Why Lettings?

The lettings industry is a multi-million pound business with a market place that has seen supply and demand of rental property grow at meteoric rates over recent years.

According to the latest government figures over 17% of property stock, or one in every six homes, is now within the Private Rented Sector (PRS). Current industry forecasts show that this figure is likely to rise to over 20% or one in every five homes by 2020. When converted into numbers it is clear that the impact to the ever growing lettings business market is dramatic. Since 2000 the number of properties which are privately rented has risen by 1.8 million to 3.9 million with no sign of it slowing down!

It is no surprise therefore that in an average month the Martin & Co network secure over 1000 first lets of properties we have never let before proving that the Martin & Co brand is attractive to both new landlords and established landlords alike. The demand for rented property has never been so great with many people unable to get on the housing ladder. We have an entire generation unable to buy their own home and they now consider renting as their only option.

The lettings market is very stable and almost recession proof unlike the UK property sales market which is highly cyclical, and where the market can react adversely to short term economic triggers. The 1990's and 2000's saw a renaissance of the private rented sector, which used to dominate UK tenure and is doing so again.

Why has lettings prospered?

• Housing is a basic necessity of life - everybody needs somewhere to live, its a 'non-discretionary' item of expenditure
• The lettings market is recession proof and not subject to 'fashionable trends' or at risk from technological innovation. The market continues to grow whatever happens in the wider economy
• Landlords have rising rents and rising property values in some areas, more competitive lending and rising yields
• The pensions crisis has deteriorated and many people are looking to supplement or replace their personal pension plans or looking at an alternative to shares or conventional savings. By investing in property they benefit both from rising rental income and capital growth
• Increased pressure from people looking to live and settle in the UK
• People are getting married and buying homes later in life, living longer and divorcing more often leading to an increase in single households
• Renting is no longer 'second best' but is seen as a natural choice for professionals with busy lives and for people from other cultures with a different attitude to property ownership
• House price inflation which has exceeded wage inflation means that the affordability gap is widening for first time buyers, who have to rent
• The law protects the interests of both landlords and tenants, and provides a stable framework for investment in the sector
• Reduced lending means people have no choice but to rent