General market conditions

The market has been, to put it mildly, quite incredible in the past 4-6 months.  We currently have no properties available from our stock of just under 300 we manage on behalf of our clients

The tactic of virtual viewings – which were deemed essential as per Government Covid guidelines – has meant that in lots of cases we have had people taking the property having only seen a walk though due to a fear of missing out.  As an agency we like to ensure that applicants have physically viewed properties to avoid issues but in some cases we have literally had people clamouring to take the properties.

It has genuinely got to the point that properties are having, on some occasions, to be physically taken off of the market within 20 minutes of them being placed as we have already secured a applicants – long may this continue!

Rent Levels

Market forces dictate rent levels and these have risen noticeably in recent months due to the demand far outpacing the supply of properties.  I recall, back when I began in the industry 20 years ago, that you could comfortably rent a 1 bedroom apartment in the City for around £550pcm – you would need around the £1000 mark for the same apartment currently.  

I have mentioned before but, due to having natural barriers of the sea to the South and the South Downs National Park to the North, Brighton and Hove and surrounding areas have limited space on which to build.  This will, more than likely, mean that it will be difficult to alter this supply and demand issue.  This does mean that property in the region will remain an attractive investment opportunity.

Cost of maintenance

One thing I recently highlighted to our clients is that material costs have risen sharply in the UK in the past 12 months – and I am guessing around the world.  For example timber has dramatically increased in price and this is being reflected in some of the costs obtained from contractors for works.  I am all too aware of this personally wanting, as I am, to do some works to my own home.

Legislation

Having spent considerable time, and clients money, in having all properties certified electrical due to the new electrical legislation there seems there is not a day that goes by without further prospective changes being mooted in parliament.  

There are suggestions that pets in properties are the next target for those in parliament and that is without the upcoming EPC rating change and The Renter’s Reform Bill, which is still very much on the table with it being a well used political ‘football’ for all parties; it was in the Conservative Governments pre election manifesto.  This is meant to include the abolition of Section 21 notices and changes to deposits amongst other things.  Details can be found here;

https://commonslibrary.parliament.uk/research-briefings/cbp-8756/

Charity

Personally this coming year is an exciting one for me.  I was elected as the Chairman of Adur District Council.  I chose Esteem as my Charity who offer support and mentoring to young people and currently I am in training (loose description!) for the Brighton 10KM.  This may have already occurred by the time this goes to print but if you wanted to support then please do get in touch as we have a golf day coming up at West Hove and next year I, apparently, will be jumping out of a perfectly good aeroplane!

www.brightonlettings.co.uk