The slump in the UK property market following the 2016 EU referendum has meant property owners and investors are struggling to sell their properties. It’s not just cautious buyers and a drop in properties on the market which is affecting the market uncertainty – house prices are also falling, with Nationwide reporting a 2.2pc fall in annual house price growth.
Brexit and recent tax changes are also making the already volatile market more difficult. Real estate agents are struggling to deliver sales for clients, as interest from both landlords/investors and homeowners drop. Waiting for the right buyer can take months or even years during a difficult time for the housing market – so what’s the solution for property owners who need to leave their home or asset vacant while waiting for a sale?
Some experts may suggest finding a long term tenant, so you can continue to make yields on the property or pay off the mortgage if necessary. However putting the house up for rent can introduce hefty tax penalties and you’ll have legal obligations to the tenants. You need to be ready to sell as soon as the right buyer comes along – and you’d have to give tenants at least 28 days notice to move out.
Alternatively, homeowners or portfolio investors should consider the short term let market, which has a range of advantages. You can keep your property on the market, looking presentable at all times, while earning up to 30% higher yields from short term let prices. You won’t have to worry about guests staying for longer than a week or two, so you’ll be able to hand over the keys to a serious buyer as soon as a sale is agreed.
Why estate agents should partner with Hostmaker
Repeatedly telling your clients that a ‘slow property market’ is to blame for your failure to sell isn’t going to cut it. You need to suggest solutions, and offering short term lets in the meantime while searching for the right buyer can keep clients happy. It makes sense – any vacant property in a prime location is the perfect candidate for a short term let property.
As a professional short term rental service, Hostmaker can take care of everything and deliver superior yields. The dedicated property management team handle all enquiries, home checks and profile management, and can even offer interior design services if the property needs a revamp to make it more appealing to guests. Data-driven pricing strategies automatically maximise rental income, and we’ll keep in constant communication to help you promote the sale of the property. For example, when viewings are booked in we can block the availability of the property, and can return the property at short notice when a sale is confirmed.
Contact us today to find out how we can help estate agents and portfolio owners increase profits during an ongoing property sale.