to remember that landlords are running a business in which customer demand is key. If individuals, couples or families need homes in a particular area, landlords are likely to respond to meet that demand.

Prices paid by residential property investors are still growing, but at a much slower rate than was seen during the heady days of mid-2004 when investors had to compete with owner-occupiers in a busy market with limited stock available. The recent cut in interest rates should encourage landlords to expand to their portfolios as there are still good deals to be negotiated while the owner-occupier market remains relatively slow.

A number of factors contribute to the sustained demand for rented accommodation in Yorkshire. The burgeoning student population of Englands largest county, with major universities at Sheffield, Hull, Leeds and York, among others, underpin demand for rented properties. Many students, after graduation, remain in the county and as first jobbers look for shared accommodation with their friends in the major towns. An important demographic trend that has sustained the growth of the private rented sector over the past decade or so has been the tendency for young people to leave the family home at a fairly young age to go on to further education and not return. In addition, there has been a net influx of jobs in some parts of Yorkshire which has helped create a requirement for more rented homes.

Despite a cooler summer market, landlords remain cautious yet opportunistic buyers. September is a busy time in the rentals market with many people starting new jobs and, of course, the new academic year starting in universities and colleges up and down the country. Weve continued to see a reasonable flow of property investment in many parts of the country as landlords look to purchase suitable properties in advance to meet identified demand.