Analysis of the current property market in the UK – the current restrictions and how has the property market changed throughout the years.

Real estate is a significant feature of the UK’s economy and despite the pandemic (COVID-19) and the long-drawn Brexit negotiations, there was a considerable surge in the turnover and number of people employed in the sector between the years 2020 and 2021. The latest figures show that thousands of jobs were given to people by the sector and it also generated a turnover of 68.6 billion British pounds in 2021. Several trends in the UK real estate market mounted owing to the coronavirus pandemic. Furthermore, commercial real estate in the UK is the largest in Europe that is worth over 1.6 trillion U.S. dollars, making it the most valuable industry. Commercial property has various types with a focus on financial turnover and renting. It can include a variety of rental properties, like industrial, office, retail, hotel, and in some cases privately owned properties. Investment in commercial real estate in the UK surged in 2015 but has seen a downfall since then. By 2020, the commercial real estate market investments measured approximately 46.33 billion- the lowest value since 2012.

As a result of the Coronavirus outbreak, residential property demand has been strong around bigger cities, which has impacted house prices there. Increasing competition among home buyers has caused prices to increase due to limited availability. According to the London Property Council, the average price of homes in November 2021 reached almost 520,000 British pounds, and it was considered to be the highest in the North East.

The current market is restrictive 

Whether you are a tenant or a landlord, the property market has its restrictions and rules for both the guest and the landlord. For both owners and guests – the current property market is hindering, not helpful. It’s slowing people down, where it should be accelerating better, more flexible living. For property owners, the current market means high commission rates, unpredictable occupancy and often poor communication with no guest qualification criteria. For guests, the current market is equally restrictive with often lengthy contracts, expensive rates for mid-long term stays and poor communication post move in.

How has the market become restrictive for the tenants?

Rigid contract length
Landlords tend to offer tenants really rigid contracts in terms of duration. Many offer a minimum stay for 12 months, even 18 months at times. A lot of these landlords will add a clause for tenants to provide at least one months notice to end their tenancy, otherwise it turns into a rolling monthly contract. 18 months and even 12 month contracts are just too long for some people. If they’re moving to a new city, trying to establish where to live or relocating on a temporary housing basis for work, you often need a shorter tenancy to fit in with your plans.  

Landlords will often demand high deposits
As part of the rental agreement, tenants are required to pay a security deposit to the landlord, which will be returned once the lease ends. The security deposit is a point of concern for the tenant because in some cities the landlords demand two times higher deposits! 

Lengthy guarantor checks and contract processes
A thorough background check is a common practice by landlords before renting their residential or commercial property as they want to ensure whether you’re financially capable of meeting the rental expense. Landlords often hire a tenant screening company to gather all possible information about their tenants and present them with a comprehensive report. This also includes running a credit check on a tenant to check their financial suitability. Sometimes a rent guarantor is also required. This means if someone is unable to pay their rent, the landlord can approach the guarantor and ask them to pay the rent.

Poor communication after move-in
One of the biggest issues that contribute to bad experiences when renting an apartment or house is poor communication with landlords. Poor property management or negligence on the part of the landlord makes the rental relationship more stressful. There are often reports of tenants finding it hard to get in touch with landlords once they move in. Tenants often find it difficult to contact landlords if they want to raise an issue with their property e.g. a fault on the washing machine. There are of course many landlords who are super responsive but unfortunately this is not always the case.

How has the market become restrictive for the property owner?

High commission rates

Many landlords rely heavily on agent portals and third party providers to rent out their stock. One of the issues with this is that the traditional agents charge very high commission levels for the privilege of letting your stock. 

Unpredictable occupancy

The property market is so unpredictable. One month, your property could be in high demand, the next, no-one is enquiring - this is unfortunately the nature of the property market so landlords must be proactive in their marketing efforts to ensure they are constantly promoting their property to potential tenants.

We have got the solution. Welcome to Livinc – the heart of flexible living. 

Livinc provides solutions for the guest:

Flexible contracts available: Livinc provides tenants with flexible and ideal contracts to make their living stress and hassle-free. Under Livinc ‘s flexible contract solutions you can easily speed up your moving process in case you need a new space or set up your business, a flexible contract is an ideal option. Here at Livinc, we are agile and accommodate your plans even at a short notice. We are committed to providing our clients with easy-going and flexible solutions.

Personal guest concierge providing incredible customer service: Take advantage of our personal concierge services in the UK which are like no other. You can count on our dedicated team of experts to help you with any question or concern that you have pre, during or post stay at a Livinc property. It is our pleasure to assist you with any enquiry you may have and we are able to assist you with almost any of your needs, no matter how large or small, including providing recommendations.

Award-winning, all-inclusive, fully-furnished living spaces at Livinc: We are an award-winning team of professionals who have stunned the industry with outstanding property management services. We provide all-inclusive solutions offering top notch customer support, all utilities, fully furnished spaces and bills included. No matter for what reason you need to rent an apartment or rent a flat, we’ve got you covered with Livinc. We offer a wide range of fully furnished residential and commercial spaces, whether you are travelling, studying, working, or on holiday, you will find a suitable space that you can call home.

Livinc Provides Solutions for the Property Owner:

Unbeatable rates and exceptional value for money: As far as our fees are concerned, we strive to be transparent and clear from the very beginning. Besides providing professional property services at very competitive rates, we offer low commission levels to landlords advertising their stock through our platform and marketing services. Within our fee we offer full enquiry management and create a bespoke marketing strategy for our landlord’s listings.

Boosted Occupancy: At Livinc, we maximise your income by setting a competitive price that boosts the occupancy level. We have got the right skills, knowledge, and professionalism that help us to draw in more renters. To reach out the potential tenants, we use effective strategies and property management leads that help us in boosting the occupancy rate.

Increased cash flow: Livinc is committed to taking responsibility for managing the needs of residential properties on behalf of the property owner. We generate a handsome amount of profit for the landlords by providing them with a greater level of service. We maximise the cash flow for landlords by:

• Reducing vacancy rate

• Choosing high-quality tenants

• Monitoring the latest rental trends

• Maintaining property’s value

• Improving real estate investment portfolio

Dedicated account manager: Our account manager is fully-competent and dedicated to providing bespoke solutions to cater to landlords’ needs. They are professionally trained to manage various accounts at one time. They have ample time to focus and deal with the property owner’s account. With quality service, we are dedicated to maximising profits.

Find out more or enquire: Visit www.livinc.com or contact our friendly team  on +44 333 323 9010 or email info@livinc.com