Rentals Market 2011 review

Once again, in 2011 the rentals sector has enjoyed an active year and the trend looks set to continue in 2012

Our highly experienced rentals team saw an increase in both Open and Local market rental activity during 2011. ‘Overall, the market has been extremely busy in 2011. We have been renting a very wide spectrum of properties on the Local Market priced between £800 to over £4,500 per month. “It is a hugely diverse market and we aim to cater for all categories of tenants though it has sometimes been difficult to offer high end local market homes due to lack of supply” explained Sue Nicolle. The Open Market was similarly diverse with properties ranging between £2,000 and £10,000 per month being offered last year and a great many of them being taken up at close to the asking price.

The Local Market had a very strong first three quarters of 2011 with a slight lull towards the end of the year. Strongest demand was in two sectors of the market; both the “3 habitable room” option which may be occupied by licence holders with a Housing Licence requirement in excess of 150 TRP units and the high TRP family home which is favoured by licence holders who have a family and/or pets to accommodate. Once a property became available on the rental market, we had a handful of suitable candidates available for viewings and in most cases one of these would result in a contract being signed. These two property types made up the majority of the market which was led by licence holder demand (rather than the local populance) - a trend which is still continuing into 2012.

As a result of this there continues to be a need for family homes and properties with a high TRP which will suit licence holders moving within, or to the island. The flexibility of allowing pets is also something that is increasingly sought after by people relocating.

As seen in previous years, one of the busiest aspects of the local market has been an increase in the number of people willing to become Landlords by investing in property. There is still a general disinclination to invest in the financial markets where returns have been pretty unimpressive. With forecasts for this year remaining uncertain we are sure it is a trend which is set to continue. The message is still quite clear – property remains a good long-term investment that typically at the moment provides a 3-5% rental yield. At the beginning of this year we are still seeing high numbers of new applicants searching for the right property. If homes are offered at realistic prices they are commonly being rented without delay which makes us confident that 2012 should prove to be a buoyant marketplace.