After the shock of the election, with
the Conservatives returning to power with a majority at Westminster, all the
potential issues and possible uncertainties of a hung parliament has lifted the
cloud from the North Kent property market.
Talking to some other North Kent
agents and solicitors over the last week or so, there are signs that this has
started a new energy in the Dartford property market after a flat six months,
when tougher lending conditions, a natural correction after the strong recovery
in Dartford property prices in 2014, and political uncertainty ahead of the
General Election slowed demand.
Against the threat of Labour’s
election promises for rent controls and three year tenancies, some of our North
Kent landlords were waiting to see how these new policies would be implemented
before committing themselves to buying more property for their buy to let
portfolios. Now that uncertainty has been removed, the long term picture
is a lot more positive…
So, with all the uncertainty now
removed, what next for the Dartford property market? Well with inflation
at zero (or actually, just below zero!) and with the financial markets happy,
David Cameron is still at No.10, the Bank of England have no reason to raise
interest rates until 2016 at the earliest. With mortgage rates at their lowest
levels since 2010, landlords with large deposits will now be enticed by the
mortgage companies in the coming months with low rates.
Over the past couple of years, Dartford
landlords have benefited from a steady job market. With more jobs and better
pay, the level of rents is directly linked to tenant’s wages, there has been an
increase in the rental prices tenants are willing to pay for good quality accommodation.
Some landlords seemed to be nervous
about the Tory’s plans for the housing market in the next five years in terms
of demand for their rental properties. One plan is for Housing Association
tenants to have the right to buy their property. These kinds of tenants were
never in the private rented sector and will actually increase the supply of
properties in the housing stock in decades to come. The Government ‘Help to Buy
Scheme’ has only helped to buy a few properties since April 2013.
The biggest factor, when it comes to demand
from tenants for rental property in the future, comes from the change in mindset
and attitudes towards renting itself. Just Twenty years ago some people sneered
if you rented a property. In Dartford, as in the rest of the UK (apart from
Central London), renting continues to offer good value for money for tenants.
If you are an existing landlord in Dartford/North
Kent or thinking of becoming one, we will happily give you our opinion on the
current state of the market and the advantages/disadvantages to investing in the
North Kent property market.
