Why tenants should try a little haggling
As newbie landlords swamp the market, London renters might just be able to drive a harder bargain. By
like me who house a lot of people from overseas, including foreign students. If other parts of London are seeing a similar drop in demand, this could be a very worrying time for those landlords who are dependent on the rental income, such as pensioners and new investors who have big mortgages and low yields.
Thankfully, my friend is neither. She bought the flat to live in many years ago and when she moved out of London she hung on to it to give her a pension. She isn’t relying on the rental income and she can cover the mortgage herself.
“You always get peaks and troughs,” she tells me, “I’m not worried, the market will recover.” She’s right of course, being a landlord is a roller coaster ride and when the market dips you have to hang on in there until it starts to rise.
She has dropped the rent to below what she was getting three years ago and I agreed with that. It’s better to accept a lower yield than leave a property empty and have to pay the mortgage yourself, all the bills and council tax, as landlords no longer automatically receive a reduction for empty properties. My friend is lucky she can afford to hang on to her flat with a lower rent but this might be a tough summer for other landlords needing income.
£515 a week: a very pretty one-bedroom furnished house in Doughty Mews, Bloomsbury, WC1, is available to rent through GLP (020 3858 2408).