London property sales and rental market has been very shaky in 2009. There seems to be a sense of confusion surrounding what will happen next. Base rate and 3 month LIBOR rate are at an all time low, however the feelings and predictions in the city for the future are very gloomy.
While it has been evident that sales have picked up according to the latest indexes, rentals on the other hand has had mixed responses.
According to the FindAProperty.com "London private rented sector remains slower than the UK generally , and yields have declined over the past 12 months."
This is due to a large supply of property especially flats on market, stock has actually risen by 55% over the past year. Many agents have suddenly had a huge influx of flats on their books which has led to rents to suddenly plunge. To make matters worse the job market has not been buoyant, which has stopped many new graduates from not entering the capital, also redundancies are causing tenants to move to cheaper areas, which causes more voids and rentals drops for landlords.
One crucial element as to why so many properties were put up for rent is that home owners are finding it hard to sell their properties quickly. Regardless of which economic climate we are in, homeowners will always need to move for one reason or another and out of accident many homeowners are becoming landlords.
Becoming a landlord is not for everyone and can be very stressful and costly if you do not know what you are doing. Most homeowners who prefer a quick sale can benefit from a cash for homes company. This way the burdens of becoming a landlord are not felt on the homeowner, allowing them to move away freely and start a new chapter in their life while freeing up the equity in their homes.