8th February 2010 – Letting agents are more optimistic about the future of the market than they were almost a year ago despite the continued lack of financing for buy-to-let mortgages, according to HomeLet.
HomeLet, the market-leading tenant referencing and specialist insurance provider to the lettings industry, conducted an independent customer satisfaction survey in December 2009 which revealed that 98% of agents expect the lettings market to stay the same, grow or grow substantially in the next 12 months. This is up by 12% on January 2009.
This figure reflects the results of recent research by ARLA which revealed that the surplus of rental property is reducing, while demand for properties is rising.
According to ARLA, this shift has generated a wave of reluctant tenants. During Q4 2009 41% of members reported that there were more tenants than properties – compared with just 24% in Q3 2009. In addition, ARLA research among landlords revealed that 54% of those asked felt that consumers were being forced to rent rather than buy.
The rise in tenants and the downturn in supply is likely to result in rental price growth which is a positive sign for the lettings industry.
Managing Director of HomeLet John Boyle said: “Demand for rental properties will remain strong over the next few years as first-time buyers continue to find it difficult to obtain mortgage finance.”
“Confidence in the buy-to-let market is also likely to be buoyed by figures released by LSL Property Services which showed gains of 7.6% in the private rental sector over the last 12 months, and a gradual increase in buy-to-let lending as the year progresses.”
The HomeLet survey of its approved agents also produced some positive results surrounding customer perceptions, with 80% of respondents saying HomeLet delivers good customer service.
Meanwhile 69% of the agents think HomeLet is innovative, which is a 27% increase and reflects the work HomeLet has been doing to reinvigorate its products and processes.
Encouragingly 91% of agents surveyed said they are still likely to be a HomeLet customer in a years’ time and 88% would recommend the tenant referencing and specialist insurance provider to another agent.
Commenting on these results, John said: “This survey has thrown up some really promising results for our business and the industry as a whole.
“It shows our customers think HomeLet is innovative, provides good customer service and communicates effectively with its customers, it also reaffirms what we think HomeLet has to offer the marketplace. We’re always striving to improve and deliver an exceptional level if service to our network of dedicated professional letting agents.”
