Stirling Ackroyd Managing Director Outlines Sensible Steps to Rental and Property Sales Success.
In the midst of the current cost-of-living crisis, when asked about the status quo of the London, Greater London and Surrey rental markets and how Stirling Ackroyd’s landlords are coping, Karl Le Brasse, the company’s Managing Director, takes a measured approach.
“Landlords on fully managed contracts have always trusted us to protect their properties, physically and financially, while optimising revenue and reducing losses during times of universal tenant challenge. Our primary role is to mediate and moderate in challenging times – to work with tenants that may find themselves in financial difficulty, and with landlords that must protect the vital income that their properties generate. Keeping dialogue open between tenants and landlords is exceptionally important, and we are experts in that field.”
“If you are a Stirling Ackroyd managed tenant, we can also help you renegotiate your annual rent rise. For landlords, we are strongly advising that reliable tenants should be encouraged to remain past the standard 12-month rental renewal period, if practical to do so. Stability is key for all in the rental space.”
Market Report – Rentals & The Cost-Of-Living Crisis
Rents account for an average 30.5% of a renter’s gross monthly income (up to 34% in London). With inflation at 9.1% – a 40-year high and predicted to rise further – households are feeling a punch not just a pinch. A recent survey of over 12,000 renters nationwide conducted by Dataloft with HomeLet in May 2022 found that 75% of renters are concerned about the impact of the cost-of-living crisis on their ability to pay rent, so rental defaults are a growing concern for landlords.
Renters who have come of age in the midst of the cost-of-living crisis are the most concerned, with 85% stating the crisis will have a significant or moderate impact, with more than one in four rate the impact as ‘significant’. Interestingly, just 11% of renters feel the cost-of-living crisis will have no greater impact on them than on previous generations. (*Source: Dataloft, HomeLet, national survey of 12,000 renters May 2022)
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Successful sales in challenging times
“As regards sales and purchases,” says Karl, “we typically represent one party or the other. That said, we have found that a precision approach to balancing the interests of all parties is key to keeping a sale moving towards a successful conclusion. By understanding what everyone wants and needs, Stirling Ackroyd helps all parties get to where they need to go, no matter how challenging the environment. We proved this during the pandemic, we are proving this now, and will continue to do so.”
Sales Market Review – UK figures show that average house prices have risen by 7.2% over the course of the last year, but property sales and lettings in the UK have fallen dramatically since the start of 2022. The number of houses put up for sale has dropped by 47.3% according to the latest figures from the Office for National Statistics. Meanwhile, the number of new tenancies has fallen by 31.1%.
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