The weather is pretty grim at the moment. There is a lot of snow on the ground and with freezing temperatures most days, it is hardly surprising that the majority of tenants would rather stay put than go to the trouble of moving house. Of course this is a double-edged sword for landlords – on the one hand you are unlikely to lose any existing tenants, but on the other, if you have an empty property, you may have a problem filling it.
Why are rents falling?
Most landlords would rather lower their rents than have an empty property sitting on their books. Empty properties during the winter are a nightmare. You need to keep them heated in order to prevent the horror of a burst pipe and with the shorter daylight hours, an empty home is a far more attractive target for burglars and anyone else up to no good. So in order to avoid these issues, a lot of landlords are willing to take a drop in rent.
How much have rents fallen?
Figures recently compiled indicate that rents have fallen by 0.9%, although rents are still higher than they were a year ago. However, before you start panicking that your buy to let investment is in danger of depreciating, experts say that this fall is only a seasonal blip and as soon as the weather warms up, so will the rental market.
Will the rental market continue to thrive in 2013?
The indications are good that the rental market will remain strong this year. It is still difficult for buyers to obtain mortgages and since demand for rental accommodation is high, the future looks bright for property investors.
