London, United Kingdom (PressExposure) March 31, 2009 -- James Davis, founder of online property rental site, http://www.upad.co.uk, disagrees with reports that London property rental prices have decreased by 15 percent over the last year.
Davis comments: âOver recent months, the city has seen a vast increase in the number of accidental landlords, due to the fact that they have been unable to sell their property. And the rules of supply and demand apply, meaning that property rental prices have levelled off. Overall I do not believe they are falling â there remains plenty of potential for many to make long-term gains.
âWhat this new breed of landlord needs to remember is that, today, tenants in London are looking for one- and two-bedroom properties, primarily in zones two and three. It is these types of property that are still commanding healthy rents.â
Davis believes that there is minimal likelihood of a return to 100 percent mortgages in the next five years. He adds: âIt is this level of gearing that got the UK economy into recession in the first place.
âThe affordability gap for becoming a homeowner has grown yet further. And, the situation is reinforced by the fact that there are a large number of social factors preventing tenants from becoming homeowners. There is now also real uncertainty in the job market, leading to rentals having become the preferred option.â
Davis considers that the UK (primarily London) is already seeing a shift towards a more European model of renting. As recently published in the English Housing 2007-8 report, 32% of people under 30 were buying with a mortgage against 45% who were renting. In 2001, those figures were 40% who purchased with a mortgage and who 33% rented.
Davis comments: âFor Landlords wishing to increase portfolio, they should note that yields are much higher today than they were 12 months ago.
âInterest rates are at an all time low, which presents a real opportunity for residential property investors. They just need to get their proposition right, and to target the market effectively. However, it is important to remember that property is a long-term investment game â don't go into it expecting to get rich quick.â
upad (www.upad.co.uk) is a new online service that connects renters to landlords to help them find their ideal property quickly and easily. Launched in October 2008 under the banner 'reinventing renting', the company's innovative approach is aimed at filling a gap in the property rental market.
upad's website deploys bespoke state-of-the-art technology to overcome issues identified by renters such as out-of-date information and poor online experiences. In particular upad enables online searches that are interactive and intuitive to produce relevant properties.
With over 82,000 rental properties available in London, upad will continue to add to this portfolio in order to offer the largest choice of homes to rent in the capital. The service will be rolled out across other major UK cities in the next few months.
Free to renters, upad costs landlords Â£59 per listing.