Moving? Should You Sell Or Rent Your Home?
For those who have been unsure about residential market prospects and have been loathed to place their property on the market because they feel now may not be the right time to extract ‘best value’, many are now letting their property as an alternative to selling, an option that was almost unthinkable five years ago.
The trend for letting your own home has increased, with predictions in the UK showing a change from 74% of people living in owner occupied property, decreasing close to 50% over the course of the next decade.
Predictions on rents vary, but one RICS survey suggests a 64% increase in rents achieved in the private rented sector over the course of the next 10 years. The key to achieving this rent, much as in agreeing a sale, is to present the property in the right way to the market. In the past five years the private rented sector landlords have increased their share of the UK Housing Market by 42%.
According to government figures, approximately 220,000 new homes are required each year to 2020 to keep up with demand. However, the complexities of delivering new homes, against a backdrop of uncertainty in the housing market, has resulted in a reduction in the supply of property for sale underpinning values in terms of sales achieved, and a spike in the level of rents in the private rented sector by some 13% in the past two years in the North East and Yorkshire.
As ever, personal circumstances dictate people’s position, however we would be delighted to draw on our experience of working in a local market and advise on the benefits of a sale against renting and vice versa and the options available.